Financial Analysis

"CEO Transition Costs and Related CEO transition-related costs are expensed in our Unallocated segment and relate to the following: Fiscal 2025 - On October 28, 2024, the Board appointed John Ratigan as our President and Chief Executive Officer (""CEO""). On October 31, 2024, Kenneth H. Traub was appointed as an independent member of the Board. On November 26, 2024, Mr. Traub was appointed Executive Chairman and Mark Quinlan resigned from his position as Chairman while remaining as a member of the Board. Also on November 26, 2024, Lieutenant General (Retired) Bruce T. Crawford, was appointed Lead Independent Director. On January 13, 2025, the Board appointed Mr. Traub as President and CEO in addition to his current role as Chairman, replacing Mr. Ratigan effective immediately. Pursuant to his separation agreement and release, Mr. Ratigan resigned from his position as President and CEO and as a member of the Board. CEO transition costs of $2,117,000 incurred during fiscal 2025 consisted of net legal expenses related to a former CEO, severance related to Mr. Ratigan, third party CEO search firm expenses and expense related to Mr. Traub's sign-on bonus. Fiscal 2024 - On March 12, 2024, Ken Peterman, our former Chairman of the Board, President and CEO, was terminated for cause and the Board of Directors appointed Mr. Ratigan as interim CEO and Mr. Quinlan as Chairman of the Board of Directors. Prior to the changes, Mr. Ratigan served as our Chief Corporate Development Officer and …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

"Commitments and Contingencies (a) Legal Proceedings and Other Matters Former CEO Related Matters On March 12, 2024, we terminated Ken Peterman, our President and CEO at the time, for Cause pursuant to the terms of his employment agreement dated September 12, 2022 (the Employment Agreement). On November 21, 2024 (as amended on December 31, 2024), Mr. Peterman filed a claim with the American Arbitration Association, alleging that Comtech materially breached the Employment Agreement in the termination for Cause and that the termination was a retaliation for whistleblowing by Mr. Peterman in connection with certain of our prior financial and accounting practices. Mr. Peterman claims he is owed direct contractual damages in an amount in excess of $6,000,000 and consequential damages for injury to his professional reputation in excess of $35,000,000. We believe Mr. Peterman's claims are entirely without merit and will defend ourselves vigorously in the matter. We filed a Counterclaim against Mr. Peterman alleging that his misconduct and attempts to conceal the same constituted a breach of his fiduciary duties. Mr. Peterman later filed a separate administrative complaint with the Department of Labor (Occupational Safety and Health Administration) making similar allegations and claiming that we retaliated against him in violation of the Sarbanes-Oxley Act of 2002. We independently investigated, with the assistance of an outside advisor, Mr. Peterman's allegations that he was a whist …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Credit Facility On June 17, 2024, we entered into a senior secured loan facility with a syndicate of lenders, which replaced our prior credit facility. As further discussed below, we subsequently amended the credit facility on October 17, 2024, March 3, 2025 and July 21, 2025 (the ""Credit Facility""). At July 31, 2025, the Credit Facility consists of a remaining $116,260,000 term loan (the ""Term Loan"" facility) and (ii) an asset-based revolving credit facility with revolving commitments in an aggregate principal amount of $54,750,000, subject to borrowing base limitations as described below (the ""Revolving Loan"" facility). At closing, the proceeds were used to repay the prior credit facility in full and for working capital and other general corporate purposes. The obligations under the Credit Facility are guaranteed by certain of our domestic and foreign subsidiaries (the ""Guarantors""), who have granted for the benefit of the lenders, a lien on, and first priority security interest in, substantially all of our tangible and intangible assets. The Credit Facility was amended on October 17, 2024 (the ""First Amendment"") which, among other things: (i) waived all defaults under the Credit Facility, specifically in connection with our Net Leverage Ratio and Fixed Charge Coverage Ratio covenants as of July 31, 2024; (ii) increased the interest rate margins applicable to the Term Loan to 12.00% per annum for Base Rate Loans and 13.00% per annum for SOFR Loans and increased i …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

