Q2 FY2026
Filed Aug 5, 2026Revenue Grew 17% to $122.7 Million; GAAP Operating Income was $4.7 Million; Adjusted EBITDA Increased 31% to $15.4 Million
Revenue and adjusted profitability increased year over year, and management reiterated 2026 guidance, but GAAP operating income and GAAP net income declined from Q2 2025 and Q2 operating cash flow was negative.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $122.7M | – | 17% |
| Cost of revenuesGAAP | $85.41M | – | – |
| Gross profitGAAP | $37.26M | – | – |
| Gross profitnon-GAAP | $38.92M | – | – |
| Research and development expenses, netGAAP | $23.72M | – | – |
| Selling and marketing expensesGAAP | $19.21M | – | – |
| General and administrative expensesGAAP | $12.22M | – | – |
| Other operating expenses (income), netGAAP | −$760K | – | – |
| Total operating expensesGAAP | $32.56M | – | – |
| Operating expensesnon-GAAP | $26.35M | – | – |
| Operating incomeGAAP | $4.69M | – | – |
| Operating incomenon-GAAP | $12.57M | – | 35% |
| Financial income (expenses), netGAAP | $2.17M | – | – |
| Income before taxes on incomeGAAP | $6.86M | – | – |
| Income before taxes on incomenon-GAAP | $14.74M | – | – |
| Taxes on incomeGAAP | $1.29M | – | – |
| Net incomeGAAP | $8.15M | – | – |
| Net incomenon-GAAP | $15.64M | – | – |
| Basic earnings per shareGAAP | $ 0.11 | – | – |
| Diluted earnings per shareGAAP | $ 0.10 | – | – |
| Basic earnings per sharenon-GAAP | $ 0.20 | – | – |
| Diluted earnings per sharenon-GAAP | $ 0.20 | – | – |
| Adjusted EBITDAnon-GAAP | $15.44M | – | 31% |
| Net cash provided by (used in) operating activitiesGAAP | −$1.91M | – | – |
| Purchase of property, equipment and intangible assetsGAAP | −$1.66M | – | – |
| Net cash provided by (used in) investing activitiesGAAP | $4.77M | – | – |
| Net cash provided by (used in) financing activitiesGAAP | $32K | – | – |
| Revenue, six months ended June 30GAAP | $233.1M | – | – |
| Operating income, six months ended June 30GAAP | $9.08M | – | – |
| Net income, six months ended June 30GAAP | $13.38M | – | – |
| Adjusted EBITDA, six months ended June 30non-GAAP | $30.53M | – | – |
| Net cash provided by (used in) operating activities, six months ended June 30GAAP | −$14.09M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| CommercialManagement cited solid execution across its Commercial segment and broad-based momentum. | $82.99M | – | – |
| DefenseManagement cited expanding activity in the United States and Europe, reflecting increasing demand for advanced communications solutions supporting mobility, rapid deployment, and operational continuity. | $22.46M | – | – |
| PeruManagement cited solid execution across its Peru segment. | $17.21M | – | – |
2026 outlook
- Revenuebetween $500 to $520 million
- NoteAdjusted EBITDA for 2026 is expected to be between $61 to $66 million.
- NoteRevenue growth rate of approximately 13% at the midpoint.
- NoteAdjusted EBITDA growth rate of approximately 19% at the midpoint.
- NoteManagement reiterates guidance for 2026.
What drove it
- Revenue increased to $122.7 million from $105 million in Q2 2025.
- Management cited solid execution across Defense, Commercial, and Peru segments.
- Gilat Defense expanded activity in the United States and Europe, according to management.
- Recent announcements included over $20 Million in SkyEdge orders, $11 Million in U.S. Department of War orders, and $43 Million of additional Sidewinder ESA orders.
- Management said first-half performance, recent awards, backlog, and a strong pipeline support the full-year 2026 outlook.
Concerns
- GAAP operating income was $4.7 million, compared with $5.7 million in Q2 2025.
- GAAP net income was $8.1 million, compared with $9.8 million in Q2 2025.
- Q2 net cash provided by (used in) operating activities was (1,911 ) (U.S. dollars in thousands), compared with 5,143 (U.S. dollars in thousands) in Q2 2025.
- Inventories increased to 65,490 (U.S. dollars in thousands) from 45,430 (U.S. dollars in thousands) at December 31, 2025.
- The Comtech acquisition is subject to regulatory approvals and customary closing conditions.
What to watch
- Execution against reiterated 2026 revenue guidance of between $500 to $520 million and Adjusted EBITDA guidance of between $61 to $66 million.
- The anticipated Comtech acquisition closing toward year-end, subject to regulatory approvals and customary closing conditions.
- Defense activity expansion in the United States and Europe and progress on certifications for next-generation defense communications architectures.
- Conversion of recent awards, backlog, and pipeline into revenue and operating cash flow.
- Inventory, trade receivables, advances from customers and deferred revenues, which were identified in the cash flow statement.
Balance sheet and cash flow
- Cash and cash equivalents were $ 144,805 (U.S. dollars in thousands) at June 30, 2026, compared with $ 168,907 (U.S. dollars in thousands) at December 31, 2025.
- Short-term deposits were 14,350 (U.S. dollars in thousands) at June 30, 2026, compared with 16,433 (U.S. dollars in thousands) at December 31, 2025.
