Gilat Reports Second Quarter 2025 Results

Revenues Increased by 37%; GAAP Operating Income of $5.7 Million; Adjusted EBITDA of $11.8 Million Raises Midpoint of 2025 Revenue and EBITDA Guidance PETAH TIKVA, Israel, Aug. 06, 2025 (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, 2025. Second Quarter 2025 Financial Highlights Revenues of $105 million, up 37% compared with $76.6 million in Q2 2024;GAAP operating income of $5.7 million, compared with GAAP operating income of $2.8 million in Q2 2024;Non-GAAP operating income of $9.3 million, compared with $7.3 million in Q2 2024;GAAP net income of $9.8 million, or $0.17 per diluted share, compared with GAAP net income of $1.3 million, or $0.02 per diluted share, in Q2 2024;Non-GAAP net income of $12 million, or $0.21 per diluted share, compared with $5.6 million, or $0.10 per diluted share, in Q2 2024;Adjusted EBITDA of $11.8 million, compared with $10.1 million in Q2 2024, which includes a loss of about $1.5 million from Gilat Stellar Blu’s ramp up process. Adjusted EBITDA, excluding such loss, was $13.3 million. Forward-Looking Expectations On the strength of our results year-to-date, improved visibility and business momentum, management now expects revenue for 2025 between $435 million and $455 million, representing a higher revenue growth rate of approximately 46% at the midpoint. Previously management had expected revenue for 2025 between $415 million and $455 million, for a 42% growth rate at the midpoint. Adjusted EBITDA for 2025 is now expected to be between $50 million and $53 million for a higher growth rate of approximately 22% at the midpoint, compared to the previous guidance for EBITDA to be between $47 million and $53 million. Management Commentary Adi Sfadia, Gilat's CEO, commented: "Gilat’s second quarter results were strong, demonstrating momentum across our growth engines and successful execution of our growth strategy. Gilat Defense is extending its reach by leveraging top-line synergies between Gilat and DataPath and offering a broader range of solutions to defense customers in the U.S. and among its allies. With a unified structure enabling faster response to customers’ mission needs and innovation across our portfolio, we are well-positioned to meet growing global demand driven by geopolitical tension and shifting budget priorities in favor of satellite communications." Mr. Sfadia added, "Our Commercial Division achieved a milestone quarter, driven by strong bookings, strategic wins, and accelerating adoption of our next-generation SkyEdge IV platform. The industry’s shift toward virtualized, cloud-native networks marks a significant advancement in satellite communications infrastructure and elevates Gilat’s positioning with higher value and improved margins, providing the option to sell through a PaaS model. Stellar Blu continued to ramp up production, deliver Sidewinder ESA terminals to customers in commercial and business aviation markets, and build its backlog of orders. Currently, there are approximately 225 aircraft flying with the Gilat antenna, demonstrating excellent results and throughput. Gilat Peru also achieved an outstanding quarter, highlighted by new orders from Pronatel.” Mr. Sfadia concluded, “These achievements and advancements strengthen our leadership in multi-orbit ground solutions and the emerging IFC market. We remain strategically positioned to accelerate revenue growth as we capture the expanding opportunities in mission-critical defense communications and next-generation satellite solutions.” Key Recent Announcements Gilat Awarded Over $8 Million from Israel’s Ministry of Defense for Strategic Defense Communication SolutionsGilat Awarded Approximately $60 Million to Provide Digital Inclusion Solutions in PeruGilat Awarded More Than $7 Million to Provide the U.S. Army With Services in Support of Mission-Critical CommunicationsGilat Awarded Over $22 Million in Orders from Tier One Satellite OperatorsGilat Secures $27 Million for Gilat’s Stellar Blu PortfolioGilat Signs a $40 Million Contract for Virtualized SkyEdge IV PlatformGilat Receives Over $25 Million in Orders for its Multi-Orbit Satellite Solutions Conference Call Details Gilat’s management will discuss its second quarter 2025 results and business achievements and participate in a question-and-answer session: Date: Wednesday, August 6, 2025 Start: 09:30 AM EST / 16:30 IST A simultaneous webcast of the conference call will be available through this link: https://www.veidan-conferencing.com/gilat Or 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 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 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 NetworksHagay Katz, Chief Products and Marketing Officerhagayk@gilat.com Alliance Advisors