"The following tables summarize our disaggregation of revenue consistent with information reviewed by our Chief Operating Decision Maker (""CODM"") for the fiscal years ended July 31, 2025, 2024 and 2023. We believe these categories best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors which impact our business. See Note (13) - ""Segment Information "" for more information related to our segments. Fiscal Year Ended July 31, 2025 Satellite and Space Communications Allerium Total Geographical region and customer type U.S. government $ 148,411,000 2,910,000 $ 151,321,000 Domestic 35,956,000 207,156,000 243,112,000 Total United States 184,367,000 210,066,000 394,433,000 International 84,898,000 20,197,000 105,095,000 Total $ 269,265,000 230,263,000 $ 499,528,000 Contract type Firm fixed-price $ 213,167,000 230,263,000 $ 443,430,000 Cost reimbursable 56,098,000 56,098,000 Total $ 269,265,000 230,263,000 $ 499,528,000 Transfer of control Point in time $ 147,859,000 1,886,000 $ 149,745,000 Over time 121,406,000 228,377,000 349,783,000 Total $ 269,265,000 230,263,000 $ 499,528,000 Fiscal Year Ended July 31, 2024 Satellite and Space Communications Allerium Total Geographical region and customer type U.S. government $ 179,816,000 2,504,000 $ 182,320,000 Domestic 48,793,000 193,366,000 242,159,000 Total United States 228,609,000 195,870,000 424,479,000 International 95,460,000 20,464,000 115,924,000 Total $ 324,069,000 216, …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

"Stock-Based Compensation Overview In December 2023, our stockholders approved the Comtech Telecommunications Corp. 2023 Equity and Incentive Plan (the 2023 Plan), which replaced the Amended and Restated 2000 Stock Incentive Plan. Under the 2023 Plan, the initial number of shares of common stock available for all awards, other than substitute awards granted in connection with a corporate transaction, was 1,669,683 shares of common stock plus certain expired or cancelled awards recycled back into the 2023 Plan. Also, on November 25, 2024, our Board of Directors approved an amendment to the 2023 Plan to increase the number of available shares of common stock authorized for issuance under the 2023 Plan by 2,195,000 shares. Stockholders approved the amendment to the 2023 Plan at the 2024 Annual Meeting on January 13, 2025. We issue stock-based awards to certain of our employees and our Board of Directors pursuant to the 2023 Plan, as amended and/or restated from time to time and our 2001 Employee Stock Purchase Plan, as amended and/or restated from time to time (the ""ESPP""), and recognize related stock-based compensation in our consolidated financial statements. The 2023 Plan provides for the granting to employees and consultants of Comtech (including prospective employees and consultants): (i) incentive and non-qualified stock options, (ii) restricted stock units (""RSUs""), (iii) RSUs with performance measures (which we refer to as ""performance shares""), (iv) restricted sto …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

