Gilat (GSA) AI Stock Analysis

Gilat

(Frankfurt:GSA)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Revenue and EBITDA growthStrong quarterly revenue and adjusted EBITDA growth indicates continued demand for Gilat’s connectivity solutions and improving operating leverage. If sustained, this momentum can support reinvestment, strengthen market positioning, and expand earnings capacity over the next several quarters.

Negative Factors

Weak recent cash conversionNegative trailing free cash flow despite positive earnings indicates that reported profitability is not currently converting efficiently into cash. Continued working-capital absorption or investment needs could constrain self-funded growth and reduce flexibility for acquisitions or shareholder returns.

Gilat (GSA) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 578.13M
Dividend Yield: ―
Average Volume (3M): 599
Price to Earnings (P/E): 16.9
Beta (1Y): 1.23
Revenue Growth: 30.22%
EPS Growth: 8.87%
Country: Germany
Employees: 1,159
Sector: Technology
Sector Strength: 61
Industry: Communication Equipment

Gilat Business Overview & Revenue Model

Company Description

Gilat Satellite Networks Ltd., along with its affiliated companies, delivers advanced satellite-based broadband communication solutions both in Israel and across international markets. Its operations are structured across three primary divisions: Fix...

Gilat Earnings Call Summary

Earnings Call Date:Aug 04, 2026(Q2-2026)|% Change Since:-29.70%|Next Earnings Date:Nov 09, 2026

Earnings Call SentimentPositive

The earnings call presented a largely positive performance: strong top-line growth (17% YoY) and outsized adjusted EBITDA growth (31% YoY) with margin expansion, meaningful commercial and defense order flow, strategic acquisition that could materially scale Defense revenues, and healthy liquidity. Challenges include GAAP profitability pressure from one-time provisions, slight declines in non-GAAP gross margin and EPS dilution from an increased share count, working capital needs and currency headwinds, and pending regulatory and integration risks around the Comtech acquisition. On balance the positive operational momentum, orders, product progress (Sidewinder, SkyEdge, Viper Ka) and reiterated guidance outweigh the noted headwinds.

Positive Updates

Revenue Growth

Q2 2026 revenue of $122.7 million, representing 17% year-over-year growth (vs. $105.0M in Q2 2025); H1 2026 revenue of $233.1 million.

Negative Updates

GAAP Profitability Compression

GAAP operating income fell to $4.7 million in Q2 2026 from $5.7 million in Q2 2025; GAAP net income declined to $8.1 million ($0.10 diluted EPS) from $9.8 million ($0.17) in Q2 2025, reflecting higher GAAP operating expenses (up to $32.6M from $26.2M) including an earn-out provision related to the DataPath acquisition.

Company Guidance

Management reiterated 2026 guidance of $500–$520 million in revenue and $61–$66 million in adjusted EBITDA (about 13% revenue growth and 19% adjusted‑EBITDA growth at the midpoints), citing a strong Q2 ($122.7M revenue, $15.4M adjusted EBITDA, ~12.6% adjusted‑EBITDA margin vs ~11.2% a year ago) and H1 results of $233.1M revenue and $30.5M adjusted EBITDA; they also highlighted a healthy liquidity position of $159M and shareholders’ equity of $545M, while noting DSO of 110 days and an expected $3–$5M of incremental H2 operating expenses from unfavorable USD/ILS movements. They expect higher Defense shipments in H2, believe backlog and pipeline support the outlook, and said the Comtech Satellite & Space Communications acquisition (expected to more than double Gilat Defense revenues) is targeted to close toward year‑end subject to HSR, CFIUS and customary conditions.

Gilat Risk Analysis

Gilat disclosed 60 risk factors in its most recent earnings report. Gilat reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

3 New Risks

1.We identified material weaknesses in our internal control over financial reporting as of December 31, 2021, which we are still in the process of remediating. If we are unable to remediate these material weaknesses, or if we experience additional material weaknesses or other deficiencies in the future or otherwise fail to maintain an effective system of internal controls, we may not be able to accurately and timely report our financial results, which could cause shareholders to lose confidence in our financial and other public reporting, and adversely affect our share price.Q4, 2021

2.We are dependent on our management team, especially managers of our large entities around the world, as well as on our key employees, and the loss of one or more of them could harm our business and prevent us from implementing our business plan in a timely manner.Q4, 2021

3.We are dependent upon a limited number of suppliers for key components that are incorporated in our products, including those used to build our hub systems and VSATs, and may be significantly harmed if we are unable to obtain such components on favorable terms or on a timely basis. We are also affected by global supply chain disruptions and price increases caused partially by COVID-19 and may be affected by the military situation in Ukraine.Q4, 2021

Gilat Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

DE:GSA against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DGII	70Outperform	$2.76B	55.95	7.39%	―	20.26%	11.95%
HLIT	65Neutral	$1.12B	-24.58	-12.23%	―	-28.05%	-171.21%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AVNW	54Neutral	$259.36M	104.78	0.95%	―	1.17%	95.38%
ADTN	42Neutral	$532.07M	-20.55	-18.82%	―	15.75%	78.71%
NTGR	41Neutral	$614.25M	-15.59	-8.42%	―	-0.70%	-141.66%

* Technology Sector Average

Performance Comparison

DE:GSA and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:GSA	Gilat Satellite Networks	7.10	-5.60	-44.09%
ADTN	Adtran Inc	6.53	-3.90	-37.39%
AVNW	Aviat Networks	20.17	-4.28	-17.51%
DGII	Digi International	72.74	36.59	101.22%
HLIT	Harmonic	10.23	-0.44	-4.12%
NTGR	Netgear	22.60	-9.05	-28.59%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Gilat AI Stock Analysis