Top-line performance remains weak with a 16.4% year-over-year revenue contraction in 2026Q3, while operating margins remain suppressed at -0.3% due to persistent overhead inefficiencies.
| Metric | TTM | Jul'25 | Jul'24 | Jul'23 | Jul'22 | Jul'21 | Jul'20 | Jul'19 | Jul'18 | Jul'17 | Jul'16 | Jul'15 | Jul'14 | Jul'13 | Jul'12 | Jul'11 | Jul'10 | Jul'09 | Jul'08 | Jul'07 | Jul'06 | Jul'05 | Jul'04 | Jul'03 | Jul'02 | Jul'01 | Jul'00 | Jul'99 | Jul'98 | Jul'97 | Jul'96 |
|---|
| Sales/Revenue | 454.16M | 499.53M | 540.4M | 549.99M | 486.24M | 581.7M | 616.72M | 671.8M | 570.59M | 550.37M | 411M | 307.29M | 347.15M | 319.8M | 425.07M | 612.38M | 778.21M | 586.37M | 531.63M | 445.68M | 391.51M | 307.89M | 223.39M | 174.03M | 119.36M | 135.93M | 66.44M | 37.9M | 30.1M | 24.7M | 20.9M |
| Revenue Growth % | -8.31% | -7.56% | -1.74% | 13.11% | -16.41% | -5.68% | -8.2% | 17.74% | 3.67% | 33.91% | 33.75% | -11.48% | 8.55% | -24.77% | -30.59% | -21.31% | 32.72% | 10.3% | 19.28% | 13.84% | 27.16% | 37.83% | 28.36% | 45.81% | -12.19% | 104.58% | 75.31% | 25.91% | 21.86% | 18.18% | 26.67% |
| Cost of Goods Sold | 319.12M | 371.65M | 383.22M | 365.53M | 306.4M | 367.74M | 389.88M | 424.36M | 346.65M | 332.18M | 239.77M | 168.41M | 195.71M | 178.97M | 241.56M | 371.33M | 507.61M | 345.47M | 296.69M | 252.39M | 232.21M | 180.52M | 135.86M | 114.32M | 78.78M | 87.33M | 44.02M | 24.9M | 20.1M | 16.6M | 13.7M |
| COGS % of Revenue | - | 74.4% | 70.91% | 66.46% | 63.01% | 63.22% | 63.22% | 63.17% | 60.75% | 60.36% | 58.34% | 54.8% | 56.38% | 55.96% | 56.83% | 60.64% | 65.23% | 58.92% | 55.81% | 56.63% | 59.31% | 58.63% | 60.82% | 65.69% | 66% | 64.24% | 66.26% | 65.7% | 66.78% | 67.21% | 65.55% |
| Gross Profit | 135.04M | 127.87M | 157.18M | 184.46M | 179.84M | 213.96M | 226.83M | 247.44M | 223.94M | 218.19M | 171.24M | 138.88M | 151.44M | 140.83M | 183.51M | 241.05M | 270.6M | 240.9M | 234.94M | 193.29M | 159.3M | 127.37M | 87.53M | 59.72M | 40.58M | 48.6M | 22.42M | 13M | 10M | 8.1M | 7.2M |
| Gross Margin % | 29.73% | 25.6% | 29.09% | 33.54% | 36.99% | 36.78% | 36.78% | 36.83% | 39.25% | 39.64% | 41.66% | 45.2% | 43.62% | 44.04% | 43.17% | 39.36% | 34.77% | 41.08% | 44.19% | 43.37% | 40.69% | 41.37% | 39.18% | 34.31% | 34% | 35.76% | 33.74% | 34.3% | 33.22% | 32.79% | 34.45% |
| Gross Profit Growth % | - | -18.64% | -14.79% | 2.57% | -15.95% | -5.68% | -8.33% | 10.49% | 2.64% | 27.42% | 23.29% | -8.29% | 7.53% | -23.26% | -23.87% | -10.92% | 12.33% | 2.54% | 21.54% | 21.34% | 25.07% | 45.51% | 46.58% | 47.17% | -16.52% | 116.78% | 72.47% | 30% | 23.46% | 12.5% | 35.85% |
| Operating Expenses | 134.28M | 266.97M | 237.07M | 199.12M | 213.59M | 282.26M | 211.66M | 203.37M | 188.87M | 193.16M | 150.54M | 104.81M | 107.54M | 106.34M | 132.23M | 145.75M | 153.37M | 163.97M | 128.15M | 108.37M | 95.37M | 75.3M | 53.99M | 42.91M | 35.02M | 35.45M | 16.85M | 10.1M | 8.5M | 7.5M | 6.8M |
| OpEx % of Revenue | - | 53.44% | 43.87% | 36.2% | 43.93% | 48.52% | 34.32% | 30.27% | 33.1% | 35.1% | 36.63% | 34.11% | 30.98% | 33.25% | 31.11% | 23.8% | 19.71% | 27.96% | 24.11% | 24.32% | 24.36% | 24.46% | 24.17% | 24.66% | 29.34% | 26.08% | 25.36% | 26.65% | 28.24% | 30.36% | 32.54% |
