Q1 2026 Gilat Satellite Networks Ltd Earnings Call

May 13, 2026

Speaker #1: Ladies and gentlemen, thank you for standing by. Welcome to Gilad's first quarter 2026 results conference call. All participants are at present in listen-only mode.

Speaker #1: Following the management's former presentation, instructions will be given for the question-and-answer session. For operator assistance during the conference, please press star 0. As a reminder, this conference is being recorded.

Speaker #1: May 13, 2026. By now, you should have all received the company's press release. If you have not received it, please view it in the news section of the company's website www.gilad.com.

Speaker #1: I would now like to hand over the call to Mr. Sanjay Hari of Alliance Advisors IR. Mr. Hari, would you like to begin, please?

Speaker #2: Thank you, Hela. Good morning, everyone. Thank you for joining us for Gilad's satellite networks earnings conference call for the first quarter of 2026. With us on the call today are Mr. Adi Swadia, Gilad's CEO, and Mr. Gail Benjamini, Gilad's chief financial officer.

Speaker #2: Before turning the call over to management, I would like to remind everyone that some statements made during this conference call contain forward-looking statements based on current expectations.

Speaker #2: Actual results could differ materially from those projected as a result of various risks and uncertainties. The potential risks and uncertainties that could cause actual results to differ materially include uncertain global economic conditions, reductions in revenues from key customers, delays or reductions in US and foreign military spending, acceptance of the company's new products on a global basis, and disruptions or delays in its supply of raw materials and components due to business conditions, global conflicts, weather, or other factors not under the company's control.

Speaker #2: The company cautions investors to not place undue reliance on forward-looking statements which reflect the company's analysis as of today's date. The company undertakes no obligation to publicly update forward-looking statements to reflect subsequent events or circumstances.

Speaker #2: Further information on these factors and other factors that could affect Gilad's financial results is included in the company's filings with the Securities and Exchange Commission, including its latest quarterly report.

Speaker #2: In addition, on today's call, management will refer to certain non-GAAP financial measures that management considers to be useful and differ from GAAP. These non-GAAP measures should be considered supplemental to corresponding GAAP figures.

Speaker #2: All participants are at present in listen-only mode. Following the management's formal presentation, instructions will be given for the question-and-answer session. For operator assistance during the conference, please press star zero.

Speaker #2: With that, I'd like to turn the call now to Gilad's CEO, Adi Swadia. Please go ahead, Adi.

Speaker #3: Thank you, Sanjay, and good day, everyone. Thank you for joining us today to discuss Gilad's first quarter results. I am pleased to report that we opened the year with solid execution across the business, reflecting strong performance.

Speaker #2: As a reminder, this conference is being recorded. May 13, 2026. By now, you should have all received the company's press release. If you have not received it, please view it in the news section of the company's website www.gilat.com.

Speaker #3: Our results underscore the competitiveness of our portfolio across the satellite communication landscape and strong year-over-year revenue growth and profitability. As satellite operators and government customers advance next-generation programs from VHDS satellites to NGSO constellations, we are seeing our capabilities translate into new orders extending customer engagement and growing opportunities.

Speaker #2: I would now like to hand over the call to Mr. Sanjay Hari of Alliance Advisors IR. Mr. Hari, would you like to begin, please?

Speaker #2: Thank you, Gila. Good morning, everyone. Thank you for joining us for GILAT satellite networks earnings conference call for the first quarter of 2026. With us on the call today are Mr. Adi Sfadia, GILAT CEO, and Mr. Gil Benyamini, GILAT's chief financial officer.

Speaker #3: This momentum is closely tied to the progress we continue to make in technology development as we invest in advanced and interoperable systems designed to support the evolving requirements of next-generation satellite communication networks.

Speaker #3: During the quarter, Gilad defense conducted a live demonstration of its virtualized SATCOM gateway modem architecture, a satellite 2026 in Washington, DC, in collaboration with Amazon AWS, SCS Space and Defense, and the Wave Consortium.

Speaker #3: The demonstration showcased a flexible cloud-based and software-defined gateway architecture designed to improve scalability, resiliency, and agility for defense and government networks, and represent a significant step forward in our future SATCOM gateways will be deployed and operated.

Speaker #3: In parallel, we successfully conducted a 5G non-terrestrial network demonstration, highlighting how satellite systems can integrate with future 5G-based architectures. Together, this milestone reflects our continued investment in technology solutions that will support next-generation satellite and hybrid networks across both commercial and defense markets.

Speaker #3: First quarter revenues reached $110.5 million, 20% year-over-year revenue growth, and first quarter adjusted EBITDA reached $15.1 million, almost double the same quarter last year.

Speaker #2: Further information on these factors and other factors that could affect GILAT's financial results is included in the company's filings with the Securities and Exchange Commission, including its latest quarterly report.

Speaker #3: Overall, the first quarter reflects continued traction and position us well for the remainder of the year. Now, on to the business review. I will start with the defense business.

Speaker #3: We are seeing significant increase in interest for transportable and portable SATCOM solutions driven by the growing importance of mobility, rapid deployment, and operational flexibility.

Speaker #2: With that, I'd like to turn the call now to GILAT CEO Adi Sfadia. Please go ahead, Adi.

Speaker #3: As militaries and government users increasingly operate in dynamic and contested environments, the value proposition of highly mobile, resilient SATCOM solutions continues to strengthen. This demand translates into meaningful order during the quarter.

Speaker #3: Thank you, Sanjay, and good day, everyone. Thank you for joining us today to discuss GILAT's first. Results. I am pleased to report that we opened the year with solid.

Speaker #3: The business, reflecting strong performance. Our results underscore the competitiveness of our portfolio across the satellite communication landscape and strong year-over-year revenue growth and profitability.

Speaker #3: In February, we announced a $16 million order from a European Ministry of Defense for our decade transportable solutions reinforcing our leadership in high-performance, rapidly deployed systems.

Speaker #3: A satellite operator's and government customers' advanced next-generation programs from VHTS satellites to NGSO constellations we are seeing our capabilities translate into new orders expanding customer engagement and growing opportunities.

Speaker #3: This order also reflects increased penetration into the European market driven in part by the evolving geopolitical environment and higher defense readiness requirements across the region.

Speaker #3: In Israel, we continue to strengthen our relationship with the Ministry of Defense. During the quarter, we announced an order of $9 million further expanding the deployment of our solution and reinforcing our long-term strategic partnership.

Operator: Hi, may I have your name, please? Hello, David Brown. Your phone number, please? Sure. Just a second. It's 2129603697. 3697? That's right, yeah. Your company name, please? Aira. Thank you very much. Enjoy your call. Thank you. Ladies and gentlemen, thank you for standing by. The conference will begin shortly. Ladies and gentlemen, thank you for standing by. Welcome to Gilat's Q1 2026 results conference call. All participants are at present in listen only mode. Following the management formal presentation, instructions will be given for the question and answer session.

Speaker #3: The order includes next-generation defense modems built for mission-critical operations to ensure reliable connectivity across a wide range of operational scenarios. During the quarter, we received an order for over $7 million for a new endurance stream solid-state power amplifiers to support the US defense program.

Speaker #3: During the quarter, GILAT defense conducted a live demonstration of its virtualized SATCOM gateway model architecture at satellite 2026 in Washington, DC, in collaboration with Amazon AWS, SCS Space and.

Speaker #3: The demonstration showcased a flexible defined gateway architecture designed to improve scalability, resiliency, and agility for defense and government networks and represent a significant step forward in our future SATCOM gateways will be deployed and operated.

Speaker #3: Endurance stream delivers reliability and operational resilience, required for mission-critical environments as defense customers transition away from legacy technologies. Also, in the United States, we continue our long-standing support of the US Army.

Speaker #3: During the quarter, we received an order of approximately $6 million for field and technical services reflecting our continued reliance on Gilad's defense to support mission-critical SATCOM operations and ensure system availability in the field.

Speaker #3: In parallel, we successfully conducted a 5G non-terrestrial network demonstration highlighting how satellite systems can integrate with future 5G-based architectures. Together, this milestone reflects our continued investment in technology solutions that will support next-generation satellite and hybrid networks across both commercial and defense markets.

Speaker #3: Our defense pipeline remains strong, supported by sustained global demand and our continued investment in R&D, advanced system architectures, and customer engagement. Turning to our commercial business.

Speaker #3: In the first quarter, our commercial business continued to show solid performance supported by ongoing customer engagement and steady execution across our programs. As satellite operators and service providers move forward with next-generation network, on platforms that offer scalability, flexibility, and multi-orbit support for our mobility applications.

Speaker #3: Gilad remains well-positioned within this evolving landscape. In-flight connectivity remains one of our key growth engines. Demand for IFC continues to increase driven by our airline expectations for consistent, high-performance connectivity growing passenger usage and the industry's transition towards NGSO and multi-orbit networks.

Speaker #3: This environment strongly aligns with Gilad's technology roadmap and product portfolio. As of today, we have delivered approximately 750 Sidewinder ESA terminals of which more than 570 are already installed and in service.

Speaker #3: During the quarter, Boeing and Gilad reached an important key in-cabin milestone to offer Sidewinder ESA terminal as a line fit solution available to airlines and IFC service providers.

Speaker #3: Certification is on track and deliveries of the first units are expected in Q4 this year. In addition, we are starting a process to achieve a line fit availability with Airbus.

Speaker #3: During the quarter, we announced $39 million in orders for our Sidewinder ESA terminal. This awards reinforce the market confidence in its performance, low-profile design, and multi-orbit capability.

Speaker #3: We have also expanded our ESA portfolio with the ESR 2030, which is now commercially available. ESR 2030 is designed to support commercial and defense applications over the OneWeb LEO constellation complementing our Sidewinder offering and broadening our addressable market.

