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Aviat Networks Investor Presentation Fiscal Q4 2026 August 27, 2026
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The information contained in this Presentation includes forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including Aviat's beliefs and expectations regarding outlook, business conditions, new product solutions, customer positioning, future orders, bookings, new contracts, cost structure, profitability in fiscal 2027, its recent acquisitions and acquisition strategy, process improvements, measures designed to improve internal controls, its ability to maintain effective internal control over financial reporting and management systems and remediate material weaknesses, plans and objectives of management, realignment plans and review of strategic alternatives and expectations regarding future revenue, gross margin, Adjusted EBITDA, operating income or earnings or loss per share. All statements, trend analyses and other information contained herein regarding the foregoing beliefs and expectations, as well as about the markets for the services and products of Aviat and trends in revenue, and other statements identified by the use of forward-looking terminology, including "anticipate," "believe," "plan," "estimate," "expect," "goal," "will," "see," "continue," "delivering," "view," and "intend," or the negative of these terms or other similar expressions, constitute forward-looking statements. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, forward-looking statements are based on estimates reflecting the current beliefs, expectations and assumptions of the senior management of Aviat regarding the future of its business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Such forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Forward-looking statements should therefore be considered in light of various important factors, including those set forth in this document. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements include the following: the disruption the 4RF and NEC transactions may cause to customers, vendors, business partners and our ongoing business; our ability to integrate the operations of the acquired 4RF and NEC businesses with our existing operations and fully realize the expected synergies of the 4RF and NEC transactions on the expected timeline; disruptions relating to the ongoing conflict between Russia and Ukraine and the conflict in Israel and surrounding areas; continued price and margin erosion in the microwave transmission industry; the impact of the volume, timing, and customer, product, and geographic mix of our product orders; our ability to meet financial covenant requirements; the timing of our receipt of payment; our ability to meet product development dates or anticipated cost reductions of products; our suppliers' inability to perform and deliver on time, component shortages, or other supply chain constraints; the effects of inflation; customer acceptance of new products; the ability of our subcontractors to timely perform; weakness in the global economy affecting customer spending; retention of our key personnel; our ability to manage and maintain key customer relationships; uncertain economic conditions in the telecommunications sector combined with operator and supplier consolidation; our failure to protect our intellectual property rights or defend against intellectual property infringement claims; the results of our restructuring efforts; the effects of currency and interest rate risks; the ability to preserve and use our net operating loss carryforwards; the effects of current and future government regulations; general economic conditions, including uncertainty regarding the timing, pace and extent of an economic recovery in the United States and other countries where we conduct business; the conduct of unethical business practices in developing countries; the impact of political turmoil in countries where we have significant business; our ability to realize the anticipated benefits of any proposed or recent acquisitions; the impact of tariffs, the adoption of trade restrictions affecting our products or suppliers, a United States withdrawal from or significant renegotiation of trade agreements, the occurrence of trade wars, the closing of border crossings, and other changes in trade regulations or relationships; our ability to implement