Gilat Satellite Networks Ltd.: Gilat Reports Second Quarter 2026 Results

Revenue Grew 17% to $122.7 Million; GAAP Operating Income was $4.7 Million; Adjusted EBITDA Increased 31% to $15.4 Million

Comtech Acquisition on Track for Expected Year-End Closing

Reiterates 2026 Financial Guidance

PETAH TIKVA, Israel, Aug. 05, 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 second quarter, ended June 30, 2026.

Second Quarter 2026 Financial Highlights

• Revenues increased to $122.7 million, compared with $105 million in Q2 2025;
• GAAP operating income of $4.7 million, compared with GAAP operating income of $5.7 million in Q2 2025;
• Non-GAAP operating income increased 35% to $12.6 million, compared with $9.3 million in Q2 2025;
• GAAP net income of $8.1 million, or $0.10 per diluted share, compared with GAAP net income of $9.8 million, or $0.17 per diluted share, in Q2 2025;
• Non-GAAP net income of $15.6 million, or $0.20 per diluted share, compared with $12.0 million, or $0.21 per diluted share, in Q2 2025;
• Adjusted EBITDA increased 31% to $15.4 million, significantly improving margins compared with $11.8 million in Q2 2025

Forward-Looking Expectations¹

Management reiterates guidance for 2026 for revenue between $500 to $520 million, representing a revenue growth rate of approximately 13% at the midpoint. Adjusted EBITDA for 2026 is expected to be between $61 to $66 million, representing a growth rate of approximately 19% at the midpoint.

Management Commentary

Adi Sfadia, Gilat's CEO, commented: "Gilat delivered another strong quarter, with revenues increasing 17% and Adjusted EBITDA increasing 31%. The combination of growth and margin expansion reflects solid execution across our Defense, Commercial, and Peru segments and the continued strength of our underlying business."

Mr. Sfadia added, "During the quarter and in recent weeks, momentum remained broad-based. Gilat Defense continued to expand its activity in both the United States and in Europe, reflecting increasing demand for advanced communications solutions that support mobility, rapid deployment, and operational continuity in complex operating environments. We introduced the Viper Ka ESA terminal, broadening our support for unmanned and autonomous missions, and we also advanced work on certifications that will position us to better support next-generation defense communications architectures.

"The announced Comtech acquisition is progressing well and is the next major step in Gilat's transformation into a scaled defense, space, and mission-critical communications technology company. The acquisition is expected to create a company with more than $700 million in pro forma annual revenues, more than double Gilat Defense revenues, expand our U.S. engineering and manufacturing footprint, and improve access to larger U.S. and allied defense and space programs.The acquisition is anticipated to close toward year-end, subject to regulatory approvals and customary closing conditions."

Mr. Sfadia concluded, "Our first-half performance, recent awards, backlog, and strong pipeline support our full-year 2026 outlook and positions us well to fully capitalize on the Comtech acquisition."

Key Recent Announcements

• Gilat to Acquire Comtech's Satellite & Space Communications Segment Creating a Leading Provider of Advanced Defense and Satellite Communications Solutions
• Leading Global Satellite Operator Awards Gilat Over $20 Million in SkyEdge Orders
• Gilat Receives $11 Million in U.S. Department of War Orders, Reinforcing Role in Mission-Critical Defense Connectivity
• Gilat Receives $43 Million of Additional Sidewinder ESA Orders from Leading In-flight Connectivity Service Provider
• Gilat Receives Multi-Million Dollar Order for Customized SATCOM Terminals Supporting European Defense Communications
• Gilat Presents Expanded Portfolio for Tactical Unmanned Platforms at Eurosatory 2026
• Boeing and Gilat Achieve Key In-Cabin Offerability Milestone for Sidewinder Line-fit Multi-Orbit Solution
  

Conference Call Details

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

In English:

Date:	Wednesday, August 5, 2026
Start:	09:30 AM EDT / 16:30 IST

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

Or Dial-in:

US:	1-888-407-2553
International:	[phone]

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:	Thursday, August 6, 2026
Start:	10:00 AM IST

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

https://gk-biz.zoom.us/webinar/register/WN_Ij3ddmS9RqWUXweNlBeJsw

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: https://www.gilat.com

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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; 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. 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
[e-mail]

Alliance Advisors

[e-mail]
Phone: [phone]

