$CMTL

COMTECH TELECOMMUNICATIONS CORP /DE/

CIK:0000023197|SEC Filings

Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended		9 Months Ended
	Apr. 30, 2026	Apr. 30, 2025	Apr. 30, 2026	Apr. 30, 2025
Income Statement [Abstract]
Net sales	$ 106,004,000	$ 126,787,000	$ 323,797,000	$ 369,161,000
Cost of sales	69,938,000	87,842,000	214,742,000	281,960,000
Gross profit	36,066,000	38,945,000	109,055,000	87,201,000
Expenses:
Selling, general and administrative	29,331,000	30,203,000	86,950,000	115,679,000
Research and development	5,220,000	4,425,000	13,440,000	12,492,000
Amortization of intangibles	4,597,000	5,044,000	14,684,000	16,680,000
CEO transition costs	40,000	805,000	1,096,000	1,072,000
Proxy solicitation costs	0	0	0	2,682,000
Impairment of long-lived assets, including goodwill	0	0	0	79,555,000
Total operating expenses	39,188,000	40,477,000	116,170,000	228,160,000
Operating loss	(3,122,000)	(1,532,000)	(7,115,000)	(140,959,000)
Other expenses (income):
Interest expense	11,537,000	12,907,000	34,314,000	33,447,000
Interest (income) and other	5,000	(509,000)	(426,000)	0
Change in fair value of warrants and derivatives	(12,479,000)	(49,542,000)	(9,763,000)	(15,450,000)
Write-off of deferred financing costs and debt discounts	0	3,479,000	0	4,891,000
(Loss) income before provision for (benefit from) income taxes	(2,185,000)	32,133,000	(31,240,000)	(163,847,000)
Provision for (benefit from) income taxes	1,268,000	(1,801,000)	1,727,000	(635,000)
Net (loss) income	(3,453,000)	33,934,000	(32,967,000)	(163,212,000)
Establishment of initial convertible preferred stock purchase option liability	0	0	0	(51,179,000)
Dividends on convertible preferred stock, net	(10,810,000)	(48,405,000)	(21,238,000)	(80,656,000)
Net loss attributable to common stockholders	$ (14,263,000)	$ (14,471,000)	$ (54,205,000)	$ (192,689,000)
Net loss per common share (See Note 5):
Basic (in dollars per share)	$ (0.47)	$ (0.49)	$ (1.82)	$ (6.56)
Diluted (in dollars per share)	$ (0.47)	$ (0.49)	$ (1.82)	$ (6.56)
Weighted average number of common shares outstanding - basic (in shares)	30,034,000	29,399,000	29,823,000	29,395,000
Weighted average number of common and common equivalent shares outstanding - diluted (in shares)	30,034,000	29,399,000	29,823,000	29,395,000

Condensed Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Apr. 30, 2026	Apr. 30, 2025
Cash flows from operating activities:
Net loss	$ (32,967,000)	$ (163,212,000)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization of property, plant and equipment	9,094,000	8,400,000
Amortization of intangible assets	14,684,000	16,680,000
Amortization of stock-based compensation	2,720,000	2,520,000
Amortization of cost to fulfill assets	0	261,000
Paid-in-kind interest under term loan	0	5,528,000
Amortization of deferred financing costs, debt discount and accreted interest related to subordinated credit facility	16,245,000	4,451,000
Amortization of deferred financing costs and debt discount related to credit facility	4,108,000	3,496,000
Write-off of deferred financing costs and debt discounts	0	4,891,000
Change in fair value of warrants and derivatives	(9,763,000)	(15,450,000)
Loss on disposal of property, plant and equipment	52,000	310,000
(Benefit from) provision for allowance for doubtful accounts and contract assets	(935,000)	17,716,000
Provision for excess and obsolete inventory	1,553,000	14,485,000
Deferred income tax expense (benefit)	609,000	(584,000)
Impairment of long-lived assets, including goodwill	0	79,555,000
Changes in assets and liabilities:
Accounts receivable	17,977,000	26,407,000
Inventories	5,574,000	960,000
Prepaid expenses and other current assets	(3,266,000)	(552,000)
Other assets	(28,000)	(1,609,000)
Accounts payable	(3,660,000)	(13,930,000)
Accrued expenses and other current liabilities	(3,916,000)	(5,243,000)
Contract liabilities	(363,000)	(2,297,000)
Other liabilities, non-current	500,000	34,000
Interest payable	(14,000)	(1,067,000)
Income taxes payable	850,000	(1,489,000)
Net cash provided by (used in) operating activities	19,054,000	(19,739,000)
Cash flows from investing activities:
Proceeds from sale of indefinite lived intangible asset	13,000	0
Purchases of property, plant and equipment	(13,119,000)	(6,529,000)
Net cash used in investing activities	(13,106,000)	(6,529,000)
Cash flows from financing activities:
Proceeds from subordinated credit facility	0	65,000,000
Payments under revolving loan	(14,000,000)	(9,084,000)
Repayment of term loan	(3,038,000)	(27,252,000)
Proceeds from issuance of employee stock purchase plan shares	77,000	101,000
Payment of deferred financing costs	0	(4,220,000)
Remittance of employees’ statutory tax withholding for stock awards	(463,000)	(1,186,000)
Payment of shelf registration costs	12,000	207,000
Cash dividends paid on common stock	(32,000)	(157,000)
Payment of convertible preferred stock amendment fees	0	(650,000)
Net cash (used in) provided by financing activities	(17,468,000)	22,269,000
Net decrease in cash and cash equivalents	(11,520,000)	(3,999,000)
Cash and cash equivalents at beginning of period	40,019,000	32,433,000
Cash and cash equivalents at end of period	28,499,000	28,434,000
Cash paid during the period for:
Interest	13,946,000	21,019,000
Income taxes, net	(41,000)	1,396,000
Non-cash investing and financing activities:
Adjustment to reflect redemption value of convertible preferred stock	21,238,000	76,785,000
Term loan amendment fee paid-in-kind	2,809,000	4,654,000
Accrued term loan amendment fee	0	2,809,000
Accrued additions to property, plant and equipment	584,000	263,000
Accrued shelf registration costs	225,000	10,000
Accrued deferred financing costs	0	6,000
Issuance of restricted stock	15,000	6,000
Accrued remittance of employees' statutory tax withholdings	39,000	1,000
Reversal of dividend equivalents	0	(33,000)
Convertible Preferred Stock
Cash flows from financing activities:
Payment of convertible preferred stock issuance costs	$ 0	$ (76,000)