our stock repurchase program or that it will enhance long-term stockholder value; and the impact of adverse developments affecting the financial services industry, including events or concerns involving liquidity, defaults or non-performance by financial institutions. For more information regarding the risks and uncertainties for Aviat's business, see "Risk Factors" in Aviat's Form 10-K for the fiscal year ended July 3, 2026 filed with the U.S. Securities and Exchange Commission ("SEC") on August 27, 2026, as well as other reports filed by Aviat with the SEC from time to time. Aviat undertakes no obligation to update publicly any forward-looking statement, whether written or oral, for any reason, except as required by law, even as new information becomes available or other events occur in the future. Forward-Looking Statements AVIATNETWORKS
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AVIATNETWORKS Aviat Networks is the leading wireless transport and access solutions provider NASDAQ Listed: AVNW Headquartered in Austin, TX 3,000+ Customers Worldwide Global Manufacturing Capabilities Leading Technologies – 200+ Patents 3 Company Overview AviatCloud LTE Wireless Transport Access Routers Software Services End-to-End Portfolio North America 50% MEA 13% Europe 10% LATAM & APAC 27%Private Networks 59% Mobile Networks 41% Revenue by Region Revenue by Market Revenue Summary Points of Excellence Lowest Total Cost of Ownership Mission Critical Solutions Leader Unrivaled Microwave Expertise Innovative Products and Services LTM Revenue: $440 Million
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AVIAT NETWORKS 4 A Long History of Wireless Leadership Invigorated by New Leadership and Consistent Execution Over 75 Years of Expertise 1944 Aviat Networks can trace its wireless beginnings back to Lenkurt Electric 2007 Harris Stratex Networks forms as the result of the merger between Harris MCD and Stratex Networks 2010 Harris Stratex rebrands as Aviat Networks 2020 New management leadership brings the company renewed customer focus and disciplined operating model 2022 Aviat Networks completes the acquisition of Redline Communications, adding access solutions to its portfolio 2023 Aviat Networks completes the acquisition of the NEC microwave business (Pasolink) Microwave Division 2024 Aviat Networks completes the acquisition of 4RF, adding industrial SCADA and cellular router offerings to its access portfolio
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AVIAT NETWORKS Investment Opportunity 5 Global Investment in Mission Critical, 5G, and Rural Broadband Networks Underpin Strong and Growing Demand Environment $11 billion TAM serving private networks, mobile service providers, and rural broadband network operators around the world End-to-end portfolio including mission-critical access products and routers, best-in-class microwave radios, and innovative software solutions Relied on by customers globally to help design, plan, install, test, and operate their communication networks Consistent topline growth and profitability; 10% revenue CAGR since calendar 2019 Aviat Operating Model drives continuous improvement, operating leverage, and successful acquisitions Attractive Global Markets Unique Product Offering Leading Expertise Strong Financials & Balance Sheet Disciplined Business Operator
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AVIAT NETWORKS Aviat’s Competitive Advantage vs. Microwave Specialists vs. Wireless Generalists Products ✓ Modular radio platform ✓ End-to-end offering of radios, multi- band, routers, access ✓ Better RF performance • Highly leveraged in chipsets • Difficult to create new product variants quickly • Unable to invest in routing and other products • Microwave not focus • Less responsive and agile to bringing radio solutions to market Software & Services ✓ Turnkey services portfolio (design, planning, install) ✓ Software innovations to ease network operations and total cost of ownership (AviatCloud, Assurance software) • Product focus and lack of software investment • Lack of experience and services make competing in private networks difficult • Lack focus on dedicated software solutions for transport networks Supply Chain ✓ Core competence – fast deliveries and disruptive go-to-market like the Aviat Store • Lack modularity limits supply chain flexibility • Unable to create new business models or react to Aviat innovations • Microwave supply chain not a priority vs. RAN • Cannot react to Aviat innovations 6 Aviat Provides More Innovation and Better Value Than Our Competitors Why Aviat Wins
