Earnings release
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Gilat Reports Third Quarter 2025 Results Revenues Increased by 58%, GAAP Operating Income Rose to $7.5 Million, Adjusted EBITDA Grew to $15.6 Million Raising Midpoint of 2025 Revenue and Adjusted EBITDA Guidance Petah Tikva, Israel, November 12, 2025 — Gilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT), a worldwide leader in satellite networking technology, solutions and services, today reported its results for the third quarter, ended September 30, 2025. Third Quarter 2025 Financial Highlights • Revenues of $117.7 million, compared with $74.6 million in Q3 2024; • GAAP operating income of $7.5 million, compared with GAAP operating income of $6.7 million in Q3 2024; • Non-GAAP operating income of $12.8 million, compared with $8.3 million in Q3 2024; • GAAP net income of $8.1 million, or $0.14 per diluted share, compared with GAAP net income of $6.8 million, or $0.12 per diluted share, in Q3 2024; • Non-GAAP net income of $11.8 million, or $0.19 per diluted share, compared with $8.1 million, or $0.14 per diluted share, in Q3 2024; • Adjusted EBITDA of $15.6 million, compared with $10.7 million in Q3 2024.
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Forward-Looking Expectations With results continuing to trend toward the high end of expectations and improved visibility into the remainder of the year, the Company is raising the midpoint of its full-year 2025 financial outlook and narrowing the guidance to revenues between $445 million and $455 million for FY 2025, representing a higher revenue growth rate of approximately 47% at the midpoint. Previously, management had expected revenue for 2025 between $435 million and $455 million. Adjusted EBITDA for 2025 is now expected to be between $51 million and $53 million for a higher growth rate of approximately 23% at the midpoint, compared to the previous guidance for Adjusted EBITDA to be between $50 million and $53 million. Management Commentary Adi Sfadia, Gilat's CEO, commented: “Gilat delivered another strong quarter with significant growth and continued successful execution whilst generating robust cash from operations. Our competitive edge in satellite communications and success in next-generation programs, from VHTS to NGSO constellations and ESA solutions for IFC and Defense programs, are clearly translating into strong bookings of orders and growing demand. The $66 million private placement we completed this quarter reflects investor confidence in our strategy and combined with our strong cash generation from operations, provides additional resources to support our next phase of growth.” Mr. Sfadia added, “Gilat Defense achieved new milestones with multi-million dollar orders from the U.S. Department of Defense and the Israeli Ministry of Defense, while our Commercial division recorded major wins for the SkyEdge IV platform and Gilat Stellar Blu’s Sidewinder ESA terminals. Gilat Peru also secured an order for $25 million from Pronatel, which is in addition to the $60 million that was reported in the beginning of Q3, for a total of $85 million. These awards reinforce Gilat Peru's role in Peru's digital inclusion programs. We continued to strengthen our technology leadership with the industry’s first-to-market integration of AI into our Network Management System, bringing automation and intelligence to satellite network operations.” Mr. Sfadia concluded, “These achievements underscore the strength of our diversified solution portfolio, our commitment to innovation and our ability to integrate new products and acquired businesses. With a strong balance sheet, robust backlog, and accelerating demand for multi-orbit solutions, we are excited about our potential growth opportunities, both organically and through acquistions.” Key Recent Announcements • Gilat Receives $7 Million Order for In-Flight Connectivity Solution • Gilat Receives $42 Million in Orders from a Leading Satellite Operator for its Multi-Orbit SkyEdge IV Platform • Gilat Receives Over $7 Million Orders to Supply Transportable SATCOM Terminals to the U.S. Army • Gilat Announces Private Placement of US$66 Million to Institutional and Accredited Investors • Gilat Receives More Than $7 Million Order to Provide the U.S. DoD with Transportable SATCOM Terminals • Gilat Receives an Additional $25 Million Agreement to Advance Digital Inclusion in Peru • Gilat Awarded Over $60 Million for Stellar Blu ESA Sidewinder Terminals • Gilat Receives a Multimillion Contract from Israel’s Ministry of Defense for Advanced Strategic Defense SATCOM Project 2
