Aviat Networks Announces Fiscal 2026 Fourth Quarter and Twelve Months Financial Results
Rhea-AI Summary
Aviat Networks (Nasdaq: AVNW) reported fiscal 2026 Q4 revenue of $120.9 million, up 4.8% year over year, with North America up 17.8% and international down 8.3%. Q4 GAAP results included 30.8% gross margin, operating income of $5.8 million and a net loss of $1.3 million (–$0.10 per share), while non-GAAP net income was $8.3 million ($0.64 per share) and Adjusted EBITDA $11.9 million.
For fiscal 2026, revenue rose 1.2% to $439.7 million, with GAAP net income of $2.5 million ($0.19 per share) and non-GAAP net income of $21.6 million ($1.66 per share). Aviat ended the year with $367 million backlog (up 14%), cash of $72.8 million, net debt of $24.2 million, and repurchased $2.2 million of stock. Fiscal 2027 guidance calls for revenue of $455–$470 million and Adjusted EBITDA of $50–$55 million.
Positive
- Sixth consecutive year of revenue growth with FY26 revenue up 1.2% to $439.7 million
- Backlog up 14% to $367 million with trailing-twelve month book-to-bill above 1
- North America revenue growth Q4 up 17.8% and FY26 up 6.0% year over year
- FY26 GAAP operating income increased 81.9% to $19.2 million versus fiscal 2025
- Non-GAAP FY26 operating income grew 5.2% to $30.6 million
- FY27 guidance targets revenue of $455–$470 million and Adjusted EBITDA of $50–$55 million
Negative
- Q4 GAAP net loss of $1.3 million versus $5.2 million net income a year earlier
- Q4 gross margin compression GAAP margin fell from 34.2% to 30.8% year over year
- Q4 Adjusted EBITDA declined to $11.9 million from $15.1 million in the prior-year quarter
- International revenue decline Q4 down 8.3% and FY26 down 3.2% versus fiscal 2025
- Higher tax burden FY26 income tax expense rose to $10.7 million from $2.2 million
- Leverage total debt of $97.0 million and net debt of $24.2 million as of July 3, 2026
Market Reaction – AVNW
Following this news, AVNW has gained 7.60%, reflecting a notable positive market reaction. Our momentum scanner has triggered 3 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $22.50.
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Fourth Quarter Total Revenue of
Q4 Operating Income of
Q4 Net Loss of
Q4 Diluted Loss per Share of
Fourth Quarter Highlights
- Completed sixth consecutive fiscal year of revenue growth; FY26 revenue of
$439.7 million 1.2% versus the prior year - Increased Q4 total revenue to
$120.9 million 4.8% versus the year ago period; Q4North America revenue of$68.3 million 17.8% versus the year ago period - Finished the fiscal year with backlog of
$367 million 14% year-over-year; maintained a trailing-twelve month book-to-bill ratio greater than 1 in the quarter - Secured significant order in the
U.S . from an existing customer for$25.0 million $30.0 million - Repurchased
$2.2 million $16.55
Fourth Quarter Financial Highlights
- Total Revenues:
$120.9 million ;North America revenues of$68.3 million $10.3 million
- GAAP Results: Gross Margin
30.8% ; Operating Expenses$31.4 million $5.8 million $1.3 million $(0.10)
- Non-GAAP Results: Adjusted EBITDA
$11.9 million 30.9% ; Operating Expenses$27.3 million $10.0 million $8.3 million $0.64
- Cash and Cash Equivalents:
$72.8 million
- Net Debt:
$24.2 million
Full Year Financial Highlights
- Total Revenues:
$439.7 million 1.2% from last year
- GAAP Results: Gross Margin
31.5% ; Operating Expenses$119.1 million $19.2 million $2.5 million $0.19
- Non-GAAP Results: Adjusted EBITDA
$36.7 million 31.8% ; Operating Expenses$109.2 million $30.6 million $1.66
Fiscal 2026 Fourth Quarter and Twelve Months Ended July 3, 2026
Revenues
The Company reported total revenues of
