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

Rhea-AI Summary

Aviat Networks (Nasdaq: AVNW) reported fiscal 2026 Q2 results for the quarter ended December 26, 2025, with Q2 revenues of $111.5 million, GAAP net income of $5.7 million ($0.44 per diluted share) and Q2 Adjusted EBITDA of $11.3 million. Six-month revenue rose 5.9% to $218.8 million and six-month Adjusted EBITDA improved by $13.2 million. Cash totaled $86.5 million and net debt was $18.9 million. The company maintained full-year guidance of $440–$460 million revenue and $45–$55 million Adjusted EBITDA.

Positive

• Six-month revenue +5.9% to $218.8 million
• Six-month Adjusted EBITDA +$13.2 million year-over-year
• Cash increased by $26.8 million to $86.5 million
• Secured initial purchase order from a U.S. tier-one operator

Negative

• Q2 revenues decreased 5.7% year-over-year to $111.5 million
• GAAP gross margin down 220 bps year-over-year to 32.4%
• Q2 Adjusted EBITDA declined $3.6 million versus prior-year quarter
• Total debt increased $17.8 million to $105.4 million

News Market Reaction

-0.93% 2.1x vol

23 alerts

-0.93% News Effect

+14.4% Peak in 17 hr 48 min

-$3M Valuation Impact

$347M Market Cap

2.1x Rel. Volume

On the day this news was published, AVNW declined 0.93%, reflecting a mild negative market reaction. Argus tracked a peak move of +14.4% during that session. Our momentum scanner triggered 23 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $3M from the company's valuation, bringing the market cap to $347M at that time. Trading volume was elevated at 2.1x the daily average, suggesting increased selling activity.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q2 2026 Revenue: $111.5M Six-month Revenue: $218.8M Q2 GAAP Net Income: $5.7M +5 more

8 metrics

Q2 2026 Revenue $111.5M Fiscal 2026 second quarter total revenues

Six-month Revenue $218.8M Fiscal 2026 year-to-date, up 5.9% vs first half 2025

Q2 GAAP Net Income $5.7M Fiscal 2026 second quarter net income, up 27.2% year-over-year

Q2 Diluted EPS $0.44 Fiscal 2026 second quarter GAAP diluted earnings per share

Q2 Adjusted EBITDA $11.3M Fiscal 2026 second quarter Adjusted EBITDA

Cash & Equivalents $86.5M Cash and cash equivalents as of December 26, 2025

Net Debt $18.9M Net debt position as reported for the quarter

FY2026 Revenue Guidance $440–$460M Fiscal 2026 full-year revenue outlook, unchanged

Market Reality Check

Price: $25.04 Vol: Volume 159,550 vs 20-day ...

high vol

$25.04 Last Close

Volume Volume 159,550 vs 20-day average 99,710 (relative volume 1.6x) ahead of this earnings release. high

Technical Shares at $22.64, trading slightly above the 200-day MA of $22.06 and 15.6% below the 52-week high of $26.83.

Peers on Argus

AVNW was up 3.81% pre-release while peers were mixed: FEIM +1.73%, CLFD , AUDC +...

AVNW was up 3.81% pre-release while peers were mixed: FEIM +1.73%, CLFD , AUDC +1.07%, ADTN +1.63%, and GILT -1.69%, suggesting stock-specific focus rather than a broad sector move.

Common Catalyst One key peer, AUDC, also reported earnings and announced a dividend, indicating an earnings-heavy news day in communication equipment.

Previous Earnings Reports

5 past events · Latest: Sep 10 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Sep 10	Q4 & full-year earnings	Positive	+12.7%	Reported Q4 revenue $115.3M and full-year growth to $434.6M with record EBITDA.
Aug 27	Prelim Q4 & CFO change	Positive	+1.3%	Announced CFO transition and preliminary Q4 results with higher GAAP net income and EBITDA.
May 06	Q3 2025 earnings	Positive	+4.6%	Posted Q3 revenue $112.6M and record Adjusted EBITDA with continued TTM growth.
Feb 04	Q2 2025 earnings	Positive	+28.2%	Delivered Q2 revenue $118.2M and record Adjusted EBITDA, maintaining full‑year guidance.
Nov 05	Q1 2025 earnings	Negative	-34.5%	Reported Q1 net loss $(11.9)M and negative Adjusted EBITDA despite modest revenue growth.

Pattern Detected

Earnings announcements have typically produced strong, directionally aligned moves, with positive results often met by double‑digit percentage gains and only one notably negative reaction tied to weak profitability.