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AVIAT NETWORKS Wireless Transport and Access Markets Overview 7 Aviat Differentiation Aligned with Private Networks, 5G and Rural Broadband WIRELESS ACCESS Growth Markets STATE & LOCAL GOV’T UTILITY PUBLIC SAFETY 4G/5G MOBILE WIRELESS TRANSPORT Core Markets INDUSTRIAL LICENSED/ UNLICENSED PTP/PTMP INDUSTRIAL LICENSED PRIVATE LTE/5G FIBERRADIO ACCESS / CELLULAR Other applications » INDUSTRIAL MICROWAVE Aviat Differentiation Best in Class Wireless Transport Products Unique Software and Services Disruptive Supply Chain and Ecommerce HIGH FREQUENCY TRADING SCHOOL/ ENTERPRISE OIL/GAS/ OFFSHORE TRANSPORTATION ISP/WISPMINING AVIAT EQUIPMENT WISP
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AVIAT NETWORKS Aviat Product Portfolio 8 Portfolio Focused on Lowering Total Cost of Ownership ProVision Plus Network/Element Management Simplifies network management Easy trouble shooting with multi -layer visualization Health Assurance (HAS) Detailed reports on network issues Reduces downtime Frequency Assurance (FAS) Monitors and reports Interference Protects against WiFi -6E Wireless Transport Wireless Access Indoor Radio IRU600, TRP, Eclipse • Ultra-High Tx Power, +37dBm • Compact/expandable antenna branching • Tough, Durable and Dependable • Comprehensive native TDM features • Strong Security (FIPS) EclipseMarkets: Utilities, Public Safety, Oil & Gas, Mining, Transportation IRU 600 EHP/UHP Split-Mount Systems iPasolink VR • 6 to 38GHz freq. band • Sub-band free ODU options • Modular and scalable indoor units • Standard and High-Power Outdoor Units • No single point of failure options Markets: Mobile Service Providers, Utilities, Public Safety, Oil & Gas, Mining, Transportation VR10VR4 VR2 IAG3 IAP3 All-Outdoor Systems WTM 4000, EX/A, EX/AD • Single, Dual Channel or Multi-Band • Full IP/ MPLS Capabilities • Unique Multi-Band extended distance and vendor agnostic options • 25GbE connectivity MB-XD, MB-VA Markets: Mobile Service Providers, WISPs, Utilities, Public Safety, Oil & Gas, Mining, Transportation Microwave E-Band WTM 4000 iX/A WTM 4800 EX/A, EX/AD MB-1 Multi- Band Trunking Systems STR 4500, OBC2, 7000iP TRP • Split Mount, All-Indoor, and All-Outdoor Trunking Systems • Up to 20 channels with diversity • 10Gbps connectivity • Flexible aggregation options Markets: Mobile Service Providers, Utilities, Public Safety, Oil & Gas, Mining, Transportation OBC2 7000iP TRP STR 4500 Aviat Design Aviat Store myOrders Aviat Care Aviat Educate myNetwork Private LTE/5G RDL 6000, Aprisa LTE/5G, Aviat Core • Base station, LTE/5G routers and EPC Core • Power of a Macro in Small Cell footprint • Lower power consumption • Scalable EPC • Ruggedized, secure cellular routers Markets: Utilities, Public Safety, Oil & Gas, Mining, Transportation Microwave Routers CTR8000 Series CTR 8780 CTR 8540 Markets: Mobile Service Providers, WISPs, Utilities, Public Safety, Oil & Gas, Mining, Transportation Industrial Access Narrowband PTP, PTMP and Nomadic Solutions • PTP, PTMP licensed and unlicensed • UHF, VHF, 220MHz - 5.8GHz • Hardened and secure • Innovative nomadic, self align offering • ATEX/Hazloc Aviat Core LTE/5G EPC RDL6000 Aprisa LTE Aprisa XE, SRi, SR+ RAS Elite/Extend/LVF RDL3000 Markets: Utilities, Public Safety, Oil & Gas, Mining, Transportation
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AVIAT NETWORKS Aviat’s Multi-Dwelling Unit (MDU) Opportunity 9 MDU Business Ramping in Fiscal 2027 • Utilization of high-capacity millimeter-wave 28 and 39 GHz spectrum to deliver multi-Gigabit 5G-based services to MDUs • Fast and cost-effective alternative to fiber over distances of 5 miles and more with fiber-like performance, with no impact to existing mobile network services • Multi-User MIMO and Hybrid Massive Beamforming supports aggregate capacities of over 22 Gbps from a single base station • Aviat will provide product (hardware and software) solutions along with a comprehensive set of design, planning, deployment and support services via Aviat’s extensive presence in North America
