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Apr 30
Comtech Q3 2025 Earnings Report
Comtech reported a net loss and flat revenues as transformation efforts showed early operational improvements.
Key Takeaways
Comtech's Q3 2025 results reflected the early impacts of its transformation plan. Despite a net loss, adjusted EBITDA improved significantly and cash flow turned positive. The company also secured a $40 million capital infusion, strengthening its financial flexibility.
Net sales were $126,787,000, nearly flat year-over-year.
Adjusted EBITDA rose to $12,576,000 from $11,911,000 in Q3 2024.
The company reported a net loss of $14,471,000 attributable to common shareholders.
Cash flow from operations turned positive at $2,300,000.
Comtech
Comtech
Comtech Revenue by Segment
Revenue by Segment
Satellite & Space Comm Revenue
CapyFin.comTerrestrial & Wireless Revenue
CapyFin.com Forward Guidance
Comtech expects continued benefits from cost reductions and restructuring efforts, but acknowledges challenges ahead as transformation continues.
Positive Outlook
- Secured $40 million capital infusion.
- Waived prior covenant breaches and gained greater financial flexibility.
- Improved working capital and cash conversion cycle.
- Strong pipeline with revenue visibility of approximately $1.2 billion.
- Progress in NG-911 and SATCOM product areas.
Challenges Ahead
- Net loss remains substantial at $14.5 million.
- Reduced backlog and bookings due to contract losses.
- High interest expense and debt service obligations.
- Revenue impacted by winding down legacy contracts.
- Transformation plan still in early stages with lingering operational risks.
Revenue & Expenses
Visualization of income flow from segment revenue to net income