__________________________________
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)
	Six months ended June 30,
								Three months ended June 30,
	2026			2025			2026			2025
	Unaudited						Unaudited
Revenues	-	233,137		-	197,007		-	122,663		-	104,970
Cost of revenues	158,231			136,682			85,406			73,043
Gross profit	74,906			60,325			37,257			31,927
Research and development expenses, net	23,718			23,930			11,601			12,309
Selling and marketing expenses	19,211			16,467			9,504			8,265
General and administrative expenses	22,618			13,027			12,220			6,243
Other operating expenses (income), net	281			3,964			(760)			(574)
Total operating expenses	65,828			57,388			32,565			26,243
Operating income	9,078			2,937			4,692			5,684
Financial income (expenses), net	3,462			(2,186)			2,167			(1,250)
Income before taxes on income	12,540			751			6,859			4,434
Taxes on income	841			3,083			1,288			5,396
Net income	-	13,381		-	3,834		-	8,147		-	9,830
Basic earnings per share	-	0.18		-	0.07		-	0.11		-	0.17
Diluted earnings per share	-	0.17		-	0.07		-	0.10		-	0.17
Weighted average number of shares used in
computing earnings per share
Basic	75,766,488			57,081,120			77,007,203			57,124,568
Diluted	78,341,256			57,189,406			79,427,208			57,341,141

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
	June 30, 2026										June 30, 2025
	GAAP			Adjustments Adjustments reflect the effect of stock-based compensation as per ASC 718, amortization of purchased intangibles, other operating 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
				June 30, 2026										June 30, 2025
				Unaudited										Unaudited
GAAP net income				-	8,147									-	9,830
Gross profit
Stock-based compensation expenses					199										228
Amortization of purchased intangibles					1,443										2,302
Other integration expenses					20										27
					1,662										2,557
Operating expenses
Stock-based compensation expenses					1,523										1,084
Stock-based compensation related to business combination					4,258										(920	-
Amortization of purchased intangibles					1,103										1,269
Other operating income, net					(760	-									(574	-
Other integration expenses					94										184
					6,218										1,043
Taxes on income					(389	-									(1,469	-
Non-GAAP net income				-	15,638									-	11,961

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)
	Six months ended									Six months ended
	June 30, 2026									June 30, 2025
	GAAP			Adjustments 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.
	Six months ended									Six months ended
	June 30, 2026									June 30, 2025
				Unaudited									Unaudited
GAAP net income				-	13,381								-	3,834
Gross profit
Stock-based compensation expenses				398									402
Amortization of purchased intangibles				2,871									2,902
Other integration expenses				37									64
				3,306									3,368
Operating expenses
Stock-based compensation expenses				3,004									1,984
Stock-based compensation related to business combination				7,000									(313)
Amortization of purchased intangibles				2,196									2,153
Other operating expenses, net				281									3,964
Other integration expenses				205									344
				12,686									8,132
Taxes on income				(148)									(1,546)
Non-GAAP net income				-	29,225								-	13,788

GILAT SATELLITE NETWORKS LTD.
SUPPLEMENTAL INFORMATION
U.S. dollars in thousands
ADJUSTED EBITDA:
	Six months ended						Three months ended
	June 30,						June 30,
	2026			2025			2026			2025
	Unaudited						Unaudited
GAAP net income	-	13,381		-	3,834		-	8,147		-	9,830
Adjustments:
Financial expenses (income), net	(3,462)			2,186			(2,167)			1,250
Taxes on income	(841)			(3,083)			(1,288)			(5,396)
Stock-based compensation expenses	3,402			2,386			1,722			1,312
Stock-based compensation related to business combination	7,000			(313)			4,258			(920)
Depreciation and amortization Including amortization of lease incentive
SEGMENT REVENUES:
	Six months ended						Three months ended
	June 30,						June 30,
	2026			2025			2026			2025
	Unaudited						Unaudited
Commercial	-	155,771		-	133,277		-	82,986		-	69,057
Defense	47,890			43,004			22,463			19,993
Peru	29,476			20,726			17,214			15,920
Total revenues	-	233,137		-	197,007		-	122,663		-	104,970

