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Gilat Reports First Quarter 2026 Results

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
202
6
Financial Highlights

  • Revenue
    s 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.
S
f
adia
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
[email protected]

Alliance Advisors

[email protected]
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