Gilat Satellite Networks Ltd.: Gilat Reports First Quarter 2025 Results

Revenues Increased 21% Year-over-Year with Adjusted EBITDA of $7.6 Million

Reiterates Guidance for 2025

PETAH TIKVA, Israel, May 19, 2025 (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 first quarter, ended March 31, 2025.

First Quarter 2025 Financial Highlights

• Revenues of $92million, up 21% compared with $76.1million in Q12024;
• GAAP operating loss of $2.7 million,compared with GAAP operating income of $5.4 million in Q1 2024 mainly due to a loss of about $3.6 million from Gilat Stellar Blu's ramp up process, amortization of purchased intangibles derived from the Stellar Blu acquisition, and other operating expenses, related to earnout liabilities and one-time acquisition-related costs;
• Non-GAAP operating income of $5.2million, compared with $6.6million in Q1 2024;
• GAAP net loss of $6.0 million, or $0.11 per share, compared with GAAP net income of $5.0 million, or $0.09 per diluted share, in Q1 2024;
• Non-GAAP net income of $1.8 million, or $0.03 per diluted share, compared with $6.0 million, or $0.11 per diluted share, in Q1 2024;
• Adjusted EBITDA of $7.6 million, compared with $9.3 million in Q1 2024, which includes a loss of about $3.6 million from Gilat Stellar Blu's ramp up process. Adjusted EBITDA, excluding such loss, was $11.2 million.

Forward-Looking Expectations

The Company today reiterated its guidance for 2025.

Expectations are for revenue between $415 and $455 million, representing year-over-year growth of 42% at the midpoint. Adjusted EBITDA is expected to be between $47 and $53 million, representing year-over-year growth of 18% at the midpoint.

Management Commentary

Adi Sfadia, Gilat's CEO, commented: "Gilat delivered solid Q1 2025 results, demonstrating strong execution across the company and positive impact from our new organizational structure. Gilat Defense is experiencing significant momentum, fueled by growing demand for its broad portfolio of products and services and is becoming an increasingly important contributor to our growth. This growth is supported by macro-geopolitical factors that are driving increased investment in secure, mission-critical communications worldwide."

Mr. Sfadia added, "Regarding Gilat Commercial, our IFC business continues to expand as we deliver on customer commitments and grow our market base. Gilat Stellar Blu's ramp up is on track, and its Sidewinder ESA is now flying on over 150 aircraft, with strong feedback and additional orders expected very soon. We are collaborating with our partners to expand into new applications such as ISR and VVIP aviation. We're also in the process of developing OEM installation and broader modem compatibility, further establishing Sidewinder as the go-to multi-orbit IFC solution."

Mr. Sfadia concluded, "Based on our strong beginning to 2025 and as Stellar Blu's ramp up finalizes, we are on track to deliver a record year in both revenues and non-GAAP profitability as we capture the expanding opportunities in mission-critical communications and next-generation satellite solutions."

Key Recent Announcements

• Gilat Receives Over $15 Million in Orders from Leading Satellite Operators
• Gilat Receives a Multimillion Order from a Global Defense Organization
• Gilat Receives over $11 Million Defense Contract from a Leading UAV Company
• Gilat Awarded Up to $23 Million Multi-Year Contract to Service Satellite Transportable Terminal Units for US DoD Customers
• Gilat Receives $6 Million Defense Contract to Provide Military Communications solutions in Asia-Pacific
• Gilat Receives $4 Million in Orders for Advanced Portable Satellite Terminals from Global Defense Customers
• Gilat Awarded Over $5 Million to Support Critical Connectivity for Defense Forces
  
  

Conference Call Details

Gilat's management will discuss its first quarter 2025 results and business achievements and participate in a question-and-answer session:

Date:	Monday, May 19, 2025
Start:	09:00 AM EST / 16:00 IST
Dial-in:	US: 1-888-407-2553
	International: [phone]

A simultaneous webcast of the conference call will be available on the Gilat website at http://www.gilat.com and through this link: https://veidan.activetrail.biz/gilatq1-2025.

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

Non-GAAP Measures

The attached summary unaudited financial statements were prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). To supplement the consolidated financial statements presented in accordance with GAAP, the Company presents non-GAAP presentations 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 expenses, amortization of purchased intangibles, lease incentive amortization, other non-recurring expenses, other integration expenses, other operating expenses (income), net, and 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 historic 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. Reconciliation between the Company's net income and adjusted EBITDA is presented in the attached summary 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 create and deliver deep technology solutions for satellite, ground and new space connectivity and provide comprehensive, secure end-to-end solutions and services for mission-critical operations, powered by our innovative technology. 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.

Our portfolio includes a diverse offering to deliver high value solutions for multiple orbit constellations with very high throughput satellites (VHTS) and software defined satellites (SDS). Our offering is comprised of a cloud-based platform and high-performance satellite terminals; high performance Satellite On-the-Move (SOTM) antennas; highly efficient, high-power Solid State Power Amplifiers (SSPA) and Block Upconverters (BUC) and includes integrated ground systems for commercial and defense, field services, network management software, and cybersecurity services.

