The key catalyst is the Gilat deal closing — expected in calendar 2026 — which will transform Comtech into a pure-play public safety company (Allerium). Monitor regulatory approvals and the timing of the $128.3M net proceeds application to debt reduction and recapitalization.
Price Chart
Executive Summary
The headline is driven by $5.7M in restructuring costs tied to the pending sale of most of the Satellite & Space Communications business to Gilat for $157.5M. Adjusted EBITDA rose to $9.2M (13.9% of sales) from $7.5M a year ago, and operating cash flow from continuing operations swung to +$18.5M from -$1.2M. The strategic divestiture and improved credit terms are transformative, but the GAAP EPS and ongoing restructuring cloud near-term results.
Key Financial Metrics
Key Facts
- Adjusted EBITDA from continuing ops $9.2M (13.9% of sales) vs $7.5M (10.0%) YoY
- Operating cash flow from continuing ops +$18.5M vs -$1.2M YoY — sixth consecutive positive quarter
- Restructuring costs of $5.7M in Q4 related to strategic alternatives review and pending SS sale
- Definitive agreement to sell most of SS business to Gilat for $157.5M; expected to close in calendar 2026
- Year-end liquidity $61.3M; covenant holiday extended to July 31, 2027
- FY2026 continuing ops net sales $249.6M (-17.0% YoY); Adjusted EBITDA $20.6M (+26% YoY)
- Funded backlog $520.4M; ~80% of revenue recurring; pro forma Adj. EBITDA post-divestiture est. $37-39M
- CFO and CLO departing after transition period; replacements Rich Nyren and Amy Rothstein-Hovey named
Financial Impact
Risk Factors
- Gilat transaction may not close on expected timeline or at all; regulatory approvals
- Transition costs of $13-15M in FY2027-2028 may pressure near-term profitability
- CFO and CLO departures create execution risk during a critical transition period
- Book-to-bill ratio of 0.48x in Q4 signals lumpy order timing; backlog concentration risk
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000023197-26-000111 |
| Document: cmtl-20261014.htm | 0000023197-26-000111 |
| Document: 0000023197-26-000111-index-headers.html | 0000023197-26-000111 |
| Document: 0000023197-26-000111-index.html | 0000023197-26-000111 |
| Document: 0000023197-26-000111.txt | 0000023197-26-000111 |
| 8-K Data (Synthetic) | 0000023197-26-000111 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 16, 2026 11d ago | EFFECT | $1.39 | awaiting T+60 | — | $1.32 (−5.04%) |
Oct 16, 2026 11d ago | EFFECT | $1.39 | awaiting T+60 | — | $1.32 (−5.04%) |
Oct 14, 2026 13d ago | 8-K | $1.45 | awaiting T+60 | — | $1.32 (−8.97%) |
Oct 14, 2026 13d ago | 8-K | $1.45 | awaiting T+60 | — | $1.32 (−8.97%) |
Oct 9, 2026 18d ago | 3 | $1.33 | awaiting T+60 | — | $1.32 (−0.75%) |
Oct 5, 2026 22d ago | 8-K | $1.25 | awaiting T+60 | — | $1.32 (+5.60%) |
Jun 15, 2026 19w ago | 8-K | $2.76 $1.53 | ▼ −44.46% | ▼ −45.47% | $1.32 (−52.09%) |
Jun 15, 2026 19w ago | 8-K | $2.76 $1.53 | ▼ −44.46% | ▼ −45.47% | $1.32 (−52.09%) |
Jun 11, 2026 19w ago | Institutional Cluster | $4.59 $1.56 | ▲ +66.01% | ▲ +70.41% | $1.32 (+71.24%) |
May 14, 2026 23w ago | 8-K | $3.76 $1.73 | ▼ −53.99% | ▼ −58.50% | $1.32 (−64.89%) |
US Market Status
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