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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

AUSTIN, Texas, November 4, 2025 -- 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 September 26, 2025.

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 September 26, 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 September 26, 2025, compared to $59.7 million as of June 27, 2025. As of September 26, 2025, total debt was $106.5 million, an increase of $18.9 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, November 4, 2025, to discuss its financial and operational results for the fiscal 2026 first quarter ended September 26, 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 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
Phone: (512) 582-4626
Email: investorinfo@aviatnet.com


Table 1
AVIAT NETWORKS, INC.
Fiscal Year 2026 First Quarter Summary
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 Three Months Ended
(In thousands, except per share amounts)September 26,
2025		September 27,
2024
Revenues:
Product sales$75,084 $61,116 
Services32,236 27,313 
Total revenues107,320 88,429 
Cost of revenues:
Product sales52,687 52,201 
Services18,970 16,440 
Total cost of revenues71,657 68,641 
Gross margin35,663 19,788 
Operating expenses:
Research and development7,098 10,408 
Selling and administrative23,376 24,948 
Total operating expenses30,474 35,356 
Operating income (loss)5,189 (15,568)
Interest expense, net1,712 1,115 
Other expense, net973 710 
Income (loss) before income taxes2,504 (17,393)
Provision for (benefit from) income taxes2,342 (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:
Basic12,760 12,646 
Diluted12,976 12,646 


Table 2
AVIAT NETWORKS, INC.
Fiscal Year 2026 First Quarter Summary
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)September 26,
2025		June 27,
2025
ASSETS
Current Assets:
Cash and cash equivalents$64,831 $59,690 
Accounts receivable, net
180,469 180,321 
Unbilled receivables110,677 105,870 
Inventories84,011 83,979 
Other current assets34,553 33,715 
Total current assets474,541 463,575 
Property, plant and equipment, net18,766 17,453 
Goodwill19,482 19,655 
Intangible assets, net25,834 26,897 
Deferred income taxes88,180 88,149 
Right-of-use assets
2,740 3,113 
Other assets13,773 14,454 
Total long-term assets168,775 169,721 
Total assets$643,316 $633,296 
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable$142,417 $148,093 
Accrued expenses35,828 38,897 
Short-term lease liabilities997 1,090 
Advance payments and unearned revenue73,447 73,735 
Other current liabilities1,070 1,757 
Current portion of long-term debt4,443 18,624 
Total current liabilities258,202 282,196 
Long-term debt102,042 68,966 
Unearned revenue8,784 8,063 
Long-term operating lease liabilities
1,924 2,241 
Other long-term liabilities440 430 
Reserve for uncertain tax positions3,371 3,242 
Deferred income taxes4,917 4,975 
Total liabilities379,680 370,113 
Commitments and contingencies
Stockholder’s equity:
Preferred stock— — 
Common stock128 127 
Treasury stock(7,076)(7,076)
Additional paid-in-capital867,318 866,119 
Accumulated deficit(577,010)(577,172)
Accumulated other comprehensive loss(19,724)(18,815)
Total stockholders’ equity263,636 263,183 
Total liabilities and stockholders’ equity$643,316 $633,296 



 
AVIAT NETWORKS, INC.
Fiscal Year 2026 First 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.
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 3
AVIAT NETWORKS, INC.
Fiscal Year 2026 First Quarter Summary
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (1)
Condensed Consolidated Statements of Operations
(Unaudited)
 Three Months Ended
 September 26, 2025% of
Revenue		September 27, 2024% of
Revenue
 (In thousands, except percentages and per share amounts)
GAAP gross margin$35,663 33.2 %$19,788 22.4 %
Share-based compensation33 104 
Merger and acquisition and other expenses590 608 
Non-GAAP gross margin36,286 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 expenses7,027 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 expenses21,329 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 expense28,356 26.4 %30,015 33.9 %
GAAP operating income (loss)$5,189 4.8 %$(15,568)(17.6)%
Share-based compensation1,555 1,664 
Merger and acquisition and other expenses1,186 4,389 
Non-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)6,014 
Non-GAAP income tax provision700 0.7 %500 0.6 %
GAAP net income (loss)$162 0.2 %$(11,879)(13.4)%
Share-based compensation1,555 1,664 
Merger and acquisition and other expenses1,186 4,389 
Other expense, net973 710 
Adjustment to reflect pro forma tax rate1,642 (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 share
GAAP12,976 12,646 
Non-GAAP12,976 12,804 
Adjusted EBITDA:
GAAP net income (loss)$162 0.2 %$(11,879)(13.4)%
Depreciation and amortization of property, plant and equipment and intangible assets1,182 1,830 
Interest expense, net1,712 1,115 
Other expense, net973 710 
Share-based compensation1,555 1,664 
Merger and acquisition and other expenses1,186 4,389 
Provision for (benefit from) for income taxes2,342 (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 4
AVIAT NETWORKS, INC.
Fiscal Year 2026 First Quarter Summary
SUPPLEMENTAL SCHEDULE OF REVENUE BY GEOGRAPHICAL AREA
(Unaudited)
 
 Three Months Ended
September 26,
2025		September 27,
2024
(In thousands)
North America$52,647 $42,225 
International:
Africa and the Middle East12,796 10,450 
Europe7,560 5,600 
Latin America and Asia Pacific34,317 30,154 
Total international54,673 46,204 
Total revenue$107,320 $88,429