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 — 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

 

 

 

•	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

 

 

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

 

 

 

 

 

 

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:

+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.

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

 

Alliance Advisors

 

GilatIR@allianceadvisors.com

Phone: +1 212 838 3777

		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