"Income Taxes Loss before benefit from income taxes consists of the following: Fiscal Years Ended July 31, 2025 2024 2023 U.S. $ (135,111,000) (65,374,000) (21,327,000) Foreign (20,271,000) (34,906,000) (9,520,000) $ (155,382,000) (100,280,000) (30,847,000) The benefit from income taxes included in the accompanying Consolidated Statements of Operations consists of the following: Fiscal Years Ended July 31, 2025 2024 2023 Federal current $ 673,000 377,000 (258,000) Federal deferred (2,345,000) (4,623,000) State and local current 514,000 1,181,000 1,412,000 State and local deferred (834,000) (815,000) Foreign current 433,000 1,137,000 958,000 Foreign deferred (1,700,000) 189,000 (622,000) Benefit from income taxes $ (80,000) (295,000) (3,948,000) The benefit from income taxes differed from the amounts computed by applying the U.S. Federal income tax rate as a result of the following: Fiscal Years Ended July 31, 2025 2024 2023 Amount Rate Amount Rate Amount Rate Computed ""expected"" tax benefit $ (32,630,000) 21.0 % (21,059,000) 21.0 % (6,478,000) 21.0 % Increase (reduction) in income taxes due to: State and local income taxes, net of valuation allowance and federal benefit 406,000 (0.2) (127,000) 0.1 440,000 (1.4) Stock-based compensation 1,017,000 (0.6) 1,891,000 (1.9) 692,000 (2.2) Research and experimentation credits (1,125,000) 0.7 (1,251,000) 1.2 (2,576,000) 8.4 Foreign-derived intangible income deduction 43,000 (517,000) 1.7 Revaluation of warrants and embedded derivativ …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"Leases Our leases historically relate to the leasing of facilities and equipment. In accordance with FASB ASC 842 - ""Leases"" (""ASC 842""), we determine at inception whether an arrangement is, or contains, a lease and whether the lease should be classified as an operating or a financing lease. At lease commencement, we recognize a right-of-use (""ROU"") asset and lease liability based on the present value of the future lease payments over the estimated lease term. We elected to not recognize a ROU asset or lease liability for any leases with terms of twelve months or less. Instead, for such short-term leases, we recognize lease expense on a straight-line basis over the lease term. Certain of our leases include options to extend the term of the lease or to terminate the lease early. When it is reasonably certain that we will exercise a renewal option or will not exercise a termination option, we include the impact of exercising or not exercising such option, respectively, in the estimate of the lease term. As our lease agreements do not explicitly state the discount rate implicit in the lease, we use our incremental borrowing rate (""IBR"") on the commencement date to calculate the present value of future lease payments. Such IBR represents our estimated rate of interest to borrow on a collateralized basis over a term commensurate with the expected lease term. Some of our leases include payments that are based on the Consumer Price Index (""CPI"") or other similar indices. …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"Adoption of Accounting Standards and Updates We are required to prepare our consolidated financial statements in accordance with the Financial Accounting Standards Board (""FASB"") Accounting Standards Codification (""ASC"") which is the source for all authoritative U.S. generally accepted accounting principles, which are commonly referred to as ""GAAP."" The FASB ASC is subject to updates by the FASB, which are known as Accounting Standards Updates (""ASUs""). During fiscal 2025, we adopted: FASB ASU No. 2023-07, which among other things, requires the disclosure of significant segment expenses, by reportable segment, regularly provided to the chief operating decision maker (CODM) and included within each reported measure of segment profit or loss. Our adoption of this ASU impacted our disclosures only through the retrospective application to all prior periods presented. See Note (13) - ""Segment Information"" for more information. During fiscal 2025, the following FASB ASUs have been issued and incorporated into the FASB ASC and have not yet been adopted by us as of July 31, 2025: FASB ASU No. 2023-09, which among other things, enhances and establishes new income tax disclosure requirements, in addition to modifying and eliminating certain existing requirements. Most notably, this ASU requires greater disaggregation of information in the effective tax rate reconciliation, including the inclusion of both percentages and amounts, specific categories and additional information …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Cost Reduction and Related Restructuring Activities In fiscal 2025, in connection with our transformation strategy, we implemented multiple reductions in force throughout our organization and in all of our segments. Inclusive of actions taken in August 2025 (i.e., the start of our fiscal 2026), such reductions approximated 23% of our workforce as of July 31, 2024, or approximately $47,000,000 in annualized labor costs. Related to these activities, in fiscal 2025, we recorded $3,633,000 of severance costs within selling, general and administrative expenses in our Consolidated Statements of Operations . After net payments of $3,900,000 during fiscal 2025, our severance liability as of July 31, 2024 decreased from $1,029,000 to $762,000 as of July 31, 2025. At July 31, 2025, we had approximately 1,385 employees (including contractors), compared to 1,676 as of July 31, 2024. As of the issuance date, we had approximately 1,347 employees (including temporary employees and contractors), which reflects the completion of a reduction in force within our Allerium segment in August 2025. We recorded severance costs of $2,616,000 and $3,872,000 during fiscal 2024 and 2023, respectively.

