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Jul 31
Comtech Q4 2025 Earnings Report
Comtech reported Q4 2025 results with revenue growth, improved margins, and positive operating cash flow as transformation efforts showed results.
Key Takeaways
In Q4 2025, Comtech demonstrated significant operational improvement with increased net sales, positive operating income, and a strong turnaround in cash flow. Despite a net loss attributable to common shareholders, margins improved and both business segments delivered solid performance.
Net sales rose to $130.4M, up 3% YoY and QoQ.
Gross margin improved to 31.2%, from 21.5% YoY.
Positive operating income of $1.9M versus $81.5M loss in Q4 2024.
Operating cash flow turned positive at $11.4M, first positive quarter since FY 2023.
Comtech
Comtech
Comtech Revenue by Segment
Revenue by Segment
Satellite & Space Comm Revenue
CapyFin.comAllerium Revenue
CapyFin.com Forward Guidance
Comtech anticipates Q1 2026 revenue between $107M–$113M with continued positive cash flow, though some delays are expected from a recent government shutdown.
Positive Outlook
- Expecting $6M–$7M positive operating cash flow in Q1 2026.
- Liquidity improved to $51M as of Oct 31, 2025.
- Ongoing shift from low-margin contracts to higher-margin business.
- Allerium secured major multi-year contract extension post-Q4.
- S&S business positioned for growth in 5G NTN and satellite networks.
Challenges Ahead
- Q1 2026 revenue projected below Q4 2025 due to timing delays.
- Impact from U.S. government shutdown may cause order delays.
- Legacy contract wind-downs expected to pressure topline.
- Continued restructuring costs could affect near-term results.
- No full-year guidance issued, signaling uncertainty.
Revenue & Expenses
Visualization of income flow from segment revenue to net income