Gilat Satellite Networks

Refresh delta (since 2026-06-20)

1. Q2 2026 results. Revenue $122.7M against $105.0M in Q2 2025 (+17%); gross profit $37.3M against $31.9M; GAAP operating income $4.7M against $5.7M; non-GAAP operating income $12.6M against $9.3M (+35%); GAAP net income $8.1M ($0.10 per diluted share) against $9.8M ($0.17); non-GAAP net income $15.6M ($0.20) against $12.0M ($0.21); Adjusted EBITDA $15.4M against $11.8M (+31%) [6-K Q2, quarter ended 2026-06-30]. G&A rose to $12.2M from $6.2M [6-K Q2].
2. Segments, Q2 2026 against Q2 2025: Commercial $83.0M ($69.1M), Defense $22.5M ($20.0M), Peru $17.2M ($15.9M) [6-K Q2]. Six months: Commercial $155.8M ($133.3M), Defense $47.9M ($43.0M), Peru $29.5M ($20.7M); total $233.1M ($197.0M) [6-K Q2].
3. Guidance reiterated: 2026 revenue $500M to $520M and Adjusted EBITDA $61M to $66M, the same range the prior dossier records as given in February [6-K Q2, Forward-Looking Expectations].
4. Cash flow and working capital. Operating cash flow was −$14.1M in the first half (H1 2025: −$1.5M) and −$1.9M in Q2 (Q2 2025: +$5.1M). Trade receivables $107.7M against $85.9M at 2025-12-31; inventories $65.5M against $45.4M; advances from customers and deferred revenue (current) $50.2M against $78.5M [6-K Q2, cash-flow statement and balance sheet, as of 2026-06-30].
5. Balance sheet, 2026-06-30. Cash and equivalents $144.8M, short-term deposits $14.4M, restricted cash $0.1M, total $159.2M, against $185.4M at 2025-12-31. Debt: current maturities of the loan $2.0M. Goodwill $169.5M, unchanged from 2025-12-31. Other long-term liabilities $1.1M against $19.6M [6-K Q2, balance sheet].
6. $100M convertible notes, sold in a private placement (deed of trust dated 2026-08-30). Senior unsecured, 3.75% a year, interest payable each 1 September from 2027-09-01, maturing 2031-09-01, initial conversion price $16 per ordinary share; the rate steps up by 1.25 points if the share price has not averaged at least $15.00 over a 30-day window ending 18 months after issue. Stated use: general corporate purposes, with a focus on next-generation satellite and space technology, mobility, ground and defense capability [6-K notes, 2026-09-08]. The closing date is not stated in the text read. The notes were issued after the 2026-06-30 balance sheet.
7. Comtech Satellite & Space acquisition. The Q2 release says it is "progressing well", is expected to close "toward year-end, subject to regulatory approvals and customary closing conditions", and would create a company with more than $700M of pro forma annual revenue and more than double Gilat Defense revenue [6-K Q2, CEO commentary]. The prior seed's catalyst reads "Comtech S&S acquisition close, when: by end-2026".
8. Orders announced since 2026-06-20 (press releases furnished on 6-K, values as stated by Gilat): Sidewinder ESA, $43M, in-flight connectivity provider, 18 months of deliveries (2026-06-29); US Department of War, $11M, DataPath field services and custom terminals (2026-07-07); SkyEdge, over $20M, satellite operator, mostly within 24 months (2026-07-15); Peru, $14M, Ayacucho fibre project (2026-08-17); US Department of War, over $32M, DKET systems, 12 months (2026-09-09); Peru, $28M, Ica region, construction to mid-2027 then a seven-year operating phase (2026-10-05); SkyEdge IV, over $10M, satellite operator, 12 months (2026-10-07); US Department of War, over $8M, field services and upgrades (2026-10-08). Each is a 6-K filed on its date under CIK 897322 (index: https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000897322&type=6-K).
9. Annual General Meeting, 2026-09-08. All proposals were adopted, including setting the board at seven, re-electing five directors, authorised share capital of NIS 30,000,000 (150,000,000 ordinary shares of NIS 0.2), amendments to the Articles and to the executive compensation policy [sec.gov: 6-K 2026-09-08, https://www.sec.gov/Archives/edgar/data/897322/000117891326004438/zk2636088.htm]. A revised compensation policy was filed on 2026-08-31.
10. Next print: Q3 2026 results are scheduled for 2026-11-10 [sec.gov: 6-K 2026-10-15, https://www.sec.gov/Archives/edgar/data/897322/000117891326004773/zk2636229.htm].

What held

• Margin inflection continues at the adjusted level: Adjusted EBITDA +31% on revenue +17% (fact 1). GAAP operating income was lower than a year ago, so the GAAP and non-GAAP pictures still differ.
• The prior dossier's cash-conversion concern is visible again: first-half operating cash flow is negative with receivables and inventory up (fact 4).
• Defense stayed about a fifth of revenue (fact 2); the prior dossier's point that the defense step-up depends on Comtech stands as a fact, with the close still pending (fact 7).
• Peru kept growing and keeps adding awards (facts 2 and 8).