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Aviat Networks Announces Fiscal 2026 Second Quarter and Six Month Financial Results

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, February 3, 2026 -- 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 EndedSix Months Ended
(In thousands, except per share amounts)December 26,
2025		December 27,
2024		December 26,
2025		December 27,
2024
Revenues:
Product sales$81,210 $82,312 $156,294 $143,428 
Services30,262 35,885 62,498 63,198 
Total revenues111,472 118,197 218,792 206,626 
Cost of revenues:
Product sales54,459 54,969 107,146 107,170 
Services20,912 22,342 39,882 38,782 
Total cost of revenues75,371 77,311 147,028 145,952 
Gross margin36,101 40,886 71,764 60,674 
Operating expenses:
Research and development6,409 10,222 13,507 20,630 
Selling and administrative22,384 21,279 45,760 46,227 
Total operating expenses28,814 32,916 59,288 68,272 
Operating income (loss)7,287 7,970 12,476 (7,598)
Interest expense, net1,908 1,580 3,620 2,695 
Other (income) expense, net(2,744)269 (1,771)979 
Income (loss) before income taxes8,123 6,121 10,627 (11,272)
Provision for (benefit from) income taxes2,405 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:
Basic12,856 12,689 12,808 12,667 
Diluted13,005 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,
2025		June 27,
2025
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents$86,466 $59,690 
Accounts receivable, net
203,123 180,321 
Unbilled receivables90,612 105,870 
Inventories76,637 83,979 
Other current assets37,016 33,715 
Total current assets493,854 463,575 
Property, plant and equipment, net19,074 17,453 
Goodwill19,544 19,655 
Intangible assets, net25,173 26,897 
Deferred income taxes84,591 88,149 
Right-of-use assets
2,805 3,113 
Other assets14,314 14,454 
Total long-term assets165,501 169,721 
Total assets$659,355 $633,296 
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable$145,412 $148,093 
Accrued expenses31,560 38,897 
Short-term lease liabilities787 1,090 
Advance payments and unearned revenue84,452 73,735 
Other current liabilities444 1,757 
Current portion of long-term debt4,443 18,624 
Total current liabilities267,098 282,196 
Long-term debt100,931 68,966 
Unearned revenue8,579 8,063 
Long-term operating lease liabilities
2,199 2,241 
Other long-term liabilities450 430 
Reserve for uncertain tax positions3,570 3,242 
Deferred income taxes4,917 4,975 
Total liabilities387,744 370,113 
Commitments and contingencies
Stockholder’s equity:
Preferred stock— — 
Common stock129 127 
Treasury stock(7,076)(7,076)
Additional paid-in-capital868,423 866,119 
Accumulated deficit(571,292)(577,172)
Accumulated other comprehensive loss(18,573)(18,815)
Total stockholders’ equity271,611 263,183 
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.
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 Second Quarter Summary
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (1)
Condensed Consolidated Statements of Operations
(Unaudited)
 Three Months EndedSix Months Ended
 December 26, 2025% of
Revenue		December 27, 2024% of
Revenue		December 26, 2025% of
Revenue		December 27, 2024% of
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 compensation35 111 68 215 
Merger and acquisition and other expenses588 693 1,178 1,300 
Non-GAAP gross margin36,724 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 compensation8 (164)(63)(307)
Non-GAAP research and development expenses6,417 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 expenses20,672 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 expense27,089 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 compensation1,348 1,974 2,903 3,638 
Merger and acquisition and other expenses979 1,207 2,165 5,595 
Restructuring charges21 1,415 21 1,415 
Non-GAAP operating income9,635 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 provision700 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 compensation1,348 1,974 2,903 3,638 
Merger and acquisition and other expenses979 1,207 2,165 5,595 
Restructuring charges21 1,415 21 1,415 
Other (income) expense, net(2,744)269 (1,771)979 
Adjustment to reflect pro forma tax rate1,705 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
GAAP13,005 12,784 12,995 12,667 
Non-GAAP13,005 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 assets1,640 2,275 2,822 4,105 
Interest expense, net1,908 1,580 3,620 2,695 
Other (income) expense, net(2,744)269 (1,771)979 
Share-based compensation1,348 1,974 2,903 3,638 
Merger and acquisition and other expenses979 1,207 2,165 5,595 
Restructuring charges21 1,415 21 1,415 
Provision for (benefit from) for income taxes2,405 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 EndedSix Months Ended
December 26,
2025		December 27,
2024		December 26,
2025		December 27,
2024
(In thousands)
North America$52,901 $57,962 $105,548 $100,187 
International:
Africa and the Middle East14,626 12,674 27,422 23,124 
Europe11,425 8,347 18,985 13,947 
Latin America and Asia Pacific32,520 39,214 66,837 69,368 
Total international58,571 60,235 113,244 106,439 
Total revenue$111,472 $118,197 $218,792 $206,626