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Aviat Networks (AVNW)
NASDAQ:AVNW
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Aviat Networks (AVNW) AI Stock Analysis

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AVNW

Aviat Networks

(NASDAQ:AVNW)

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Neutral 54 (OpenAI - 4o)
Rating:54Neutral
Price Target:
$21.50
▼(-6.24% Downside)
Aviat Networks' overall score is influenced by its mixed financial performance and bearish technical indicators. While positive developments emerged from the earnings call, valuation concerns with a high negative P/E ratio and liquidity issues weigh heavily on the score.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong demand for Aviat's products and services, supporting long-term business expansion and market presence.
Leadership Strength
Enhancing leadership in product development can drive innovation and competitive advantage, crucial for sustaining growth in the tech industry.
North American Market Performance
Strong performance in a key market like North America underscores Aviat's ability to capitalize on regional opportunities, bolstering its revenue base.
Negative Factors
Profitability Challenges
Negative profitability margins highlight operational inefficiencies, which could hinder Aviat's ability to reinvest in growth and innovation.
Cash Flow Issues
Negative cash flow can limit Aviat's financial flexibility, affecting its capacity to fund operations and strategic initiatives without external financing.
CFO Resignation
Leadership changes, especially in financial roles, can disrupt strategic continuity and investor confidence, potentially impacting Aviat's financial management.

Aviat Networks (AVNW) vs. SPDR S&P 500 ETF (SPY)

Aviat Networks Business Overview & Revenue Model

Company DescriptionAviat Networks (AVNW) is a leading provider of wireless transport solutions, catering primarily to telecommunications service providers, government and defense agencies, and enterprises across various sectors. The company specializes in microwave networking solutions that enable high-capacity and reliable data transmission. Aviat Networks offers a comprehensive portfolio of products and services, including microwave routers, switches, and software solutions designed to optimize network performance and efficiency.
How the Company Makes MoneyAviat Networks generates revenue through the sale of its wireless transport products and related services. The company's primary revenue streams include the sale of microwave networking equipment and the provision of support and maintenance services. Aviat Networks also earns revenue from offering network design, installation, and optimization services. Significant partnerships with telecommunications providers and government entities are crucial to its earnings, as these collaborations drive demand for its advanced networking solutions. Additionally, Aviat Networks capitalizes on emerging trends in telecommunications, such as 5G deployment, which further bolsters demand for its high-capacity and reliable transmission solutions.

Aviat Networks Earnings Call Summary

Earnings Call Date:Sep 10, 2025
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture: while the company achieved record adjusted EBITDA and significant EPS growth, alongside a strong backlog and successful tariff mitigation, there were challenges in terms of a slight revenue decline and identified material weaknesses in control processes. The ongoing demand in private networks and new product introductions are positive, but international revenue challenges and control issues pose concerns.
Q4-2025 Updates
Positive Updates
Record Adjusted EBITDA
Achieved a record adjusted EBITDA of $15.1 million, marking the third consecutive quarter of record adjusted EBITDA, up 26.7% year-over-year.
Strong Non-GAAP EPS Growth
Non-GAAP EPS increased by 15% year-over-year to $0.83, reflecting strong operational performance.
Backlog Growth
Backlog increased by 11% to $323 million, signaling continued demand and setting a strong foundation for future growth.
Minimal Impact from Tariffs
Implemented measures to offset the impact of tariffs, resulting in minimal effect on profitability.
New Product Introduction
Launched a new European Telecom Standards Institute Compliant radio, opening new market opportunities with improved features.
Negative Updates
Revenue Decline
Total revenues decreased by 1.1% year-over-year to $115.3 million due to timing of international mobile network projects.
Material Weaknesses in Control Environment
Identified material weaknesses in the control environment, requiring further investment to improve resources and processes.
Challenges in International Revenue
International revenues decreased by 5.2% from the same period last year, driven by timing issues in mobile network projects.
Company Guidance
During Aviat Networks' Fourth Quarter Fiscal Year 2025 Earnings Call, the company provided several key metrics and guidance for the future. Aviat reported total revenues of $115.3 million with a non-GAAP gross margin of 34.7% and a record adjusted EBITDA of $15.1 million, marking a 26.7% increase year-over-year. The non-GAAP EPS was $0.83, showing a 15% rise from the previous year. For Fiscal Year 2026, Aviat projects full-year revenues between $440 million and $460 million, and adjusted EBITDA in the range of $45 million to $55 million. The company anticipates revenue growth to build throughout the year, with the first quarter being the lowest and the fourth quarter the strongest. Aviat also highlighted the strong demand in private networks and emerging market opportunities in mobile service providers, alongside growth in public safety and utility sectors.

