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Gilat Satellite Networks Ltd.
Gilat Reports First Quarter 2026 Results
Published 5d ago
13 min read

Gilat Reports First Quarter 2026 Results

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Revenues Grew 20%, GAAP Operating Income Increased to $4.4 Million, Adjusted EBITDA Doubled to $15.1 Million
Reiterates Guidance for 2026

PETAH TIKVA, Israel, May 13, 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 first quarter, ended March 31, 2026.

First Quarter 2026 Financial Highlights

  • Revenues of $110.5 million, compared with $92 million in Q1 2025;

  • GAAP operating income of $4.4 million, compared with GAAP operating loss of $2.7 million in Q1 2025;

  • Non-GAAP operating income of $12.5 million, compared with $5.2 million in Q1 2025;

  • GAAP net income of $5.2 million, or $0.07 per diluted share, compared with GAAP net loss of $6 million, or $0.11 loss per diluted share, in Q1 2025;

  • Non-GAAP net income of $13.6 million, or $0.18 per diluted share, compared with $1.8 million, or $0.03 per diluted share, in Q1 2025;

  • Adjusted EBITDA of $15.1 million, compared with $7.6 million in Q1 2025.

Forward-Looking Expectations

Management’s financial guidance for 2026 is 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 midpoint1.

Management Commentary

Adi Sfadia, Gilat's CEO, commented: “Gilat began 2026 with strong execution and momentum across our key growth initiatives. Our first quarter results reflected the strength of our broad solutions portfolio, continued expansion in defense and commercial markets, and improving profitability.”

Mr. Sfadia added, “During the quarter, we expanded our defense footprint into additional countries and strengthened strategic commercial relationships in India. We also saw growing interest in our virtualized, software-based network solutions following the successful demonstration conducted with Amazon AWS and SES Space & Defense. In-flight connectivity demand remains robust as next-generation aviation connectivity deployments continue to scale.

We are also experiencing increased demand for our defense portable gateway solutions, driven by the growing need for resilient, location-independent communications capabilities in contested operational environments. In parallel, we introduced a new category of high-power solid-state power amplifiers designed to replace traditional TWTAs across both defense and commercial applications.

Adoption of LEO and multi-orbit architectures continues to drive demand for electronically steered antennas, aligning well with our ESA portfolio strategy and creating additional growth opportunities for Gilat.”

Mr. Sfadia concluded, “Looking ahead, our backlog and pipeline remain strong. Based on our current visibility and execution confidence, we are reaffirming our full-year outlook for 2026. In addition, supported by our strong balance sheet and cash position, we continue to actively evaluate strategic opportunities to accelerate growth and further strengthen our market position.”

Key Recent Announcements

  • Gilat Signs Strategic Multimillion Partnership with Nelco in India to Deploy SkyEdge IV

  • Gilat Awarded over $7 Million for its New EnduroStream Solution to Support the U.S. Department of War

  • Gilat Defense, AWS, SES Space & Defense and WAVE Consortium Demonstrate Virtualized SATCOM Gateway Modem Architecture at Satellite 2026

  • Gilat Receives Approximately $6 Million in Orders Supporting U.S. Army Global Communications Operations

  • Gilat Secures Multi-Million Dollar IFC Order to Power Commercial Aviation Connectivity

  • Gilat Demonstrates 5G NTN End-to-End Connectivity over GEO Satellite

  • Gilat Receives $39 Million in Orders for Sidewinder ESA Terminals

  • Gilat Receives Over $16 Million Order to Supply SATCOM Systems to a European Ministry of Defense


Conference Call Details

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

In English:

Date:

Wednesday, May 13, 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:
International:

1-888-407-2553
+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:
Start:

Thursday, May 14, 2026
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_6i326qdWSvSx8NMDdM3QIw

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 (SSPA) and Block Upconverters (BUC) 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

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 Iran and the Hezbollah in Lebanon. 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
PublicRelations@gilat.com

Alliance Advisors

GilatIR@allianceadvisors.com
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 (LOSS)

U.S. dollars in thousands (except share and per share data)

 

 

 

Three months ended

 

 

 

March 31,

 

 

 

2026

 

2025

 

 

 

Unaudited

 