For the twelve months ended July 3, 2026, total revenue increased by
Gross Margins
In the fiscal 2026 fourth quarter, the Company reported GAAP gross margin of
For the twelve months ended July 3, 2026, the Company reported GAAP gross margin of
Operating Expenses
The Company reported GAAP total operating expenses of
For the twelve months ended July 3, 2026, the Company reported total operating expenses of
Operating Income
The Company reported GAAP operating income of
For the twelve months ended July 3, 2026, the Company reported GAAP operating income of
Income Taxes
The Company reported GAAP income tax expense of
For the twelve months ended July 3, 2026, the Company reported GAAP income tax expense of
Net Income / Net Income Per Share
The Company reported GAAP net loss of
The Company reported GAAP net income of
Adjusted EBITDA
Adjusted earnings before interest, tax, depreciation and amortization ("Adjusted EBITDA") for the fiscal 2026 fourth quarter was
For the twelve months ended July 3, 2026, the Company reported Adjusted EBITDA of
Balance Sheet Highlights
The Company reported
Fiscal 2027 Full Year Guidance
The Company established its fiscal 2027 full year revenue and Adjusted EBITDA guidance as follows:
- Full year Revenue between
$455 $470 million - Full year Adjusted EBITDA between
$50 $55 million
Conference Call Details
Aviat Networks will host a conference call at 8:30 a.m. Eastern Time (ET) on August 27, 2026, to discuss its financial and operational results for the fiscal 2026 fourth quarter ended July 3, 2026. Participating on the call will be Peter Smith, President and Chief Executive Officer; Andy Schmidt, Senior Vice President and Chief Financial Officer; Jonanna Mikulenka, Vice President and Chief Accounting 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 2027, 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 that 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 July 3, 2026 filed with the SEC on August 27, 2026, 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 Fourth Quarter Summary CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
| |||||||
Three Months Ended | Twelve Months Ended | ||||||
(In thousands, except per share amounts) | July 3, | June 27, | July 3, | June 27, | |||
Revenues: | |||||||
Product sales | $ 89,524 | $ 67,405 | $ 314,223 | $ 287,657 | |||
Services | 31,363 | 47,935 | 125,459 | 146,949 | |||
Total revenues | 120,887 | 115,340 | 439,682 | 434,606 | |||
Cost of revenues: | |||||||
Product sales | 63,294 | 49,477 | 221,449 | 208,017 | |||
Services | 20,349 | 26,397 | 79,942 | 87,153 | |||
Total cost of revenues | 83,643 | 75,874 | 301,391 | 295,170 | |||
Gross margin | 37,244 | 39,466 | 138,291 | 139,436 | |||
Operating expenses: | |||||||
Research and development | 7,238 | 7,434 | 28,401 | 35,768 | |||
Selling and administrative | 22,384 | 21,134 | 88,509 | 89,482 | |||
Restructuring charges | 1,800 | 2,019 | 2,144 | 3,611 | |||
Total operating expenses | 31,422 | 30,587 | 119,054 | 128,861 | |||
Operating income | 5,822 | 8,879 | 19,237 | 10,575 | |||
Interest expense, net | 2,211 | 1,806 | 7,679 | 6,058 | |||
Other (income) expense, net | (1,290) | (3,106) | (1,661) | 941 | |||
Income before income taxes | 4,901 | 10,179 | 13,219 | 3,576 | |||
Provision for income taxes | 6,177 | 4,982 | 10,680 | 2,235 | |||
Net (loss) income | $ (1,276) | $ 5,197 | $ 2,539 | $ 1,341 | |||
Net (loss) income per share of common stock outstanding: | |||||||
Basic | $ (0.10) | $ 0.41 | $ 0.20 | $ 0.11 | |||
Diluted | $ (0.10) | $ 0.40 | $ 0.19 | $ 0.10 | |||
Weighted-average shares outstanding: | |||||||
Basic | 12,920 | 12,709 | 12,847 | 12,681 | |||
