Total Q2 Revenues of $111.5 million
Q2 Operating Income of $7.3 million; Q2 Non-GAAP Operating Income of $9.6 million
Q2 Net Income of $5.7 million; Q2 Adjusted EBITDA of $11.3 million
Q2 Diluted Earnings per Share of $0.44; Q2 Non-GAAP Diluted Earnings per Share of $0.54
AUSTIN, Texas, Feb. 3, 2026 /PRNewswire/ -- Aviat Networks, Inc. ("Aviat Networks," "Aviat," or the "Company"), (Nasdaq: AVNW), the leading expert in wireless transport and access solutions, today reported financial results for its fiscal 2026 second quarter ended December 26, 2025.
Second Quarter Highlights
- Achieved highest level of second quarter bookings in over a decade
- Generated cash from operating activities in the second quarter of $23.9 million
- Realized total quarterly revenues of $111.5 million and fiscal 2026 year-to-date revenues of $218.8 million, up 5.9% versus the first half of fiscal 2025
- Grew GAAP net income by $1.2 million or 27.2% compared to the year-ago quarter and increased GAAP net income by $13.3 million in the first half of fiscal 2026 compared to the first half of fiscal 2025
- Expanded Adjusted EBITDA by $13.2 million in the first half of fiscal 2026 compared to the first half of fiscal 2025, driven by improved gross margins and ongoing operating expense management
- Secured initial purchase order from U.S. tier one operator for Aviat's multi-dwelling unit solution providing multi-gigabit 5G-based services over high-capacity millimeter-wave spectrum
Second Quarter Financial Highlights
- Total Revenues: $111.5 million
- GAAP Results: Gross Margin 32.4%; Operating Expenses $28.8 million; Operating Income $7.3 million; Net Income $5.7 million; Net Income per diluted share ("Net Income per share") $0.44
- Non-GAAP Results: Adjusted EBITDA $11.3 million; Gross Margin 32.9%; Operating Expenses $27.1 million; Operating Income $9.6 million; Net Income $7.0 million; Net Income per share $0.54
- Cash and cash equivalents: $86.5 million
- Net debt: $18.9 million
Fiscal 2026 Second Quarter and Six Months Ended December 26, 2025
Revenues
The Company reported total revenues of $111.5 million for its fiscal 2026 second quarter, compared to $118.2 million in the fiscal 2025 second quarter, a decrease of $(6.7) million or (5.7)%. North America revenue of $52.9 million decreased by $(5.1) million or (8.7)%, compared to $58.0 million in the prior year due to timing of certain private and mobile network projects. International revenue of $58.6 million decreased by $(1.7) million or (2.8)%, compared to $60.2 million in the prior year, primarily due to timing of capital expenditure plans of mobile network operators.
For the six months ended December 26, 2025, revenue increased 5.9% to $218.8 million, compared to $206.6 million in the same period of fiscal 2025. North America revenue of $105.5 million increased by $5.4 million or 5.4%, compared to $100.2 million in the same period of fiscal 2025. International revenue of $113.2 million increased by $6.8 million or 6.4% as compared to $106.4 million in the same period of fiscal 2025.
Gross Margins
In the fiscal 2026 second quarter, the Company reported GAAP gross margin of 32.4% and non-GAAP gross margin of 32.9%. This compares to GAAP gross margin of 34.6% and non-GAAP gross margin of 35.3% in the fiscal 2025 second quarter, a decrease of (220) and (240) basis points, respectively. The decrease was driven by regional and product mix in the quarter.
For the six months ended December 26, 2025, the Company reported GAAP gross margin of 32.8% and non-GAAP gross margin of 33.4%. This compares to GAAP gross margin of 29.4% and non-GAAP gross margin of 30.1% in the same period of fiscal 2025, an increase of 340 and 330 basis points, respectively.
