# AVIAT NETWORKS, INC. (AVNW)

Informational only - not investment advice.

CIK: 0001377789
SIC: 3663 Radio & Tv Broadcasting & Communications Equipment
SIC breadcrumb: [Manufacturing](/division/D/) > [Electronic And Other Electrical Equipment And Components, Except Computer Equipment](/major-group/36/) > [SIC 3663 Radio & Tv Broadcasting & Communications Equipment](/industry/3663/)
Latest 10-K filed: 2025-09-10
SEC page: https://www.sec.gov/edgar/browse/?CIK=1377789
Filing source: https://www.sec.gov/Archives/edgar/data/1377789/000137778925000068/avnw-20250627.htm

## At a glance

FY2025 · period end 2025-06-27 · filed 2025-09-10 · accession 0001377789-25-000068 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001377789.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 434,606,000 USD | 2025 | verified |
| Net income | 1,341,000 USD | 2025 | verified |
| Assets | 633,296,000 USD | 2025 | verified |
| Free cash flow | -7,249,000 USD | 2025 | computed |
| Net margin | 0.31% | 2025 | computed |
| Operating margin | 2.43% | 2025 | computed |
| Revenue YoY | +6.50% | 2025 | computed |
| ROE | 0.51% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | AVNW | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 0.3% | 6.4% | 44 | 10 |
| Operating margin | 2.4% | 3.9% | 25 | 9 |
| Revenue growth | 6.5% | 12.5% | 20 | 11 |
| FCF margin | -1.7% | 20.0% | 22 | 10 |
| ROE | 0.5% | -3.7% | 56 | 10 |
| ROA | 0.2% | 0.2% | 50 | 11 |
| Liabilities / equity | 1.41 | 1.39 | 56 | 10 |
| Current ratio | 1.64 | 2.82 | 10 | 11 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 3663 Radio & Tv Broadcasting & Communications Equipment, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 434606000 | USD | 2025 | 2025-09-10 |
| Net income | 1341000 | USD | 2025 | 2025-09-10 |
| Assets | 633296000 | USD | 2025 | 2025-09-10 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2025-09-10. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001377789.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  |  |  | 243,858,000 | 238,642,000 | 274,911,000 | 302,959,000 | 344,433,000 | 408,083,000 | 434,606,000 |
| Net income | -29,907,000 | -823,000 | 1,845,000 | 9,738,000 | 257,000 | 110,139,000 | 21,160,000 | 10,169,000 | 10,760,000 | 1,341,000 |
| Operating income | -27,446,000 | -985,000 | 1,317,000 | 1,368,000 | 3,378,000 | 22,210,000 | 28,745,000 | 24,620,000 | 19,401,000 | 10,575,000 |
| Gross profit | 61,717,000 | 75,472,000 | 80,503,000 | 79,270,000 | 84,696,000 | 102,615,000 | 109,235,000 | 122,382,000 | 144,732,000 | 139,436,000 |
| Diluted EPS | -5.71 | -0.16 | 0.33 | 0.87 | 0.02 | 9.42 | 1.79 | 0.86 | 0.86 | 0.10 |
| Operating cash flow | 356,000 | 9,405,000 | 8,209,000 | 2,944,000 | 17,493,000 | 17,298,000 | 2,789,000 | -1,644,000 | 30,540,000 | 5,721,000 |
| Capital expenditures | 1,574,000 | 4,021,000 | 6,563,000 | 5,246,000 | 4,608,000 | 2,847,000 | 1,792,000 | 5,335,000 | 2,675,000 | 12,970,000 |
| Assets | 166,111,000 | 152,576,000 | 156,061,000 | 169,193,000 | 179,801,000 | 297,653,000 | 323,904,000 | 363,137,000 | 535,223,000 | 633,296,000 |
| Liabilities | 112,654,000 | 98,236,000 | 98,545,000 | 97,677,000 | 111,120,000 | 114,318,000 | 122,151,000 | 144,398,000 | 279,338,000 | 370,113,000 |
| Stockholders' equity | 53,116,000 | 53,797,000 | 57,516,000 | 71,516,000 | 68,681,000 | 183,335,000 | 201,753,000 | 218,739,000 | 255,885,000 | 263,183,000 |
| Cash and cash equivalents | 30,479,000 | 35,658,000 | 37,425,000 | 31,946,000 | 41,618,000 | 47,942,000 | 36,877,000 | 22,242,000 | 64,622,000 | 59,690,000 |
| Free cash flow | -1,218,000 | 5,384,000 | 1,646,000 | -2,302,000 | 12,885,000 | 14,451,000 | 997,000 | -6,979,000 | 27,865,000 | -7,249,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  |  |  | 3.99% | 0.11% | 40.06% | 6.98% | 2.95% | 2.64% | 0.31% |
| Operating margin |  |  |  | 0.56% | 1.42% | 8.08% | 9.49% | 7.15% | 4.75% | 2.43% |
| Return on equity | -56.31% | -1.53% | 3.21% | 13.62% | 0.37% | 60.08% | 10.49% | 4.65% | 4.21% | 0.51% |
| Return on assets | -18.00% | -0.54% | 1.18% | 5.76% | 0.14% | 37.00% | 6.53% | 2.80% | 2.01% | 0.21% |
| Liabilities / equity | 2.12 | 1.83 | 1.71 | 1.37 | 1.62 | 0.62 | 0.61 | 0.66 | 1.09 | 1.41 |
| Current ratio | 1.40 | 1.45 | 1.43 | 1.53 | 1.49 | 1.77 | 1.98 | 1.81 | 1.85 | 1.64 |