Speaker #3: With growing interest in LEO services, we believe ESR 2030 positions us well to support new programs as operators move from network deployments towards commercial service.

Speaker #3: We also received the multi-million dollar order from a leading IFC integrator for solid-state power amplifiers to support connectivity solutions on commercial aviation aircraft. Across the industry, operators are operating grounded infrastructure to support a wider range of services across multiple orbits.

Speaker #3: SkyH4 is built for this shift providing a scalable software-defined platform that enables efficient management of complex multi-service satellite networks. A recent example is our strategic multi-million dollar partnership with Nelcor in India to deploy SkyH4 in support of India's first KA band service deployment using the JSAT-N2 HTS satellite.

Turning to our Commercial Business in the first quarter, our Commercial Business continued to show solid performance supported by ongoing customer engagement, and steady execution across our programs.

It satellite operators and service providers. Move forward with Next Generation Network.

As satellite operators and service providers. Move forward with Next Generation Network.

Speaker #3: India represents an important growth market for Gilad and a central part of our expectation expansion strategy in the Asia-Pacific region. The deployment will enable scalable, high-performance connectivity across multiple services, including IFC, cellular backbone, and enterprise connectivity delivering the performance and flexibility required for KA deployments.

They are increasing focused on platform that offers scalability. Flexibility and multi, support for our Mobility applications.

They are increasing focused on platform that offers scalability. Flexibility and multi support for Mobility applications.

Gilat remains well, positioned within this evolving. Landscape in Flight connectivity remains 1 of our key growth engines.

Speaker #3: Overall, the commercial pipeline remains healthy, supported by continued IFC demand alongside longer-term investments in advanced satellite network architectures. Our Peru business continues to execute very well with strong operational progress across our national connectivity programs.

Networks.

Demand for IFC, continues to increase driven by a airline expectations for consistent, high performance connectivity, growing passenger usage and the industry's transition towards mgso and multi orbit Networks.

This is environments strongly aligned with gilad technology road map and product portfolio.

This is environments strongly aligned with Galactic technology road map and product portfolio.

As of today, we have delivered approximately 750 Sidewinder Easter terminals.

As of today, we have delivered approximately, 750 Sidewinder research terminals.

Speaker #3: We expect to complete an upgrade project that will announce a few quarters ago ahead of schedule in the second quarter of 2026 demonstrating Gilad Peru's ability to deliver large-scale, complex infrastructure projects reliably and on time.

Of which more than 570 are already installed and in service.

Already installed and in service.

Speaker #3: This results strengthen our position as a trusted partner for national digital inclusion initiatives and provide a solid foundation for continued activity in the region.

During the quarter, boing and gilat reached an important key in Cabin. Milestone to offer Sidewinder is a terminal. As a line fit solution available to Airlines and IFC. Service providers certification is on track and deliveries of the first units are expected in Q4 this year.

During the quarter. Boing and gilat reached an important key in Cabin. Milestone to offer side. Window is a terminal as a line fit solution available to Airlines and IFC. Service providers certification is on track and deliveries of the first units are expected in Q4 this year.

Speaker #3: We expect additional large RFPs and follow-on orders during the year. I am pleased to say that we continue to have a strong backlog and a healthy pipeline.

In addition, we are starting a process to achieve a line fit availability with Airbus.

Speaker #3: Therefore, we feel comfortable reiterating our 2026 annual guidance. We expect 2026 revenues of between $500 and $520 million and adjusted EBITDA of between $61 to $66 million.

Speaker #3: Technology development remains a core pillar of our strategy across defense and commercial markets. During the quarter, we advanced software-defined system capabilities that enabled more scalable and resilient satellite networks while also continuing our work on integrating satellite networks with future 5G NTN frameworks.

During the quarter, we announced 39 million in orders for our Sidewinder reset terminal this Awards, reinforced the market confidence in its performance, low profile design and multi orbit capability. We have also expanded our ASA portfolio with the ESR 203030, which is now commercially available. ESR 2030 is designed to support commercial and defense applications over the 1. Web, Leo constellation, complementing our Sidewinder offering and broadening our addressable Market.

During the quarter, we announced 39 million in order for our Sidewinder reset terminal. This Awards, reinforced the market confidence in its performance, low profile design and multi orbit capability. We have also expanded our ASA portfolio with the ESR 203030, which is now commercially available. ESR 2030 is designed to support commercial and defense applications over the 1, web, Leo constellation, complementing our side when they're offering and broadening our addressable Market.

Was going interest, in Leo Services, we believe yesterday 2030 position as well to support new programs.

Speaker #3: Together, these efforts support next-generation satellite systems serving defense, mobility, and commercial applications. Demand across our core markets continues to develop favorably and our strategic focus on mobility, multi-orbit architectures, and next-generation systems is translating into tangible momentum across our business.

And as operators move from network deployment towards commercial service,

with growing interest in Leo Services, We Believe yes, our 2030 position as well to support new programs and as operators move from Network deployment towards commercial service,

We also received a multi-million dollar orders from a leading IFC integrator for Solid State power amplifiers to support connectivity Solutions on Commercial aviation aircraft.

We also received a multi-million dollar order from a leading IFC integrator for Solid Tech power amplifiers to support connectivity solutions on commercial aviation aircraft.

Across the industry. Operators are operating ground infrastructure to support a wide range of services across multiple orbits.

Speaker #3: Gilad Defense continues to see strong customer interest as defense and government organizations expand investment in mobile, resilient SATCOM capabilities. We continue to see growing engagement across the United States, Europe, and Israel supported by robust pipeline and ongoing investment in advanced architectures that address evolving defense requirements.

Across the industry. Operators are operating grounded infrastructure to support the wider range of services. Across multiple orbits, Sky 4 is built for this shift. Providing a scalable software defined platform that enable efficient management of complex, multi-service satellite Networks.

Sky 4 is built for this shift. Providing a scalable software, defined platform that enable efficient management of complex multi-service satellite Networks.

a recent example is our strategic multi-million dollar partnership with NCO in India to deploy skies for in support of India's, first Ka band service deployment using the jet N2 HTS satellite,

Speaker #3: IFC remains one of our key growth engines supported by increasing airline demand and continued adoption of ESA-based solutions. We continue to maintain a strong balance sheet and financial flexibility while remaining disciplined in our capital allocation.

Speaker #3: Mergers and acquisitions continue to be a key element of our defense and long-term growth strategy with a focus on opportunities that complement our core technologies strengthen our defense portfolio, and support sustainable value creation.

India represent an important gross market for gilat and a central part of our expectation expansion strategy in the asia-pacific region. The deployment will enable scalable high performance connectivity across multiple services, including IFC several back and Enterprise connectivity. Delivering the performance and flexibility required for Ka deployments.

India represent an important growth market for gilat in a central part of our expectation. The expansion strategy in the asia-pacific region. The deployment will enable scalable high performance connectivity across multiple services, including IFC, several beckon and Enterprise connectivity. Delivering the performance and flexibility required for Ka, deployments.

Speaker #3: Overall, we delivered a solid start to 2026. Validating the strength of our diversified portfolio across our business. With growing backlog, a healthy pipeline, and a continued investment in technology leadership, Gilad is well positioned to sustain growth and create long-term value.

Overall the commercial pipeline remain healthy supported by continued. IFC demand alongside longer-term investments in advanced satellite Networks architectures.

Overall, the commercial pipeline remains healthy, supported by continued IFC demand alongside longer-term investments in advanced satellite network architectures.

Our Peru business continued to execute very well with strong. Operational progress across our national connectivity programs.

To execute very well with strong. Operational progress across our national connectivity programs.

Speaker #3: And with that, I will hand over the call to Gilbin Yemeni, our CFO. Gil, please go ahead.

Speaker #2: Thank you, Adin. Good morning and good afternoon to everyone. Before I dive into the numbers, I would like to remind everyone that our financial results are presented in both gap and non-gap basis.

We expect to complete the upgrade project, that will announced a few quarters ago, ahead of schedule. In the second quarter of 2026 demonstrating gilat peruse ability to deliver large scale, complex infrastructure, projects reliably and on time.

We expect to complete the upgrade project that we have announced a few quarters ago, ahead of schedule in the second quarter of 2026 demonstrating gilat peruse ability to deliver large scale, complex infrastructure, projects reliably and on time.

This results, strengthen our position as a trusted partner for National digital inclusion initiative and provide a solid foundation.

Speaker #2: I will now walk through our financial highlights for the first quarter of 2026. As Adin mentioned, we delivered a strong first quarter with 20% revenue growth, margin expansion, and a significant increase in profitability, reflecting continued execution across all three segments and continued momentum into 2026.

This results, strengthen our position as a trusted partner for National digital inclusion initiative and provide a solid foundation for continued. Activity in the region, we expect additional large rfps and follow on orders during the year.

for continued activity in the region, we expect additional large rfps and follow on orders during the

I am pleased to say that we continue to have a strong backlog and a healthy pipeline. Therefore we feel comfortable reiterating our 2026 annual guidance.

Year, I am pleased to say that we continue to have a strong backlog and a healthy pipeline. Therefore we feel comfortable reiterating our 2026 annual guidance.

Speaker #2: Revenues for the first quarter were $110.5 million, representing a 20% growth compared with $92 million in Q1 '25. The growth was driven by all three segments.

we expect 2026 revenues of between 500, and 520 million, and adjust the DB now between 61 to 66 million,

We expect 2026 revenues of between 500, and 520 million and adjusted even now between 61 to 66 million.

Technology development remained a core pillar of our strategy across defense and commercial markets.

Technology development remained, a core pillar of our strategy across defense and Commercial markets.

