Aviat Networks reported a strong Q2 FY2025, delivering total revenue of $118.2 million, up 26.2% year over year and producing both GAAP and non-GAAP profitability improvements despite a mixed margin backdrop. Management attributed the top-line strength to the Pasolink platform and the contribution from recent acquisitions, complemented by ongoing private network activity and improving conditions in select regions. The company posted a non-GAAP gross margin of 35.3% and adjusted EBITDA of $14.8 million (12.6% of revenue), with non-GAAP EPS of $0.82. The quarter marked the highest quarterly revenue in over a decade and a record quarterly EBITDA, underscoring operating leverage as volumes grew and the company managed Opex effectively.
Key internal dynamics included: (1) Pasolink revenue approaching a $35 million level for the quarter, supporting the expectation of a $140 million run-rate by the end of FY2025; (2) a manufacturing transition of Pasolink radio production to Thailand, aimed at reducing lead times and lifting margins over time; (3) a continued acceleration in international sales driven by Pasolink and 4RF acquisitions, with North American private networks also contributing meaningfully; (4) better cash generation from operations ($20.8 million) and a modest net debt improvement to roughly $22 million. Management reaffirmed guidance and highlighted the strategic value of adding capabilities in RF/microwave backhaul, cybersecurity, and multi-band microwave solutions (MB Max).