CMTL

InterDigital, Inc. IDCC reported better-than-expected second-quarter 2026 results, driven by healthy licensing momentum and contributions from its new Streaming and Cloud Services business. The company generated second-quarter revenues of $260.2 million, which declined 13% year over year but surpassed the Zacks Consensus Estimate. Non-GAAP earnings of $4.62 per share also comfortably beat expectations. The year-over-year decline largely reflected lower catch-up revenues compared with the prior-year period.Annualized recurring revenue increased 13% year over year to a record $625.7 million, highlighting strength in IDCC's underlying licensing portfolio. The increasing recurring revenue base provides greater revenue visibility and should help support continued investments in wireless, video and artificial intelligence (AI) technologies. InterDigital's recently signed agreement with Amazon.com, Inc. AMZN represents a significant step in expanding its licensing business beyond smartphones. The agreement covers Amazon services and devices, including Prime Video, with final financial terms to be established through binding arbitration.The deal helped Streaming and Cloud Services generate $110 million in second-quarter revenues against no revenues in the year-ago quarter. This emerging business could become an important growth driver as InterDigital looks to monetize its intellectual property across streaming platforms, cloud services, consumer electronics, IoT devices and automobiles. Such diversification should gradually reduce the company's dependence on traditional smartphone licensing opportunities.IDCC also remains well-positioned to capitalize on increasing investments in 5G, connected devices and next-generation video technologies. Its extensive patent portfolio and continued research investments provide a foundation for signing additional licensing agreements. InterDigital has collaborated with major academic institutions worldwide to expedite 6G research as it aims to strengthen its position in the next generation of wireless communications. Data traffic demand is growing exponentially worldwide and 5G networks are required to support this high-capacity end-user throughput. The MIMO (Multiple-Input, Multiple-Output) technology leverages an active antenna system that consists of multiple antenna elements to augment the performance, reliability and overall efficiency of wireless communication systems. The 6G technology, which relies on Massive MIMO, will enable significantly higher data rates than its predecessors, leading to improved spectrum efficiency. The company is actively contributing to the development of 6G standards, with research spanning integrated sensing and communication, sub-terahertz technologies, AI-native network architecture and post-quantum security. Its work also builds on advancements in 5G-Advanced, including massive MIMO, non-terrestrial networks, extended reality and AI/ML-driven network optimization.These initiatives are particularly important given InterDigital's licensing-focused business model. By developing technologies that could become essential to future wireless standards, the company is seeking to expand its portfolio of standard-essential patents and create additional licensing opportunities over the long term. Although commercial 6G deployment remains several years away, InterDigital's continued investment in next-generation wireless research could strengthen its technological leadership and support future royalty growth. InterDigital has surged 23.2% in the past year compared with the industry’s growth of 28.2%. It has outperformed peers like Aviat Networks, Inc. AVNW and Comtech Telecommunications Corp. CMTL. While Aviat has declined 6.6%, Comtech is down 10.3% over this period. One-Year IDCC Stock Price Performance Image Source: Zacks Investment Research Following strong quarterly results, InterDigital raised its 2026 revenue outlook to $775-$845 million from the previous range of $675-$775 million. Adjusted EBITDA is now projected between $469 million and $529 million, up from the prior forecast of $381-$477 million.The company also increased its non-GAAP earnings guidance to $10.85-$12.81 per share from $8.74-$11.84. InterDigital's healthy financial position provides additional flexibility. The company exited June with approximately $1.11 billion in cash, cash equivalents and short-term investments. Its asset-light licensing model and strong liquidity should help fund research initiatives while supporting shareholder returns. InterDigital's solid second-quarter performance, record recurring revenues, Amazon deal and raised guidance paint an encouraging picture. Expansion into Streaming and Cloud Services also broadens the company's long-term addressable market. Investors seeking exposure to the expanding wireless, streaming and connected-device ecosystems may consider buying IDCC stock following its solid second-quarter performance. InterDigital sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report InterDigital, Inc. (IDCC) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Aviat Networks, Inc. (AVNW) : Free Stock Analysis Report Comtech Telecommunications Corp. (CMTL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

It has been about a month since the last earnings report for Comtech Telecommunications (CMTL). Shares have lost about 37.8% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Comtech due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Comtech Telecommunications Corp. before we dive into how investors and analysts have reacted as of late. Comtech Reports Narrower-Than-Expected Q3 Loss Despite Lower RevenuesComtech reported mixed third-quarter fiscal 2026 results, with the bottom line beating the Zacks Consensus Estimate while the top line missing the same. The company reported lower year-over-year revenues, primarily due to the planned phase-out of certain low-margin satellite and space contracts, which offset stable performance in its Allerium public safety business and ongoing improvements in operational efficiency.Net IncomeNet loss on a GAAP basis was $14.26 million or a loss of 47 cents per share compared with a net loss of $14.47 million or a loss of 49 cents per share in the prior-year quarter. Lower net sales impacted the bottom line.Non-GAAP net loss in the reported quarter was $6.75 million or a loss of 22 cents per share compared with a net loss of $5.24 million or a loss of 18 cents per share in the prior-year quarter. The bottom line was narrower than the Zacks Consensus Estimate of a loss of 27 cents.RevenuesNet sales decreased to $106 million from $126.79 million in the year-earlier quarter, owing to a decline in both the Allerium and Satellite and Space Communications (S&S) segments. The top line fell short of the Zacks Consensus Estimate of $110.21 million.At the end of the third quarter of fiscal 2026, net bookings were $70.5 million compared with $71 million in the year-ago quarter. The book-to-bill ratio was 0.67x compared with 0.56x in the year-ago quarter. Consolidated Backlog decreased to $696.1 million from $708.1 million.Segmental PerformanceNet sales from Allerium decreased to $55.67 million from $59.22 million. The segment’s book-to-ratio was 0.32x compared with 0.91x in the year-ago quarter, primarily due to the timing of large, multi-year contract awards.Net sales from S&S were $50.33 million, down 25.6% year over year. The segment’s book-to- ratio increased to 1.04x from 0.8x in the year-earlier quarter, reflecting stronger order activity and improved demand.Other DetailsDuring the quarter, non-GAAP operating income declined to $5.12 million from $9.85 million a year ago. Adjusted EBITDA was $8.25 million compared with $12.58 million in the year-ago quarter.Operating income for Allerium decreased to $4.36 million from $8.36 million. Operating income for S&S was $1.58 million, down from $2.72 million. Adjusted EBITDA for Allerium was $10.4 million compared with $13.9 million in the year-ago quarter. Adjusted EBITDA for S&S decreased to $4.1 million from $5.7 million a year ago.Cash Flow & LiquidityAs of April 30, 2026, Comtech had $28.5 million in cash and cash equivalents and $29.88 million of operating lease liabilities (non-current). During the quarter, the company generated $6.11 million of net cash from operating activities compared with $2.3 million in the year-ago quarter. During the first nine months, Comtech generated $19.05 million in cash against a cash usage of $19.74 million in the prior-year period. In the past month, investors have witnessed a downward trend in estimates review. The consensus estimate has shifted -29.63% due to these changes. Currently, Comtech has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Interestingly, Comtech has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Comtech Telecommunications Corp. (CMTL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Comtech Telecommunications Corp. CMTL used its third-quarter fiscal 2026 earnings call to frame a sharper strategic reset, centered on selling most of its Satellite and Space Communications business and repositioning around Allerium. Management’s message was less about the quarter’s headline numbers and more about balance sheet repair, a narrower operating focus and why the remaining public safety business should support the next phase of growth. Chairman, president and CEO Kenneth Traub said the quarter marked proof that the company had executed against the four pillars he set out in early 2025: operational discipline, positive operating cash flow, a strategic review and capital structure improvement. Traub argued those steps gave Comtech the leverage to negotiate from a stronger position with lenders, preferred holders and buyers. He tied the sale of most of the S&S business to Gilat for $157.5 million directly to that turnaround effort. The company also pointed to a fifth straight quarter of positive operating cash flow, with $6.1 million generated in the period, as evidence that the business is no longer operating from a distressed footing. Traub spent much of the call explaining why Allerium, not S&S, will define the company after the transaction closes. He described public safety as a large and expanding market moving toward data-driven and AI-enhanced emergency response. President of Allerium Jeff Robertson reinforced that point, saying the business sits across the emergency response stack, from device location to next-generation 911 call handling and related data management. He said recent investment in research and go-to-market capacity was meant to extend that lead. The strategic case was clear: Comtech wants a simpler structure, a more software and services-led mix, and a business tied to recurring contracts with public safety agencies and mobile operators. Chief financial officer Michael Bondi said the expected net cash proceeds from the S&S sale should total about $143 million to $145 million after sale-related expenses. Under existing credit terms, 65% of those proceeds will go to senior debt and 35% to subordinated debt. Bondi also said Comtech amended its credit agreements again on June 14 to suspend leverage, fixed-charge coverage and minimum EBITDA covenant testing through the four-quarter period ending July 31, 2027. Management presented that as another step in stabilizing the capital structure. In Q&A, Traub said the asset sale does not trigger a change of control for the preferred stock. He added that once the transaction closes and debt is refinanced, the company expects to emerge with a cleaner capital structure. Comtech delivered mixed quarterly results. The company reported a loss of 22 cents, narrower than the consensus estimate of a loss of 27 cents, the surprise being 18.5%. Revenues fell 16.4% year over year to $106 million and missed the Zacks Consensus Estimate of $110.2 million, delivering a negative surprise of 3.8%. Comtech Telecommunications Corp. price-consensus-eps-surprise-chart | Comtech Telecommunications Corp. Quote Bondi said the revenue decline mainly reflected Comtech’s deliberate exit from low-margin, working-capital-intensive S&S revenues, especially the VSAT satellite systems and services contract. Gross margin improved to 34% from 30.7% a year earlier. Management repeatedly asked investors to focus on profitability and quality rather than top-line contraction. Adjusted EBITDA was $8.2 million, and excluding amortization, restructuring, stock compensation and transition items, operating income would have been positive. Robertson said Allerium’s long-term profile rests on sticky