Stellar Blu Breaks a Profit as IFC Volumes Grow; 2026 Outlook Affirmed
Q1 revenues grew 20% marking the third straight quarter of double digit (organic) growth. AEBITDA doubled to $15.1M and beat our forecast by 34%.
Gross margins improved 320 bp to a five-quarter high of 34.1%, aided by favorable mix and improving Stellar Blu margins (now profitable). Opex increased 21% y/y, including a 53% increase in G&A.
Defense sales grew 10%, driven by demand for portable and transportable systems (a Datapath specialty) that are inherently more survivable in drone contested environments. Gilat inked a $16M order with a European Ministry of Defense in addition to orders with the Israeli MoD and DoW.
Commercial revenues grew 13%, with strong demand for IFC (antennas, modems, amplifiers), offsetting weakness in legacy GEO markets including cellular backhaul and enterprise.
