Gilat Satellite Networks Q2 revenue rises 17% as Comtech deal advances
Gilat Satellite Networks reported second-quarter revenue of $122.7 million, up 17% year on year from $105 million in Q2 2025, as demand across its defence, commercial and Peru segments continued to accelerate. Adjusted EBITDA rose 31% to $15.4 million, compared with $11.8 million in the same period last year, with the company pointing to margin expansion alongside top-line growth.
GAAP operating income came in at $4.7 million, down from $5.7 million in Q2 2025, reflecting higher general and administrative costs partly attributable to integration activity. On a non-GAAP basis, operating income increased 35% to $12.6 million. Non-GAAP net income reached $15.6 million, or $0.20 per diluted share, compared with $12.0 million, or $0.21 per diluted share, a year earlier. The share count has expanded materially following equity issuance related to recent acquisitions.
Comtech acquisition and defence momentum
The most strategically significant disclosure in the release concerns the pending acquisition of Comtech's Satellite and Space Communications segment. Chief executive Adi Sfadia said the transaction is progressing as planned and is expected to close towards the end of 2026, subject to regulatory approval. Sfadia described the deal as "the next major step in Gilat's transformation into a scaled defense, space, and mission-critical communications technology company," projecting that the combined entity would generate more than $700 million in pro forma annual revenues and more than double Gilat's existing defence revenue base.
The quarter also produced a series of defence contract awards. Gilat received $11 million in orders from the US Department of the Army, $43 million of additional orders for its Sidewinder electronically steered antenna from an in-flight connectivity provider, and a multi-million dollar order for customised SATCOM terminals supporting European defence communications. The company also launched the Viper Ka ESA terminal for unmanned and autonomous platforms and presented its expanded tactical portfolio at Eurosatory 2026.
For the full year, management reiterated guidance of $500 to $520 million in revenue, implying approximately 13% growth at the midpoint, with adjusted EBITDA of $61 to $66 million, representing roughly 19% growth at the midpoint.
Market context and competitive landscape
Gilat operates in a satellite communications market undergoing significant structural change. The proliferation of low-Earth orbit constellations from SpaceX Starlink, Amazon Kuiper and others is reshaping both the commercial and defence connectivity markets, with multi-orbit capability increasingly a qualification requirement for large government tenders. Gilat's portfolio of electronically steered antennas and software-defined modems is positioned to address this transition, though it competes with a broad field that includes ViaSat, Hughes Network Systems (now part of EchoStar) and a growing tier of specialist ESA vendors.
The Comtech acquisition, if completed, would meaningfully extend Gilat's addressable market in the United States federal and allied-defence space, where incumbency and security certifications create durable moats. However, integration risk is non-trivial: Gilat's general and administrative costs jumped from $6.2 million to $12.2 million quarter on quarter, a signal that transaction-related expenses are already weighing on GAAP profitability.
On the regulatory side, a defence-focused satellite communications company with Israeli headquarters and US government customers operates at the intersection of ITAR export controls and the Committee on Foreign Investment in the United States review process. Neither the release nor management commentary addressed the specific regulatory pathway for the Comtech closing, which investors will likely probe during the earnings call.