contracts and a significant recurring revenue base, though he did not quantify that share. Bondi added that RemainCo will carry $554 million of funded backlog, mostly tied to long-duration software and services work. The company cited milestone progress in Kentucky’s statewide NG9-1-1 deployment, more than a dozen Canadian NG9-1-1 upgrades this fiscal year and additional orders from U.S. mobile network operators. Management used those examples to argue that the business has both visibility and expansion room. On the S&S side, president Daniel Gizinski said customer demand had strengthened in niche areas such as troposcatter systems, cybersecurity operations support, antennas and satellite ground infrastructure. S&S posted a 1.04 book-to-bill ratio, its first above 1.0 since the first quarter of fiscal 2024. The sharpest Q&A exchanges centered on what the remaining company will look like after the sale. A Northcoast Research analyst pressed management on timing, capital structure a year from now, and the financial contribution of the retained cyber business. Traub said the retained cyber and small services operation produces about $20 million in revenues and roughly $3 million of EBITDA. He also said the pro forma remaining company would reflect Allerium, the cyber business, corporate costs and about $12 million of anticipated savings. When asked about Allerium’s growth profile, Robertson discussed margin expansion through scale and broader workflow offerings, while Traub stopped short of giving formal guidance. That restraint stood out, even as management sounded increasingly confident about the strategic direction. Coming out of the call, management’s posture was more disciplined than promotional. Executives emphasized execution, financial flexibility, and a narrower mission rather than near-term upside claims. That left investors with a clearer picture of the post-transaction company: a public safety and mission-critical communications platform built around Allerium, supported by recurring contracts and freed from a large portion of its debt burden. CMTL carries a Zacks Rank #3 (Hold), with Value, Growth, Momentum and VGM Scores of A. Under the Zacks framework, a Rank #3 can still be held, and stronger Style Scores point to more favorable value, growth, and momentum characteristics than weaker-graded peers. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Still, the Zacks system places the greatest weight on earnings estimate revisions, with Style Scores serving as a complement rather than a substitute. That means the current profile is constructive but not definitive, and the Zacks Rank can change as analysts update estimates after the quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Comtech Telecommunications Corp. (CMTL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

CHANDLER, Ariz., June 15, 2026--(BUSINESS WIRE)--Comtech Telecommunications Corp. (NASDAQ: CMTL) ("Comtech" or the "Company"), a global communications technology leader, today reported financial results for its third quarter ended April 30, 2026. Ken Traub, Chairman, President and CEO, stated: "When I stepped into the CEO role in early 2025, I announced a transformation plan which featured four pillars: (1) Operational discipline, (2) Returning to positive operating cash flow, (3) Conducting a comprehensive review of strategic alternatives, and (4) Strengthening our capital structure. Our results and announcements today demonstrate that we are successfully delivering on each of those promises. The operational improvements that we have implemented have enabled us to report today our fifth consecutive quarter of positive operating cash flow. Our improved and consistent financial performance has enabled us to pursue the strategic alternatives process as well as negotiations with our lenders and investors from a position of strength. The transactions we are announcing today of both the sale of most of our Satellite and Space Communications business for $157.5 million to Gilat and the improved terms we negotiated with our creditors and preferred shareholders represent a defining milestone in Comtech’s transformation, renewed strength and future prospects. Together, these actions immediately further strengthen our financial position and enable us to transition to a streamlined business with a clear strategic focus as a leader in next-generation public safety and mission-critical technologies and services. Under Jeff Robertson's leadership, Allerium has been enhancing its mission-critical solutions for public safety agencies and mobile network operators. With an improved capital structure, focused organization and strategic clarity, Allerium is poised to capitalize on its leadership in the public safety market and accelerate its growth. Upon closing, our transition to Allerium will mark the beginning of an exciting new chapter — one in which we will focus our investment, innovation, and execution on a singular mission: leading the evolution of public safety technologies as the market shifts from traditional voice-based systems toward data-centric communications, real-time coordination, and AI-enhanced decision making. We believe Allerium is uniquely positioned to lead this large and growing market for years to come. Finally, I would like to thank and compliment our entire team. We set ambitious goals during a period of significant challenge, remained disciplined in our execution, and delivered. Throughout our organization, in S&S, Allerium, Finance, Legal, IT and People Operations, I have seen the dedication, loyalty and passion that is driving these significant achievements. I am so proud of this team and what we are accomplishing together." Consolidated Financial Results Net sales of $106.0 million Gross profit of 34.0% Operating loss of $3.1 million and net loss attributable to common shareholders of $14.3 million Adjusted EBITDA (a Non-GAAP financial measure) of $8.2 million, or 7.8% of net sales Net bookings of $70.5 million, representing a book-to-bill ratio of 0.67x Funded backlog of $696.1 million and revenue visibility of approximately $1.1 billion GAAP cash flows provided by operations of $6.1 million Total liquidity at quarter end of $49.4 million Third Quarter Fiscal 2026 Results Commentary Consolidated Consolidated net sales were $106.0 million, a decrease of 16.4% compared to $126.8 million reported in the third quarter of fiscal 2025. Approximately 17% of the decrease in consolidated sales occurred in the Allerium segment. Allerium reported net sales consistent with the third quarter of fiscal 2025, excluding $3.0 million of net sales in the prior year period related to a negotiated, retroactive billing event to recover costs incurred in previous quarters. As anticipated, S&S segment net sales declined due to the Company’s decision to phase out and eliminate certain low-margin and working capital intensive revenues, such as the Very Small Aperture Terminal ("VSAT") Satellite Systems and Services contract. Consolidated gross profit was $36.1 million, or 34.0% of consolidated net sales, compared to $38.9 million, or 30.7% of consolidated net sales, reported in the third quarter of fiscal 2025. The Company's gross profit for the third quarter of fiscal 2026 (both in dollars and as a percentage of consolidated net sales) reflects overall product mix changes and improved operational and financial performance as a result of the Company's transformation initiatives to, among other things, enhance operational efficiency, streamline product lines with a focus on strategic, higher operating margin products and reduce cost structures. Consolidated gross profit (both in dollars and as a percentage of consolidated net sales) for the prior year period also includes Allerium's retroactive billing event discussed above. The improvement in the Company's gross profit percentage builds upon the quarterly trend achieved throughout fiscal 2025 and the first two quarters of fiscal 2026. Consolidated operating loss was $3.1 million, compared to an operating loss of $1.5 million in the third quarter of fiscal 2025. Operating loss in the third quarter of fiscal 2026 reflects $4.6 million of amortization of intangibles, $2.4 million of restructuring costs (of which $0.2 million, $0.8 million and $1.4 million related to the Allerium, S&S and Unallocated segments, respectively), $1.2 million of amortization of stock-based compensation and nominal CEO transition costs. Excluding such items, consolidated operating income for this past quarter would have been $5.1 million, or 4.8% of consolidated net sales. Consolidated operating loss for the prior year period includes the benefit of Allerium's retroactive billing event discussed above. Consolidated net loss attributable to common stockholders was $14.3 million, compared to a net loss attributable to common stockholders of $14.5 million in the third quarter of fiscal 2025. In addition to those items described above, and as more fully discussed in the Company’s SEC filings, the more recent period included $10.8 million of net dividends related to the Company’s Convertible Preferred Stock, compared to $48.4 million of net dividends in the prior year period. Consolidated Adjusted EBITDA (a Non-GAAP financial measure) was $8.2 million, compared to $12.6 million in the third quarter of fiscal 2025. Compared to the prior year period, Adjusted EBITDA reflects those factors discussed above. Consolidated net bookings were $70.5 million in the third quarter of fiscal 2026, compared to $71.0 million in the third quarter of fiscal 2025. The book-to-bill ratio in the third quarter of fiscal 2026 was 0.67x, compared to 0.56x in the third quarter of fiscal 2025. As part of the Company’s transformation plan, it has refocused and prioritized its product development and sales efforts to eliminate certain low-margin revenue and target higher-margin opportunities in which it has greater differentiation and to optimize cash flow. Consolidated backlog was $696.1 million as of April 30, 2026, compared to $708.1 million as of April 30, 2025 and $672.1 million as of July 31, 2025. Revenue visibility, measured as the sum of funded backlog and the total unfunded value of certain multi-year contracts, was approximately $1.1 billion at the end of the third quarter. GAAP cash flows provided by operations were $6.1 million, an improvement from the third quarter of fiscal 2025 cash flows provided by operations of $2.3 million. This is Comtech’s fifth consecutive quarter of positive operating cash flows and reflects favorable changes in net working capital management, due primarily to improved accountability and process disciplines, as well as the timing of and progress toward completion on contracts accounted for over time, including related shipments, billings and collections. Operating cash flows in the third quarter of fiscal 2026 include aggregate net cash payments of $4.1 million, principally for interest and, to a much lesser extent, income taxes, compared to $10.1 million in the third quarter of fiscal 2025. Operating cash flows for the third quarter of fiscal 2026 and 2025 also include $2.4 million and $7.0 million, respectively, in aggregate net cash payments for restructuring costs, including severance, CEO transition costs and third-party professional fees related to the modification of the Amended Subordinated Credit Facility on March 3, 2025. Allerium Segment Allerium net sales were $55.7 million, a decrease of 5.9% compared to the third quarter of fiscal 2025. The prior year period includes the $3.0 million benefit related to Allerium's retroactive billing event discussed above. Allerium operating income was $4.4 million, compared to $8.4 million in the third quarter of fiscal 2025. The year-over-year decrease in Allerium’s operating income, both in dollars and as a percentage of segment net sales, primarily reflects the retroactive billing event discussed above. Allerium also had an increase in research and development and go-to-market investment to extend its product leadership and drive future growth. Allerium’s Adjusted EBITDA was $10.4 million, compared to $13.9 million in the third quarter of fiscal 2025. Compared to the prior year period, Adjusted EBITDA reflects those factors discussed above. Allerium’s book-to-bill ratio in the third quarter of fiscal 2026 was 0.32x, compared to 0.91x in the prior year period. The ratio for the most recent quarter reflects the timing of large, multi-year contract awards, and is not unusual given Allerium's strong book-to-bill ratios of 1.06x and 2.51x, respectively, in the first and second quarters