Aviat Networks Announces Fiscal 2025 Fourth Quarter and Twelve Months Financial Results

Fourth Quarter Total Revenue of $115.3 million

Operating Income of $8.9 million; Non-GAAP Operating Income of $12.9 million

Net Income of $5.2 million; Adjusted EBITDA of $15.1 million

Diluted Earnings per Share of $0.40; Non-GAAP Diluted Earnings per Share of $0.83

AUSTIN, Texas, Sept. 10, 2025 /PRNewswire/ -- Aviat Networks, Inc. ("Aviat Networks," "Aviat," or the "Company"), (Nasdaq: AVNW), the leading expert in wireless transport and access solutions, today reported financial results for its fiscal 2025 fourth quarter and twelve months ended June 27, 2025.

Fourth Quarter Highlights

• Completed fifth consecutive fiscal year of revenue growth
• Grew quarterly GAAP Net Income to $5.2 million, an increase of $3.6 million or 236% versus the same period a year ago
• Achieved the third consecutive record for quarterly Adjusted EBITDA with $15.1 million at 13.0% margin

Fourth Quarter Financial Highlights

• Total Revenues: $115.3 million; North America revenues of $58.0 million, up $1.8 million from the year ago period
• GAAP Results: Gross Margin 34.2%; Operating Expenses $30.6 million; Operating Income $8.9 million; Net Income $5.2 million; Net Income per diluted share ("Net Income per share") $0.40
• Non-GAAP Results: Adjusted EBITDA $15.1 million; Gross Margin 34.7%; Operating Expenses $27.1 million; Operating Income $12.9 million; Net Income $10.7 million; Net Income per share $0.83
• Cash and Cash Equivalents: $59.7 million
• Net Debt: $27.9 million

Full Year Financial Highlights

• Total Revenues: $434.6 million, up 6.5% from last year
• GAAP Results: Gross Margin 32.1%; Operating Expenses $128.9 million; Operating Income $10.6 million; Net Income $1.3 million, Net Income per diluted share $0.10
• Non-GAAP Results: Adjusted EBITDA $37.1 million; Gross Margin 32.8%; Operating Expenses $113.5 million; Operating Income $29.0 million; Net Income per diluted share $1.67

Fiscal 2025 Fourth Quarter and Twelve Months Ended June 27, 2025

Revenues

The Company reported total revenues of $115.3 million for its fiscal 2025 fourth quarter, compared to $116.7 million in the fiscal 2024 fourth quarter, a decrease of $(1.3) million or (1.1)%. North America revenue of $58.0 million increased by $1.8 million or 3.2%, compared to $56.2 million in the prior year due to growth in private network business. International revenue of $57.3 million decreased by $(3.1) million or (5.2)%, compared to $60.5 million in the prior year due to timing of certain mobile network projects.

For the twelve months ended June 27, 2025, total revenue increased by 6.5% to $434.6 million, compared to $408.1 million in the same period of fiscal 2024. North America revenue of $207.6 million increased by $1.5 million or 0.7%, compared to $206.1 million in the same period of fiscal 2024. International revenue of $227.0 million increased by $25.0 million or 12.4% as compared to $202.0 million in the same period of fiscal 2024.

Gross Margins

In the fiscal 2025 fourth quarter, the Company reported GAAP gross margin of 34.2% and non-GAAP gross margin of 34.7%. This compares to GAAP gross margin of 35.3% and non-GAAP gross margin of 35.9% in the fiscal 2024 fourth quarter, a change of (110) and (120) basis points, respectively. The fluctuations were driven by project and regional customer mix.

For the twelve months ended June 27, 2025, the Company reported GAAP gross margin of 32.1% and non-GAAP gross margin of 32.8%. This compares to GAAP gross margin of 35.5% and non-GAAP gross margin of 36.4% in the same period of fiscal 2024.

Operating Expenses

The Company reported GAAP total operating expenses of $30.6 million for the fiscal 2025 fourth quarter, compared to $35.7 million in the fiscal 2024 fourth quarter, a decrease of $(5.1) million or (14.3)%. Non-GAAP total operating expenses, excluding the impact of restructuring charges, share-based compensation, and merger and acquisition expenses for the fiscal 2025 fourth quarter were $27.1 million, compared to $31.3 million in the prior year, a decrease of $(4.1) million or (13.2)%.

