Gilat Satellite Networks Ltd (NASDAQ:GILT) reported Q1 2025 earnings that missed analyst expectations, causing shares to fall 9.5% in early trading. Adjusted EPS came in at $0.03, below the $0.07 consensus, while revenue was $92 million, slightly under the projected $94.47 million but up 21% year-over-year.
The company recorded a GAAP net loss of $6.0 million (-$0.11 per share), a reversal from a $5.0 million net income in Q1 2024. The loss was largely due to $3.6 million in ramp-up costs for its Gilat Stellar Blu business, along with amortization and acquisition expenses.
Despite the miss, Gilat reaffirmed its 2025 revenue guidance of $415 million to $455 million, with the midpoint matching analyst expectations and representing 42% YoY growth.
CEO Adi Sfadia highlighted strong execution and growth in the Gilat Defense segment, driven by demand for secure communications. The in-flight connectivity business also continues to expand, with its Sidewinder ESA system now installed on over 150 aircraft, and more orders expected soon.
“Gilat delivered solid Q1 2025 results, demonstrating strong execution across the company and positive impact from our new organizational structure,” said CEO Adi Sfadia. He noted the Gilat Defense segment is experiencing “significant momentum” driven by growing demand for secure communications solutions.
Sfadia added that Gilat’s in-flight connectivity business continues to expand, with its Sidewinder ESA system now flying on over 150 aircraft. The company expects additional orders “very soon” as it develops broader modem compatibility.