of fiscal 2026. With strategic wins in the U.S., Canada and Australia, the Company believes its position as a trusted leader in 9-1-1, NG9-1-1 and public safety applications positions Allerium increasingly well to deliver similarly sophisticated solutions for other types of emergencies. Today, a significant and growing portion of Allerium revenue is recurring, giving the Company a stable, high-visibility foundation on which to build. New emergency requesting devices, such as "wearables," vehicles, smart speakers and AI capable cameras, and new delivery methods, such as through satellite networks, along with expansion in the emergency workflow technologies, are expected to drive innovation and growth for Allerium within the public safety market over time. Key Allerium contract awards during the third quarter of fiscal 2026 included: approximately $6.0 million of additional funding related to a renewal of NG9-1-1 services for a customer in the midwestern region of the U.S.; $2.0 million in funding from a domestic Tier 1 mobile network operator to support the development and migration of various web-based mobile network services; and over $1.6 million in funded orders from another domestic Tier 1 mobile network operator in support of various mobile network services. In April 2026, Allerium announced it reached a significant milestone in its statewide contract to design, deploy, and operate NG9-1-1 services for the Commonwealth of Kentucky. In December 2025, Allerium migrated the first Public Safety Answering Point ("PSAP"), Bluegrass 911 Communications, onto the Commonwealth’s new service and delivered the first NG9-1-1 text and voice calls to this Lancaster, Kentucky agency. After months of planning leading to the first cutover, the program has already migrated 12 PSAPs in its first four months of operation, thus establishing a strong foundation for the continued statewide transition to NG9-1-1 across Kentucky. The milestone comes just over one year after Allerium first announced its NG9-1-1 partnership with the Commonwealth and the Kentucky 911 Services Board in March 2025. Under this multi-year contract, Allerium’s public safety-grade service will deliver seamless interoperability and integration while enabling new and advanced communication capabilities, such as geospatial location routing, all backed by proven products, processes, and statewide PSAP and OSP migration success spanning multiple Emergency Services Internet Protocol Network ("ESInet") and Next Generation Core Services ("NGCS") deployments. In May 2026, Allerium announced the opening of its new purpose-built facility in Gatineau, Quebec. The new office reflects Allerium’s continued commitment to Canada and its long-standing presence in the region. The City of Gatineau and the Province of Quebec helped enable this next phase of growth, funding the development of Allerium’s new facility. Allerium’s new facility in Canada builds on strong operational momentum. This includes the recent go-live of the Gatineau 9-1-1 agency, as well as more than a dozen NG9-1-1 upgrades in Canada this fiscal year. These milestones reflect Allerium’s expanding role in modernizing emergency communications infrastructure and supporting public safety agencies in Canada and worldwide. The Gatineau facility strengthens Allerium’s ability to support customers across Canada, while contributing to a broader footprint of public safety agencies across North America and internationally. Satellite and Space Communications ("S&S") Segment S&S net sales were $50.3 million, a decrease of 25.6% compared to the third quarter of fiscal 2025. As anticipated, the decline in net sales in the S&S segment primarily reflects the Company’s decision to phase out and eliminate certain low-margin and working-capital-intensive revenues, such as the VSAT Satellite Systems and Services contract. S&S operating income was $1.6 million, compared to operating income of $2.7 million in the third quarter of fiscal 2025. S&S operating income in the third quarter of fiscal 2026 was impacted by $0.8 million of restructuring costs to streamline its operations, compared to $0.9 million in the third quarter of fiscal 2025. S&S Adjusted EBITDA was $4.1 million in the third quarter of fiscal 2026, compared to $5.7 million in the prior year period. Compared to the prior year period, Adjusted EBITDA reflects those factors discussed above. S&S’ book-to-bill ratio for the third quarter of fiscal 2026 was 1.04x compared to 0.80x in the prior year period (excluding a $36.4 million debooking in the prior fiscal year associated with the U.S. Army GFSR contract). In the more recent quarter, S&S experienced a strengthening in its funded orders. This was the first time since the first quarter of fiscal 2024 that S&S achieved a book-to-bill ratio greater than 1.0x. Key S&S contract awards during the third quarter of fiscal 2026 included: over $7.0 million in funding for several rapidly deployable troposcatter MTTS, intended for use by an international government end customer; approximately $6.0 million in incremental funding for ongoing training and support of complex cybersecurity operations for U.S. government customers; approximately $4.9 million in incremental funding to design and manufacture antenna related equipment for a U.S. government end customer; over $4.2 million in funded orders from a long-time international customer for the procurement of ongoing maintenance and support services related to long range missile and rocket launch tracking systems; over $3.2 million of funded orders for various types of antennas and radio feeds for a domestic prime contractor to the U.S. government; approximately $2.4 million in aggregate orders related to satellite ground infrastructure solutions, including production units, intended for use in a new LEO satellite constellation network being deployed; subsequent to quarter end, the Company also received orders totaling over $10.0 million to develop and deliver initial prototypes for high frequency LEO satellite communications equipment; and in excess of $2.0 million in funded orders from a domestic prime contractor to the U.S. government for certain types of amplifiers. As discussed in more detail in a Current Report on Form 8-K to be filed by the Company with the SEC on June 15, 2026, subsequent to quarter end, on June 14, 2026, the Company entered into a transaction to sell most of Comtech's Satellite and Space Communications ("S&S") business to an affiliate of Gilat Satellite Networks Ltd. As the criteria for reporting the portion of the S&S business being sold as "held for sale" was not met as of April 30, 2026, the Company's Condensed Consolidated Financial Statements as of and for the three and nine months ended April 30, 2026 and 2025 reflect the portion of the S&S business being sold as "held and used." The portion of the S&S business being retained by Comtech principally includes advanced cybersecurity training in support of U.S. government and certain commercial and university customers. Capital Structure and Liquidity Comtech separately announced amendments to its existing credit facilities and agreed to replace the existing series of convertible preferred stock with a new series of convertible preferred stock. These agreements deliver immediate improvements that enhance the Company's financial flexibility. Comtech was able to negotiate these transactions from a position of strength as a result of the significant improvements in the Company's financial and operating performance over the past several quarters. Comtech anticipates the net cash proceeds from the sale of most of S&S' business to range from approximately $143.0 million to $145.0 million, exclusive of any additional proceeds from assets that have been part of the S&S business but will be retained by Comtech and after deducting estimated sale-related expenses of approximately $12.5 million to $14.5 million. In accordance with its existing credit facilities, the Company will use 65% of the net proceeds from the sale of most of S&S' business to prepay the majority of its senior secured credit facility, with the remaining 35% to prepay subordinated debt outstanding, starting with repaying the subordinated priority term loan. As previously disclosed, Comtech amended its Credit Facility and Subordinated Credit Facility on October 17, 2024, March 3, 2025 and July 21, 2025 to, among other things, suspend testing of the Net Leverage Ratio, Fixed Charge Coverage Ratio and Minimum EBITDA covenants until the four-quarter period ending on January 31, 2027. Such amendments, combined with the Company’s significantly improved operational and financial performance, led to Comtech’s enhanced financial flexibility and removal of its going concern disclosures in its fiscal 2025 Form 10-K filed in November 2025. On June 14, 2026, Comtech further amended its Credit Facility and Subordinated Credit Facility to, among other things, suspend testing of the Net Leverage Ratio, Fixed Charge Coverage Ratio and Minimum EBITDA covenants until the four-quarter period ending on July 31, 2027. At April 30, 2026 and June 12, 2026: Total outstanding borrowings under Comtech’s Credit Facility were $119.7 million and $116.0 million, respectively; $3.6 million was drawn on the Revolver Loan as of April 30, 2026 and repaid in May 2026; Total outstanding borrowings under Comtech’s Subordinated Credit Facility were $104.1 million and $104.8 million, respectively, including interest paid-in-kind or accrued on the $35.0 million subordinated priority term loan; such amounts do not include the $32.5 million Make-Whole Amount associated with the $65.0 million portion of the Subordinated Credit Facility (pursuant to the terms of the Subordinated Credit Facility, as of both April 30, 2026 and the issuance date, the Make-Whole Amount percentage for each tranche within the $65.0 million of principal is 50.0%); The liquidation preference of the Company’s outstanding convertible preferred stock was $218.2 million and $220.5 million, respectively (excluding potential increases in the liquidation preference and other obligations that could be triggered by, among other things, breaches of covenants and/or asset sales resulting in a change in control of the Company); and The Company’s available sources of liquidity totaled $49.4 million at April 30, 2026, which includes qualified cash and cash equivalents of $25.8 million and $23.6 million of remaining available Revolver Loan capacity. As of June 12, 2026, the remaining available portion of the Revolver Loan was $27.3 million. Conference Call and Webcast Information Comtech will host a conference call with investors and analysts on Monday, June 15, 2026, at 8:30 am Eastern Time. A live webcast of the conference call will be accessible on the Investor Relations section of Comtech’s website at www.comtech.com/investors. Alternatively, investors can access the conference call by dialing (833) 354-6854 (primary) or (785) 838-9343 (alternate) and using the conference I.D. of "Comtech." A replay will be available through Monday, June 29, 2026, by dialing (800) 839-3012 or (402) 220-7232. About Comtech Comtech Telecommunications Corp. delivers trusted mission-critical communications solutions used by military forces, government agencies, public safety organizations, mobile network operators and communities around the world. With nearly 60 years of global communications technology leadership, Comtech provides secure, resilient systems proven to perform in the world’s most demanding environments. Through advanced satellite and space communications systems and Allerium’s Next Generation 9-1-1 emergency services and location-intelligence platforms, Comtech delivers reliable connectivity across orbit, network and ground to keep essential missions, services and communities connected when it matters most. For more information, please visit www.comtech.com. Cautionary Note Regarding Forward-Looking Statements Certain information in this press release contains, and oral statements made by its representatives from time to time may contain, forward-looking statements. Forward-looking statements can be identified by words such as: "anticipate," "believe," "continue," "could," "estimate," "expect," "future," "goal," "outlook," "intend," "likely," "may," "plan," "potential," "predict," "project," "seek," "should," "strategy," "target," "will," "would," and similar references to future periods, or the negative of those words and expressions, as well as statements in future tense. Forward-looking statements include, among others, statements regarding the