Financial Data and Key Metrics Changes - Third quarter revenues reached $117.7 million, a 58% increase year over year from $74.6 million in Q3 2024 [21] - Adjusted EBITDA was $15.6 million, representing a 46% increase compared to $10.7 million in Q3 2024 [25] - GAAP net income for Q3 2025 was $8.1 million, or diluted income per share of $0.14, compared to $6.8 million or $0.12 per share in Q3 2024 [24] Business Line Data and Key Metrics Changes - Commercial segment revenues were $73 million, up 116% from $33.8 million in Q3 2024, driven by in-flight connectivity [21] - Defense segment revenues decreased to $24.1 million from $31 million in Q3 2024, attributed to the transition from mature programs to new initiatives [22] - Revenues from Peru were $20.6 million, more than double the $9.8 million reported in Q3 2024, driven by new upgrade projects [23] Market Data and Key Metrics Changes - Gilat Defense received over $14 million in orders from the U.S. Army and Department of Defense, expanding its presence in key defense programs [10] - The company secured $42 million in orders from a leading global satellite operator for its SkyH4 platform, primarily for in-flight connectivity [12] - Gilat was awarded over $60 million in orders for its Stellar Blue's Sidewinder ESA IFC terminal, with production ramping up [14] Company Strategy and Development Direction - The company is focusing on integrating AI into its network management system to enhance operational efficiency and customer insights [8] - Gilat is actively engaging in defense markets across North America, Europe, and Asia Pacific, leveraging partnerships to deliver comprehensive solutions [10] - The company is narrowing its full-year revenue guidance to between $445 million and $455 million, reflecting improved visibility and business momentum [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in capturing additional opportunities as global demand for secure satellite communication rises [11] - The company anticipates continued growth in the defense segment as new programs scale up [22] - Management noted that demand across key markets is accelerating, with strategic initiatives delivering measurable results [17] Other Important Information - The company raised $66 million from institutional investors, strengthening its cash position [8] - Total cash and cash equivalents as of September 30, 2025, were $155 million, significantly up from $5.5 million on June 30, 2025 [27] - The company expects to introduce additional AI capabilities as it progresses with its roadmap development [8] Q&A Session Summary Question: What is the trajectory for Stellar Blue and expected gross margin improvements? - Management indicated that production is ramping up, and significant improvements in gross margin are expected next year as cost reduction efforts begin to bear fruit [34][35] Question: Are the recent $85 million orders in Peru incremental to ongoing contracts? - The $85 million awards are for upgrades and additional projects, not renewals of existing contracts [38] Question: Any impact from the recent shutdown on bookings? - Management acknowledged delays in new orders but does not expect significant impacts on guidance and forecasts [41] Question: How many Stellar Blue Sidewinder aircraft are currently online? - There are slightly more than 350 aircraft connected, with positive feedback on performance [48] Question: What applications are associated with the recent SkyEdge four orders? - The main application for the SkyEdge four orders is in-flight connectivity, aimed at increasing global deployment [50] Question: What is the timing for factory installations with Boeing? - Certification for installations is expected by the end of the year, with full installations anticipated by mid-next year [56] Question: What is the status of the backlog for Stellar Blue? - The backlog remains stable, with expectations to end the year with a higher backlog than at the beginning [65]