GilatIR@allianceadvisors.com Phone: +1 212 838 3777 GILAT SATELLITE NETWORKS LTD.CONSOLIDATED STATEMENTS OF INCOMEU.S. dollars in thousands (except share and per share data) Six months ended Three months ended June 30, June 30, 2025 2024 2025 2024 Unaudited Unaudited Revenues$197,007 $152,709 $104,970 $76,631 Cost of revenues 136,682 98,082 73,043 50,058 Gross profit 60,325 54,627 31,927 26,573 Research and development expenses, net 23,930 18,547 12,309 9,228 Selling and marketing expenses 16,467 14,109 8,265 7,032 General and administrative expenses 13,027 14,514 6,243 6,437 Other operating expenses (income), net 3,964 (725) (574) 1,085 Total operating expenses 57,388 46,445 26,243 23,782 Operating income 2,937 8,182 5,684 2,791 Financial income (expenses), net (2,186) 779 (1,250) 266 Income before taxes on income 751 8,961 4,434 3,057 Taxes on income 3,083 (2,695) 5,396 (1,755) Net income$ 3,834 $ 6,266 $ 9,830 $ 1,302 Earnings per share (basic and diluted)$ 0.07 $ 0.11 $ 0.17 $ 0.02 Weighted average number of shares used in computing earnings per share Basic 57,081,120 57,016,808 57,124,568 57,017,032 Diluted 57,189,406 57,016,808 57,341,141 57,017,032 GILAT SATELLITE NETWORKS LTD.RECONCILIATION BETWEEN GAAP AND NON-GAAP CONSOLIDATED STATEMENTS OF INCOMEFOR COMPARATIVE PURPOSESU.S. dollars in thousands (except share and per share data) Three months ended Three months ended June 30, 2025 June 30, 2024 GAAP Adjustments (*) Non-GAAP GAAP Adjustments (*) Non-GAAP Unaudited Unaudited Gross profit$31,927 2,557 $34,484 $26,573 1,617 $28,190Operating expenses 26,243 (1,043) 25,200 23,782 (2,914) 20,868Operating income 5,684 3,600 9,284 2,791 4,531 7,322Income before taxes on income 4,434 3,600 8,034 3,057 4,531 7,588Net income$ 9,830 2,131 $ 11,961 $ 1,302 4,253 $ 5,555 Earnings per share (basic and diluted)$ 0.17 $0.04 $ 0.21 $ 0.02 $0.08 $ 0.10 Weighted average number of shares used in computing earnings per share Basic 57,124,568 57,124,568 57,017,032 57,017,032Diluted 57,341,141 58,041,043 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 non-recurring expenses, 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, 2025 June 30, 2024 Unaudited Unaudited GAAP net income $9,830 $1,302 Gross profit Stock-based compensation expenses 228 150 Amortization of purchased intangibles 2,302 920 Other non-recurring expenses - 466 Other integration expenses 27 81 2,557 1,617 Operating expenses Stock-based compensation expenses 1,084 705 Stock-based compensation related to business combination (920) 842 Amortization of purchased intangibles 1,269 267 Other operating expenses (income), net (574) 1,085 Other integration expenses 184 15 1,043 2,914 Taxes on income (1,469) (278) Non-GAAP net income $11,961 $5,555 GILAT SATELLITE NETWORKS LTD.RECONCILIATION BETWEEN GAAP AND NON-GAAP CONSOLIDATED STATEMENTS OF INCOMEFOR COMPARATIVE PURPOSESU.S. dollars in thousands (except share and per share data) Six months ended Six months ended June 30, 2025 June 30, 2024 GAAP Adjustments (*) Non-GAAP GAAP Adjustments (*) Non-GAAP Unaudited Unaudited Gross profit$60,325 3,368 $63,693 $54,627 2,343 $56,970Operating expenses 57,388 (8,132) 49,256 46,445 (3,413) 43,032Operating income 2,937 11,500 14,437 8,182 5,756 13,938Income before taxes on income 751 11,500 12,251 8,961 5,756 14,717Net income 3,834 9,954 13,788 6,266 5,303 11,569 Earnings per share (basic and diluted)$ 0.07 $0.17 $ 0.24 $ 0.11 $0.09 $ 0.20 Weighted average number of shares used in computing earnings per share Basic 57,081,120 57,081,120 57,016,808 57,016,808Diluted 57,189,406 58,023,137 57,016,808 57,062,883 (*) 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. Six months ended Six months ended June 30, 2025 June 30, 2024 Unaudited Unaudited GAAP net income $3,834 $6,266 Gross profit Stock-based compensation expenses 402 300 Amortization of purchased intangibles 2,902 1,427 Other non-recurring expenses - 466 Other integration expenses 64 150 3,368 2,343 Operating expenses Stock-based compensation expenses 1,984 1,422 Stock-based compensation related to business combination (313) 2,166 Amortization of purchased intangibles 2,153 524 Other operating expenses (income), net 3,964 (725) Other integration expenses 344 26 8,132 3,413 Taxes on income (1,546) (453) Non-GAAP net income $13,788 $11,569 GILAT SATELLITE NETWORKS LTD.SUPPLEMENTAL INFORMATIONU.S. dollars in thousands ADJUSTED EBITDA: Six months ended Three months ended June 30, June 30, 2025 2024 2025 2024 Unaudited Unaudited GAAP net income$3,834 $6,266 $9,830 $1,302 Adjustments: Financial expenses (income), net 2,186 (779) 1,250 (266)Taxes on income (3,083) 2,695 (5,396) 1,755 Stock-based compensation expenses 2,386 1,722 1,312 855 Stock-based compensation related to business combination (313) 2,166 (920) 842 