Gilat Reports Third Quarter 2025 Results

 

Revenues Increased by 58%, GAAP Operating Income Rose to $7.5

Million, Adjusted EBITDA Grew to $15.6 Million

 

Raising Midpoint of 2025 Revenue and Adjusted EBITDA Guidance

 

Petah Tikva, Israel, November 12,  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 third quarter, ended September 30, 2025.

 

Third Quarter 2025 Financial Highlights

 

 

 

 

 

 

 

Forward-Looking Expectations

 

With results continuing to trend toward the high end of expectations and improved visibility into the remainder of the year, the Company is raising the midpoint of its full-year 2025 financial outlook and narrowing the guidance to revenues between $445 million and $455 million for FY 2025, representing a higher revenue growth rate of approximately 47% at the midpoint. Previously, management had expected revenue for 2025 between $435 million and $455 million.

 

Management Commentary

 

Adi Sfadia, Gilat's CEO, commented: “Gilat delivered another strong quarter with significant growth and continued successful execution whilst generating robust cash from operations. Our competitive edge in satellite communications and success in next-generation programs, from VHTS to NGSO constellations and ESA solutions for IFC and Defense programs, are clearly translating into strong bookings of orders and growing demand. The $66 million private placement we completed this quarter reflects investor confidence in our strategy and combined with our strong cash generation from operations, provides additional resources to support our next phase of growth.” 

 

Mr. Sfadia added, “Gilat Defense achieved new milestones with multi-million dollar orders from the U.S. Department of Defense and the Israeli Ministry of Defense, while our Commercial division recorded major wins for the SkyEdge IV platform and Gilat Stellar Blu’s Sidewinder ESA terminals. Gilat Peru also secured an order for $25 million from Pronatel,  which is in addition to the $60 million that was reported in the beginning of Q3, for a total of $85 million.  These awards reinforce Gilat Peru's role in Peru's digital inclusion programs. We continued to strengthen our technology leadership with the industry’s first-to-market integration of AI into our Network Management System, bringing automation and intelligence to satellite network operations.”

 

Mr. Sfadia concluded, “These achievements underscore the strength of our diversified solution portfolio, our commitment to innovation and our ability to integrate new products and acquired businesses. With a strong balance sheet, robust backlog, and accelerating demand for multi-orbit solutions, we are excited about our potential growth opportunities, both organically and through acquistions.”

 

Key Recent Announcements

 

 

Conference Call Details

 

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

 

Date:	Wednesday, November 12, 2025
Start:	09:30 AM EST / 16:30 IST

 

                   

The webcast will also be archived for a period of 30 days on the Company’s website https://www.gilat.com and through the link above.

 

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 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 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 cloud-based platform and modems; high-performance satellite terminals; advanced Satellite On-the-Move (SOTM) antennas and 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, broadband access, cellular backhaul, enterprise, aerospace, broadcast, and critical infrastructure clients all while meeting the most stringent service level requirements. For more information, please visit: http://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

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
		September 30, 2025												September 30, 2024
		GAAP				Adjustments (*)				Non-GAAP				GAAP				Adjustments (*)				Non-GAAP
		Unaudited												Unaudited
Gross profit		$	34,731				2,774			$	37,505			$	27,683				755			$	28,438
Operating expenses			27,185				(2,526	)			24,659				20,938				(767	)			20,171
Operating income			7,546				5,300				12,846				6,745				1,522				8,267
Income before taxes on income			6,554				5,300				11,854				7,407				1,522				8,929
Net income		$	8,098				3,685			$	11,783			$	6,819				1,325			$	8,144
Basic earnings per share		$	0.14			$	0.06			$	0.20			$	0.12			$	0.02			$	0.14
Diluted earnings per share		$	0.14			$	0.05			$	0.19			$	0.12			$	0.02			$	0.14
Weighted average number of shares used in
computing earnings per share
Basic			58,477,579								58,477,579				57,017,032								57,017,032
Diluted			59,852,657								60,839,694				57,017,032								57,017,032

