Aviat Networks (AVNW) Q3 2026 earnings summary

Executive summary

• Q3 FY2026 revenue was $100.0 million, down 11.2% year-over-year, with adjusted EBITDA of $4.4 million and a GAAP net loss of $2.1 million; nine-month revenue was $318.8 million, nearly flat year-over-year.

• Non-GAAP net income for Q3 was $0.7 million, and non-GAAP EPS was $0.06.

• Growth initiatives in MDU, utilities, and BEAD are progressing, with significant revenue expected in FY 2027.

• North America saw modest nine-month revenue growth, while international revenue declined due to project timing and geopolitical disruptions.

• Integration of recent acquisitions (4RF, NEC) is expanding the product portfolio and market reach.

Financial highlights

• Q3 revenue declined from $112.6 million in the prior year to $100.0 million; nine-month revenue was $318.8 million, nearly flat year-over-year.

• Q3 GAAP gross margin was 29.3% (down from 34.9%); non-GAAP gross margin was 29.4%.

• Q3 GAAP operating income was $0.9 million; non-GAAP operating income was $3.0 million.

• Q3 GAAP net loss per share was $0.16; non-GAAP net income per share was $0.06.

• Cash and cash equivalents at quarter-end were $78.1 million; net debt was $26.1 million.

Outlook and guidance

• FY 2026 revenue guidance is $428–$440 million; adjusted EBITDA guidance is $35–$40 million.

• Q4 is expected to be seasonally strong, with normalization of demand and recovery in EBITDA margins.

• MDU opportunity expected to contribute eight-figure revenue in FY 2027, with more precise guidance forthcoming.

• BEAD program purchase orders anticipated to begin mid-to-late 2026, with the largest ramp in 2027.

• Management expects existing cash, available credit, and customer collections to be sufficient for at least the next 12 months.