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Gilat Satellite Networks (GILT)
:GILT

Gilat (GILT) AI Stock Analysis

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GILT

Gilat

(NASDAQ:GILT)

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Outperform 70 (OpenAI - 4o)
Rating:70Outperform
Price Target:
$12.50
▼(-5.87% Downside)
Gilat's overall stock score reflects strong financial performance and a positive earnings call outlook, offset by mixed technical indicators and a relatively high valuation. The company's strategic initiatives and revenue growth are significant strengths, while challenges in maintaining margins and technical weakness are notable risks.
Positive Factors
Revenue Growth
The significant revenue growth underscores Gilat's expanding market reach and successful execution of strategic initiatives, positioning the company for sustained future growth.
Strategic Partnerships
The expansion into earth observation solutions reflects Gilat's ability to diversify its offerings and strengthen its position in the defense sector, enhancing long-term growth prospects.
AI Integration
Integrating AI into network management enhances operational efficiency and provides a competitive edge, supporting sustainable growth and innovation.
Negative Factors
Gross Margin Decrease
The decline in gross margins could impact profitability, suggesting challenges in cost management and pricing strategy that may affect long-term financial health.
Defense Segment Revenue Decline
A decline in defense segment revenue indicates potential vulnerabilities in this market, which could affect Gilat's overall revenue stability and growth.
Cash Conversion Efficiency
Lower cash conversion efficiency suggests potential issues in translating earnings into cash, which could impact liquidity and financial flexibility over time.

Gilat (GILT) vs. SPDR S&P 500 ETF (SPY)

Gilat Business Overview & Revenue Model

Company DescriptionGilat Satellite Networks Ltd. (GILT) is a leading provider of satellite-based communication solutions, primarily serving the telecommunications, aviation, and maritime sectors. The company specializes in the design and manufacture of ground segment equipment and services that enable high-speed data transmission via satellite. Gilat's core products include satellite modems, antennas, and network management systems, which facilitate broadband connectivity for a variety of applications, including internet access in remote locations, cellular backhaul, and emergency communications.
How the Company Makes MoneyGilat generates revenue primarily through the sale of its satellite communication equipment and systems, alongside recurring revenue from service contracts and maintenance agreements. Key revenue streams include the sale of hardware such as satellite modems and antennas, as well as software and network management solutions. The company also benefits from long-term contracts with telecommunications operators and governmental agencies, which provide stable cash flow. Strategic partnerships with major satellite operators and technology companies further enhance Gilat's market presence and contribute to its earnings through collaborative projects and joint ventures.

Gilat Earnings Call Summary

Earnings Call Date:Nov 12, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Feb 17, 2026
Earnings Call Sentiment Positive
The earnings call presented a strong performance in revenue growth and successful strategic initiatives, particularly in the commercial and defense segments. However, challenges such as a decline in defense segment revenue and decreased gross margins due to Stellar Blue's integration were noted. Despite these issues, the outlook remains positive with increased guidance for the year.
Q3-2025 Updates
Positive Updates
Strong Revenue and EBITDA Growth
Third-quarter revenues reached $117.7 million, a 58% increase year over year. Adjusted EBITDA was $15.6 million, 46% above the same quarter last year.
Successful Private Placement
$66 million was raised from institutional and accredited investors, demonstrating confidence in Gilat's strategy and performance.
AI Integration in Network Management
First-to-market integration of AI into Gilat's network management system, enhancing efficiency and insight in satellite network operations.
Significant Wins in Defense and Commercial Segments
Gilat Defense received over $14 million in orders from the U.S. Army and the Department of Defense. Commercial segment saw a $42 million order for SkyEdge IV.
Positive Outlook and Guidance Increase
Full-year revenue guidance was increased to between $445 million and $455 million, representing a 47% growth at the midpoint.
Negative Updates
Defense Segment Revenue Decline
Q3 2025 revenue for the Defense segment was $24 million compared to $31 million in the same quarter last year.
Gross Margin Decrease
GAAP gross margin in Q3 2025 was 30% compared to 37% in Q3 2024, primarily due to lower margins at Stellar Blue.
Impact of U.S. Government Shutdown
Delayed orders in the defense segment due to the U.S. government shutdown, potentially affecting future quarters.
Company Guidance
During Gilat Satellite Networks Ltd.'s Third Quarter 2025 Results Conference Call, the company provided an optimistic outlook, revising its full-year guidance upwards due to strong performance and visibility into the remainder of the year. Revenue guidance was narrowed to between $445 million and $455 million, reflecting a year-over-year growth of approximately 47% at the midpoint. Adjusted EBITDA guidance was also refined to between $51 million and $53 million, indicating a 23% increase at the midpoint. In the third quarter, the company reported revenues of $117.7 million, a 58% increase from the previous year, and an adjusted EBITDA of $15.6 million, up by 46%. Key contributors to this growth included a $66 million private placement, a robust cash position, and strategic investments in AI-driven automation for their network management systems. Gilat also highlighted significant orders across its segments, including $42 million for SkyEdge IV systems and $60 million for Stellar Blue's Sidewinder ESA IFC terminal. The company is focused on expanding its market presence and advancing next-generation connectivity, positioning itself for continued growth into 2026.

