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Segment Information | 9 Months Ended
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Apr. 30, 2026
Segment Reporting [Abstract] |
Segment Information | Segment Information Reportable operating segments are determined based on Comtech’s 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 Electrical, Electronic and Electromechanical ("EEE") parts for satellite, launch vehicle and manned space applications. Our Allerium reportable operating segment is organized into three service areas: Emergency Routing Solutions ("ERS"), which includes our next-generation 9-1-1 and carrier emergency routing offerings; Agency Solutions ("AS"), which includes our 9-1-1 call handling solutions; and Mobile Network Solutions ("MNS"), which includes our trusted location, messaging and alerting solutions sold primarily into wireless carriers. This segment offers customers: Wireless/VolP 9-1-1 location and routing services to connect emergency calls to Public Safety Answering Points ("PSAPs"); SMS text to 9-1-1 services; next generation 9-1-1 solutions, providing emergency call routing, location validation, and policy-based routing rules, logging and security functionality; Emergency Services IP Network transport infrastructure for emergency services communications and support of next generation 9-1-1 services; call handling applications for PSAPs; wireless emergency alert solutions for network operators; and software and equipment for location-based and text messaging services for various applications, including for public safety, commercial and government services. The rebranding to Allerium did not change the composition of this reportable operating segment. In connection with our adoption of ASU No. 2023-07 in fiscal 2025, and considering our transformation plan and most recent CODM's increased focus on profitability and cash flow generation on a GAAP basis, our CODM determined in fiscal 2025 to use GAAP operating income to measure our reportable operating segments' performance and to make decisions about resources to be allocated to each segment. Accordingly, historical segment tables below have been recast on that basis. The CODM uses GAAP operating income to assess the results of each reportable operating segment against their respective plans and forecasts and, more generally, to peers and competitors in the markets in which we operate. The CODM also uses such metric to make decisions about allocating capital and personnel resources to the segments, evaluating which project(s) to undertake and or to prioritize, and determining the compensation of employees. The amounts shown for segment GAAP operating income include expenses which are directly attributable to the segment and considers both cash and non-cash expenses such as: depreciation, amortization of intangibles, impairment of long-lived assets, including goodwill, amortization of cost to fulfill assets, restructuring costs and strategic emerging technology costs (for next-generation satellite technology). Our GAAP operating income metric for each segment does not include the allocation of any indirect expenses which are unrelated to the segment's operations. Reportable operating segment information, along with a reconciliation of segment GAAP operating income to consolidated income (loss) before income taxes is presented in the tables below:
|  | Three months ended April 30, 2026 |  | Three months ended April 30, 2025
|  | Satellite and Space Communications |  | Allerium |  | Total |  | Satellite and Space Communications |  | Allerium |  | Total
Net sales |  | $ | 50,331,000 |  |  | 55,673,000 |  |  | $ | 106,004,000 |  |  | $ | 67,566,000 |  |  | 59,221,000 |  |  | $ | 126,787,000 |
Cost of sales |  | 36,142,000 |  |  | 33,745,000 |  |  |  |  | 52,900,000 |  |  | 34,844,000 |  |  |
Selling, general and administrative |  | 9,664,000 |  |  | 10,745,000 |  |  |  |  | 9,082,000 |  |  | 9,482,000 |  |  |
Research and development |  | 1,877,000 |  |  | 3,301,000 |  |  |  |  | 1,441,000 |  |  | 2,921,000 |  |  |
