CMTL earnings analysis
What we found in CMTL's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Comtech Telecommunications Corp. reported Q3 2026 earnings with revenues of $107 million, a decrease from $111 million in Q2 2026, marking a continued decline year-over-year. The company posted a diluted EPS of -0.68 for Q2 and -0.28 expected for Q3, reflecting persistent operating challenges despite stable gross margins.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Stable Gross Margins
- Gross margin improved to 33.9% in Q2 2026, up from 33.1% in Q1 2026.
- Improved Operating Cash Flow
- Operating cash flow for nine months ended April 30, 2026, was $19.1 million, compared to cash used in operations of $19.7 million for the prior year.
- Inventory Reduction Efforts
- The company successfully reduced inventory levels driven by enhanced operational efficiency.
- Debts Slightly Decreased
- Total outstanding borrowings under Credit Facility slightly dropped to $119.7 million as of April 30, 2026.
- Initiated Sale of Business Segment
- Recent agreement to sell Satellite and Space Communications business for $157.5 million, potentially increasing operational focus.
- Net Cash Used in Financing Activities Reduced
- Net cash used was $17.5 million, compared to $22.3 million, indicating improving liquidity management.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Continued Operating Losses
- Operating losses totaled $13.0 million in Q2 2026, a sign of ongoing financial stress.
- Dependence on Sale Completion
- Pending sale of S&S segment introduces operational uncertainty until closure.
- Weak Internal Controls
- Material weaknesses in internal controls identified, raising risk of misstatements in financial reporting.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.68
- Gross margin
- 33.9%
- Operating margin
- -1.2%
What they said about what is next.
Outlook deferred to earnings press release / call.
The filing reads worse than the one before it.
What came before.
- 10-Q · March 16, 2026
- Comtech reported Q2 net sales of $106,761,000 and gross profit of $36,223,000 (≈33.9% gross margin), with an operating loss of $1,236,000, improved versus prior-year quarter operating loss of $10,257,000. The company…
- 10-Q · June 9, 2025
- Comtech reported Q3 net sales of $126,787,000, essentially flat year-over-year, with gross profit of $38,945,000 (≈30.7% margin) and an operating loss that narrowed to $(1,532,000). Balance sheet actions and new…
- 10-Q · January 13, 2025
- Comtech reported revenue of $115,800,000 for the quarter ended October 31, 2024, down from $151,911,000 a year earlier, with gross profit falling to $14,516,000 (12.5% margin) and a GAAP operating loss of $129,170,000…
- 10-Q · December 7, 2023
- Comtech reported quarterly revenue of $151,911,000, up $20,772,000 (15.8%) versus $131,139,000 a year ago, and produced operating income of $2,086,000 versus an operating loss of $(9,724,000) in the prior year period.…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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