Speaker #2: The revenues for the commercial segments in Q1 '26 were $72.8 million compared with $64.2 million in the same quarter last year. The 13% growth year over year was primarily driven by the in-flight connectivity vertical.

During the quarter, we advance softly Define system capabilities that enable more scalable and resilient satellite networks. While also continuing our work

on integrating satellite network with future 5G, NTN Frameworks together, these efforts support Next Generation satellite system serving defense mobility and Commercial applications.

During the quarter, we Advanced software Define system capabilities that enable most scalable and resilient satellite networks. While also continuing our work on integrating satellite networks with future 5G npn Frameworks together. These efforts support Next Generation satellite system serving defense mobility and Commercial applications.

Speaker #2: Revenues for the defense segment in the first quarter of '26 were $25.4 million, 10% higher than $23 million in the same quarter last year.

Speaker #2: And Q1 '26 revenues for Peru segments were $12.3 million compared with $4.8 million in Q1 '25. The increase was mainly driven by the higher revenues related to the new upgrade projects in four of the six regions in which we operate, reflecting the continued expansion of our long-term Peru programs, which provide multi-year recurring revenue streams.

Demand, of course, our core markets continue to develop favorably and our strategic focus on mobility in multi orbit architectures. And Next Generation systems is translating into tangible momentum across our business.

Demand, of course, in our core markets continues to develop favorably, and our strategic focus on mobility and multi-orbit architectures and next-generation systems is translating into tangible momentum across our business.

Continue to see strong customer interest as defense and government organizations. Expand investment in Mobile resilience.com capabilities.

We continue to see strong customer interest as defense and government organizations expand investment in Mobile and Brazilian satcom capabilities.

Speaker #2: Our gap gross margin in Q1 '26 was $34% compared with $31% in Q1 '25. The increase is primarily attributable to a favorable deal mix as well as better margins of blue.

We continue to see growing engagement across the United States Europe and Israel supported by reboost Pipeline and ongoing investment in advanced architectures that address evolving defense requirements.

We continue to see growing engagement across the United States Europe and Israel supported by robust Pipeline and ongoing investment in advanced architectures that address evolving defense requirements.

Continue to adopt Solutions.

IFC remain 1 of our key growth engines supported by increasing the airline demand and continued adoption of Visa based Solutions.

We continue to maintain a strong balance sheet and financial flexibility while remain remaining disciplined.

Speaker #2: Gap operating expenses in Q1 '26 were $33.3 million compared with $31.1 million in Q1 '25. As a result, we delivered a significant improvement in profitability with gap operating income of $4.4 million compared to a loss of $2.7 million in Q1 '25, representing a year-over-year swing of $7.1 million.

We continue to maintain a strong balance sheet and financial flexibility while remaining remaining disciplined.

In our Capital, allocation mergers and Acquisitions continue to be a key element of our defense and long-term growth strategy. With a focus on opportunities that complement our current Technologies. Strengthen our Defence portfolio and support sustainable value creation. Overall we deliver the solid start to 20226 validated in the strength of our Diversified portfolio across our business.

Strategy with a focus on opportunities that complement our core Technologies, strengthen our Defence portfolio and support sustainable value creation. Overall we deliver the solid start of 2026 validated in the strength of our Diversified portfolio across our business.

Speaker #2: Gap net income in Q1 '26 was $5.2 million or a diluted income per share of 7 cents compared with gap net loss of $6 million or a diluted loss per share of 11 cents in Q1 '25.

Speaker #2: The improvement was driven by the higher operating income as well as higher financial income associated with our stronger net cash position and lower tax expenses.

With growing backlog, a healthy Pipeline and a continued. Investment in technology leadership, gilat is well, positioned to sustain growth, and create long-term value. And with that, I will hand over the call to dzielenie our CFO Gil. Please go ahead. Thank you. Add good, morning and good afternoon to everyone. Before I dive into the numbers, I would like to remind everyone that our financial results are presented on both gaap and non-gaap basis.

Speaker #2: Turning to non-gap results, our non-gap gross margin in Q1 '26 was 36% compared with 32% in Q1 '25. Non-gap operating expenses for the quarter were $26.8 million compared with $24.1 million in Q1 '25, and non-gap operating income in Q1 '26 was $12.5 million compared with $5.2 million in Q1 '25.

I will now walk through our financial highlights for the first quarter of 2026.

That you mentioned. We delivered a strong first quarter with 20% Revenue growth margin expansion and a significant increase in profitability reflecting continued execution across all 3 segments and continued momentum into 2026.

Speaker #2: The non-gap net income in Q1 '26 was $13.6 million, or a diluted income per share of 18 cents compared with net income of 1.8 million, or income per share of 3 cents in Q1 '25.

Speaker #2: The adjusted EBITDA reached $15.1 million, nearly doubling year over year, reflecting strong operating leverage on higher revenues. Moving to our balance sheet and cash flow, over the past several quarters, we significantly strengthened our balance sheet and liquidity position.

Revenues for the first quarter were $110.5 million, representing a 20% growth compared with $92 million in Q1 '25. The growth was driven by all three segments. The revenues for the commercial segment in Q1 '26 were $72.8 million, compared with $64.2 million in the same quarter last year. The 13% growth year-over-year was primarily driven by the in-flight connectivity vertical.

Billion in the same quarter last year. The 13% growth year-over-year was primarily driven by the in-flight connectivity vertical.

Speaker #2: During the quarter, we used approximately $12.2 million in operating cash, primarily driven by working capital timing, while generating approximately $15 million over the trailing 12 months.

Revenue for the defense segment in the first quarter of 26, where 25.4 million 10% higher than 23 million in the same quarter last year.

Revenues for the Defense segment in the first quarter of 2016 were $25.4 million, 10% higher than $23 million in the same quarter last year.

Operator: By now, you should have all received the company's press release. If you have not received it, please view it in the news section of the company's website www.Gilat.com. I would now like to hand over the call to Mr. Sanjay Harry of Alliance Advisors IR. Mr. Harry, would you like to begin, please?

Speaker #2: We ended the quarter with strong liquidity position of $171 million comprised of cash, cash equivalents, restricted cash, and short-term deposits. DSOs were $112 days, excluding Peru construction activity, and remained within our expected range.

And q1 26 revenues for Peru. Segments were 12.3 million compared with 4.8 million in q125. The increase was mainly driven by the higher revenues related to the new upgrade projects in 4 of the 6 regions in which we operate reflecting. The continued expansion of our long-term career programs which provide multi-year recurring revenue streams.

And q1 26 revenues for Peru. Segments were 12.3 million compared with 4.8 million in q125. The increase was mainly driven by the higher revenues related to the new upgrade projects in 4 of the 6 regions in which we operate reflecting. The continued expansion of our long-term Peru programs, which provide multi-year recurring revenue streams,

Speaker #2: During the quarter, we reached an agreement with a former shareholder of Datapath to satisfy the share-linked component of the earn-out out associated with our 2023 acquisition of the company before the end of 2026.

Sanjay Harry: Thank you, Hila. Good morning, everyone. Thank you for joining us for Gilat Satellite Networks earnings conference call for Q1 of 2026. With us on the call today are Mr. Adi Sfadia, Gilat CEO, and Mr. Gil Benyamini, Gilat's Chief Financial Officer. Before turning the call over to management, I would like to remind everyone that some statements made during this conference call contain forward-looking statements based on current expectations. Actual results could differ materially from those projected as a result of various risks and uncertainties.

Our gaap gross margin in q1 26 was 34% compared with 31% in q125. The increase is primarily attribute attributable to a favorable deal. Mix as well as better margins. It's still blue.

Our gaap gross margin in q1 26 was 34% compared with 31% in q125. The increase is primarily at 3 attributable to a favorable deal, mix as well as better margins at Blue.

Speaker #2: Under the original terms, this component called for Gilad to issue up to $3.1 million shares tied to Datapath's performance from 2024 through 2026. Under the agreement with a former shareholder of Datapath, we issued a total of $2.5 million shares in full satisfaction of the portion of the earn-out at an average price of $15.45 per share.

Gaap operating expenses in q1, 26, or 33.3 million compared with 31.1 million in q125.

Operating expenses in Q1 '26 were $33.3 million, compared with $31.1 million in Q1 '25.

as a result, we delivered a significant Improvement in profitability with gaap, operating income of 4.4 million compared to a loss of 2.7 million in q125, representing a year-over-year, swing of 7.1 million,

as a result, we delivered the significant Improvement in profitability with gaap, operating income of 4.4 million compared to a loss of 2.7 million in q125, representing a year-over-year, swing of 7.1 million,

Speaker #2: The remaining bonus earn-out component capped at $9 million in cash or shares per Gilad's discretion is unchanged and continues to be evaluated each quarter based on the performance against agreed targets through its settlement by the end of 2026.

Sanjay Harry: The potential risks and uncertainties that could cause actual results to differ materially include uncertain global economic conditions, reductions in revenues from key customers, delays or reductions in US and foreign military spending, acceptance of the company's new products on a global basis, and disruptions or delays in its supply of raw materials and components due to business conditions, global conflicts, weather, or other factors not under the company's control. The company cautions investors to not place undue reliance on forward-looking statements which reflect the company's analysis as of today's date. The company undertakes no obligation to publicly update forward-looking statements to reflect subsequent events or circumstances. Further information on these factors and other factors that could affect Gilat's financial results is included in the company's filings with the Securities and Exchange Commission, including its latest quarterly report.

Gas, net income in q1. 26 was 5.2 million or a diluted income per share of 7 cents compared with gaap. Net loss of 6 million dollars or a diluted loss per share of 11 cents. In q125. The Improvement was driven by the higher operating income as well as.

