Operating margins have compressed to 0.9% in 2026Q3 from 8.3% in 2025Q3, reflecting ongoing difficulties in scaling profitability amidst a 11.2% year-over-year revenue decline.
| Metric | TTM | Jun'25 | Jun'24 | Jun'23 | Jul'22 | Jul'21 | Jul'20 | Jun'19 | Jun'18 | Jun'17 | Jul'16 | Jul'15 | Jun'14 | Jun'13 | Jun'12 | Jul'11 | Jul'10 | Jul'09 | Jun'08 | Jun'07 | Mar'06 | Mar'05 | Mar'04 | Mar'03 | Mar'02 | Mar'01 | Mar'00 | Mar'99 | Mar'98 | Mar'97 | Mar'96 |
|---|
| Sales/Revenue | 434.13M | 434.61M | 408.08M | 344.43M | 302.96M | 302.96M | 238.64M | 243.86M | 242.51M | 241.87M | 268.69M | 335.9M | 346.5M | 471.3M | 444M | 452.1M | 478.9M | 679.9M | 718.4M | 507.9M | 230.89M | 180.3M | 157.35M | 197.7M | 228.84M | 417.66M | 300.5M | 236.5M | 310.49M | 178.34M | 150.42M |
| Revenue Growth % | 0.23% | 6.5% | 18.48% | 13.69% | 0% | 26.95% | -2.14% | 0.56% | 0.26% | -9.98% | -20.01% | -3.06% | -26.48% | 6.15% | -1.79% | -5.6% | -29.56% | -5.36% | 41.45% | 119.97% | 28.06% | 14.59% | -20.41% | -13.61% | -45.21% | 38.99% | 27.06% | -23.83% | 74.1% | 18.56% | -2.1% |
| Cost of Goods Sold | 293.62M | 295.17M | 263.35M | 222.05M | 193.72M | 193.72M | 153.95M | 164.59M | 162M | 166.4M | 206.97M | 255.2M | 260.9M | 331.2M | 312.3M | 324M | 345.5M | 505.5M | 528.2M | 352.2M | 167.3M | 151.4M | 129.69M | 149.16M | 184.53M | 288.87M | 209.65M | 185.49M | 197.05M | 118.78M | 119.92M |
| COGS % of Revenue | - | 67.92% | 64.53% | 64.47% | 63.94% | 63.94% | 64.51% | 67.49% | 66.8% | 68.8% | 77.03% | 75.98% | 75.3% | 70.27% | 70.34% | 71.67% | 72.14% | 74.35% | 73.52% | 69.34% | 72.46% | 83.97% | 82.42% | 75.45% | 80.63% | 69.16% | 69.77% | 78.43% | 63.46% | 66.6% | 79.72% |
| Gross Profit | 140.51M | 139.44M | 144.73M | 122.38M | 109.23M | 109.23M | 84.7M | 79.27M | 80.5M | 75.47M | 61.72M | 80.7M | 85.6M | 140.1M | 131.7M | 128.1M | 133.4M | 174.4M | 190.2M | 155.7M | 63.59M | 28.9M | 27.66M | 48.54M | 44.32M | 128.8M | 90.85M | 51.01M | 113.44M | 59.57M | 30.5M |
| Gross Margin % | 32.37% | 32.08% | 35.47% | 35.53% | 36.06% | 36.06% | 35.49% | 32.51% | 33.2% | 31.2% | 22.97% | 24.02% | 24.7% | 29.73% | 29.66% | 28.33% | 27.86% | 25.65% | 26.48% | 30.66% | 27.54% | 16.03% | 17.58% | 24.55% | 19.37% | 30.84% | 30.23% | 21.57% | 36.54% | 33.4% | 20.28% |
| Gross Profit Growth % | - | -3.66% | 18.26% | 12.04% | 0% | 28.97% | 6.84% | -1.53% | 6.67% | 22.29% | -23.52% | -5.72% | -38.9% | 6.38% | 2.81% | -3.97% | -23.51% | -8.31% | 22.16% | 144.85% | 120% | 4.5% | -43.02% | 9.53% | -65.59% | 41.77% | 78.12% | -55.04% | 90.45% | 95.29% | -21.57% |
| Operating Expenses | 139.37M | 150.01M | 164.13M | 147M | 80.49M | 80.49M | 81.32M | 77.9M | 79.19M | 76.46M | 89.16M | 106.62M | 135.83M | 138.4M | 144.4M | 162.7M | 187.7M | 184.3M | 203.9M | 142.6M | 61.27M | 72.63M | 62.2M | 99.43M | 204.34M | 124.09M | 76.33M | 147.15M | 92.53M | 45.67M | 38.52M |
| OpEx % of Revenue | - | 34.52% | 40.22% | 42.68% | 26.57% | 26.57% | 34.08% | 31.95% | 32.65% | 31.61% | 33.18% | 31.74% | 39.2% | 29.37% | 32.52% | 35.99% | 39.19% | 27.11% | 28.38% | 28.08% | 26.53% | 40.28% | 39.53% | 50.29% | 89.29% | 29.71% | 25.4% | 62.22% | 29.8% | 25.61% | 25.61% |