expected completion of, the anticipated benefits of, and its plans, strategies and objectives relating to, the pending transaction with Gilat Satellite Networks Ltd, including the time frame in which such proposed transaction will occur, its expectations for further portfolio-shaping opportunities, its expectations for other operational initiatives, its expectations for completing further financing initiatives, its future performance and financial condition, the plans and objectives of its management and its assumptions regarding such future performance, financial condition, and plans and objectives that involve certain significant known and unknown risks and uncertainties and other factors not under its control which may cause its actual results, future performance and financial condition, and achievement of its plans and objectives of its management to be materially different from the results, performance or other expectations implied by these forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. Forward-looking information is based on information available at the time and/or its good faith belief with respect to future events, and is subject to risks and uncertainties that are difficult to predict and many of which are outside of its control. Factors that could cause actual results to differ materially from current expectations include, among other things: its ability to consummate the transactions on a timely basis or at all; unexpected costs, liabilities or delays in connection with the proposed transaction; the significant transaction costs associated with the proposed transaction; negative effects of the announcement, pendency or consummation of the transaction on the market price of its common stock or operating results, including as a result of changes in key customer, supplier, employee or other business relationships; the risk of litigation or regulatory actions; its inability to retain and hire key personnel; further portfolio-shaping opportunities, other operational initiatives, and the completion of further financing activities; its ability to access capital and liquidity; changes in its executive leadership; the possibility that the expected benefits from its strategic activities will not be fully realized, or will not be realized within the anticipated time periods; the risk that acquired businesses will not be integrated successfully; impacts from, and uncertainties regarding, future actions that may be taken by activist stockholders; the possibility of disruption from acquisitions or dispositions, making it more difficult to maintain business and operational relationships or retain key personnel; the risk that it will be unsuccessful in implementing a tactical shift in its Satellite and Space Communications segment away from bidding on large commodity service contracts and toward pursuing contracts for its niche products and solutions with higher margins; the nature and timing of its receipt of, and its performance on, new or existing orders that can cause significant fluctuations in net sales and operating results; the timing and funding of government contracts; the timing and amount of adjustments to gross profits on long-term contracts; risks associated with international sales; rapid technological change; evolving industry standards; new product announcements and enhancements or rebranding; changing customer demands and/or procurement strategies and its ability to scale opportunities and deliver solutions to current and prospective customers; changes and uncertainty in prevailing economic and political conditions (including financial and capital market conditions), including as a result of military conflicts or any tariff, trade restrictions or similar matters; impact of government shutdowns; changes to government procurement practices; changes in the price of oil in global markets; changes in prevailing interest rates and foreign currency exchange rates; risks associated with its legal proceedings, customer claims for indemnification, and other similar matters; risks associated with its obligations under its credit facilities; risks associated with its large contracts; risks associated with supply chain disruptions; and other factors described in this and its other filings with the Securities and Exchange Commission ("SEC"). However, these risks are not the only risks that it faces. Additional risks and uncertainties, not currently known to the Company or that do not currently appear to be material, may also materially adversely affect its business, financial condition and/or operating results in the future. The Company describes risks and uncertainties that could cause actual results and events to differ materially in the "Risk Factors" (Part I, Item 1A), "Management’s Discussion and Analysis of Financial Condition and Results of Operations" (Part II, Item 7) and "Quantitative and Qualitative Disclosures about Market Risk" (Part II, Item 7A) sections of its Annual Report on Form 10-K, filed with the SEC on November 10, 2025, as the same may be updated from time to time in the Company's various filings with the SEC. The Company does not intend to update or revise publicly any forward-looking statements, whether because of new information, future events, or otherwise, except as required by law. Appendix: Condensed Consolidated Statements of Operations (Unaudited) Condensed Consolidated Balance Sheets (Unaudited) Condensed Consolidated Statements of Cash Flows (Unaudited) Use of Non-GAAP Financial Measures Use of Non-GAAP Financial Measures To provide investors with additional information regarding the Company’s financial results, this release contains "Non-GAAP financial measures" under the rules of the SEC. The Company’s Adjusted EBITDA is a Non-GAAP measure that represents earnings (loss) before interest, income taxes, depreciation, amortization of intangibles, impairment of long-lived assets, including goodwill, amortization of cost to fulfill assets, amortization of stock-based compensation, CEO transition costs, change in fair value of warrants and derivatives, proxy solicitation costs, restructuring costs, strategic emerging technology costs (for next-generation satellite technology), and write-off of deferred financing costs and debt discounts, and in the recent past, acquisition plan expenses, change in fair value of the convertible preferred stock purchase option liability, COVID-19 related costs, facility exit costs, strategic alternatives expenses and other and loss on business divestiture. These items, while periodically affecting its results, may vary significantly from period to period and may have a disproportionate effect in a given period, thereby affecting the comparability of results. Although closely aligned, the Company’s definition of Adjusted EBITDA is different than EBITDA (as such term is defined in its Credit Facility and Subordinated Credit Facility) utilized for financial covenant calculations and also may differ from the definition of EBITDA or Adjusted EBITDA used by other companies and therefore may not be comparable to similarly titled measures used by other companies. Adjusted EBITDA, as well as adjusted operating income (loss), net income (loss) attributable to common shareholders and net income (loss) per diluted common share, as presented in the tables, are Non-GAAP measures. These Non-GAAP measures are frequently requested by investors and analysts. The Company believes that investors and analysts may use these Non-GAAP measures along with other information contained in its SEC filings, including GAAP measures, in assessing its performance and comparability of its results with other companies. The Company’s Non-GAAP measures reflect the GAAP measures as reported, adjusted for certain items as described herein and also excludes the effects of the Company’s outstanding convertible preferred stock. These Non-GAAP financial measures have limitations as an analytical tool as they exclude the financial impact of transactions necessary to conduct its business, such as the granting of equity compensation awards, and are not intended to be an alternative to financial measures prepared in accordance with GAAP. These measures are adjusted as described in the reconciliation of GAAP to Non-GAAP measures in the tables presented herein, but these adjustments should not be construed as an inference that all of these adjustments or costs are unusual, infrequent or non-recurring. Non-GAAP financial measures should be considered in addition to, and not as a substitute for or superior to, financial measures determined in accordance with GAAP. Investors are advised to carefully review the GAAP financial results that are disclosed in the Company’s SEC filings. As the Company has not provided future Non-GAAP financial guidance or targets, there is no need to reconcile its business outlook to the most directly comparable GAAP measures. Furthermore, even if guidance or targets had been provided, items such as stock-based compensation, adjustments to the provision for income taxes, amortization of intangibles and interest expense, which are specific items that impact these measures, have not yet occurred, are out of the Company’s control, or cannot be predicted at this time. For example, quantification of stock-based compensation expense requires inputs such as the number of shares granted and market price that are not currently ascertainable. Accordingly, reconciliations to the Non-GAAP forward looking metrics would not be available without unreasonable effort and such unavailable reconciling items could significantly impact the Company’s financial results. Reconciliations of GAAP consolidated results to the corresponding Non-GAAP measures are shown in the tables below (numbers and per share amounts in the tables may not foot due to rounding). Non-GAAP results reflect Non-GAAP provisions for (benefits from) income taxes based on year-to-date results, as adjusted for the Non-GAAP reconciling items included in the tables below. The Company evaluates its Non-GAAP effective income tax rate on an ongoing basis, and it can change from time to time. The Company’s Non-GAAP effective income tax rate can differ materially from its GAAP effective income tax rate. * Per share amounts may not foot due to rounding. View source version on businesswire.com: https://www.businesswire.com/news/home/20260615117993/en/ Contacts Investor Relations Contact Maria [email protected] Media Contacts Jamie [email protected] Longacre Square [email protected]

This article first appeared on GuruFocus. Net Sales: $106 million for Q3 fiscal 2026, down from $126.8 million in Q3 fiscal 2025. Gross Profit: $36.1 million or 34% of net sales, compared to $38.9 million or 30.7% in Q3 fiscal 2025. Operating Loss: $3.1 million in Q3 fiscal 2026, compared to $1.5 million in Q3 fiscal 2025. Adjusted EBITDA: $8.2 million or close to 8% of net sales, compared to $12.6 million in Q3 fiscal 2025. Net Bookings: $70.5 million, with a book-to-bill ratio of 0.67. Operating Cash Flow: $6.1 million positive in Q3 fiscal 2026, compared to $2.3 million positive in Q3 fiscal 2025. S&S Net Sales: $50.3 million in Q3 fiscal 2026. Allerium Net Sales: $55.7 million in Q3 fiscal 2026, a decrease of $5.9 million from Q3 fiscal 2025. Allerium Operating Income: $4.4 million in Q3 fiscal 2026. Allerium Adjusted EBITDA: $10.4 million or approximately 19% of segment net sales. Liquidity: Approximately $50 million as of June 12, 2026. Warning! GuruFocus has detected 6 Warning Signs with CMTL. Is CMTL fairly valued? Test your thesis with our free DCF calculator. Release Date: June 15, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Comtech Telecommunications Corp (NASDAQ:CMTL) reported its fifth consecutive quarter of positive operating cash flow, marking a significant turnaround from previous negative cash flow periods. The company successfully executed a strategic transaction by selling its satellite and space business to Gilat for $157.5 million, which will help reduce debt and strengthen its capital structure. Allerium, Comtech's public safety technology segment, is positioned for growth with a focus on next-generation 911 services and AI-enabled capabilities, supported by a strong backlog of $554 million. Comtech has improved its gross profit margin to 34% of net sales, up from 30.7% in the previous year, due to operational discipline and strategic focus on higher-margin products. The company has negotiated favorable amendments to its credit facilities, including suspending certain financial covenants until July 2027, enhancing financial flexibility