Chandler, Ariz., October 14, 2026--Comtech Telecommunications Corp. (NASDAQ: CMTL) today reported financial results for its fourth quarter and fiscal year ended July 31, 2026. The company generated net sales of US$ 66.2 million. Adjusted EBITDA was US$ 9.2 million, or 13.9% of net sales.
Highlights of the results include (al amounts in US$ unless otherwise noted):
- Net sales of $66.2 million
- Gross profit of 40.6%
- Operating loss from continuing operations of $3.9 million and net loss from continuing operations attributable to common shareholders of $9.4 million
- Adjusted EBITDA (a Non-GAAP financial measure) of $9.2 million, or 13.9% of net sales
- Cash flows provided by operations of $18.5 million
- Net bookings of $32.0 million, representing a book-to-bill ratio of 0.48x
- Funded backlog of $520.4 million and revenue visibility of approximately $862.0 million
Net sales were $249.6 million for fiscal 2026, as compared to $300.9 million for fiscal 2025, a decrease of $51.3 million, or 17.0%. Fiscal 2026 and 2025 include net sales of $0.3 million and $48.5 million, respectively, and gross profit of $0.1 million and $1.7 million, respectively, related to the legacy U.S. Army Very Small Aperture Terminal (“VSAT”) Satellite Systems and Services and Global Field Service Representative (“GFSR”) contracts which were previously included within the Company’s S&S segment. These contracts wound down as a result of the Company’s decision to phase out and eliminate certain low margin and capital intensive revenues, are not part of the businesses being acquired by Gilat and, therefore, are not part of discontinued operations. Excluding these now inactive VSAT and GFSR contracts, net sales in the more recent period are comparable to fiscal 2025, but reflect timing considerations as call handling deployments transition to recurring maintenance revenue. The Company estimates that approximately 80% of its fiscal 2026 net sales are recurring in nature.
Gross profit was $97.2 million and $95.2 million for fiscal 2026 and 2025, respectively, an increase of $2.0 million. Gross profit, as a percentage of net sales, for fiscal 2026 was 38.9%, as compared to 31.6% for fiscal 2025. Excluding the inactive contracts discussed above, the improvement in the gross profit percentage in the more recent period reflects the continued adoption of the Company’s solutions by customers, as well as the migration of PSAPs onto its NG9-1-1 core services and call handling platforms.
Operating loss from continuing operations was $18.2 million, compared to $29.9 million in fiscal 2025. Operating loss in fiscal 2026 reflects $14.8 million of amortization of intangibles, $10.0 million of restructuring costs, $3.1 million of amortization of stock-based compensation and $1.2 million in CEO transition costs. Excluding such items, operating income for this past fiscal year would have been $10.8 million, or 4.3% of net sales, as compared to $7.6 million, or 2.5% in the prior year period when excluding similar items including proxy solicitation costs and an impairment of goodwill in fiscal 2025. The improvement in fiscal 2026 primarily reflects higher gross profit (both in dollars and as a percentage of consolidated net sales) and lower selling, general and administrative expenses.
Net loss from continuing operations attributable to common stockholders in fiscal 2026 and 2025 was $51.0 million and $67.9 million, respectively. In addition to those items described above, and as more fully discussed in the Company’s SEC filings, the more recent period includes $32.8 million of net dividends related to Convertible Preferred Stock.
Adjusted EBITDA increased to $20.6 million or 8.3% of net sales, compared to $16.4 million or 5.5% of net sales in the prior year period, reflecting those factors discussed above.
Cash provided by operating activities was $25.0 million for fiscal 2026, as compared to cash used in operating activities of $29.2 million for fiscal 2025. The significant period-over-period improvement in cash flow reflects the operational improvements discussed above, as well as favorable changes in net working capital management, including cash collections of billed accounts receivable and contract assets (i.e., unbilled accounts receivable) during the more recent period. Operating cash flows for fiscal 2026 and 2025 reflect $5.0 million and $12.9 million, respectively, in cash outflows for interest payments and $7.8 million and $19.7 million, respectively, in aggregate cash payments for restructuring costs (including severance), proxy solicitation costs and CEO transition costs.
Bookings were $263.7 million in fiscal 2026, representing a book-to-bill ratio of 1.06x, compared to $212.2 million or 0.71x in fiscal 2025. Fiscal 2026 bookings include a multi-year contract extension earlier in the fiscal year, valued in excess of $130.0 million, by Allerium’s largest customer, a leading telecommunications company in the U.S.
