Fiscal 2026 fourth quarter and twelve months
Filed Aug 27, 2026Fourth-quarter revenue increased 4.8% to $120.9 million, but GAAP operating income declined to $5.8 million and the company reported a GAAP net loss of $1.3 million; fiscal 2027 guidance calls for revenue between $455 and $470 million and Adjusted EBITDA between $50 and $55 million.
Fourth-quarter North America revenue growth, backlog growth and fiscal 2027 Adjusted EBITDA guidance were positive, while international revenue, gross margins, operating income, Adjusted EBITDA and GAAP earnings declined year over year in the quarter.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q4 total revenueGAAP | $120.9 million | – | 4.8% |
| FY26 total revenueGAAP | $439.7 million | – | 1.2% |
| Q4 product salesGAAP | $89,524 | – | – |
| Q4 services revenueGAAP | $31,363 | – | – |
| FY26 product salesGAAP | $314,223 | – | – |
| FY26 services revenueGAAP | $125,459 | – | – |
| Q4 gross marginGAAP | 30.8% | – | decrease of 340 basis points |
| Q4 gross marginnon-GAAP | 30.9% | – | decrease of 380 basis points |
| FY26 gross marginGAAP | 31.5% | – | – |
| FY26 gross marginnon-GAAP | 31.8% | – | – |
| Q4 gross marginGAAP | $37,244 | – | – |
| FY26 gross marginGAAP | $138,291 | – | – |
| Q4 operating expensesGAAP | $31.4 million | – | 2.7% |
| Q4 operating expensesnon-GAAP | $27.3 million | – | 0.8% |
| FY26 operating expensesGAAP | $119.1 million | – | decrease of 7.6% |
| FY26 operating expensesnon-GAAP | $109.2 million | – | decrease of 3.8% |
| Q4 operating incomeGAAP | $5.8 million | – | decrease of 34.4% |
| Q4 operating incomenon-GAAP | $10.0 million | – | decrease of 22.7% |
| FY26 operating incomeGAAP | $19.2 million | – | 81.9% |
| FY26 operating incomenon-GAAP | $30.6 million | – | 5.2% |
| Q4 income tax expenseGAAP | $6.2 million | – | – |
| FY26 income tax expenseGAAP | $10.7 million | – | – |
| Q4 net lossGAAP | $1.3 million | – | – |
| Q4 net incomenon-GAAP | $8.3 million | – | – |
| FY26 net incomeGAAP | $2.5 million | – | – |
| FY26 net incomenon-GAAP | $21.6 million | – | – |
| Q4 diluted loss per shareGAAP | $(0.10) | – | – |
| Q4 diluted earnings per sharenon-GAAP | $0.64 | – | – |
| FY26 diluted earnings per shareGAAP | $0.19 | – | – |
| FY26 diluted earnings per sharenon-GAAP | $1.66 | – | – |
| Q4 Adjusted EBITDAnon-GAAP | $11.9 million | – | – |
| FY26 Adjusted EBITDAnon-GAAP | $36.7 million | – | – |
| Cash and cash equivalentsGAAP | $72.8 million | – | – |
| Total debtGAAP | $97.0 million | – | – |
| Net debtother | $24.2 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| North America, Q4Growth with mobile service providers and private network customers. | $68.3 million | – | 17.8% |
| International, Q4Timing of certain mobile network projects. | $52.6 million | – | decreased by 8.3% |
| North America, FY26No driver provided. | $220.0 million | – | 6.0% |
| International, FY26No driver provided. | $219.7 million | – | decreased by 3.2% |
| Africa and the Middle East, Q4No driver provided. | $14,084 | – | – |
| Europe, Q4No driver provided. | $12,725 | – | – |
| Latin America and Asia Pacific, Q4No driver provided. | $25,757 | – | – |
| Africa and the Middle East, FY26No driver provided. | $57,952 | – | – |
| Europe, FY26No driver provided. | $42,043 | – | – |
| Latin America and Asia Pacific, FY26No driver provided. | $119,653 | – | – |
Fiscal 2027 full year outlook
- Revenuebetween $455 and $470 million
- NoteAdjusted EBITDA between $50 and $55 million
Capital returns
- Repurchased $2.2 million of shares in Q4 at an average price of $16.55 per share.
What drove it
- Q4 North America revenue increased by $10.3 million or 17.8% due to growth with mobile service providers and private network customers.
- Q4 international revenue decreased by $4.8 million or 8.3% due to timing of certain mobile network projects.
- Gross-margin fluctuations were driven by product and customer mix.
- The company finished fiscal 2026 with backlog of $367 million, up 14% year-over-year, and maintained a trailing-twelve month book-to-bill ratio greater than 1 in the quarter.
- The company secured a significant U.S. order from an existing customer for $25.0 million to $30.0 million.
Concerns
- Q4 GAAP gross margin was 30.8%, compared with 34.2% in the fiscal 2025 fourth quarter.