Gilat's comprehensive offering supports multiple applications with a full portfolio of products and tailored solutions to address key applications including broadband access, mobility, cellular backhaul, enterprise, defense, aerospace, broadcast, government, and critical infrastructure clients all while meeting the most stringent service level requirements. For more information, please visit: www.gilat.com

Certain statements made herein that are not historical are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. The words "estimate", "project", "intend", "expect", "believe" and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties. Many factors could cause the actual results, performance or achievements of Gilat to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in general economic and business conditions, inability to maintain market acceptance to Gilat's products, inability to timely develop and introduce new technologies, products and applications, rapid changes in the market for Gilat's products, loss of market share and pressure on prices resulting from competition, introduction of competing products by other companies, inability to manage growth and expansion, loss of key OEM partners, inability to attract and retain qualified personnel, inability to protect the Company's proprietary technology and risks associated with Gilat's international operations and its location in Israel, including those related to the hostilities between Israel and Hamas. For additional information regarding these and other risks and uncertainties associated with Gilat's business, reference is made to Gilat's reports filed from time to time with the Securities and Exchange Commission. We undertake no obligation to update or revise any forward-looking statements for any reason.

Contact:

Gilat Satellite Networks
Hagay Katz, Chief Products and Marketing Officer
[e-mail]

Alliance Advisors

[e-mail]
Phone: [phone]

GILAT SATELLITE NETWORKS LTD.
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
U.S. dollars in thousands (except share and per share data)
		Three months ended March 31,
			2025				2024
		Unaudited
Revenues		$	92,037			$	76,078
Cost of revenues			63,639				48,024
Gross profit			28,398				28,054
Research and development expenses, net			11,621				9,319
Selling and marketing expenses			8,202				7,077
General and administrative expenses			6,784				8,077
Other operating expenses (income), net			4,538				(1,810	)
Total operating expenses			31,145				22,663
Operating income (loss)			(2,747	)			5,391
Financial income (expenses), net			(936	)			513
Income (loss) before taxes on income			(3,683	)			5,904
Taxes on income			(2,313	)			(940	)
Net income (loss)		$	(5,996	)		$	4,964
Earnings (losses) per share (basic and diluted)		$	(0.11	)		$	0.09
Weighted average number of shares used in
computing earnings (losses) per share (Basic and Diluted)			57,037,671				57,016,585

GILAT SATELLITE NETWORKS LTD.
RECONCILIATION BETWEEN GAAP AND NON-GAAP CONSOLIDATED STATEMENTS OF INCOME (LOSS)
FOR COMPARATIVE PURPOSES
U.S. dollars in thousands (except share and per share data)
		Three months ended									Three months ended
		March 31, 2025									March 31, 2024
		GAAP			Adjustments (*)			Non-GAAP			GAAP			Adjustments (*)			Non-GAAP
		Unaudited									Unaudited
Gross profit		$ 28,398			810			$ 29,208			$ 28,054			726			$ 28,780
Operating expenses		31,145			(7,090)			24,055			22,663			(499)			22,164
Operating income (loss)		(2,747)			7,900			5,153			5,391			1,225			6,616
Income (loss) before taxes on income		(3,683)			7,900			4,217			5,904			1,225			7,129
Net income (loss)		$	(5,996)		7,823			$	1,827		$	4,964		1,050			$	6,014
Earnings (losses) per share (basic and diluted)		$	(0.11)		$ 0.14			$	0.03		$	0.09		$	0.02		$	0.11
Weighted average number of shares used in computing earnings (losses) per share
	Basic	57,037,671						57,037,671			57,016,585						57,016,585
	Diluted	57,037,671						58,005,232			57,016,585						57,108,734
(*)	Adjustments reflect the effect of stock-based compensation expenses as per ASC 718, amortization of purchased intangibles, other operating income (expenses), 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
					March 31, 2025									March 31, 2024
					Unaudited									Unaudited
GAAP net income (loss)					$	(5,996)								$	4,964
Gross profit
Stock-based compensation expenses					173									150
Amortization of purchased intangibles					600									507
Other integration expenses					37									69
					810									726
Operating expenses
Stock-based compensation expenses					901									717
Stock-based compensation expenses related to business combination					607									1,324
Amortization of purchased intangibles					884									257
Other operating expenses (income), net *)					4,538									(1,810)
Other integration expenses					160									11
					7,090									499
Taxes on income					(77)									(175)
Non-GAAP net income					$	1,827								$	6,014
*)	Including M&A expenses related to business combinations in the amounts of $2,205 and $318 for the three months ended March 31, 2025 and 2024, respectively