GILAT SATELLITE NETWORKS LTD.
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
	June 30,				December 31,
		2026				2025
	Unaudited				Audited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	-	144,805			-	168,907
Short-term deposits		14,350				16,433
Restricted cash		64				88
Trade receivables, net		107,656				85,929
Contract assets		32,792				36,987
Inventories		65,490				45,430
Other current assets		34,583				37,406
Total current assets		399,740				391,180
LONG-TERM ASSETS:
Long-term contract assets		7,193				7,890
Severance pay funds		7,269				6,941
Deferred taxes, net		17,923				15,558
Operating lease right-of-use assets		7,510				5,922
Other long-term assets		28,696				19,871
Total long-term assets		68,591				56,182
PROPERTY AND EQUIPMENT, NET		74,309				75,172
INTANGIBLE ASSETS, NET		48,994				53,986
GOODWILL		169,534				169,534
TOTAL ASSETS	-	761,168			-	746,054
GILAT SATELLITE NETWORKS LTD.
CONSOLIDATED BALANCE SHEETS (Cont.)
U.S. dollars in thousands
	June 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		45,443				31,614
Accrued expenses		73,352				58,878
Advances from customers and deferred revenues		50,215				78,499
Operating lease liabilities		3,251				2,957
Other current liabilities		28,914				41,529
Total current liabilities		203,175				215,477
LONG-TERM LIABILITIES:
Accrued severance pay		7,818				7,508
Long-term advances from customers and deferred revenues		71				67
Operating lease liabilities		4,364				3,102
Other long-term liabilities		1,131				19,622
Total long-term liabilities		13,384				30,299
SHAREHOLDERS' EQUITY:
Share capital - ordinary shares of NIS 0.2 par value		3,970				3,765
Additional paid-in capital		1,148,171				1,115,030
Accumulated other comprehensive loss		(6,164	-			(3,768	-
Accumulated deficit		(601,368	-			(614,749	-
Total shareholders' equity		544,609				500,278
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	-	761,168			-	746,054

GILAT SATELLITE NETWORKS LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
	Six months ended June 30,								Three months ended June 30,
		2026				2025				2026				2025
	Unaudited								Unaudited
Cash flows from operating activities:
Net income	-	13,381			-	3,834			-	8,147			-	9,830
Adjustments required to reconcile net income
to net cash provided by (used in) operating activities:
Depreciation and amortization		10,423				9,942				5,344				6,037
Stock-based compensation expenses		10,402				2,073				5,980				392
Accrued severance pay, net		(17	-			(76	-			(111	-			(54	-
Deferred taxes, net		(2,365	-			(4,233	-			(2,162	-			(6,217	-
Increase in trade receivables, net		(22,202	-			(9,234	-			(7,423	-			(13,762	-
Decrease in contract assets		4,891				16,552				8,868				24,350
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)		1,485				11,754				11,285				(6,636	-
Decrease (increase) in inventories		(20,212	-			96				(20,705	-			11,552
Increase (decrease) in trade payables		13,860				(14,690	-			11,409				(6,862	-
Increase (decrease) in accrued expenses		14,153				(4,587	-			17,567				1,771
Decrease in advances from customers and deferred revenues		(28,292	-			(15,426	-			(27,371	-			(14,330	-
Increase (decrease) in other liabilities		(9,592	-			2,526				(12,739	-			(928	-
Net cash provided by (used in) operating activities		(14,085	-			(1,469	-			(1,911	-			5,143
Cash flows from investing activities:
Purchase of property, equipment and intangible assets		(4,175	-			(4,256	-			(1,662	-			(2,766	-
Investment in other asset		-				(3,500	-			-				(1,000	-
Investment in short-term deposits		(14,350	-			-				-				-
Proceeds from short-term deposits		16,433				-				16,433				-
Acquisitions of subsidiaries, net of cash acquired		(10,000	-			(104,943	-			(10,000	-			-
Net cash provided by (used in) investing activities		(12,092	-			(112,699	-			4,771				(3,766	-
Cash flows from financing activities:
Proceeds from long-term loan, net of associated costs		-				58,970				-				-
Repayment of long-term loan		-				(750	-			-				(750	-
Proceeds from exercise of stock options		46				-				32				-
Net cash provided by (used in) financing activities		46				58,220				32				(750	-
Effect of exchange rate changes on cash, cash equivalents and restricted cash		2,005				1,116				1,759				524
Increase (decrease) in cash, cash equivalents and restricted cash		(24,126	-			(54,832	-			4,651				1,151
Cash, cash equivalents and restricted cash at the beginning of the period		168,995				120,249				140,218				64,266
Cash, cash equivalents and restricted cash at the end of the period	-	144,869			-	65,417			-	144,869			-	65,417