Condensed Consolidated Balance Sheets - USD ($)	Apr. 30, 2026	Jul. 31, 2025
Current assets:
Cash and cash equivalents	$ 28,499,000	$ 40,019,000
Accounts receivable, net	127,795,000	144,837,000
Inventories, net	61,828,000	68,955,000
Prepaid expenses and other current assets	18,588,000	16,375,000
Total current assets	236,710,000	270,186,000
Property, plant and equipment, net	45,017,000	43,410,000
Operating lease right-of-use assets, net	30,703,000	30,812,000
Goodwill	204,625,000	204,625,000
Intangibles with finite lives, net	158,421,000	173,105,000
Deferred financing costs, net	1,430,000	1,907,000
Other assets, net	16,577,000	16,790,000
Total assets	693,483,000	740,835,000
Current liabilities:
Accounts payable	22,235,000	25,965,000
Accrued expenses and other current liabilities	49,349,000	58,423,000
Current portion of credit facility	4,050,000	4,050,000
Operating lease liabilities, current	6,477,000	7,250,000
Contract liabilities	65,092,000	62,546,000
Interest payable	1,000	15,000
Total current liabilities	147,204,000	158,249,000
Non-current portion of credit facility, net	104,193,000	114,414,000
Non-current portion of subordinated credit facility, net	106,879,000	95,588,000
Operating lease liabilities, non-current	29,880,000	29,376,000
Income taxes payable, non-current	1,621,000	1,818,000
Deferred tax liability, net	5,228,000	4,619,000
Long-term contract liabilities	18,096,000	21,005,000
Warrant and derivative liabilities	12,664,000	17,849,000
Other liabilities	4,441,000	3,950,000
Total liabilities	430,206,000	446,868,000
Commitments and contingencies (See Note 19)	0
Convertible preferred stock, par value $0.10 per share; authorized and issued 178,181 shares at April 30, 2026 (redemption value of $218,245,000 which includes accrued dividends of $1,625,000) and authorized and issued 178,181 shares at July 31, 2025 (redemption value of $204,153,000, which includes accrued dividends of $1,520,000)	210,783,000	189,545,000
Equity, Attributable to Parent [Abstract]
Preferred stock, par value $0.10 per share; authorized and unissued 1,821,819 shares at both April 30, 2026 and July 31, 2025, respectively	0	0
Common stock, par value $0.10 per share; authorized 100,000,000 shares; issued 44,947,742 and 44,443,626 shares at April 30, 2026 and July 31, 2025, respectively	4,495,000	4,444,000
Additional paid-in capital	529,710,000	548,722,000
Retained deficit	(39,862,000)	(6,895,000)
Stockholders' equity before treasury stock	494,343,000	546,271,000
Treasury stock, at cost (15,033,317 shares at April 30, 2026 and July 31, 2025)	(441,849,000)	(441,849,000)
Total stockholders’ equity	52,494,000	104,422,000
Total liabilities, convertible preferred stock and stockholders’ equity	$ 693,483,000	$ 740,835,000