## As-reported value updates

No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks.


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-04. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001377789.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2023-Q1 | 2022-09-30 |  |  | -0.25 | reported discrete quarter |
| 2023-Q2 | 2022-12-30 |  |  | 0.51 | reported discrete quarter |
| 2023-Q3 | 2023-03-31 |  |  | 0.41 | reported discrete quarter |
| 2023-Q4 | 2023-06-30 | 91,179,000 | 3,339,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2023-09-29 | 87,566,000 | 4,005,000 | 0.34 | reported discrete quarter |
| 2024-Q2 | 2023-12-29 | 95,036,000 | 2,890,000 | 0.24 | reported discrete quarter |
| 2024-Q3 | 2024-03-29 | 111,613,000 | 3,418,000 | 0.27 | reported discrete quarter |
| 2024-Q4 | 2024-06-28 | 113,868,000 | 447,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2024-09-27 | 88,429,000 | -11,879,000 | -0.94 | reported discrete quarter |
| 2025-Q2 | 2024-12-27 | 118,197,000 | 4,495,000 | 0.35 | reported discrete quarter |
| 2025-Q3 | 2025-03-28 | 112,640,000 | 3,528,000 | 0.27 | reported discrete quarter |
| 2025-Q4 | 2025-06-27 | 115,340,000 | 5,197,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2025-09-26 | 107,320,000 | 162,000 | 0.01 | reported discrete quarter |
| 2026-Q2 | 2025-12-26 | 111,472,000 | 5,718,000 | 0.44 | reported discrete quarter |
| 2026-Q3 | 2026-03-27 | 100,003,000 | -2,065,000 | -0.16 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from AVNW's latest 10-K: [/company/AVNW/business/](/company/AVNW/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from AVNW's latest 10-K: [/company/AVNW/risk-factors/](/company/AVNW/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1377789/000162828026029810/avnw-20260327.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-05-04
Report date: 2026-03-27

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

This Quarterly Report on Form 10-Q, including “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations,” contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they do not materialize or prove correct, could cause our results to differ materially from those expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be deemed to be forward-looking statements, including without limitation statements of, about, concerning or regarding: our ability to maintain effective internal control over financial reporting and management systems and remediate material weaknesses; our plans, strategies and objectives for future operations, including with respect to growing our business and sustaining profitability; our restructuring efforts; our research and development efforts and new product releases and services; trends in revenue; drivers of our business and the markets in which we operate; future economic conditions, performance or outlook, and changes in our industry and the markets we serve; the outcome of contingencies; the value of our contract awards; beliefs or expectations; the sufficiency of our cash and our capital needs and expenditures; our intellectual property protection; our compliance with regulatory requirements and the associated expenses; expectations regarding litigation; our intention not to pay cash dividends; seasonality of our business; the impact of foreign exchange and inflation; taxes; the impact of tariffs, the adoption of trade restrictions affecting our products or suppliers, a United States withdrawal from or significant renegotiation of trade agreements, the occurrence of trade wars, the closing of border crossings, and other changes in trade regulations or relationships; and assumptions underlying any of the foregoing. Forward-looking statements may be identified by the use of forward-looking terminology, such as “anticipates,” “believes,” “expects,” “may,” “should,” “would,” “will,” “intends,” “plans,” “estimates,” “strategy,” “projects,” “targets,” “goals,” “seeing,” “delivering,” “continues,” “forecasts,” “future,” “predict,” “might,” “could,” “potential,” or the negative of these terms, and similar words or expressions.

