What Ka-band constellations will the Viper Ka support, and what are its major applications for UAVs?

It will support all Ka constellations (GEO, Telesat LEO, mPOWER Ka, Amazon). It can be installed on small to medium UAVs for relevant applications. “So generally speaking, it's going to support all the Ka constellation from GEO satellites through Telesat LEO and mPOWER Ka. It can be installed on several types of, and also Amazon, by the way, it can be installed in several types of UAVs and support all the relevant applications that those UAVs are required to do.”

Update on Stellar Blu milestone payments, specifically regarding Line-fit or strategic partnerships. What was Stellar Blu's revenue/growth?

The last milestone (signing a strategic agreement by June 2026) was not met, so Gilat is free from earn-out obligations, having paid $98 million for the acquisition. Q2 was a record quarter for terminal deliveries (>200 units), with a book-to-revenue ratio >1 for terminals. Stellar Blu revenue is integrated into Commercial segment. “The last milestone of Stellar Blu was to sign a strategic agreement. The milestone was until June 2026. We didn't meet, although we signed an important agreement during the quarter with the Airbus, it didn't met the qualification in the agreement to meet the earn-out requirement. So basically, we paid $99 million for the Stellar Blu, $98 million for the Stellar Blu acquisition. And now we are free from earn-out obligations and working on cost reductions and large deployment with our customers.”

Is the Defense segment still on track for about 40% growth in H2 over H1, and are other segments tracking similarly?

Yes, the forecast for Defense is based on firm backlog and delivery schedules, expecting a much higher H2 compared to H1. Commercial segment was better than expected in Q2, driven by hardware shipments (Sidewinder and hubs). “Yes. So our forecast is based on firm backlog and delivery schedule and pipeline and the forecast for the Defense is as we presented, and we definitely see a much higher H2 in the Defense compared to H1. And this is, again, aligned with the backlog and expected book-to- ships in the second half of the year.”

GILT

Gilat (GILT) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Information Technology· Aug 5, 2026

Source: earnings call transcript

Executive summary

Gilat Q2 FY26 — Strong Revenue Growth and Strategic Acquisition

Gilat delivered a strong second quarter, driven by robust revenue growth across all segments and significant adjusted EBITDA expansion. The company advanced its strategic initiatives, including a definitive agreement to acquire Comtech's Satellite and Space Communications segment, which is set to bolster its Defense capabilities. Despite some margin pressure from deal mix and increased operating expenses due to FX, Gilat reiterated its full-year guidance, supported by a healthy backlog and pipeline, particularly in its Defense and In-Flight Connectivity growth engines.

Highlights

Q2 FY26 revenue reached $122.7 million, representing 17% year-over-year growth.
Adjusted EBITDA grew 31% year-over-year to $15.4 million in Q2 FY26, with margin expanding to 12.6%.
Signed definitive agreement to acquire most of Comtech's Satellite and Space Communications segment, expected to more than double Gilat Defense revenues.
Received $43 million in orders for Sidewinder ESA terminals from a leading IFC service provider, with deliveries expected in Q4 this year.
Defense segment received $11 million in orders from the U.S. Department of War and a multimillion-dollar order from a European Ministry of Defense.

Concerns

GAAP operating income decreased to $4.7 million in Q2 FY26 from $5.7 million in Q2 FY25, primarily due to an earn-out provision related to the DataPath acquisition.
Non-GAAP gross margin decreased to 32% in Q2 FY26 from 33% in Q2 FY25, mainly due to a less favorable deal mix in Defense and Peru.
Used approximately $1.9 million in operating cash in Q2 FY26, primarily reflecting working capital timing.
Did not meet the earn-out requirement for the Stellar Blu acquisition by June 2026, despite signing an agreement with Airbus.

Guidance & targets

Category	Target	Timeline	Confidence
Revenue	$500 million to $520 million high materiality	FY26	High
Adjusted EBITDA	$61 million to $66 million high materiality	FY26	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Commercial Growth primarily driven by revenues from the In-Flight Connectivity vertical. Primary driver: In-Flight Connectivity vertical	$83 million	20%	—	—
Defense Higher than $20 million in the same quarter last year, reflecting continued momentum.	$22.5 million	12%	—	—
Peru Higher than $15.9 million in Q2 '25, with solid operational progress across social inclusion programs.	$17.2 million	8%	—	—

Orderbook & backlog

Orders from U.S. Department of War $11 million Q2 FY26

To supply SATCOM terminals and field services.

Orders from European Ministry of Defense Multimillion dollar Q2 FY26

To supply SATCOM terminals designed for unique operational requirements.

Orders for SkyEdge platforms and services >$20 million Q2 FY26

From a leading global satellite operator.

Orders for Sidewinder ESA terminals $43 million Q2 FY26

From a leading IFC service provider, for deliveries for both Line-fit and retrofit. Deliveries expected in Q4 this year.

