GILT Gilat Satellite Networks Ltd.

Gilat Reports Second Quarter 2025 Results

Gilat Reports Second Quarter 2025 Results

Revenues Increased by 37%; GAAP Operating Income of $5.7 Million; Adjusted EBITDA of $11.8 Million

Raises Midpoint of 2025 Revenue and EBITDA Guidance

PETAH TIKVA, Israel, Aug. 06, 2025 (GLOBE NEWSWIRE) -- Gilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT), a worldwide leader in satellite networking technology, solutions and services, today reported its results for the second quarter, ended June 30, 2025.

Second Quarter 2025 Financial Highlights

  • Revenues of $105 million, up 37% compared with $76.6 million in Q2 2024;
  • GAAP operating income of $5.7 million, compared with GAAP operating income of $2.8 million in Q2 2024;
  • Non-GAAP operating income of $9.3 million, compared with $7.3 million in Q2 2024;
  • GAAP net income of $9.8 million, or $0.17 per diluted share, compared with GAAP net income of $1.3 million, or $0.02 per diluted share, in Q2 2024;
  • Non-GAAP net income of $12 million, or $0.21 per diluted share, compared with $5.6 million, or $0.10 per diluted share, in Q2 2024;
  • Adjusted EBITDA of $11.8 million, compared with $10.1 million in Q2 2024, which includes a loss of about $1.5 million from Gilat Stellar Blu’s ramp up process. Adjusted EBITDA, excluding such loss, was $13.3 million.

Forward-Looking Expectations

On the strength of our results year-to-date, improved visibility and business momentum, management now expects revenue for 2025 between $435 million and $455 million, representing a higher revenue growth rate of approximately 46% at the midpoint. Previously management had expected revenue for 2025 between $415 million and $455 million, for a 42% growth rate at the midpoint.

Adjusted EBITDA for 2025 is now expected to be between $50 million and $53 million for a higher growth rate of approximately 22% at the midpoint, compared to the previous guidance for EBITDA to be between $47 million and $53 million.

Management Commentary

Adi Sfadia, Gilat's CEO, commented: "Gilat’s second quarter results were strong, demonstrating momentum across our growth engines and successful execution of our growth strategy. Gilat Defense is extending its reach by leveraging top-line synergies between Gilat and DataPath and offering a broader range of solutions to defense customers in the U.S. and among its allies. With a unified structure enabling faster response to customers’ mission needs and innovation across our portfolio, we are well-positioned to meet growing global demand driven by geopolitical tension and shifting budget priorities in favor of satellite communications."

Mr. Sfadia added, "Our Commercial Division achieved a milestone quarter, driven by strong bookings, strategic wins, and accelerating adoption of our next-generation SkyEdge IV platform. The industry’s shift toward virtualized, cloud-native networks marks a significant advancement in satellite communications infrastructure and elevates Gilat’s positioning with higher value and improved margins, providing the option to sell through a PaaS model. Stellar Blu continued to ramp up production, deliver Sidewinder ESA terminals to customers in commercial and business aviation markets, and build its backlog of orders. Currently, there are approximately 225 aircraft flying with the Gilat antenna, demonstrating excellent results and throughput. Gilat Peru also achieved an outstanding quarter, highlighted by new orders from Pronatel.”

Mr. Sfadia concluded, “These achievements and advancements strengthen our leadership in multi-orbit ground solutions and the emerging IFC market. We remain strategically positioned to accelerate revenue growth as we capture the expanding opportunities in mission-critical defense communications and next-generation satellite solutions.”

Key Recent Announcements

  • Gilat Awarded Over $8 Million from Israel’s Ministry of Defense for Strategic Defense Communication Solutions
  • Gilat Awarded Approximately $60 Million to Provide Digital Inclusion Solutions in Peru
  • Gilat Awarded More Than $7 Million to Provide the U.S. Army With Services in Support of Mission-Critical Communications
  • Gilat Awarded Over $22 Million in Orders from Tier One Satellite Operators
  • Gilat Secures $27 Million for Gilat’s Stellar Blu Portfolio
  • Gilat Signs a $40 Million Contract for Virtualized SkyEdge IV Platform
  • Gilat Receives Over $25 Million in Orders for its Multi-Orbit Satellite Solutions

Conference Call Details

Gilat’s management will discuss its second quarter 2025 results and business achievements and participate in a question-and-answer session:

Date: Wednesday, August 6, 2025

Start: 09:30 AM EST / 16:30 IST

A simultaneous webcast of the conference call will be available through this link:

Or Dial-in: US: 1-888-407-2553

International:

The webcast will also be archived for a period of 30 days on the Company’s website and through the link above.