These forward-looking statements are based on estimates reflecting the current beliefs of the senior management of Aviat Networks, Inc. (“Aviat,” the “Company,” “we,” “us,” and “our”). These forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Forward-looking statements should therefore be considered in light of various important factors, including those set forth in this Quarterly Report on Form 10-Q.

See “Item 1A. Risk Factors” in the Company’s fiscal 2025 Annual Report on Form 10-K filed with the SEC on September 10, 2025 for more information regarding factors that may cause its results to differ materially from those expressed or implied by the forward-looking statements contained in this Quarterly Report on Form 10-Q.

You should not place undue reliance on these forward-looking statements, which reflect our management’s opinions only as of the date of the filing of this Quarterly Report on Form 10-Q. Forward-looking statements are made in reliance upon the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), along with provisions of the Private Securities Litigation Reform Act of 1995, and we expressly disclaim any obligation, other than as required by law, to update any forward-looking statements to reflect further developments or information obtained after the date of filing of this Quarterly Report on Form 10-Q or, in the case of any document incorporated by reference, the date of that document.

Overview of Business; Operating Environment and Key Factors Impacting Fiscal 2026 and 2025 Results

The following Management’s Discussion and Analysis (“MD&A”) is intended to help the reader understand Aviat’s results of operations and financial condition. MD&A is provided as a supplement to, and should be read in conjunction with, the Company’s unaudited condensed consolidated financial statements and accompanying notes. In the discussion herein, the fiscal year ending July 3, 2026 is referred to as “fiscal 2026” or “2026” and the fiscal year ended June 27, 2025 is referred to as “fiscal 2025” or “2025.”

24

Overview

Aviat is a global supplier of microwave networking and access networking solutions, backed by an extensive suite of professional services and support. Aviat sells radios, routers, software and services integral to the functioning of data transport networks. Aviat has more than 3,000 customers and significant relationships with global service providers and private network operators. Aviat’s North America manufacturing base consists of a combination of contract manufacturing and assembly and testing operated in Austin, Texas by Aviat. Additionally, Aviat utilizes a contract manufacturer based in Asia for much of its international equipment demand. Aviat’s technology is underpinned by more than 400 patents. Aviat competes on the basis of total cost of ownership, microwave radio expertise and solutions for mission critical communications. Aviat has a global presence.

Operations Review

The market for mobile backhaul continued to be the Company’s primary addressable market segment globally in the first nine months of fiscal 2026. In North America, the Company supported 5G and long-term evolution (“LTE”) deployments of its mobile operator customers, public safety network deployments for state and local governments, and private network implementations for utilities and other customers. In international markets, the Company’s business continued to rely on a combination of customers increasing their capacity to handle subscriber growth and the ongoing build-out of some large LTE and 5G deployments. Aviat’s position continues to be to support its customers for 5G and LTE readiness and ensure that its technology roadmap is well aligned with evolving market requirements. Aviat’s strength in turnkey and after-sale support services is a differentiating factor that wins business for the Company and enables it to expand its business with existing customers. Additionally, Aviat operates an e-commerce platform that provides low-cost services, simple experience, and fast delivery to mobile operators and private network customers. In early 2025, U.S. tariffs on foreign imports were introduced. Aviat will attempt to mitigate these tariffs; however, as disclosed below and in the “Risk Factors” section in Item 1A of its Annual Report on Form 10-K filed with the SEC on September 10, 2025, a number of factors could prevent the Company from achieving its objectives, including ongoing pricing pressures attributable to competition and macroeconomic conditions in the geographic markets that it serves.