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AVIAT NETWORKS Aviat’s Compelling Cellular Router Solution for Public Safety, Industrial Vehicles 10 Compelling New Growth Opportunity for Aviat; Aviat Has a Strong Economic Value Proposition for our Customers • LTE 5G Cellular Routers represent a market of $1.6B, growing at 12% CAGR – The largest portion of this market is the mobility (vehicle) segment – This is a new segment for Aviat which was not previously addressable • Key elements of the Aviat Value Proposition include: – Comprehensive LTE/5G router portfolio, including unique VRF Protect capability for enhanced security – Flexible software designed for mobility, deployed in cloud or on premise – Commercial models to fit state/local government and utilities – Strong sales channel into private networks – Local USA support and manufacturing
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AVIAT NETWORKS Aprisa Router Deployment and Demos Gaining Traction 11 Significant Customer Engagements and Demos Underway Including in Mexico During the World Cup , Solution Included LEO Satellite Integration
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AVIAT NETWORKS How Aviat Lowers Total Cost of Ownership 12 1. Reduced Tower Footprint What: Lower power consumption, faster installation, smaller antennas, reduced tower loading, lower lease costs How: Fewer boxes, high system gain, Multi-Band 2. Capacity Scalability What: Less congestion, fewer truck rolls, less hardware How: Multi-Band, A2C+, on-demand capacity upgrades 3. Integrated Routing What: Reduced or zero indoor footprint, fewer boxes, simplified operations, lower power consumption How: All-Outdoor at the edge, CTR/WTM integrated IP/MPLS 4. Spectrum Fee Savings What: Reduced recurring spectrum fees How: Moving capacity from Microwave to E-Band and Multi-Band 5. Higher Network Reliability What: Better performance, increased resilience, fewer outages, faster fault-finding/restoration, lower OPEX How: High MTBF, High Availability Routing, Aviat Assurance Software (HAS, FAS) 6. Simplified Logistics What: Easy online design and ordering, fast delivery, Reduced inventory and warehouse costs How: Aviat Design, Aviat Store, regional stock, on- demand capacity and license upgrades
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AVIAT NETWORKS Microwave is a Crucial Backhaul Technology 13 Microwave Fiber Speed to Deploy High Reliability Low Latency Terrain Flexibility Capacity Cost Per Link Per Foot Microwave / Millimeter Wave Fiber Satellite Copper Microwave Backhaul is Essential in Communication Networks Globally Wireless transport accounts for 60% of cellular transport links Source: Dell ‘Oro; Excludes North East Asia Microwave is ideally suited for mission- critical private networks, rural broadband, and challenging deployment environments Service providers rely on microwave in their networks to provide cost-effective and reliable bandwidth
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AVIAT NETWORKS • Upgrade cycle in public safety, utilities and other private networks driven by increasing bandwidth needs • Private LTE / 5G market to be $8B by 2027 • Aviat’s end-to-end product and services allow for increasing share of wallet capture and competitive advantage • Early stages of global 5G upgrade cycle; mobile network data traffic expected to grow at 26% CAGR through 2028 • Wireless transport makes up 60% of cellular transport links • Microwave radio market for global 5G transport market expect to grow at a 16% CAGR through CY2028 • Over $70 billion in U.S. government funding programs to build out rural broadband networks • Microwave is a compelling solution for operators to lower total cost of ownership and increase speed to deploy • Aviat’s unique e-commerce platform allows for direct to network operator channel Aviat’s Market Opportunities 14 Aviat Networks is Capturing Additional Market Share Because of Its Innovative Portfolio and Focus on Lowest Total Cost of Ownership Private Networks Mobile Networks & 5G Rural Broadband