Amortization of intangibles |  | 1,073,000 |  |  | 3,524,000 |  |  |  |  | 1,426,000 |  |  | 3,618,000 |  |  |
Segment operating income |  | $ | 1,575,000 |  |  | 4,358,000 |  |  | $ | 5,933,000 |  |  | $ | 2,717,000 |  |  | 8,356,000 |  |  | $ | 11,073,000 |
Unallocated corporate expenses |  |  |  |  |  | 9,015,000 |  |  |  |  |  |  | 11,800,000 |
CEO transition costs |  |  |  |  |  | 40,000 |  |  |  |  |  |  | 805,000 |
Interest expense |  |  |  |  |  | 11,537,000 |  |  |  |  |  |  | 12,907,000 |
Interest (income) and other |  |  |  |  |  | 5,000 |  |  |  |  |  |  | (509,000) |
Change in fair value of warrants and derivatives |  |  |  |  |  | (12,479,000) |  |  |  |  |  |  | (49,542,000) |
Write-off of deferred financing costs |  |  |  |  |  | — |  |  |  |  |  |  | 3,479,000 |
(Loss) income before income taxes |  |  |  |  |  | $ | (2,185,000) |  |  |  |  |  |  | $ | 32,133,000 |
Purchases of property, plant and equipment |  | $ | 617,000 |  |  | 4,811,000 |  |  | $ | 5,428,000 |  |  | $ | 171,000 |  |  | 2,290,000 |  |  | $ | 2,461,000 |
Unallocated purchases of property, plant and equipment |  |  |  |  |  | 7,000 |  |  |  |  |  |  | — |
Consolidated purchases of property, plant and equipment |  |  |  |  |  | $ | 5,435,000 |  |  |  |  |  |  | $ | 2,461,000 |
Depreciation expense |  | $ | 674,000 |  |  | 2,349,000 |  |  | $ | 3,023,000 |  |  | $ | 680,000 |  |  | 1,925,000 |  |  | $ | 2,605,000 |
Unallocated depreciation expense |  |  |  |  |  | 106,000 |  |  |  |  |  |  | 121,000 |
Consolidated depreciation expense |  |  |  |  |  | $ | 3,129,000 |  |  |  |  |  |  | $ | 2,726,000 |
Assets: |  |  |  |  |  |  |  |  |  |  |  |
Total segment assets |  | $ | 228,553,000 |  |  | 438,151,000 |  |  | $ | 666,704,000 |  |  | $ | 268,261,000 |  |  | 451,121,000 |  |  | $ | 719,382,000 |
Unallocated assets |  |  |  |  |  | 26,779,000 |  |  |  |  |  |  | 31,762,000 |
Consolidated assets |  |  |  |  |  | $ | 693,483,000 |  |  |  |  |  |  | $ | 751,144,000 |
|  | Nine months ended April 30, 2026 |  | Nine months ended April 30, 2025
|  | Satellite and Space Communications |  | Allerium |  | Total |  | Satellite and Space Communications |  | Allerium |  | Total
Net sales |  | $ | 156,041,000 |  |  | 167,756,000 |  |  | $ | 323,797,000 |  |  | $ | 200,220,000 |  |  | 168,941,000 |  |  | $ | 369,161,000 |
Cost of sales |  | 112,537,000 |  |  | 102,040,000 |  |  |  |  | 175,755,000 |  |  | 105,906,000 |  |  |
Selling, general and administrative |  | 27,627,000 |  |  | 30,965,000 |  |  |  |  | 50,154,000 |  |  | 26,690,000 |  |  |
Research and development |  | 4,676,000 |  |  | 8,654,000 |  |  |  |  | 3,839,000 |  |  | 8,465,000 |  |  |
Amortization of intangibles |  | 3,925,000 |  |  | 10,759,000 |  |  |  |  | 5,828,000 |  |  | 10,852,000 |  |  |
Impairment of long-lived assets, including goodwill |  | — |  |  | — |  |  |  |  | 79,555,000 |  |  | — |  |  |
Segment operating income (loss) |  | $ | 7,276,000 |  |  | 15,338,000 |  |  | $ | 22,614,000 |  |  | $ | (114,911,000) |  |  | 17,028,000 |  |  | $ | (97,883,000) |
Unallocated corporate expenses |  |  |  |  |  | 28,633,000 |  |  |  |  |  |  | 39,322,000 |
Proxy solicitation costs |  |  |  |  |  | — |  |  |  |  |  |  | 2,682,000 |
CEO transition costs |  |  |  |  |  | 1,096,000 |  |  |  |  |  |  | 1,072,000 |
Interest expense |  |  |  |  |  | 34,314,000 |  |  |  |  |  |  | 33,447,000 |
Interest (income) and other |  |  |  |  |  | (426,000) |  |  |  |  |  |  | — |
Change in fair value of warrants and derivatives |  |  |  |  |  | (9,763,000) |  |  |  |  |  |  | (15,450,000) |
Write-off of deferred financing costs |  |  |  |  |  | — |  |  |  |  |  |  | 4,891,000 |
Loss before income taxes |  |  |  |  |  | $ | (31,240,000) |  |  |  |  |  |  | $ | (163,847,000) |
Purchases of property, plant and equipment |  | $ | 1,183,000 |  |  | 11,929,000 |  |  | $ | 13,112,000 |  |  | $ | 310,000 |  |  | 5,808,000 |  |  | $ | 6,118,000 |
Unallocated purchases of property, plant and equipment |  |  |  |  |  | 7,000 |  |  |  |  |  |  | 411,000 |
Consolidated purchases of property, plant and equipment |  |  |  |  |  | $ | 13,119,000 |  |  |  |  |  |  | $ | 6,529,000 |