and removing going concern qualifications. Net sales for the third quarter decreased to $106 million from $126.8 million in the previous year, primarily due to phasing out low-margin revenues in the satellite and space segment. The company reported an operating loss of $3.1 million for the third quarter, compared to a $1.5 million loss in the same period last year. Adjusted EBITDA decreased to $8.2 million from $12.6 million in the previous year, reflecting the absence of a prior year's retroactive billing benefit and increased R&D investments. The book-to-bill ratio for the third quarter was 0.67, indicating lower order intake compared to revenue, which could impact future revenue growth. Allerium's net sales decreased by $5.9 million compared to the previous year, partly due to the absence of a $3 million retroactive billing event that benefited the prior year. Q: Ken, why did Comtech decide to sell the Satellite and Space (S&S) segment now instead of waiting to potentially maximize its value further? A: Kenneth Traub, Executive Chairman of the Board, President, Chief Executive Officer, explained that the decision was based on a strategic evaluation of the company's capital structure and the need to optimize the long-term future of the business. The sale allows Comtech to focus on Allerium's growth prospects and reorient the company's focus towards supporting Allerium's long-term growth. Q: What will Comtech's capital structure look like a year from now, considering the current subordinate debt and convertible preferred stock? A: Kenneth Traub stated that the proceeds from the S&S sale will be used to pay down debt, with 65% going towards the senior term loan and 35% towards subordinated debt. The company anticipates emerging with a clean and healthy capital structure after refinancing the senior debt and addressing the subordinated debt. Q: Will the amendments suspend the debt leverage ratio until July 2027? A: Yes, Kenneth Traub confirmed that the amendments will suspend the debt leverage ratio testing until July 2027, providing additional financial flexibility and helping maintain financial reporting without a going-concern qualification. Q: Can you provide a financial profile of the cybersecurity business that will be retained as part of the S&S segment? A: Kenneth Traub mentioned that the cybersecurity business generates about $20 million in revenue and contributes approximately $3 million in EBITDA. Q: What is the growth profile for Allerium, both in terms of revenue and profitability? A: Jeffery Robertson, President of Allerium Segment, indicated that the growth will be driven by leveraging scale to improve margins and expanding the emergency response workflow. While specific guidance was not provided, the focus is on expanding the total addressable market and growing the business. Q: Is the transaction with Gilat considered a change of control that would trigger any preferred stock obligations? A: Kenneth Traub confirmed that all stakeholders agree the transaction does not constitute a change of control and will not trigger any liquidation preferences in the preferred stock. Q: What percentage of Allerium's revenue is recurring, and how is it expected to grow? A: Jeffery Robertson noted that a significant portion of Allerium's revenue is recurring and is expected to grow as the business shifts towards a more recurring revenue model across all product lines. Q: Are there any recompetes or new opportunities in the market that could drive growth for Allerium? A: Jeffery Robertson highlighted that there are recompetes in the market, and Allerium has strategic competitive advantages, such as being the largest direct provider of next-gen 911 services, which positions it well to win new contracts and expand its market presence. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Comtech Telecommunications Corp.? Here are five stocks we like better. Comtech said it will sell most of its Satellite and Space Communications business to Gilat for $157.5 million, using the proceeds mainly to reduce debt and sharpen its focus on public safety technology through Allerium. The company posted Q3 net sales of $106 million, down from $126.8 million a year earlier, but gross margin improved to 34% as it phased out lower-margin business and streamlined operations. Management said the turnaround is gaining traction, citing a fifth straight quarter of positive operating cash flow and about $50 million of available liquidity, while noting that Allerium revenue was broadly stable excluding a prior-year billing benefit. Why Quantum Computing Inc. Is the Quiet Winner in Quantum Stocks Comtech Telecommunications (NASDAQ:CMTL) said its fiscal third-quarter results reflected continued progress in its turnaround plan, as the company announced an agreement to sell most of its Satellite and Space Communications business to Gilat for $157.5 million and refocus around its public safety technology business, Allerium. Chairman, President and CEO Ken Traub described the transaction as a “defining milestone” for the company and said it followed a broader strategic review process intended to strengthen Comtech’s balance sheet and sharpen its strategic focus. Traub said the company has been executing against a four-part transformation plan centered on operational discipline, positive operating cash flow, strategic alternatives and capital structure improvements. → Viasat's Orbiting Profits: Space Force Jackpot? “Comtech is today a dramatically improved company,” Traub said, citing a streamlined cost structure and improved execution. He said the company reported its fifth consecutive quarter of positive operating cash flow and maintained approximately $50 million of available liquidity. Traub said the sale of most of the Satellite and Space Communications segment would do more than generate cash and reduce debt. He said it would allow Comtech to align its organization around Allerium, which provides public safety and emergency communications technologies. → What to Expect From Q2 Earnings as Tech Strength Broadens Allerium’s portfolio includes Next Generation 911 call handling, location-based services, messaging, data management and AI-enabled capabilities, according to management. Traub said the company plans to execute a transition plan over the next several months while awaiting regulatory approval for the Gilat transaction. “Upon closing, our transition to Allerium will mark the beginning of an exciting new chapter,” Traub said, adding that Comtech expects to focus investment and innovation on public safety technologies as the market shifts from traditional voice-based systems toward data-centric communications and real-time coordination. → Alphabet's Most Overlooked Division Just Had a Big Week Jeff Robertson, President of Allerium, said public safety response is moving beyond voice toward data, real-time decision-making and more complex coordination. He said Allerium is positioned across the emergency response ecosystem, from device location to systems, networks and data that support emergency assistance. CFO Michael Bondi said Comtech reported third-quarter net sales of $106 million, down from $126.8 million in the prior-year quarter. The decline reflected the company’s decision to phase out certain low- or no-margin revenues in the Satellite and Space Communications segment. Gross profit was $36.1 million, or 34% of net sales, compared with $38.9 million, or 30.7% of net sales, a year earlier. Bondi said the higher gross margin reflected changes in product mix, operational improvements, streamlined product lines and lower cost structures. Comtech reported an operating loss of $3.1 million, compared with an operating loss of $1.5 million in the prior-year period. Bondi said the quarter included $4.6 million of amortization of intangibles, $2.4 million of restructuring costs and $1.2 million of non-cash stock-based compensation amortization. Excluding those items, consolidated operating income would have been $5.1 million, or 4.8% of net sales, he said. Adjusted EBITDA was $8.2 million, or close to 8% of net sales, compared with $12.6 million a year earlier. Bondi noted that the prior-year period benefited from a $3 million retroactive billing event in Allerium that did not recur. Net bookings were $70.5 million, producing a book-to-bill ratio of 0.67, compared with $71 million and a book-to-bill ratio of 0.56 in the prior-year period. Operating cash flow was positive $6.1 million, compared with positive $2.3 million a year earlier. Satellite and Space Communications net sales were $50.3 million in the quarter, down from the prior year as Comtech moved away from certain low-margin and working-capital-intensive revenues, including the VSAT Satellite Systems and Services contract. Segment operating income was $1.6 million, compared with $2.7 million a year earlier. Adjusted EBITDA was $4.1 million, or about 8% of segment net sales. Daniel Gizinski, President of the Satellite and Space Communications segment, said Gilat is a “natural home” for the business and said the segment’s priorities during the period between signing and closing are to support customers, meet existing commitments and maintain operational discipline. Gizinski said the segment received several notable awards during the quarter, including more than $7 million for rapidly deployable Troposcatter systems for an international government end customer, about $6 million for ongoing training and support of cybersecurity operations for U.S. government customers, and about $4.9 million for antenna-related equipment for a U.S. government end customer. He also said Comtech received more than $10 million in orders after quarter-end to develop and deliver initial prototypes for extremely high frequency, low Earth orbit satellite communications equipment. Allerium reported net sales of $55.7 million, down $5.9 million from the prior-year quarter. Excluding the prior-year $3 million retroactive billing event, Bondi said Allerium revenue was consistent with the year-earlier period. Allerium operating income was $4.4 million, and adjusted EBITDA was $10.4 million, or about 19% of segment net sales. Robertson said third-quarter Allerium awards included about $6 million of additional funding related to a renewal of Next Generation 911 services for a customer in the Midwest, $2 million from a domestic Tier-1 mobile network operator for web-based mobile network services, and more than $1.6 million from another domestic Tier-1 mobile network operator. Bondi said Comtech expects net cash proceeds from the sale of most of the Satellite and Space business to be approximately $143 million to $145 million. Under existing credit facilities, 65% of the net proceeds will be used to prepay most of the company’s senior secured credit facility, while 35% will be used to prepay subordinated debt, beginning with the subordinated priority term loan. Comtech also amended its credit facility and subordinated credit facility on June 14, 2026, further suspending testing of the net leverage ratio, fixed charge coverage ratio and minimum EBITDA covenants until the four-quarter period ending July 31, 2027. During the question-and-answer session, Traub said all stakeholders agreed that the Gilat transaction is not a change-of-control event and does not trigger liquidation preferences in the preferred stock. He also said Comtech will retain cyber operations and a small services business with about $20 million in revenue and approximately $3 million of EBITDA contribution. Traub said the company expects to emerge with “a really clean and healthy capital structure” after applying proceeds and addressing remaining debt. Robertson said Allerium’s future growth will depend in part on using scale to improve margins and expanding its role in emergency response workflows. Comtech Telecommunications Corporation (NASDAQ:CMTL), founded in 1969 and headquartered in Melville, New York, is a leading global provider of advanced communications solutions. The company designs, develops, and deploys equipment, systems, and services that enable secure and reliable transmission of voice, video, and data. Over its history, Comtech has built a reputation for innovation across satellite communications, wireless data systems, and public safety networks, serving both commercial and government customers worldwide. Comtech operates through two primary business segments: Commercial Solutions and Government Solutions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Comtech Telecommunications Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for June 2026.