Depreciation and amortization (*) 10,046 7,443 6,084 3,963 Other operating expenses (income), net 3,964 (725) (574) 1,085 Other non-recurring expenses - 466 - 466 Other integration expenses 408 176 211 96 Adjusted EBITDA$19,428 $19,430 $11,797 $10,098 (*) Including amortization of lease incentive SEGMENT REVENUES: Six months ended Three months ended June 30, June 30, 2025 2024 2025 2024 Unaudited Unaudited Commercial$133,277 $84,593 $69,057 $43,400 Defense 43,004 37,404 19,993 20,174 Peru 20,726 30,712 15,920 13,057 Total revenues$ 197,007 $ 152,709 $ 104,970 $ 76,631 GILAT SATELLITE NETWORKS LTD. CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands June 30, December 31, 2025 2024 Unaudited Audited ASSETS CURRENT ASSETS: Cash and cash equivalents$64,929 $119,384 Restricted cash 474 853 Trade receivables, net 53,162 49,600 Contract assets 8,603 24,941 Inventories 48,737 38,890 Other current assets 45,498 21,963 Total current assets 221,403 255,631 LONG-TERM ASSETS: Restricted cash 14 12 Long-term contract assets 7,890 8,146 Severance pay funds 6,544 5,966 Deferred taxes 16,129 11,896 Operating lease right-of-use assets 5,980 6,556 Other long-term assets 18,043 5,288 Total long-term assets 54,600 37,864 PROPERTY AND EQUIPMENT, NET 70,480 70,834 INTANGIBLE ASSETS, NET 61,689 12,925 GOODWILL 167,706 52,494 TOTAL ASSETS$575,878 $429,748 GILAT SATELLITE NETWORKS LTD.CONSOLIDATED BALANCE SHEETS (Cont.)U.S. dollars in thousands June 30, December 31, 2025 2024 Unaudited Audited LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Current maturities of long-term loan$3,375 $- Trade payables 18,541 17,107 Accrued expenses 46,295 45,368 Advances from customers and deferred revenues 57,464 18,587 Operating lease liabilities 2,919 2,557 Other current liabilities 18,621 17,817 Total current liabilities 147,215 101,436 LONG-TERM LIABILITIES: Long-term loans 56,497 2,000 Accrued severance pay 7,179 6,677 Long-term advances from customers and deferred revenues 25 580 Operating lease liabilities 3,229 4,014 Other long-term liabilities 45,971 10,606 Total long-term liabilities 112,901 23,877 SHAREHOLDERS' EQUITY: Share capital - ordinary shares of NIS 0.2 par value 2,743 2,733 Additional paid-in capital 947,500 943,294 Accumulated other comprehensive loss (2,843) (6,120)Accumulated deficit (631,638) (635,472) Total shareholders' equity 315,762 304,435 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$575,878 $429,748 GILAT SATELLITE NETWORKS LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS U.S. dollars in thousands Six months ended Three months ended June 30, June 30, 2025 2024 2025 2024 Unaudited UnauditedCash flows from operating activities: Net income $3,834 $6,266 $9,830 $1,302 Adjustments required to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization 9,942 7,333 6,037 3,908 Stock-based compensation expenses 2,073 3,888 392 1,697 Accrued severance pay, net (76) 60 (54) 115 Deferred taxes, net (4,233) 1,724 (6,217) 1,273 Increase in trade receivables, net (9,234) (17,734) (13,762) (8,937)Decrease (increase) in contract assets 16,552 2,982 24,350 (3,266)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) 11,754 5,512 (6,636) 2,005 Decrease in inventories 96 974 11,552 4,167 Increase (decrease) in trade payables (14,690) 3,579 (6,862) 4,245 Decrease in accrued expenses (4,587) (2,229) 1,771 (989)Decrease in advances from customers and deferred revenues (15,426) (9,486) (14,330) (6,732)Increase (decrease) in other liabilities 2,526 (2,177) (928) (2,316)Net cash provided by (used in) operating activities (1,469) 692 5,143 (3,528) Cash flows from investing activities: Purchase of property, equipment and intangible assets (4,256) (2,650) (2,766) (1,857)Investment in other asset (3,500) - (1,000) - Acquisitions of subsidiary, net of cash acquired (104,943) - - - Net cash used in investing activities (112,699) (2,650) (3,766) (1,857) Cash flows from financing activities: Repayment of credit facility, net - (7,453) - (4,709)Repayment of short-term debts - (1,340) - (1,340)Proceeds from short-term debts - 1,469 - 1,469 Proceeds from long-term loan, net of associated costs 58,970 - - - Repayment of long-term loan (750) - (750) - Net cash provided by (used in) financing activities 58,220 (7,324) (750) (4,580) Effect of exchange rate changes on cash, cash equivalents and restricted cash 1,116 (718) 524 (450) Increase (decrease) in cash, cash equivalents and restricted cash (54,832) (10,000) 1,151 (10,415) Cash, cash equivalents and restricted cash at the beginning of the period 120,249 104,751 64,266 105,166 Cash, cash equivalents and restricted cash at the end of the period$ 65,417 $ 94,751 $ 65,417 $ 94,751

Gilat Reports Second Quarter 2025 Results

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