Q4 2025 revenue of $137 million (+75% YoY); full-year 2025 revenue of $451.7 million (+48% YoY, +6% organic) (CEO, CFO)
Q4 adjusted EBITDA of $18.2 million (+50% YoY); full-year adjusted EBITDA of $53.2 million (+26% YoY) (CEO, CFO)
Commercial segment Q4 revenue of $75.1 million (+103% YoY, primarily IFC/Stellar Blu); Defense segment Q4 revenue of $33.3 million (+14% YoY); Peru segment Q4 revenue of $28.5 million (vs. $11.8M in Q4 '24) (CFO)
GAAP gross margin Q4 was 28% (vs. 40% in Q4 '24) due to Stellar Blu ramp-up and $2.9M amortization of purchased intangibles; non-GAAP gross margin 31% (CFO)
GAAP net income Q4 of $8.8 million ($0.13 diluted EPS) vs. $11.8M ($0.21) in Q4 '24; non-GAAP net income Q4 of $13.4 million ($0.20 diluted EPS) (CFO)
Cash & equivalents + restricted cash + ST deposits at Dec 31, 2025: $185.4 million; net of loans ~$183.4 million; shareholders' equity $500 million (CFO)
Full-year 2025 operating cash flow ~$21 million; Q4 used $6.3 million from operations (CFO)
DSOs (excl. Peru construction receivables) were 88 days (CFO)
Defense: record sales year; Q4 milestone with ~$10 million Earth Observation order for direct downing
Q&A Batch (1-5 of 5)
Q1 — Ryan Koontz
Topic: Defense visibility, IFC linefit roadmap, Peru business cadence
Key points:
Defense: entering a year, 50%–60% of revenues already in backlog; no effect from recent U.S. shutdown; increased budget and traction in U.S., Israel, Europe.
IFC linefit: Boeing certification expected H1 2025, deliveries start Q3; Airbus in initial phases, no revenue expected in 2026.
Peru: awarded upgrade of 4 regional networks in 2025; discussing remaining 2 networks, expects close before Q2 election; large RFPs for terrestrial/satellite connectivity expected in Q1 and Q4.
Mgmt stance: Neutral – Defense visibility good, but IFC linefit timeline varies by OEM; Peru election not seen as canceling RFPs.
Q2 — Sergey Glinyanov
Topic: Defense growth, Earth Observation margin profile, order acceleration
Key points:
Defense revenue grew small year-over-year due to prior U.S. shutdown delays; orders grew >35% year-over-year.
Earth Observation margin profile: 30%–40%, similar to Gilat average.
No explicit Q1 order acceleration vs Q4 mentioned.
Mgmt stance: Neutral – Defense revenue delayed but orders strong; Earth Observation margins in line with company average.
Q3 — Louie Dipalma
Topic: M&A targets, Stellar Blu earnout milestone, revenue/growth, Airbus linefit
Key points:
M&A focus: Defense, U.S. and Europe; targeting companies with revenues $50M–$100M+; accretive as soon as possible; adjacent markets like radar/electronic warfare.
Stellar Blu earnout: did not attain second milestone (achieved slightly above half of $120M backlog target); large order slipped into 2026, expected Q1 or early Q2.
Stellar Blu 2025 revenue: ~$127M (within $120M–$150M range); 2026 expects double-digit growth in unit deliveries.
Airbus linefit: agreement with SES to install Sidewinder at Airbus premises, not yet part of official HBCplus plan.
Mgmt stance: Bullish on M&A – opportunistic, focused on accretive deals; neutral on Stellar Blu – milestone missed but risk mitigated (95%+ availability, 420+ aircraft connected, 500+ delivered in 2025).
Q4 — Christopher Quilty
Topic: Stellar Blu strategic orders, production rate, ESR2030 terminal, backlog
Key points:
Third earn-out: progressing with one unnamed company; requires minimum order commitment ≥$35M with significant gross profit and down payment; may not close by June milestone.
Production: reached 60–70 units/month run rate; Q4 delivered 190 full terminals (record quarter); can increase with small CapEx.
2026 deliveries expected linear across the year.
ESR2030: passed qualifications, production units start H2 2025, dependent on Gogo readiness.
Backlog: year-end at same level as beginning of year, slightly below; expects to cover at least 2027.
Mgmt stance: Neutral – strategic order progress promising but early; production rate adequate; ESR2030 on track; backlog sufficient.
Q5 — Gunther Karger
Topic: High-speed ground transport update
Key points:
China project from ~10 years ago; limited traction since then; some terminals sold for fast trains worldwide but in limited numbers.
Not a main focus currently.
Mgmt stance: Cautious – no significant traction; deprioritized.