 

 

 

 

 

Revenues

 

$

110,474

 

 

$

92,037

 

Cost of revenues

 

 

72,825

 

 

 

63,639

 

 

 

 

 

 

 

Gross profit

 

 

37,649

 

 

 

28,398

 

 

 

 

 

 

 

Research and development expenses, net

 

 

12,117

 

 

 

11,621

 

Selling and marketing expenses

 

 

9,707

 

 

 

8,202

 

General and administrative expenses

 

 

10,398

 

 

 

6,784

 

Other operating expenses, net

 

 

1,041

 

 

 

4,538

 

 

 

 

 

 

 

Total operating expenses

 

 

33,263

 

 

 

31,145

 

 

 

 

 

 

 

Operating income (loss)

 

 

4,386

 

 

 

(2,747

)

 

 

 

 

 

 

 

 

 

Financial income (expenses), net

 

 

1,295

 

 

 

(936

)

 

 

 

 

 

 

Income (loss) before taxes on income

 

 

5,681

 

 

 

(3,683

)

 

 

 

 

 

 

Taxes on income

 

 

(447

)

 

 

(2,313

)

 

 

 

 

 

 

Net income (loss)

 

$

5,234

 

 

$

(5,996

)

 

 

 

 

 

 

Earnings (losses) per share (Basic and Diluted)

 

$

0.07

 

 

$

(0.11

)

 

 

 

 

 

 

Weighted average number of shares used in computing earnings (losses) per share

 

 

 

 

 

Basic

 

 

74,525,773

 

 

 

57,037,671

 

 

Diluted

 

 

77,188,106

 

 

 

57,037,671

 

 

 

 

 

 

 


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, 2026

 

March 31, 2025

 

 

GAAP

 

Adjustments (*)

 

Non-GAAP

 

GAAP

 

Adjustments (*)

 

Non-GAAP

 

 

Unaudited

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

$

37,649

 

 

1,644

 

 

$

39,293

 

 

$

28,398

 

 

 

810

 

 

$

29,208

Operating expenses

 

 

33,263

 

 

(6,468

)

 

 

26,795

 

 

 

31,145

 

 

 

(7,090

)

 

 

24,055

Operating income (loss)

 

 

4,386

 

 

8,112

 

 

 

12,498

 

 

 

(2,747

)

 

 

7,900

 

 

 

5,153

Income (loss) before taxes on income

 

 

5,681

 

 

8,112

 

 

 

13,793

 

 

 

(3,683

)

 

 

7,900

 

 

 

4,217

Net income (loss)

 

 

5,234

 

 

8,353

 

 

 

13,587

 

 

 

(5,996

)

 

 

7,823

 

 

 

1,827

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (losses) per share (Basic and Diluted)

 

$

0.07

 

$

0.11

 

 

$

0.18

 

 

$

(0.11

)

 

$

0.14

 

 

$

0.03

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares used in computing earnings (losses) per share

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

74,525,773

 

 

 

 

74,525,773

 

 

 

57,037,671

 

 

 

 

 

57,037,671

Diluted

 

 

77,188,106

 

 

 

 

77,265,072

 

 

 

57,037,671

 

 

 

 

 

58,005,232

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(*)  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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Three months ended

 

 

March 31, 2026

 

March 31, 2025

 

 

 

 

Unaudited

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net income (loss)

 

 

 

$

5,234

 

 

 

 

 

 

$

(5,996

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expenses

 

 

 

 

199

 

 

 

 

 

 

 

173

 

 

 

Amortization of purchased intangibles

 

 

 

 

1,428

 

 

 

 

 

 

 

600

 

 

 

Other integration expenses

 

 

 

 

17

 

 

 

 

 

 

 

37

 

 

 

 

 

 

 

 

1,644

 

 

 

 

 

 

 

810

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expenses

 

 

 

 

1,481

 

 

 

 

 

 

 

901

 

 

 

Stock-based compensation related to business combination

 

 

 

 

2,742

 

 

 

 

 

 

 

607

 

 

 

Amortization of purchased intangibles

 

 

 

 

1,093

 

 

 

 

 

 

 

884

 

 

 

Other operating expenses, net

 

 

 

 

1,041

 

 

 

 

 

 

 

4,538

 

 

 

Other integration expenses

 

 

 

 

111

 

 

 

 

 

 

 

160

 

 

 

 

 

 

 

 

6,468

 

 

 

 

 

 

 

7,090

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxes on income

 

 

 

 

241

 

 

 

 

 

 

 

(77

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net income

 

 

 

$

13,587

 

 

 

 

 

 

$

1,827

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



GILAT SATELLITE NETWORKS LTD.