Operating Expenses
The Company reported GAAP total operating expenses of $28.8 million for the fiscal 2026 second quarter, compared to $32.9 million in the fiscal 2025 second quarter. Non-GAAP total operating expenses, excluding the impact of restructuring charges, share-based compensation, and merger and acquisition and other expenses for the fiscal 2026 second quarter were $27.1 million, compared to $29.1 million in the prior year, a decrease of $(2.0) million or (7.0)%.
For the six months ended December 26, 2025, the Company reported total operating expenses of $59.3 million, compared to $68.3 million in the same period of fiscal 2025, a decrease of $(9.0) million or (13.2)%. Non-GAAP total operating expenses, excluding the impact of restructuring charges, share-based compensation, and merger and acquisition expenses and other expenses for the six months ended December 26, 2025 were $55.4 million, compared to $59.1 million in the same period of fiscal 2025, a decrease of $(3.7) million or (6.2)%.
Operating Income
The Company reported GAAP operating income of $7.3 million for the fiscal 2026 second quarter, compared to GAAP operating income of $8.0 million in the fiscal 2025 second quarter, a decrease of $(0.7) million. Operating income decreased primarily due to lower gross margin dollars. On a non-GAAP basis, the Company reported operating income of $9.6 million for the fiscal 2026 second quarter, compared to non-GAAP operating income of $12.6 million in the prior year, a decrease of $(2.9) million.
For the six months ended December 26, 2025, the Company reported a GAAP operating income of $12.5 million, compared to operating loss of $(7.6) million in the same period of fiscal 2025, an increase of $20.1 million. On a non-GAAP basis, the Company reported operating income of $17.6 million, compared to an operating income of $3.1 million in the same period of fiscal 2025, an increase of $14.5 million.
Net Income / Net Income Per Share
The Company reported GAAP net income of $5.7 million in the fiscal 2026 second quarter or GAAP net income per share of $0.44. This compared to GAAP net income of $4.5 million or GAAP net income per share of $0.35 in the fiscal 2025 second quarter. On a non-GAAP basis, the Company reported non-GAAP net income of $7.0 million or non-GAAP net income per share of $0.54, compared to non-GAAP net income of $10.5 million or $0.82 per share in the prior year.
The Company reported GAAP net income of $5.9 million for the six months ended December 26, 2025, or GAAP net income per diluted share of $0.45. This compared to GAAP net loss of $(7.4) million or $(0.58) per share in the comparable fiscal 2025 period. On a non-GAAP basis, the Company reported net income of $12.5 million or net income per share of $0.97 for the six months ended December 26, 2025, as compared to non-GAAP net loss of $(0.6) million or $(0.05) per share in the comparable fiscal 2025 period.
Adjusted EBITDA
Adjusted earnings before interest, tax, depreciation and amortization ("Adjusted EBITDA") for the fiscal 2026 second quarter was $11.3 million, compared to $14.8 million in the fiscal 2025 second quarter, a decrease of $(3.6) million.
For the six months ended December 26, 2025, the Company reported Adjusted EBITDA of $20.4 million, as compared to $7.2 million in the comparable fiscal 2025 period, an increase of $13.2 million.
Balance Sheet Highlights
The Company reported $86.5 million in cash and cash equivalents as of December 26, 2025, compared to $59.7 million as of June 27, 2025, an increase of $26.8 million. As of December 26, 2025, total debt was $105.4 million, an increase of $17.8 million from June 27, 2025.
Fiscal 2026 Full Year Outlook
The Company is leaving its fiscal 2026 full year guidance as previously stated:
- Full year Revenue between $440 and $460 million
- Full year Adjusted EBITDA between $45.0 and $55.0 million
Conference Call Details
Aviat Networks will host a conference call at 5:00 p.m. Eastern Time (ET) today, February 3, 2026, to discuss its financial and operational results for the fiscal 2026 second quarter ended December 26, 2025. Participating on the call will be Peter Smith, President and Chief Executive Officer; Andy Schmidt, Senior Vice President and Chief Financial Officer; and Andrew Fredrickson, Vice President, Corporate Finance. Following management's remarks, there will be a question and answer period.