Gilat Financial Statement Overview

Summary
Gilat demonstrates solid financial health with strong revenue growth and a stable balance sheet. While profitability margins have faced some pressure, the company maintains a conservative leverage position and strong equity base. Cash flow generation has improved significantly, although there are areas for enhancing cash conversion efficiency.
Income Statement
72
Positive
Gilat's income statement shows a strong revenue growth rate of 12.32% in the TTM, indicating a positive trajectory. The gross profit margin is healthy at 34.03%, although it has slightly decreased from previous years. The net profit margin is moderate at 6.41%, reflecting stable profitability. However, the EBIT and EBITDA margins have declined compared to prior periods, suggesting potential pressure on operational efficiency.
Balance Sheet
78
Positive
The balance sheet is robust with a low debt-to-equity ratio of 0.21, indicating conservative leverage. The return on equity is reasonable at 7.40%, showing effective use of equity capital. The equity ratio is strong, reflecting a solid capital structure with a significant portion of assets financed by equity.
Cash Flow
68
Positive
Cash flow analysis reveals a substantial free cash flow growth rate of 56.70% in the TTM, highlighting improved cash generation. The operating cash flow to net income ratio is low at 0.20, suggesting potential challenges in converting income into cash. The free cash flow to net income ratio is healthy at 0.72, indicating good cash flow relative to earnings.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.02B305.45M266.09M239.84M214.97M166.13M
Gross Profit321.62M113.33M104.94M86.91M71.27M41.38M
EBITDA116.96M43.26M41.83M18.74M11.45M46.35M
Net Income63.59M24.85M23.50M-5.93M-3.03M35.08M
Balance Sheet
Total Assets675.75M429.75M426.89M385.41M367.74M412.19M
Cash, Cash Equivalents and Short-Term Investments154.88M119.38M103.96M86.59M84.02M88.75M
Total Debt65.03M8.57M14.90M3.83M4.10M8.90M
Total Liabilities285.15M125.31M152.20M141.29M119.41M161.80M
Stockholders Equity390.60M304.44M274.69M244.13M248.32M250.39M
Cash Flow
Free Cash Flow117.37M25.06M21.20M-1.98M9.97M38.44M
Operating Cash Flow148.36M31.67M31.94M10.81M18.90M43.16M
Investing Cash Flow-265.58M-6.61M-12.69M-8.16M-11.09M-4.72M
Financing Cash Flow389.97M-8.11M-1.59M0.00-39.00M-24.09M

Gilat Technical Analysis

Technical Analysis Sentiment
Positive
Last Price13.28
Price Trends
50DMA
12.98
Negative
100DMA
11.26
Positive
200DMA
8.91
Positive
Market Momentum
MACD
-0.24
Negative
RSI
50.46
Neutral
STOCH
91.85
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GILT, the sentiment is Positive. The current price of 13.28 is above the 20-day moving average (MA) of 11.71, above the 50-day MA of 12.98, and above the 200-day MA of 8.91, indicating a neutral trend. The MACD of -0.24 indicates Negative momentum. The RSI at 50.46 is Neutral, neither overbought nor oversold. The STOCH value of 91.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GILT.

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 0 New Risks

Gilat Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$1.71B42.726.71%1.46%78.77%
74
Outperform
$1.19B24.6211.38%1.93%-43.22%
70
Outperform
$801.90M31.826.95%29.67%41.90%
66
Neutral
$269.84M20.175.24%10.89%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
50
Neutral
$683.39M-48.44%14.33%83.32%
49
Neutral
$756.08M-4.94%2.95%-228.28%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GILT
Gilat
12.12
5.99
97.72%
ADTN
Adtran
8.79
0.12
1.38%
AVNW
Aviat Networks
21.14
3.12
17.31%
DGII
Digi International
46.30
12.42
36.66%
HLIT
Harmonic
10.45
-2.80
-21.13%
NTGR
Netgear
26.58
1.35
5.35%

Gilat Corporate Events

Gilat Secures $10 Million Order for Earth Observation Solution
Dec 2, 2025

On December 2, 2025, Gilat Satellite Networks Ltd. announced a significant order valued at approximately $10 million for a Direct Downlink Earth Observation Solution. This order, to be delivered within the next 12 months, marks an expansion of Gilat Defense’s capabilities into the earth observation and geospatial insights domain. The solution will provide real-time data for intelligence and surveillance, enhancing Gilat’s market position by offering a transportable direct downlink terminal for secure and timely delivery of insights in remote locations.

