Q3 FY2026
Filed Nov 10, 2026Gilat Q3 2026 revenues of $116.2 million, non-GAAP operating income up 14%, and full-year 2026 guidance revised to revenues of $455 million to $475 million
Q3 revenues of $116,226 thousand were below the $117,691 thousand printed for Q3 2025, while GAAP operating income ($7,907 thousand vs $7,546 thousand) and non-GAAP operating income (up 14%) rose. Nine-month operating cash flow was negative at $(9,824) thousand. The company states it is revising full-year guidance, and the filing gives no prior range to compare against.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenues, Q3 2026GAAP | $116.2M | – | – |
| Cost of revenues, Q3 2026GAAP | $75.42M | – | – |
| Gross profit, Q3 2026GAAP | $40.80M | – | – |
| Gross profit, Q3 2026non-GAAP | $41.61M | – | – |
| Research and development expenses, net, Q3 2026GAAP | $9.94M | – | – |
| Selling and marketing expenses, Q3 2026GAAP | $10.07M | – | – |
| General and administrative expenses, Q3 2026GAAP | $9.64M | – | – |
| Other operating expenses (income), net, Q3 2026GAAP | $3.25M | – | – |
| Total operating expenses, Q3 2026GAAP | $32.90M | – | – |
| Operating expenses, Q3 2026non-GAAP | $27.01M | – | – |
| Operating income, Q3 2026GAAP | $7.91M | – | – |
| Non-GAAP operating income, Q3 2026non-GAAP | $14.60M | – | +14% |
| Financial income (expenses), net, Q3 2026GAAP | $1.89M | – | – |
| Income before taxes on income, Q3 2026GAAP | $9.80M | – | – |
| Taxes on income, Q3 2026GAAP | −$1.13M | – | – |
| Net income, Q3 2026GAAP | $8.67M | – | – |
| Non-GAAP net income, Q3 2026non-GAAP | $14.29M | – | +21% |
| Basic earnings per share, Q3 2026GAAP | $0.11 | – | – |
| Diluted earnings per share, Q3 2026GAAP | $0.11 | – | – |
| Diluted earnings per share, Q3 2026non-GAAP | $0.18 | – | – |
| Adjusted EBITDA, Q3 2026non-GAAP | $17.57M | – | +13% |
| Adjusted EBITDA margin, Q3 2026non-GAAP | 15% | – | – |
| Commercial segment revenues, Q3 2026GAAP | $69.75M | – | – |
| Defense segment revenues, Q3 2026GAAP | $36.90M | – | 53% |
| Peru segment revenues, Q3 2026GAAP | $9.57M | – | – |
| Revenues, nine months ended September 30, 2026GAAP | $349.4M | – | – |
| Gross profit, nine months ended September 30, 2026GAAP | $115.7M | – | – |
| Gross profit, nine months ended September 30, 2026non-GAAP | $119.8M | – | – |
| Research and development expenses, net, nine months ended September 30, 2026GAAP | $33.65M | – | – |
| Selling and marketing expenses, nine months ended September 30, 2026GAAP | $29.29M | – | – |
| General and administrative expenses, nine months ended September 30, 2026GAAP | $32.26M | – | – |
| Other operating expenses (income), net, nine months ended September 30, 2026GAAP | $3.53M | – | – |
| Total operating expenses, nine months ended September 30, 2026GAAP | $98.72M | – | – |
| Operating expenses, nine months ended September 30, 2026non-GAAP | $80.15M | – | – |
| Operating income, nine months ended September 30, 2026GAAP | $16.98M | – | – |
| Non-GAAP operating income, nine months ended September 30, 2026non-GAAP | $39.67M | – | – |
| Financial income (expenses), net, nine months ended September 30, 2026GAAP | $5.35M | – | – |
| Income before taxes on income, nine months ended September 30, 2026GAAP | $22.34M | – | – |
| Taxes on income, nine months ended September 30, 2026GAAP | −$290K | – | – |
| Net income, nine months ended September 30, 2026GAAP | $22.05M | – | – |
| Non-GAAP net income, nine months ended September 30, 2026non-GAAP | $43.52M | – | – |
| Diluted earnings per share, nine months ended September 30, 2026GAAP | $0.28 | – | – |
| Diluted earnings per share, nine months ended September 30, 2026non-GAAP | $0.55 | – | – |
| Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $48.10M | – | – |
| Net cash provided by (used in) operating activities, Q3 2026GAAP | $4.26M | – | – |
