GILAT SATELLITE NETWORKS (GILT)·Q4 2025 Earnings Summary
Gilat Surges 75% YoY on IFC Momentum, Stock Drops 10% After Hours on Margin Concerns
February 10, 2026 · by Fintool AI Agent
Gilat Satellite Networks (NASDAQ: GILT) delivered explosive Q4 2025 results with revenue soaring 75% YoY to $137.0M, beating consensus by 2.6%, fueled by In-Flight Connectivity (IFC) expansion and accelerated Peru deployments . Despite the top-line beat and strong 2026 guidance, shares fell ~10% after hours to $17.28 as investors digested lower GAAP net income (-25% YoY) and elevated DSO (88 days vs 73 days a year ago) .
Did Gilat Beat Earnings?
Yes, convincingly on revenue. Gilat reported Q4 2025 revenue of $137.0M versus consensus of ~$133.6M, a 2.6% beat . The 75% YoY growth (from $78.1M in Q4 2024) marks the strongest quarterly performance in recent memory.
The divergence between strong Adjusted EBITDA (+50% YoY) and weaker GAAP net income (-25% YoY) reflects higher interest expenses following $166M in capital raises during 2025 and non-cash items .
What Drove the Revenue Surge?
All three segments delivered strong growth, with Commercial and Peru standing out:
Commercial ($75.1M, +103% YoY)
The IFC momentum story continues. Key highlights:
- $42M in SkyEdge IV orders primarily for In-Flight Connectivity applications
- Won two new SkyEdge IV customers in the Asia-Pacific region
- $11M order from leading Asia-Pacific satellite operator for VHTS services
- $16M+ in Wavestream SSPA orders for LEO constellation operators
- $7M AeroStream BUC order for next-gen commercial aircraft IFC
- 420+ aircraft online with Gilat's ESA terminal, 1M+ passengers served weekly
Defense ($33.3M, +13% YoY)
A record year for Gilat Defense with new market entry:
- First Earth Observation order (~$10M) for direct downlink over transportable platforms
- Record year for transportable bookings
- Continued traction with Israeli Ministry of Defense for advanced SATCOM solutions
Peru ($28.5M, +142% YoY)
Accelerated deployment drove outsized growth:
- Fast deployment on $85M contracts to expand broadband to 1,000+ public institutions
- Now operating all six regional projects
- Exporting Peru's digital inclusion expertise to new global markets
Ask Fintool AI AgentWhat Did Management Guide for 2026?
Gilat provided a constructive 2026 outlook:
Segment Guidance:
The guidance implies:
- Commercial continues as the growth engine, driven by IFC expansion and SE IV network buildout
- Defense accelerates with new global market opportunities and Multi-Orbit Antenna products
- Peru normalizes as construction phase completes and recurring revenue takes over
How Did the Stock React?
Despite the revenue beat and solid guidance, GILT dropped ~10% after hours to $17.28 from a close of $19.27.
Why the selloff?
- GAAP net income down 25% YoY despite 75% revenue growth
- DSO jumped to 88 days from 73 days a year ago (ex-Peru construction)
- Cash from operations turned negative at -$6.3M vs +$16.3M in Q4 2024
- Stock had run up 160% over the past year — high expectations were priced in
The stock remains up significantly over the past year:
- 1-Year Return: +160% ($7.41 → $19.27)
- 6-Month Return: +115%
- 52-Week Range: $5.47 - $19.97
What Changed From Last Quarter?
Positives:
- Revenue growth accelerated (Q3: +58% YoY → Q4: +75% YoY)
- Commercial segment inflected to +103% YoY from +70% in Q3
- 2026 guidance introduced at solid growth rates
Concerns:
- Gross margin pressure: 29.5% in Q3 vs 39.7% in Q4 2024
- Working capital deterioration: DSO up 15 days YoY
- Cash from operations swung negative despite strong revenue
Balance Sheet Highlights
Gilat strengthened its balance sheet through capital raises:
- December 2025: $100M capital raise from leading Israeli institutional investors
- September 2025: $66M capital raise from leading Israeli institutional investors
Ask Fintool AI AgentQ&A Highlights
Defense Visibility
Ryan Koontz (Needham): Asked about defense budget uncertainty.
CEO Adi Sfadia: "When we are entering a year, we have between 50%-60% of the revenues are already in backlog from the guidance. So we have a relatively good visibility... We don't see any effect of the recent shutdown in the U.S. administration. We see increased budget and a lot of traction both in the U.S., in Israel, and in Europe."
The defense segment saw >35% YoY growth in order bookings despite revenue only growing 14%—delays from the previous U.S. administration shutdown pushed order recognition into 2026 .
LineFit Progress
Boeing LineFit certification expected first half 2026, with deliveries starting Q3. Airbus LineFit remains in "initial phases" and likely extends into 2027 .
Stellar Blu Milestone Miss
Louie DiPalma (William Blair): Asked about the $120M airline backlog milestone.
CEO: "No, they didn't attain the airline milestone. They achieved slightly above half of it, a very large order that we are expecting to get slipped into 2026."
However, management emphasized that risks are mitigated: "More than 420 aircraft are connected and more than 500 [terminals] delivered in 2025. So we know for a fact that the risks that we wanted to mitigate are mitigated."
- Stellar Blu 2025 revenue: ~$127M (within $120-150M guidance)
- Q4 deliveries: 190 full terminals (record quarter)
- Production rate: 60-70 units/month achieved
M&A Strategy
Louie DiPalma: Asked about M&A priorities following the capital raise.
CEO: "Our main focus is on the defense... We are targeting companies in Europe. There is a lot of business, a lot of budget, especially because of the Russia-Ukraine war... Our main focus is to bring businesses, not to buy technology. It could be with revenues of $50 million and above or maybe $100 million and above. It should be accretive as soon as possible."
Also exploring adjacent markets: radar solutions, electronic warfare capabilities .
ESR 2030 Terminal
Passed qualifications for Gogo's ESR 2030 terminal. Production deliveries expected 2H 2026 .
Ask Fintool AI AgentForward Catalysts
Near-term:
- Continued IFC terminal deployments with airlines (60-70 units/month capacity)
- Boeing LineFit certification (1H 2026) and deliveries (Q3 2026)
- Large airline order expected Q1-Q2 2026 (slipped from Q4 2025)
- Defense order flow from new territories and Earth Observation market
- Peru: Upgrading remaining 2 regional networks before Q2 election
2026 Strategic Focus :
- Winning large ESA Terminal opportunities for IFC
- Expanding SkyEdge IV global IFC network
- New defense products: DKETs, modems, Multi-Orbit Antenna
- Expanding into new global defense markets
- Defense-focused M&A in Europe and U.S.
Key Takeaways
- Strong beat on revenue (+2.6% vs consensus, +75% YoY) driven by IFC and Peru
- Commercial segment doubled on SkyEdge IV momentum and new Asia-Pacific wins
- Defense reached record year with >35% order growth despite 14% revenue growth (timing delays)
- 2026 guidance solid at +13% revenue, +19% EBITDA growth
- Stock fell 10% after hours on margin concerns and working capital deterioration
- Cash position strong at $183.4M after $166M in capital raises
- Stellar Blu ramping: 500+ terminals delivered in 2025, 420+ aircraft online, 1M+ passengers served weekly
- Milestone miss: Stellar Blu achieved ~half of $120M airline backlog target, but large order expected Q1-Q2 2026
View full Q4 2025 earnings presentation