Gas, net income in q1. 26 was 5.2 million or a diluted income per share of 7 cents compared with gaap. Net loss of 6 million or a diluted loss per share of 11 cents. In q125. The Improvement was driven by the higher operating income as well as.

Speaker #2: Our shareholders' equity as of March 31, 2026, totaled $536 million, compared with $500 million on December 31, 2025, resulting mainly from issuance of shares for Datapath earn-out and net earnings.

High camp associated with our stronger. Net cash position.

High 10 associated with our stronger, net cash position.

Expense.

Turning to non-gaap results. Our non-gaap gross margin q1 26 was 36% compared with 32% in q125.

Turning to non-gaap results. Our non-gaap growth margin. Q1 26 was 36% compared with 32% in q125.

Speaker #2: Looking ahead, based on our strong backlog and visibility, we are reiterating our full year '26 guidance. Revenues are expected to be between $500 to $520 million representing 13% growth year over year, at the midpoint.

Speaker #2: We expect an adjusted EBITDA of between $61 to $66 million, 19% growth at the midpoint. That concludes my financial review. I would now like to open the call for questions.

Non-GAAP operating expenses for the quarter were $26.8 million compared with $24.1 million in Q1 '25, and non-GAAP operating income in Q1 '26 was $12.5 million compared with $5.2 million in Q1 '25. The non-GAAP net income in Q1 '26 was $13.6 million, or diluted income per share of $0.18, compared with net income of $1.8 million, or income.

Share of 3 cents in q125.

Non Gap. Operating expenses for the quarter were 26.8 million compared with 24.1 million in q125 and non-gaap operating income in q1 26 was 12.5 million compared with 5.2 million in q125. The non-gaap net income in q1, 26 was 13.6 million or diluted income per share of 18 cents, compared with net income of 1.8 million or income per share of 3 cents in q125.

Sanjay Harry: On today's call, management will refer to certain non-GAAP financial measures that management considers to be useful and differ from GAAP. These non-GAAP measures should be considered supplemental to corresponding GAAP figures. With that, I'd like to turn the call now to Gilat CEO, Adi Sfadia. Please go ahead, Adi.

The adjusted evida reached 15.1 million dollars, nearly doubling year-over-year, reflecting strong operating Leverage

Speaker #2: Operator, please go ahead.

The adjusted ibida. Reached 15.1 million, nearly doubling year-over-year reflecting strong operating leverage on higher Revenue.

From higher Revenue.

Speaker #1: Thank you. Ladies and gentlemen, at this time, we will begin the question-and-answer session. If you have a question, please press star one. If you wish to cancel your request, please press star two.

Moving to our balance sheet and cash flow over the past. Several quarters with significantly, strengthened our balance sheet and liquidity positions.

Moving to our balance sheet and cash flow over the past several quarters. We significantly stress, and our balance sheet and liquidity positions.

Adi Sfadia: Thank you, Sanjay. Good day, everyone. Thank you for joining us today to discuss Gilat's Q1 results. I am pleased to report that we opened the year with solid across the business, reflecting strong performance. Our results underscore the competitiveness of our portfolio across the satellite communication landscape and a strong year-over-year revenue growth and profitability. As satellite operators and government customers advance next-generation programs from VHTS satellites to NGSO constellations, we are seeing our capabilities translate into new orders, extending customer engagement and growing opportunities. This momentum is closely tied to the progress we continue to make in technology development as we invest in advanced and interoperable system designed to support the evolving requirements of next-generation satellite communication networks.

Speaker #1: If you are using speaker equipment, kindly leave the hands up before pressing the numbers. Your questions will be polled in the order they're received.

Speaker #1: Please stand by for the pool for your questions. The first question is from Ryan Koontz of Needham & Company. Please go ahead.

During the quarter, we used approximately 12.2 million dollars in operating cash. Primarily driven by working capital timing while generating approximately 15 million dollars over the trailing 12 months.

During the quarter, we used approximately $12.2 million in operating cash, primarily driven by working capital timing, while generating approximately $15 million over the trailing 12 months.

Fluidity position of 171 million, comprised of cash, cash, equivalents restricted, cash, and short-term deposits.

We ended the quarter with strong liquidity, position of 171 million, comprised of cash, cash, equivalents restricted, cash, and short-term deposits.

Speaker #2: Great. Thanks for the question. Maybe start with the commercial segment here. Sounds like Stellar Blue is executing pretty well. You talked about better margin improvements.

Dsos were 112 days, excluding, Peru, construction, activity, and remain within our expected range.

Speaker #2: How are you seeing the overall demand environment for the Stellar Blue product? What's behind some of the gross margin improvements? And how are you thinking about this business kind of over the medium term into next year?

During the quarter, we reached an agreement with the former shareholders of data path. To satisfy the share link component of the earned associated, with our 2023, acquisition of the company before the end of 2026.

During the quarter, we reached an agreement with the former shareholders of DataPath, to satisfy the share-linked component of the earnout associated with our 2023 acquisition of the company before the end of 2026.

Speaker #2: How's the visibility looking relative to backlog, etc.? Thank you.

Under the original terms. This component called for gilat to issue up to 3.1 million shares tied to data Path Performance from 2024 through 2026.

Speaker #3: Hi, Ryan. Stellar Blue is performing well. We're not providing explicit guidance on Stellar Blue, but we can say that we see nice year-over-year growth.

Adi Sfadia: During the quarter, Gilat Defense conducted a live demonstration of its virtualized SATCOM gateway modem architecture at SATELLITE 2026 in Washington, DC, in collaboration with Amazon AWS, SES Space & Defense. The demonstration showcased a flex-defined gateway architecture designed to improve scalability, resiliency, and agility for defense and government networks and represent a significant step forward in how future SATCOM gateways will be deployed and operated. In parallel, we successfully conducted a 5G non-terrestrial network demonstration, highlighting how satellite systems can integrate with future 5G-based architectures. Together, this milestone reflects our continued investment in technology solutions that will support next-generation satellite and hybrid networks across both commercial and defense markets. Q1 revenues reached $110.5 million, 20% year-over-year revenue growth, and Q1 adjusted EBITDA reached $15.1 million, almost double the same quarter last year.

Under the agreement with the former shareholders of DataPath, we issued a total of 2.5 million shares in full satisfaction of the portion of the earnout at an average price of $15.45 per share.

Under the agreement with the former shareholders of data path, we issued a total of 2.5 million shares in full satisfaction of the portion of the earnout at an average price of 15.45 per share.

Speaker #3: We expect them to do better performance this year. They reached the threshold of EBITDA, so now they are profitable. Gross margin is a bit better, and we'll mainly because of sharpening the supply chain.

The remaining bonus earnout component, cut, and at $9 million in cash or shares per Gila, discretion is unchanged and continues to be evaluated each quarter based on the performance against a great targets through its settlement by the end of 2026.

The remaining bonus are not component cut, and at $9 million in cash or shares per Gila, discretion is unchanged and continues to be evaluated each quarter based on the performance against a great targets through its settlement by the end of 2026.

Speaker #3: We replaced one of the units with internal units, which provides better margins. And we do expect margins to be much better towards the end of the year.

Speaker #3: Once we started delivering line fit units.

Our shareholders Equity as of March. 31st 26 totaled. 536 million compared with 500 million on December. 31st 2025 resulting mainly from issuance of shares for data path, earnout and net earnings.

Speaker #2: Great. And those line fits, is that starting initially with Boeing there?

Speaker #3: Correct. With Boeing, we passed the in-carbon certification waiting to the full certification probably if not by the end of the quarter, early Q3, and we expect to deliver first units during Q4, if not earlier than that.

Speaker #3: First quarter revenues reached $110.5 million 20% year-over-year revenue growth, and first quarter adjusted EBITDA reached $15.1 million almost double the same quarter last year.

Looking ahead, based on our strong backlog and visibility, we are reiterating our full-year 2026 guidance.

Looking ahead based on our strong backlog and visibility, we are reiterating our full year. 26 guidance.

Speaker #3: Overall, the first quarter reflects continued traction and position us well for the remainder of the year. Now on to the business review. I will start with the defense business.

Adi Sfadia: Overall, Q1 reflects continued traction and position us well for the remainder of the year. On to the business review. I will start with the defense business. We are seeing significant increase in interest for transportable and portable SATCOM solutions driven by the growing importance of mobility, rapid deployment, and operational flexibility. As militaries and government users increasingly operate in dynamic and contested environments, the value proposition of highly mobile, resilient SATCOM solutions continue to strengthen. This demand translates into meaningful order during the quarter. In February, we announced a $16 million order from a European Ministry of Defense for our DKET transportable solutions, reinforcing our leadership in high-performance, rapidly deployed systems. These orders also reflect increased penetration into the European market, driven in part by the evolving geopolitical environment and higher defense readiness requirements across the region.

Speaker #2: Great, Adi. Thank you. And then maybe continue on commercial relative to SkyEdge 4, nice win in India here. As well as the demo for the virtualized with AWS.

Revenues are expected to be between $500 million and $520 million, representing 13% growth year-over-year at the midpoint. We expect an adjusted EBITDA of between $61 million to $66 million, 19% growth at the midpoint.

Revenues are expected to be between 500 and 5 to 520 million dollars. Representing 13% growth year-over-year at the midpoint. We expect an adjusted ebida of between 61 to 66 million 19% growth at the midpoint

Speaker #3: We are seeing significant increase in interest for transportable and portable SATCOM solutions driven by the growing importance of mobility rapid deployment and operational flexibility.

that concludes my financial review. I would now like to open the call for questions.

Operator. Please go ahead.

Thank you.

Speaker #2: How are you thinking about that transition from kind of hardware to a software-based platform? Any updates you can share with us about how you think that business evolves over the next year or two?

