Comtech Telecommunications (CC6) Q4 2026 Earnings Report
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DE:CC6 Q4 2026 EPS Results
- Actual EPS
- -EUR 0.28
- Consensus EPS
- -EUR 0.45
- Beat/Miss
- Beat by +EUR 0.18
- One Year Ago EPS
- -EUR 0.35
DE:CC6 Q4 2026 Revenue Results
- Actual Revenue
- EUR 59.08M
- Expected Revenue
- EUR 99.60M
- Beat/Miss
- Missed by -EUR 40.52M
- YoY Revenue Growth
- -40.35%
Earnings Announcement Details
- Quarter
- Q4 2026
- Date
- 10/14/2026
- Time
- After Close
- Conference Call
- Wednesday, October 14, 2026
DE:CC6 Upcoming Earnings
Comtech Telecommunications's next earnings date is estimated for December 3, 2026, based on past reporting schedules.
Q4 2026 Earnings Call Audio
DE:CC6 Q4 2026 Earnings Call
0:00 / 0:00
Q4 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q4 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive overall. Management emphasized completion of its four-part transformation, six consecutive quarters of positive operating cash flow, improved margins, higher backlog, a recurring-revenue Allerium platform and a pending asset sale expected to reduce debt and improve financial flexibility. The principal negatives were lower reported sales, continuing GAAP operating losses, substantial outstanding debt and preferred-stock obligations, transition costs, lighter second-half bookings and the fact that the Gilat transaction and subsequent refinancing remain subject to completion.
Company Guidance
Management said it expects to close the Gilat transaction by the end of this calendar year, receive an additional $128.3 million in net cash proceeds at closing, apply 65% of net proceeds to the credit facility and the remaining 35% to subordinated debt, and continue investing in cloud-based computer networks and internal use software applications in fiscal 2027; it expects $520 million of backlog to provide a nice foundation of revenue somewhat evenly over the next 3 years, with about 40% of that backlog turning to revenue inside of fiscal '27, and anticipates transition-related costs of between approximately $13 million and $15 million, mostly in fiscal 2027 and some in 2028, annual cost savings ranging from approximately $16 million to $18 million, and unaudited pro forma adjusted EBITDA between approximately $37 million and $39 million for fiscal 2026, with the midpoint of the investment increased about $1 million and the midpoint of pro forma adjusted EBITDA increased by $4 million now to $38 million; management said it was not going to put out guidance, was not going to give guidance on '27 and '28, and should be in a position in the not-too-distant future to be giving guidance.
- Transformation Plan CompletedManagement stated that Comtech delivered on all four pillars of its transformation plan: restoring operational discipline, returning to positive operating cash flow, completing a comprehensive review of strategic alternatives, and strengthening the capital structure. The company described itself as materially stronger operationally, financially, organizationally and strategically.
- Sustained Positive Operating Cash Flow and Improved LiquidityComtech reported positive consolidated operating cash flow in each of the six quarters since January 2025, totaling more than $50 million, compared with operating cash flow losses in each of the preceding seven quarters and cumulative cash burn of more than $80 million. Fiscal 2026 operating cash flow was $25 million versus an outflow of $29.2 million in fiscal 2025, while total consolidated operating cash inflows were $37.4 million versus outflows of $8.3 million. Liquidity was $61.3 million at July 31, 2026, including $34 million of cash and $27.3 million of revolver capacity.
- Agreement to Sell Most Satellite and Space Communications AssetsComtech entered into a definitive agreement to sell most of its Satellite and Space Communications business to an affiliate of Gilat Satellite Networks for $157.5 million while retaining certain assets. The company had received $10 million at signing and expects to receive approximately $128.3 million in additional net cash proceeds at closing after sale-related expenses and a customary $3 million escrow obligation. Management expects the transaction to close by the end of calendar 2026, subject to regulatory approval and other closing conditions.
- Capital Structure Improvements and Lower Cost of CapitalAmendments with senior creditors, subordinated lenders and preferred stockholders removed the provision that could have accelerated redemption of the preferred stock upon certain senior-debt refinancings, extended preferred-stock redemption rights from October 2028 to October 2029, reduced senior-debt prepayment fees, extended subordinated-debt make-whole trigger dates, and provided a covenant holiday through July 2027. Management stated that these changes reduced the cost of capital and improved financial flexibility. Upon closing the Gilat transaction, 65% of net proceeds will prepay the senior credit facility and the remaining 35% will prepay subordinated debt.
- Improved Gross Margin and Adjusted EBITDAFiscal 2026 gross profit increased to $97.2 million from $95.2 million, while gross margin improved to 38.9% from 31.6%. Adjusted EBITDA increased to $20.6 million, or 8.3% of net sales, from $16.4 million, or 5.5%, in fiscal 2025. Excluding specified amortization, restructuring, stock-based compensation and CEO transition costs, operating income was $10.8 million, or 4.3% of net sales, versus $7.6 million, or 2.5%, on the comparable basis in fiscal 2025.