Diluted | 12,920 | 12,867 | 13,027 | 12,826 | |||
Table 2 AVIAT NETWORKS, INC. Fiscal Year 2026 Fourth Quarter Summary CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
| |||
(In thousands) | July 3, | June 27, | |
ASSETS | |||
Current Assets: | |||
Cash and cash equivalents | $ 72,844 | $ 59,690 | |
Accounts receivable, net | 192,245 | 180,321 | |
Unbilled receivables | 82,125 | 105,870 | |
Inventories | 69,005 | 83,979 | |
Other current assets | 23,026 | 33,715 | |
Total current assets | 439,245 | 463,575 | |
Property, plant and equipment, net | 18,776 | 17,453 | |
Goodwill | 19,411 | 19,655 | |
Intangible assets, net | 23,574 | 26,897 | |
Deferred income taxes | 82,064 | 88,149 | |
Right of use assets | 2,001 | 3,113 | |
Other assets | 13,891 | 14,454 | |
Total long-term assets | 159,717 | 169,721 | |
Total assets | $ 598,962 | $ 633,296 | |
LIABILITIES AND EQUITY | |||
Current Liabilities: | |||
Accounts payable | $ 119,500 | $ 148,093 | |
Accrued expenses | 34,125 | 38,897 | |
Short-term lease liabilities | 442 | 1,090 | |
Advance payments and unearned revenue | 59,943 | 73,735 | |
Other current liabilities | 1,243 | 1,757 | |
Current portion of long-term debt | 7,900 | 18,624 | |
Total current liabilities | 223,153 | 282,196 | |
Long-term debt | 89,100 | 68,966 | |
Unearned revenue | 9,017 | 8,063 | |
Long-term lease liabilities | 1,739 | 2,241 | |
Other long-term liabilities | — | 430 | |
Reserve for uncertain tax positions | 5,260 | 3,242 | |
Deferred income taxes | 3,305 | 4,975 | |
Total liabilities | 331,574 | 370,113 | |
Commitments and contingencies | |||
Stockholder's equity: | |||
Common stock | 129 | 127 | |
Treasury stock | (9,744) | (7,076) | |
Additional paid-in-capital | 872,081 | 866,119 | |
Accumulated deficit | (574,633) | (577,172) | |
Accumulated other comprehensive loss | (20,445) | (18,815) | |
Total stockholders' equity | 267,388 | 263,183 | |
Total liabilities and stockholders' equity | $ 598,962 | $ 633,296 | |
AVIAT NETWORKS, INC.
|
To supplement the consolidated financial statements presented in accordance with accounting principles generally accepted in |
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 Fourth Quarter Summary RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (1) Condensed Consolidated Statements of Operations (Unaudited)
| |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
July 3, 2026 | % of Revenue | June 27, 2025 | % of Revenue | July 3, 2026 | % of Revenue | June 27, 2025 | % of Revenue | ||||||||
(In thousands, except percentages and per share amounts) | |||||||||||||||
GAAP gross margin | $ 37,244 | 30.8 % | $ 39,466 | 34.2 % | $ 138,291 | 31.5 % | $ 139,436 | 32.1 % | |||||||
Share-based compensation | 41 | 19 | 146 | 233 | |||||||||||
Litigation and other expenses | 68 | 595 | 1,315 | 2,890 | |||||||||||
Non-GAAP gross margin | 37,353 | 30.9 % | 40,080 | 34.7 % | 139,752 | 31.8 % | 142,559 | 32.8 % | |||||||
GAAP research and development expenses | $ 7,238 | 6.0 % | $ 7,434 | 6.4 % | $ 28,401 | 6.5 % | $ 35,768 | 8.2 % | |||||||
Share-based compensation | (37) | (78) | (135) | (534) | |||||||||||
Non-GAAP research and development expenses | 7,201 | 6.0 % | 7,356 | 6.4 % | 28,266 | 6.4 % | 35,234 | 8.1 % | |||||||
GAAP selling and administrative expenses | $ 22,384 | 18.5 % | $ 21,134 | 18.3 % | $ 88,509 | 20.1 % | $ 89,482 | 20.6 % | |||||||
Share-based compensation | (1,641) | (1,344) | (5,921) | (6,300) | |||||||||||
Litigation and other expenses | (598) | (6) | (1,656) | (4,896) | |||||||||||
Non-GAAP selling and administrative expenses | 20,145 | 16.7 % | 19,784 | 17.2 % | 80,932 | 18.4 % | 78,286 | 18.0 % | |||||||
