Gilat Satellite Networks (GILT) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenues rose 21% year-over-year to $92 million, marking the first quarter under a new organizational structure and including the first consolidation of Stellar Blu results.

• Adjusted EBITDA was $7.6 million; excluding Stellar Blu losses, organic adjusted EBITDA was $11.2 million, a 20% year-over-year increase.

• GAAP net loss was $6 million, mainly due to acquisition-related costs and ramp-up expenses.

• Defense segment showed significant momentum, supported by increased global demand for secure communications.

• Commercial IFC business expanded, with the Sidewinder ESA now operational on over 150 aircraft and further orders anticipated.

Financial highlights

• Q1 2025 revenue: $92 million, up from $76.1 million in Q1 2024 (21% increase).

• GAAP gross margin: 30.9% (down from 36.9% in Q1 2024); non-GAAP gross margin: 31.7% (down from 37.8%).

• GAAP operating loss: $2.7 million (vs. $5.4 million income in Q1 2024), mainly due to $3.6 million loss from Stellar Blu ramp-up and acquisition-related costs.

• Non-GAAP net income: $1.8 million (vs. $6 million in Q1 2024); adjusted EBITDA: $7.6 million (vs. $9.3 million in Q1 2024).

• Cash and equivalents: $64.3 million as of March 31, 2025; net of loans: $3.8 million.

Outlook and guidance

• 2025 revenue guidance: $415–$455 million, representing 42% year-over-year growth at midpoint.

• Adjusted EBITDA guidance: $47–$53 million, 18% year-over-year growth at midpoint.

• Stellar Blu expected to contribute $120–$150 million in revenue and reach a 10% adjusted EBITDA margin run rate in H2 2025.

• Management expects record year in both revenues and non-GAAP profitability as Stellar Blu ramp-up finalizes.