(*)	Adjustments reflect the effect of stock-based compensation as per ASC 718, amortization of purchased intangibles, other operating expenses (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
		September 30, 2025				September 30, 2024
		Unaudited				Unaudited
GAAP net income		$	8,098			$	6,819
Gross profit
Stock-based compensation expenses			215				85
Amortization of purchased intangibles			2,559				596
Other integration expenses			-				74
			2,774				755
Operating expenses
Stock-based compensation expenses			1,436				696
Stock-based compensation related to business combination			-				1,131
Amortization of purchased intangibles			1,120				248
Other operating expenses (income), net			(206	)			(1,320	)
Other integration expenses			176				12
			2,526				767
Taxes on income			(1,615	)			(197	)
Non-GAAP net income		$	11,783			$	8,144

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)

		Nine months ended												Nine months ended
		September 30, 2025												September 30, 2024
		GAAP				Adjustments (*)				Non-GAAP				GAAP				Adjustments (*)				Non-GAAP
		Unaudited												Unaudited
Gross profit		$	95,056				6,142			$	101,198			$	82,310				3,098			$	85,408
Operating expenses			84,573				(10,658	)			73,915				67,383				(4,180	)			63,203
Operating income			10,483				16,800				27,283				14,927				7,278				22,205
Income before taxes on income			7,305				16,800				24,105				16,368				7,278				23,646
Net income			11,932				13,639				25,571				13,085				6,628				19,713
Basic earnings per share		$	0.21			$	0.23			$	0.44			$	0.23			$	0.12			$	0.35
Diluted earnings per share		$	0.21			$	0.22			$	0.43			$	0.23			$	0.12			$	0.35
Weighted average number of shares used in
computing earnings per share
Basic			57,546,606								57,546,606				57,016,883								57,016,883
Diluted			58,077,156								58,961,990				57,016,883								57,047,599

(*)

Adjustments reflect the effect of stock-based compensation as per ASC 718, amortization of purchased intangibles, other operating expenses (income), net. other non-recurring expenses, other integration expenses and income tax effect on such adjustments which is calculated using the relevant effective tax rate.

		Nine months ended September 30, 2025				Nine months ended September 30, 2024
		Unaudited				Unaudited
GAAP net income		$	11,932			$	13,085
Gross profit
Stock-based compensation expenses			617				385
Amortization of purchased intangibles			5,461				2,023
Other non-recurring expenses			-				466
Other integration expenses			64				224
			6,142				3,098
Operating expenses
Stock-based compensation expenses			3,420				2,118
Stock-based compensation related to business combination			(313	)			3,297
Amortization of purchased intangibles			3,273				772
Other operating expenses (income), net			3,758				(2,045	)
Other integration expenses			520				38
			10,658				4,180
Taxes on income			(3,161	)			(650	)
Non-GAAP net income		$	25,571			$	19,713

GILAT SATELLITE NETWORKS LTD.
SUPPLEMENTAL INFORMATION
U.S. dollars in thousands

ADJUSTED EBITDA:
		Nine months ended								Three months ended
		September 30,								September 30,
		2025				2024				2025				2024
		Unaudited								Unaudited
GAAP net income		$	11,932			$	13,085			$	8,098			$	6,819
Adjustments:
Financial expenses (income), net			3,178				(1,441	)			992				(662	)
Taxes on income			(4,627	)			3,283				(1,544	)			588
Stock-based compensation expenses			4,037				2,503				1,651				781
Stock-based compensation related to business combination			(313	)			3,297				-				1,131
Depreciation and amortization (*)			16,458				10,709				6,412				3,266
Other operating expenses (income), net			3,758				(2,045	)			(206	)			(1,320	)
Other non-recurring expenses			-				466				-				-
Other integration expenses			584				262				176				86
Adjusted EBITDA		$	35,007			$	30,119			$	15,579			$	10,689

(*) Including amortization of lease incentive

SEGMENT REVENUES:
		Nine months ended								Three months ended
		September 30,								September 30,
		2025				2024				2025				2024
		Unaudited								Unaudited
Commercial		$	206,234			$	118,380			$	72,957			$	33,787
Defense			67,094				68,398				24,090				30,994
Peru			41,370				40,542				20,644				9,830
Total revenues		$	314,698			$	227,320			$	117,691			$	74,611

GILAT SATELLITE NETWORKS LTD.
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands

		September 30,				December 31,
		2025				2024
		Unaudited				Audited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	154,451			$	119,384
Restricted cash			430				853
Trade receivables, net			54,381				49,600
Contract assets			14,703				24,941
Inventories			51,344				38,890
Other current assets			44,680				21,963
Total current assets			319,989				255,631
LONG-TERM ASSETS:
Restricted cash			15				12
Long-term contract assets			7,890				8,146
Severance pay funds			6,693				5,966
Deferred taxes			18,222				11,896
Operating lease right-of-use assets			5,593				6,556
Other long-term assets			18,633				5,288
Total long-term assets			57,046				37,864
PROPERTY AND EQUIPMENT, NET			72,849				70,834
INTANGIBLE ASSETS, NET			58,160				12,925
GOODWILL			167,706				52,494
TOTAL ASSETS		$	675,750			$	429,748

		September 30,				December 31,
		2025				2024
		Unaudited				Audited
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term loan		$	3,750			$	-
Trade payables			13,534				17,107
Accrued expenses			52,648				45,368
Advances from customers and deferred revenues			81,407				18,587
Operating lease liabilities			2,782				2,557
Other current liabilities			31,519				17,817
Total current liabilities			185,640				101,436
LONG-TERM LIABILITIES:
Long-term loans			55,525				2,000
Accrued severance pay			7,249				6,677
Long-term advances from customers and deferred revenues			140				580
Operating lease liabilities			2,975				4,014
Other long-term liabilities			33,620				10,606
Total long-term liabilities			99,509				23,877
SHAREHOLDERS' EQUITY:
Share capital - ordinary shares of NIS 0.2 par value			3,199				2,733
Additional paid-in capital			1,014,112				943,294
Accumulated other comprehensive loss			(3,170	)			(6,120	)
Accumulated deficit			(623,540	)			(635,472	)
Total shareholders' equity			390,601				304,435
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$	675,750			$	429,748

GILAT SATELLITE NETWORKS LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands

		Nine months ended								Three months ended
		September 30,								September 30,
		2025				2024				2025				2024
		Unaudited								Unaudited
Cash flows from operating activities:
Net income		$	11,932			$	13,085			$	8,098			$	6,819
Adjustments required to reconcile net income
to net cash provided by operating activities:
Depreciation and amortization			16,302				10,542				6,360				3,209
Stock-based compensation expenses			3,724				5,800				1,651				1,912
Accrued severance pay, net			(155	)			(17	)			(79	)			(77	)
Deferred taxes, net			(6,325	)			1,536				(2,092	)			(188	)
Decrease (increase) in trade receivables, net			(10,613	)			(7,019	)			(1,379	)			10,715
Decrease (increase) in contract assets			10,453				(2,987	)			(6,099	)			(5,969	)
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)			12,070				3,071				316				(2,441	)
Increase in inventories			(3,358	)			(2,472	)			(3,454	)			(3,446	)
Increase (decrease) in trade payables			(19,375	)			5,080				(4,685	)			1,501
Increase in accrued expenses			1,027				2,675				5,614				4,904
Increase (decrease) in advances from customers and deferred revenues			8,625				(12,162	)			24,051				(2,676	)
Increase (decrease) in other liabilities			2,668				(1,745	)			142				432
Net cash provided by operating activities			26,975				15,387				28,444				14,695
Cash flows from investing activities:
Purchase of property, equipment and intangible assets			(8,260	)			(4,095	)			(4,004	)			(1,445	)
Investment in other asset			(3,500	)			-				-				-
Acquisitions of subsidiary, net of cash acquired			(104,943	)			-				-				-
Net cash used in investing activities			(116,703	)			(4,095	)			(4,004	)			(1,445	)
Cash flows from financing activities:
Repayment of credit facility, net			-				(7,453	)			-				-
Repayment of short-term debts			-				(4,043	)			-				(2,703	)
Proceeds from short-term debts			-				6,770				-				5,301
Proceeds from long-term loan, net of associated costs			58,970				-				-				-
Repayment of long-term loan			(1,500	)			-				(750	)			-
Proceeds from issuance of Ordinary shares in a private placement, net			65,325				-				65,325				-
Proceeds from exercise of stock options			166				-				166				-
Net cash provided by (used in) financing activities			122,961				(4,726	)			64,741				2,598
Effect of exchange rate changes on cash, cash equivalents and restricted cash			1,414				(558	)			298				160
Increase in cash, cash equivalents and restricted cash			34,647				6,008				89,479				16,008
Cash, Cash equivalents and Restricted cash at the Beginning of the Period			120,249				104,751				65,417				94,751
Cash, cash equivalents and restricted cash at the end of the period		$	154,896			$	110,759			$	154,896			$	110,759

11