Gilat Satellite Networks (GILT) Stock Faces Cash Flow Questions After Revenue Growth

The market gave Gilat Satellite Networks only a modest nod today, with the stock up about 1.6% after a rough three months that saw the share price fall almost 29%. That muted bounce sits against a quarter that was all about operating strength rather than headline drama. Revenue reached about US$122.7m and adjusted EBITDA margin moved into the low teens, which matters in a capital intensive satellite communications business where cash generation and profitability often drive the real story.

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Q2 2026 Earnings Summary

• Revenue, Q2 2026 vs. Q2 2025: US$122.7m vs. US$105.0m (up about 17%)
• Net Income, Q2 2026 vs. Q2 2025: US$8.1m vs. US$9.8m (down about 17%)
• Basic EPS, Q2 2026 vs. Q2 2025: US$0.11 vs. US$0.17 (down about 39%)
• Adjusted EBITDA Margin, Q2 2026 vs. Q2 2025: approximately 12.6% vs. 11.2% (up about 1.4 percentage points)

Tired of scrolling through dense earnings tables and raw figures for Gilat Satellite Networks? Get a clear visual view of how the company makes and uses its cash with our full financial breakdown in the company report for Gilat Satellite Networks.

Bulls See Gilat’s Growth Engine Firing, With Caveats

Bullish investors argue that Gilat Satellite Networks is building a higher quality, more recurring business around defense, IFC and software platforms like SkyEdge. Q2 revenue of US$122.7m and 17% growth sit alongside adjusted EBITDA up about 31% and margin of 12.6%. That mix of top line and margin progress supports the idea of better operating leverage as mobility and platform volumes scale. Order flow backs this up. Commercial revenue rose to US$83m, helped by more than US$20m of SkyEdge orders and US$43m of Sidewinder ESA orders, while Defense reached US$22.5m with new U.S. and European awards and the Viper Ka product launch. The Peru projects are moving from build to operations, which fits the shift toward service revenue. The planned Comtech Satellite & Space acquisition and Boeing line fit progress are on track against the expansion narrative, although cash generation lagged this quarter as working capital absorbed funds.

Bears Focus On Margins, Cash And Execution Risk

The bearish story around Gilat Satellite Networks centers on margin pressure, lumpy government exposure and execution risk in mobility and M&A. Some of that concern shows up in the numbers. Non GAAP gross margin slipped by 1 percentage point to 32% despite the move toward software and platforms, which echoes worries about product mix and amortization. GAAP operating income and net income were weaker than non GAAP figures, influenced by earn out effects and a higher share count. The company used about US$1.9m in operating cash as inventories and receivables climbed to support expected second half deliveries, so the model is not yet self funding quarter to quarter. Government reliance also remains evident, with Peru at US$17.2m and ongoing defense wins, which can keep revenue and cash flow uneven. The modest 1.6% share price move after results suggests investors are still weighing these risks.

Compare Gilat Satellite Networks’ operating momentum with what the street is pricing in. See the consensus price target analysis for Gilat Satellite Networks to check how analyst targets stack up against the latest earnings story.

Stay Ahead With Gilat Satellite Networks

If the mix of revenue growth, margin questions and cash usage at Gilat Satellite Networks has your attention, register for free with Simply Wall St and add it to your Watchlist to track price against fair value and watch how the story develops before making a move. Once you own any stocks, use the Portfolio Command Center to cut through market noise and receive focused updates on the metrics that matter most to you. For a broader view, tap into crowd insights and different theses through the Community so you can see how other investors are interpreting the same numbers. This combination helps you spot potential catalysts and risks early and stay ahead of the market.

Seeking Alternatives Beyond Gilat Satellite Networks?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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