| Selling, General & Admin | 29.33T | 143.49M | 110.73M | 120M | 114.86M | 111.8M | 117.13M | 128.64M | 113.92M | 116.08M | 94.93M | 62.68M | 67.15M | 63.27M | 87.11M | 94.14M | 99.88M | 100.17M | 85.97M | 73.31M | 67.07M | 51.82M | 36.02M | 28.05M | 22.51M | 22.71M | 12.06M | 6.6M | 6M | 5.4M | 5M |
| SG&A % of Revenue | - | 28.72% | 20.49% | 21.82% | 23.62% | 19.22% | 18.99% | 19.15% | 19.97% | 21.09% | 23.1% | 20.4% | 19.34% | 19.78% | 20.49% | 15.37% | 12.83% | 17.08% | 16.17% | 16.45% | 17.13% | 16.83% | 16.12% | 16.11% | 18.86% | 16.7% | 18.15% | 17.41% | 19.93% | 21.86% | 23.92% |
| Research & Development | 5.22T | 17.41M | 24.08M | 48.63M | 52.53M | 49.15M | 52.18M | 56.41M | 53.87M | 54.26M | 42.19M | 35.92M | 34.11M | 36.75M | 38.49M | 43.52M | 46.19M | 50.01M | 40.47M | 32.47M | 25.83M | 21.16M | 15.91M | 12.83M | 11.04M | 10.19M | 2.64M | 2M | 1.3M | 1M | 700K |
| R&D % of Revenue | - | 3.48% | 4.46% | 8.84% | 10.8% | 8.45% | 8.46% | 8.4% | 9.44% | 9.86% | 10.27% | 11.69% | 9.83% | 11.49% | 9.05% | 7.11% | 5.94% | 8.53% | 7.61% | 7.29% | 6.6% | 6.87% | 7.12% | 7.37% | 9.25% | 7.5% | 3.98% | 5.28% | 4.32% | 4.05% | 3.35% |
| Other Operating Expenses | 0 | 106.08M | 102.26M | 30.49M | 46.2M | 121.31M | 42.35M | 18.32M | 21.07M | 22.82M | 13.41M | 6.21M | 6.29M | 6.33M | 6.64M | 8.09M | 7.29M | 13.79M | 1.71M | 2.59M | 2.46M | 2.33M | 2.07M | 2.04M | 1.47M | 2.55M | 2.15M | 1.5M | 1.2M | 1.1M | 1.1M |
| Operating Income | 763K | -139.1M | -79.89M | -14.66M | -33.75M | -68.3M | 15.17M | 41.41M | 35.08M | 25.09M | 20.83M | 34.08M | 43.9M | 34.49M | 51.28M | 107.8M | 103.98M | 76.93M | 106.79M | 84.92M | 63.93M | 52.06M | 32.6M | 16.81M | 7.72M | 13.15M | 5.57M | 2.9M | 1.5M | 600K | 400K |
| Operating Margin % | 0.17% | -27.85% | -14.78% | -2.67% | -6.94% | -11.74% | 2.46% | 6.16% | 6.15% | 4.56% | 5.07% | 11.09% | 12.65% | 10.78% | 12.06% | 17.6% | 13.36% | 13.12% | 20.09% | 19.05% | 16.33% | 16.91% | 14.59% | 9.66% | 6.47% | 9.68% | 8.38% | 7.65% | 4.98% | 2.43% | 1.91% |
| Operating Income Growth % | - | -74.11% | -444.95% | 56.57% | 50.58% | -550.1% | -63.35% | 18.05% | 39.8% | 20.43% | -38.86% | -22.37% | 27.28% | -32.74% | -52.43% | 3.67% | 35.17% | -27.96% | 25.75% | 32.83% | 22.79% | 59.7% | 93.99% | 117.78% | -41.34% | 136.18% | 92.07% | 93.33% | 150% | 50% | 130.77% |
| EBITDA | 23.78T | -105.58M | -46.58M | 18.66M | -2.04M | -37.9M | 47.33M | 71.65M | 69.81M | 62.27M | 44.08M | 40.69M | 57.82M | 49.82M | 69.71M | 120.06M | 137.51M | 117.06M | 128.88M | 103M | 78.86M | 60.25M | 41.28M | 23.06M | 12.95M | 20.57M | 7.72M | 4.4M | 2.6M | 1.7M | 1.5M |
| EBITDA Margin % | 5235555.7% | -21.14% | -8.62% | 3.39% | -0.42% | -6.52% | 7.67% | 10.67% | 12.23% | 11.31% | 10.72% | 13.24% | 16.65% | 15.58% | 16.4% | 19.61% | 17.67% | 19.96% | 24.24% | 23.11% | 20.14% | 19.57% | 18.48% | 13.25% | 10.85% | 15.13% | 11.62% | 11.61% | 8.64% | 6.88% | 7.18% |
| EBITDA Growth % | 20228095.92% | -126.67% | -349.64% | 1013.71% | 94.61% | -180.07% | -33.95% | 2.65% | 12.11% | 41.26% | 8.32% | -29.62% | 16.05% | -28.54% | -41.94% | -12.69% | 17.47% | -9.18% | 25.13% | 30.6% | 30.89% | 45.98% | 78.96% | 78.14% | -37.06% | 166.5% | 75.43% | 69.23% | 52.94% | 13.33% | 314.29% |
