Gilat Reports Third Quarter 2026 Results

(MENAFN- GlobeNewsWire - Nasdaq) Revenues of $116.2 Million; GAAP Operating Income of $7.9 Million;

Adjusted EBITDA up 13% to $17.6 Million and Non-GAAP Net Income up 21% to $14.3 Million

Comtech Acquisition on Track to Close by Year End; Expected to More than Double Defense Revenues in 2027

Updates 2026 Financial Guidance

PETAH TIKVA, Israel, Nov. 10, 2026 (GLOBE NEWSWIRE) -- Gilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT), a worldwide leader in satellite networking technology, solutions and services, today reported its results for the third quarter, ended September 30, 2026.

Third Quarter 2026 Financial Highlights

• Revenues were $116.2 million, compared with $117.7 million in Q3 2025;
• GAAP operating income increased to $7.9 million, compared with GAAP operating income of $7.5 million in Q3 2025;
• Non-GAAP operating income increased 14% to $14.6 million, compared with $12.8 million in Q3 2025;
• GAAP net income of $8.7 million, compared with GAAP net income of $8.1 million in Q3 2025, reflecting earnings of $0.11 per diluted share;
• Non-GAAP net income of $14.3 million, or $0.18 per diluted share, compared with $11.8 million, or $0.19 per diluted share, in Q3 2025;
• Adjusted EBITDA increased 13% to $17.6 million, compared with $15.6 million in Q3 2025; Adjusted EBITDA margin expanded to 15% from 13%;
• Cash, cash equivalents, and short-term deposits of $260 million as of September 30, 2026, compared with $159 million as of June 30, 2026, including net proceeds of approximately $99 million from the $100 million convertible notes issued during the quarter.
• Based on our third quarter results and current visibility, we are revising our full-year 2026 guidance. We expect revenues in the range of $455 million to $475 million and our Adjusted EBITDA to range between $61 million and $63 million¹.
  

Management Commentary

Adi Sfadia, Gilat's CEO, commented:“We concluded the quarter with Adjusted EBITDA increasing 13% year over year to $17.6 million, with the Adjusted EBITDA margin expanding to approximately 15% while our Non-GAAP Net Income jumped over 21% to $14.3 million. This comes alongside revenues of $116.2 million, compared to $117.7 million in the same quarter last year. Due to cost and pricing discipline, these results were achieved despite weaker currency conditions and bad debt write-offs resulting from Hughes Network Systems' Chapter 11 filing.”

Mr. Sfadia added,“Our revised revenue outlook reflects several factors. In IFC, we rescheduled certain terminal deliveries while working through commercial terms that are important to program profitability. Continued delays in LEO and GEO satellite development and launches, partly due to launch options scarcity, have pushed out the expected timing of certain network equipment orders. In Peru, agreements reached later than anticipated shifted some expected revenue into 2027.”

Mr. Sfadia concluded,“Changing market dynamics are intensifying competitive pressure, as vertically integrated LEO providers gain market share from traditional GEO providers. These changes in market dynamics reinforce the strategic direction we have been pursuing for several years: building our Defense segment through acquisitions and investments. This quarter's Defense results show that the strategy is working, as our Defense segment continued its strong momentum, with revenues growing 53% year over year. Our acquisition of Comtech is the next major step in this shift. The transaction is expected to close by year-end, subject to the satisfaction of applicable closing conditions. Once completed, it is expected to create a company with the scale to address accelerating demand for secure defense communications and a substantially larger U.S. presence, and to more than double defense revenues in 2027.

In addition, we continue to pursue a growing number of opportunities in next-generation ground infrastructure, IFC, and particularly in new sovereign satellite constellations, which represent an increasingly growing market for Gilat.”

Key Recent Announcements

• Gilat Secures Over $8 Million in Additional Orders from the U.S. Department of War
• Gilat Secures Over $10 Million in Additional SkyEdge IV Orders from a Leading Satellite Operator
• Gilat Awarded $28 Million Contract to Expand Connectivity in Peru
• Gilat Awarded Over $32 Million for Multi-Band DKET Systems Supporting U.S. Defense Network Resilience
• Gilat Announces $100 Million Five-Year Convertible Notes at 60% Conversion Premium
• Gilat Signs $14 Million Agreement to Expand Broadband Internet Access in Peru
• Gilat Demonstrates Breakthrough AI-Based Interference Detection and Cancellation Technology for Satellite Links
  

Conference Call Details

Gilat's management will discuss its third quarter 2026 results and business achievements and participate in a question-and-answer session:

In English:
Date:	Tuesday, November 10, 2026
Start:	09:30 AM EST / 16:30 IST

A simultaneous webcast of the conference call will be available on the Gilat website at and through this link:

Or Dial-in:	US: 1-888-407-2553
International:	+972-3-918-0609

The webcast will also be archived for a period of 30 days on the Company's website and through the link above.