CHANDLER, Ariz., June 12, 2026--(BUSINESS WIRE)--June 12, 2026-- Comtech Telecommunications Corp. (NASDAQ: CMTL) ("Comtech" or the "Company"), a global communications technology leader, today announced that it plans to release its third quarter fiscal 2026 operating results before the market opens on Monday, June 15, 2026. At 8:30 a.m. ET that day, Comtech’s leadership team will hold a conference call to discuss the Company’s third quarter fiscal 2026 results, operations and business trends. A real-time webcast of the call will be available to the public at the investor relations section of the Comtech web site at www.comtech.com. Alternatively, investors can access the conference call by dialing (833) 354-6854 (primary) or (785) 838-9343 (alternate) and using the conference I.D. "Comtech." A replay of the call will also be available by dialing (800) 839-3012 or (402) 220-7232 through Monday, June 29, 2026. About Comtech Comtech Telecommunications Corp. delivers trusted mission-critical communications solutions used by military forces, government agencies, public safety organizations, mobile network operators and communities around the world. With nearly 60 years of global communications technology leadership, Comtech provides secure, resilient systems proven to perform in the world’s most demanding environments. Through advanced satellite and space communications systems and Allerium’s Next Generation 9-1-1 emergency services and location-intelligence platforms, Comtech delivers reliable connectivity across orbit, network and ground to keep essential missions, services and communities connected when it matters most. For more information, please visit comtech.com. Forward-Looking Statements Certain information in this press release contains statements that are forward-looking in nature and involve certain significant risks and uncertainties. Actual results and performance could differ materially from such forward-looking information. The Company’s Securities and Exchange Commission filings identify many such risks and uncertainties. Any forward-looking information in this press release is qualified in its entirety by the risks and uncertainties described in such Securities and Exchange Commission filings. View source version on businesswire.com: https://www.businesswire.com/news/home/20260612081887/en/ Contacts Investor Relations ContactMaria [email protected] Media ContactsJamie [email protected] Longacre Square [email protected]

Broadcom Inc. (AVGO) came out with quarterly earnings of $2.44 per share, beating the Zacks Consensus Estimate of $2.4 per share. This compares to earnings of $1.58 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +1.82%. A quarter ago, it was expected that this chipmaker would post earnings of $2.03 per share when it actually produced earnings of $2.05, delivering a surprise of +0.99%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Broadcom Inc., which belongs to the Zacks Electronics - Semiconductors industry, posted revenues of $22.19 billion for the quarter ended April 2026, surpassing the Zacks Consensus Estimate by 0.68%. This compares to year-ago revenues of $15 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Broadcom Inc. shares have added about 39.1% since the beginning of the year versus the S&P 500's gain of 11.2%. While Broadcom Inc. has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Broadcom Inc. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.15 on $27.43 billion in revenues for the coming quarter and $11.41 on $101.88 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Semiconductors is currently in the top 22% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the broader Zacks Computer and Technology sector, Comtech Telecommunications (CMTL), has yet to report results for the quarter ended April 2026. This communications company is expected to post quarterly loss of $0.27 per share in its upcoming report, which represents a year-over-year change of -50%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Comtech Telecommunications' revenues are expected to be $110.21 million, down 13.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Broadcom Inc. (AVGO) : Free Stock Analysis Report Comtech Telecommunications Corp. (CMTL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

It has been about a month since the last earnings report for Comtech Telecommunications (CMTL). Shares have added about 1.9% in that time frame, underperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Comtech due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Comtech Telecommunications Corp. before we dive into how investors and analysts have reacted as of late. Comtech Reports Narrower-Than-Expected Q2 Loss Despite Lower Revenues Key Highlights • Revenue: $106.8M in the fiscal second quarter, down 15.6% YoY from $126.6M. • GAAP EPS: Net loss was 68 cents per share vs a net loss of 76 loss a year ago. • Non-GAAP EPS: Net loss was 18 cents per share vs a net loss of 35 cents a year ago. • Gross margin: 33.9% vs 26.7% (up 720 bps YoY). • Adjusted EBITDA: $9.1M vs $2.9M. • Segment revenue: S&S $50.6M (-31.3% YoY); Allerium $56.2M (+6.2% YoY). • Bookings/backlog: Net bookings $175.4M (+120.9% YoY), consolidated book-to-bill 1.64x; funded backlog $731.6M and revenue visibility approximately $1.1B. • Cash flow: Operating cash flow $4.9M vs $(0.2) M; fourth consecutive quarter of positive operating cash inflows. • Operating loss: $(1.2) M vs $(10.3) M. Drivers and Bridge Total revenues for the reported quarter declined to $106.8 million from $126.6 million in the year-earlier quarter and missed the Zacks Consensus Estimate of $114 million. Net sales fell as the company exited low-margin, working-capital-intensive S&S work and faced timing delays from the U.S. government shutdown. Despite lower revenue, gross margin expanded due to better product mix and operational initiatives, lifting adjusted EBITDA to $9.1M. GAAP net loss for the quarter was 68 cents per share compared with a net loss of 76 loss a year ago. Non-GAAP net loss was 18 cents per share compared with a net loss of 35 cents a year ago. The non-GAAP loss was narrower than the Zacks Consensus Estimate of a loss of 30 cents. Segment Performance • Satellite & Space (S&S): Sales declined to $50.6M as legacy VSAT/GFSR/troposcatter work was phased out and some orders delayed; S&S delivered $2.5M operating income vs $1.2M a year ago, aided by cost reductions and mix improvement. Book-to-bill for S&S was 0.68x. Management reiterated production ramps for next-gen modems in the second half of fiscal 2026 and EDIM later in the year. • Allerium: Sales rose to $56.2M with operating income increasing to $5.5M from $3.4M. Book-to-bill was 2.51x, driven by a multi-year Tier-1 telecom extension (over $107.0M incremental funding booked in the second quarter) and continued cloud migration and recurring revenue focus; the Mira platform is slated to launch in the imminent future. Orders, Backlog, and Visibility Consolidated bookings totaled $175.4M, lifting book-to-bill to 1.64x and reflecting Allerium wins and select satellite demand. Funded backlog was $731.6M at January 31, 2026, down modestly YoY but up sequentially from July 31, 2025; revenue visibility stayed near $1.1B supported by funded backlog and unfunded contract value. Balance Sheet and Cash Flow Liquidity was $49.9M at quarter-end, including $32.8M cash and $19.6M undrawn revolver capacity. Total borrowings under credit facilities remained elevated. The company generated $4.9M of operating cash flow in the quarter and has suspended covenant testing through the four quarters ending January 31, 2027, providing runway to execute transitions and modem ramps. Management Commentary and Outlook Management attributed some S&S softness to the temporary U.S. government shutdown but emphasized the pivot to higher-margin S&S offerings and NG911 cloud platforms. The Chandler consolidation is expected to be substantially complete in fiscal 2026 with roughly $3.0M in recurring annualized savings. No quantitative guidance was issued, although overall expectations were reiterated for the second half of the fiscal with modem production ramps and late-year EDIM starts, which should improve margins and cash conversion if executed. Street models show quarterly losses through at least January 2027 and revenue roughly in the low-$110M range per quarter, making successful second-half ramps the primary catalyst to re-rate estimates higher. Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions. At this time, Comtech has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock has a score of A on the value side, putting it in the top quintile for value investors. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Comtech has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Comtech Telecommunications Corp. (CMTL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

CHANDLER, Ariz., March 16, 2026--(BUSINESS WIRE)--March 16, 2026-- Comtech Telecommunications Corp. (NASDAQ: CMTL) ("Comtech" or the "Company"), a global communications technology leader, today reported financial results for its second quarter ended January 31, 2026. Ken Traub, Chairman, President and CEO, stated: "Comtech continued on its positive trajectory of improvement, as we delivered our fourth consecutive quarter of positive operating cash flow and ended the quarter with approximately $50 million of total liquidity. With net bookings of $175 million in the quarter, we have achieved a book-to-bill ratio of 1.64x, increased our backlog to $732 million and maintained our revenue visibility at approximately $1.1 billion. As previously disclosed, we have streamlined our product lines and are more selective in the customer orders we accept. As a result of these deliberate decisions, as well as the temporary impact of the U.S. government shutdown, consolidated net sales decreased from $127 million in the second quarter of fiscal 2025 to $107 million this past quarter. But importantly, we increased gross profit from $34 million to $36 million, increased our gross profit percentage from 27% to 34% and increased Adjusted EBITDA from $2.9 million to $9.1 million. These improvements are due to the initiatives we have implemented to enhance operational efficiency, reduce the cost structure and focus our product development and sales efforts on strategic, higher operating margin products. As a result of our improved performance and stronger financial position, we continue to see increased support and enthusiasm from current and prospective customers, vendors and employees." Consolidated Financial Results Net sales of $106.8 million Gross profit of 33.9% Operating loss of $1.2 million and net loss attributable to common shareholders of $20.2 million Adjusted EBITDA (a Non-GAAP financial measure) of $9.1 million, or 8.6% of net sales Net bookings of $175.4 million, representing a book-to-bill ratio of 1.64x Funded backlog of $731.6 million and revenue visibility of approximately $1.1 billion GAAP cash flows provided by operations of $4.9 million Total liquidity at quarter end of $49.9 million Second Quarter Fiscal 2026 Results Commentary Consolidated Consolidated net sales were $106.8 million, a decrease of 15.6% compared to $126.6 million reported in the second quarter of fiscal 2025. As anticipated, the decline in net sales in the Satellite and Space Communications ("S&S") segment primarily reflects the Company’s decision to phase out and eliminate certain low margin and working capital intensive revenues, as well as the impact of the recent U.S. government shutdown. Examples include contracts for services, including the Very Small Aperture Terminal ("VSAT") Satellite Systems and Services contract and the Global Field Service Representative ("GFSR") contract, as well as legacy troposcatter related products and services. As part of this repositioning, S&S is pursuing sales of innovative, higher-margin solutions, such as digital common ground modems, network solutions and rapidly deployable multi-path radios ("MPRs"). Allerium reported higher net sales in all three of its product areas compared to the prior year period. Consolidated gross profit was $36.2 million, or 33.9% of consolidated net sales, an increase from $33.7 million, or 26.7% of consolidated net sales, reported in the second quarter of fiscal 2025. The year-over-year improvement in consolidated gross profit, both in dollars and as a percentage of net sales, reflects overall product mix changes and improved operational and financial performance as a result of the Company’s transformation initiatives to, among other things, enhance operational efficiency, streamline product lines with a focus on strategic, higher operating margin products and reduce cost structures. The improvement in the Company’s quarterly gross profit percentage builds upon the improving quarterly trend achieved throughout fiscal 2025 and the first quarter of fiscal 2026. Consolidated operating loss was $1.2 million, compared to an operating loss of $10.3 million in the second quarter of fiscal 2025. The improvement from the second quarter of fiscal 2025 is primarily the result of