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AVIAT NETWORKS Public Safety and Security Oil & Gas Water Electric Utilities National / Regional Government Enterprise Private Network Summary 15 • Growth in Private LTE and Industrial IoT driven by video and modern applications • States and municipalities upgrading their public safety communications – State and local budgets remain healthy; growing public safety funding • American Rescue Plan Act (ARPA) funding of $350 billion for U.S. States’ water, sewer, public safety, and broadband infrastructure • Vendor outsourcing and declining microwave expertise creates share of wallet opportunities Aviat Offers a Compelling Value Proposition to Private Network Operators Growth Drivers Segments Addressed • Mission critical product differentiation – Highest powered radios – Ruggedized access products & cellular router – IP/MPLS integration – Software innovations to simply network management (PV+, HAS, FAS) • Strong state relationships and global partners • Differentiated services offerings – Network design and testing – Install – Support – Managed services (incl. Network Operations Center, NOC) Aviat’s Leadership
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AVIAT NETWORKS Mobile Networks & 5G Market Summary 16 • Mobile service provider market driven by increasing bandwidth demand in 4G and 5G networks – Data from global networks is anticipated to grow rapidly (26% CAGR) through 2028, driven by 5G adoption and expanding 4G networks • Aviat’s product portfolio enables operators to increase their network capacity while lowering total cost of ownership (TCO) – Single-box multi-band lowers tower leasing costs while increase capacity – Vendor-agnostic multi-band allows operators to utilize existing radios and layer on Aviat’s solution, lowering the barrier to entry for Aviat into a network – Multi-band XD enables longer distances between links which helps to minimize total network capex – Highest capacity radio available on the market (20 Gbps) • Aviat’s multi-band is up to $10,000/link lower TCO vs competitive multi-band offerings – Superior solution → Less hardware → Lowest TCO CY24 CY25 CY26 CY27 CY28 Demand for Wireless Transport Driven by Increasing Data Consumption Global 5G Wireless Transport Market Source: Dell ‘Oro 0 100 200 300 400 500 2022 2023 2024 2025 2026 2027 2028 EB per month FWA 5G 2G/3G/4G $2.1B Market Global Mobile Network Data Traffic Source: Ericsson Mobility Report
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AVIAT NETWORKS17 Large Investments in Broadband Infrastructure Creates Opportunities for Wireless Transport Rural Broadband Summary Over $70B in Available Funding Wireless Transport is the Solution Aviat E-Commerce Platform Leads Rural Broadband CAF II Rural Digital Opportunity Fund (RDOF) 5G Fund for Rural America Broadband Equity, Access, and Deployment (BEAD) Program USDA Reconnect Program $1.5 Billion $20 Billion $9 Billion $42.5 Billion $635 Million Wireless transport is ideal for rural communities and is lower cost, more reliable, and faster to deploy than fiber Growing number of Fixed Wireless Access (FWA) deployments favors wireless backhaul Aviat is uniquely suited to serve WISPs through its Aviat Store and AviatCloud applications like Design (network planning and product recommendation) and automated radio and license applications
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AVIAT NETWORKS18 Aviat Operating Model Supports Growth-Centric Culture by Leveraging Continuous Improvement and Driving Competitive Excellence Aviat Operating Model Framework Excellence in Customer Focus Innovation Talent Supply Chain Our Actions We listen during the commercial and sales process to understand our customers’ needs and use our combined talents, skill and capabilities to create solutions that exceed expectations. We deliver innovative, high-quality solutions that meet key customer segment needs. Voice of customer informs investment decisions. Release to market within budget, timeframe and scope. We drive a performance culture and invest in our talent management programs to support evolving strategic business needs and implement organizational structures to facilitate results. We achieve a competitive advantage by delivering quality products with best-in-class lead- times. Our Processes • Standard global VOC process • Sales Goal planning • eCommerce platform • AviatCare customer service and support • Aviat Operating System for software • New Product Introduction (NPI) process • Portfolio management • Agile development methodology • Performance Management Process • Career Framework • Talent Management Review • Employee Ownership Program • S&OP Planning • Next day delivery e-commerce • Order to Cash process • Strategic sourcing to meet customer objectives globally Continuous Improvement | We Strive Everyday… To improve, innovate and drive cost efficiency to achieve higher performance and to promote our continuous improvement culture