In Hebrew:
Date:	Wednesday, November 11, 2026
Start:	10:00 AM IST

A simultaneous webcast of the conference call will be available on the Gilat website at and through this link:

Non-GAAP Measures

The attached unaudited summary consolidated financial statements were prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). To supplement the summary consolidated financial statements presented in accordance with GAAP, the Company presents non-GAAP measurements of gross profit, operating expenses, operating income, income before taxes on income, net income, Adjusted EBITDA, and earnings per share. The adjustments to the Company's GAAP results are made with the intent of providing both management and investors with a more complete understanding of the Company's underlying operational results, trends, and performance. Non-GAAP financial measures mainly exclude, if and when applicable, the effect of stock-based compensation, amortization of purchased intangibles, lease incentive amortization, other non-recurring expenses, other integration expenses, other operating expenses (income), net, and the income tax effect on the relevant adjustments.

Adjusted EBITDA is presented to compare the Company's performance to that of prior periods and evaluate the Company's financial and operating results on a consistent basis from period to period. The Company also believes this measure, when viewed in combination with the Company's financial results prepared in accordance with GAAP, provides useful information to investors to evaluate ongoing operating results and trends. Adjusted EBITDA, however, should not be considered as an alternative to operating income or net income for the period and may not be indicative of the historical operating results of the Company; nor is it meant to be predictive of potential future results. Adjusted EBITDA is not a measure of financial performance under GAAP and may not be comparable to other similarly titled measures for other companies. A reconciliation between the Company's net income and Adjusted EBITDA is presented in the attached summary consolidated financial statements.

Non-GAAP presentations of gross profit, operating expenses, operating income, income before taxes on income, net income, Adjusted EBITDA and earnings per share should not be considered in isolation or as a substitute for any of the consolidated statements of operations prepared in accordance with GAAP, or as an indication of Gilat's operating performance or liquidity.

About Gilat

Gilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT) is a leading global provider of satellite-based broadband communications. With over 35 years of experience, we develop and deliver deep technology solutions for satellite, ground, and new space connectivity, offering next-generation solutions and services for critical connectivity across commercial and defense applications. We believe in the right of all people to be connected and are united in our resolution to provide communication solutions to all reaches of the world.

Together with our wholly owned subsidiaries Gilat Wavestream, Gilat DataPath, and Gilat Stellar Blu, we offer integrated, high-value solutions supporting multi-orbit constellations, Very High Throughput Satellites (VHTS), and Software-Defined Satellites (SDS) via our Commercial and Defense Divisions. Our comprehensive portfolio is comprised of a software-defined platform and modems, high-performance satellite terminals, advanced Satellite On-the-Move (SOTM) antennas and Electronically Steered Antennas (ESAs), highly efficient, high-power Solid State Power Amplifiers (SSPAs) and Block Upconverters (BUCs) and includes integrated ground systems for commercial and defense markets, field services, network management software, and cybersecurity services.

Gilat's products and tailored solutions support multiple applications including government and defense, IFC and mobility, cellular backhaul, enterprise, aerospace and critical infrastructure clients all while meeting the most stringent service level requirements. For more information, please visit:

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include our full-year 2026 financial guidance, the expected timing of orders, deliveries and revenue recognition, our expectations regarding defense demand and new satellite constellations, and the expected timing, completion and benefits of the proposed Comtech acquisition. Forward-looking statements are statements that are not historical facts and can generally be identified by the use of forward-looking terminology such as“estimate,”“project,”“intend,”“expect,”“believe,”“anticipate,”“plan,”“may,”“will,”“seek,”“could,”“should,” or similar expressions. These forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual results, performance or achievements of Gilat to differ materially from those expressed in, or implied by, such statements. These risks and uncertainties include, among others, changes in general economic, market and business conditions; delays in or failure to complete the proposed Comtech acquisition, including failure to satisfy applicable closing conditions; difficulties integrating acquired businesses or realizing anticipated benefits; changes in customer-program schedules, commercial negotiations and the timing of satellite development and launches; customer insolvency, credit losses and collection risks; foreign currency fluctuations; changes in government and defense procurement, budgets and demand; failure to maintain market acceptance of Gilat's products; failure to timely develop and introduce new technologies, products and applications; rapid changes in the markets in which Gilat operates; increased competition, loss of market share or pressure on prices; loss of key OEM partners; inability to attract and retain qualified personnel; inability to protect proprietary technology; and risks associated with Gilat's international operations and its location in Israel, including those arising from regional military conflicts and geopolitical instability. For additional information regarding these and other risks and uncertainties, please refer to Gilat's filings with the U.S. Securities and Exchange Commission.

