AI-extracted from the 10-Q filed 2026-06-15 — Q3 FY2026 (quarter ended April 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Q3 revenue declined 16% YoY to $106.0M as S&S phased out low-margin contracts, but gross margin improved to 34.0% and backlog strengthened to $696.1M with S&S book-to-bill of 1.04x.
Biggest Revenue Drivers
Allerium$55.7M-5.9% YoY
Lower NG9-1-1 and call routing sales; prior year included $3.0M retroactive billing benefit not repeated.
Satellite and Space Communications$50.3M-25.6% YoY
Phase-out of low-margin VSAT and other contracts; U.S. government shutdown delayed funding.
Biggest Revenue Drivers
Total revenue: $106.0M-16.4% YoY
Allerium$55.7M-5.9% YoY
Lower NG9-1-1 and call routing sales; prior year included $3.0M retroactive billing benefit not repeated.
Satellite and Space Communications$50.3M-25.6% YoY
Phase-out of low-margin VSAT and other contracts; U.S. government shutdown delayed funding.
Largest Expense Items
Cost of sales$69.9M-20.4% YoY
Lower sales volume; gross margin improved to 34.0% from 30.7%.
Selling, general and administrative$29.3M-2.9% YoY
Increased despite lower sales; includes $2.4M restructuring costs for strategic alternatives.
Amortization of intangibles$4.6M-8.9% YoY
Normal course amortization of customer relationships and technologies.
Research and development$5.2M+18.0% YoY
Higher company-funded R&D in both segments; offset by customer-funded work.
Watch Items from the Filing
U.S. Marine Corps contract terminated for convenience in Q1 FY2026; $10.5M of receivables at risk pending resolution of termination claim.
U.S. export compliance matter under DDTC investigation; estimated 70 exports totaling <$2M without proper licenses; penalties could reach $1.3M+ per violation.
Subsequent to quarter-end (June 14, 2026), agreed to sell most of S&S business to Gilat Satellite Networks affiliate for $157.5M base, subject to working capital adjustments and regulatory approvals.
Convertible preferred stock liquidation preference of $218.2M (including $1.6M accrued dividends); holders have repurchase rights from Oct 31, 2028 or upon asset sale.
Strong Q3 bookings of $70.5M and backlog of $696.1M; S&S book-to-bill of 1.04x (first >1.0x since Q1 FY2024); Allerium's largest customer extended multi-year contract valued >$130M.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Quinlan Mark R.DirectorGrant or award · Mar 24, 2026
Waldman LawrenceDirectorGrant or award · Mar 24, 2026
Sprung Lloyd A.DirectorGrant or award · Mar 24, 2026
Raymond Mary JaneDirectorGrant or award · Mar 24, 2026
Hildebrandt MichaelDirectorGrant or award · Mar 24, 2026
Crawford Bruce TDirectorGrant or award · Mar 24, 2026
About COMTECH TELECOMMUNICATIONS CORP /DE/ (CMTL): stock profile, AI score and financials
COMTECH TELECOMMUNICATIONS CORP /DE/ (CMTL) stock profile, AI quality score, and SEC EDGAR financial data, a Technology sector company. 13F Pro's AI-powered ranking engine scores CMTL at 38.0/100 on a composite quality score built from its SEC filings, placing it at rank #2,210 of 2,925 stocks — the bottom half of the AI-ranked universe. Areas of concern include institutional flow (4.2) and balance sheet strength (22.6), which score below median versus the broader universe. Shareholder dilution risk is elevated at 49.9/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q4 2026), COMTECH TELECOMMUNICATIONS CORP /DE/ reports net income of $-3.2M, free cash flow of $16.3M. Top institutional holders of CMTL by reported 13-F value include QVT Financial, VANGUARD CAPITAL MANAGEMENT, Beacon Pointe Advisors, based on the most recent SEC filings. CMTL trades on the Nasdaq exchange and files with the SEC under CIK 23197. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate CMTL daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for COMTECH TELECOMMUNICATIONS CORP /DE/ directly from SEC EDGAR.