GAAP operating expense | $ 31,422 | 26.0 % | $ 30,587 | 26.5 % | $ 119,054 | 27.1 % | $ 128,861 | 29.7 % | |||||||
Share-based compensation | (1,678) | (1,422) | (6,056) | (6,834) | |||||||||||
Litigation and other expenses | (598) | (6) | (1,656) | (4,896) | |||||||||||
Restructuring (charges) recovery | (1,800) | (2,019) | (2,144) | (3,611) | |||||||||||
Non-GAAP operating expense | 27,346 | 22.6 % | 27,140 | 23.5 % | 109,198 | 24.8 % | 113,520 | 26.1 % | |||||||
GAAP operating income | $ 5,822 | 4.8 % | $ 8,879 | 7.7 % | $ 19,237 | 4.4 % | $ 10,575 | 2.4 % | |||||||
Share-based compensation | 1,719 | 1,441 | 6,202 | 7,067 | |||||||||||
Litigation and other expenses | 666 | 601 | 2,971 | 7,786 | |||||||||||
Restructuring charges | 1,800 | 2,019 | 2,144 | 3,611 | |||||||||||
Non-GAAP operating income | 10,007 | 8.3 % | 12,940 | 11.2 % | 30,554 | 6.9 % | 29,039 | 6.7 % | |||||||
GAAP income tax provision | $ 6,177 | 5.1 % | $ 4,982 | 4.3 % | $ 10,680 | 2.4 % | $ 2,235 | 0.5 % | |||||||
Adjustment to reflect pro forma tax rate | (6,677) | (4,582) | (9,380) | (635) | |||||||||||
Non-GAAP income tax (benefit) provision | (500) | (0.4) % | 400 | 0.3 % | 1,300 | 0.3 % | 1,600 | 0.4 % | |||||||
GAAP net (loss) income | $ (1,276) | (1.1) % | $ 5,197 | 4.5 % | $ 2,539 | 0.6 % | $ 1,341 | 0.3 % | |||||||
Share-based compensation | 1,719 | 1,441 | 6,202 | 7,067 | |||||||||||
Litigation and other expenses | 666 | 601 | 2,971 | 7,786 | |||||||||||
Restructuring charges | 1,800 | 2,019 | 2,144 | 3,611 | |||||||||||
Other (income) expense, net | (1,290) | (3,106) | (1,661) | 941 | |||||||||||
Adjustment to reflect pro forma tax rate | 6,677 | 4,582 | 9,380 | 635 | |||||||||||
Non-GAAP net income | $ 8,296 | 6.9 % | $ 10,734 | 9.3 % | $ 21,575 | 4.9 % | $ 21,381 | 4.9 % | |||||||
Diluted net (loss) income per share: | |||||||||||||||
GAAP | $ (0.10) | $ 0.40 | $ 0.19 | $ 0.10 | |||||||||||
Non-GAAP | $ 0.64 | $ 0.83 | $ 1.66 | $ 1.67 | |||||||||||
Shares used in computing net income per share | |||||||||||||||
GAAP | 12,920 | 12,867 | 13,027 | 12,826 | |||||||||||
Non-GAAP | 13,042 | 12,867 | 13,027 | 12,826 | |||||||||||
Adjusted EBITDA: | |||||||||||||||
GAAP net (loss) income | $ (1,276) | (1.1) % | $ 5,197 | 4.5 % | $ 2,539 | 0.6 % | $ 1,341 | 0.3 % | |||||||
Depreciation and amortization of property, plant and equipment and intangible assets | 1,871 | 2,110 | 6,118 | 8,045 | |||||||||||
Interest expense, net | 2,211 | 1,806 | 7,679 | 6,058 | |||||||||||
Other (income) expense, net | (1,290) | (3,106) | (1,661) | 941 | |||||||||||
Share-based compensation | 1,719 | 1,441 | 6,202 | 7,067 | |||||||||||
Litigation and other expenses | 666 | 601 | 2,971 | 7,786 | |||||||||||
Restructuring charges | 1,800 | 2,019 | 2,144 | 3,611 | |||||||||||
Provision for income taxes | 6,177 | 4,982 | 10,680 | 2,235 | |||||||||||
Adjusted EBITDA | $ 11,878 | 9.8 % | $ 15,050 | 13.0 % | $ 36,672 | 8.3 % | $ 37,084 | 8.5 % | |||||||
(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 and intangible assets, 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 Fourth Quarter Summary SUPPLEMENTAL SCHEDULE OF REVENUE BY GEOGRAPHICAL AREA (Unaudited)
| |||||||
Three Months Ended | Twelve Months Ended | ||||||
July 3, | June 27, | July 3, | June 27, | ||||
(In thousands) | |||||||
$ 68,321 | $ 58,017 | $ 220,034 | $ 207,606 | ||||
International: | |||||||
14,084 | 11,218 | 57,952 | 49,428 | ||||
12,725 | 8,337 | 42,043 | 31,713 | ||||
25,757 | 37,768 | 119,653 | 145,859 | ||||
Total international | 52,566 | 57,323 | 219,648 | 227,000 | |||
Total revenue | $ 120,887 | $ 115,340 | $ 439,682 | $ 434,606 | |||
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SOURCE Aviat Networks, Inc.