Forward-looking statements speak only as of the date of this press release. Gilat undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Contact:
Gilat Satellite Networks
Hagay Katz, Chief Products and Marketing Officer
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Alliance Advisors

...
Phone: +1 212 838 3777

_______________________
¹ We do not provide forward-looking guidance on a GAAP basis because we are unable to reasonably provide forward-looking guidance for certain financial data, such as earnout-based expenses related to recent acquisitions. As a result, we are not able to provide a reconciliation of GAAP to non-GAAP financial measures for forward looking data without unreasonable effort.

GILAT SATELLITE NETWORKS LTD.
CONSOLIDATED STATEMENTS OF INCOME
U.S. dollars in thousands (except share and per share data)
		Nine months ended		Three months ended
		September 30,		September 30,
			2026				2025				2026				2025
		Unaudited		Unaudited
Revenues		$	349,363			$	314,698			$	116,226			$	117,691
Cost of revenues			233,655				219,642				75,424				82,960
Gross profit			115,708				95,056				40,802				34,731
Research and development expenses, net		33,654				35,424				9,936				11,494
Selling and marketing expenses			29,285				25,542				10,074				9,075
General and administrative expenses			32,256				19,849				9,638				6,822
Other operating expenses (income), net		3,528				3,758				3,247				(206	)
Total operating expenses			98,723				84,573				32,895				27,185
Operating income			16,985				10,483				7,907				7,546
Financial income (expenses), net			5,353				(3,178	)			1,891				(992	)
Income before taxes on income			22,338				7,305				9,798				6,554
Taxes on income			(290	)			4,627				(1,131	)			1,544
Net income		$	22,048			$	11,932			$	8,667			$	8,098
Basic earnings per share		$	0.29			$	0.21			$	0.11			$	0.14
Diluted earnings per share		$	0.28			$	0.21			$	0.11			$	0.14
Weighted average number of shares used in
computing earnings per share
Basic			76,197,213				57,546,606				77,058,663				58,477,579
Diluted			78,416,346				58,077,156				78,832,405				59,852,657

GILAT SATELLITE NETWORKS LTD.
RECONCILIATION BETWEEN GAAP AND NON-GAAP CONSOLIDATED STATEMENTS OF INCOME
FOR COMPARATIVE PURPOSES
U.S. dollars in thousands (except share and per share data)
	Three months ended		Three months ended
	September 30, 2026		September 30, 2025
	GAAP		Adjustments (*)		Non-GAAP		GAAP		Adjustments (*)		Non-GAAP
	Unaudited		Unaudited
Gross profit	$	40,802			806			$	41,608		$	34,731			2,774			$	37,505
Operating expenses		32,895			(5,888	)			27,007			27,185			(2,526	)			24,659
Operating income		7,907			6,694				14,601			7,546			5,300				12,846
Income before taxes on income		9,798			6,694				16,492			6,554			5,300				11,854
Net income	$	8,667			5,624			$	14,291		$	8,098			3,685			$	11,783
Basic earnings per share	$	0.11		$	0.08			$	0.19		$	0.14		$	0.06			$	0.20
Diluted earnings per share	$	0.11		$	0.07			$	0.18		$	0.14		$	0.05			$	0.19
Weighted average number of shares used in
computing earnings per share
Basic		77,058,663					77,058,663			58,477,579					58,477,579
Diluted		78,832,405					81,675,463			59,852,657					60,839,694
(*) Adjustments reflect the effect of stock-based compensation as per ASC 718, amortization of purchased intangibles, other operating expenses (income), net,
other integration expenses and income tax effect on such adjustments which is calculated using the relevant effective tax rate.
	Three months ended		Three months ended
		September 30, 2026				September 30, 2025
			Unaudited						Unaudited
GAAP net income			$	8,667							$	8,098
Gross profit
Stock-based compensation expenses				127								215
Amortization of purchased intangibles				647								2,559
Other integration expenses				32								-
				806								2,774
Operating expenses
Stock-based compensation expenses				1,485								1,436
Amortization of purchased intangibles				1,112								1,120
Other operating expenses (income), net and integration expenses			3,291								(30	)
				5,888								2,526
Taxes on income				(1,070	)							(1,615	)
Non-GAAP net income			$	14,291							$	11,783

