# Comtech Reports FY2026 Revenue of $249.6 Million and Agrees to Sell Satellite Unit

- URL: https://stocks.freetheai.org/news/comtech-reports-fy2026-revenue-of-249-6-million-and-agrees-to-sell-satellite-4f6db4
- Published: 2026-10-14T20:43:00Z
- Category: earnings; sentiment: mixed; impact: medium
- Symbols: [NASDAQ:CMTL](https://stocks.freetheai.org/symbols/NASDAQ-CMTL)
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Comtech Telecommunications Corp. (CMTL) reported fiscal 2026 net sales of $249.6 million and adjusted EBITDA from continuing operations of $20.6 million. Gross margin expanded to 38.9%, helping deliver $37.4 million in consolidated operating cash flow and leaving $61.3 million in year-end liquidity. Alongside its results, the company reached a definitive agreement to sell most of its Satellite and Space Communications unit for $157.5 million in cash.

The asset sale represents a significant corporate transformation aimed at debt reduction and operational focus. Comtech logged an operating loss from continuing operations of $18.2 million for fiscal 2026. Proceeds from a $10.0 million advance have already been applied toward debt prepayment. Moving forward, the business will center on its Allerium public-safety platform and cyber training services, supported by a funded backlog of $520.4 million and estimated revenue visibility of $862.0 million.

Looking ahead, key operational metrics will depend on how quickly Comtech completes the divestiture and achieves its restructuring goals. Management anticipates $13.0 million to $15.0 million in transition costs, mostly spanning fiscal 2027 and 2028, but projects annual savings of $16.0 million to $18.0 million after full implementation. Investors will watch contract momentum in public safety services and the rollout of new product offerings.

## Key points

- Comtech posted net sales of $249.6 million and an operating loss of $18.2 million for fiscal 2026.
- Adjusted EBITDA from continuing operations reached $20.6 million as gross margin expanded to 38.9%.
- The company agreed to sell most of its Satellite and Space Communications business for $157.5 million in cash.
- Proceeds from a $10.0 million advance were used to pay down existing debt.
- Post-sale operations will focus on Allerium public safety communications and cyber training services.

## Questions and answers

### What were Comtech's fiscal 2026 financial results?

Comtech reported fiscal 2026 net sales of $249.6 million, an operating loss of $18.2 million, and adjusted EBITDA from continuing operations of $20.6 million.

### Why is Comtech selling its Satellite and Space Communications business?

Comtech is selling the unit for $157.5 million to reduce debt and focus its business on Allerium public-safety communications and cyber training.

### What is Comtech's projected cost savings from the sale?

After transition costs of $13.0 million to $15.0 million, Comtech expects annual cost savings of $16.0 million to $18.0 million after about one year.