Non-GAAP Measures

The attached unaudited summary consolidated financial statements were prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). To supplement the summary consolidated financial statements presented in accordance with GAAP, the Company presents non-GAAP measurements of gross profit, operating expenses, operating income, income before taxes on income, net income, Adjusted EBITDA, and earnings per share. The adjustments to the Company’s GAAP results are made with the intent of providing both management and investors with a more complete understanding of the Company’s underlying operational results, trends, and performance. Non-GAAP financial measures mainly exclude, if and when applicable, the effect of stock-based compensation, amortization of purchased intangibles, lease incentive amortization, other non-recurring expenses, other integration expenses, other operating expenses (income), net, and income tax effect on the relevant adjustments.

Adjusted EBITDA is presented to compare the Company’s performance to that of prior periods and evaluate the Company’s financial and operating results on a consistent basis from period to period. The Company also believes this measure, when viewed in combination with the Company’s financial results prepared in accordance with GAAP, provides useful information to investors to evaluate ongoing operating results and trends. Adjusted EBITDA, however, should not be considered as an alternative to operating income or net income for the period and may not be indicative of the historic operating results of the Company; nor is it meant to be predictive of potential future results. Adjusted EBITDA is not a measure of financial performance under GAAP and may not be comparable to other similarly titled measures for other companies. Reconciliation between the Company's net income and adjusted EBITDA is presented in the attached summary consolidated financial statements.

Non-GAAP presentations of gross profit, operating expenses, operating income, income before taxes on income, net income, adjusted EBITDA and earnings per share should not be considered in isolation or as a substitute for any of the consolidated statements of operations prepared in accordance with GAAP, or as an indication of Gilat’s operating performance or liquidity.

About Gilat

Gilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT) is a leading global provider of satellite-based broadband communications. With over 35 years of experience, we create and deliver deep technology solutions for satellite, ground and new space connectivity and provide comprehensive, secure end-to-end solutions and services for mission-critical operations, powered by our innovative technology. We believe in the right of all people to be connected and are united in our resolution to provide communication solutions to all reaches of the world.

Our portfolio includes a diverse offering to deliver high value solutions for multiple orbit constellations with very high throughput satellites (VHTS) and software defined satellites (SDS). Our offering is comprised of a cloud-based platform and high-performance satellite terminals; high performance Satellite On-the-Move (SOTM) antennas; highly efficient, high-power Solid State Power Amplifiers (SSPA) and Block Upconverters (BUC) and includes integrated ground systems for commercial and defense, field services, network management software, and cybersecurity services.

Gilat’s comprehensive offering supports multiple applications with a full portfolio of products and tailored solutions to address key applications including broadband access, mobility, cellular backhaul, enterprise, defense, aerospace, broadcast, government, and critical infrastructure clients all while meeting the most stringent service level requirements. For more information, please visit:

Certain statements made herein that are not historical are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. The words “estimate”, “project”, “intend”, “expect”, “believe” and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties. Many factors could cause the actual results, performance or achievements of Gilat to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in general economic and business conditions, inability to maintain market acceptance to Gilat’s products, inability to timely develop and introduce new technologies, products and applications, rapid changes in the market for Gilat’s products, loss of market share and pressure on prices resulting from competition, introduction of competing products by other companies, inability to manage growth and expansion, loss of key OEM partners, inability to attract and retain qualified personnel, inability to protect the Company’s proprietary technology and risks associated with Gilat’s international operations and its location in Israel, including those related to the hostilities between Israel and Hamas. For additional information regarding these and other risks and uncertainties associated with Gilat’s business, reference is made to Gilat’s reports filed from time to time with the Securities and Exchange Commission. We undertake no obligation to update or revise any forward-looking statements for any reason.

