Aviat Networks (AVNW) Q3 2025 earnings summary

Executive summary

• Q3 FY2025 revenue was $112.6 million, up 1.6% year-over-year, with trailing twelve-month revenue at $435.9 million, a 14% increase.

• Record Adjusted EBITDA reached $14.9 million, up 17.3% year-over-year, driven by strong margins, cost management, and software sales.

• Non-GAAP EPS was $0.88, GAAP EPS $0.27; net income for Q3 was $3.5 million.

• Completed acquisitions of 4RF Limited and NEC's wireless transport business, expanding product offerings and scale.

• Implemented restructuring plans and continued internal control remediation.

Financial highlights

• GAAP gross margin was 34.9%, non-GAAP gross margin 35.8%, both up year-over-year.

• GAAP operating income was $9.3 million, non-GAAP $13 million; Q3 diluted EPS was $0.27 GAAP, $0.88 non-GAAP.

• Cash and cash equivalents at quarter-end were $49.4 million; net debt was $24.5 million.

• Inventory increased to $93.2 million; DSO at 139 days, DPO at 162 days, and inventory turns at 3.5.

• Product sales grew 8.4% in Q3; service revenue declined 10.4% in Q3.

Outlook and guidance

• Fiscal 2025 full-year guidance reaffirmed: revenue between $430–$470 million, Adjusted EBITDA between $30–$40 million.

• Management expects sufficient liquidity for at least the next 12 months, supported by cash, credit facility, and receivables.

• Guidance remains annual due to macro and tariff uncertainties; Q4 revenue expected to build modestly over Q3.

• Plans to mitigate new U.S. tariffs through sourcing optimization and potential pricing actions.