RestructuringAndRelatedActivitiesDisclosureTextBlock

"Segment Information Reportable operating segments are determined based on Comtechs management approach. The management approach, as defined by FASB ASC 280 ""Segment Reporting"" (""ASC 280"") is based on the way that the CODM organizes the segments within an enterprise for making decisions about resources to be allocated and assessing their performance. On January 13, 2025, the Board of Directors appointed Kenneth H. Traub as President and Chief Executive Officer in addition to his role as Chairman. Mr. Traub is our CODM for purposes of ASC 280. Our two reportable operating segments are described below. Our Satellite and Space Communications reportable operating segment is organized into four technology areas: satellite modem and amplifier technologies, troposcatter technologies, cybersecurity training (formerly, known as government services) and space components. This segment offers customers: satellite ground infrastructure technologies, services and system integration that facilitate the transmission of voice, video and data over GEO, MEO and LEO satellite constellations, including traveling wave tube power amplifiers, satellite modems, VSAT platforms and frequency converters; over-the-horizon microwave solutions that can transmit digitized voice, video, and data over distances up to 200 miles using the troposphere and diffraction; advanced cybersecurity training in support of U.S. government and certain commercial and university customers; and procurement and supply chai …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"Summary of Significant Accounting and Reporting Policies Principles of Consolidation The accompanying consolidated financial statements include the accounts of Comtech Telecommunications Corp. and its subsidiaries (""Comtech,"" ""we,"" ""us,"" or ""our""), all of which are wholly-owned. All significant intercompany balances and transactions have been eliminated in consolidation. Nature of Business We design, produce and market innovative products, systems and services for advanced communications solutions. We conduct our business through two reportable operating segments: Satellite and Space Communications and Allerium (formerly, Terrestrial and Wireless Networks). Our business is highly competitive and characterized by rapid technological change. Our growth and financial position depends on our ability to keep pace with such changes and developments and to respond to the sophisticated requirements of an increasing variety of methods and devices used to transmit and receive secure wireless communications, among other things. Many of our competitors are substantially larger, and have significantly greater financial, marketing and operating resources and broader product lines than our own. A significant technological or sales breakthrough by others, including smaller competitors or new companies, could have a material adverse effect on our business. In addition, certain of our customers have technological capabilities in our product areas and could choose to replace our produc …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Stockholders Equity Common Stock Repurchase Program On September 29, 2020, our Board of Directors authorized a $100,000,000 stock repurchase program, which replaced our prior program. The $100,000,000 stock repurchase program has no time restrictions and repurchases may be made from time to time in open-market or privately negotiated transactions, or by other means in accordance with federal securities laws. There were no repurchases made during the fiscal years ended July 31, 2025 or 2024. Additional Paid in Capital During the fiscal year ended July 31, 2025, $89,879,000 of the adjustments to the carrying values of outstanding Convertible Preferred Stock to their respective redemption values, while outstanding, were charged to additional paid in capital so as not to exceed the available amount of retained earnings as of July 31, 2025. …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

"Legal Proceedings and Other Matters Former CEO Related Matters On March 12, 2024, we terminated Ken Peterman, our President and CEO at the time, for Cause pursuant to the terms of his employment agreement dated September 12, 2022 (the Employment Agreement). On November 21, 2024 (as amended on December 31, 2024), Mr. Peterman filed a claim with the American Arbitration Association, alleging that Comtech materially breached the Employment Agreement in the termination for Cause and that the termination was a retaliation for whistleblowing by Mr. Peterman in connection with certain of our prior financial and accounting practices. Mr. Peterman claimed he was owed direct contractual damages in an amount in excess of $6,000,000 and consequential damages for injury to his professional reputation in excess of $35,000,000. We believed Mr. Peterman's claims to be entirely without merit and defended ourselves vigorously in the matter. We filed an initial counterclaim against Mr. Peterman alleging that his misconduct and attempts to conceal the same constituted a breach of his fiduciary duties. Subsequently, on November 24, 2025, we filed an amended counterclaim seeking damages for malicious prosecution, abuse of process, breach of contract and defamation, as well as further claims for Mr. Peterman's breach of his fiduciary duties in addition to the initial counterclaim. On January 9, 2026, Mr. Peterman's counsel wrote to the Arbitrator with two motions, (i) voluntarily withdrawing Mr. P …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Credit Facility On June 17, 2024, we entered into a senior secured loan facility with a syndicate of lenders, which replaced our prior credit facility. As further discussed below, we subsequently amended the credit facility on October 17, 2024, March 3, 2025 and July 21, 2025 (the ""Credit Facility""). At April 30, 2026, the Credit Facility consists of a remaining $116,031,000 term loan (the ""Term Loan"" facility) and (ii) an asset-based revolving credit facility with revolving commitments in an aggregate principal amount of $54,750,000, subject to borrowing base limitations as described below (the ""Revolving Loan"" facility). At closing, the proceeds were used to repay the prior credit facility in full and for working capital and other general corporate purposes. The obligations under the Credit Facility are guaranteed by certain of our domestic and foreign subsidiaries (the ""Guarantors""), who have granted for the benefit of the lenders, a lien on, and first priority security interest in, substantially all of our tangible and intangible assets. The Credit Facility was amended on October 17, 2024 (the ""First Amendment"") which, among other things: (i) waived all defaults under the Credit Facility, specifically in connection with our Net Leverage Ratio and Fixed Charge Coverage Ratio covenants as of July 31, 2024; (ii) increased the interest rate margins applicable to the Term Loan to 12.00% per annum for Base Rate Loans and 13.00% per annum for SOFR Loans and increased …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