For the twelve months ended June 27, 2025, the Company reported total operating expenses of $128.9 million, compared to $125.3 million in the same period of fiscal 2024, an increase of $3.5 million or 2.8%. Non-GAAP total operating expenses, excluding the impact of restructuring charges, share-based compensation, and merger and acquisition expenses for the twelve months ended June 27, 2025 were $113.5 million, as compared to $105.4 million in the same period of fiscal 2024, an increase of $8.1 million or 7.7%.

Operating Income

The Company reported GAAP operating income of $8.9 million for the fiscal 2025 fourth quarter, compared to $5.5 million in the fiscal 2024 fourth quarter, an increase of $3.4 million or 62.8%. On a non-GAAP basis, the Company reported operating income of $12.9 million for the fiscal 2025 fourth quarter, compared to $10.6 million in the prior year, an increase of $2.3 million or 21.9%.

For the twelve months ended June 27, 2025, the Company reported GAAP operating income of $10.6 million, as compared to $19.4 million in the same period of fiscal 2024, a decrease of $(8.8) million or (45.5)%. Operating income decreased primarily due to merger and acquisition related expenses. On a non-GAAP basis, the Company reported operating income of $29.0 million, compared to $43.1 million in the same period of fiscal 2024, a decrease of $(14.1) million or (32.7)%.

Income Taxes

The Company reported GAAP income tax expense of $5.0 million in the fiscal 2025 fourth quarter, compared to $3.1 million in the fiscal 2024 fourth quarter.

For the twelve months ended June 27, 2025, the Company reported GAAP income tax expense of $2.2 million compared to $6.1 million in the same period of fiscal 2024.

Net Income / Net Income Per Share

The Company reported GAAP net income of $5.2 million in the fiscal 2025 fourth quarter and GAAP net income per share of $0.40. This compared to GAAP net income of $1.5 million or GAAP net income per share of $0.12 in the fiscal 2024 fourth quarter. On a non-GAAP basis, the Company reported net income of $10.7 million or non-GAAP net income per share of $0.83, compared to non-GAAP net income of $9.2 million or $0.72 per share in the prior year.

The Company reported GAAP net income of $1.3 million for the twelve months ended June 27, 2025, or GAAP net income per fully diluted share of $0.10. This compared to GAAP net income of $10.8 million or $0.86 per share in the comparable fiscal 2024 period. On a non-GAAP basis, the Company reported net income of $21.4 million or net income per share of $1.67 for the twelve months ended June 27, 2025, as compared to non-GAAP net income of $39.2 million or $3.15 per share in the comparable fiscal 2024 period.

Adjusted EBITDA

Adjusted earnings before interest, tax, depreciation and amortization ("Adjusted EBITDA") for the fiscal 2025 fourth quarter was $15.1 million, compared to $11.9 million in the fiscal 2024 fourth quarter.

For the twelve months ended June 27, 2025, the Company reported Adjusted EBITDA of $37.1 million, as compared to $48.1 million in the comparable fiscal 2024 period.

Balance Sheet Highlights

The Company reported $59.7 million in cash and cash equivalents as of June 27, 2025, compared to $49.4 million as of March 28, 2025. As of June 27, 2025, total debt was $87.6 million.

Fiscal 2026 Full Year Guidance

The Company established its fiscal 2026 full year revenue and Adjusted EBITDA guidance as follows:

• Full year Revenue between $440 and $460 million
• Full year Adjusted EBITDA between $45.0 and $55.0 million

Conference Call Details

Aviat Networks will host a conference call at 4:15 p.m. Eastern Time (ET) on September 10, 2025, to discuss its financial and operational results for the fiscal 2025 fourth quarter ended June 27, 2025. Participating on the call will be Peter Smith, President and Chief Executive Officer; Michael Connaway, Sr. Vice President and Chief Financial Officer; and Andrew Fredrickson, Vice President, Corporate Finance and Interim Chief Financial Officer. Following management's remarks, there will be a question and answer period.

Interested parties may access the conference call live via the webcast through Aviat Network's Investor Relations website at investors.aviatnetworks.com/events-and-presentations/events, or may participate via telephone by registering using this online form. Once registered, telephone participants will receive the dial-in number along with a unique PIN number that must be used to access the call. A replay of the conference call webcast will be available after the call on the Company's investor relations website.

Upcoming Events

Aviat will participate in the upcoming 9th Annual Lake Street Capital Markets Best Ideas Growth Conference on September 11, 2025 in New York, NY. Investors interested in scheduling a meeting with the company should contact their representative at Lake Street Capital Markets.