Recent Company History

Over the last five earnings-related announcements, Aviat has highlighted consistent revenue growth, record Adjusted EBITDA levels, and evolving guidance. Prior updates included Q4 FY2025 revenue of $115.3M and full-year revenue of $434.6M, alongside projected FY2026 revenue of $440–460M and Adjusted EBITDA of $45–55M. Earlier quarters showed both strong growth and one loss-making quarter. Historically, the stock reacted strongly, often double digits, and largely aligned with the tone of each earnings release.

Historical Comparison

+16.3% avg move · Over the past year, five earnings releases for AVNW saw an average move of 16.27%, with stock reacti...

earnings

+16.3%

Average Historical Move earnings

Over the past year, five earnings releases for AVNW saw an average move of 16.27%, with stock reactions consistently matching the tone of the results.

Recent earnings have emphasized multi-year revenue growth, record Adjusted EBITDA, and guidance in the $440–460M revenue and $45–55M Adjusted EBITDA range, framing today’s Q2 and six‑month results within a continued execution narrative.

Market Pulse Summary

This announcement details fiscal 2026 second quarter and six‑month performance, including Q2 revenue...

Analysis

This announcement details fiscal 2026 second quarter and six‑month performance, including Q2 revenue of $111.5M, GAAP net income of $5.7M, and Adjusted EBITDA of $11.3M. Year‑to‑date revenue rose to $218.8M, and the company reaffirmed full‑year guidance of $440–$460M in revenue and $45–$55M in Adjusted EBITDA. Investors may track bookings momentum, gross margin trends, cash of $86.5M, and delivery against this guidance in future quarters.

Key Terms

non-gaap, adjusted ebitda, gross margin, basis points, +4 more

8 terms

non-gaap financial

"Q2 Operating Income of $7.3 million; Q2 Non-GAAP Operating Income of $9.6 million"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

adjusted ebitda financial

"Q2 Net Income of $5.7 million; Q2 Adjusted EBITDA of $11.3 million"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

gross margin financial

"GAAP Results: Gross Margin 32.4%; Operating Expenses $28.8 million;"

Gross margin is the difference between how much money a company makes from selling its products and how much it costs to produce them, expressed as a percentage of sales. It shows how efficiently a company is turning sales into profit before other expenses like marketing or salaries. Higher gross margin means the company keeps more money from each sale, which is a good sign of financial health.

basis points financial

"a decrease of (220) and (240) basis points, respectively."

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

net debt financial

"Cash and cash equivalents: $86.5 millionNet debt: $18.9 million"

Net debt is the total amount a company owes after subtracting the cash and assets it has that can be used to pay off that debt. It shows how much debt is truly a burden, helping investors understand if a company is financially healthy or heavily borrowed. Think of it like calculating how much money you owe after using your savings to pay part of it.

restricted stock units financial

"a grant of 5,480 Restricted Stock Units on 11/07/2025."

Restricted stock units are a type of company reward where employees are promised shares of stock, but they only fully own these shares after meeting certain conditions, like staying with the company for a set time. They matter because they can become valuable assets and are often used to motivate employees to help the company succeed.

net operating loss carryforwards financial

"The ability to preserve and use our net operating loss carryforwards;"

Net operating loss carryforwards are tax rules that let a company apply past operating losses against future taxable profits, reducing the amount of tax it must pay when it returns to profitability. Think of it like a negative balance in a tax ledger that can be used to lower future tax bills, improving after-tax cash flow and earnings; investors track the size, expiration rules and any limits because they affect valuation and future cash available to the business.

regulation fd regulatory

"The information is being furnished under Regulation FD, meaning it is not treated"

Regulation FD is a rule that prevents company insiders, like executives, from sharing important information with some people before others get it. It matters because it helps ensure all investors have equal access to key news, making the stock market fairer and reducing chances of insider trading.

AI-generated analysis. Not financial advice.