Revenue

The Company manages its sales activities primarily on a geographic basis in North America and three international geographic regions: (1) Africa and the Middle East, (2) Europe, and (3) Latin America and Asia Pacific. Revenue by region for the three and nine months ended March 27, 2026 and March 28, 2025 and the related changes were as follows:

[[GREPCENT_TABLE]]
[["","Three Months Ended","","Nine Months Ended"],["(In thousands, except percentages)","March 27, 2026","","March 28, 2025","","$ Change","","% Change","","March 27, 2026","","March 28, 2025","","$ Change","","% Change"],["North America","$","46,165","","","$","49,402","","","$","(3,237)","","","(6.6)","%","","$","151,713","","","$","149,589","","","$","2,124","","","1.4","%"],["Africa and the Middle East","16,446","","","15,086","","","1,360","","","9.0","%","","43,868","","","38,210","","","5,658","","","14.8","%"],["Europe","10,333","","","9,429","","","904","","","9.6","%","","29,318","","","23,376","","","5,942","","","25.4","%"],["Latin America and Asia Pacific","27,059","","","38,723","","","(11,664)","","","(30.1)","%","","93,896","","","108,091","","","(14,195)","","","(13.1)","%"],["Total revenue","$","100,003","","","$","112,640","","","$","(12,637)","","","(11.2)","%","","$","318,795","","","$","319,266","","","$","(471)","","","(0.1)","%"]]
[[/GREPCENT_TABLE]]

Revenue in North America decreased by $3.2 million during the third quarter of fiscal 2026 compared with the same period of fiscal 2025 primarily due to lower demand for products of 17%. Revenue in North America increased by $2.1 million during the first nine months of fiscal 2026 compared with the same period of fiscal 2025 primarily due to increases in demand for services and software offerings of 10% and 5% respectively, partially offset by a decrease in demand for products of 4%.

Revenue in Africa and the Middle East increased by $1.4 million during the third quarter of fiscal 2026 compared with the same period of fiscal 2025 primarily due to increases in demand for software offerings and products of 133% and 13%, respectively, partially offset by a decrease in demand of 35% for services. Revenue in Africa and the Middle East increased by $5.7 million during the first nine months of fiscal 2026 compared with the same period of fiscal 2025, primarily due to increases in demand for software offerings and products of 36% and 15%, respectively.

25

Revenue in Europe increased by $0.9 million during the third quarter of fiscal 2026 compared with the same period of fiscal 2025 primarily due to increases in demand for software offerings and services of 52% and 16%, respectively. Revenue in Europe increased by $5.9 million during the first nine months of fiscal 2026 compared with the same period of fiscal 2025. The increase for the first nine months of fiscal 2026 was primarily due to increases in demand for software offerings and products of 48% and 31%, respectively.

Revenue in Latin America and Asia Pacific decreased by $11.7 million during the third quarter of fiscal 2026 compared with the same period of fiscal 2025 primarily due to lower demand for software offerings, services, and products of 64%, 25% and 18%, respectively. Revenue in Latin America and Asia Pacific decreased by $14.2 million during the first nine months of fiscal 2026 compared with the same period of fiscal 2025 primarily due to lower demand for services and products of 29% and 11% respectively, partially offset by an increase of 12% on software offerings.

Gross Margin

[[GREPCENT_TABLE]]
[["","Three Months Ended","","Nine Months Ended"],["(In thousands, except percentages)","March 27, 2026","","March 28, 2025","","$ Change","","% Change","","March 27, 2026","","March 28, 2025","","$ Change","","% Change"],["Revenue","$","100,003","","","$","112,640","","","$","(12,637)","","","(11.2)","%","","$","318,795","","","$","319,266","","","$","(471)","","","(0.1)","%"],["Cost of revenue","70,720","","","73,344","","","(2,624)","","","(3.6)","%","","217,748","","","219,296","","","(1,548)","","","(0.7)","%"],["Gross margin","$","29,283","","","$","39,296","","","$","(10,013)","","","(25.5)","%","","$","101,047","","","$","99,970","","","$","1,077","","","1.1","%"],["% of revenue","29.3","%","","34.9","%","","","","","","31.7","%","","31.3","%"],["Product margin %","25.4","%","","33.1","%","","","","","","29.6","%","","28.0","%"],["Service margin %","37.6","%","","38.6","%","","","","","","36.7","%","","38.6","%"]]
[[/GREPCENT_TABLE]]

