Photo: Comtech

Comtech Telecommunications ended its fiscal year 2025 on firmer financial footing, dropping the “going concern” disclosure about its ability to continue operations without additional funds. 

CEO Ken Trab pointed to the success of the transformation initiative he started at Comtech after taking over in January of this year. Comtech reported two quarters in a row of positive operating cash flow, its first since fiscal year 2023. The company also improved gross margins from 12.5% in the first quarter to 31.2% in the fourth quarter of FY 2025. Comtech’s fiscal year 2025 ended on July 31.

“I am proud to report how much stronger Comtech is today, financially, operationally and strategically,” Traub said. “We expect the company’s significantly improved operational and financial health to be reassuring to our current and prospective customers, vendors, employees, investors and partners.” 

In addition, Comtech is rebranding its Terrestrial & Wireless Networks segment into Allerium. It will still be a Comtech segment, under the new name. This business operates in the public safety space, including Next Generation 911. This week, Allerium received a multi-year contract worth more than $130 million with a Tier 1 wireless service provider to deliver a suite of critical 911 applications and services. 

2025 Full Year Results 

Despite the improvements in operating cash flow and margins, Comtech’s sales were still down in FY 2025 compared to 2024. The company reported net sales of $499.5 million for fiscal 2025, a 7.6% decline from 2024.

Company-wide, operating loss for FY 2025 was $139.1 million, compared to a $79.9 million operating loss in FY 2024. This year’s results were impacted by $187.5 million of net charges. 

The Satellite and Space segment saw a 17% drop in sales in FY 2025 compared to last year. The company said lower sales in 2025 were due to the wind down of legacy troposcatter contracts, lower sales of space components and antennas and the divestiture of its high-power solid-state amplifiers product line in November 2023.

Despite the lower sales in 2025, Traub told investors the S&S business has gone through a successful turnaround this year, eliminating a number of products and rolling out a new product road map. 

“We are prepared to meet increasing demand for technology to support 5G non-terrestrial networks and sovereign defense networks with the launch of our next-generation platforms. We are already seeing traction from the launch of our digital common ground platform, including additional early production prototype order agreements,” Traub said. 

Comtech will have some impact from the government shutdown in its FY 2026. 

“Performance in the first quarter of fiscal 2026, particularly in our S&S segment, is expected to reflect the impacts of timing, delays in orders, net sales and cash collections as a result of the U.S. government shutdown as well as the decision to phase out and eliminate certain low-margin revenue,” CFO Michael Bondi told investors.