Comtech Telecommunications (CMTL)
NASDAQ:CMTL
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Earnings Data
Report Date
Oct 06, 2026After Close (Confirmed)
Period Ending
2026 (Q4)Consensus EPS Forecast
-0.59Last Year’s EPS
-0.39Same Quarter Last Year
Based on 0 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed a transformational narrative: management delivered operational improvements (fifth straight quarter of positive operating cash flow), higher gross margins, a strategic sale of the Satellite & Space business that will generate substantial proceeds (~$143M–$145M net) to materially reduce debt, and covenant relief that improves liquidity and flexibility. Allerium (public safety) shows encouraging recurring revenue, strong contract wins, and attractive margins. Offsetting these positives are lower consolidated net sales (~-16%), a meaningful decline in adjusted EBITDA (~-35%), continued significant subordinated debt and preferred liquidation preferences, and one-time/non-cash charges that widened the operating loss. Overall, the strategic deleveraging and margin/cash flow improvements materially strengthen the company’s outlook, though revenue and EBITDA declines and legacy capital structure obligations remain notable near-term headwinds.Company Guidance
Strategic Sale of Satellite & Space Business
Announced sale of most of the Satellite & Space (S&S) business for $157.5M (gross) with expected net proceeds of $143M–$145M to be used to reduce debt: 65% to prepay senior secured facility and 35% to prepay subordinated debt. Management positions the transaction as a defining milestone to sharpen focus on Allerium (public safety).
Consistent Positive Operating Cash Flow
Reported positive operating cash flows of $6.1M in Q3 FY2026 versus $2.3M in the prior-year quarter — marking the fifth consecutive quarter of positive operating cashflow (increase of ~165%).
Improved Gross Margin
Gross profit of $36.1M (34.0% of net sales) vs $38.9M (30.7% of net sales) in Q3 FY2025 — gross margin improved by ~3.3 percentage points, reflecting higher-margin product mix and operational efficiencies.
Enhanced Liquidity and Covenant Relief
Available liquidity approximately $49–50M (about $26M cash + remaining revolver capacity), plus credit amendments extending covenant suspension (net leverage, fixed charge coverage, minimum EBITDA) through July 31, 2027, improving financial flexibility and removing prior going-concern pressure.
Allerium Momentum and Recurring Revenue
Allerium (public safety) delivered key wins including Commonwealth of Kentucky NextGen 911 statewide deployment (12 PSAPs migrated), >1 dozen NextGen 911 upgrades in Canada, and funded orders including $6M (renewal NextGen 911), $2M and $1.6M from tier-one MNOs. Segment adjusted EBITDA $10.4M (~19% margin). Management notes a significant and growing portion of revenue is recurring.
S&S Operational Wins and Book-to-Bill Improvement
S&S booked awards including ~$7M troposcatter systems, ~$6M cybersecurity training/support, ~$4.9M antenna design/manufacture, and subsequent >$10M in EHF/LEO prototype orders. S&S book-to-bill improved to 1.04x (from 0.8x prior year), first quarter >1.0x since Q1 FY2024.
Pro Forma Backlog and Cost Savings
RemainCo pro forma funded backlog cited at $554M. Management expects approximately $12M in near-term cost/corporate savings from the transition, contributing to a reported pro-forma adjusted EBITDA around $34M (inclusive of those savings).
CMTL Earnings History
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
CMTL Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Jun 15, 2026 | $4.83 | $2.75 | -42.96% |
Mar 16, 2026 | $4.85 | $3.66 | -24.54% |
Dec 11, 2025 | $3.62 | $3.06 | -15.47% |
Sep 24, 2025 | $2.34 | $2.36 | +0.85% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Comtech Telecommunications (CMTL) report earnings?
Comtech Telecommunications (CMTL) is schdueled to report earning on Oct 06, 2026, After Close (Confirmed).
What is Comtech Telecommunications (CMTL) earnings time?
Comtech Telecommunications (CMTL) earnings time is at Oct 06, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is CMTL EPS forecast?
CMTL EPS forecast for the fiscal quarter 2026 (Q4) is -0.59.