Gross margin for the third quarter of fiscal 2026 decreased by $10.0 million compared with the same quarter of fiscal 2025 primarily due to sales volumes and the mix of product and service offerings. Gross ma

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1377789/000137778925000068/avnw-20250627.htm
Complete FY 2025 MD&A: /company/AVNW/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2025-09-10
Report date: 2025-06-27

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following Management’s Discussion and Analysis (“MD&A”) is intended to help the reader understand Aviat Networks, Inc.’s (“Aviat”, the “Company”, “we”, “us”, or “our”) results of operations and financial condition during the two-year period ended June 27, 2025. MD&A is provided as a supplement to, and should be read in conjunction with, the Company’s consolidated financial statements and accompanying notes. In the discussion herein, the fiscal years ended June 27, 2025, June 28, 2024, and June 30, 2023, are referred to as “fiscal 2025”, “fiscal 2024” and “fiscal 2023”, respectively. Aviat’s fiscal year ends on the Friday nearest to June 30. For a comparison of the results of operations for fiscal 2024 and 2023, refer to Aviat’s Annual Report on Form 10-K for the fiscal year ended June 28, 2024, filed with the SEC on October 4, 2024.

Overview

Aviat is a global supplier of microwave networking and access networking solutions, backed by an extensive suite of professional services and support. Aviat sells radios, routers, software and services integral to the functioning of data transport networks. Aviat has more than 3,000 customers and significant relationships with global service providers and private network operators. Aviat’s North America manufacturing base consists of a combination of contract manufacturing and assembly and testing operated in Austin, Texas by Aviat. Additionally, Aviat utilizes a contract manufacturer based in Asia for much of its international equipment demand. Aviat’s technology is underpinned by more than 400 patents. Aviat competes on the basis of Total Cost of Ownership (“TCO”), microwave radio expertise and solutions for mission critical communications.

Acquisitions

4RF Limited

On July 2, 2024, the Company acquired 4RF Limited (“4RF”), a New Zealand company, Aviat purchased all of the issued and outstanding shares of 4RF in an all-cash transaction for $18.2 million, net of $1.2 million cash acquired. 4F is a leading provider of industrial wireless access solutions, including narrowband point-to-point/multi-point radios and Private LTE and 5G routers. The acquisition of 4RF allows Aviat to expand its product offering for the global industrial wireless access markets including Private LTE/5G. See Note 12. Acquisitions of the Notes to the consolidated financial statements in this Annual Report on Form 10-K (the “Notes”) for further information.

NEC’s Wireless Transport Business

On May 9, 2023, the Company entered into a Master Sale of Business Agreement (as amended on November 30, 2023, the “Purchase Agreement”) with NEC Corporation (“NEC”), to acquire NEC’s wireless transport business (the “NEC Transaction”). The Company completed the NEC Transaction on November 30, 2023.

Prior to the acquisition date, NEC was a leader in wireless backhaul networks with an extensive installed base of their Pasolink series products. The completion of the NEC Transaction increases the scale of Aviat, enhances the Company’s product portfolio with a greater capability to innovate, and creates a more diversified business. Refer to Note 12. Acquisitions of the Notes to the consolidated financial statements in this Annual Report on Form 10-K for further information.

The fair value of the consideration transferred at the closing of the NEC Transaction was comprised of (i) cash of $32.2 million, and (ii) the issuance of 736,750 shares or $22.3 million of Company common stock. Aggregate consideration transferred at closing was approximately $54.5 million, which is subject to certain post-closing adjustments. In fiscal 2025, the Company transferred consideration of $18.6 million to settle the post-closing working capital adjustment. The Company funded the cash portion of the NEC Transaction with Term Loan borrowings under its Credit Facility (as defined below). Refer to Note 7. Credit Facility and Debt of the Notes for further information.

Redline Communications Group Inc.

In the first quarter of fiscal 2023, the Company acquired all of the issued and outstanding shares of Redline Communications Group Inc. (“Redline”), for a purchase price of $20.4 million. Redline is a leading provider of mission-critical data infrastructure. See Note 12. Acquisitions of the Notes for further information.