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Conference Call Details Gilat’s management will discuss its third quarter 2025 results and business achievements and participate in a question-and-answer session: Date: Wednesday, November 12, 2025 Start: 09:30 AM EST / 16:30 IST A simultaneous webcast of the conference call will be available through this link: https://www.veidan-conferencing.com/gilat Or Dial-in: US: 1-888-407-2553 International: +972-3-918-0609 The webcast will also be archived for a period of 30 days on the Company’s website https://www.gilat.com and through the link above. Non-GAAP Measures The attached unaudited summary consolidated financial statements were prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). To supplement the summary consolidated financial statements presented in accordance with GAAP, the Company presents non-GAAP measurements of gross profit, operating expenses, operating income, income before taxes on income, net income, Adjusted EBITDA, and earnings per share. The adjustments to the Company’s GAAP results are made with the intent of providing both management and investors with a more complete understanding of the Company’s underlying operational results, trends, and performance. Non-GAAP financial measures mainly exclude, if and when applicable, the effect of stock-based compensation, amortization of purchased intangibles, lease incentive amortization, other non-recurring expenses, other integration expenses, other operating expenses (income), net, and income tax effect on the relevant adjustments. Adjusted EBITDA is presented to compare the Company’s performance to that of prior periods and evaluate the Company’s financial and operating results on a consistent basis from period to period. The Company also believes this measure, when viewed in combination with the Company’s financial results prepared in accordance with GAAP, provides useful information to investors to evaluate ongoing operating results and trends. Adjusted EBITDA, however, should not be considered as an alternative to operating income or net income for the period and may not be indicative of the historic operating results of the Company; nor is it meant to be predictive of potential future results. Adjusted EBITDA is not a measure of financial performance under GAAP and may not be comparable to other similarly titled measures for other companies. Reconciliation between the Company's net income and adjusted EBITDA is presented in the attached summary consolidated financial statements. Non-GAAP presentations of gross profit, operating expenses, operating income, income before taxes on income, net income, adjusted EBITDA and earnings per share should not be considered in isolation or as a substitute for any of the consolidated statements of operations prepared in accordance with GAAP, or as an indication of Gilat’s operating performance or liquidity. 3
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About Gilat Gilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT) is a leading global provider of satellite-based broadband communications. With over 35 years of experience, we develop and deliver deep technology solutions for satellite, ground, and new space connectivity, offering next-generation solutions and services for critical connectivity across commercial and defense applications. We believe in the right of all people to be connected and are united in our resolution to provide communication solutions to all reaches of the world. Together with our wholly owned subsidiaries, Gilat Wavestream, Gilat DataPath, and Gilat Stellar Blu, we offer integrated, high-value solutions supporting multi-orbit constellations, Very High Throughput Satellites (VHTS), and Software-Defined Satellites (SDS) via our Commercial and Defense Divisions. Our comprehensive portfolio is comprised of a cloud-based platform and modems; high-performance satellite terminals; advanced Satellite On-the-Move (SOTM) antennas and ESAs; highly efficient, high-power Solid State Power Amplifiers (SSPA) and Block Upconverters (BUC) and includes integrated ground systems for commercial and defense markets, field services, network management software, and cybersecurity services. Gilat’s products and tailored solutions support multiple applications including government and defense, IFC and mobility, broadband access, cellular backhaul, enterprise, aerospace, broadcast, and critical infrastructure clients all while meeting the most stringent service level requirements. For more information, please visit: http://www.gilat.com Certain statements made herein that are not historical are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. The words “estimate”, “project”, “intend”, “expect”, “believe” and similar expressions are intended to identify forward-looking statements. These forward- looking statements involve known and unknown risks and uncertainties. Many factors could cause the actual results, performance or achievements of Gilat to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in general economic and business conditions, inability to maintain market acceptance to Gilat’s products, inability to timely develop and introduce new technologies, products and applications, rapid changes in the market for Gilat’s products, loss of market share and pressure on prices resulting from competition, introduction of competing products by other companies, inability to manage growth and expansion, loss of key OEM partners, inability to attract and retain qualified personnel, inability to protect the Company’s proprietary technology and risks associated with Gilat’s international operations and its location in Israel, including those related to the hostilities between Israel and Hamas. For additional information regarding these and other risks and uncertainties associated with Gilat’s business, reference is made to Gilat’s reports filed from time to time with the Securities and Exchange Commission. We undertake no obligation to update or revise any forward-looking statements for any reason. Contact: Gilat Satellite Networks Hagay Katz, Chief Products and Marketing Officer PublicRelations@gilat.com Alliance Advisors GilatIR@allianceadvisors.com Phone: +1 212 838 3777 4
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GILAT SATELLITE NETWORKS LTD. CONSOLIDATED STATEMENTS OF INCOME U.S. dollars in thousands (except share and per share data) Nine months ended Three months ended September 30, September 30, 2025 2024 2025 2024 Unaudited Unaudited Revenues $ 314,698 $ 227,320 $ 117,691 $ 74,611 Cost of revenues 219,642 145,010 82,960 46,928 Gross profit 95,056 82,310 34,731 27,683 Research and development expenses, net 35,424 28,028 11,494 9,481 Selling and marketing expenses 25,542 20,724 9,075 6,615 General and administrative expenses 19,849 20,676 6,822 6,162 Other operating expenses (income), net 3,758 (2,045) (206) (1,320) Total operating expenses 84,573 67,383 27,185 20,938 Operating income 10,483 14,927 7,546 6,745 Financial income (expenses), net (3,178) 1,441 (992) 662 Income before taxes on income 7,305 16,368 6,554 7,407 Taxes on income 4,627 (3,283) 1,544 (588) Net income $ 11,932 $ 13,085 $ 8,098 $ 6,819 Earnings per share (basic and diluted) $ 0.21 $ 0.23 $ 0.14 $ 0.12 Weighted average number of shares used in computing earnings per share Basic 57,546,606 57,016,883 58,477,579 57,017,032 Diluted 58,077,156 57,016,883 59,852,657 57,017,032 5
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GILAT SATELLITE NETWORKS LTD. RECONCILIATION BETWEEN GAAP AND NON-GAAP CONSOLIDATED STATEMENTS OF INCOME FOR COMPARATIVE PURPOSES U.S. dollars in thousands (except share and per share data) Three months ended Three months ended September 30, 2025 September 30, 2024 GAAP Adjustments (*) Non-GAAP GAAP Adjustments (*) Non-GAAP Unaudited Unaudited Gross profit $ 34,731 2,774 $ 37,505 $ 27,683 755 $ 28,438 Operating expenses 27,185 (2,526) 24,659 20,938 (767) 20,171 Operating income 7,546 5,300 12,846 6,745 1,522 8,267 Income before taxes on income 6,554 5,300 11,854 7,407 1,522 8,929 Net income $ 8,098 3,685 $ 11,783 $ 6,819 1,325 $ 8,144 Basic earnings per share $ 0.14 $ 0.06 $ 0.20 $ 0.12 $ 0.02 $ 0.14 Diluted earnings per share $ 0.14 $ 0.05 $ 0.19 $ 0.12 $ 0.02 $ 0.14 Weighted average number of shares used in computing earnings per share Basic 58,477,579 58,477,579 57,017,032 57,017,032 Diluted 59,852,657 60,839,694 57,017,032 57,017,032 (*)Adjustments reflect the effect of stock-based compensation as per ASC 718, amortization of purchased intangibles, other operating expenses (income), net, other integration expenses and income tax effect on such adjustments which is calculated using the relevant effective tax rate. Three months ended Three months ended September 30, 2025 September 30, 2024 Unaudited Unaudited GAAP net income $ 8,098 $ 6,819 Gross profit Stock-based compensation expenses 215 85 Amortization of purchased intangibles 2,559 596 Other integration expenses - 74 2,774 755 Operating expenses Stock-based compensation expenses 1,436 696 Stock-based compensation related to business combination - 1,131 Amortization of purchased intangibles 1,120 248 Other operating expenses (income), net (206) (1,320) Other integration expenses 176 12 2,526 767 Taxes on income (1,615) (197) Non-GAAP net income $ 11,783 $ 8,144 6
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GILAT SATELLITE NETWORKS LTD. RECONCILIATION BETWEEN GAAP AND NON-GAAP CONSOLIDATED STATEMENTS OF INCOME FOR COMPARATIVE PURPOSES U.S. dollars in thousands (except share and per share data) Nine months ended Nine months ended September 30, 2025 September 30, 2024 GAAP Adjustments (*) Non-GAAP GAAP Adjustments (*) Non-GAAP Unaudited Unaudited Gross profit $ 95,056 6,142 $ 101,198 $ 82,310 3,098 $ 85,408 Operating expenses 84,573 (10,658) 73,915 67,383 (4,180) 63,203 Operating income 10,483 16,800 27,283 14,927 7,278 22,205 Income before taxes on income 7,305 16,800 24,105 16,368 7,278 23,646 Net income 11,932 13,639 25,571 13,085 6,628 19,713 Basic earnings per share $ 0.21 $ 0.23 $ 0.44 $ 0.23 $ 0.12 $ 0.35 Diluted earnings per share $ 0.21 $ 0.22 $ 0.43 $ 0.23 $ 0.12 $ 0.35 Weighted average number of shares used in computing earnings per share Basic 57,546,606 57,546,606 57,016,883 57,016,883 Diluted 58,077,156 58,961,990 57,016,883 57,047,599 (*)Adjustments reflect the effect of stock-based compensation as per ASC 718, amortization of purchased intangibles, other operating expenses (income), net. other non-recurring expenses, other integration expenses and income tax effect on such adjustments which is calculated using the relevant effective tax rate. Nine months ended September 30, 2025 Nine months ended September 30, 2024 Unaudited Unaudited GAAP net income $ 11,932 $ 13,085 Gross profit Stock-based compensation expenses 617 385 Amortization of purchased intangibles 5,461 2,023 Other non-recurring expenses - 466 Other integration expenses 64 224 6,142 3,098 Operating expenses Stock-based compensation expenses 3,420 2,118 Stock-based compensation related to business combination (313) 3,297 Amortization of purchased intangibles 3,273 772 Other operating expenses (income), net 3,758 (2,045) Other integration expenses 520 38 10,658 4,180 Taxes on income (3,161) (650) Non-GAAP net income $ 25,571 $ 19,713 7
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GILAT SATELLITE NETWORKS LTD. SUPPLEMENTAL INFORMATION U.S. dollars in thousands ADJUSTED EBITDA: Nine months ended Three months ended September 30, September 30, 2025 2024 2025 2024 Unaudited Unaudited GAAP net income $ 11,932 $ 13,085 $ 8,098 $ 6,819 Adjustments: Financial expenses (income), net 3,178 (1,441) 992 (662) Taxes on income (4,627) 3,283 (1,544) 588 Stock-based compensation expenses 4,037 2,503 1,651 781 Stock-based compensation related to business combination (313) 3,297 - 1,131 Depreciation and amortization (*) 16,458 10,709 6,412 3,266 Other operating expenses (income), net 3,758 (2,045) (206) (1,320) Other non-recurring expenses - 466 - - Other integration expenses 584 262 176 86 Adjusted EBITDA $ 35,007 $ 30,119 $ 15,579 $ 10,689 (*) Including amortization of lease incentive SEGMENT REVENUES: Nine months ended Three months ended September 30, September 30, 2025 2024 2025 2024 Unaudited Unaudited Commercial $ 206,234 $ 118,380 $ 72,957 $ 33,787 Defense 67,094 68,398 24,090 30,994 Peru 41,370 40,542 20,644 9,830 Total revenues $ 314,698 $ 227,320 $ 117,691 $ 74,611 8
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GILAT SATELLITE NETWORKS LTD. CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands September 30, December 31, 2025 2024 Unaudited Audited ASSETS CURRENT ASSETS: Cash and cash equivalents $ 154,451 $ 119,384 Restricted cash 430 853 Trade receivables, net 54,381 49,600 Contract assets 14,703 24,941 Inventories 51,344 38,890 Other current assets 44,680 21,963 Total current assets 319,989 255,631 LONG-TERM ASSETS: Restricted cash 15 12 Long-term contract assets 7,890 8,146 Severance pay funds 6,693 5,966 Deferred taxes 18,222 11,896 Operating lease right-of-use assets 5,593 6,556 Other long-term assets 18,633 5,288 Total long-term assets 57,046 37,864 PROPERTY AND EQUIPMENT, NET 72,849 70,834 INTANGIBLE ASSETS, NET 58,160 12,925 GOODWILL 167,706 52,494 TOTAL ASSETS $ 675,750 $ 429,748 9
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GILAT SATELLITE NETWORKS LTD. CONSOLIDATED BALANCE SHEETS (Cont.) U.S. dollars in thousands September 30, December 31, 2025 2024 Unaudited Audited LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Current maturities of long-term loan $ 3,750 $ - Trade payables 13,534 17,107 Accrued expenses 52,648 45,368 Advances from customers and deferred revenues 81,407 18,587 Operating lease liabilities 2,782 2,557 Other current liabilities 31,519 17,817 Total current liabilities 185,640 101,436 LONG-TERM LIABILITIES: Long-term loans 55,525 2,000 Accrued severance pay 7,249 6,677 Long-term advances from customers and deferred revenues 140 580 Operating lease liabilities 2,975 4,014 Other long-term liabilities 33,620 10,606 Total long-term liabilities 99,509 23,877 SHAREHOLDERS' EQUITY: Share capital - ordinary shares of NIS 0.2 par value 3,199 2,733 Additional paid-in capital 1,014,112 943,294 Accumulated other comprehensive loss (3,170) (6,120) Accumulated deficit (623,540) (635,472) Total shareholders' equity 390,601 304,435 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 675,750 $ 429,748 10
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GILAT SATELLITE NETWORKS LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS U.S. dollars in thousands Nine months ended Three months ended September 30, September 30, 2025 2024 2025 2024 Unaudited Unaudited Cash flows from operating activities: Net income $ 11,932 $ 13,085 $ 8,098 $ 6,819 Adjustments required to reconcile net income to net cash provided by operating activities: Depreciation and amortization 16,302 10,542 6,360 3,209 Stock-based compensation expenses 3,724 5,800 1,651 1,912 Accrued severance pay, net (155) (17) (79) (77) Deferred taxes, net (6,325) 1,536 (2,092) (188) Decrease (increase) in trade receivables, net (10,613) (7,019) (1,379) 10,715 Decrease (increase) in contract assets 10,453 (2,987) (6,099) (5,969) Decrease (increase) in other assets and other adjustments (including short-term, long-term and effect of exchange rate changes on cash, cash equivalents and restricted cash) 12,070 3,071 316 (2,441) Increase in inventories (3,358) (2,472) (3,454) (3,446) Increase (decrease) in trade payables (19,375) 5,080 (4,685) 1,501 Increase in accrued expenses 1,027 2,675 5,614 4,904 Increase (decrease) in advances from customers and deferred revenues 8,625 (12,162) 24,051 (2,676) Increase (decrease) in other liabilities 2,668 (1,745) 142 432 Net cash provided by operating activities 26,975 15,387 28,444 14,695 Cash flows from investing activities: Purchase of property, equipment and intangible assets (8,260) (4,095) (4,004) (1,445) Investment in other asset (3,500) - - - Acquisitions of subsidiary, net of cash acquired (104,943) - - - Net cash used in investing activities (116,703) (4,095) (4,004) (1,445) Cash flows from financing activities: Repayment of credit facility, net - (7,453) - - Repayment of short-term debts - (4,043) - (2,703) Proceeds from short-term debts - 6,770 - 5,301 Proceeds from long-term loan, net of associated costs 58,970 - - - Repayment of long-term loan (1,500) - (750) - Proceeds from issuance of Ordinary shares in a private placement, net 65,325 - 65,325 - Proceeds from exercise of stock options 166 - 166 - Net cash provided by (used in) financing activities 122,961 (4,726) 64,741 2,598 Effect of exchange rate changes on cash, cash equivalents and restricted cash 1,414 (558) 298 160 Increase in cash, cash equivalents and restricted cash 34,647 6,008 89,479 16,008 Cash, Cash equivalents and Restricted cash at the Beginning of the Period 120,249 104,751 65,417 94,751 Cash, cash equivalents and restricted cash at the end of the period $ 154,896 $ 110,759 $ 154,896 $ 110,759 11