GILAT SATELLITE NETWORKS LTD.
SUPPLEMENTAL INFORMATION
U.S. dollars in thousands
ADJUSTED EBITDA:
	Three months ended
	March 31,
	2025				2024
	Unaudited
GAAP net income (loss)	$	(5,996	)		$	4,964
Adjustments:
Financial expenses (income), net		936				(513	)
Taxes on income		2,313				940
Stock-based compensation expenses		1,074				867
Stock-based compensation expenses related to business combination		607				1,324
Depreciation and amortization (*)		3,962				3,481
Other operating expenses (income), net		4,538				(1,810	)
Other integration expenses		197				80
Adjusted EBITDA	$	7,631			$	9,333
(*) Including amortization of lease incentive
SEGMENT REVENUES:
	Three months ended
	March 31,
		2025				2024
	Unaudited
Commercial	$	64,220			$	41,193
Defense		23,011				17,230
Peru		4,806				17,655
Total revenues	$	92,037			$	76,078

GILAT SATELLITE NETWORKS LTD.
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
	March 31,				December 31,
		2025				2024
	Unaudited				Audited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	63,783			$	119,384
Restricted cash		470				853
Trade receivables, net		49,164				49,600
Contract assets		33,394				24,941
Inventories		59,431				38,890
Other current assets		34,395				21,963
Total current assets		240,637				255,631
LONG-TERM ASSETS:
Restricted cash		13				12
Long-term contract assets		7,450				8,146
Severance pay funds		5,847				5,966
Deferred taxes		9,912				11,896
Operating lease right-of-use assets		6,400				6,556
Other long-term assets		8,539				5,288
Total long-term assets		38,161				37,864
PROPERTY AND EQUIPMENT, NET		69,878				70,834
INTANGIBLE ASSETS, NET		64,928				12,925
GOODWILL		169,444				52,494
TOTAL ASSETS	$	583,048			$	429,748
GILAT SATELLITE NETWORKS LTD.
CONSOLIDATED BALANCE SHEETS (Cont.)
U.S. dollars in thousands
	March 31,				December 31,
		2025				2024
	Unaudited				Audited
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term loan	$	3,000			$	-
Trade payables		20,364				17,107
Accrued expenses		48,245				45,368
Advances from customers and deferred revenues		71,701				18,587
Operating lease liabilities		2,865				2,557
Other current liabilities		24,617				17,817
Total current liabilities		170,792				101,436
LONG-TERM LIABILITIES:
Long-term loans		57,469				2,000
Accrued severance pay		6,536				6,677
Long-term advances from customers and deferred revenues		254				580
Operating lease liabilities		3,608				4,014
Other long-term liabilities		44,875				10,606
Total long-term liabilities		112,742				23,877
SHAREHOLDERS' EQUITY:
Share capital - ordinary shares of NIS 0.2 par value		2,736				2,733
Additional paid-in capital		944,657				943,294
Accumulated other comprehensive loss		(6,411	)			(6,120	)
Accumulated deficit		(641,468	)			(635,472	)
Total shareholders' equity		299,514				304,435
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	583,048			$	429,748

GILAT SATELLITE NETWORKS LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
	Three months ended
	March 31,
	2025				2024
	Unaudited
Cash flows from operating activities:
Net income (loss)	$	(5,996	)		$	4,964
Adjustments required to reconcile net income (loss)
to net cash provided by (used in) operating activities:
Depreciation and amortization		3,905				3,425
Stock-based compensation expenses		1,681				2,191
Accrued severance pay, net		(22	)			(55	)
Deferred taxes, net		1,984				451
Decrease (increase) in trade receivables, net		4,528				(8,797	)
Decrease (increase) in contract assets		(7,798	)			6,248
Decrease in other assets and other adjustments (including short-term, long-term
and effect of exchange rate changes on cash, cash equivalents and restricted cash)		18,390				3,507
Increase in inventories		(11,456	)			(3,193	)
Decrease in trade payables		(7,828	)			(666	)
Decrease in accrued expenses		(6,358	)			(1,240	)
Decrease in advances from customers and deferred revenues		(1,096	)			(2,754	)
Increase in other liabilities		3,454				139
Net cash provided by (used in) operating activities		(6,612	)			4,220
Cash flows from investing activities:
Purchase of property and equipment		(1,490	)			(793	)
Investment in other asset		(2,500	)			-
Acquisitions of subsidiary, net of cash acquired		(104,943	)			-
Net cash used in investing activities		(108,933	)			(793	)
Cash flows from financing activities:
Repayment of short-term debt, net		-				(2,744	)
Proceeds from long-term loan, net of associated costs		58,970				-
Net cash provided by (used in) financing activities		58,970				(2,744	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		592				(268	)
Increase (decrease) in cash, cash equivalents and restricted cash		(55,983	)			415
Cash, cash equivalents and restricted cash at the beginning of the period		120,249				104,751
Cash, cash equivalents and restricted cash at the end of the period	$	64,266			$	105,166