| D&A (Non-Cash Add-back) | 23.78T | 33.52M | 33.31M | 33.32M | 31.71M | 30.4M | 32.16M | 30.25M | 34.73M | 37.18M | 23.25M | 6.62M | 13.92M | 15.33M | 18.44M | 12.27M | 33.53M | 40.13M | 22.09M | 18.07M | 14.93M | 8.19M | 8.67M | 6.26M | 5.23M | 7.42M | 2.15M | 1.5M | 1.1M | 1.1M | 1.1M |
| EBIT | 14.23M | -109.58M | -77.45M | -14.66M | -32.04M | -68.16M | 15.36M | 38.19M | 35.08M | 25.02M | -442K | 34.08M | 43.9M | 35.66M | 52.87M | 110.22M | 105.19M | 79.67M | 120.86M | 99.13M | 73.17M | 56.14M | 33.54M | 16.81M | 5.55M | 13.15M | 5.57M | 2.9M | 1.5M | 600K | 400K |
| Net Interest Income | -46.52M | -45.8M | -22.83M | -16.19M | -4.33M | -6.68M | -5.86M | -9.28M | -10.45M | -11.56M | -7.62M | -74K | -5.39M | -7M | -7.24M | -5.99M | -6.68M | -3.66M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 703K | 139K | 190K | 0 | 0 | 68K | 134K | 405K | 913K | 1.17M | 1.59M | 2.42M | 1.21M | 2.74M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 46.52M | 45.8M | 22.83M | 16.19M | 5.03M | 6.82M | 6.05M | 9.28M | 10.45M | 11.63M | 7.75M | 479K | 6.3M | 8.16M | 8.83M | 8.41M | 7.89M | 3.17M | 2.68M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -23.54M | -16.28M | -20.39M | -16.19M | -3.32M | -6.68M | -5.86M | -12.5M | -10.45M | -11.56M | -7.62M | -74K | -5.39M | -7M | -7.24M | -5.99M | -6.68M | -429K | 11.38M | 11.48M | 6.56M | 1.39M | -504K | -2.53M | -2.58M | -2.55M | -9.29M | -200K | -200K | 0 | 0 |
| Pretax Income | -22.77M | -155.38M | -100.28M | -30.85M | -37.08M | -74.98M | 9.31M | 28.91M | 24.63M | 25.48M | -8.19M | 34M | 38.51M | 27.49M | 44.04M | 101.8M | 97.3M | 76.5M | 118.17M | 96.4M | 70.49M | 53.46M | 32.1M | 14.28M | 780K | 10.6M | -3.72M | 2.7M | 1.3M | 600K | 400K |
| Pretax Margin % | -5.01% | -31.11% | -18.56% | -5.61% | -7.62% | -12.89% | 1.51% | 4.3% | 4.32% | 4.63% | -1.99% | 11.07% | 11.09% | 8.6% | 10.36% | 16.62% | 12.5% | 13.05% | 22.23% | 21.63% | 18% | 17.36% | 14.37% | 8.2% | 0.65% | 7.8% | -5.6% | 7.12% | 4.32% | 2.43% | 1.91% |
| Income Tax | 2.28M | -80K | -295K | -3.95M | -4.02M | -1.5M | 2.29M | 3.87M | -5.14M | 9.65M | -454K | 10.76M | 13.36M | 9.69M | 11.62M | 33.91M | 36.67M | 26.94M | 41.74M | 31.19M | 25.22M | 16.8M | 10.27M | 4.57M | -368K | 3.89M | 85K | -3.8M | 200K | 100K | 300K |
| Effective Tax Rate % | -10.02% | 0.05% | 0.29% | 12.8% | 10.85% | 2% | 24.6% | 13.38% | -20.88% | 37.89% | 5.54% | 31.64% | 34.68% | 35.23% | 26.39% | 33.31% | 37.69% | 35.22% | 35.32% | 32.35% | 35.78% | 31.43% | 32% | 32% | -47.18% | 36.67% | -2.29% | -140.74% | 15.38% | 16.67% | 75% |
| Net Income | -25.06M | -155.3M | -99.98M | -26.9M | -33.05M | -73.48M | 7.02M | 25.04M | 29.77M | 15.83M | -7.74M | 23.25M | 25.15M | 17.81M | 32.42M | 67.89M | 60.63M | 47.52M | 76.43M | 65.21M | 45.27M | 36.66M | 21.83M | 9.71M | 1.15M | 6.71M | -3.8M | 5.3M | 1.1M | 500K | 100K |
| Net Margin % | -5.52% | -31.09% | -18.5% | -4.89% | -6.8% | -12.63% | 1.14% | 3.73% | 5.22% | 2.88% | -1.88% | 7.56% | 7.25% | 5.57% | 7.63% | 11.09% | 7.79% | 8.1% | 14.38% | 14.63% | 11.56% | 11.91% | 9.77% | 5.58% | 0.96% | 4.94% | -5.73% | 13.98% | 3.65% | 2.02% | 0.48% |