Speaker #3: As militaries and government users increasingly operate in dynamic and contested environments, the value proposition of highly mobile resilient SATCOM solutions continues to strengthen. This demand translates into meaningful order during the quarter.

Thank you, ladies and gentlemen. At this time, we will begin the question and answer session. If you have a question, please press star 1

Speaker #3: I think it'll do its short term. So I'm not sure we'll see significant evolvement in the year or two. SkyEdge 4 is a software-defined platform, meaning at day one, you get give or take all the hardware you need for the gateway and all the upgrades and expansion is done through software licenses.

Ladies and gentlemen, at this time, we will begin the question and answer section. If you have a question, please press star 1, if you wish to cancel your request, please press star 2. If you are using speaker replacement, kindly, leave the handsome before pressing the number, your questions will be called in the order that I received.

If you wish to cancel your request, please press star 2. If you are using speaker at midnight, kindly leave the handsome before pressing the number. Your questions will be called in the order that I received.

Please stand by for the portfolio question.

Please stand by for a portfolio question.

Speaker #3: In February, we announced a $16 million order from a European Ministry of Defense for our decade transportable solutions reinforcing our leadership in high performance rapidly deployed systems.

The first question is from Ryan Coons of

Speaker #3: Moving to commercial of the shelf hardware, and running on virtualized platform, I guess it's three to four years now, and it's combined together with the plans of shifting the way from DVB-S2X to a 5G NTN.

Um, maybe starting with the commercial segment here. Um, sounds like, uh, Stellar blue is uh, executing pretty well. He talks about better margin Improvement.

Adi Sfadia: In Israel, we continue to strengthen our relationship with the Ministry of Defense. During the quarter, we announced an order of $9 million, further expanding the deployment of our solution and reinforcing our long-term strategic partnerships. The order includes next-generation defense modems built for mission-critical operations to ensure reliable connectivity across a wide range of operational scenarios. During the quarter, we received an order for over $7 million for our new EnduroStream solid-state power amplifiers to support the US defense program. EnduroStream delivers reliability and operational resilience required for mission-critical environments as defense customers transition away from legacy technologies. Also in the United States, we continue our long-standing support of the US Army.

Speaker #2: Perfect. Makes sense. On that. And then maybe shifting to defense, any other color you can provide? You talked about some traction with other countries.

And you know, how are you seeing the overall demand environment for the Stellar blue product? You know what's behind some of the gross margin improvements and uh you know, how are you thinking about this business? Kind of over the medium term into next year? How how how's the visibility looking relative to backlog, Etc? Thank you. Hi Ryan. Um,

And you know, how are you seeing the overall demand environment for the Stellar Blue product? You know, what's behind some of the gross margin improvements, and, uh, you know, how are you thinking about this business kind of over the medium term and into next year? How's the visibility looking relative to backlog, etc.? Thank you. Hi Ryan. Um,

Stella Blue is,

Stella Blue is performing.

Speaker #2: Is this for the mobility products you talked about, or is that more of a US need for your mobility defense products?

Um we you know we are not providing uh explicit guidance on Stellar blue. But we can say that, uh,

um we, you know, we are not providing a explicit guidance on Stellar blue, but we can say that

Speaker #3: I think it's a combination of the two. I think that everyone understands, especially now after the war with Iran, that mobility solution, portable and transportable solution are crucial.

Speaker #3: Endurance stream delivers reliability and operational resilience required for mission-critical environments as defense customers transition away from legacy technologies. Also in the United States, we continue our long-standing support of the US Army during the quarter.

We see nice overall growth. Uh, we expect them to do, uh, better performance this year. Uh, they reached the, um,

Uh, we see nice overall growth. Uh, we expect them to do, uh, better performance this year. Uh, they reached the, um,

Speaker #3: We saw that some of the US gateways over the Middle East got hit, and they will need to replace them. And we believe that the replacement will be done with mobility solution.

the threshold of now they are 12, Grouse Mountain is is a bit better and we mainly because of

Adi Sfadia: During the quarter, we received an order of approximately $6 million for field and technical services, reflecting the continued reliance on Gilat Defense to support mission-critical SATCOM operations and ensure system availability in the field. Our defense pipeline remains strong, supported by sustained global demand and our continued investment in R&D, advanced system architectures, and customer engagement. Turning to our commercial business. In Q1, our commercial business continued to show solid performance, supported by ongoing customer engagement and steady execution across our programs. As satellite operators and service providers move forward with next-generation network, they are increasing focus on platforms that offer scalability, flexibility, and multi-orbit support for our mobility applications. Gilat remains well-positioned within this evolving landscape. In-flight connectivity remains one of our key growth engines.

Speaker #3: We received an order of approximately $6 million for field and technical services reflecting our continued reflecting the continued reliance on GILAT defense to support mission-critical SATCOM operations and ensure system availability in the field.

Speaker #3: So you can move the gateway on a daily basis to another place and give you some kind of advantage. Datapass is the leader with portfolio.

Sharpening the supply chain. Uh, we replace 1 of the units, with internal units which provide better margins, uh, and we do expect margins to be much better towards the end of the year. Once we started, the delivering line fit units,

the threshold of ibida. So now they are 12. Um, gross margin is, is a bit better and we mainly because of uh uh uh sharpening, the supply chain, uh, we replaced 1 of the units with internal units which provide better margins, uh, and we do expect margins to be much better towards the end of the year. Once we started the delivering uh, line fit units,

Speaker #3: Our defense pipeline remains strong supported by sustained global demand and our continued investment in R&D advanced system architectures and customer engagement. Turning to our commercial business.

Great. And those, those line fits is that uh, starting initially with with bowing here.

Great. And those, those line fits is that uh, starting initially with with Boeing here.

Speaker #3: We already starting to see significant order for our transportable solution, $16 million in Europe, which is also a very big market that is growing, and our presence over there is very important.

Uh, correct. Um, with boing we passed the incoming certification waiting to uh uh full certification. Uh

Uh, correct. Um with Boeing, we passed the incoming certification waiting to uh uh full certification. Uh,

Speaker #3: And this penetration to a new MOD is crucial for our future growth. And also, we see a lot of traction in Israel. So all in all, we believe that the defense the strong pipeline will drive at the end a significant booking year.

Probably, if not by the end of the quarter, early Q3, and we expect to deliver first units during Q4, if not earlier than that.

Probably if not by the end of the quarter early Q3 and we expect to deliver first units uh during Q4, if not earlier than that.

Great AI, thank you. Um, and then maybe on uh continue on commercial.

Great, AI. Thank you. Um, and then maybe, um, uh, continue on commercial.

Speaker #3: It's important to remember that there is a time between booking to revenues. In the defense, it's typically project, and it takes six to nine months from the order until you deliver the product.

Adi Sfadia: Demand for IFC continues to increase, driven by our airline expectations for consistent, high-performance connectivity, growing passenger usage, and the industry's transition towards NGSO and multi-orbit networks. These environments strongly align with Gilat technology roadmap and product portfolio. As of today, we have delivered approximately 750 Sidewinder ESA terminals, of which more than 570 are already installed and in service. During the quarter, Boeing and Gilat reached an important key in-cabin milestone to offer Sidewinder ESA terminal as a line-fit solution available to airlines and IFC service providers. Certification is on track, and deliveries of the first units are expected in Q4 this year. In addition, we are starting a process to achieve a line-fit availability with Airbus. During the quarter, we announced $39 million in orders for our Sidewinder ESA terminal.

How are you thinking about that, uh, transition from kind of Hardware to a software based platform? Any any updates you can share with us about you know, how you think that business evolves over the next year or 2?

Uh relative to Sky Edge 4, you know, nice win in India here, as well as you know, the demo for the virtualized with AWS. Yeah. How are you thinking about that, uh, transition from kind of Hardware to a software based platform? Any any updates you can share with us about you know, how you think that business evolves over the next year or 2?

Speaker #3: And in some cases, if it's a big project, it can take much more than that. So we are very optimistic about our growth in defense in 2026, and more in 2027.

Speaker #2: Couple, Adi. Thanks very much.

Speaker #3: Thank you, Ryan.

Speaker #4: The next question is from Chris Quilty of Quilty Analytics. Please go ahead.

Speaker #2: Thanks, Adi. Just to follow up, you were saying six to nine months from booking to ship. Are you seeing any changes or any indications here in the US where the administration is really pushing hard on moving quickly?

Um, I think you know, too. It's it's a short term so I'm I'm not sure we'll see significantly uh evolvement in in the year or 2 skid for is uh software defined platform meaning at day 1, you get give or take. All the, how do you need, uh, for the Gateway and all the upgrades and, uh, expansion is done through software licenses moving to uh, commercial of the Shelf uh, hardware and uh, running on virtualized platform. I guess it's 3 to 4 years now, and it's combined together with the plans of Shifting, the waveform from from DBS to X to a 5G and TN.

Both them. So I'm I'm not sure we'll see significantly, uh, involvement in in the year or 2 skies for is a software defined platform. Meaning at day 1, you get give or take all the hardware, you need for the Gateway and all the upgrades and, uh, expansion is done through software licenses moving to uh, commercial of the Shelf uh hardware and uh running on virtualized platform. I guess it's 3 to 4 years now, and it's combined together with the plans of the Shifting, the waveform from, from DBS to X to a 5G NTN.

Speaker #2: Do you see any possibility of that order to ship gap closing over time?

Adi Sfadia: These awards reinforce the market confidence in its performance, low-profile design, and multi-orbit capability. We have also expanded our ESA portfolio with the ESR-2030Ku, which is now commercially available. ESR-2030Ku is designed to support commercial and defense applications over the OneWeb LEO constellation, complementing our Sidewinder offering and broadening our addressable market. With growing interest in LEO services, we believe ESR-2030Ku position us well to support new programs and as operators move from network deployment towards commercial service. We also received a multi-million dollar order from a leading IFC integrator for solid-state power amplifiers to support connectivity solutions on commercial aviation aircraft. Across the industry, operators are upgrading grounded infrastructure to support a wider range of services across multiple orbits. SkyEdge IV is built for this shift, providing a scalable software-defined platform that enable efficient management of complex multi-service satellite networks.