Product announcements

Product	Type	Timeline	Details
Viper Ka ESA terminal	launch	Introduced during Eurosatory (Q2 FY26)

Deals & partnerships

Comtech Acquisition of most of Comtech's Satellite and Space Communications segment.

The acquired business is expected to have a revenue mix of 70%-80% Defense and 20%-30% Commercial, and includes 6 different business units.

Airbus Initiated process for Line-fit availability of Sidewinder ESA terminal with Airbus.

This agreement did not meet the earn-out qualification for Stellar Blu.

Risks & headwinds

Unfavorable movements in Israeli shekel vs. U.S. dollar H2 FY26

Expected to increase operating expenses by $3 million to $5 million in H2 FY26.

Mitigation:Management is maintaining full-year outlook despite this.

Uncertainty for customers working with a company under Chapter 11 (referring to Hughes) Ongoing

Not quantified, but creates "opportunity to penetrate" for Gilat.

Mitigation:Gilat sees this as an opportunity to gain market share.

GAAP operating income decrease Q2 FY26

Decreased to $4.7 million in Q2 FY26 from $5.7 million in Q2 FY25.

Mitigation:Primarily attributed to an earn-out provision related to the DataPath acquisition.

Non-GAAP gross margin decrease Q2 FY26

Decreased to 32% in Q2 FY26 from 33% in Q2 FY25.

Mitigation:Primarily attributed to a less favorable deal mix in Defense and Peru, partially offset by improved margins in Commercial.

What to watch in Q3 FY26

Comtech acquisition closing

Towards the end of the year (2026)

Current Definitive agreement signed, pending regulatory approvals.

Target Closed

Why it matters

This acquisition is expected to more than double Gilat Defense revenues and significantly expand its market position.

The closing of the transaction is expected towards the end of the year and is subject to several regulatory approvals such as HSR and CFIUS and other customary closing conditions.

Find out whether GILT delivers this. Inve re-checks your case every morning.

Q&A highlights

How does Hughes' bankruptcy affect Gilat, given they are a competitor, customer, and have a small debt to Gilat?

Hughes is a competitor and customer. Gilat has a small, insignificant debt from them, which Hughes intends to pay. Gilat sees opportunities to penetrate customers who may be uncertain about working with a Chapter 11 company, especially for long-term development and service needs.

“I suspect that some of the customers will have uncertainty to work with a company under Chapter 11, especially customers that require long-term development efforts and long-term service needs. And over there, we see opportunity to penetrate.”

asked by Louie Dipalma · answered by Adi Sfadia

2 min read 6 chapters

Detailed narrative

Comtech Acquisition

Gilat signed a definitive agreement to acquire most of Comtech's Satellite and Space Communications segment. This transaction is expected to expand Gilat's position in mission-critical Defense and Satellite Communications, strengthen its U.S. presence, broaden its technology portfolio, and more than double Gilat Defense revenues. The closing is expected towards the end of the year, subject to regulatory approvals (HSR, CFIUS) and customary conditions.

Defense Business Momentum

The Defense segment continues to gain momentum with increasing global demand for mission-critical SATCOM solutions, particularly in dynamic mobile and contested environments. Recent conflicts highlight the need for resilient and deployable SATCOM capabilities, aligning well with Gilat's portfolio. The company received significant orders from the U.S. Department of War ($11 million) and a European Ministry of Defense for SATCOM terminals.

Commercial Business Progress

The Commercial business showed strong progress, especially with SkyEdge platforms and the IFC portfolio. Satellite operators are moving towards flexible, scalable, multi-orbit architectures, which Gilat supports with its ground segment expertise and PSA portfolio. The company received over $20 million in orders for SkyEdge platforms and $43 million for Sidewinder ESA terminals from a leading IFC service provider.

Sidewinder ESA Terminal Development

The Sidewinder ESA terminal is progressing towards large-scale deployment. Deliveries for Line-fit and retrofit are expected in Q4 this year. Boeing Line-fit program and certification activities are advancing, and efforts have begun for Airbus line-fit availability, with an initial order received. This expands the long-term opportunity for Sidewinder in Commercial aviation.

Peru Business Execution

The Peru business continues to execute well, completing work in the first three regions of its infrastructure upgrade program and moving to the operational phase. The company is advancing discussions on significant project expansions and pursuing additional large-scale opportunities for social inclusion and nationwide connectivity. The majority of Peru revenues are now recurring from long-term service contracts.

Working Capital and Liquidity

The company used $1.9 million in operating cash due to working capital timing, primarily reflecting increased inventory to support expected higher deliveries in H2 FY26. Gilat ended the quarter with a strong liquidity position of $159 million in cash, cash equivalents, restricted cash, and short-term deposits.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.