| Net cash provided by (used in) operating activities, nine months ended September 30, 2026GAAP | −$9.82M | – | – |
| Purchase of property, equipment and intangible assets, Q3 2026GAAP | −$1.68M | – | – |
| Purchase of property, equipment and intangible assets, nine months ended September 30, 2026GAAP | −$5.85M | – | – |
| Cash, cash equivalents and short-term deposits, September 30, 2026other | $260M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Commercial, Q3 2026The filing prints the segment figure. It gives no segment-specific explanation for the Q3 change. | $69.75M | – | – |
| Defense, Q3 2026The CEO describes the segment's momentum as continuing and credits the strategy of building Defense through acquisitions and investments. The release lists over $8 million in additional U.S. Department of War orders and over $32 million in multi-band DKET awards. | $36.90M | – | 53% |
| Peru, Q3 2026The CEO states that agreements reached later than anticipated shifted some expected revenue into 2027. The release also lists a $28 million Peru connectivity contract and a $14 million broadband agreement in Peru as recent announcements. | $9.57M | – | – |
| Commercial, nine months ended September 30, 2026The filing prints the nine-month segment figure, with the prior-year figure of $206,234 thousand listed in key_metrics. It gives no segment-specific explanation. | $225.5M | – | – |
| Defense, nine months ended September 30, 2026The filing prints the nine-month segment figure, with the prior-year figure of $67,094 thousand listed in key_metrics. The CEO cites the Defense strategy as the driver. | $84.79M | – | – |
| Peru, nine months ended September 30, 2026The filing prints the nine-month segment figure, with the prior-year figure of $41,370 thousand listed in key_metrics. The CEO links the Peru timing to agreements reached later than anticipated. | $39.05M | – | – |
Full-year 2026 outlook
- Revenue$455 million to $475 million
- NoteAdjusted EBITDA between $61 million and $63 million (non-GAAP)
- NoteThe company states it does not provide GAAP guidance because it cannot reasonably provide forward-looking guidance for certain items, such as earnout-based expenses related to recent acquisitions, and so gives no GAAP to non-GAAP reconciliation for forward figures
- NoteThe release says the company is revising its full-year 2026 guidance. The prior range is not printed in the documents.
Capital returns
- The filing reports no share repurchases or dividends for Q3 2026 or the nine months ended September 30, 2026.
- The company issued $100 million of five-year convertible notes at a 60% conversion premium during the quarter. The release states net proceeds of approximately $99 million. The cash flow statement prints 'Issuance of convertible note, net of issuance costs' of 99,002 thousand, with no prior-year amount.
What drove it
- The CEO attributes the Adjusted EBITDA margin expansion to cost and pricing discipline. He says the results were achieved despite weaker currency conditions and bad debt write-offs from Hughes Network Systems' Chapter 11 filing.
- The CEO cites several factors behind the revised revenue outlook: IFC terminal deliveries rescheduled while commercial terms are negotiated, LEO and GEO satellite development and launch delays (partly attributed to launch options scarcity), and Peru agreements reached later than anticipated.
- Defense revenues grew 53% year over year according to the CEO, and the release lists U.S. Department of War orders and DKET awards.
- The Comtech acquisition is expected to close by year-end, subject to closing conditions. The company expects it to more than double defense revenues in 2027.
- The release describes vertically integrated LEO providers gaining market share from GEO providers, which the CEO links to intensified competitive pressure.