- Q4 GAAP operating income decreased by $3.1 million or 34.4% to $5.8 million.
- Q4 GAAP net loss was $1.3 million, compared with GAAP net income of $5.2 million in the fiscal 2025 fourth quarter.
- Q4 Adjusted EBITDA was $11.9 million, compared with $15.1 million in the fiscal 2025 fourth quarter.
- International Q4 revenue decreased by $4.8 million or 8.3% to $52.6 million.
What to watch
- Conversion of the $367 million backlog and the trailing-twelve month book-to-bill ratio greater than 1 into revenue.
- Timing of certain mobile network projects affecting international revenue.
- Product and customer mix, which drove fourth-quarter gross-margin fluctuations.
- Execution against fiscal 2027 revenue guidance of between $455 and $470 million and Adjusted EBITDA guidance of between $50 and $55 million.
- The significant U.S. order from an existing customer for $25.0 million to $30.0 million.
Balance sheet and cash flow
- Cash and cash equivalents were $72.8 million as of July 3, 2026, compared to $78.1 million as of March 27, 2026.
- Total debt was $97.0 million as of July 3, 2026.
- Net debt was $24.2 million.
- Accounts receivable, net: $192,245 as of July 3, 2026, compared to $180,321 as of June 27, 2025.
- Unbilled receivables: $82,125 as of July 3, 2026, compared to $105,870 as of June 27, 2025.
- Inventories: $69,005 as of July 3, 2026, compared to $83,979 as of June 27, 2025.
- Total assets: $598,962 as of July 3, 2026, compared to $633,296 as of June 27, 2025.
- Current portion of long-term debt: $7,900 as of July 3, 2026, compared to $18,624 as of June 27, 2025.
- Long-term debt: $89,100 as of July 3, 2026, compared to $68,966 as of June 27, 2025.
- Total liabilities: $331,574 as of July 3, 2026, compared to $370,113 as of June 27, 2025.
- Total stockholders’ equity: $267,388 as of July 3, 2026, compared to $263,183 as of June 27, 2025.
Analysis
Aviat completed its sixth consecutive fiscal year of revenue growth, reporting FY26 revenue of $439.7 million, up 1.2% from the prior year. Fourth-quarter revenue increased 4.8% to $120.9 million. The growth was concentrated in North America, where fourth-quarter revenue rose 17.8% to $68.3 million due to growth with mobile service providers and private network customers. International fourth-quarter revenue fell 8.3% to $52.6 million because of the timing of certain mobile network projects.
Revenue mix shifted materially in the fourth quarter. Product sales were $89,524, compared with $67,405 in the fiscal 2025 fourth quarter, while services revenue was $31,363, compared with $47,935. Management attributed gross-margin fluctuations to product and customer mix. GAAP gross margin was 30.8%, down 340 basis points from 34.2%, and non-GAAP gross margin was 30.9%, down 380 basis points from 34.7%.
Profitability weakened in the quarter despite revenue growth. GAAP operating income declined 34.4% to $5.8 million and non-GAAP operating income declined 22.7% to $10.0 million. The company recorded GAAP net loss of $1.3 million, or $(0.10) per diluted share, compared with GAAP net income of $5.2 million, or $0.40 per diluted share, a year earlier. Adjusted EBITDA declined to $11.9 million from $15.1 million. For FY26, GAAP operating income increased 81.9% to $19.2 million, while Adjusted EBITDA was $36.7 million compared with $37.1 million in fiscal 2025.
Demand indicators were more constructive than the quarterly margin and earnings results. Backlog was $367 million, up 14% year over year, and the company maintained a trailing-twelve month book-to-bill ratio greater than 1 in the quarter. Aviat also secured a significant U.S. order from an existing customer for $25.0 million to $30.0 million. Cash and cash equivalents were $72.8 million as of July 3, 2026, total debt was $97.0 million, and net debt was $24.2 million. The company repurchased $2.2 million of shares in Q4 at an average price of $16.55 per share.
For fiscal 2027, Aviat guided to full-year revenue between $455 and $470 million and Adjusted EBITDA between $50 and $55 million. The outlook provides no gross-margin, operating-expense, tax-rate, GAAP operating-income, GAAP earnings-per-share, cash-flow or capital-expenditure guidance. The principal reported operating issues entering fiscal 2027 are the timing of international mobile network projects and the product and customer mix that affected fourth-quarter gross margins.
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so prior-guidance comparisons are unavailable.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Capital expenditures were not reported.
- Dividend declaration or payment was not reported.
- Fiscal 2027 gross-margin guidance was not reported.
- Fiscal 2027 operating-expense guidance was not reported.
- Fiscal 2027 tax-rate guidance was not reported.
- Fiscal 2027 GAAP operating-income, net-income or earnings-per-share guidance was not reported.
- A reconciliation of fiscal 2027 Adjusted EBITDA guidance to the corresponding GAAP measure was not provided because the company stated it was unavailable without unreasonable effort.
- Quarter-over-quarter comparisons for operating results were not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.