Gilat Secures $6 Million in Orders for LEO Constellations Support
Nov 20, 2025

On November 20, 2025, Gilat Satellite Networks announced receiving over $6 million in orders for its Wavestream Gateway Solid State Power Amplifiers (SSPAs) to support Low Earth Orbit (LEO) constellations. These orders highlight the strong demand for Gilat’s technology, which ensures robust and reliable connectivity for next-generation satellite networks. The deliveries are expected over the next 12 months, reinforcing Gilat’s position as a key player in the satellite networking industry.

Gilat Satellite Networks Reports Strong Q3 2025 Results and Raises Guidance
Nov 12, 2025

On November 12, 2025, Gilat Satellite Networks Ltd. announced its unaudited third-quarter results, highlighting a 58% increase in revenues to $117.7 million and a rise in adjusted EBITDA to $15.6 million. The company raised its full-year 2025 revenue and adjusted EBITDA guidance, reflecting strong financial performance and investor confidence. Notable achievements include securing multi-million dollar orders from the U.S. and Israeli defense sectors, significant commercial wins, and a $66 million private placement. These developments underscore Gilat’s competitive edge and potential for future growth in the satellite communications industry.

Gilat Secures $7 Million Order for In-Flight Connectivity
Nov 5, 2025

On November 5, 2025, Gilat Satellite Networks Ltd. announced a $7 million order for its Aerostream 60W Ka-band Wideband BUCs, which will be used in a next-generation In-Flight Connectivity solution for commercial aircraft. This order highlights Gilat’s expertise in delivering high-efficiency RF solutions for airborne connectivity, following successful line-fit certification and a joint qualification program completed in the third quarter of 2025.

Gilat to Announce Q3 2025 Financial Results on November 12
Oct 22, 2025

On October 22, 2025, Gilat Satellite Networks Ltd. announced that it will release its third quarter 2025 financial results on November 12, 2025. Following the release, the company’s CEO and CFO will discuss the results and business achievements in a conference call and webcast. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and strategic direction.

Gilat Secures $42 Million Orders for SkyEdge IV Platform
Oct 15, 2025

On October 15, 2025, Gilat Satellite Networks Ltd. announced that it received $42 million in orders from a leading satellite operator for its multi-orbit SkyEdge IV platform. These orders are expected to significantly expand the global deployment of the SkyEdge IV platform, which supports critical applications such as In-Flight Connectivity (IFC), maritime mobility, and enterprise broadband. The growing demand for free Wi-Fi and seamless, high-speed broadband is driving global investment in satellite infrastructure, positioning Gilat as a key player in the expansion of connectivity solutions.

Gilat Secures $7 Million U.S. Army Contract for SATCOM Terminals
Sep 30, 2025

On September 30, 2025, Gilat Satellite Networks Ltd. announced that its subsidiary, Gilat DataPath, received orders exceeding $7 million to supply Transportable SATCOM Terminals to the U.S. Army. This order includes the DKET 3421 transportable terminal, known for its robust and scalable design, which will enhance mission-critical connectivity for the U.S. Army. The deliveries are expected to be completed by the end of 2025. This development underscores the U.S. Army’s trust in Gilat’s technology and strengthens Gilat’s position in the defense communications market.

Gilat Completes $65 Million Private Placement in Israel
Sep 16, 2025

On September 16, 2025, Gilat Satellite Networks Ltd. completed a private placement of 7,058,820 Ordinary Shares to Israeli institutional and accredited investors, raising approximately $65 million. This strategic move, announced earlier on September 9, 2025, was conducted under a registration exemption and is expected to enhance the company’s financial position, although the shares are subject to transfer restrictions and will not be offered in the U.S. without proper registration.

Gilat Secures $65 Million in Private Placement with Israeli Investors
Sep 9, 2025

On September 9, 2025, Gilat Satellite Networks Ltd. announced it had secured commitments from Israeli institutional and accredited investors for a private placement of 7,058,820 Ordinary Shares at a price of $9.35 per share, raising approximately $65 million after expenses. This issuance will represent about 11% of the company’s outstanding shares post-transaction, with proceeds intended for general corporate purposes. The private placement is restricted to Israeli investors and will not be registered under U.S. securities laws, highlighting Gilat’s strategic focus on its domestic market amidst ongoing geopolitical tensions.

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: Dec 03, 2025