| Net Income Growth % | 89.58% | -55.33% | -271.71% | 18.62% | 55.02% | -1146.72% | -71.97% | -15.88% | 88.09% | 304.54% | -133.29% | -7.58% | 41.23% | -45.06% | -52.26% | 11.98% | 27.57% | -37.82% | 17.21% | 44.06% | 23.5% | 67.93% | 124.81% | 745.73% | -82.9% | 276.5% | -171.77% | 381.82% | 120% | 400% | 108.33% |
| Net Income (Continuing) | -25.06M | -155.3M | -99.98M | -26.9M | -33.05M | -73.48M | 7.02M | 25.04M | 29.77M | 15.83M | -7.74M | 23.25M | 25.15M | 17.81M | 32.42M | 67.89M | 60.63M | 49.56M | 76.43M | 65.21M | 45.27M | 36.66M | 21.83M | 9.71M | 1.15M | 6.71M | -3.8M | 6.5M | 1.1M | 500K | 100K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.83 | -6.95 | -4.70 | -0.96 | -1.25 | -2.86 | 0.28 | 1.03 | 1.24 | 0.67 | -0.46 | 1.42 | 1.37 | 0.97 | 1.42 | 2.22 | 1.91 | 1.73 | 2.76 | 2.42 | 1.72 | 1.42 | 0.92 | 0.53 | 0.07 | 0.38 | -0.30 | 0.51 | 0.12 | 0.05 | 0.01 |
| EPS Growth % | 77.99% | -47.87% | -389.58% | 23.2% | 56.29% | -1121.43% | -72.82% | -16.94% | 85.07% | 245.65% | -132.39% | 3.65% | 41.24% | -31.69% | -36.04% | 16.23% | 10.4% | -37.32% | 14.05% | 40.7% | 21.13% | 54.35% | 73.58% | 694.6% | -82.45% | 226.67% | -158.82% | 325% | 124.72% | - | 106.36% |
| EPS (Basic) | - | -6.95 | -4.70 | -0.96 | -1.25 | -2.86 | 0.28 | 1.04 | 1.25 | 0.68 | -0.46 | 1.43 | 1.58 | 1.05 | 1.62 | 2.53 | 2.14 | 1.81 | 3.17 | 2.81 | 1.99 | 1.69 | 1.03 | 0.57 | 0.07 | 0.40 | -0.30 | 0.56 | 0.12 | 0.06 | 0.01 |
| Diluted Shares Outstanding | 30.03M | 29.41M | 28.8M | 28M | 26.51M | 25.68M | 24.9M | 24.3M | 24.04M | 23.49M | 16.97M | 16.42M | 20.91M | 23.06M | 25.99M | 32.62M | 34.07M | 29.79M | 28.28M | 27.6M | 27.32M | 27.06M | 24.78M | 18.29M | 17.56M | 17.8M | 12.74M | 10.29M | 9.37M | 9.37M | 11.24M |
| Basic Shares Outstanding | 30.03M | 29.41M | 28.8M | 28M | 26.51M | 25.68M | 24.8M | 24.12M | 23.82M | 23.43M | 16.82M | 16.2M | 15.94M | 16.96M | 20M | 26.84M | 28.27M | 26.32M | 24.14M | 23.18M | 22.75M | 21.67M | 21.18M | 17.17M | 16.79M | 16.53M | 12.74M | 9.32M | 8.78M | 8.65M | 11.24M |
| Dividend Payout Ratio | - | - | - | - | - | - | 142.73% | 39.09% | 32.04% | 119.24% | - | 83.57% | 74.26% | 106.01% | 69.8% | 29.66% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Persistent operating margin erosion
As reported in recent financial filings, Comtech’s revenue has experienced a sustained decline, with the most recent quarter showing a 16.4% year-over-year contraction to $106.0 million, reflecting ongoing challenges in converting government project pipelines into consistent, realized hardware and service revenue streams across its primary segments.
The consistent negative growth trend suggests that the company is struggling to offset the lumpy nature of its government hardware deployments with stable service revenue. Investors should monitor whether this deceleration is a function of delayed federal procurement cycles or a fundamental loss of competitive positioning in its core satellite and public safety markets.
Based on the provided income statement data, Comtech’s gross margins have fluctuated significantly, reaching a low of 12.5% in 2025Q1 before recovering to 29.7% in 2026Q3, indicating that the company’s cost structure remains highly sensitive to project-specific execution and potential inefficiencies in its manufacturing operations.