SUPPLEMENTAL INFORMATION

U.S. dollars in thousands

 

 

 

 

ADJUSTED EBITDA:

 

 

 

 

 

 

 

 

Three months ended

 

March 31,

 

2026

 

2025

 

Unaudited

 

 

 

 

GAAP net income (loss)

$

5,234

 

 

$

(5,996

)

Adjustments:

 

 

 

Financial expenses (income), net

 

(1,295

)

 

 

936

 

Taxes on income

 

447

 

 

 

2,313

 

Stock-based compensation expenses

 

1,680

 

 

 

1,074

 

Stock-based compensation related to business combination

 

2,742

 

 

 

607

 

Depreciation and amortization (*)

 

5,116

 

 

 

3,962

 

Other operating expenses, net

 

1,041

 

 

 

4,538

 

Other integration expenses

 

128

 

 

 

197

 

 

 

 

 

Adjusted EBITDA

$

15,093

 

 

$

7,631

 

 

 

 

 

(*) Including amortization of lease incentive

 

 

 

 

 

 

 

SEGMENT REVENUES:

 

 

 

 

 

 

 

 

Three months ended

 

March 31,

 

2026

 

2025

 

Unaudited

 

 

 

 

Commercial

$

72,785

 

 

$

64,220

 

Defense

 

25,427

 

 

 

23,011

 

Peru

 

12,262

 

 

 

4,806

 

 

 

 

 

Total revenues

$

110,474

 

 

$

92,037

 

 

 

 

 


GILAT SATELLITE NETWORKS LTD.

 

 

 

 

CONSOLIDATED BALANCE SHEETS

 

 

 

 

U.S. dollars in thousands

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

December 31,

 

 

2026

 

2025

 

 

Unaudited

 

Audited

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

Cash and cash equivalents

 

$

140,154

 

 

$

168,907

 

Short-term deposits

 

 

30,860

 

 

 

16,433

 

Restricted cash

 

 

64

 

 

 

88

 

Trade receivables, net

 

 

100,632

 

 

 

85,929

 

Contract assets

 

 

41,660

 

 

 

36,987

 

Inventories

 

 

44,794

 

 

 

45,430

 

Other current assets

 

 

46,639

 

 

 

37,406

 

 

 

 

 

 

Total current assets

 

 

404,803

 

 

 

391,180

 

 

 

 

 

 

LONG-TERM ASSETS:

 

 

 

 

Long-term contract assets

 

 

7,193

 

 

 

7,890

 

Severance pay funds

 

 

6,825

 

 

 

6,941

 

Deferred taxes

 

 

15,761

 

 

 

15,558

 

Operating lease right-of-use assets

 

 

5,349

 

 

 

5,922

 

Other long-term assets

 

 

19,877

 

 

 

19,871

 

 

 

 

 

 

Total long-term assets

 

 

55,005

 

 

 

56,182

 

 

 

 

 

 

PROPERTY AND EQUIPMENT, NET

 

 

74,962

 

 

 

75,172

 

 

 

 

 

 

INTANGIBLE ASSETS, NET

 

 

51,452

 

 

 

53,986

 

 

 

 

 

 

GOODWILL

 

 

169,534

 

 

 

169,534

 

 

 

 

 

 

TOTAL ASSETS

 

$

755,756

 

 

$

746,054

 

 

 

 

 

 

GILAT SATELLITE NETWORKS LTD.

CONSOLIDATED BALANCE SHEETS (Cont.)