- Cash, cash equivalents and restricted cash at the end of the period were $ 144,869 (U.S. dollars in thousands), compared with $ 65,417 (U.S. dollars in thousands) at the end of the prior-year period.
- Current maturities of long-term loan were $ 2,000 (U.S. dollars in thousands) at June 30, 2026, unchanged from $ 2,000 (U.S. dollars in thousands) at December 31, 2025.
- Inventories were 65,490 (U.S. dollars in thousands) at June 30, 2026, compared with 45,430 (U.S. dollars in thousands) at December 31, 2025.
- Trade receivables, net were 107,656 (U.S. dollars in thousands) at June 30, 2026, compared with 85,929 (U.S. dollars in thousands) at December 31, 2025.
- Net cash provided by (used in) operating activities for the six months ended June 30, 2026 was (14,085 ) (U.S. dollars in thousands), compared with (1,469 ) (U.S. dollars in thousands) in the prior-year period.
- Acquisitions of subsidiaries, net of cash acquired for the six months ended June 30, 2026 were (10,000 ) (U.S. dollars in thousands), compared with (104,943 ) (U.S. dollars in thousands) in the prior-year period.
Analysis
Gilat reported Q2 2026 revenue of $ 122,663 (U.S. dollars in thousands), versus $ 104,970 (U.S. dollars in thousands) in Q2 2025. The company characterized this as 17% growth and attributed the result to execution across the Defense, Commercial, and Peru segments. Commercial revenue was $ 82,986 (U.S. dollars in thousands), Defense was $ 22,463 (U.S. dollars in thousands), and Peru was $ 17,214 (U.S. dollars in thousands). For the six months ended June 30, revenue was $ 233,137 (U.S. dollars in thousands), compared with $ 197,007 (U.S. dollars in thousands) in the prior-year period.
The profitability picture diverged between GAAP and adjusted measures. Q2 GAAP operating income was 4,692 (U.S. dollars in thousands), down from 5,684 (U.S. dollars in thousands), while non-GAAP operating income increased to $ 12,572 (U.S. dollars in thousands) from $ 9,284 (U.S. dollars in thousands). GAAP net income was $ 8,147 (U.S. dollars in thousands), below $ 9,830 (U.S. dollars in thousands), whereas non-GAAP net income was $ 15,638 (U.S. dollars in thousands), compared with $ 11,961 (U.S. dollars in thousands). Adjusted EBITDA increased 31% to $ 15,440 (U.S. dollars in thousands) from $ 11,797 (U.S. dollars in thousands).
Operating expenses included 12,220 (U.S. dollars in thousands) of general and administrative expenses, compared with 6,243 (U.S. dollars in thousands) in Q2 2025. The non-GAAP reconciliation included 4,258 (U.S. dollars in thousands) of stock-based compensation related to business combination in Q2 2026, compared with (920 ) (U.S. dollars in thousands) in Q2 2025. Financial income (expenses), net was 2,167 (U.S. dollars in thousands), compared with financial expenses of (1,250 ) (U.S. dollars in thousands), while taxes on income were 1,288 (U.S. dollars in thousands), compared with 5,396 (U.S. dollars in thousands).
Cash conversion was negative in the quarter and first half. Net cash provided by (used in) operating activities was (1,911 ) (U.S. dollars in thousands) in Q2 and (14,085 ) (U.S. dollars in thousands) for the six months ended June 30, 2026. The balance sheet showed cash and cash equivalents of $ 144,805 (U.S. dollars in thousands), inventories of 65,490 (U.S. dollars in thousands), and trade receivables, net of 107,656 (U.S. dollars in thousands) at June 30, 2026. Current maturities of long-term loan were $ 2,000 (U.S. dollars in thousands).
Management reiterated 2026 revenue guidance of between $500 to $520 million and Adjusted EBITDA guidance of between $61 to $66 million. Management also said the Comtech acquisition is progressing and is anticipated to close toward year-end, subject to regulatory approvals and customary closing conditions. The company identified first-half performance, recent awards, backlog, and pipeline as support for its outlook, while the timing and closing conditions of the acquisition remain a key reported execution item.
Management, verbatim
Gilat delivered another strong quarter, with revenues increasing 17% and Adjusted EBITDA increasing 31%. The combination of growth and margin expansion reflects solid execution across our Defense, Commercial, and Peru segments and the continued strength of our underlying business.
Adi Sfadia, CEO
The announced Comtech acquisition is progressing well and is the next major step in Gilat’s transformation into a scaled defense, space, and mission-critical communications technology company.
Adi Sfadia, CEO
Our first-half performance, recent awards, backlog, and strong pipeline support our full-year 2026 outlook and positions us well to fully capitalize on the Comtech acquisition.
Adi Sfadia, CEO
Not in the filing
stated, not guessed- Prior-quarter comparisons for revenue, segments, profitability, EPS, Adjusted EBITDA, and cash flow were not provided.
- Gross margin was not reported.
- Free cash flow was not reported.
- Capital returns, including share repurchases and dividends, were not reported.
- Total long-term debt was not reported.
- Segment profitability and segment revenue growth rates were not reported.
- Forward-looking GAAP guidance and a reconciliation of forward-looking GAAP to non-GAAP measures were not provided.
- Prior guidance was not provided.
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.