Gilat Satellite Networks Ltd (NASDAQ:GILT) stock rose 1.59% (As on May 20, 11:26:12 AM UTC-4, Source: Google Finance) after the company reported first quarter 2025 results that fell short of analyst expectations. Gilat’s GAAP results swung to a net loss of $6.0 million, or -$0.11 per share, compared to net income of $5.0 million, or $0.09 per diluted share, in Q1 2024. The company attributed the loss primarily to $3.6 million in ramp-up costs for its Gilat Stellar Blu business, as well as amortization and acquisition-related expenses.  Gilat Stellar Blu’s ramp up is on track, and its Sidewinder ESA is now flying on over 150 aircraft, with strong feedback and additional orders expected very soon. The company is collaborating with the partners to expand into new applications such as ISR and VVIP aviation. the company is also in the process of developing OEM installation and broader modem compatibility, further establishing Sidewinder as the go-to multi-orbit IFC solution. Further,  Gilat Defense is experiencing significant momentum, fueled by growing demand for its broad portfolio of products and services and is becoming an increasingly important contributor to the growth. This growth is supported by macro-geopolitical factors that are driving increased investment in secure, mission-critical communications worldwide.

GILT in the first quarter of FY25 has reported the adjusted earnings per share of 3 cents, missing the analysts’ estimates for the adjusted earnings per share of 7 cents. The company had reported the adjusted revenue growth of 21 percent to $92 million in the first quarter of FY25, missing the analysts’ estimates for revenue of $94.47 million. Non-GAAP operating income of $5.2million, compared with $6.6million in Q1 2024. Adjusted EBITDA of $7.6 million, compared with $9.3 million in Q1 2024, which includes a loss of about $3.6 million from Gilat Stellar Blu’s ramp up process. Adjusted EBITDA, excluding such loss, was $11.2 million.

Moreover, Gilat Receives Over $15 Million in Orders from Leading Satellite Operators. Gilat Receives a Multimillion Order from a Global Defense Organization. Gilat Receives over $11 Million Defense Contract from a Leading UAV Company. Gilat Awarded Up to $23 Million Multi-Year Contract to Service Satellite Transportable Terminal Units for US DoD Customers.

Despite the earnings miss, Gilat reiterated its full-year 2025 guidance, projecting revenue between $415 million and $455 million. The midpoint of $435 million aligns with the current analyst consensus of $435.1 million and would represent 42% YoY growth.