Interested parties may access the conference call live via the webcast through Aviat Network's Investor Relations website at investors.aviatnetworks.com/events-and-presentations/events, or may participate via telephone by registering using this online form. Once registered, telephone participants will receive the dial-in number along with a unique PIN number that must be used to access the call. A replay of the conference call webcast will be available after the call on the Company's investor relations website.
About Aviat Networks
Aviat Networks, Inc. is the leading expert in wireless transport and access solutions and works to provide dependable products, services and support to its customers. With more than one million systems sold into 170 countries worldwide, communications service providers and private network operators including state/local government, utility, federal government and defense organizations trust Aviat with their critical applications. Coupled with a long history of microwave innovations, Aviat provides a comprehensive suite of localized professional and support services enabling customers to drastically simplify both their networks and their lives. For more than 70 years, the experts at Aviat have delivered high performance products, simplified operations, and the best overall customer experience. Aviat is headquartered in Austin, Texas. For more information, visit www.aviatnetworks.com or connect with Aviat Networks on Facebook and LinkedIn.
Forward-Looking Statements
The information contained in this Current Report on Form 8-K includes forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including Aviat's beliefs and expectations regarding outlook, business conditions, new product solutions, customer positioning, future orders, bookings, new contracts, cost structure, profitability in fiscal 2026, its recent acquisitions and acquisition strategy, process improvements, measures designed to improve internal controls, its ability to maintain effective internal control over financial reporting and management systems and remediate material weaknesses, plans and objectives of management, realignment plans and review of strategic alternatives and expectations regarding future revenue, gross margin, Adjusted EBITDA, operating income or earnings or loss per share. All statements, trend analyses and other information contained herein regarding the foregoing beliefs and expectations, as well as about the markets for the services and products of Aviat and trends in revenue, and other statements identified by the use of forward-looking terminology, including "anticipate," "believe," "plan," "estimate," "expect," "goal," "will," "see," "continue," "delivering," "view," and "intend," or the negative of these terms or other similar expressions, constitute forward-looking statements. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, forward-looking statements are based on estimates reflecting the current beliefs, expectations and assumptions of the senior management of Aviat regarding the future of its business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Such forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Forward-looking statements should therefore be considered in light of various important factors, including those set forth in this document. Therefore, you should not rely on any of these forward-looking statements.
Important factors that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements include the following: the disruption the 4RF and NEC transactions may cause to customers, vendors, business partners and our ongoing business; our ability to integrate the operations of the acquired 4RF and NEC businesses with our existing operations and fully realize the expected synergies of the 4RF and NEC transactions on the expected timeline; disruptions relating to the ongoing conflict between Russia and Ukraine and the conflict in Israel and surrounding areas; continued price and margin erosion in the microwave transmission industry; the impact of the volume, timing, and customer, product, and geographic mix of our product orders; our ability to meet financial covenant requirements; the timing of our receipt of payment; our ability to meet product development dates or anticipated cost reductions of products; our suppliers' inability to perform and deliver on time, component shortages, or other supply chain constraints; the effects of inflation; customer acceptance of new products; the ability of our subcontractors to timely perform; weakness in the global economy affecting customer spending; retention of our key personnel; our ability to manage and maintain key customer relationships; uncertain economic conditions in the telecommunications sector combined with operator and supplier consolidation; our failure to protect our intellectual property rights or defend against intellectual property infringement claims; the results of our restructuring efforts; the effects of currency and interest rate risks; the ability to preserve and use our net operating loss carryforwards; the effects of current and future government regulations; general economic conditions, including uncertainty regarding the timing, pace and extent of an economic recovery in the United States and other countries where we conduct business; the conduct of unethical business practices in developing countries; the impact of political turmoil in countries where we have significant business; our ability to realize the anticipated benefits of any proposed or recent acquisitions; the impact of tariffs, the adoption of trade restrictions affecting our products or suppliers, a United States withdrawal from or significant renegotiation of trade agreements, the occurrence of trade wars, the closing of border crossings, and other changes in trade regulations or relationships; our ability to implement our stock repurchase program or that it will enhance long-term stockholder value; and the impact of adverse developments affecting the financial services industry, including events or concerns involving liquidity, defaults or non-performance by financial institutions.
