Aviat Networks Announces Fiscal 2026 First Quarter and Three Month Financial Results

Total Revenue of $107.3 million; Up 21.4% Year-Over-Year

Operating Income of $5.2 million; Non-GAAP Operating Income of $7.9 million

Net Income of $0.2 million; Adjusted EBITDA of $9.1 million

Diluted Earnings per Share of $0.01; Non-GAAP Diluted Earnings per Share of $0.43

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 first quarter ended September26, 2025.

https://mma.prnewswire.com/media/354515/Aviat_Networks_Logo.jpg

First Quarter Highlights

— Increased quarterly revenues by 21% and trailing-twelve month revenues by 11% versus a year ago

— Grew GAAP net income by $12 million year-over-year

— Expanded Adjusted EBITDA by $17 million year-over-year, driven by improved gross margins and ongoing operating expense cost management versus the year-ago period

— Launched Aprisa LTE 5G router solution designed for vehicle deployments in law enforcement, emergency services, public safety agencies, and industrial enterprise applications, expanding Aviat's product portfolio offering in its Private Networks segment

First Quarter Financial Highlights

— Total Revenues: $107.3 million, up 21.4% from the same quarter last year

— GAAP Results: Gross Margin 33.2%; Operating Expenses $30.5 million; Operating Income $5.2 million; Net Income $0.2 million; Net Income per diluted share (“Net Income per share”) $0.01

— Non-GAAP Results: Adjusted EBITDA $9.1 million; Gross Margin 33.8%; Operating Expenses $28.4 million; Operating Income $7.9 million; Net Income $5.5 million; Net Income per share $0.43

— Cash and cash equivalents: $64.8 million

— Net debt: $41.7 million

Fiscal 2026 First Quarter and Three Months Ended September26, 2025

Revenues

The Company reported total revenues of $107.3 million for its fiscal 2026 first quarter, compared to $88.4 million in the fiscal 2025 first quarter, an increase of $18.9 million or 21.4%. North America revenue of $52.6 million increased by $10.4 million or 24.7%, compared to $42.2 million in the prior year due to strength from private network projects. International revenue of $54.7 million increased by $8.5 million or 18.3%, compared to $46.2 million in the prior year, primarily due to timing of capital expenditure plans of mobile network operators.

Gross Margins

In the fiscal 2026 first quarter, the Company reported GAAP gross margin of 33.2% and non-GAAP gross margin of 33.8%. This compares to GAAP gross margin of 22.4% and non-GAAP gross margin of 23.2% in the fiscal 2025 first quarter, an increase of 1,080 and 1,060 basis points, respectively. The increase was driven by regional and product mix in the quarter.

Operating Expenses

The Company reported GAAP total operating expenses of $30.5 million for the fiscal 2026 first quarter, compared to $35.4 million in the fiscal 2025 first 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 first quarter were $28.4 million, compared to $30.0 million in the prior year, a decrease of $(1.7) million or (5.5)%.

Operating Income

The Company reported GAAP operating income of $5.2 million for the fiscal 2026 first quarter, compared to GAAP operating loss of $(15.6) million in the fiscal 2025 first quarter, an increase of $20.8 million. Operating income increased primarily due to higher gross margin dollars and less operating expenses. On a non-GAAP basis, the Company reported operating income of $7.9 million for the fiscal 2026 first quarter, compared to non-GAAP operating loss of $(9.5) million in the prior year, an increase of $17.4 million.

Income Taxes

The Company reported GAAP income tax expense of $2.3 million in the fiscal 2026 first quarter, compared to GAAP income tax benefit of $(5.5) million in the fiscal 2025 first quarter.

Net Income / Net Income Per Share

The Company reported GAAP net income of $0.2 million in the fiscal 2026 first quarter or GAAP net income per share of $0.01. This compared to GAAP net loss of $(11.9) million or GAAP net loss per share of $(0.94) in the fiscal 2025 first quarter. On a non-GAAP basis, the Company reported non-GAAP net income of $5.5 million or non-GAAP net income per share of $0.43, compared to non-GAAP net loss of $(11.1) million or $(0.87) per share in the prior year.