Contact:

Gilat Satellite Networks

Hagay Katz, Chief Products and Marketing Officer

Alliance Advisors



Phone:





GILAT SATELLITE NETWORKS LTD.
CONSOLIDATED STATEMENTS OF INCOME
U.S. dollars in thousands (except share and per share data)



 Six months ended

 Three months ended

 June 30,

 June 30,

  2025   2024   2025   2024 
 Unaudited Unaudited
        
Revenues$197,007  $152,709  $104,970  $76,631 
Cost of revenues 136,682   98,082   73,043   50,058 
        
Gross profit 60,325   54,627   31,927   26,573 
        
Research and development expenses, net 23,930   18,547   12,309   9,228 
Selling and marketing expenses 16,467   14,109   8,265   7,032 
General and administrative expenses 13,027   14,514   6,243   6,437 
Other operating expenses (income), net 3,964   (725)  (574)  1,085 
        
Total operating expenses  57,388   46,445   26,243   23,782 
Operating income  2,937   8,182   5,684   2,791 
        
Financial income (expenses), net (2,186)  779   (1,250)  266 
        
Income before taxes on income 751   8,961   4,434   3,057 
        
Taxes on income 3,083   (2,695)  5,396   (1,755)
        
Net income$ 3,834  $ 6,266  $ 9,830  $ 1,302 
        
Earnings per share (basic and diluted)$ 0.07  $ 0.11  $ 0.17  $ 0.02 
        
Weighted average number of shares used in        
computing earnings per share 

       
 Basic

 57,081,120   57,016,808   57,124,568   57,017,032 
 Diluted

 57,189,406   57,016,808   57,341,141   57,017,032 
        





GILAT SATELLITE NETWORKS LTD.
RECONCILIATION BETWEEN GAAP AND NON-GAAP CONSOLIDATED STATEMENTS OF INCOME
FOR COMPARATIVE PURPOSES
U.S. dollars in thousands (except share and per share data)



 Three months ended Three months ended
 June 30, 2025 June 30, 2024
 GAAP Adjustments (*) Non-GAAP GAAP Adjustments (*) Non-GAAP
 Unaudited Unaudited
            
Gross profit$31,927  2,557  $34,484 $26,573  1,617  $28,190
Operating expenses 26,243  (1,043)  25,200  23,782  (2,914)  20,868
Operating income 5,684  3,600   9,284  2,791  4,531   7,322
Income before taxes on income 4,434  3,600   8,034  3,057  4,531   7,588
Net income$ 9,830  2,131  $ 11,961 $ 1,302  4,253  $ 5,555
            
Earnings per share (basic and diluted)$ 0.17 $0.04  $ 0.21 $ 0.02 $0.08  $ 0.10
            
            
Weighted average number of shares used in           
computing earnings per share           
Basic 57,124,568    57,124,568  57,017,032    57,017,032
Diluted 57,341,141    58,041,043  57,017,032    57,017,032
            
            
(*) Adjustments reflect the effect of stock-based compensation as per ASC 718, amortization of purchased intangibles, other operating expenses (income), net,
   other non-recurring expenses, other integration expenses and income tax effect on such adjustments which is calculated using the relevant effective tax rate.
            
 Three months ended Three months ended 
 June 30, 2025   June 30, 2024 
   Unaudited     Unaudited  
            
GAAP net income  $9,830      $1,302   
            
Gross profit           
Stock-based compensation expenses   228       150   
Amortization of purchased intangibles   2,302       920   
Other non-recurring expenses   -       466   
Other integration expenses   27       81   
    2,557       1,617   
Operating expenses           
Stock-based compensation expenses   1,084       705   
Stock-based compensation related to business combination   (920)      842   
Amortization of purchased intangibles   1,269       267   
Other operating expenses (income), net   (574)      1,085   
Other integration expenses   184       15   
    1,043       2,914   
            
Taxes on income   (1,469)      (278)  
            
Non-GAAP net income  $11,961      $5,555   
            





GILAT SATELLITE NETWORKS LTD.
RECONCILIATION BETWEEN GAAP AND NON-GAAP CONSOLIDATED STATEMENTS OF INCOME
FOR COMPARATIVE PURPOSES
U.S. dollars in thousands (except share and per share data)  
 Six months ended Six months ended
 June 30, 2025 June 30, 2024
 GAAP Adjustments (*) Non-GAAP GAAP Adjustments (*) Non-GAAP
 Unaudited Unaudited
            