"The following tables summarize our disaggregation of revenue consistent with information reviewed by our Chief Operating Decision Maker (""CODM"") for the three and nine months ended April 30, 2026 and 2025. We believe these categories best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors which impact our business: Three months ended April 30, 2026 Nine months ended April 30, 2026 Satellite and Space Communications Allerium Total Satellite and Space Communications Allerium Total Geographical region and customer type U.S. government $ 22,855,000 491,000 $ 23,346,000 $ 55,637,000 2,051,000 $ 57,688,000 Domestic 7,508,000 50,356,000 57,864,000 26,606,000 150,849,000 177,455,000 Total United States 30,363,000 50,847,000 81,210,000 82,243,000 152,900,000 235,143,000 International 19,968,000 4,826,000 24,794,000 73,798,000 14,856,000 88,654,000 Total $ 50,331,000 55,673,000 $ 106,004,000 $ 156,041,000 167,756,000 $ 323,797,000 Contract type Firm fixed-price $ 48,074,000 55,673,000 $ 103,747,000 $ 148,262,000 167,756,000 $ 316,018,000 Cost reimbursable 2,257,000 2,257,000 7,779,000 7,779,000 Total $ 50,331,000 55,673,000 $ 106,004,000 $ 156,041,000 167,756,000 $ 323,797,000 Transfer of control Point in time $ 23,824,000 407,000 $ 24,231,000 $ 101,467,000 736,000 $ 102,203,000 Over time 26,507,000 55,266,000 81,773,000 54,574,000 167,020,000 221,594,000 Total $ 50,331,000 55,673,000 $ 106,004,000 $ 156,041,000 167,756,0 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

"Stock-Based Compensation Overview In December 2023, our stockholders approved the Comtech Telecommunications Corp. 2023 Equity and Incentive Plan (the 2023 Plan), which replaced the Amended and Restated 2000 Stock Incentive Plan. Under the 2023 Plan, the initial number of shares of common stock available for all awards, other than substitute awards granted in connection with a corporate transaction, was 1,669,683 shares of common stock plus certain expired or cancelled awards recycled back into the 2023 Plan. On January 13, 2025 and March 9, 2026, our stockholders approved an amendment to the 2023 Plan to increase the number of available shares of common stock authorized for issuance under the 2023 Plan by 2,195,000 and 2,800,000 shares, respectively. Accordingly, under the terms of the 2023 Plan, as amended, the maximum number of shares of common stock authorized for issuance is equal to 6,664,683 shares, including 69,683 shares from the 2000 Stock Incentive Plan. We issue stock-based awards to certain of our employees and our Board of Directors pursuant to the 2023 Plan, as amended and/or restated from time to time, and our 2001 Employee Stock Purchase Plan, as amended and/or restated from time to time (the ""ESPP""), and recognize related stock-based compensation in our condensed consolidated financial statements. The 2023 Plan provides for the granting to employees and consultants of Comtech (including prospective employees and consultants): (i) incentive and non-qualifi …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