- Strong Fourth-Quarter Profitability and Cash Flow ImprovementFourth-quarter gross profit increased to $26.9 million from $26.2 million, and gross margin improved to 40.6% from 34.7%. Adjusted EBITDA increased to $9.2 million, or 13.9% of net sales, from $7.5 million, or 10.0%. Excluding specified items, operating income increased to $6.5 million, or almost 10% of net sales, from $5.1 million, or 6.7%. Cash provided by operating activities was $18.5 million versus $1.2 million of cash used in the prior-year quarter, marking the sixth consecutive quarter of positive operating cash flow.
- Allerium Contract Extension and Backlog GrowthAllerium secured a multiyear contract extension valued at more than $130 million from its largest customer, a leading U.S. telecommunications company. Fiscal 2026 bookings were $263.7 million, producing a 1.06 book-to-bill ratio. Funded backlog increased to $520.4 million at July 31, 2026, from $506.3 million a year earlier, and revenue visibility was approximately $862 million, including the unfunded value of certain multiyear contracts. Management expects approximately 40% of the funded backlog to convert to revenue within fiscal 2027.
- Recurring-Revenue Business ProfileApproximately 80% of Allerium's annual revenue is recurring, supported by long-standing relationships, long-term customer contracts and significant backlog. Management stated that Allerium holds the number-two position in U.S. Next Gen 9-1-1 core services and the number-three position in call handling, according to Frost & Sullivan, while its location technology supports more than 250 million wireless subscribers.
- Public Safety Deployment MilestonesIn Kentucky, Allerium migrated the Commonwealth's first public safety answering point in December and migrated 12 additional PSAPs within the first four months of operation, which management described as a first-in-market statewide-scale milestone. In Canada, the company completed more than 60 Next Gen 9-1-1 upgrades during the year and opened a purpose-built facility in Gatineau, Quebec, with support from the city and the province.
- New Mira and Coral Product OpportunitiesMira, Allerium's emergency call-handling solution, is in beta and received early customer feedback highlighting faster deployment, lower customer-premise-equipment requirements and reduced technical complexity. Coral is being used and proposed to connect multiple agencies and share emergency information over secure Next Gen 9-1-1 networks. Management stated that current networks use approximately 10% of available capacity, leaving 90% available for additional applications.
- AI and Network-Intelligence InitiativesManagement described AI applications including real-time call transcription, real-time translation, dispatcher training and AI assistance for complex emergencies, while stating that AI will not replace emergency dispatchers. The company also plans to apply its location and network expertise to broader carrier services as mobile networks become more software-driven and accessible through APIs.
- Retention and Expansion of Cybersecurity Training BusinessComtech will retain its cybersecurity training business and place it within Allerium. Management described it as profitable, supported by long-standing U.S. government programs, proprietary training methods and deep customer relationships. The company expects to extend the business into public safety, help secure 9-1-1 services and cross-sell it to existing state, local and carrier customers.
- Investment in Cloud and Internal SoftwareCapitalized internal-use software development increased from just under $4 million in fiscal 2025 to a little over $6 million in fiscal 2026. Total fiscal 2026 capital expenditures were $15.2 million, primarily for cloud-based computer networks, internal-use software applications, building improvements and the new Gatineau facility. Management expects continued investment in these initiatives in fiscal 2027.
- Expected Transition Savings and Higher Pro Forma EBITDAAfter the sale and approximately one year of transition implementation, management anticipates annual cost savings of approximately $16 million to $18 million. Estimated fiscal 2026 pro forma adjusted EBITDA increased to approximately $37 million to $39 million, with a midpoint of $38 million, which management said was $4 million higher than the estimate provided in June 2026.
- Additional Recent Customer AwardsThe company disclosed a $3 million order from the Canadian government for a Guardian deployment and more than $2.3 million from a domestic Tier 1 mobile network carrier for recurring security features and enhancements.
- Leadership Transition for the Allerium-Focused CompanyAmy Rothstein-Hovey joined as General Counsel and is expected to become Chief Legal Officer and Corporate Secretary after the transaction closes. Rich Nyren joined as Executive Vice President of Finance and is expected to become CFO after the filing of the first-quarter fiscal 2027 Form 10-Q. Management said both executives bring extensive governance, finance, capital markets and strategic leadership experience.
DE:CC6 Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Dec 03, 2026 | 2027 (Q1) | -0.38- | -0.6 | ― | ― |
| Oct 14, 2026 | 2026 (Q4) | -0.45-0.28 | -0.35 | 20.51% (+0.07) | |
| Jun 15, 2026 | 2026 (Q3) | -0.48-0.42 | -0.44 | 4.08% (+0.02) | |
| Mar 16, 2026 | 2026 (Q2) | -0.52-0.61 | -0.68 | 10.53% (+0.07) | |
| Dec 11, 2025 | 2026 (Q1) | -0.63-0.60 | -4.72 | 87.33% (+4.12) | |
| Nov 10, 2025 | 2025 (Q4) | -0.63-0.60 | -4.72 | 87.33% (+4.12) | |
| Jun 09, 2025 | 2025 (Q3) | -0.43-0.44 | -0.04 | -1125.00% (-0.40) | |
| Mar 12, 2025 | 2025 (Q2) | -0.64-0.68 | -0.95 | 28.97% (+0.28) | |
| Jan 13, 2025 | 2025 (Q1) | ―- | -0.1 | ― | |
| Oct 31, 2024 | 2024 (Q4) | -0.16-3.10 | -0.17 | -1731.58% (-2.93) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