Speaker #3: It's really depend on it's lead time and inventory. If we will understand that there is for quicker turnaround, we can do that. We do hold inventory, but those units are highly expensive and sometimes are made to build based on unique requirements.

Perfect makes sense on that. And then maybe shifting to the fence. Um, you know, any other color you can provide you talked about, you know, some traction with other countries, um, is this for the the mobility products you talked about or is that more of a us, um,

Perfect makes sense on that. And then maybe shifting to defense. Um, you know, any other color you can provide you talked about, you know, some traction with other countries, um, is this for the the mobility products you talked about or is that more of a us, um,

Uh, you know, a US need for your Mobility, uh, defense products.

I think it's combination of.

Do I think that, uh,

Speaker #3: So it's not that easy. But definitely, if we with the negotiation with the customers, if we understand that, we have the ability to expedite.

The 2. I think that, uh, everyone understand especially now, after the, uh, uh, war with Iran, that Mobility solution, portable and transportable solution of are crucial. We saw that, uh, some of the US gateways, over the Middle East, uh, got hit, and they will need to replace them. And we believe that the replacement will be done with a Mobility solution.

Speaker #2: Great. And when you talk about the uptick in portable solutions, is it fair to assume that that's all coming out of the Datapath portfolio of products?

Speaker #3: The portable and portable solutions are mainly from Datapath products, but we do see also very nice business to our modems. Solutions. And we do hope to be able to penetrate to the DOW and the US Army with our modem SkyEdge 4 modems and our highly resilient defense modem.

Uh, war with Iran, that mobility solution, portable and transportable solution, are crucial. We saw that, uh, some of the US gateways over the Middle East, uh, got hit, and they will need to replace them. And we believe that the replacement will be done with a mobility solution. So, you can, uh, move the gateway on a daily basis to, to another place. And, uh, give you some kind of advantage. DataPath is the leader with that, such a product portfolio. We are already starting to see significant, uh,

So, you can, uh, move the, the Gateway on a daily basis, to, to another place. And, uh, give you some kind of Advantage data pass is the leader with that, such a product portfolio. We already starting to see significant, uh,

Adi Sfadia: A recent example is our strategic multi-million dollar partnership with Nelco in India to deploy SkyEdge IV in support of India's first Ka-band service deployment using the GSAT-N2 HTS satellite. India represent an important growth market for Gilat and a central part of our expansion strategy in the Asia Pacific region. The deployment will enable scalable, high-performance connectivity across multiple services, including IFC, cellular backhaul, and enterprise connectivity, delivering the performance and flexibility required for Ka deployments. Overall, the commercial pipeline remain healthy, supported by continued IFC demand alongside longer-term investments in advanced satellite networks architectures. Our Peru business continued to execute very well, with strong operational progress across our national connectivity programs.

Speaker #2: Gotcha. And staying on defense, I mean, you mentioned demos with Amazon AWS and SES. I know on the Amazon side, you do some hardware into Amazon Leo, but what is the connection with Amazon AWS?

Order for our transportable solution, 16 million in Europe, which is also a very big Market that is, is growing and our presence over there is, uh, is very important and, uh, this penetration to a new mod is is a crucial to our future growth. And also we see a lot of traction in Israel. So all in all, we believe that the the defense um

Speaker #3: The main idea is to one hour gateway on AWS platform. And this is the demonstration that we showcased in satellite in DC, that we can do that.

Speaker #3: And of course, we need to tailor the solution based on AWS and customer requirements. But I think that the demo reflects our ability to cooperate with AWS cloud.

The strong pipeline will uh, drive at the end, a significant booking here. Uh, it's it's important to remember that there is a time between booking to revenues, uh, in the defense. It's typically projects and it take 6 to 9 months from the order until you deliver, uh, the product. And in some cases, if it's a big project, you can take much more than that. So, we are very optimistic about our growth and defense in 26 and uh, more in 27.

The strong pipeline will, uh, drive, at the end, a significant booking here. Uh, it's important to remember that there is a time between booking to revenues. Uh, in defense, it's typically projects, and it takes 6 to 9 months from the order until you deliver, uh, the product, and in some cases, if it's a big project, it can take much more than that. So, we are very optimistic about our growth in defense in '26 and, uh, more in '27.

Adi Sfadia: We expect to complete the upgrade project that were announced a few quarters ago ahead of schedule in Q2 2026, demonstrating Gilat Peru's ability to deliver large-scale, complex infrastructure projects reliably and on time. These results strengthen our position as a trusted partner for national digital inclusion initiative and provide a solid foundation for continued activity in the region. We expect additional large RFPs and follow-on orders during the year. I am pleased to say that we continue to have a strong backlog and a healthy pipeline. Therefore, we feel comfortable reiterating our 2026 annual guidance. We expect 2026 revenues of between $500 to 520 million and adjusted EBITDA of between $61 to 66 million. Technology development remain a core pillar of our strategy across defense and commercial markets.

Thanks very much.

Thank you, Ryan.

The next question is from Chris cruelty of Cruelty analytics. Please go ahead.

The next question is from Chris quilty of quilty analytics. Please go ahead.

Speaker #2: And is it fair to assume this is a virtualized platform?

Speaker #3: Correct. It's virtualized platform. We are running our gateway modem on the AWS platform, which connects to a standard modem at the end user side.

Speaker #2: Very good. I guess back on the traditional geo side of the business, it appears that both Airbus and Palestinian Space have now kind of gotten their act together with regard to the next-gen software-defined satellites.

Uh, thanks Addie. Just to follow up. Uh you were saying 6 to 9 months uh from from booking the ship are you seeing any changes or any indications? You know here in the US where the administration is is really pushing hard on moving quickly. Uh do you see any possibility of you know that order you know order or to ship Gap closing over time?

Uh thanks AI just to follow up. Uh you were saying 6 to 9 months uh from from booking the ship are you seeing any changes or any indications? You know here in the US where the administration is is really pushing hard on moving quickly. Uh do you see any possibility of you know that order um you know order to uh ship Gap closing over time?

Uh, it's, it's really depend on. Uh, you know, it's lead time and inventory. If we will, uh, understand that. Uh,

It's really depend on, uh, you know, it's lead time and inventory. If we will uh, understand that. Uh

Speaker #2: I think the first ones are going up next year. So at what point do you start to see an uptake in equipment to support those systems?

Adi Sfadia: During the quarter, we advanced software-defined system capabilities that enable more scalable and resilient satellite networks, while also continuing our work on integrating satellite networks with future 5G end-to-end frameworks. Together, these efforts support next-generation satellite systems serving defense, mobility, and commercial applications. Demand across our core markets continue to develop favorably, and our strategic focus on mobility, multi-orbit architectures, and next-generation systems is translating into tangible momentum across our business. Gilat Defense continue to see strong customer interest as defense and government organizations expand investment in mobile, resilient SATCOM capabilities. We continue to see growing engagement across the United States, Europe, and Israel, supported by a robust pipeline and ongoing investment in advanced architectures that address evolving defense requirements. IFC remain one of our key growth engines supported by increasing airline demand and continued adoption of VSAT-based solutions.

Speaker #3: Typically, we are getting orders give or take six to twelve months before the satellite launch. And the deployment really depends on the customer, readiness to get the equipment and to deploy it in the gateways.

There is a big, uh, demand for quicker. Uh, turnaround. We we can do that. You know, we we do hold the inventory, but those units are highly expensive expensive and sometimes are made to build based on a unique requirement. So it's not, it's not that easy. But, uh, definitely if we if with the negotiation with the customers, if we understand that we we we have the ability to expedite

There is a big demand for quicker. Uh, turnaround. We we can do that. You know, we we do hold the inventory, but those units are highly expensive expensive and sometimes are made to build based on a unique requirement. So it's not, it's not that easy. But, uh, definitely if we, if, you know, with the negotiation with the customers, if we understand that we we we have the ability to expedite

Speaker #3: We believe we will start getting large part of those orders this year. I'm not sure we'll need to deliver everything this year, but some of it is a factor within our guidance already.

Speaker #2: Great. Gil, the gross margins were nice in the quarter. Obviously, that was a little bit mixed and a little bit stellar blue. On the stellar blue side, it's profitable, but you were shooting for 10% EBITDA exiting 25, didn't happen.

Speaker #2: Do you have a sense of where in 26 you expect to hit that milestone?

Speaker #3: So as Adi mentioned, stellar blue is now fully integrated into Gillette. With the operations team and R&D team and so on, I guess that if we would go back and measure it as a standalone company, it would be very close to that.

Adi Sfadia: We continue to maintain a strong balance sheet and financial flexibility while remaining disciplined in our capital allocation. Mergers and acquisitions continue to be a key element of our defense and long-term growth strategy, with a focus on opportunities that complement our core technologies, strengthen our defense portfolio, and support sustainable value creation. Overall, we delivered a solid start to 2026, validating the strength of our diversified portfolio across our business. With growing backlog, a healthy pipeline, and a continued investment in technology leadership, Gilat is well-positioned to sustain growth and create long-term value. With that, I will hand over the call to Gil Benyamini, our CFO. Gil, please go ahead.

Speaker #3: But we don't do it. We don't do it anymore, so it's less relevant. But we definitely see this improvement a long time. Of course, with the line fit deliveries that, as Adi mentioned, expected to start at the last quarter of this year, it will also give another improvement to the gross margins and to the EBITDA margin.