GILAT SATELLITE NETWORKS LTD.
RECONCILIATION BETWEEN GAAP AND NON-GAAP CONSOLIDATED STATEMENTS OF INCOME
FOR COMPARATIVE PURPOSES
U.S. dollars in thousands (except share and per share data)
		Nine months ended		Nine months ended
		September 30, 2026		September 30, 2025
		GAAP		Adjustments (*)		Non-GAAP		GAAP		Adjustments (*)		Non-GAAP
		Unaudited		Unaudited
Gross profit		$	115,708			4,112			$	119,820		$	95,056			6,142			$	101,198
Operating expenses			98,723			(18,574	)			80,149			84,573			(10,658	)			73,915
Operating income			16,985			22,686				39,671			10,483			16,800				27,283
Income before taxes on income			22,338			22,686				45,024			7,305			16,800				24,105
Net income		$	22,048			21,468			$	43,516		$	11,932			13,639			$	25,571
Basic earnings per share		$	0.29		$	0.28			$	0.57		$	0.21		$	0.23			$	0.44
Diluted earnings per share		$	0.28		$	0.27			$	0.55		$	0.21		$	0.22			$	0.43
Weighted average number of shares used in
computing earnings per share
Basic			76,197,213					76,197,213			57,546,606					57,546,606
Diluted			78,416,346					79,621,573			58,077,156					58,961,990
(*) Adjustments reflect the effect of stock-based compensation as per ASC 718, amortization of purchased intangibles, other operating expenses, net,
other integration expenses and income tax effect on such adjustments which is calculated using the relevant effective tax rate.
		Nine months ended		Nine months ended
		September 30, 2026		September 30, 2025
				Unaudited						Unaudited
GAAP net income				$	22,048							$	11,932
Gross profit
Stock-based compensation expenses					525								617
Amortization of purchased intangibles					3,518								5,461
Other integration expenses					69								64
					4,112								6,142
Operating expenses
Stock-based compensation expenses					4,489								3,420
Stock-based compensation related to business combination				7,000								(313	)
Amortization of purchased intangibles					3,308								3,273
Other operating expenses, net and integration expenses					3,777								4,278
					18,574								10,658
Taxes on income					(1,218	)							(3,161	)
Non-GAAP net income				$	43,516							$	25,571

GILAT SATELLITE NETWORKS LTD.
SUPPLEMENTAL INFORMATION
U.S. dollars in thousands
ADJUSTED EBITDA:
		Nine months ended		Three months ended
		September 30,		September 30,
			2026				2025				2026				2025
		Unaudited		Unaudited
GAAP net income		$	22,048			$	11,932			$	8,667			$	8,098
Adjustments:
Financial expenses (income), net			(5,353	)			3,178				(1,891	)			992
Taxes on income			290				(4,627	)			1,131				(1,544	)
Stock-based compensation expenses			5,014				4,037				1,612				1,651
Stock-based compensation related to business combination		7,000				(313	)			-				-
Depreciation and amortization (*)			15,256				16,458				4,726				6,412
Other operating expenses (income), net and integration expenses			3,846				4,342				3,323				(30	)
Adjusted EBITDA		$	48,101			$	35,007			$	17,568			$	15,579
(*) Including amortization of lease incentive
SEGMENT REVENUES:
		Nine months ended		Three months ended
		September 30,		September 30,
			2026				2025				2026				2025
		Unaudited		Unaudited
Commercial		$	225,519			$	206,234			$	69,748			$	72,957
Defense			84,794				67,094				36,904				24,090
Peru			39,050				41,370				9,574				20,644
Total revenues		$	349,363			$	314,698			$	116,226			$	117,691