higher gross profit, both in dollars and as a percentage of consolidated net sales, and lower selling, general and administrative expenses, including lower restructuring costs, no proxy solicitation costs and lower amortization of stock-based compensation, offset in part by higher CEO transition costs that included a net benefit from the recovery of certain legal related expenses in the prior year period. Operating loss in the second quarter of fiscal 2026 reflects $5.0 million of amortization of intangibles, $1.6 million of restructuring costs (of which $0.7 million and $0.9 million related to the S&S and Unallocated segments, respectively), $0.4 million of amortization of stock-based compensation and $0.3 million of CEO transition costs. Excluding such items, consolidated operating income for this past quarter would have been $6.2 million, or 5.8% of consolidated net sales. Consolidated net loss attributable to common stockholders was $20.2 million, compared to a net loss attributable to common stockholders of $22.4 million in the second quarter of fiscal 2025. In addition to those items described above, and as more fully discussed in the Company’s SEC filings, the more recent period included $6.5 million of net dividends related to the Company’s Convertible Preferred Stock, compared to $26.4 million of net deemed contributions in the prior year period. Consolidated Adjusted EBITDA (a Non-GAAP financial measure) was $9.1 million, compared to $2.9 million in the second quarter of fiscal 2025, representing an increase of 214%. The year-over-year improvement in Adjusted EBITDA reflects the improvement in operating income described above and the Non-GAAP reconciliations described in the appendix. Consolidated net bookings were $175.4 million, an increase of 120.9% compared to the second quarter of fiscal 2025. Consolidated net bookings include over $107.0 million of incremental funding toward a multi-year contract extension, valued in excess of $130.0 million and awarded to Comtech’s Allerium segment by a domestic Tier 1 mobile network operator. The book-to-bill ratio in the second quarter of fiscal 2026 was 1.64x, compared to 0.63x in the second quarter of fiscal 2025. As part of the Company’s transformation plan, it has refocused and prioritized its product development and sales efforts to eliminate certain low-margin revenue and target higher-margin opportunities in which it has greater differentiation and to optimize cash flow. Consolidated backlog was $731.6 million as of January 31, 2026, compared to $763.8 million as of January 31, 2025 and $672.1 million as of July 31, 2025. Revenue visibility, measured as the sum of funded backlog and the total unfunded value of certain multi-year contracts, was approximately $1.1 billion at the end of the second quarter. GAAP cash flows provided by operations were $4.9 million, an improvement from the second quarter of fiscal 2025 cash flows used in operations of $0.2 million. This is Comtech’s fourth consecutive quarter of positive operating cash flows and reflects improved operating income and favorable changes in networking capital requirements, due primarily to improved accountability and process disciplines, as well as the timing of and progress toward completion on contracts accounted for over time, including related shipments, billings and collections. Operating cash flows in the second quarter of fiscal 2026 include aggregate net cash payments for interest and taxes of $4.9 million, compared to $5.6 million in the second quarter of fiscal 2025. Operating cash flows for the second quarter of fiscal 2026 and 2025 also include $4.2 million and $5.6 million, respectively, in aggregate net cash payments for restructuring costs, including severance, proxy solicitation costs and CEO transition costs. Satellite and Space Communications ("S&S") Segment S&S net sales were $50.6 million, a decrease of 31.3% compared to the second quarter of fiscal 2025. As anticipated, the decline in net sales in the S&S segment primarily reflects the Company’s decision to phase out and eliminate certain low margin and working capital intensive revenues, as well as the impact of the recent U.S. government shutdown. Examples include contracts for services, including its legacy VSAT, GFSR and troposcatter related products and services. As part of this repositioning, S&S is pursuing sales of innovative, higher-margin solutions, such as digital common ground modems, network solutions and rapidly deployable MPRs. S&S operating income was $2.5 million, compared to operating income of $1.2 million in the second quarter of fiscal 2025. S&S operating income in the second quarter of fiscal 2026 was impacted by $0.7 million of restructuring costs to streamline its operations, compared to $1.4 million in the second quarter of fiscal 2025. The year-over-year improvement in S&S operating income primarily reflects lower selling, general and administrative expenses (due to cost reduction actions), partially offset by lower net sales and gross profit, in dollars, and higher research and development expenses. S&S Adjusted EBITDA was $5.4 million in the second quarter of fiscal 2026, compared to $4.7 million in the prior year period. Compared to the prior year period, Adjusted EBITDA reflects those factors discussed above. S&S’ book-to-bill ratio for the second quarter of fiscal 2026 was 0.68x. This ratio compares to 0.64x in the second quarter of fiscal 2025. Key S&S contract awards during the second quarter of fiscal 2026 included: over $5.5 million of funded orders from several international government end customers of Comtech’s troposcatter Family of Systems ("FoS"), including its rapidly deployable MPRs and Modular Transportable Transmission Systems ("MTTS"); incremental funding in excess of $4.5 million for ongoing training and support of complex cybersecurity operations for U.S. government customers; approximately $2.8 million in funded orders for high-frequency band amplifiers for use by a provider of high-speed satellite broadband services and secure networking systems covering military and commercial markets; over $1.8 million in funded orders from the U.S. Navy for non-recurring engineering services; approximately $1.2 million in funded orders for Comtech’s software-defined, satellite communications network applications in support of upgrading domestic air traffic control platforms; in excess of $1.0 million in follow-on orders for high-power amplifiers in support of an electronic warfare and countermeasures space program led by a U.S. government agency; and over $1.0 million in funded orders for products and services related to electrical, electronic and electro-mechanical ("EEE") space parts and components in support of an international end customer’s rocket launch initiatives. In September 2025, as part of the Company’s operational efficiency and cost savings plans, S&S decided to migrate certain production capabilities and operational functions to its manufacturing operations in Chandler, Arizona. This initiative is expected to be substantially completed in fiscal 2026, result in increased manufacturing efficiencies, allow S&S to further optimize its facilities footprint and result in recurring annualized cost savings over time of approximately $3.0 million. In March 2025, S&S also announced the delivery of its first Digital Common Ground 7000 ("DCG-7000") high speed, small form factor, software-defined modems to Lite Coms for integration, interoperability and performance testing across diverse government and commercial satellite communications applications and ground terminal configurations. DCG-7000 modems support DVB-S2X, along with other protected waveforms, and incorporates modern cybersecurity design principles, including integrated Transmission Security ("TRANSEC") for over-the-air transmission. Allerium Segment Allerium net sales were $56.2 million, an increase of 6.2% compared to the second quarter of fiscal 2025. Compared to the prior year period, Allerium experienced higher net sales in all three product areas (location-based, NG-911 and call handling solutions). Such increase reflects the continued adoption of Allerium’s solutions by new customers, as well as the migration of more PSAPs onto Allerium’s NG-911 core services, cloud-based platforms and monthly recurring revenue streams. Allerium operating income was $5.5 million, compared to $3.4 million in the second quarter of fiscal 2025. The year-over-year increase in Allerium’s operating income primarily reflects higher net sales and gross profit (both in dollars and as a percentage of segment net sales) and lower research and development expenses while Allerium evaluates and invests in cloud-based and AI-infused software applications designed to deliver advanced emergency communication platforms to its customers. Such improvement in Allerium’s operating income was offset, in part, by higher selling, general and administrative expenses. Allerium’s Adjusted EBITDA was $11.3 million, compared to $8.9 million in the second quarter of fiscal 2025. Compared to the prior year period, Adjusted EBITDA reflects those factors discussed above. Allerium’s book-to-bill ratio in the second quarter of fiscal 2026 was 2.51x, compared to 0.61x in the prior year period. With strategic wins in the U.S., Canada and Australia, the Company believes its position as a trusted leader in 911, NG-911 and public safety applications positions Allerium increasingly well to deliver similarly sophisticated solutions for other types of emergencies. New emergency requesting devices, such as "wearables," vehicles, smart speakers and AI capable cameras, and new delivery methods, such as through satellite networks, are expected to drive innovation and growth for Allerium within the public safety market over time. Key Allerium contract awards during the second quarter of fiscal 2026 included: over $107.0 million of incremental funding toward a multi-year contract extension, valued in excess of $130.0 million, by Allerium’s largest customer, a leading telecommunications company in the U.S.; in excess of $10.5 million in multi-year funding toward the deployment of a new NG-911 system in the south central region of the U.S.; approximately $3.0 million of funding from a domestic Tier 1 mobile network operator for advanced mobile location center software features; over $2.0 million of incremental funding for certain upgrades to an existing NG-911 customer’s statewide platform; approximately $2.0 million of funding related to an existing customer’s renewal of backend 911 communication-related services ultimately provided to other telecom providers, VoIP companies and messaging platforms; in excess of $1.6 million of funding for a new multi-year contract to deploy Allerium’s NG-911 Guardian call handling solutions in a Canadian province; approximately $1.6 million of incremental funding from a domestic Tier 1 mobile network operator for various ESInet and location-based solutions; approximately $1.5 million of funding to provide software engineering services to Allerium’s largest customer in support of new features for wireless communication applications; and in excess of $1.0 million of funding related to an existing customer’s renewal of Allerium’s NG-911 Guardian call handling solution in a Northeastern state. Litigation Update As previously disclosed, in March 2024, Comtech terminated Ken Peterman, its President and CEO at the time, for Cause. Also, as previously disclosed, Mr. Peterman filed a claim against the Company with the American Arbitration Association ("AAA") claiming he was owed direct contractual damages in excess of $6 million and consequential damages in excess of $35 million. Comtech has defended itself and filed counterclaims against Mr. Peterman seeking damages for breach of fiduciary duty, malicious prosecution, abuse of process, breach of contract and defamation. In January 2026, Mr. Peterman's counsel wrote to the AAA with two motions, (i) voluntarily withdrawing Mr. Peterman's claims against Comtech, and (ii) seeking dismissal of Comtech's counterclaims against Mr. Peterman. In January 2026, the AAA granted Mr. Peterman’s motion to withdraw all of his claims against Comtech in the arbitration, but rejected Mr. Peterman's motion for dismissal of Comtech's counterclaims. Comtech’s counterclaims are still pending against Mr. Peterman. Capital Structure and Liquidity As previously disclosed, Comtech amended its Credit Facility and Subordinated Credit Facility on October 17, 2024, March 3, 2025 and July 21, 2025 to, among other things, suspend testing of the Net Leverage Ratio and Fixed Charge Coverage Ratio covenants until the four-quarter period ending on January 31, 2027. Such amendments, combined with the Company’s significantly improved operational and financial performance, led to Comtech’s enhanced financial flexibility and removal of its going concern disclosures in its fiscal 2025 Form 10-K filed in November 2025. At January 31, 2026 and March 13, 2026: Total outstanding borrowings under Comtech’s Credit Facility was $124.7 million; of such amount, $7.6 million was drawn on the Revolver Loan (reflecting repayments of $5.0 million