U.S. dollars in thousands

 

 

 

 

 

 

 

March 31,

 

December 31,

 

 

2026

 

2025

 

 

Unaudited

 

Audited

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

Current maturities of long-term loan

 

$

2,000

 

 

$

2,000

 

Trade payables

 

 

33,776

 

 

 

31,614

 

Accrued expenses

 

 

55,452

 

 

 

58,878

 

Advances from customers and deferred revenues

 

 

77,476

 

 

 

78,499

 

Operating lease liabilities

 

 

2,620

 

 

 

2,957

 

Other current liabilities

 

 

28,915

 

 

 

41,529

 

 

 

 

 

 

Total current liabilities

 

 

200,239

 

 

 

215,477

 

 

 

 

 

 

LONG-TERM LIABILITIES:

 

 

 

 

Accrued severance pay

 

 

7,485

 

 

 

7,508

 

Long-term advances from customers and deferred revenues

 

 

180

 

 

 

67

 

Operating lease liabilities

 

 

2,849

 

 

 

3,102

 

Other long-term liabilities

 

 

8,847

 

 

 

19,622

 

 

 

 

 

 

Total long-term liabilities

 

 

19,361

 

 

 

30,299

 

 

 

 

 

 

SHAREHOLDERS' EQUITY:

 

 

 

 

Share capital - ordinary shares of NIS 0.2 par value

 

 

3,967

 

 

 

3,765

 

Additional paid-in capital

 

 

1,146,418

 

 

 

1,115,030

 

Accumulated other comprehensive loss

 

 

(4,714

)

 

 

(3,768

)

Accumulated deficit

 

 

(609,515

)

 

 

(614,749

)

 

 

 

 

 

Total shareholders' equity

 

 

536,156

 

 

 

500,278

 

 

 

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

 

$

755,756

 

 

$

746,054

 

 

 

 

 

 



GILAT SATELLITE NETWORKS LTD.

 

 

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

U.S. dollars in thousands

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

March 31,

 

 

2026

 

2025

 

 

Unaudited

Cash flows from operating activities:

 

 

 

Net income (loss)

$

5,234

 

 

$

(5,996

)

Adjustments required to reconcile net income (loss) to net cash used in operating activities:

 

 

 

Depreciation and amortization

 

5,079

 

 

 

3,905

 

Stock-based compensation expenses

 

4,422

 

 

 

1,681

 

Accrued severance pay, net

 

94

 

 

 

(22

)

Deferred taxes, net

 

(203

)

 

 

1,984

 

Decrease (increase) in trade receivables, net

 

(14,779

)

 

 

4,528

 

Increase in contract assets

 

(3,977

)

 

 

(7,798

)

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)

 

(9,800

)

 

 

18,390

 

Decrease (increase) in inventories

 

493

 

 

 

(11,456

)

Increase (decrease) in trade payables

 

2,451

 

 

 

(7,828

)

Decrease in accrued expenses

 

(3,414

)

 

 

(6,358

)

Decrease in advances from customers and deferred revenues

 

(921

)

 

 

(1,096

)

Increase in other liabilities

 

3,147

 

 

 

3,454

 

Net cash used in operating activities

 

(12,174

)

 

 

(6,612

)

 

 

 

 

 

Cash flows from investing activities:

 

 

 

Purchase of property, equipment and intangible assets

 

(2,513

)

 

 

(1,490

)

Investment in other asset

 

-

 

 

 

(2,500

)

Investments in short-term deposits

 

(14,350

)

 

 

-

 

Acquisitions of subsidiary, net of cash acquired

 

-

 

 

 

(104,943

)

Net cash used in investing activities

 

(16,863

)

 

 

(108,933

)

 

 

 

 

 

Cash flows from financing activities:

 

 

 

Proceeds from long-term loan, net of associated costs

 

-

 

 

 

58,970

 

Proceeds from exercise of stock options

 

14

 

 

 

-

 

Net cash provided by financing activities

 

14

 

 

 

58,970

 

 

 

 

 

 

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

246

 

 

 

592

 

 

 

 

 

 

Decrease in cash, cash equivalents and restricted cash

 

(28,777

)

 

 

(55,983

)

 

 

 

 

 

Cash, cash equivalents and restricted cash at the beginning of the period

 

168,995

 

 

 

120,249

 

 

 

 

 

 

Cash, cash equivalents and restricted cash at the end of the period

$

140,218

 

 

$

64,266