GILAT SATELLITE NETWORKS LTD.
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
		September 30,		December 31,
			2026				2025
		Unaudited		Audited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	260,299			$	168,907
Short-term deposits			-				16,433
Restricted cash			48				88
Trade receivables, net			115,269				85,929
Contract assets			30,225				36,987
Inventories			62,656				45,430
Other current assets			32,485				37,406
Total current assets			500,982				391,180
LONG-TERM ASSETS:
Long-term contract assets			7,193				7,890
Severance pay funds			7,076				6,941
Deferred taxes			17,133				15,558
Operating lease right-of-use assets			6,297				5,922
Other long-term assets			32,278				19,871
Total long-term assets			69,977				56,182
PROPERTY AND EQUIPMENT, NET			73,114				75,172
INTANGIBLE ASSETS, NET			47,482				53,986
GOODWILL			169,534				169,534
TOTAL ASSETS		$	861,089			$	746,054
GILAT SATELLITE NETWORKS LTD.
CONSOLIDATED BALANCE SHEETS (Cont.)
U.S. dollars in thousands
		September 30,		December 31,
			2026				2025
		Unaudited		Audited
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term loan		$	2,000			$	2,000
Trade payables			40,500				31,614
Accrued expenses			66,599				58,878
Advances from customers and deferred revenues			52,999				78,499
Operating lease liabilities			2,920				2,957
Other current liabilities			29,655				41,529
Total current liabilities			194,673				215,477
LONG-TERM LIABILITIES:
Accrued severance pay			7,799				7,508
Operating lease liabilities			3,664				3,102
Convertible note			96,225				-
Other long-term liabilities			3,874				19,689
Total long-term liabilities			111,562				30,299
SHAREHOLDERS' EQUITY:
Share capital - ordinary shares of NIS 0.2 par value			3,975				3,765
Additional paid-in capital			1,149,782				1,115,030
Accumulated other comprehensive loss			(6,202	)			(3,768	)
Accumulated deficit			(592,701	)			(614,749	)
Total shareholders' equity			554,854				500,278
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$	861,089			$	746,054

GILAT SATELLITE NETWORKS LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
		Nine months ended		Three months ended
		September 30,		September 30,
			2026				2025				2026				2025
		Unaudited		Unaudited
Cash flows from operating activities:
Net income		$	22,048			$	11,932			$	8,667			$	8,098
Adjustments required to reconcile net income
to net cash provided by (used in) operating activities:
Depreciation and amortization			15,106				16,302				4,683				6,360
Stock-based compensation expenses			12,014				3,724				1,612				1,651
Accrued severance pay, net			157				(155	)			174				(79	)
Deferred taxes, net			(1,575	)			(6,325	)			790				(2,092	)
Increase in trade receivables, net			(29,998	)			(10,613	)			(7,796	)			(1,379	)
Decrease (increase) in contract assets			7,458				10,453				2,567				(6,099	)
Decrease (increase) in other assets and other adjustments (including short-term, long-term and effect of exchange rate changes on cash, cash equivalents and restricted cash)			(4,288	)			12,070				(5,773	)			316
Decrease (increase) in inventories			(17,434	)			(3,358	)			2,778				(3,454	)
Increase (decrease) in trade payables			8,364				(19,375	)			(5,496	)			(4,685	)
Increase (decrease) in accrued expenses			7,330				1,027				(6,823	)			5,614
Increase (decrease) in advances from customers and deferred revenues			(25,574	)			8,625				2,718				24,051
Increase (decrease) in other liabilities			(3,432	)			2,668				6,160				142
Net cash provided by (used in) operating activities			(9,824	)			26,975				4,261				28,444
Cash flows from investing activities:
Purchase of property, equipment and intangible assets			(5,850	)			(8,260	)			(1,675	)			(4,004	)
Investment in other asset			(1,000	)			(3,500	)			(1,000	)			-
Investment in short-term deposits			(14,350	)			-				-				-
Proceeds from short-term deposits			30,783				-				14,350				-
Proceeds from sale of a financial instrument			1,316				-				1,316				-
Acquisitions of subsidiary, net of cash acquired			(10,000	)			(104,943	)			-				-
Net cash provided by (used in) investing activities			899				(116,703	)			12,991				(4,004	)
Cash flows from financing activities:
Proceeds from long-term loan, net of associated costs			-				58,970				-				-
Repayment of long-term loan			-				(1,500	)			-				(750	)
Proceeds from issuance of Ordinary shares in a private placement, net			-				65,325				-				65,325
Issuance of convertible note, net of issuance costs			99,002				-				99,002
Exercise of stock options			46				166				-				166
Net cash provided by financing activities			99,048				122,961				99,002				64,741
Effect of exchange rate changes on cash, cash equivalents and restricted cash			1,229				1,414				(776	)			298
Increase in cash, cash equivalents and restricted cash			91,352				34,647				115,478				89,479
Cash, cash equivalents and restricted cash at the beginning of the period			168,995				120,249				144,869				65,417
Cash, cash equivalents and restricted cash at the end of the period		$	260,347			$	154,896			$	260,347			$	154,896

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