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- **Revenue Growth**: Q4 revenue up 13% YoY to $130.4M, driven by higher-margin satellite solutions and Allerium's emergency communication systems.
- **Profitability**: Gross margin improved to 31.2% in Q4, up from 12.5% in Q1, reflecting operational efficiency and better revenue mix.
- **Liquidity**: Ended FY2025 with $47M liquidity, up from $27M in March 2025, supporting strategic investments.
- **Strategic Wins**: Secured $130M+ carrier contract extension and $6.5M international contracts, positioning for FY2026 growth.


【CEO Summary Section】
- **Financial Turnaround**: Achieved positive operating cash flow in Q4 ($11.4M) and Q3 ($2.3M), marking the first positive cash flows since FY2023. Liquidity reached $47M, the highest in recent history.
- **Revenue Growth**: Q4 revenue increased 13% YoY to $130.4M, driven by higher-margin satellite ground infrastructure solutions and Allerium's emergency communication systems.
- **Gross Margin Improvement**: Gross margin rose from 12.5% in Q1 to 31.2% in Q4, reflecting disciplined revenue mix and operational efficiency.
- **Customer Commitment**: Secured a $130M+ multiyear contract extension with a major telecommunications carrier, reinforcing Allerium's leadership in public safety technology.

【CFO Financial Commentary】
- **Net Sales and Profitability**: FY2025 net sales were $499.5M, with Q4 net sales of $130.4M. Adjusted EBITDA improved sequentially from -$30.8M in Q1 to $13.3M in Q4, driven by cost reductions and margin improvements.
- **Liquidity Management**: Ended FY2025 with $47M liquidity, up from $27M in March 2025. Q1 FY2026 liquidity is projected at $51M, supporting strategic initiatives.
- **Debt Restructuring**: Amended credit facilities to reduce covenant requirements, suspending leverage ratio tests until Q4 2027 and lowering minimum liquidity to $15M.

【Q&A Highlights】
- **Contract Wins**: Allerium secured $6.5M in international contracts (South Australia, Canada) and $10M in NASA's Artemis project.
- **EDIM Certification**: Satellite segment expects to deliver prototype units for U.S. government certification by end-2025, transitioning to production in FY2026.
- **Government Shutdown Impact**: Q1 FY2026 revenue may be delayed by U.S. government shutdown, but FY2026 performance is expected to improve sequentially.


Comtech Telecommunications Corp. (CMTL) Q4 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

CMTL

CMTL fundamentals

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