Gilat Satellite Networks Ltd. completed an oversubscribed private placement that raised approximately $98.8 million in net proceeds after fees. The transaction involved the issuance of 8,888,889 ordinary shares at $11.25 each, a 7.9 % discount to the 10‑day VWAP and a 12.15 % increase in the company’s equity base.
The proceeds are earmarked for general corporate purposes, with a focus on potential strategic acquisitions and continued investment in Gilat’s multi‑orbit connectivity strategy. The company’s defense and commercial divisions are expected to benefit from the additional capital, supporting the expansion of its SkyEdge IV platform and the pursuit of new defense contracts.
Gilat’s recent financial performance underscores the strategic value of the new capital. In Q3 2025, the company reported revenue of $117.7 million, up 58 % year‑over‑year, and non‑GAAP net income of $11.8 million, or $0.19 per diluted share, compared with $8.1 million and $0.14 in Q3 2024. The growth was driven by strong demand in both defense and commercial segments, with multi‑million dollar orders from the U.S. Department of Defense and the Israeli Ministry of Defense, and major wins for its commercial SkyEdge IV platform.
CEO Adi Sfadia highlighted the company’s execution and cash generation, noting that “Gilat delivered another strong quarter with significant growth and continued successful execution whilst generating robust cash from operations.” He added that “Gilat Defense achieved new milestones with multi‑million dollar orders… while our Commercial division recorded major wins,” underscoring the confidence in the company’s dual‑segment strategy.
Investors reacted negatively to the announcement, citing dilution concerns from the issuance of new shares at a discount. The placement is limited to Israeli investors and excludes U.S. persons, which may have further constrained investor participation. Despite the short‑term market reaction, the capital infusion is expected to strengthen Gilat’s balance sheet and provide the financial flexibility needed to pursue its multi‑orbit strategy and potential acquisitions.
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