Gilat shares fall 17.6% premarket after quarterly revenue misses analyst consensus
Key Facts
Gilat shares fell 17.6% in premarket trading on November 10 after the company reported third-quarter revenue of $116.2 million, about $10 million below Wall Street’s consensus of $126.54 million, according to Investing.com. Results released the same day showed revenue declined from $117.7 million in the corresponding period of 2025. The stock came under pressure despite the company reporting adjusted earnings per share above estimates, according to Investing.com coverage. Before the announcement, shares closed at $7.58 on November 9, a level from the previous session that does not reflect post-results trading. The revenue miss and lower annual outlook focused investors on the timing of contracts and deliveries, as well as the company’s ability to turn growth in some segments into revenue in coming periods.
Gilat reported U.S. GAAP net income of $8.7 million, or $0.11 per diluted share, compared with net income of $8.1 million in the third quarter of 2025. Non-GAAP net income was $14.3 million, or $0.18 per diluted share. Adjusted EBITDA also rose 13% to $17.6 million, from $15.6 million a year earlier. The adjusted EBITDA margin widened to 15% from 13% in the year-earlier quarter. Revenue, meanwhile, declined year over year, highlighting the gap between improved operating profitability and weaker sales.
The company said its defense segment continued to gain momentum, with revenue rising 53% year over year in the quarter. The CEO said the results were achieved despite currency weakness and a bad-debt write-off related to Hughes Network Systems’ Chapter 11 bankruptcy filing. In Peru, Gilat said agreements reached later than expected shifted some anticipated revenue to 2027. The rescheduling of some in-flight connectivity terminal deliveries also delayed revenue expected in earlier periods. The company said delays in the development and launch of low-Earth-orbit (LEO) and geostationary-orbit (GEO) satellites, some linked to limited launch options, pushed the timing of certain network equipment orders further out.
Gilat cut its 2026 revenue outlook to a range of $455 million to $475 million and forecast adjusted EBITDA of $61 million to $63 million. The company said delivery delays and the timing of orders and agreements shifted some expected revenue to later periods, including 2027. This shift makes execution of the delayed orders more important to achieving the new guidance range. The results, as part of the published guidance, did not provide a separate estimate of revenue shifted to each period. The company scheduled its results call for November 10 at 09:30 a.m. Eastern time.
On liquidity, cash, cash equivalents and short-term deposits totaled $260 million on September 30, compared with $159 million on June 30. The balance included net proceeds of about $99 million from convertible notes worth $100 million that the company issued during the quarter. In a broader view of the market, the CEO said competition is increasing as vertically integrated low-Earth-orbit satellite service providers gain market share from traditional geostationary satellite providers. Gilat had announced plans to acquire Comtech’s satellite communications business and said the targeted business generated adjusted revenue of $187.8 million and adjusted EBITDA of $14.9 million in its fiscal 2025 year ended July 31, 2025. This places the Comtech deal in the context of a reshaping of the company’s portfolio, while the deal is targeted to close before year-end, according to the coverage angle.