Speaker #3: Of this activity.

Speaker #5: Chris, I think it's important to mention that we do we start investing in next-generation ESA technology and terminals. So R&D expenses is shifting towards stellar blue, which is now part of Gillette antenna and terminal subdivision.

Gil Benyamini: Thank you, Adi Sfadia. Good morning and good afternoon to everyone. Before I dive into the numbers, I would like to remind everyone that our financial results are presented on both GAAP and non-GAAP basis. I will now walk through our financial highlights for Q1 2026. As Adi Sfadia mentioned, we delivered a strong first quarter with 20% revenue growth, margin expansion, and a significant increase in profitability, reflecting continued execution across all three segments and continued momentum into 2026. Revenues for the first quarter were $110.5 million, representing a 20% growth compared with $92 million in Q1 2025. The growth was driven by all three segments. The revenues for the commercial segment in Q1 2026 were $72.8 million compared with $64.2 million in the same quarter last year.

Speaker #5: And correlation and integration between the commercial business and the stellar blue is tightening on a daily basis. Another positive news, I think, that stellar blue is starting to sell their solutions also to defense application.

Speaker #5: It's not big yet, but we do expect them to have more than $10 million business with defense this year.

Speaker #2: Oh, that's great. And I know you did have in the original purchase agreement and earn-out agreement, some large strategic wins that were part of that.

Gil Benyamini: The 13% growth year over year was primarily driven by the in-flight connectivity vertical. Revenues for the defense segment in Q1 2026 were $25.4 million, 10% higher than $23 million in the same quarter last year. In Q1 2026, revenues for Gilat Peru segment were $12.3 million compared with $4.8 million in Q1 2025. The increase was mainly driven by the higher revenues related to the new upgrade projects in 4 of the 6 regions in which we operate, reflecting the continued expansion of our long-term Gilat Peru programs, which provide multi-year recurring revenue streams. Our GAAP gross margin in Q1 2026 was 34%, compared with 31% in Q1 2025. The increase is primarily attributable to a favorable deal mix as well as better margins at Stellar Blu Solutions.

Speaker #2: How is that stuff shaping up? Is it still on the horizon here, maybe not on the time zone or timeline that you were targeting?

Speaker #3: Yep. So we do have a significant progress with one of the strategic deals that initially we thought we would be able to close faster.

Speaker #3: It's progressing, slower than expected. We do expect to close it within the coming year, within 2026. I'm not sure we'll be able to close it before the end of June.

Speaker #3: And I'm not sure that the first order will be more than 35 million dollars, but definitely the potential can be north of 100 million.

Gil Benyamini: GAAP operating expenses in Q1 2026 were $33.3 million compared with $31.1 million in Q1 2025. As a result, we delivered a significant improvement in profitability with GAAP operating income of $4.4 million compared to a loss of $2.7 million in Q1 2025, representing a year-over-year swing of $7.1 million. GAAP net income in Q1 2026 was $5.2 million or a diluted income per share of $0.07 compared with GAAP net loss of $6 million or a diluted loss per share of $0.11 in Q1 2025. The improvement was driven by the higher operating income as well as high income associated with our stronger net cash position expenses. Turning to non-GAAP results, our non-GAAP gross margin Q1 2026 was 36%, compared with 32% in Q1 2025.

Speaker #2: Very good. All right. Well, thank you, gentlemen.

Speaker #3: Thank you, Chris.

Speaker #5: Thank you, Chris.

Speaker #1: The next question is from Sergei. Nimiano of Freedom Brokers. Please go ahead.

Speaker #2: Good day, gentlemen. And my congratulations. You provided a really great work on your gross margin side. So my question is, recently you tapped on NTM solution and I'm wondering, do you see any surging demand on your 5G NTM solution?

Speaker #2: Have these trends got better visibility?

Speaker #3: We do see a lot of traction in the market on 5G NTM. OneWeb Gen 2 and Gen 1.5 is talking about 5G modems. Iris Square is talking about 5G modems.

Speaker #3: And also other small Leo startups are talking on 5G modems. And here and there, also Geo players are talking about 5G modems. I think that the overall requirement in the market is not mature enough.

Gil Benyamini: Non-GAAP operating expenses for the quarter were $26.8 million compared with $24.1 million in Q1 2025, and non-GAAP operating income in Q1 2026 was $12.5 million compared with $5.2 million in Q1 2025. The non-GAAP net income in Q1 2026 was $13.6 million or a diluted income per share of $0.18 compared with net income of $1.8 million or income per share of $0.03 in Q1 2025. The adjusted EBITDA reached $15.1 million, nearly doubling year over year, reflecting strong operating leverage on higher revenues. Moving to our balance sheet and cash flow. Over the past several quarters, we significantly strengthened our balance sheet and liquidity position.

Speaker #3: So we do we already started the work on 5G network. Mainly the main building blocks. But in order to launch it, we'll need to tie tightly work with one of our big customers and we hope to close something within the coming year.

Speaker #2: What do you expect, Will? When the market conditions would be ready for full deployment of this technology?

Speaker #3: 5G NTM full deployment? I guess right now the first so the most advanced is Iris Square. So I guess it's four to five years from today.

Gil Benyamini: During the quarter, we used approximately $12.2 million in operating cash, primarily driven by working capital timing while generating approximately $15 million over the trailing 12 months. We ended the quarter with strong liquidity position of $171 million, comprised of cash equivalents, restricted cash, and short-term deposits. DSOs were 112 days excluding Peru construction activity and remain within our expected range. During the quarter, we reached an agreement with the former shareholders of DataPath to satisfy the share link component of the earn-out associated with our 2023 acquisition of the company before the end of 2026. Under the original terms, this component called for Gilat to issue up to 3.1 million shares tied to DataPath performance from 2024 through 2026.

Speaker #2: Okay. Got it. And a little bit about Peru. You said about this segment. Should we think they're most part of revenue leaning towards second half of 2026?

Speaker #3: We do expect to get large awards in Peru. And once we get it, revenue will kick in. So I guess the second half of the year should have a higher revenue than the first one.

Speaker #3: But in general, Peru can be very the revenue can be very volatile because of the nature of the business over there. It's usually implementation of network when you see relatively high revenues in short time and then recurring revenue over a period of three, five, and sometimes 10 years.

Gil Benyamini: Under the agreement with the former shareholders of DataPath, we issued a total of 2.5 million shares in full satisfaction of the portion of the earn-out at an average price of $15.45 per share. The remaining bonus earn-out component, capped at $9 million.

Speaker #5: Yeah. And I would add to that. I think that one of the most important things or takeaways about Peru is that the base level of the recurring revenues of Peru this year is higher than it used to be in previous years.

Speaker #5: And the construction and implementation are boosting it for the next years. So you can see that we're in a much better position over there.

Gil Benyamini: In cash or shares per Gilat discretion is unchanged and continues to be evaluated each quarter based on the performance against agreed targets through its settlement by the end of 2026. Our shareholders' equity as of 31 March 2026 totaled $536 million compared with $500 million on 31 December 2025, resulting mainly from issuance of shares for DataPath earn-out and net earnings. Looking ahead, based on our strong backlog and visibility, we are reiterating our full year 2026 guidance. Revenues are expected to be between $500 to 520 million, representing 13% growth year-over-year at the midpoint. We expect an adjusted EBITDA of between $61 to 66 million, 19% growth at the midpoint. That concludes my financial review. I would now like to open the call for questions. Operator, please go ahead.

Speaker #2: Okay. Thank you very much. Thank you for taking my questions.

Speaker #1: The next question is from Luigi Palma of William Blair. Please go ahead.

Speaker #6: Hi. Addie and Gill, I was wondering what is the potential timing of the Airbus partnership with the stellar blue system? How long do you think that will take to materialize?

Speaker #6: Will it be similar to the timeline with Boeing?

Speaker #3: I think it will be slightly faster than the timeline with Boeing because we gained some knowledge. And some of the testing are equivalent, so we can use the qualification and test that we have done.

Speaker #3: Of course, the documentation is totally different and we need to rewrite some of the some of them. But the knowledge we gain through the Boeing process definitely gives us a head start with Airbus.

Operator: Thank you. Ladies and gentlemen, at this time, we will begin the question and answer session. The first question is from Ryan Koontz of .

Speaker #6: Do you have any sense for the timing? Should it take? Should we be thinking 2027, 2028? What is your thoughts there?

Speaker #3: I would say that we expect to finish the certification process early 2027. And ship first unit, second half of 2027.

Speaker #6: Great. And earlier in the call, did you mention that you should ship the first units to Boeing in the fourth quarter of this year?

Ryan Koontz: Maybe starting with the commercial segment here. Sounds like Stellar Blu is executing pretty well. You talked about better margin improvement. You know, how are you seeing the overall demand environment for the Stellar Blu product? You know, what's behind some of the gross margin improvements? How are you thinking about this business kind of over the medium term and into next year? How's the visibility looking relative to backlog, et cetera? Thank you.

Speaker #3: Correct.

Speaker #6: Great. And my second question also relating to the stellar blue development. I think for the past year, you've been working on multi-beam technology and it would also seem that the broader in-flight connectivity industry is looking for multi-band technology.

Adi Sfadia: Hi, Ryan. Stellar Blu is performing well. We, you know, we are not providing explicit guidance on Stellar Blu, but we can say that we see nice year-over-year growth. We expect them to do better performance this year. They reached the threshold of EBITDA, so now they are profitable. Gross margin is a bit better, and mainly because of sharpening the supply chain. We replaced one of the units with internal units, which provide better margins. We do expect margins to be much better towards the end of the year once we start to delivering line-fit units.