Aviat Networks Financial Statement Overview

Summary
Aviat Networks presents a mixed financial landscape. Despite positive revenue growth, profitability margins are under pressure with a negative net profit margin. The balance sheet shows stability with manageable leverage, though recent losses are concerning. Cash flow challenges highlight potential liquidity issues.
Income Statement
65
Positive
Aviat Networks shows a mixed performance with a declining gross profit margin over the years, reaching 32.2% in TTM. The net profit margin is negative at -0.8% in TTM, indicating operational challenges. However, revenue growth is positive, with a 6.1% increase in TTM compared to the previous year. EBIT margin decreased to 1.3%, while EBITDA margin stands at 2.9%, suggesting room for operational efficiency improvements.
Balance Sheet
70
Positive
The company maintains a moderate debt-to-equity ratio of 0.30, indicating manageable leverage. Return on Equity is concerning at -1.3% in TTM, reflecting recent net losses. The equity ratio is strong at 40.8%, showing financial stability with a solid equity base compared to total assets.
Cash Flow
60
Neutral
Cash flow metrics show challenges, with free cash flow turning negative in TTM. The operating cash flow to net income ratio is unfavorable, and free cash flow to net income ratio indicates inefficiencies. Free cash flow growth is negative, signaling potential liquidity issues.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue433.13M434.61M408.08M344.43M302.96M274.91M
Gross Profit139.49M139.44M144.73M122.38M109.23M102.61M
EBITDA9.16M10.57M28.26M33.81M33.45M27.48M
Net Income-3.41M1.34M10.76M10.17M21.16M110.14M
Balance Sheet
Total Assets628.34M633.30M535.22M364.50M323.90M297.65M
Cash, Cash Equivalents and Short-Term Investments49.43M59.69M64.62M22.24M47.77M47.94M
Total Debt77.49M90.92M52.18M2.75M2.92M3.99M
Total Liabilities372.22M370.11M279.34M144.40M122.15M114.32M
Stockholders Equity256.12M263.18M255.88M220.10M201.75M183.34M
Cash Flow
Free Cash Flow-7.99M-7.25M27.86M-6.98M997.00K14.45M
Operating Cash Flow3.52M5.72M30.54M-1.64M2.79M17.30M
Investing Cash Flow-26.53M-28.53M-35.22M-11.95M-7.79M-2.85M
Financing Cash Flow17.01M0.0048.70M-681.00K-4.87M-8.05M

Aviat Networks Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price22.93
Price Trends
50DMA
22.69
Positive
100DMA
22.56
Positive
200DMA
20.86
Positive
Market Momentum
MACD
0.06
Positive
RSI
47.59
Neutral
STOCH
16.47
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVNW, the sentiment is Neutral. The current price of 22.93 is below the 20-day moving average (MA) of 23.14, above the 50-day MA of 22.69, and above the 200-day MA of 20.86, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 47.59 is Neutral, neither overbought nor oversold. The STOCH value of 16.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AVNW.

Aviat Networks Risk Analysis

Aviat Networks disclosed 34 risk factors in its most recent earnings report. Aviat Networks reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Aviat Networks Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
$781.98M33.208.16%19.67%12.32%
66
Neutral
$207.88M15.2114.47%5.06%29.66%
57
Neutral
$274.32M21.437.98%3.99%-0.93%3.10%
55
Neutral
$222.79M45.61-61.70%-10.99%
54
Neutral
$288.56M247.690.52%6.50%-88.62%
52
Neutral
$465.68M1,910.00-4.52%5.72%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AVNW
Aviat Networks
22.93
2.93
14.65%
AUDC
Audiocodes
9.52
0.23
2.48%
CRNT
Ceragon Networks
2.33
-0.26
-10.04%
FEIM
Frequency Electronics
32.09
19.80
161.11%
BKTI
BK Technologies
82.29
62.16
308.79%
INSG
Inseego
14.97
-1.10
-6.85%

Aviat Networks Corporate Events

Executive/Board Changes
Aviat Networks Promotes Gary Croke to Senior VP
Positive
Jul 3, 2025

On July 1, 2025, Aviat Networks, Inc. announced the promotion of Gary Croke to Senior Vice President of Product and Innovation. This move includes a salary increase, bonus opportunities, and a significant grant of Restricted Stock Units, reflecting the company’s commitment to strengthening its leadership in product development and innovation.

The most recent analyst rating on (AVNW) stock is a Buy with a $51.00 price target. To see the full list of analyst forecasts on Aviat Networks stock, see the AVNW Stock Forecast page.

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.Date of analysis: Aug 02, 2025