Comtech Telecommunications (CMTL) investor relations material

Executive summary

• Achieved significant operational and financial improvements through transformation initiatives launched in January 2025, including removal of going concern uncertainty and revitalization of both business segments.

• Q4 2025 marked a significant turnaround, with positive operating cash flow and improved liquidity, reflecting the success of transformation initiatives.

• Both business segments, Satellite & Space Communications (S&S) and Allerium, showed operational improvements and strategic repositioning.

• Strengthened corporate governance, leadership, accountability, and a renewed focus on cash flow optimization and working capital management.

• Enhanced customer focus, operational efficiency, and cost structure, with a revitalized corporate culture driving further improvements.

Financial highlights

• Fiscal 2025 net sales were $499.5 million, down from $540.4 million in 2024; Q4 net sales were $130.4 million, up from $126.2 million in Q4 2024.

• Gross margin for fiscal 2025 was 25.6% (down from 29.1% in 2024), with Q4 gross margin rising to 31.2% from 21.5% a year ago.

• Adjusted EBITDA loss for fiscal 2025 was $2 million, compared to $45.7 million income in 2024; Q4 Adjusted EBITDA was $13.3 million.

• Net loss attributable to common shareholders was $204.3 million for the year and $11.6 million for Q4, both showing sequential improvement.

• Year-end liquidity reached $47 million, up from $27.4 million in March 2025, the highest in recent history.

Outlook and guidance

• Preliminary Q1 fiscal 2026 net sales expected at $107–$113 million, with $6–$7 million in positive operating cash flow and liquidity of $51 million.

• Q1 2026 performance reflects timing of orders, government shutdown impacts, and phasing out of low-margin revenue; improvement expected in subsequent quarters.

• Management expects to remain compliant with credit covenants and continue as a going concern, with no substantial doubt disclosed.