39

Operations Review

The market for mobile backhaul continued to be the Company’s primary addressable market segment globally in fiscal 2025. In North America, the Company supported 5G and long-term evolution (“LTE”) deployments of its mobile operator customers, public safety network deployments for state and local governments, and private network implementations for utilities and other customers. In international markets, the Company’s business continued to rely on a combination of customers increasing their capacity to handle subscriber growth and the ongoing build-out of some large LTE and 5G deployments. Aviat’s position continues to be to support its customers for 5G and LTE readiness and ensure that its technology roadmap is well aligned with evolving market requirements. Aviat’s strength in turnkey and after-sale support services is a differentiating factor that wins business for the Company and enables it to expand its business with existing customers. Additionally, Aviat operates an e-commerce on-line platform, Aviat Store, that provides low-cost services, a simple experience, and fast delivery to mobile operators and private network customers. In 2025, new U.S. tariffs on foreign imports were proposed, and in certain cases implemented. In response, Aviat implemented mitigation strategies by optimizing its sourcing and operations to minimize the effects and took pricing actions to offset the impact of these tariffs. However, as disclosed in the “Risk Factors” section in Item 1A of this Annual Report on Form 10-K, a number of factors could prevent the Company from achieving its objectives, including ongoing pricing pressures attributable to competition and macroeconomic conditions in the geographic markets that it serves.

Fiscal 2025 Compared to Fiscal 2024

Revenue

The Company manages its sales activities primarily on a geographic basis in North America and three international geographic regions: (1) Africa and the Middle East, (2) Europe and (3) Latin America and Asia Pacific. Revenue by region for fiscal 2025 and 2024 and the related changes were as follows:

[[GREPCENT_TABLE]]
[["","Fiscal Year"],["(In thousands, except percentages)","2025","","2024","","$ Change","","% Change"],["North America","$","207,606","","","$","206,073","","","$","1,533","","","0.7","%"],["Africa and the Middle East","49,428","","","48,884","","","544","","","1.1","%"],["Europe","31,713","","","24,608","","","7,105","","","28.9","%"],["Latin America and Asia Pacific","145,859","","","128,518","","","17,341","","","13.5","%"],["Total Revenue","$","434,606","","","$","408,083","","","$","26,523","","","6.5","%"]]
[[/GREPCENT_TABLE]]

The Company achieved revenue growth of 6.5% in fiscal 2025 primarily driven by contributions from the NEC Transaction and the 4RF acquisition, and 21% growth in managed services driven by increased demand on a larger install base. This was partially offset by lower demand for software offerings and equipment, which both decreased 3%. During fiscal 2025, contributions from the NEC Transaction and 4RF acquisition totaled $126.8 million and $25.3 million, respectively.

Revenue in North America increased by $1.5 million in fiscal 2025 primarily due to contributions of the 4RF acquisition of $18.8 million, partially offset by lower mobile operator demand, which decreased $17 million.

Revenue in Africa and the Middle East increased by $0.5 million in fiscal 2025 primarily due to increased demand of managed services and software offerings on a larger install base, which increased 36% and 42%, respectively, partially offset by a 12% decrease in equipment sales.

Revenue in Europe increased by $7.1 million in fiscal 2025 primarily due to increased equipment sales to mobile operators in the region.

Revenue in Latin America and Asia Pacific increased by $17.3 million in fiscal 2025 primarily due to higher demand for Pasolink projects and services increasing 37%, higher demand for software which increased 13%, and contributions from the 4RF acquisition of $5.4 million, partially offset by lower equipment sales to mobile operators.

40

[[GREPCENT_TABLE]]
[["","Fiscal Year"],["(In thousands, except percentages)","2025","","2024","","$ Change","","% Change"],["Product sales","$","287,657","","","$","274,205","","","$","13,452","","","4.9","%"],["Services","146,949","","","133,878","","","13,071","","","9.8","%"],["Total Revenue","$","434,606","","","$","408,083","","","$","26,523","","","6.5","%"]]
[[/GREPCENT_TABLE]]

Revenue from product sales and services increased by 4.9% and 9.8%, respectively in fiscal 2025 primarily due to the same overall factors of revenue growth discussed previously.