Concerns
- Q3 revenues of $116,226 thousand were below the $117,691 thousand printed for Q3 2025. Commercial ($69,748 thousand vs $72,957 thousand) and Peru ($9,574 thousand vs $20,644 thousand) were both lower in the quarter.
- Full-year revenue guidance is now $455 million to $475 million, and the company says it is revising guidance. The CEO cites IFC delivery timing, satellite program delays and Peru timing as reasons.
- Nine-month operating cash flow was $(9,824) thousand, compared with $26,975 thousand printed for the prior-year nine months. Trade receivables rose to $115,269 thousand from $85,929 thousand at December 31, 2025, and inventories rose to $62,656 thousand from $45,430 thousand.
- Bad debt write-offs from Hughes Network Systems' Chapter 11 filing are cited by the CEO as a factor in the quarter.
- Operating income rose to $7,907 thousand, but financial income of $1,891 thousand and a tax benefit of $(1,131) thousand contributed to net income of $8,667 thousand. The filing does not state the operating drivers of the tax line.
What to watch
- Whether the Comtech acquisition closes by year-end and whether it lifts defense revenues in 2027 as the company expects.
- Timing of IFC terminal deliveries and the resolution of the commercial terms the company says are important to program profitability.
- Timing of LEO and GEO network equipment orders and launch schedules, which the CEO links to order timing.
- Peru revenue recognition after agreements reached later than anticipated, with some revenue shifted into 2027.
- Working capital and operating cash flow, given the nine-month operating cash outflow and the rise in receivables and inventories.
- Collection of receivables from Hughes Network Systems following its Chapter 11 filing.
- Use of the $100 million convertible notes and the conversion terms, given the $96,225 thousand long-term convertible note balance.
Balance sheet and cash flow
- Cash and cash equivalents: $260,299 thousand at September 30, 2026, compared with $168,907 thousand at December 31, 2025.
- Short-term deposits: none at September 30, 2026, compared with $16,433 thousand at December 31, 2025.
- Convertible note (long-term): $96,225 thousand at September 30, 2026, compared with none at December 31, 2025. Current maturities of long-term loan: $2,000 thousand at both dates.
- Total assets: $861,089 thousand at September 30, 2026, compared with $746,054 thousand at December 31, 2025.
- Total shareholders' equity: $554,854 thousand at September 30, 2026, compared with $500,278 thousand at December 31, 2025.
- Inventories: $62,656 thousand at September 30, 2026, compared with $45,430 thousand at December 31, 2025.
- Trade receivables, net: $115,269 thousand at September 30, 2026, compared with $85,929 thousand at December 31, 2025.
- Advances from customers and deferred revenues: $52,999 thousand at September 30, 2026, compared with $78,499 thousand at December 31, 2025.
- Acquisitions of subsidiary, net of cash acquired: $(10,000) thousand for the nine months ended September 30, 2026, compared with $(104,943) thousand for the nine months ended September 30, 2025.
- Net cash provided by financing activities: $99,048 thousand for the nine months ended September 30, 2026, and $99,002 thousand for Q3 2026, with the convertible note as the only financing line printed in 2026.
- Cash, cash equivalents and restricted cash at September 30, 2026 (cash flow statement): $260,347 thousand. The release states cash, cash equivalents and short-term deposits of $260 million, compared with $159 million at June 30, 2026.
Analysis
Gilat reported Q3 2026 revenues of $116,226 thousand, against $117,691 thousand in Q3 2025. Within the quarter, Defense revenues were $36,904 thousand, compared with $24,090 thousand, and the release states this was 53% growth year over year. Commercial revenues were $69,748 thousand, compared with $72,957 thousand, and Peru revenues were $9,574 thousand, compared with $20,644 thousand. For the nine months, Defense revenues were $84,794 thousand against $67,094 thousand, while Commercial was $225,519 thousand against $206,234 thousand and Peru was $39,050 thousand against $41,370 thousand. The mix therefore moved toward Defense, which the company presents as the core of its strategy.