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, Feb. 3, 2026 /PRNewswire/ -- 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 Ended				Six 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
Services	30,262		35,885		62,498		63,198
Total revenues	111,472		118,197		218,792		206,626
Cost of revenues:
Product sales	54,459		54,969		107,146		107,170
Services	20,912		22,342		39,882		38,782
Total cost of revenues	75,371		77,311		147,028		145,952
Gross margin	36,101		40,886		71,764		60,674
Operating expenses:
Research and development	6,409		10,222		13,507		20,630
Selling and administrative	22,384		21,279		45,760		46,227
Total operating expenses	28,814		32,916		59,288		68,272
Operating income (loss)	7,287		7,970		12,476		(7,598)
Interest expense, net	1,908		1,580		3,620		2,695
Other (income) expense, net	(2,744)		269		(1,771)		979
Income (loss) before income taxes	8,123		6,121		10,627		(11,272)
Provision for (benefit from) income taxes	2,405		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:
Basic	12,856		12,689		12,808		12,667
Diluted	13,005		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 receivables	90,612		105,870
Inventories	76,637		83,979
Other current assets	37,016		33,715
Total current assets	493,854		463,575
Property, plant and equipment, net	19,074		17,453
Goodwill	19,544		19,655
Intangible assets, net	25,173		26,897
Deferred income taxes	84,591		88,149
Right-of-use assets	2,805		3,113
Other assets	14,314		14,454
Total long-term assets	165,501		169,721
Total assets	$                  659,355		$                  633,296
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable	$                  145,412		$                  148,093
Accrued expenses	31,560		38,897
Short-term lease liabilities	787		1,090
Advance payments and unearned revenue	84,452		73,735
Other current liabilities	444		1,757
Current portion of long-term debt	4,443		18,624
Total current liabilities	267,098		282,196
Long-term debt	100,931		68,966
Unearned revenue	8,579		8,063
Long-term operating lease liabilities	2,199		2,241
Other long-term liabilities	450		430
Reserve for uncertain tax positions	3,570		3,242
Deferred income taxes	4,917		4,975
Total liabilities	387,744		370,113
Commitments and contingencies
Stockholder's equity:
Preferred stock	—		—
Common stock	129		127
Treasury stock	(7,076)		(7,076)
Additional paid-in-capital	868,423		866,119
Accumulated deficit	(571,292)		(577,172)
Accumulated other comprehensive loss	(18,573)		(18,815)
Total stockholders' equity	271,611		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 Ended								Six 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 compensation	35				111				68				215
Merger and acquisition and other expenses	588				693				1,178				1,300
Non-GAAP gross margin	36,724		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 compensation	8				(164)				(63)				(307)
Non-GAAP research and development expenses	6,417		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 expenses	20,672		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 expense	27,089		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 compensation	1,348				1,974				2,903				3,638
Merger and acquisition and other expenses	979				1,207				2,165				5,595
Restructuring charges	21				1,415				21				1,415
Non-GAAP operating income	9,635		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 provision	700		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 compensation	1,348				1,974				2,903				3,638
Merger and acquisition and other expenses	979				1,207				2,165				5,595
Restructuring charges	21				1,415				21				1,415
Other (income) expense, net	(2,744)				269				(1,771)				979
Adjustment to reflect pro forma tax rate	1,705				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
GAAP	13,005				12,784				12,995				12,667
Non-GAAP	13,005				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 assets	1,640				2,275				2,822				4,105
Interest expense, net	1,908				1,580				3,620				2,695
Other (income) expense, net	(2,744)				269				(1,771)				979
Share-based compensation	1,348				1,974				2,903				3,638
Merger and acquisition and other expenses	979				1,207				2,165				5,595
Restructuring charges	21				1,415				21				1,415
Provision for (benefit from) for income taxes	2,405				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 Ended				Six 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 East	14,626		12,674		27,422		23,124
Europe	11,425		8,347		18,985		13,947
Latin America and Asia Pacific	32,520		39,214		66,837		69,368
Total international	58,571		60,235		113,244		106,439
Total revenue	$                  111,472		$                  118,197		$                  218,792		$         206,626

 

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SOURCE Aviat Networks, Inc.

FAQ

What were Aviat Networks (AVNW) fiscal 2026 Q2 revenues and EPS?

Aviat reported Q2 revenues of $111.5 million and GAAP diluted EPS of $0.44. According to Aviat, non-GAAP diluted EPS for the quarter was $0.54 and Adjusted EBITDA was $11.3 million.

How did Aviat Networks (AVNW) perform year-to-date through Q2 fiscal 2026?

Through six months, Aviat reported $218.8 million revenue, a 5.9% increase versus prior year. According to Aviat, six-month Adjusted EBITDA rose by $13.2 million, driven by improved gross margins and expense management.

What guidance did Aviat Networks (AVNW) provide for fiscal 2026 full year?

Aviat reaffirmed full-year guidance of $440–$460 million in revenue and $45–$55 million in Adjusted EBITDA. According to Aviat, the company is maintaining these targets while monitoring bookings and margins.

What balance sheet changes did Aviat Networks (AVNW) report at Q2 fiscal 2026?

Aviat reported $86.5 million in cash and $105.4 million total debt as of December 26, 2025. According to Aviat, cash increased by $26.8 million since June 27, 2025, while debt rose by $17.8 million.

Did Aviat Networks (AVNW) report any noteworthy commercial wins in Q2 fiscal 2026?

Yes. Aviat announced an initial purchase order from a U.S. tier-one operator for its multi-dwelling unit 5G millimeter-wave solution. According to Aviat, this order supports multi-gigabit, high-capacity services over mmWave spectrum.