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Fourth Quarter Fiscal 2026 Financial Highlights and Historical Performance
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AVIAT NETWORKS $115.3 $120.9 34.7% 30.9% – 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% $30.0 $50.0 $70.0 $90.0 $110.0 $130.0 Q4 FY2025 Q4 FY2026 Fourth Quarter Fiscal 2026 Highlights 20 • Revenue of $120.9 million, up 4.8% vs the year-ago period; full year fiscal 2026 revenues of $439.7 million • GAAP gross margin of 30.8%; Non-GAAP gross margin of 30.9% • GAAP operating income of $5.8 million; Non-GAAP operating income of $10.0 million • GAAP net loss of $1.3M; Non-GAAP net income of $8.3 million • GAAP loss per share of $0.10; Non-GAAP earnings per share of $0.64 • Adjusted EBITDA of $11.9 million; full year fiscal 2026 Adjusted EBITDA of $36.7 million Focused on Capturing Aviat’s Differentiation and Driving Costs Out Revenue & Non-GAAP Gross Margin Adjusted EBITDA & Adj. EBITDA Margin $ in millions $ in millions Fiscal 2027 Guidance: • Revenue: $455.0 to $470.0 million • Adjusted EBITDA: $50.0 to $55.0 million $15.1 $11.9 13.0% 9.8% Q4 FY2025 Q4 FY2026
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AVIAT NETWORKS Fourth Quarter Fiscal 2026 Balance Sheet Highlights 21 • Cash and Cash Equivalents of $72.8 million • Total debt outstanding of $97.0 million – Net debt of $24.2 million • Lowered Unbilled Receivables by $3.1 million to $82.1 million • Lowered Inventories by $3.6 million to $69.0 million Balance Sheet Improvement with Lower Unbilled Receivables and Lower Inventories Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26 Q4 FY26 Actual Actual Actual Actual Actual Cash Equivalents and Marketable Securities $59.7 $64.8 $86.5 $78.1 $72.8 Third-Party Debt ($87.6) ($106.5) ($105.4) ($104.3) ($97.0) Net Cash and Marketable Securities ($27.9) ($41.7) ($18.9) ($26.1) ($24.2) Accounts Receivable $180.3 $180.5 $203.1 $187.6 $192.2 Unbilled Receivables $105.9 $110.7 $90.6 $85.3 $82.1 Advance Payments and Unearned Revenue ($81.8) ($82.2) ($93.0) ($77.6) ($69.0) DSO’s 141 153 157 178 154 DSO’s net of Unbilled/Unearned 154 175 167 180 162 Accounts Payable ($148.1) ($142.4) ($145.4) ($112.1) ($119.5) DPO’s 171 184 174 166 136 Inventories $84.0 $84.0 $76.6 $72.6 $69.0 Turns 3.4 3.4 3.8 3.8 4.7 Asset / (Liability) ($’s in millions, except for DSO, DPO and Turns)
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AVIAT NETWORKS Cash Benefit of Historical Net Operating Losses (NOLs) 22 Cash Tax Savings Will Continue for the Foreseeable Future at Levels Commensurate with our Earnings Before Tax Performance • Over $420 million of gross NOLs at end of FY2026 • NOL’s reduce Aviat’s statutory federal and state blended tax rate of ~25% to an effective cash tax rate of ~5% • Improved financial performance and outlook for Aviat resulted in a full release of the valuation allowance against U.S. NOLs in Q3 of fiscal 2021 – A one-time benefit of $92 million was recognized in Net Income and Deferred Tax Assets US, $219 Intl., $204 FY26 Total NOLs ($M) $88 $88 $85 $87 $82 Deferred Tax Asset on Balance Sheet ($M)
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AVIAT NETWORKS23 Aviat Expects Second Half of FY27 to Have a Larger Share of Fiscal Year Revenues Revenue Pattern in Fiscal Year • Aviat’s fiscal first half and second half historically have had a near 50/50 split in revenues • Aviat expects to be more back-half weighted in FY27 than typical based on current backlog of projects 22.7% 25.5% 24.9% 26.9% 20.0% 21.0% 22.0% 23.0% 24.0% 25.0% 26.0% 27.0% 28.0% 29.0% 30.0% Q1 Q2 Q3 Q4 % of Annual Revenue Fiscal Quarter Typical Quarterly Revenue Contribution $ in millions Fiscal Period Q1 Q2 Q3 Q4 Calendar Period Sep-ended Qtr Dec-ended Qtr Mar-ended Qtr Jun-ended Qtr Fiscal 2022 Revenue $73.2 $77.9 $74.5 $77.4 % of fiscal year revenue 24% 26% 25% 26% Fiscal 2023 Revenue $80.8 $90.4 $82.2 $91.1 % of fiscal year revenue 23% 26% 24% 26% Fiscal 2024 Revenue $86.9 $93.7 $110.8 $116.7 % of fiscal year revenue 21% 23% 27% 29% Fiscal 2025 Revenue $88.4 $118.2 $112.6 $115.3 % of fiscal year revenue 20% 27% 26% 27% Fiscal 2026 Revenue $107.3 $111.5 $100.0 $120.9 % of fiscal year revenue 24% 25% 23% 27% Typical Revenue Contribution 22.7% 25.5% 24.9% 26.9%