For more information regarding the risks and uncertainties for Aviat's business, see "Risk Factors" in Aviat's Form 10-K for the fiscal year ended June 27, 2025 filed with the U.S. Securities and Exchange Commission ("SEC") on September 10, 2025, as well as other reports filed by Aviat with the SEC from time to time. Aviat undertakes no obligation to update publicly any forward-looking statement, whether written or oral, for any reason, except as required by law, even as new information becomes available or other events occur in the future.
Investor Relations:
Andrew Fredrickson
Email: investorinfo@aviatnet.com
Table 1
AVIAT NETWORKS, INC.
Fiscal Year 2026 Second Quarter Summary
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Six Months Ended
(In thousands, except per share amounts) December 26, December 27, December 26, December 27,
2025 2024 2025 2024
Revenues:
Product sales $81,210 $82,312 $156,294 $143,428
Services 30,262 35,885 62,498 63,198
Total revenues 111,472 118,197 218,792 206,626
Cost of revenues:
Product sales 54,459 54,969 107,146 107,170
Services 20,912 22,342 39,882 38,782
Total cost of revenues 75,371 77,311 147,028 145,952
Gross margin 36,101 40,886 71,764 60,674
Operating expenses:
Research and development 6,409 10,222 13,507 20,630
Selling and administrative 22,384 21,279 45,760 46,227
Total operating expenses 28,814 32,916 59,288 68,272
Operating income (loss) 7,287 7,970 12,476 (7,598)
Interest expense, net 1,908 1,580 3,620 2,695
Other (income) expense, net (2,744) 269 (1,771) 979
Income (loss) before income taxes 8,123 6,121 10,627 (11,272)
Provision for (benefit from) income taxes 2,405 1,626 4,747 (3,888)
Net income (loss) $5,718 $4,495 $5,880 $(7,384)
Net income (loss) per share of common stock outstanding:
Basic $0.44 $0.35 $0.46 $(0.58)
Diluted $0.44 $0.35 $0.45 $(0.58)
Weighted-average shares outstanding:
Basic 12,856 12,689 12,808 12,667
Diluted 13,005 12,784 12,995 12,667
Table 2
AVIAT NETWORKS, INC.
Fiscal Year 2026 Second Quarter Summary
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands) December 26, June 27,
2025 2025
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $86,466 $59,690
Accounts receivable, net 203,123 180,321
Unbilled receivables 90,612 105,870
Inventories 76,637 83,979
Other current assets 37,016 33,715
Total current assets 493,854 463,575
Property, plant and equipment, net 19,074 17,453
Goodwill 19,544 19,655
Intangible assets, net 25,173 26,897
Deferred income taxes 84,591 88,149
Right-of-use assets 2,805 3,113
Other assets 14,314 14,454
Total long-term assets 165,501 169,721
Total assets $659,355 $633,296
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable $145,412 $148,093
Accrued expenses 31,560 38,897
Short-term lease liabilities 787 1,090
Advance payments and unearned revenue 84,452 73,735
Other current liabilities 444 1,757
Current portion of long-term debt 4,443 18,624
Total current liabilities 267,098 282,196
Long-term debt 100,931 68,966
Unearned revenue 8,579 8,063
Long-term operating lease liabilities 2,199 2,241
Other long-term liabilities 450 430
Reserve for uncertain tax positions 3,570 3,242
Deferred income taxes 4,917 4,975
Total liabilities 387,744 370,113
Commitments and contingencies
Stockholder's equity:
Preferred stock -
Common stock 129 127
Treasury stock (7,076) (7,076)
Additional paid-in-capital 868,423 866,119
Accumulated deficit (571,292) (577,172)
Accumulated other comprehensive loss (18,573) (18,815)
Total stockholders' equity 271,611 263,183
Total liabilities and stockholders' equity $659,355 $633,296
AVIAT NETWORKS, INC.