Depreciation expense |  | $ | 1,996,000 |  |  | 6,772,000 |  |  | $ | 8,768,000 |  |  | $ | 2,197,000 |  |  | 5,833,000 |  |  | $ | 8,030,000 |
Unallocated depreciation expense |  |  |  |  |  | 326,000 |  |  |  |  |  |  | 370,000 |
Consolidated depreciation expense |  |  |  |  |  | $ | 9,094,000 |  |  |  |  |  |  | $ | 8,400,000 |
Assets |  |  |  |  |  |  |  |  |  |  |  |
Total segment assets |  | $ | 228,553,000 |  |  | 438,151,000 |  |  | $ | 666,704,000 |  |  | $ | 268,261,000 |  |  | 451,121,000 |  |  | $ | 719,382,000 |
Unallocated assets |  |  |  |  |  | 26,779,000 |  |  |  |  |  |  | 31,762,000 |
Consolidated assets |  |  |  |  |  | $ | 693,483,000 |  |  |  |  |  |  | $ | 751,144,000 |
Unallocated expenses result from corporate expenses, such as executive compensation, accounting, legal and other regulatory compliance related costs and also includes all of our amortization of stock-based compensation. During the three months ended April 30, 2026 and 2025, our Unallocated segment incurred restructuring costs of $1,446,000 and $3,438,000, respectively, and during the nine months ended April 30, 2026 and 2025, incurred restructuring costs of $4,014,000 and $9,431,000, respectively, primarily focused on legal and other expenses related to strategic alternatives and divestiture activities, as well as other initiatives to streamline our operations, align our cost structure with our future anticipated business and improve our liquidity. During the nine months ended April 30, 2025, our Unallocated segment incurred $2,682,000 of proxy solicitation costs, consisting principally of legal and advisory fees. In November 2024, we entered into a cooperation agreement (the “Cooperation Agreement”) with Fred Kornberg, Michael Porcelain and Oleg Timoshenko (collectively the “Investor Group”). Pursuant to the Cooperation Agreement, our Board appointed Michael J. Hildebrandt to serve on the Board and agreed to nominate, support and recommend Mr. Hildebrandt for election at our Fiscal 2024 Annual Meeting of Stockholders (the "2024 Annual Meeting"). Also, we agreed not to renominate two incumbent directors for election at the 2024 Annual Meeting and the Investor Group agreed to withdraw its nomination of candidates for election to the Board at the 2024 Annual Meeting to, instead, support our slate of directors for election. Pursuant to the Cooperation Agreement, we and the Investor Group agreed to cooperate in good faith to identify an additional candidate to be appointed to the Board at a later date as an independent director. In September 2025, we provided notice to the Investor Group regarding our renomination of Mr. Hildebrandt at the Fiscal 2025 Annual Meeting of Stockholders. Accordingly, the Cooperation Agreement was extended until 30 days prior to the nomination deadline of our Fiscal 2026 Annual Meeting of Stockholders. During the three months ended April 30, 2026 and 2025, our Unallocated segment recorded CEO transition costs of $40,000 and $805,000, respectively, and during the nine months ended April 30, 2026 and 2025, recorded CEO transition costs of $1,096,000 and $1,072,000, respectively. See Note (1) - General - CEO Transition Costs and Related for further information. Interest expense in the above tables includes accreted interest related to our Subordinated Credit Facility, the amortization of deferred financing costs and debt discounts related to both credit facilities and the immediate expensing of certain financing fees related to refinancing and or amending our credit facilities. See Note (9) - Credit Facility and Note (10) - Subordinated Credit Facility for further discussion. There were no intersegment sales between the Satellite and Space Communications segment and the Allerium segment for both the three and nine months ended April 30, 2026 and 2025. Unallocated assets at April 30, 2026 consist principally of cash and cash equivalents, income taxes receivable, corporate property, plant and equipment and deferred financing costs. The large majority of our long-lived assets are located in the U.S.

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