Gilat Satellite Networks (NASDAQ: GILT) secures $40m contract for SkyEdge IV platform; Stock jumps on 5G-NTN optimism

What Is Gilat’s New $40 Million SkyEdge IV Contract About?

Gilat Satellite Networks Ltd. (NASDAQ: GILT, TASE: GILT) announced on June 3, 2025, that it has secured a $40 million contract for its virtualized SkyEdge IV platform, to be deployed over a 24-month period. This milestone contract will accelerate the transformation of ground-based satellite infrastructure and help align global satellite services with emerging cloud-native and 5G Non-Terrestrial Network (5G-NTN) standards.

Headquartered in Petah Tikva, Israel, Gilat Satellite Networks is positioning this deployment as a flagship step toward fully virtualized ground network solutions. The SkyEdge IV platform is built to support multi-orbit constellations and enables deployment on standard cloud infrastructure using open standards such as DIFI (Digital IF Interoperability Consortium), delivering adaptability and cost-efficiency to satellite operators.

The announcement came as part of Gilat’s broader strategy to modernize ground segment solutions and enable a more interoperable, software-first satellite ecosystem. Company executives characterized the deal as a validation of Gilat’s aggressive R&D roadmap and a major milestone in the global shift toward 5G-NTN connectivity.

Why Is SkyEdge IV Seen as a Strategic Breakthrough?

The SkyEdge IV platform represents a dramatic departure from traditional hardware-anchored satellite infrastructure. Gilat Satellite Networks has engineered it as a fully virtualized, multi-service software solution that supports cloud-native deployment and interoperability with next-generation software-defined satellites (SDS).

This modularity allows satellite operators to deploy network capabilities dynamically, scale services faster, and integrate satellite connectivity with terrestrial 5G infrastructure. It aligns with the industry’s move toward seamless multi-orbit operation—covering LEO, MEO, and GEO networks—and enables hybrid services for mobility, maritime, defense, and rural broadband use cases.

Ron Levin, President of Gilat’s Commercial Division, indirectly highlighted the product’s significance by stating that it reflects Gilat’s readiness to support software-defined satellites and deliver next-generation architecture aligned with global demand.

How Did the Market React to Gilat’s Contract Announcement?

Investor sentiment responded positively. On June 3, 2025, shares of Gilat Satellite Networks (NASDAQ: GILT) surged by nearly 6.8%, trading around $6.05 intraday. The gain reflected renewed investor confidence in Gilat’s strategic pivot to cloud-native, software-defined infrastructure for satellite communications.

Trading volumes spiked above the average daily float, signaling increased attention from institutional and retail investors. The contract reinforces Gilat’s ability to monetize its innovation-led product roadmap, especially in high-growth sectors like multi-orbit connectivity and government-grade satellite infrastructure.

Despite a recent downgrade by Wall Street Zen from “buy” to “hold” on May 28, 2025, due to valuation concerns, Needham & Company LLC maintained a “buy” rating with a price target of $8.50. This divergence in analyst opinion indicates both the potential and risks embedded in Gilat’s transformation strategy.

What Are the Institutional Ownership Trends for GILT?

As of the latest filings, institutional investors hold approximately 35.72% of Gilat’s outstanding shares. Prominent stakeholders include AWM Investment Company Inc., Phoenix Financial Ltd., and First Wilshire Securities Management Inc. Over the past 24 months, institutional investors have accumulated around 7.4 million shares, totaling $43.1 million in disclosed transactions.

This level of institutional participation underscores confidence in Gilat’s long-term prospects, particularly as the company builds out its defense and commercial customer base across multiple continents. Analysts have noted that Gilat’s expansion in the software stack may eventually allow it to attract strategic defense and telecom partnerships globally.

How Does SkyEdge IV Fit Into the 5G-NTN and Satellite Connectivity Landscape?

The 5G-NTN framework is a cornerstone of future digital infrastructure, integrating satellite and terrestrial networks to ensure continuous global coverage. As governments and operators look to enable services like autonomous mobility, smart agriculture, and global IoT, solutions like SkyEdge IV provide the required agility and cross-platform integration.

Gilat’s offering is among the first cloud-native platforms that comply with evolving NTN standards. It allows satellite services to be delivered using commercially available cloud infrastructure—cutting down capital expenditure and drastically improving deployment speed for emerging markets and disaster zones.

By incorporating DIFI-compliant interfaces, Gilat Satellite Networks also supports interoperability between equipment from different vendors, allowing operators to avoid vendor lock-in while remaining ready for defense-grade interoperability demands.

What Are Gilat’s Broader Strategic Objectives?

This contract is part of a larger transformation initiative by Gilat to evolve from a hardware vendor to a vertically integrated, software-first satellite connectivity provider. Gilat’s portfolio includes advanced Solid State Power Amplifiers (SSPA), phased-array antennas, airborne connectivity terminals, and field-ready VSAT terminals—all of which now integrate with its cloud-native orchestration layer.

Subsidiaries like Gilat Wavestream and Gilat DataPath contribute to this end-to-end ecosystem, particularly in mobility and defense applications. The SkyEdge IV platform complements this by offering a flexible, software-driven control layer that unifies network operations, real-time data routing, and intelligent bandwidth allocation across LEO, MEO, and GEO orbits.

This diversification across ground systems, modems, antennas, and cloud control allows Gilat to serve large-scale commercial airlines, satellite mobile backhaul operators, defense contractors, and even rural connectivity projects with a unified architecture.

What’s the Financial Performance Context Behind This Deal?

Gilat Satellite Networks reported revenues of $92 million for Q1 2025, up 21% year-over-year. Adjusted EBITDA reached $7.6 million, reflecting strong margin management despite higher R&D expenses related to SkyEdge IV and other cloud-native initiatives.

The $40 million SkyEdge IV contract, while not transformative on its own, adds predictable revenue and demonstrates traction in high-margin software and integration services. The company’s market capitalization as of June 3 stands at approximately $331.5 million, with 57.1 million shares outstanding.

From an investment perspective, the addition of recurring software-based contracts like this one is likely to increase the quality of Gilat’s revenue streams, reduce volatility, and potentially attract more institutional interest.

Where Does Gilat Stand Against Competitors?

The satellite ground segment space is becoming increasingly contested. Gilat competes with players like Hughes Network Systems, Kratos, and ST Engineering iDirect—each investing heavily in software-defined gateways, SDN/NFV virtualization, and cloud-native orchestration platforms.

Gilat’s edge lies in its vertically integrated approach. Unlike competitors who rely on modular stacks from multiple vendors, Gilat can offer an end-to-end solution across terminals, ground systems, software, and managed services. This makes it especially attractive for defense agencies and telcos seeking simplified procurement and integrated network management.

Its adherence to open standards and support for software-defined satellites also gives it an early-mover advantage in markets adopting multi-orbit constellations and 5G-NTN overlays.

What’s Next for Gilat and Investors?

Going forward, investors will be watching for follow-through on execution. Key milestones include the successful delivery of the SkyEdge IV platform within the 24-month window and announcements of additional contracts tied to 5G-NTN or sovereign space programs.

Analysts suggest that more such software-driven wins could push GILT stock past its technical resistance around the $6.50 level, with speculative interest eyeing the $7.00–$8.00 range in the medium term. Institutional accumulation at current levels could signal long-term confidence in Gilat’s roadmap.

For Gilat Satellite Networks, the challenge will be to balance aggressive innovation with margin discipline, especially as R&D costs rise. However, if the company can maintain its pace of commercialization, its transformation from a satellite hardware vendor to a cloud-native infrastructure enabler may soon be complete.