Gross profit$60,325  3,368  $63,693  $54,627  2,343  $56,970
Operating expenses 57,388  (8,132)  49,256   46,445  (3,413)  43,032
Operating income 2,937  11,500   14,437   8,182  5,756   13,938
Income before taxes on income 751  11,500   12,251   8,961  5,756   14,717
Net income 3,834  9,954   13,788   6,266  5,303   11,569
            
Earnings per share (basic and diluted)$ 0.07 $0.17  $ 0.24  $ 0.11 $0.09  $ 0.20
            
            
Weighted average number of shares used in           
computing earnings per share           
Basic 57,081,120    57,081,120   57,016,808    57,016,808
Diluted 57,189,406    58,023,137   57,016,808    57,062,883
            
            
(*) Adjustments reflect the effect of stock-based compensation as per ASC 718, amortization of purchased intangibles, other operating expenses (income), net,
   other non-recurring expenses, other integration expenses and income tax effect on such adjustments which is calculated using the relevant effective tax rate.
            
            
            
 Six months ended Six months ended
 June 30, 2025 June 30, 2024
   Unaudited     Unaudited  
            
GAAP net income  $3,834      $6,266   
            
Gross profit           
Stock-based compensation expenses   402       300   
Amortization of purchased intangibles   2,902       1,427   
Other non-recurring expenses   -       466   
Other integration expenses   64       150   
    3,368       2,343   
Operating expenses           
Stock-based compensation expenses   1,984       1,422   
Stock-based compensation related to business combination   (313)      2,166   
Amortization of purchased intangibles   2,153       524   
Other operating expenses (income), net   3,964       (725)  
Other integration expenses   344       26   
    8,132       3,413   
            
Taxes on income   (1,546)      (453)  
            
Non-GAAP net income  $13,788      $11,569   
            





GILAT SATELLITE NETWORKS LTD.
SUPPLEMENTAL INFORMATION
U.S. dollars in thousands
        
        
ADJUSTED EBITDA:       
        
  Six months ended

  Three months ended

  June 30,

  June 30,

  2025   2024   2025   2024 
 Unaudited Unaudited
        
GAAP net income$3,834  $6,266  $9,830  $1,302 
Adjustments:       
Financial expenses (income), net 2,186   (779)  1,250   (266)
Taxes on income (3,083)  2,695   (5,396)  1,755 
Stock-based compensation expenses 2,386   1,722   1,312   855 
Stock-based compensation related to business combination (313)  2,166   (920)  842 
Depreciation and amortization (*) 10,046   7,443   6,084   3,963 
Other operating expenses (income), net 3,964   (725)  (574)  1,085 
Other non-recurring expenses -   466   -   466 
Other integration expenses 408   176   211   96 
        
Adjusted EBITDA$19,428  $19,430  $11,797  $10,098 
        
(*) Including amortization of lease incentive       
        
SEGMENT REVENUES:       
        
  Six months ended

  Three months ended

  June 30,

  June 30,

  2025   2024   2025   2024 
 Unaudited Unaudited
        
Commercial$133,277  $84,593  $69,057  $43,400 
Defense 43,004   37,404   19,993   20,174 
Peru 20,726   30,712   15,920   13,057 
        
Total revenues$ 197,007  $ 152,709  $ 104,970  $ 76,631 
        





GILAT SATELLITE NETWORKS LTD.   
CONSOLIDATED BALANCE SHEETS   
U.S. dollars in thousands   
    
 June 30, December 31,
  2025   2024 
 Unaudited Audited
    
ASSETS   
    
CURRENT ASSETS:   
Cash and cash equivalents$64,929  $119,384 
Restricted cash 474   853 
Trade receivables, net 53,162   49,600 
Contract assets 8,603   24,941 
Inventories 48,737   38,890 
Other current assets 45,498   21,963 
    
Total current assets 221,403   255,631 
    
LONG-TERM ASSETS:   
Restricted cash 14   12 
Long-term contract assets 7,890   8,146 
Severance pay funds 6,544   5,966 
Deferred taxes 16,129   11,896 
Operating lease right-of-use assets 5,980   6,556 
Other long-term assets 18,043   5,288 
    
Total long-term assets 54,600   37,864 
    
PROPERTY AND EQUIPMENT, NET 70,480   70,834 
    
INTANGIBLE ASSETS, NET 61,689   12,925 
    
GOODWILL 167,706   52,494 
    
TOTAL ASSETS$575,878  $429,748 
    
GILAT SATELLITE NETWORKS LTD.
CONSOLIDATED BALANCE SHEETS (Cont.)
U.S. dollars in thousands
    