About Aviat Networks

Aviat Networks, Inc. is the leading expert in wireless transport and access solutions and works to provide dependable products, services and support to its customers. With more than one million systems sold into 170 countries worldwide, communications service providers and private network operators including state/local government, utility, federal government and defense organizations trust Aviat with their critical applications. Coupled with a long history of microwave innovations, Aviat provides a comprehensive suite of localized professional and support services enabling customers to drastically simplify both their networks and their lives. For more than 70 years, the experts at Aviat have delivered high performance products, simplified operations, and the best overall customer experience. Aviat is headquartered in Austin, Texas. For more information, visit www.aviatnetworks.com or connect with Aviat Networks on Facebook and LinkedIn.

Forward-Looking Statements

The information contained in this Current Report on Form 8-K includes forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including Aviat's outlook, business conditions, new product solutions, customer positioning, future orders, bookings, new contracts, cost structure, profitability in fiscal 2025, its recent acquisitions and acquisition strategy, process improvements, measures designed to improve internal controls, plans and objectives of management, realignment plans and review of strategic alternatives and expectations regarding future revenue, gross margin, Adjusted EBITDA, operating income or earnings or loss per share. All statements, trend analyses and other information contained herein regarding the foregoing beliefs and expectations, as well as about the markets for the services and products of Aviat and trends in revenue, and other statements identified by the use of forward-looking terminology, including "anticipate," "believe," "plan," "estimate," "expect," "goal," "will," "see," "continue," "delivering," "view," and "intend," or the negative of these terms or other similar expressions, constitute forward-looking statements. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, forward-looking statements are based on estimates reflecting the current beliefs, expectations and assumptions of the senior management of Aviat regarding the future of its business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Such forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Forward-looking statements should therefore be considered in light of various important factors, including those set forth in this document. Therefore, you should not rely on any of these forward-looking statements.

Important factors that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements include the following: the disruption the 4RF and NEC transactions may cause to customers, vendors, business partners and our ongoing business; our ability to integrate the operations of the acquired 4RF and NEC businesses with our existing operations and fully realize the expected synergies of the 4RF and NEC transactions on the expected timeline; disruptions relating to the ongoing conflict between Russia and Ukraine and the conflict in Israel and surrounding areas; continued price and margin erosion in the microwave transmission industry; the impact of the volume, timing, and customer, product, and geographic mix of our product orders; our ability to meet financial covenant requirements; the timing of our receipt of payment; our ability to meet product development dates or anticipated cost reductions of products; our suppliers' inability to perform and deliver on time, component shortages, or other supply chain constraints; the effects of inflation; customer acceptance of new products; the ability of our subcontractors to timely perform; weakness in the global economy affecting customer spending; retention of our key personnel; our ability to manage and maintain key customer relationships; uncertain economic conditions in the telecommunications sector combined with operator and supplier consolidation; our failure to protect our intellectual property rights or defend against intellectual property infringement claims; the results of our restructuring efforts; the effects of currency and interest rate risks; the ability to preserve and use our net operating loss carryforwards; the effects of current and future government regulations; general economic conditions, including uncertainty regarding the timing, pace and extent of an economic recovery in the United States and other countries where we conduct business; the conduct of unethical business practices in developing countries; the impact of political turmoil in countries where we have significant business; our ability to realize the anticipated benefits of any proposed or recent acquisitions; the impact of tariffs, the adoption of trade restrictions affecting our products or suppliers, a United States withdrawal from or significant renegotiation of trade agreements, the occurrence of trade wars, the closing of border crossings, and other changes in trade regulations or relationships; our ability to implement our stock repurchase program or that it will enhance long-term stockholder value; and the impact of adverse developments affecting the financial services industry, including events or concerns involving liquidity, defaults or non-performance by financial institutions.

For more information regarding the risks and uncertainties for Aviat's business, see "Risk Factors" in Aviat's Form 10-K for the fiscal year ended June 28, 2024 filed with the SEC on September 10, 2025, as well as other reports filed by Aviat with the SEC from time to time. Aviat undertakes no obligation to update publicly any forward-looking statement, whether written or oral, for any reason, except as required by law, even as new information becomes available or other events occur in the future.

Investor Relations:

Andrew Fredrickson

Email: [email protected]

SOURCE Aviat Networks, Inc.