Adjusted EBITDA

Adjusted earnings before interest, tax, depreciation and amortization (“Adjusted EBITDA”) for the fiscal 2026 first quarter was $9.1 million, compared to $(7.7) million in the fiscal 2025 first quarter, an increase of $16.8 million.

Balance Sheet Highlights

The Company reported $64.8 million in cash and cash equivalents as of September26, 2025, compared to $59.7 million as of June27, 2025. As of September26, 2025, total debt was $106.5 million, an increase of $18.9 million from June27, 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, November4, 2025, to discuss its financial and operational results for the fiscal 2026 first quarter ended September26, 2025. Participating on the call will be Peter Smith, President and Chief Executive Officer, and Andrew Fredrickson, Interim Chief Financial Officer. 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 usingthis 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 withAviat NetworksonFacebookandLinkedIn.

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 June27, 2025 filed with the U.S. Securities and Exchange Commission (“SEC”) on September10, 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 Phone: (512) 582-4626 Email: investorinfo@aviatnet.com

Table 1AVIAT NETWORKS, INC.Fiscal Year 2026 First Quarter SummaryCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited) Three Months Ended(Inthousands,exceptpershareamounts) September 26, September 27, 2025 2024Revenues:Product sales $ 75,084 $ 61,116Services 32,236 27,313Total revenues 107,320 88,429Cost of revenues:Product sales 52,687 52,201Services 18,970 16,440Total cost of revenues 71,657 68,641Gross margin 35,663 19,788Operating expenses:Research and development 7,098 10,408Selling and administrative 23,376 24,948Total operating expenses 30,474 35,356Operating income (loss) 5,189 (15,568)Interest expense, net 1,712 1,115Other expense, net 973 710Income (loss) before income taxes 2,504 (17,393)Provision for (benefit from) income taxes 2,342 (5,514)Net income (loss) $ 162 $ (11,879)Net income (loss) per share of common stock outstanding:Basic $ 0.01 $ (0.94)Diluted $ 0.01 $ (0.94)Weighted-average shares outstanding:Basic 12,760 12,646Diluted 12,976 12,646Table 2AVIAT NETWORKS, INC.Fiscal Year 2026 First Quarter SummaryCONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited)(Inthousands) September 26, June 27, 2025 2025ASSETSCurrent Assets:Cash and cash equivalents $ 64,831 $ 59,690Accounts receivable, net 180,469 180,321Unbilled receivables 110,677 105,870Inventories 84,011 83,979Other current assets 34,553 33,715Total current assets 474,541 463,575Property, plant and equipment, net 18,766 17,453Goodwill 19,482 19,655Intangible assets, net 25,834 26,897Deferred income taxes 88,180 88,149Right-of-use assets 2,740 3,113Other assets 13,773 14,454Total long-term assets 168,775 169,721Total assets $ 643,316 $ 633,296LIABILITIES AND EQUITYCurrent Liabilities:Accounts payable $ 142,417 $ 148,093Accrued expenses 35,828 38,897Short-term lease liabilities 997 1,090Advance payments and unearned revenue 73,447 73,735Other current liabilities 1,070 1,757Current portion of long-term debt 4,443 18,624Total current liabilities 258,202 282,196Long-term debt 102,042 68,966Unearned revenue 8,784 8,063Long-term operating lease liabilities 1,924 2,241Other long-term liabilities 440 430Reserve for uncertain tax positions 3,371 3,242Deferred income taxes 4,917 4,975Total liabilities 379,680 370,113Commitments and contingenciesStockholder's equity:Preferred stock – -Common stock 128 127Treasury stock (7,076) (7,076)Additional paid-in-capital 867,318 866,119Accumulated deficit (577,010) (577,172)Accumulated other comprehensive loss (19,724) (18,815)Total stockholders' equity 263,636 263,183Total liabilities and stockholders' equity $ 643,316 $ 633,296AVIAT NETWORKS, INC.Fiscal Year 2026 First Quarter SummaryRECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND REGULATION G DISCLOSURETo 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.1We 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 3AVIAT NETWORKS, INC.Fiscal Year 2026 First Quarter SummaryRECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (1)Condensed Consolidated Statements of Operations(Unaudited) Three Months Ended September 26, % of September 27, % of 2025 Revenue 2024 Revenue (In thousands, except percentages and per share amounts)GAAP gross margin $ 35,663 33.2% $ 19,788 22.4%Share-based compensation 33 104Merger and acquisition and other expenses 590 608Non-GAAP gross margin 36,286 33.8% 20,500 23.2%GAAP research and development expenses $ 7,098 6.6% $ 10,408 11.8%Share-based compensation (71) (143)Non-GAAP research and development expenses 7,027 6.5% 10,265 11.6%GAAP selling and administrative expenses $ 23,376 21.8% $ 24,948 28.2%Share-based compensation (1,451) (1,417)Merger and acquisition and other expenses (596) (3,781)Non-GAAP selling and administrative expenses 21,329 19.9% 19,750 22.3%GAAP operating expense $ 30,474 28.4% $ 35,356 40.0%Share-based compensation (1,522) (1,560)Merger and acquisition and other expenses (596) (3,781)Non-GAAP operating expense 28,356 26.4% 30,015 33.9%GAAP operating income (loss) $ 5,189 4.8% $ (15,568) (17.6)%Share-based compensation 1,555 1,664Merger and acquisition and other expenses 1,186 4,389Non-GAAP operating income (loss) 7,930 7.4% (9,515) (10.8)%GAAP income tax provision (benefit) $ 2,342 2.2% $ (5,514) (6.2)%Adjustment to reflect pro forma tax rate (1,642) 6,014Non-GAAP income tax provision 700 0.7% 500 0.6%GAAP net income (loss) $ 162 0.2% $ (11,879) (13.4)%Share-based compensation 1,555 1,664Merger and acquisition and other expenses 1,186 4,389Other expense, net 973 710Adjustment to reflect pro forma tax rate 1,642 (6,014)Non-GAAP net income (loss) $ 5,518 5.1% $ (11,130) (12.6)%Diluted net income (loss) per share:GAAP $ 0.01 $ (0.94)Non-GAAP $ 0.43 $ (0.87)Shares used in computing diluted net income (loss) per shareGAAP 12,976 12,646Non-GAAP 12,976 12,804Adjusted EBITDA:GAAP net income (loss) $ 162 0.2% $ (11,879) (13.4)%Depreciation and amortization of property, plant and equipment and intangible assets 1,182 1,830Interest expense, net 1,712 1,115Other expense, net 973 710Share-based compensation 1,555 1,664Merger and acquisition and other expenses 1,186 4,389Provision for (benefit from) for income taxes 2,342 (5,514)Adjusted EBITDA $ 9,112 8.5% $ (7,685) (8.7)%(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 4AVIAT NETWORKS, INC.Fiscal Year 2026 First Quarter SummarySUPPLEMENTAL SCHEDULE OF REVENUE BY GEOGRAPHICAL AREA(Unaudited) Three Months Ended September 26, September 27, 2025 2024(In thousands)North America $ 52,647 $ 42,225International:Africa and the Middle East 12,796 10,450Europe 7,560 5,600Latin America and Asia Pacific 34,317 30,154Total international 54,673 46,204Total revenue $ 107,320 $ 88,429

https://edge.prnewswire.com/c/img/favicon.png?sn=FL14659&sd=2025-11-04

View original content to download multimedia:https://www.prnewswire.com/news-releases/aviat-networks-announces-fiscal-2026-first-quarter-and-three-month-financial-results-302604682.html

SOURCE Aviat Networks, Inc.

https://rt.newswire.ca/rt.gif?NewsItemId=FL14659&Transmission_Id=202511041615PR_NEWS_USPR_____FL14659&DateId=20251104