Sign in

You're signed outSign in or to get full access.

GS

GILAT SATELLITE NETWORKS (GILT)·Q3 2025 Earnings Summary

Gilat Satellite Networks Q3 2025 Earnings

Q3 2025 Earnings Scorecard

Executive Summary

Gilat Satellite Networks (GILT) delivered a blowout Q3 2025, crushing estimates with 58% revenue growth and nearly doubling EPS expectations. The company raised full-year guidance for both revenue and EBITDA, signaling continued momentum across all three business segments.

Key Highlights:

  • Revenue beat by $4.5M (+4.0% vs consensus)
  • Non-GAAP EPS of $0.19 beat consensus of $0.10 by 90%
  • Stock rallied 7.2% on earnings day
  • Raised 2025 revenue guidance midpoint by $5M to $450M
  • Cash position surged to $155M (up from $5.5M in Q2) following $66M private placement

Financial Results

MetricQ3 2025Q3 2024YoY Change
Revenue$117.7M$74.6M+58%
GAAP Gross Margin30%37%-7 pp
GAAP Operating Income$7.5M$6.7M+12%
Non-GAAP Operating Income$12.8M$8.3M+54%
Adjusted EBITDA$15.6M$10.7M+46%
GAAP Net Income$8.1M$6.8M+19%
GAAP EPS$0.14$0.12+17%
Non-GAAP EPS$0.19$0.14+36%
Cash from Operations$28.4M$14.7M+93%

Values from earnings call transcript

Beat/Miss History

PeriodRevenueEst.SurpriseEPSEst.SurpriseStock Reaction
Q3 2025$117.7M$113.2M+4.0%$0.19$0.10+90.0%+7.2%
Q2 2025$105.0M$101.0M+4.0%$0.21$0.04+425%+24.5%
Q1 2025$92.0M$100.2M-8.2%$0.03$0.07-57%-10.3%
Q4 2024$78.1M$82.7M-5.5%$0.15$0.13+15%-1.5%
Q3 2024$74.6M$76.8M-2.8%$0.14$0.09+56%+1.1%
Q2 2024$76.6M$74.2M+3.2%----4.7%

Revenue and EPS data from S&P Global

Stock Performance

The stock has risen 131% from its 52-week low of $5.30 to current levels around $12.27. The Q2 and Q3 2025 earnings beats triggered the strongest post-earnings rallies (+24.5% and +7.2% respectively).

MetricValue
Current Price$12.27
52-Week High$15.24
52-Week Low$5.30
Market Cap$704M
50-Day Avg$12.95
200-Day Avg$8.96

Segment Performance

Segment Revenue Breakdown

Commercial ($73.0M, +116% YoY)

The star performer. Commercial revenue more than doubled, driven by Stellar Blu in-flight connectivity (IFC) business acquired in January 2025.

  • Stellar Blu contributed ~$30M in revenue
  • 350+ Sidewinder ESA terminals deployed on aircraft
  • 300,000+ commercial flight hours logged
  • $60M order received for Stellar Blu Sidewinder terminals
  • $42M in SkyEdge IV orders from global satellite operator

"Production is ramping up, and we expect increased deliveries with improved margins in the coming quarters." — Adi Sfadia, CEO

Defense ($24.1M, -22% YoY)

Revenue declined as the division transitions from mature programs to new initiatives.

  • $14M+ in DKET terminal orders from U.S. Army and DoD
  • New multi-million dollar contract with Israeli Ministry of Defense
  • Increased investment in sales, marketing, and R&D for future growth

"We are well positioned to capture additional opportunities as global demand for secure satellite communication continues to rise." — Adi Sfadia, CEO

Peru ($20.6M, +110% YoY)

Peru more than doubled revenue driven by Pronatel network expansion projects.

  • $85M in new Pronatel awards during Q3
  • Expanding connectivity to schools, health centers, police stations
  • Project execution progressing on schedule
  • Additional RFPs expected in coming quarters

Guidance

Management raised 2025 guidance on improved visibility and business momentum:

MetricPreviousNewChange
Revenue$435-455M$445-455M+$5M midpoint
YoY Growth~46%~47%+1 pp
Adj. EBITDA$50-53M$51-53M+$0.5M midpoint
YoY Growth~22%~23%+1 pp

Q&A Highlights

Stellar Blu Margins

Margins are improving but remain below target. Management expects significant margin improvement in 2026 with line-fit orders and cost reduction efforts bearing fruit.

"Stellar Blu was slightly losing. We expect them to be profitable starting Q4... next year we'll see even a higher reduction in costs." — Adi Sfadia, CEO

Production Capacity

Currently delivering 70-80 Sidewinder units per month, targeting ~100 units per month next year.

Earnout Milestones

  • First earnout (production targets): Not achieved due to supply chain issues
  • Second earnout ($120-140M in new orders): In advanced negotiation for large order; "decent chance" to achieve by mid-December
  • Third earnout (strategic deals): No strategic deals closed yet; still in initial discussions

Gross Margin Outlook

CFO expects mid-30s gross margins in 2026 as Stellar Blu scales and backlog amortization rolls off.

Government Shutdown Impact

Seeing delayed orders due to government shutdown but no cancellations expected. Minor timing impact on 2026 quarterly revenue distribution.

Historical Financials

MetricQ4 2023Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025Q3 2025
Revenue ($M)$75.6$76.1$76.6$74.6$78.1$92.0$105.0$117.7
EBITDA ($M)-$1.5$8.8$6.7$10.0$9.6$3.4$9.5$13.9
Net Income ($M)$3.4$5.0$1.3$6.8$11.8-$6.0$9.8$8.1
Gross Margin38.2%36.9%34.7%37.1%39.7%30.9%30.4%29.5%
Cash ($M)$104.0$104.1$93.7$109.6$119.4$63.8$64.9$154.5

Values retrieved from S&P Global

Management Tone Evolution

Q1 2025: Cautious optimism; acknowledged tariff risks and Stellar Blu integration challenges; defended guidance.

Q2 2025: Growing confidence; raised guidance; highlighted momentum across divisions; Stellar Blu losses narrowing.

Q3 2025: Bullish; further raised guidance; emphasized "competitive edge" and "sustained profitable growth"; strong language on market positioning.

"Gilat is well positioned for sustained profitable growth and continued leadership in the global satcom market." — Adi Sfadia, CEO

Key Takeaways

  1. IFC is the growth engine: Stellar Blu/IFC driving Commercial segment to 116% YoY growth
  2. Margin pressure temporary: Stellar Blu ramp-up dragging gross margins; expected to normalize in 2026
  3. Strong cash position: $66M private placement provides runway for growth investments
  4. Defense timing: Transition period but robust pipeline; expect growth resumption
  5. Peru optionality: Digital inclusion expertise expanding globally; $85M in new orders validates strategy
  6. Valuation disconnect: Trading at value multiples despite 47% revenue growth; analyst sees upside to $17.89

Links