Gilat Satellite Networks Ltd.

First-quarter 2026 revenue was $110.5 million, up 20% from $92 million in Q1 2025. GAAP gross margin was 34% versus 31% a year ago, GAAP operating income was $4.4 million versus a $2.7 million loss, and GAAP net income was $5.2 million or $0.07 diluted EPS versus a $6 million net loss or $(0.11) diluted EPS. Non-GAAP gross margin was 36% versus 32%, non-GAAP operating income was $12.5 million versus $5.2 million, and non-GAAP net income was $13.6 million or $0.18 diluted EPS versus $1.8 million or $0.03 last year. Adjusted EBITDA was $15.1 million, and the company ended the quarter with $171 million of liquidity. For full-year 2026, Gilat reiterated revenue guidance of $500 million to $520 million and adjusted EBITDA guidance of $61 million to $66 million.

Adi Sfadia framed the quarter as a strong start to the year, emphasizing solid execution, stronger profitability, and momentum across defense and commercial markets. He highlighted technology investments in software-defined gateways, virtualized SATCOM, and 5G NTN, saying these efforts are aligning with next-generation satellite and hybrid networks. His tone was confident and upbeat, especially around defense mobility demand, Sidewinder adoption, and a healthy backlog and pipeline supporting the full-year outlook.

Gil Benyamini emphasized that the quarter showed 20% revenue growth, margin expansion, and a significant increase in profitability across all three segments. He cited the segment mix, with commercial revenue at $72.8 million, defense at $25.4 million, and Peru at $12.3 million, and pointed to GAAP gross margin of 34% and non-GAAP gross margin of 36% as evidence of better mix and improved Stellar Blu margins. He also noted $12.2 million of operating cash usage due mainly to working capital timing, $171 million of liquidity at quarter end, and shareholders’ equity of $536 million, while reiterating the 2026 revenue and adjusted EBITDA targets.

Analysts focused on Stellar Blu margins and timing for Boeing and Airbus line-fit certifications, and management said Stellar Blu is now profitable, with gross margin improving from supply-chain changes and better margins expected once line-fit deliveries begin. Adi said Boeing first units are expected in Q4 2026, while Airbus certification is expected to finish early in 2027 with first units shipped in the second half of 2027. Questions also centered on defense order timing, 5G NTN demand, and Peru revenue seasonality; management said defense bookings can take six to nine months to convert to revenue, 5G NTN is still several years from full deployment, and Peru should see higher revenue in the second half of 2026 but remains volatile.