on each of December 1, 2025 and January 8, 2026); Total outstanding borrowings under Comtech’s Subordinated Credit Facility were $102.8 million and $103.4 million, respectively, including interest paid-in-kind or accrued on the $35.0 million subordinated priority term loan; such amounts do not include the $32.5 million Make-Whole Amount associated with the $65.0 million portion of the Subordinated Credit Facility (pursuant to the terms of the Subordinated Credit Facility, as of both January 31, 2026 and March 13, 2026, the Make-Whole Amount percentage for each tranche within the $65.0 million of principal is 50.0%); The liquidation preference of the Company’s outstanding convertible preferred stock was $213.4 million and $215.7 million, respectively (excluding potential increases in the liquidation preference and other obligations that could be triggered by, among other things, breaches of covenants and/or asset sales resulting in a change in control of the Company); and The Company’s available sources of liquidity totaled $49.9 million and $38.0 million, respectively, which includes qualified cash and cash equivalents of $30.2 million and $18.4 million, respectively, and the remaining available portion of the Revolver Loan of $19.6 million as of each date. Conference Call and Webcast Information Comtech will host a conference call with investors and analysts on Monday, March 16, 2026, at 4:30 pm Eastern Time. A live webcast of the conference call will be accessible on the Investor Relations section of Comtech’s website at www.comtech.com/investors. Alternatively, investors can access the conference call by dialing (800) 225-9448 (primary) or (203) 518-9708 (alternate) and using the conference I.D. of "Comtech." A replay will be available through Monday, March 30, 2026, by dialing (800) 839-1198 or (402) 220-0458. About Comtech Comtech Telecommunications Corp. delivers trusted mission-critical communications solutions used by military forces, government agencies, public safety organizations, mobile network operators and communities around the world. With nearly 60 years of global communications technology leadership, Comtech provides secure, resilient systems proven to perform in the world’s most demanding environments. Through advanced satellite and space communications systems and Allerium’s Next Generation 9-1-1 emergency services and location-intelligence platforms, Comtech delivers reliable connectivity across orbit, network and ground to keep essential missions, services and communities connected when it matters most. For more information, please visit www.comtech.com. Cautionary Note Regarding Forward-Looking Statements Certain information in this press release contains, and oral statements made by its representatives from time to time may contain, forward-looking statements. Forward-looking statements can be identified by words such as: "anticipate," "believe," "continue," "could," "estimate," "expect," "future," "goal," "outlook," "intend," "likely," "may," "plan," "potential," "predict," "project," "seek," "should," "strategy," "target," "will," "would," and similar references to future periods, or the negative of those words and expressions, as well as statements in future tense. Forward-looking statements include, among others, statements regarding its expectations for its strategic alternatives process, its expectations for further portfolio-shaping opportunities, its expectations for other operational initiatives, its expectations for completing further financing initiatives, its future performance and financial condition, the plans and objectives of its management and its assumptions regarding such future performance, financial condition, and plans and objectives that involve certain significant known and unknown risks and uncertainties and other factors not under its control which may cause its actual results, future performance and financial condition, and achievement of its plans and objectives of its management to be materially different from the results, performance or other expectations implied by these forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. Forward-looking information is based on information available at the time and/or its good faith belief with respect to future events, and is subject to risks and uncertainties that are difficult to predict and many of which are outside of its control. Factors that could cause actual results to differ materially from current expectations include, among other things: the outcome and effectiveness of the aforementioned strategic alternatives process, further portfolio-shaping opportunities, other operational initiatives, and the completion of further financing activities; its ability to access capital and liquidity; its ability to implement changes in its executive leadership; the possibility that the expected benefits from its strategic activities will not be fully realized, or will not be realized within the anticipated time periods; the risk that acquired businesses will not be integrated successfully; impacts from, and uncertainties regarding, future actions that may be taken by activist stockholders; the possibility of disruption from acquisitions or dispositions, making it more difficult to maintain business and operational relationships or retain key personnel; the risk that it will be unsuccessful in implementing a tactical shift in its Satellite and Space Communications segment away from bidding on large commodity service contracts and toward pursuing contracts for its niche products and solutions with higher margins; the nature and timing of its receipt of, and its performance on, new or existing orders that can cause significant fluctuations in net sales and operating results; the timing and funding of government contracts; the timing and amount of adjustments to gross profits on long-term contracts; risks associated with international sales; rapid technological change; evolving industry standards; new product announcements and enhancements or rebranding; changing customer demands and/or procurement strategies and its ability to scale opportunities and deliver solutions to current and prospective customers; changes and uncertainty in prevailing economic and political conditions (including financial and capital market conditions), including as a result of military conflicts or any tariff, trade restrictions or similar matters; impact of government shutdowns; changes to government procurement practices; changes in the price of oil in global markets; changes in prevailing interest rates and foreign currency exchange rates; risks associated with its legal proceedings, customer claims for indemnification, and other similar matters; risks associated with its obligations under its credit facilities; risks associated with its large contracts; risks associated with supply chain disruptions; and other factors described in this and its other filings with the Securities and Exchange Commission ("SEC"). However, these risks are not the only risks that it faces. Additional risks and uncertainties, not currently known to the Company or that do not currently appear to be material, may also materially adversely affect its business, financial condition and/or operating results in the future. The Company describes risks and uncertainties that could cause actual results and events to differ materially in the "Risk Factors" (Part I, Item 1A), "Management’s Discussion and Analysis of Financial Condition and Results of Operations" (Part II, Item 7) and "Quantitative and Qualitative Disclosures about Market Risk" (Part II, Item 7A) sections of its Annual Report on Form 10-K, filed with the SEC on November 10, 2025, as the same may be updated from time to time in the Company's various filings with the SEC. The Company does not intend to update or revise publicly any forward-looking statements, whether because of new information, future events, or otherwise, except as required by law. Appendix: Condensed Consolidated Statements of Operations (Unaudited) Condensed Consolidated Balance Sheets (Unaudited) Condensed Consolidated Statements of Cash Flows (Unaudited) Use of Non-GAAP Financial Measures Use of Non-GAAP Financial Measures To provide investors with additional information regarding the Company’s financial results, this release contains "Non-GAAP financial measures" under the rules of the SEC. The Company’s Adjusted EBITDA is a Non-GAAP measure that represents earnings (loss) before interest, income taxes, depreciation, amortization of intangibles, impairment of long-lived assets, including goodwill, amortization of cost to fulfill assets, amortization of stock-based compensation, CEO transition costs, change in fair value of warrants and derivatives, proxy solicitation costs, restructuring costs, strategic emerging technology costs (for next-generation satellite technology), and write-off of deferred financing costs and debt discounts, and in the recent past, acquisition plan expenses, change in fair value of the convertible preferred stock purchase option liability, COVID-19 related costs, facility exit costs, strategic alternatives expenses and other and loss on business divestiture. These items, while periodically affecting its results, may vary significantly from period to period and may have a disproportionate effect in a given period, thereby affecting the comparability of results. Although closely aligned, the Company’s definition of Adjusted EBITDA is different than EBITDA (as such term is defined in its Credit Facility and Subordinated Credit Facility) utilized for financial covenant calculations and also may differ from the definition of EBITDA or Adjusted EBITDA used by other companies and therefore may not be comparable to similarly titled measures used by other companies. Adjusted EBITDA, as well as adjusted operating income (loss), net income (loss) attributable to common shareholders and net income (loss) per diluted common share, as presented in the tables, are Non-GAAP measures. These Non-GAAP measures are frequently requested by investors and analysts. The Company believes that investors and analysts may use these Non-GAAP measures along with other information contained in its SEC filings, including GAAP measures, in assessing its performance and comparability of its results with other companies. The Company’s Non-GAAP measures reflect the GAAP measures as reported, adjusted for certain items as described herein and also excludes the effects of the Company’s outstanding convertible preferred stock. These Non-GAAP financial measures have limitations as an analytical tool as they exclude the financial impact of transactions necessary to conduct its business, such as the granting of equity compensation awards, and are not intended to be an alternative to financial measures prepared in accordance with GAAP. These measures are adjusted as described in the reconciliation of GAAP to Non-GAAP measures in the tables presented herein, but these adjustments should not be construed as an inference that all of these adjustments or costs are unusual, infrequent or non-recurring. Non-GAAP financial measures should be considered in addition to, and not as a substitute for or superior to, financial measures determined in accordance with GAAP. Investors are advised to carefully review the GAAP financial results that are disclosed in the Company’s SEC filings. As the Company has not provided future Non-GAAP financial guidance or targets, there is no need to reconcile its business outlook to the most directly comparable GAAP measures. Furthermore, even if guidance or targets had been provided, items such as stock-based compensation, adjustments to the provision for income taxes, amortization of intangibles and interest expense, which are specific items that impact these measures, have not yet occurred, are out of the Company’s control, or cannot be predicted at this time. For example, quantification of stock-based compensation expense requires inputs such as the number of shares granted and market price that are not currently ascertainable. Accordingly, reconciliations to the Non-GAAP forward looking metrics would not be available without unreasonable effort and such unavailable reconciling items could significantly impact the Company’s financial results. Reconciliations of GAAP consolidated results to the corresponding Non-GAAP measures are shown in the tables below (numbers and per share amounts in the tables may not foot due to rounding). Non-GAAP results reflect Non-GAAP provisions for (benefits from) income taxes based on year-to-date results, as adjusted for the Non-GAAP reconciling items included in the tables below. The Company evaluates its Non-GAAP effective income tax rate on an ongoing basis, and it can change from time to time. The Company’s Non-GAAP effective income tax rate can differ materially from its GAAP effective income tax rate. View source version on businesswire.com: https://www.businesswire.com/news/home/20260316411605/en/ Contacts Investor Relations Contact Maria Ceriello 631-962-7115 [email protected] Media Contacts Jamie Clegg 480-532-2523 [email protected] Longacre Square Partners [email protected]