"Fair Value Measurements and Financial Instruments Using the fair value hierarchy described in FASB ASC 820 "" Fair Value Measurements and Disclosures,"" we valued our cash and cash equivalents using Level 1 inputs that were based on quoted market prices. We believe that the carrying amounts of our other current financial assets (such as accounts receivable) and other current liabilities (including accounts payable, accrued expenses and the current portion of long-term debt) approximate their fair values due to their short-term maturities. Additionally, the carrying amount of the non-current portion of our Credit Facility approximated its fair value due to the variable interest rates and pricing grid related to such debt. Level 3 inputs are unobservable inputs developed using the best available information under the circumstances. Level 3 inputs are supported by little or no market activity, are significant to the fair value of the assets or liabilities and reflect our assumptions related to how market participants would use similar inputs to price the asset or liability. As further discussed in Note (9) - Credit Facility, we used Level 3 inputs to value the warrants issued to lenders in connection with our Credit Facility. As of April 30, 2026, we determined the fair value of such warrants based on the Black-Scholes option pricing model using the following estimates: exercise price of $0.10; risk free rate of 4.0%; volatility of 65.0%; expected life of 5.1 years; and dividen …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"Income Taxes Our effective tax rate (including discrete tax items) for the three months ended April 30, 2026 was (58.0)%, compared to (5.6)% for the three months ended April 30, 2025. Our effective tax rate (including discrete tax items) for the nine months ended April 30, 2026 and 2025 was (5.5)% and nominal, respectively. In addition to discrete items recorded during each respective period, the change in rates also reflects changes in expected product and geographical mix. For purposes of determining our estimated annual effective tax rate (""AETR"") to apply to earnings from continuing operations for fiscal 2026, the change in fair value of warrants and derivatives and CEO transition costs are considered significant, unusual or infrequently occurring discrete tax items and were excluded from the computation of such AETR. During the three and nine months ended April 30, 2026, we recorded net discrete tax expense of $1,084,000 and $841,000, respectively, primarily due to the establishment of a valuation allowance on certain net deferred tax assets associated with our Canadian operations, offset in part by the reversal of tax contingencies no longer required due to the expiration of applicable statute of limitations. During the three and nine months ended April 30, 2025, we recorded net discrete tax benefits of $498,000 and $683,000, respectively, primarily related to proxy solicitation costs and CEO transition costs. At April 30, 2026 and July 31, 2025, total unrecognized t …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"Leases Our leases historically relate to the leasing of facilities and equipment. In accordance with FASB ASC 842 - ""Leases"" (""ASC 842""), we determine at inception whether an arrangement is, or contains, a lease and whether the lease should be classified as an operating or a financing lease. At lease commencement, we recognize a right-of-use (""ROU"") asset and lease liability based on the present value of the future lease payments over the estimated lease term. We elected to not recognize a ROU asset or lease liability for any leases with terms of twelve months or less. Instead, for such short-term leases, we recognize lease expense on a straight-line basis over the lease term. Certain of our leases include options to extend the term of the lease or to terminate the lease early. When it is reasonably certain that we will exercise a renewal option or will not exercise a termination option, we include the impact of exercising or not exercising such option, respectively, in the estimate of the lease term. As our lease agreements do not explicitly state the discount rate implicit in the lease, we use our incremental borrowing rate (""IBR"") on the commencement date to calculate the present value of future lease payments. Such IBR represents our estimated rate of interest to borrow on a collateralized basis over a term commensurate with the expected lease term. Some of our leases include payments that are based on the Consumer Price Index (""CPI"") or other similar indices. …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"Adoption of Accounting Standards and Updates We are required to prepare our Condensed Consolidated Financial Statements in accordance with the FASB ASC, which is the source for all authoritative U.S. generally accepted accounting principles, which are commonly referred to as ""GAAP."" The FASB ASC is subject to updates by the FASB, which are known as Accounting Standards Updates (""ASUs""). The following FASB ASUs have been issued and incorporated into the FASB ASC and have not yet been adopted by us: FASB ASU No. 2023-09, which among other things, enhances and establishes new income tax disclosure requirements, in addition to modifying and eliminating certain existing requirements. Most notably this ASU requires greater disaggregation of information in the effective tax rate reconciliation, including the inclusion of both percentages and amounts, specific categories, and additional information for reconciling items meeting a quantitative threshold defined by the guidance. Additionally, disclosures of income taxes paid and income tax expense must be disaggregated by federal, state and foreign taxes, with income taxes paid further disaggregated for individual jurisdictions that represent 5 percent or more of total income taxes paid. This ASU is effective for fiscal years beginning after December 15, 2024 (our fiscal 2026), with early adoption permitted. We are evaluating the impact of this ASU on our Condensed Consolidated Financial Statements and disclosures. FASB ASU No. 20 …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Cost Reduction and Restructuring Related Activities In connection with our transformation plan, we implemented multiple reductions in force throughout our organization and in all of our segments. Through April 30, 2026, such reductions approximated 24% of our workforce as of July 31, 2024, or approximately $52,000,000 in annualized labor costs. At April 30, 2026, we had approximately 1,282 employees (including temporary employees and contractors), compared to 1,347 and 1,676 as of July 31, 2025 and July 31, 2024, respectively. Our severance liability was $293,000 and $762,000, respectively, as of April 30, 2026 and July 31, 2025. Severance costs, recorded within selling, general and administrative expenses in our Condensed Consolidated Statements of Operations, were $921,000 and $3,633,000, respectively, for the nine months ended April 30, 2026 and for all of fiscal 2025. Severance payments were $1,390,000 and $3,900,000, respectively, for the nine months ended April 30, 2026 and for all of fiscal 2025.