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AVIAT NETWORKS24 GAAP to Non-GAAP Reconciliation Fiscal Year 2026 Fourth Quarter Summary RE CONCILIATIONS OF NON-GAAP FINANCIAL ME ASURE S (1) Condensed Consolidated Statements of Operations (Unaudited) % of % of % of % of % of % of % of % of Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue (In thousands, except percentages and per share amounts) (In thousands, except percentages and per share amounts) GAAP gross margin $37,244 30.8% $39,466 34.2% $138,291 31.5% $139,436 32.1% GAAP net (loss) income ($1,276) (1.1%) $5,197 4.5% $2,539 0.6% $1,341 0.3% Share-based compensation 41 19 146 233 Share-based compensation 1,719 1,441 6,202 7,067 Litigation and other expenses 68 595 1,315 2,890 Litigation and other expenses 666 601 2,971 7,786 Non-GAAP gross margin 37,353 30.9% 40,080 34.7% 139,752 31.8% 142,559 32.8% Restructuring charges 1,800 2,019 2,144 3,611 Other (income) expense, net (1,290) (3,106) (1,661) 941 GAAP research and development expenses $7,238 6.0% $7,434 6.4% $28,401 6.5% $35,768 8.2% Adjustment to reflect pro forma tax rate 6,677 4,582 9,380 635 Share-based compensation (37) (78) (135) (534) Non-GAAP net income $8,296 6.9% $10,734 9.3% $21,575 4.9% $21,381 4.9% Non-GAAP research and development expenses 7,201 6.0% 7,356 6.4% 28,266 6.4% 35,234 8.1% Diluted net income per share: GAAP selling and administrative expenses $22,384 18.5% $21,134 18.3% $88,509 20.1% $89,482 20.6% GAAP ($0.10) $0.40 $0.19 $0.10 Share-based compensation (1,641) (1,344) (5,921) (6,300) Non-GAAP $0.64 $0.83 $1.66 $1.67 Litigation and other expenses (598) (6) (1,656) (4,896) Non-GAAP selling and administrative expenses 20,145 16.7% 19,784 17.2% 80,932 18.4% 78,286 18.0% Shares used in computing net income per share GAAP 12,920 12,867 13,027 12,826 GAAP operating expense $31,422 26.0% $30,587 26.5% $119,054 27.1% $128,861 29.7% Non-GAAP 13,042 12,867 13,027 12,826 Share-based compensation (1,678) (1,422) (6,056) (6,834) Litigation and other expenses (598) (6) (1,656) (4,896) Adjusted EBITDA: Restructuring (charges) recovery (1,800) (2,019) (2,144) (3,611) GAAP net (loss) income ($1,276) (1.1%) $5,197 4.5% $2,539 0.6% $1,341 0.3% Non-GAAP operating expense 27,346 22.6% 27,140 23.5% 109,198 24.8% 113,520 26.1% Depreciation and amortization of property, plant and equipment and intangible assets 1,871 2,110 6,118 8,045 Interest expense, net 2,211 1,806 7,679 6,058 GAAP operating income $5,822 4.8% $8,879 7.7% $19,237 4.4% $10,575 2.4% Other (income) expense, net (1,290) (3,106) (1,661) 941 Share-based compensation 1,719 1,441 6,202 7,067 Share-based compensation 1,719 1,441 6,202 7,067 Litigation and other expenses 666 601 2,971 7,786 Litigation and other expenses 666 601 2,971 7,786 Restructuring charges 1,800 2,019 2,144 3,611 Restructuring charges 1,800 2,019 2,144 3,611 Non-GAAP operating income 10,007 8.3% 12,940 11.2% 30,554 6.9% 29,039 6.7% Provision for income taxes 6,177 4,982 10,680 2,235 Adjusted EBITDA $11,878 9.8% $15,050 13.0% $36,672 8.3% $37,084 8.5% GAAP income tax provision $6,177 5.1% $4,982 4.3% $10,680 2.4% $2,235 0.5% Adjustment to reflect pro forma tax rate (6,677) (4,582) (9,380) (635) Non-GAAP income tax (benefit) provision (500) (0.4%) 400 0.3% 1,300 0.3% 1,600 0.4% 27-Jun-25 (1) The adjustments above reconcile our GAAP financial results to the non-GAAP financial measures used by us. Our non-GAAP net income excluded share-based compensation, and other non-recurring charges (recovery). Adjusted EBITDA was determined by excluding depreciation and amortization on property, plant and equipment and intangible assets, interest, provision for or benefit from income taxes, and non-GAAP pre-tax adjustments, as set forth above, from GAAP net income. We believe that the presentation of these non-GAAP items provides meaningful supplemental information to investors, when viewed in conjunction with, and not in lieu of, our GAAP results. However, the non-GAAP financial measures have not been prepared under a comprehensive set of accounting rules or principles. Non-GAAP information should not be considered in isolation from, or as a substitute for, information prepared in accordance with GAAP. Moreover, there are material limitations associated with the use of non-GAAP financial measures. Three Months Ended Twelve Months Ended 3-Jul-26 27-Jun-25 3-Jul-2627-Jun-25 Three Months Ended Twelve Months Ended 3-Jul-26 27-Jun-25 3-Jul-26
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W W W . A V I A T N E T W O R K S . C O M