 June 30, December 31,
  2025   2024 
 Unaudited Audited
    
LIABILITIES AND SHAREHOLDERS' EQUITY   
    
CURRENT LIABILITIES:   
Current maturities of long-term loan$3,375  $- 
Trade payables 18,541   17,107 
Accrued expenses 46,295   45,368 
Advances from customers and deferred revenues 57,464   18,587 
Operating lease liabilities 2,919   2,557 
Other current liabilities 18,621   17,817 
    
Total current liabilities 147,215   101,436 
    
LONG-TERM LIABILITIES:   
Long-term loans 56,497   2,000 
Accrued severance pay 7,179   6,677 
Long-term advances from customers and deferred revenues 25   580 
Operating lease liabilities 3,229   4,014 
Other long-term liabilities 45,971   10,606 
    
Total long-term liabilities 112,901   23,877 
    
SHAREHOLDERS' EQUITY:   
Share capital - ordinary shares of NIS 0.2 par value 2,743   2,733 
Additional paid-in capital 947,500   943,294 
Accumulated other comprehensive loss (2,843)  (6,120)
Accumulated deficit (631,638)  (635,472)
    
Total shareholders' equity 315,762   304,435 
    
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$575,878  $429,748 
    





GILAT SATELLITE NETWORKS LTD.       
CONSOLIDATED STATEMENTS OF CASH FLOWS       
U.S. dollars in thousands       
        
  Six months ended

  Three months ended

  June 30,

  June 30,

  2025   2024   2025   2024 
 Unaudited Unaudited
Cash flows from operating activities:       
Net income $3,834  $6,266  $9,830  $1,302 
Adjustments required to reconcile net income        
to net cash provided by (used in) operating activities:       
Depreciation and amortization 9,942   7,333   6,037   3,908 
Stock-based compensation expenses 2,073   3,888   392   1,697 
Accrued severance pay, net (76)  60   (54)  115 
Deferred taxes, net (4,233)  1,724   (6,217)  1,273 
Increase in trade receivables, net (9,234)  (17,734)  (13,762)  (8,937)
Decrease (increase) in contract assets 16,552   2,982   24,350   (3,266)
Decrease (increase) in other assets and other adjustments (including short-term, long-term and effect of exchange rate changes on cash, cash equivalents and restricted cash) 11,754   5,512   (6,636)  2,005 
Decrease in inventories 96   974   11,552   4,167 
Increase (decrease) in trade payables (14,690)  3,579   (6,862)  4,245 
Decrease in accrued expenses (4,587)  (2,229)  1,771   (989)
Decrease in advances from customers and deferred revenues (15,426)  (9,486)  (14,330)  (6,732)
Increase (decrease) in other liabilities 2,526   (2,177)  (928)  (2,316)
Net cash provided by (used in) operating activities (1,469)  692   5,143   (3,528)
        
Cash flows from investing activities:       
Purchase of property, equipment and intangible assets (4,256)  (2,650)  (2,766)  (1,857)
Investment in other asset (3,500)  -   (1,000)  - 
Acquisitions of subsidiary, net of cash acquired (104,943)  -   -   - 
Net cash used in investing activities (112,699)  (2,650)  (3,766)  (1,857)
        
Cash flows from financing activities:       
Repayment of credit facility, net -   (7,453)  -   (4,709)
Repayment of short-term debts -   (1,340)  -   (1,340)
Proceeds from short-term debts -   1,469   -   1,469 
Proceeds from long-term loan, net of associated costs 58,970   -   -   - 
Repayment of long-term loan (750)  -   (750)  - 
Net cash provided by (used in) financing activities 58,220   (7,324)  (750)  (4,580)
        
Effect of exchange rate changes on cash, cash equivalents and restricted cash 1,116   (718)  524   (450)
        
Increase (decrease) in cash, cash equivalents and restricted cash (54,832)  (10,000)  1,151   (10,415)
        
Cash, cash equivalents and restricted cash at the beginning of the period 120,249   104,751   64,266   105,166 
        
Cash, cash equivalents and restricted cash at the end of the period$ 65,417  $ 94,751  $ 65,417  $ 94,751 
        


EN
06/08/2025

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