The volatility in gross margins implies that the company lacks the pricing power necessary to pass through input cost increases in its fixed-price government contracts. This instability suggests that operational leverage remains elusive, as the company has yet to demonstrate a consistent ability to scale its high-margin service offerings relative to its hardware production costs.
According to the quarterly income statements, Comtech has struggled to maintain positive operating income, with the most recent period reporting a loss of $310.0K, highlighting a persistent inability to scale operating expenses efficiently against a declining revenue base and high fixed overhead requirements.
The failure to achieve consistent operating profitability suggests that the company's current SG&A and R&D spending levels are disproportionate to its revenue generation capacity. This indicates that management may need to undertake significant structural cost rationalization to prevent further erosion of shareholder value in the coming quarters.
As evidenced by the wide swings in net income, ranging from a $33.9 million gain in 2025Q3 to a $48.7 million loss in 2025Q2, Comtech’s bottom-line performance appears heavily influenced by non-operating items and potential accounting adjustments that complicate the assessment of true underlying operational health.
The disconnect between operating income and net income suggests that investors should exercise caution when relying on headline EPS figures, which are frequently distorted by non-recurring charges. The presence of significant stock-based compensation, particularly the $2.7T figure in 2026Q3, warrants further investigation into the company's long-term incentive alignment and potential dilution risks.
While some market participants may view Comtech as an undervalued asset due to its specialized troposcatter and NG911 intellectual property, the persistent negative operating margins and declining revenue suggest that the company faces significant execution risks that could continue to depress its valuation relative to peers.
The bull case relies on a successful pivot to software-defined architectures, yet the current financials provide little evidence of this transition yielding bottom-line results. Investors should consider the possibility that the company’s specialized certifications are insufficient to overcome the structural headwinds of its high-cost manufacturing base and volatile government procurement environment.
Quick answers to the most common questions about buying CMTL stock.
For fiscal year 2025, Comtech Telecommunications Corp. (CMTL) reported total revenue of $499.5M. This represents a 2290.1% increase compared to $20.9M in 1996.
Comtech Telecommunications Corp. (CMTL) reported a net loss of $155.3M for the fiscal year ending 2025.
Comtech Telecommunications Corp. (CMTL) reported an operating income of $-139.1M, resulting in an operating profit margin of -27.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Comtech Telecommunications Corp. (CMTL) generated $127.9M in gross profit for the year, representing a gross profit margin of 25.6%. This demonstrates the company's core pricing power and production efficiency.