Fiscal Year 2026 Second Quarter Summary
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND REGULATION G DISCLOSURE
To supplement the consolidated financial statements presented in accordance with accounting principles generally accepted in the United States (GAAP), we provide additional measures of gross margin, research and development
expenses, selling and administrative expenses, operating expenses, operating income, provision for or benefit from income taxes, net income, net income per share, and adjusted income before interest, tax, depreciation and
amortization (Adjusted EBITDA), in each case, adjusted to exclude certain costs, charges, gains and losses, as set forth below. We believe that these non-GAAP financial measures, when considered together with the GAAP
financial measures provide information that is useful to investors in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportionate positive or negative impact
on results in any particular period. We also believe these non-GAAP measures enhance the ability of investors to analyze trends in our business and to understand our performance. In addition, we may utilize non-GAAP
financial measures as a guide in our forecasting, budgeting and long-term planning process and to measure operating performance for some management compensation purposes. Any analysis of non-GAAP financial measures should be
used only in conjunction with results presented in accordance with GAAP. Reconciliations of these non-GAAP financial measures with the most directly comparable financial measures calculated in accordance with GAAP follow.
(1)We have not reconciled Adjusted EBITDA guidance to its corresponding GAAP measure due to the high variability and difficulty in making accurate forecasts and projections, particularly with respect to merger and acquisition
costs and share-based compensation. In particular, share-based compensation expense is affected by future hiring, turnover, and retention needs, as well as the future fair market value of our common stock, all of which are
difficult to predict and subject to change. Accordingly, reconciliations of forward-looking Adjusted EBITDA are not available without unreasonable effort.
Table 3
AVIAT NETWORKS, INC.
Fiscal Year 2026 Second Quarter Summary
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (1)
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended
Six Months Ended
December 26, % of December 27, % of December 26, % of December 27, % of
2025 2024 2025 2024
Revenue Revenue Revenue Revenue
(In thousands, except percentages and per share amounts)
GAAP gross margin $36,101 32.4 % $40,886 34.6 % $71,764 32.8 % $60,674 29.4 %
Share-based
compensation 35 111 68 215
Merger and
acquisition and
other expenses 588 693 1,178 1,300
Non-GAAP gross
margin 36,724 32.9 % 41,690 35.3 % 73,010 33.4 % 62,189 30.1 %
GAAP research and
development
expenses $6,409 5.7 % $10,222 8.6 % $13,507 6.2 % $20,630 10.0 %
Share-based
compensation 8 (164) (63) (307)
Non-GAAP
research and
development
expenses 6,417 5.8 % 10,058 8.5 % 13,444 6.1 % 20,323 9.8 %
GAAP selling and
administrative
expenses $22,384 20.1 % $21,279 18.0 % $45,760 20.9 % $46,227 22.4 %
Share-based
compensation (1,321) (1,699) (2,772) (3,116)
Merger and
acquisition and
other expenses (391) (514) (987) (4,295)
Non-GAAP selling
and
administrative
expenses 20,672 18.5 % 19,066 16.1 % 42,001 19.2 % 38,816 18.8 %
GAAP operating
expense $28,814 25.8 % $32,916 27.8 % $59,288 27.1 % $68,272 33.0 %
Share-based
compensation (1,313) (1,863) (2,835) (3,423)
Merger and
acquisition and
