Continued Strong Growth at Gilat Telecom: Net profit surged by over 250% to approximately $6.35 million

Revenues grew significantly to approximately $75.8 million

Free cash flow increased to $7.8 million and backlog exceeds $52 million

The Company is establishing a significant competitive advantage in the telecommunications market and enters 2026 from a position of strength – combining growth, profitability, and competitive positioning, Gilat Telecom is entering a new phase of development

PETAH TIKVA, Israel, March 26, 2026 /PRNewswire/ -- Gilat Telecom Global Ltd. (TASE: GLTL) reports its 2025 results, highlighting continued strong growth with a consistent and sharp improvement across all financial, operational, and business metrics. This is alongside strengthening growth engines, building a meaningful brand in the telecommunications market, implementing precise structural changes, maintaining a solid backlog for the coming years, and reinforcing a particularly strong financial base.

In 2025, the Company delivered a significant increase across all key profitability metrics. Net profit totaled approximately $6.35 million, compared to $1.79 million in 2024 – an increase of over 250%.

Excluding non-economic accounting effects, primarily the revaluation of shekel-denominated options and conversion components of convertible debentures recorded as liabilities in the financial statements, Non-GAAP net profit amounted to approximately $8 million. This figure more accurately reflects the Company's underlying economic profitability. The Company emphasizes that these components do not represent an actual economic loss, as they do not entail any cash obligation.

At the same time, the Company recorded a dramatic improvement in cash generation capabilities. Cash flow from operating activities totaled approximately $20.5 million, compared to $10.6 million in 2024. Free cash flow reached approximately $7.8 million in 2025, compared to negative free cash flow in 2024. Excluding prepaid expenses, free cash flow amounted to approximately $10.7 million. These results highlight the quality of the Company's performance, the strength of its business model, and a significant improvement in operational efficiency.

Revenues in 2025 totaled approximately $76 million, compared to $69.6 million in 2024. Gross profit increased to approximately $23.2 million, compared to $16.1 million in the prior year, while gross margin improved to 30.4% from 23.2% in 2024. Operating profit nearly doubled to approximately $9.7 million, compared to $4.9 million in 2024.

Cash-based profitability metrics also showed strong growth. EBITDA reached approximately $23.9 million in 2025, compared to approximately $15 million in 2024. Adjusted EBITDA, excluding the impact of IFRS 16 and satellite lease classification, amounted to approximately $14.8 million, compared to $8.7 million in 2024 – an increase of approximately 70%. These figures reflect a sharp improvement in core operational profitability.

As of year-end 2025, the Company held approximately $29.7 million in cash and short-term deposits, with a net financial asset position of approximately $7.3 million. Excluding bond conversions completed as of the reporting date, the Company's net financial asset position stands at approximately $12.3 million. In parallel, the Company holds a signed contract backlog of approximately $52.3 million through 2029, providing a stable and clear foundation for future operations.

Government Division Continues at a High Growth Pace

The Government Division continues to operate at a very high pace and serves as the Company's primary growth engine. In 2025, the division delivered very strong results, with revenues of approximately $48 million, compared to approximately $37 million in the prior year – a growth of approximately 30%.

Through the formulation of a focused strategy in this segment, the Company strengthened relationships with key suppliers and secured large-scale contracts. These results reflect not only strong demand but also effective execution of a clear strategic focus and expansion of engagements with major clients.

ISP Activity Continues to Grow, Maintain Profitability, and Outperform Expectations

The Company's ISP activity continues to grow rapidly, maintaining consistent profitability and exceeding market expectations. Alongside the signing of a breakthrough fiber agreement, the activity recorded a fourth consecutive positive quarter, generating direct profit of approximately $524 thousand in 2025 and transitioning from a loss to profit compared to 2024.

The Company also exceeded its projections regarding profitability and customer acquisition in the private segment, as initially estimated for its first agreement with Bezeq.

Beyond financial results, 2025 was also a year of brand-building, strengthening competitive positioning, and deep structural optimization. The Company significantly strengthened the "Gilat Telecom" brand across all segments.

The Company also received strong support from leading institutional investors in Israel, who participated in equity and debt offerings.

CEO Statement – Itzik Ben Eliezer:

"The Company presents a very strong 2025 report, reflecting its development in recent years and its excellent business position.

"Beyond the numbers, we significantly strengthened the Company, established a profitable and growing ISP activity that exceeds expectations, implemented structural changes, improved our cost structure, and reinforced the 'Gilat Telecom' brand in both the telecommunications market and capital markets.

"We are entering 2026 from a position of strength – with a solid financial base, a strong brand, a significant backlog, diversified growth engines, and a proven ability to continue increasing activity, profitability, and shareholder value in the years ahead."

Contact:
Ami Barlev
Chairman
[email protected]

SOURCE Gilat Telecom Global Ltd.