Gross Margin

[[GREPCENT_TABLE]]
[["","Fiscal Year"],["(In thousands, except percentages)","2025","","2024","","$ Change","","% Change"],["Revenue","$","434,606","","","$","408,083","","","$","26,523","","","6.5","%"],["Cost of revenue","295,170","","","263,351","","","31,819","","","12.1","%"],["Gross margin","$","139,436","","","$","144,732","","","$","(5,296)","","","(3.7)","%"],["% of revenue","32.1","%","","35.5","%"],["Product margin %","27.7","%","","37.4","%"],["Service margin %","40.7","%","","31.6","%"]]
[[/GREPCENT_TABLE]]

Gross margin for fiscal 2025 decreased by $(5.3) million, while gross margin as a percentage of revenue reduced by 3.4 percentage points due to higher volumes on lower margin sales.

Research and Development Expenses

[[GREPCENT_TABLE]]
[["","Fiscal Year"],["(In thousands, except percentages)","2025","","2024","","$ Change","","% Change"],["Research and development expenses","$","35,768","","","$","36,426","","","$","(658)","","","(1.8)","%"],["% of revenue","8.2","%","","8.9","%"]]
[[/GREPCENT_TABLE]]

Research and development expenses decreased by $(0.7) million in fiscal 2025 primarily due to synergies achieved leading to cost optimization from the NEC Transaction.

Selling and Administrative Expenses

[[GREPCENT_TABLE]]
[["","Fiscal Year"],["(In thousands, except percentages)","2025","","2024","","$ Change","","% Change"],["Selling and administrative expenses","$","89,482","","","$","85,038","","","$","4,444","","","5.2","%"],["% of revenue","20.6","%","","20.8","%"]]
[[/GREPCENT_TABLE]]

Selling and administrative expenses increased by $4.4 million in fiscal 2025 primarily due to merger and acquisition expenses and additional costs resulting from the NEC Transaction and 4RF acquisition.

Restructuring Charges

[[GREPCENT_TABLE]]
[["","Fiscal Year"],["(In thousands, except percentages)","2025","","2024","","$ Change","","% Change"],["Restructuring charges","$","3,611","","","$","3,867","","","$","(256)","","","(6.6)","%"],["% of revenue","0.8","%","","0.9","%"]]
[[/GREPCENT_TABLE]]

During fiscal 2025 restructuring charges were $3.6 million, a decrease of $(0.3) million compared to fiscal 2024. Fiscal 2025 restructuring activities were primarily associated with reductions in workforce in certain of the Company’s operations to optimize skill sets and align cost structure. The prior year comparison period includes restructuring charges primarily associated with the NEC Transaction.

41

The Company’s success in restructuring initiatives has enabled it to restructure specific groups to optimize skill sets and align its organizational structure to execute on strategic deliverables, in addition to aligning cost structure with the core business.

Interest Expense, Net

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/AVNW/mda/fy2025/
All MD&A years: /company/AVNW/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/AVNW/mda/fy2024/): filed 2024-10-04; accession 0001377789-24-000043 (https://www.sec.gov/Archives/edgar/data/1377789/000137778924000043/avnw-20240628.htm)
- [FY 2023 MD&A](/company/AVNW/mda/fy2023/): filed 2023-08-30; accession 0001377789-23-000023 (https://www.sec.gov/Archives/edgar/data/1377789/000137778923000023/avnw-20230630.htm)
- [FY 2022 MD&A](/company/AVNW/mda/fy2022/): filed 2022-09-14; accession 0001377789-22-000137 (https://www.sec.gov/Archives/edgar/data/1377789/000137778922000137/avnw-20220701.htm)
- [FY 2021 MD&A](/company/AVNW/mda/fy2021/): filed 2021-08-25; accession 0001377789-21-000048 (https://www.sec.gov/Archives/edgar/data/1377789/000137778921000048/avnw-20210702.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 3663 Radio & Tv Broadcasting & Communications Equipment) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/AVNW.md · JSON record: /company/AVNW.json · verified financials: /company/AVNW/financials.json / /company/AVNW/financials.csv · machine TOC for the whole site: /llms.txt