other expenses (391) (514) (987) (4,295)
Restructuring
charges (21) (1,415) (21) (1,415)
Non-GAAP
operating
expense 27,089 24.3 % 29,124 24.6 % 55,445 25.3 % 59,139 28.6 %
GAAP operating
income (loss) $7,287 6.5 % $7,970 6.7 % $12,476 5.7 % $(7,598) (3.7) %
Share-based
compensation 1,348 1,974 2,903 3,638
Merger and
acquisition and
other expenses 979 1,207 2,165 5,595
Restructuring
charges 21 1,415 21 1,415
Non-GAAP
operating income 9,635 8.6 % 12,566 10.6 % 17,565 8.0 % 3,050 1.5 %
GAAP income tax
provision
(benefit) $2,405 2.2 % $1,626 1.4 % $4,747 2.2 % $(3,888) (1.9) %
Adjustment to
reflect pro
forma tax rate (1,705) (1,126) (3,347) 4,888
Non-GAAP income
tax provision 700 0.6 % 500 0.4 % 1,400 0.6 % 1,000 0.5 %
GAAP net income
(loss) $5,718 5.1 % $4,495 3.8 % $5,880 2.7 % $(7,384) (3.6) %
Share-based
compensation 1,348 1,974 2,903 3,638
Merger and
acquisition and
other expenses 979 1,207 2,165 5,595
Restructuring
charges 21 1,415 21 1,415
Other (income)
expense, net (2,744) 269 (1,771) 979
Adjustment to
reflect pro
forma tax rate 1,705 1,126 3,347 (4,888)
Non-GAAP net
income (loss) $7,027 6.3 % $10,486 8.9 % $12,545 5.7 % $(645) (0.3) %
Diluted net income (loss) per share:
GAAP $0.44 $0.35 $0.45 $(0.58)
Non-GAAP $0.54 $0.82 $0.97 $(0.05)
Shares used in computing diluted
net income (loss) per share
GAAP 13,005 12,784 12,995 12,667
Non-GAAP 13,005 12,784 12,995 12,802
Adjusted EBITDA:
---
GAAP net income
(loss) $5,718 5.1 % $4,495 3.8 % $5,880 2.7 % $(7,384) (3.6) %
Depreciation and
amortization of
property, plant
and equipment
and intangible
assets 1,640 2,275 2,822 4,105
Interest expense,
net 1,908 1,580 3,620 2,695
Other (income)
expense, net (2,744) 269 (1,771) 979
Share-based
compensation 1,348 1,974 2,903 3,638
Merger and
acquisition and
other expenses 979 1,207 2,165 5,595
Restructuring
charges 21 1,415 21 1,415
Provision for
(benefit from)
for income taxes 2,405 1,626 4,747 (3,888)
Adjusted EBITDA $11,275 10.1 % $14,841 12.6 % $20,387 9.3 % $7,155 3.5 %
(1) The adjustments above reconcile our GAAP financial results to the non-GAAP financial
measures used by us. Our non-GAAP net income excluded share-based compensation, and other
non-recurring charges (recovery). Adjusted EBITDA was determined by excluding depreciation
and amortization on property, plant and equipment, interest, provision for or benefit from
income taxes, and non-GAAP pre-tax adjustments, as set forth above, from GAAP net income.
We believe that the presentation of these non-GAAP items provides meaningful supplemental
information to investors, when viewed in conjunction with, and not in lieu of, our GAAP
results. However, the non-GAAP financial measures have not been prepared under a
comprehensive set of accounting rules or principles. Non-GAAP information should not be
considered in isolation from, or as a substitute for, information prepared in accordance
with GAAP. Moreover, there are material limitations associated with the use of non-GAAP
financial measures.
Table 4
AVIAT NETWORKS, INC.
Fiscal Year 2026 Second Quarter Summary
SUPPLEMENTAL SCHEDULE OF REVENUE BY GEOGRAPHICAL AREA
(Unaudited)
Three Months Ended Six Months Ended
December 26, December 27, December 26, December 27,
2025 2024 2025 2024
(In thousands)
North America $52,901 $57,962 $105,548 $100,187
International:
Africa and the Middle East 14,626 12,674 27,422 23,124
Europe 11,425 8,347 18,985 13,947
Latin America and Asia Pacific 32,520 39,214 66,837 69,368
Total international 58,571 60,235 113,244 106,439
Total revenue $111,472 $118,197 $218,792 $206,626
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