| Selling, General & Admin | 44.51M | 89.48M | 85.04M | 69.84M | 57.66M | 57.66M | 57.98M | 56.05M | 58.16M | 57.18M | 65.9M | 76M | 88.8M | 95.5M | 98.9M | 104M | 141M | 138.3M | 141.4M | 98.9M | 46.79M | 44.38M | 39.27M | 58.92M | 58.49M | 62.72M | 51.95M | 55.34M | 58.05M | 35.07M | 27.42M |
| SG&A % of Revenue | - | 20.59% | 20.84% | 20.28% | 19.03% | 19.03% | 24.3% | 22.99% | 23.98% | 23.64% | 24.53% | 22.63% | 25.63% | 20.26% | 22.27% | 23% | 29.44% | 20.34% | 19.68% | 19.47% | 20.27% | 24.61% | 24.96% | 29.8% | 25.56% | 15.02% | 17.29% | 23.4% | 18.7% | 19.66% | 18.23% |
| Research & Development | 28.6M | 35.77M | 36.43M | 24.91M | 22.6M | 22.6M | 19.28M | 21.11M | 19.75M | 18.68M | 20.81M | 25.4M | 35.5M | 39.4M | 36M | 40.5M | 41.1M | 40.4M | 46.1M | 39.4M | 14.47M | 16.66M | 17.15M | 14.39M | 18.53M | 24.01M | 24.37M | 24.13M | 19.88M | 10.6M | 11.11M |
| R&D % of Revenue | - | 8.23% | 8.93% | 7.23% | 7.46% | 7.46% | 8.08% | 8.66% | 8.14% | 7.72% | 7.74% | 7.56% | 10.25% | 8.36% | 8.11% | 8.96% | 8.58% | 5.94% | 6.42% | 7.76% | 6.27% | 9.24% | 10.9% | 7.28% | 8.1% | 5.75% | 8.11% | 10.2% | 6.4% | 5.94% | 7.38% |
| Other Operating Expenses | 3M | 24.76M | 42.67M | 52.25M | 238K | 238K | 4.05M | 736K | 1.28M | 589K | 2.46M | 5.22M | 11.53M | 3.5M | 9.5M | 18.2M | 5.6M | 5.6M | 16.4M | 4.3M | 0 | 11.59M | 5.78M | 26.12M | 127.32M | 37.37M | 0 | 67.68M | 14.6M | 0 | 0 |
| Operating Income | 1.14M | -10.57M | -19.4M | -24.62M | 28.75M | 28.75M | 3.38M | 1.37M | 1.32M | -985K | -27.45M | -26M | -50.64M | 6M | -5M | -17M | -54.3M | -9.9M | -7.7M | -3.4M | 2.32M | -36.3M | -29.06M | -50.89M | -160.03M | 4.71M | 14.53M | -96.15M | 19.73M | 13.9M | -8.02M |
| Operating Margin % | 0.26% | -2.43% | -4.75% | -7.15% | 9.49% | 9.49% | 1.42% | 0.56% | 0.54% | -0.41% | -10.21% | -7.74% | -14.62% | 1.27% | -1.13% | -3.76% | -11.34% | -1.46% | -1.07% | -0.67% | 1.01% | -20.13% | -18.47% | -25.74% | -69.93% | 1.13% | 4.83% | -40.65% | 6.35% | 7.79% | -5.33% |
| Operating Income Growth % | - | 45.49% | 21.2% | -185.65% | 0% | 750.95% | 146.93% | 3.87% | 233.71% | 96.41% | -5.56% | 48.66% | -944.07% | 220% | 70.59% | 68.69% | -448.48% | -28.57% | -126.47% | -246.43% | 106.4% | -24.92% | 42.91% | 68.2% | -3499.72% | -67.59% | 115.11% | -587.29% | 41.96% | 273.24% | -391.96% |
| EBITDA | 4.44M | -2.53M | -14.41M | -18.44M | 33.21M | 33.21M | 7.76M | 5.84M | 6.52M | 4.86M | -20.8M | -18.4M | -43.14M | 12.6M | 2.2M | -4.9M | -15.8M | 28.2M | 26M | 36.9M | 9.74M | -24.84M | -19.59M | -40.08M | -139.74M | 22.57M | 31.12M | -70.23M | 33.14M | 19.69M | -1.69M |
| EBITDA Margin % | 1.02% | -0.58% | -3.53% | -5.35% | 10.96% | 10.96% | 3.25% | 2.39% | 2.69% | 2.01% | -7.74% | -5.48% | -12.45% | 2.67% | 0.5% | -1.08% | -3.3% | 4.15% | 3.62% | 7.27% | 4.22% | -13.78% | -12.45% | -20.27% | -61.06% | 5.4% | 10.36% | -29.7% | 10.67% | 11.04% | -1.12% |