RestructuringAndRelatedActivitiesDisclosureTextBlock

"Revenue Recognition In accordance with FASB ASC 606 - "" Revenue from Contracts with Customers "" (""ASC 606""), we record revenue in an amount that reflects the consideration to which we expect to be entitled in exchange for goods or services promised to customers. Under ASC 606, we follow a five-step model to: (1) identify the contract with our customer; (2) identify our performance obligations in our contract; (3) determine the transaction price for our contract; (4) allocate the transaction price to our performance obligations; and (5) recognize revenue using one of the following two methods: Over time - We recognize revenue using the over time method when control transfers to the customer over the contractual period of performance. This generally occurs when we enter into a long-term contract relating to the design, development or manufacture of complex equipment or technology platforms to a buyers specification (or to provide services related to the performance of such contracts), for which we have determined that the customer controls the asset as it is created or there is no alternative use, as defined in ASC 606. Transfer of control is typically supported by contract clauses which allow our customers to unilaterally terminate a contract for convenience, pay for costs incurred plus a reasonable profit and take control of work-in-process. Work-in-process includes components for which we have commenced the manufacturing or integration process and obtained the right to …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"Segment Information Reportable operating segments are determined based on Comtechs management approach. The management approach, as defined by FASB ASC 280 ""Segment Reporting"" (""ASC 280"") is based on the way that the CODM organizes the segments within an enterprise for making decisions about resources to be allocated and assessing their performance. On January 13, 2025, the Board of Directors appointed Kenneth H. Traub as President and Chief Executive Officer in addition to his role as Chairman. Mr. Traub is our CODM for purposes of ASC 280. Our two reportable operating segments are described below. Our Satellite and Space Communications reportable operating segment is organized into four technology areas: satellite modem and amplifier technologies, troposcatter technologies, cybersecurity training and space components. This segment offers customers: satellite ground infrastructure technologies, services and system integration that facilitate the transmission of voice, video and data over GEO, MEO and LEO satellite constellations, including traveling wave tube power amplifiers, satellite modems, VSAT platforms and frequency converters; over-the-horizon microwave solutions that can transmit digitized voice, video, and data over distances up to 200 miles using the troposphere and diffraction; advanced cybersecurity training in support of U.S. government and certain commercial and university customers; and procurement and supply chain management of high reliability Electric …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Stockholders Equity Shelf Registration On March 23, 2026, we filed a $125,000,000 shelf registration statement with the SEC for the sale of various types of securities, including debt securities. This shelf registration was declared effective by the SEC as of April 6, 2026 and expires on April 6, 2029. To-date, we have not issued any securities pursuant to this shelf registration statement. Common Stock Repurchase Program On September 29, 2020, our Board of Directors authorized a $100,000,000 stock repurchase program, which replaced our prior program. The $100,000,000 stock repurchase program has no time restrictions and repurchases may be made from time to time in open-market or privately negotiated transactions, or by other means in accordance with federal securities laws. There were no repurchases during the nine months ended April 30, 2026 and 2025. Additional Paid in Capital Cumulatively through April 30, 2026, $111,117,000 of the adjustments to the carrying values of outstanding Convertible Preferred Stock to their respective redemption values, while outstanding, were charged to additional paid in capital so as not to exceed the available amount of retained earnings at the time of such adjustments. …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing