Comtech Telecommunications (CMTL) investor relations material

Executive summary

• Announced sale of most of Satellite and Space (S&S) business to Gilat for $157.5 million, sharpening strategic focus on Allerium's public safety technology segment and mission-critical communications.

• Transformation plan with four pillars—operational discipline, positive cash flow, strategic alternatives, and capital structure—has been successfully executed, resulting in five consecutive quarters of positive operating cash flow and improved stakeholder trust.

• Net sales for Q3 FY2026 were $106.0 million, down 16.4% year-over-year, mainly due to lower sales in S&S and Allerium segments.

• Gross margin improved to 34.0% from 30.7% in Q3 FY2025, reflecting better product mix and cost reductions.

• Backlog reached $696.1 million as of April 30, 2026, with a book-to-bill ratio of 0.67x for the quarter.

Financial highlights

• Q3 net sales were $106 million, down from $126.8 million year-over-year, reflecting the phase-out of low/no-margin S&S revenues.

• Gross profit was $36.1 million (34% margin), up from 30.7% margin last year, due to improved product mix and operational efficiency.

• Operating loss of $3.1 million; net loss attributable to common stockholders was $14.3 million, with a net loss per share of $0.47.

• Adjusted EBITDA was $8.2 million (7.8% margin), down from $12.6 million year-over-year, reflecting prior-year one-time benefits.

• Positive operating cash flow of $6.1 million, up from $2.3 million last year; total liquidity at quarter end of $49.4 million.

Outlook and guidance

• No formal guidance provided due to unpredictable operating environment, but management anticipates a simpler operating model, stronger balance sheet, and increased investment in innovation.

• Strategic focus on public safety and mission-critical communications, leveraging recurring revenue and innovation in emergency technologies.

• Management expects sufficient liquidity to fund operations and commitments over the next year, supported by cash, cash flows, and available credit.

• Allerium expected to deliver 3%-5% annual top-line growth, with margin expansion driven by scale and recurring revenue.