| EBITDA Growth % | -65.15% | 82.44% | 21.87% | -155.53% | 0% | 327.66% | 33.05% | -10.44% | 34.21% | 123.34% | -13.03% | 57.35% | -442.41% | 472.73% | 144.9% | 68.99% | -156.03% | 8.46% | -29.54% | 278.85% | 139.21% | -26.81% | 51.13% | 71.32% | -719.12% | -27.47% | 144.31% | -311.92% | 68.33% | 1264.34% | -118.57% |
| D&A (Non-Cash Add-back) | 3.29M | 8.04M | 4.99M | 6.18M | 4.46M | 4.46M | 4.39M | 4.47M | 5.2M | 5.84M | 6.65M | 7.6M | 7.5M | 6.6M | 7.2M | 12.1M | 38.5M | 38.1M | 33.7M | 40.3M | 7.42M | 11.46M | 9.47M | 10.81M | 20.29M | 17.86M | 16.59M | 25.91M | 13.41M | 5.79M | 6.33M |
| EBIT | 23.49M | 9.63M | 19.24M | 21.85M | 28.98M | 28.98M | 7.43M | 1.65M | 2.6M | -555K | -28.44M | -25.57M | -50.16M | 3.2M | -12.7M | -42.5M | -131.8M | -334.4M | -11.3M | -25.6M | 2.32M | -33.72M | -29.55M | 197.7M | -37.7M | 20.07M | 14.53M | -58.41M | 25.58M | 13.9M | -8.02M |
| Net Interest Income | -5.18M | -6.06M | -2.34M | -532K | 0 | 0 | 331K | 165K | 169K | 211K | 148K | -28K | 91K | 0 | -700K | -1.9M | -1.9M | -1.9M | -200K | -500K | -500K | -925K | 886K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 385K | 267K | 198K | 261K | 252K | 360K | 480K | 800K | 600K | 300K | 300K | 900K | 2.4M | 1.8M | 500K | 737K | 886K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 7.03M | 6.06M | 2.34M | 532K | 0 | 0 | 54K | 102K | 29K | 50K | 104K | 388K | 389K | 800K | 1.3M | 2.2M | 2.2M | 2.8M | 2.6M | 2.3M | 1M | 1.66M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 17.35M | 14.15M | 36.31M | 45.93M | 1.69M | 1.69M | 331K | 182K | -51K | 380K | -1.1M | 0 | 91K | -3.6M | -9M | -27.7M | -79.7M | -327.3M | -6.2M | -24.5M | -3.04M | -9.19M | -5.88M | -738K | -7.42M | -10.66M | 645K | 25K | 2.94M | -891K | 115K |
| Pretax Income | 18.5M | 3.58M | 16.91M | 21.31M | 30.43M | 30.43M | 3.71M | 1.55M | 1.27M | -605K | -28.54M | -26M | -50.55M | 2.4M | -14M | -44.7M | -134M | -337.2M | -13.9M | -27.9M | -721K | -45.49M | -34.94M | -51.63M | -167.45M | -5.95M | 15.17M | -96.12M | 22.68M | 13.01M | -7.91M |
| Pretax Margin % | 4.26% | 0.82% | 4.14% | 6.19% | 10.05% | 10.05% | 1.55% | 0.64% | 0.52% | -0.25% | -10.62% | -7.74% | -14.59% | 0.51% | -3.15% | -9.89% | -27.98% | -49.6% | -1.93% | -5.49% | -0.31% | -25.23% | -22.2% | -26.12% | -73.17% | -1.43% | 5.05% | -40.64% | 7.3% | 7.29% | -5.26% |
| Income Tax | 9.48M | 2.23M | 6.15M | 11.14M | 9.28M | 9.28M | 3.45M | -8.19M | -1.04M | 16K | 1.64M | -1.3M | 1.47M | 13.3M | 1.5M | 14.1M | -3.8M | 17.8M | -2M | -6.1M | 1.58M | 455K | 2.13M | -77K | 1.42M | 1.04M | 3.03M | 607K | 3.86M | 1.3M | -1.95M |
| Effective Tax Rate % | 51.28% | 62.5% | 36.35% | 52.29% | 30.47% | 30.47% | 93.07% | -528.26% | -81.83% | -2.64% | -5.73% | 5% | -2.9% | 554.17% | -10.71% | -31.54% | 2.84% | -5.28% | 14.39% | 21.86% | -218.59% | -1% | -6.11% | 0.15% | -0.85% | -17.52% | 20% | -0.63% | 17.01% | 10% | 24.7% |
| Net Income | 9.01M | 1.34M | 10.76M | 10.17M | 21.16M | 21.16M | 257K | 9.74M | 1.84M | -823K | -29.91M | -24.7M | -51.1M | -15M | -24.1M | -90.5M | -130.2M | -355M | -11.9M | -21.8M | -2.3M | -45.95M | -37.07M | -51.55M | -168.87M | -7M | 12.14M | -96.73M | 18.82M | 11.71M | -5.96M |
| Net Margin % | 2.08% | 0.31% | 2.64% | 2.95% | 6.98% | 6.98% | 0.11% | 3.99% | 0.76% | -0.34% | -11.13% | -7.35% | -14.75% | -3.18% | -5.43% | -20.02% | -27.19% | -52.21% | -1.66% | -4.29% | -0.99% | -25.48% | -23.56% | -26.08% | -73.79% | -1.67% | 4.04% | -40.9% | 6.06% | 6.56% | -3.96% |
| Net Income Growth % | 364.36% | -87.54% | 5.81% | -51.94% | 0% | 8133.46% | -97.36% | 427.8% | 324.18% | 97.25% | -21.08% | 51.66% | -240.67% | 37.76% | 73.37% | 30.49% | 63.32% | -2883.19% | 45.41% | -849.06% | 95% | -23.95% | 28.1% | 69.47% | -2314.2% | -157.64% | 112.55% | -614.02% | 60.74% | 296.59% | -400.45% |
| Net Income (Continuing) | 9.01M | 1.34M | 10.76M | 10.17M | 21.16M | 21.16M | 257K | 9.74M | 2.3M | -621K | -30.18M | -24.7M | -52.02M | -10.9M | -15.5M | -58.8M | -130.2M | -355M | -11.9M | -21.8M | -2.3M | -45.95M | -37.07M | -51.55M | -168.87M | -7M | 12.14M | -96.73M | 18.82M | 11.71M | -5.96M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 541K | 94K | 918K | -4.1M | -8.6M | -31.7M | 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 | 543K | 341K | 71K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.70 | 0.10 | 0.86 | 0.86 | 1.79 | 9.42 | 0.02 | 0.87 | 0.16 | -0.08 | -2.85 | -2.38 | -4.98 | -1.50 | -2.45 | -9.27 | -13.15 | -36.29 | -1.22 | -5.28 | -0.14 | -3.08 | -2.67 | -3.75 | -12.52 | -0.57 | 1.02 | -9.42 | 2.10 | 2.07 | -1.20 |
| EPS Growth % | 297.23% | -88.37% | 0% | -51.96% | -81% | 39985.11% | -97.3% | 443.75% | 305.66% | 97.27% | -19.75% | 52.21% | -232% | 38.78% | 73.57% | 29.51% | 63.76% | -2874.59% | 76.89% | -3671.43% | 95.45% | -15.36% | 28.8% | 70.05% | -2096.49% | -155.88% | 110.83% | -548.57% | 1.45% | 272.5% | -385.71% |
| EPS (Basic) | - | 0.11 | 0.88 | 0.90 | 1.89 | 9.98 | 0.02 | 0.91 | 0.17 | -0.08 | -2.85 | -2.38 | -4.98 | -1.50 | -2.45 | -9.27 | -13.15 | -36.29 | -1.22 | -5.28 | -0.14 | -3.08 | -2.67 | -3.75 | -12.80 | -0.57 | 1.08 | -9.42 | 2.22 | 2.07 | -1.20 |
| Diluted Shares Outstanding | 12.92M | 12.83M | 12.46M | 11.86M | 11.82M | 11.82M | 10.94M | 11.24M | 11.29M | 10.58M | 10.48M | 10.37M | 10.27M | 10M | 9.83M | 9.77M | 9.9M | 9.78M | 9.73M | 4.12M | 15.93M | 14.94M | 13.89M | 13.76M | 13.49M | 12.23M | 11.94M | 10.27M | 9.08M | 5.65M | 4.96M |
| Basic Shares Outstanding | 12.92M | 12.68M | 12.18M | 11.36M | 11.17M | 11.17M | 10.78M | 10.75M | 11.18M | 10.29M | 10.48M | 10.37M | 10.27M | 10M | 9.83M | 9.77M | 9.9M | 9.78M | 9.73M | 4.12M | 15.93M | 14.94M | 13.89M | 13.76M | 13.19M | 12.23M | 10.99M | 10.27M | 8.55M | 5.65M | 4.96M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Margin volatility from integration
As reported in recent financial statements, Aviat Networks experienced a revenue contraction of 11.2% in 2026Q3, marking a significant reversal from the 21.4% growth observed in 2026Q1 and highlighting the inherent lumpiness of project-based deployments within the company's specialized microwave transport and private network business segments.
The recent deceleration suggests that the company is struggling to maintain consistent momentum following its recent acquisition-led expansion. Investors should monitor whether this decline reflects a temporary pause in government-funded rural broadband cycles or a more structural loss of competitive positioning in the mission-critical infrastructure market.
Based on the company's reported figures, gross margins have fluctuated significantly, dropping to 29.3% in 2026Q3 from a peak of 34.9% in 2025Q3, which indicates that Aviat Networks faces ongoing challenges in managing hardware component costs and maintaining pricing power amidst a competitive global landscape.
The inability to sustain gross margins above the 30% threshold suggests that the company's hardware-heavy cost structure remains highly sensitive to supply chain pressures. This volatility warrants further investigation into whether the current product mix is shifting toward lower-margin offerings that fail to capture the value of the firm's proprietary software-defined tools.
According to quarterly income statement data, Aviat's operating margin compressed to 0.9% in 2026Q3, down from 8.3% in 2025Q3, demonstrating that the company has yet to achieve the necessary scale to effectively leverage its fixed overhead and R&D investments following recent inorganic growth initiatives.
The lack of consistent operating leverage appears to be a direct consequence of the integration costs associated with recent acquisitions. Until the company can demonstrate a sustained ability to grow operating income faster than gross profit, the current cost structure may continue to weigh heavily on overall profitability.
As evidenced by the swing from a $7.3M operating profit in 2026Q2 to a $939K profit in 2026Q3, the company's income statement reveals a fragile earnings profile that may be vulnerable to further margin erosion if acquisition-related synergies fail to materialize as management has previously anticipated.
Short-term observers might argue that the current reliance on project-based revenue makes the company's earnings quality highly unpredictable. The persistent volatility in net income suggests that investors should remain cautious until the company can prove that its recent expansion efforts are yielding sustainable, high-margin recurring revenue streams.
Quick answers to the most common questions about buying AVNW stock.
For fiscal year 2025, Aviat Networks, Inc. (AVNW) reported total revenue of $434.6M. This represents a 188.9% increase compared to $150.4M in 1996.
Aviat Networks, Inc. (AVNW) is profitable, generating $1.3M in net income for the fiscal year ending 2025 with a net profit margin of 0.3%.
Aviat Networks, Inc. (AVNW) reported an operating income of $-10.6M, resulting in an operating profit margin of -2.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Aviat Networks, Inc. (AVNW) generated $139.4M in gross profit for the year, representing a gross profit margin of 32.1%. This demonstrates the company's core pricing power and production efficiency.