Profitability was higher than revenue alone suggests. GAAP gross profit was $40,802 thousand against $34,731 thousand, and total GAAP operating expenses were $32,895 thousand against $27,185 thousand. GAAP operating income was $7,907 thousand against $7,546 thousand. Non-GAAP operating income was $14,601 thousand, up 14% as printed, and non-GAAP net income was $14,291 thousand, up 21% as printed. Adjusted EBITDA was $17,568 thousand, up 13%, and the release states the margin was 15% against 13%. Diluted GAAP EPS was $0.11 against $0.14, and non-GAAP diluted EPS was $0.18 against $0.19. The EPS figures are the reverse of the net income change, and the release does not explain the gap in share count terms, so the reader should note both lines as printed.
Cash flow and the balance sheet show a different picture. Nine-month operating cash flow was $(9,824) thousand against $26,975 thousand. Trade receivables rose to $115,269 thousand and inventories to $62,656 thousand from December 31, 2025. Cash, cash equivalents and short-term deposits were $260 million at September 30, 2026, against $159 million at June 30, 2026. The release attributes the step-up to net proceeds of approximately $99 million from the $100 million convertible notes issued in the quarter, and the balance sheet carries a $96,225 thousand long-term convertible note. Total assets were $861,089 thousand and shareholders' equity was $554,854 thousand. The filing reports no share repurchases or dividends.
The guidance was revised. Full-year 2026 revenues are now expected at $455 million to $475 million, and Adjusted EBITDA between $61 million and $63 million. The release does not print the previous range, so the direction of the revision cannot be read from the documents. The CEO links the revenue outlook to IFC terminal deliveries rescheduled while commercial terms are negotiated, satellite development and launch delays that moved network equipment orders, and Peru agreements reached later than anticipated. The release also says vertically integrated LEO providers are gaining share from GEO providers, which the CEO presents as a reason for the defense and acquisition strategy.
The main items to weigh are the revenue decline in the quarter, the nine-month operating cash outflow, the rise in receivables and inventories, the Hughes Chapter 11 write-offs, and the revised guidance. The main positives are the Defense growth, the operating income and non-GAAP profit increases, and the cash balance after the convertible note. The Comtech acquisition, expected to close by year-end, is the event that the company says would more than double defense revenues in 2027, and the release does not quantify its contribution to the current guidance.
Management, verbatim
Due to cost and pricing discipline, these results were achieved despite weaker currency conditions and bad debt write-offs resulting from Hughes Network Systems’ Chapter 11 filing.
Adi Sfadia, Chief Executive Officer
Our revised revenue outlook reflects several factors. In IFC, we rescheduled certain terminal deliveries while working through commercial terms that are important to program profitability.
Adi Sfadia, Chief Executive Officer
This quarter’s Defense results show that the strategy is working, as our Defense segment continued its strong momentum, with revenues growing 53% year over year.
Adi Sfadia, Chief Executive Officer
Not in the filing
stated, not guessed- Prior guidance for full-year 2026 is not printed, so the direction of the revision and any comparison with it cannot be made.
- Year-over-year percentage changes are not printed for total revenues, Commercial and Peru Q3 segment revenues, GAAP net income, GAAP and non-GAAP diluted EPS, cost of revenues, and most operating expense lines.
- Prior-quarter (June 30, 2026) figures are printed only for cash, cash equivalents and short-term deposits in the release text.
- Gross margin percentages are not printed in the documents.
- Free cash flow is not printed. Operating cash flow and capital expenditure are shown separately, and no free cash flow line is given.
- Operating expense, tax rate and gross margin guidance are not printed.
- Nine-month segment changes are not printed as percentages.
- Share price reaction and analyst consensus are not provided in the documents.
- Explanation for the change in the Q3 tax line beyond the printed figures is not provided.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.