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Jan 31
Comtech Q2 2025 Earnings Report
Comtech reported a decline in revenue and net income for Q2 2025, with a book-to-bill ratio of 0.63x and a net loss of $48.7 million.
Key Takeaways
Comtech's Q2 2025 revenue was $126.6 million, down 5.7% year-over-year. The company reported a net loss of $48.7 million and an operating loss of $10.3 million. Adjusted EBITDA was $2.9 million, down from $15.1 million in Q2 2024. The book-to-bill ratio stood at 0.63x, with total funded backlog of $763.8 million.
Revenue declined 5.7% year-over-year to $126.6 million.
Gross margin fell to 26.7%, down from 32.2% in Q2 2024.
Net loss widened to $48.7 million from $10.6 million in Q2 2024.
Book-to-bill ratio was 0.63x, with a funded backlog of $763.8 million.
Comtech
Comtech
Forward Guidance
Comtech expects continued operational improvements but anticipates ongoing challenges in securing new bookings and improving margins.
Positive Outlook
- Funded backlog remains strong at $763.8 million.
- Operational discipline and cost reduction initiatives progressing.
- Strategic review underway to explore growth opportunities.
- Continued demand for high-margin SATCOM and VSAT solutions.
- Successful renegotiation of credit facility to improve financial flexibility.
Challenges Ahead
- Book-to-bill ratio remains below 1.0x, indicating future revenue pressure.
- Gross margin deterioration due to pricing pressures and cost structure.
- Higher interest expense impacting profitability.
- Restructuring and strategic initiatives may take time to yield results.
- Uncertainty around large government contracts and customer demand.