Speaker #6: So a terminal that can communicate both in KA band and KU band. What is the progress for these initiatives? And how far away are we from having stellar blue multi-beam or multi-band?

Speaker #3: So multi-beam is mainly dependent on cheap availability. And customer requirements. I think today with the Leo constellation, especially with Telesat in service, hopefully within the coming 18 months, KUKA antenna, KU and KA, that will do Leo.

Speaker #3: It has high potential. We are already looking to introduce technologies. Either internally or with third party cooperation with third parties. I think availability for such antenna is between two to three years, including development cycle and certification cycle.

Ryan Koontz: Great. Those Linefits, is that starting initially with Boeing here?

Adi Sfadia: Correct. With Boeing, we passed the in-cabin certification, waiting to the full certification, probably if not by the end of the quarter, early Q3, and we expect to deliver first units during Q4, if not earlier than that.

Speaker #3: And I think it will be in line with the future service launch of the IFC service providers.

Ryan Koontz: Great, Adi. Thank you. Maybe on, continuing on commercial, relative to SkyEdge IV, you know, nice win in India here, as well as, you know, the demo for the virtualize with AWS, you know, how are you thinking about that transition from kinda hardware to a software-based platform? Any, any updates you can share with us about, you know, how you think that business evolves over the next year or two?

Speaker #6: Great. Excellent. Thanks, everyone.

Speaker #3: Thank you.

Speaker #1: If there are any additional questions, please press star one. Please stand by while we pull for more questions. There are no further questions at this time.

Adi Sfadia: I think year or two, it's a, it's a short term, so I'm not sure we'll see significant evolvement in the year or two. SkyEdge IV is a software-defined platform, meaning at day one, you get give or take, all the hardware you need for the gateway and all the upgrades, and expansion is done through software licenses. Moving to commercial of the shelf hardware and running on virtualized platform, I guess it's 3 to 4 years now, and it's combined together with the plans of shifting the waveform from DVB-S2X to 5G NTN.

Speaker #1: Mr. Benjamin, would you like to make a concluding statement?

Speaker #5: I want to thank you all for joining us on this call and for your time and attention. We hope to see you soon or speak with you on our next call.

Speaker #5: Thank you very much and have a great day.

Ryan Koontz: Perfect. Makes sense on that. Then maybe shifting to defense, you know, any other color you can provide? You talked about, you know, some traction with other countries. Is this for the mobility products you talked about, or is that more of a US, you know, a US need for your mobility, defense products?

Adi Sfadia: I think it's combination of the two. I think that everyone understand, especially now after the war with Iran, that a mobility solution, portable and transportable solution are crucial. We saw that some of the US gateways over the Middle East got hit, and they will need to replace them. We believe that the replacement will be done with mobility solution. You can move the gateway on a daily basis to another place and give you some kind of advantage. DataPath is the leader with that such a product portfolio.

Adi Sfadia: We're already starting to see significant order for our transportable solution. $16 million in Europe, which is also a very big market that is growing and our presence over there is very important and this penetration to a new MOD is crucial for our future growth. Also we see a lot of traction in Israel. All in all, we believe that the defense, the strong pipeline will drive at the end a significant booking year. It's important to remember that there is a time between booking to revenues. In the defense, it's typically projects, it takes six to nine months from the order until you deliver the product. In some cases, if it's a big project, it can take much more than that.

Adi Sfadia: We are very optimistic about our growth in defense in 2026 and more in 2027.

Ryan Koontz: Helpful, Adi. Thanks very much.

Adi Sfadia: Thank you, Ryan.

Operator: The next question is from Chris Quilty of Quilty Analytics. Please go ahead.

Chris Quilty: Thanks, Adi. Just to follow up, you were saying 6 to 9 months from booking to ship. Are you seeing any changes or any indications, you know, here in the US where the administration is really pushing hard on moving quickly? Do you see any possibility of, you know, that order to ship gap closing over time?

Adi Sfadia: It really depend on, you know, its lead time and inventory. If we will understand that, there is a big demand for quicker turnaround, we can do that. You know, we do hold the inventory, but those units are highly expensive and sometimes are made to build based on a unique requirement. It's not that easy. Definitely if we, if you know, with the negotiation with the customers, if we understand that, we have the ability to expedite.

Chris Quilty: Great. When you talk about the uptick in portable solutions, is it fair to assume that that's all coming out of the DataPath portfolio of products?

Speaker #2: in portable solutions, is it fair to assume that that's all coming out of the, the Datapath portfolio of products?

Adi Sfadia: The portable and portable solutions are mainly from DataPath products, but we do see also very nice business to our modems solutions. We do hope to be able to penetrate to the DoD and the US Army with our SkyEdge IV modems and our highly resilient defense modem.

Speaker #3: the, the portable and portable solutions are mainly from Datapath products. But we do see also very nice, business, to our modems. Solutions. and we do hope, to, to be able to penetrate to the DOW and the US Army with our, modem, the SkyEdge 4 modems and our, highly resilient, defense modem.

Speaker #2: Gotcha. And, staying on defense, I mean, you mentioned, demos with Amazon AWS and SES. I know on the Amazon side, you, you do some hardware into Amazon Leo.

Chris Quilty: Gotcha. Staying on defense, I mean, you mentioned demos with Amazon AWS and SES. I know on the Amazon side, you do some hardware into Amazon Leo, but what is the connection with Amazon AWS?

Speaker #2: But, what is the, connection with Amazon AWS?

Adi Sfadia: The main idea is to run our gateway on AWS platform. This is the demonstration that we showcased in satellite in DC, that we can do that. Of course, we need to tailor the solution based on AWS and customer requirement. I think that the demo reflects our ability to cooperate with AWS cloud.

Speaker #3: the main idea is to line to line our, gateway on, AWS, platform. And this is, the demonstration that, we showcast in, satellite in, in DC, that we, we can do that.

Speaker #3: and, of course, we need to tailor the solution based on, AWS and customer, requirements. But, I think that the demo, reflects our ability, to cooperate, with AWS, cloud.

Speaker #2: A-and is it fair to assume this is a, virtualized, platform?

Chris Quilty: Is it fair to assume this is a virtualized platform?

Speaker #3: Correct. It's virtualized platform. We are running our gateway modem on the AWS platform, which connects to a standard modem, at the end user side.

Adi Sfadia: Correct. It's virtualized platform. We are running our gateway modem on the AWS platform, which connect to a standard modem at the end user site.

Speaker #2: Very good. you know, I guess back on the traditional, geo side of the business, it appears that, both Airbus and Thales Alenia Space have now kind of gotten, their, their act together with regard to the, the next-gen, software-defined satellites.

Chris Quilty: Very good. You know, I guess back on the traditional GEO side of the business, it appears that both Airbus and Thales Alenia Space have now kind of gotten their act together with regard to the next-gen, software-defined satellites. I think the first ones are going up next year. At what point do you start to see an uptake in equipment to support those systems?

Speaker #2: I think the first ones are going up next year. So at what point do you start to see an uptake in, in equipment to support those systems?

Adi Sfadia: Typically, we are getting orders give or take 6 to 12 months before the satellite launch. The deployment really depend on the customer readiness to get the equipment and to deploy it in the gateways. We believe we will start getting large part of those orders this year. I'm not sure we'll need to deliver everything this year, but some of it is factored within our guidance already.

Speaker #3: typically, we are getting orders, give or take 6 to 12 months before the satellite launch. and the deployment really depend on, on the customer, readiness to get, equipment and to, to deploy it in the gateways.

Speaker #3: We believe we will start getting, large year. I'm not sure we'll, we'll need to deliver everything this year. But, some of it is, factored within our, guidance already.

Speaker #2: Great. GIL, the gross margins were, were nice in the quarter. Obviously, that was a, a little bit mix and a little bit stellar blue.

Chris Quilty: Great. Gil, the gross margins were nice in the quarter. Obviously, that was a little bit mix and a little bit Stellar Blu. On the Stellar Blu side, it's profitable, but you were shooting for 10% EBITDA exiting, you know, 2025. Didn't happen. You know, do you have a sense of where in 2026 you expect to hit that milestone?

Speaker #2: on the stellar blue side, it's profitable, but you were shooting for 10% EBITDA exiting you know, 25. Didn't happen. You know, do you have a sense of where in 2026 you expect to hit that milestone?

Speaker #3: So, a-as, as Adi mentioned, stellar blue is now, is now fully integrated, into, into Gilat. With the operations team and, and R&D team and, and so on.

Gil Benyamini: As Adi mentioned, StellarBlu is now fully integrated into Gilat with the operations team and R&D team and so on. I guess that, if we would, you know, go back and measure it as a standalone company, it would be very close to that. We don't do it anymore, so it's less relevant. We definitely see this improvement a long time. Of course, with the Linefit deliveries that, as Adi mentioned, expected to start at Q4 of this year, it will also give another improvement to the gross margins and to the EBITDA margins of this activity.

Speaker #3: I guess that, if we would, you know, go back and measure it, as a standalone, company, it would be, very close to that. but we don't do it, we don't do it anymore.

Speaker #3: So it's, it's less, relevant. But, we definitely, see this improvement, a long time. Of course, with, with the line fit, deliveries that, as Adi mentioned, expected to start, at the last quarter of this year, it will also give another, improvement, to the gross margins and to the EBITDA margin.

Speaker #3: Of this activity. Chris, I think it's important to mention that we, we do, w-we start investing in next-generation, and, terminals. It's shifting towards, stellar blue, stellar blue, which is now part of, Gilat, antenna and terminal, subdivision.

Adi Sfadia: Chris, I think it's important to mention that we start investing in next generation, and terminals. It's shifting towards StellarBlu, which is now part of Gilat antenna and terminal subdivision. Correlation and integration between the commercial business and StellarBlu is tight.