Elsight (ELS) H2 2025 earnings summary

Executive summary

• Achieved transformational growth in 2025 with 11-fold revenue increase to US$22.8M year-over-year, driven by organic execution and strong demand in defence and commercial markets.

• Reached profitability with net profit of US$7.5M, positive operating cash flow of US$19.8M, and cash flow breakeven in H1 2025.

• Ended the year with US$59M in cash and zero debt, providing a robust foundation for future expansion.

• Secured a US$21.2M contract in December 2025, bringing order backlog to US$22M, covering 96% of 2025 revenue for H1 2026.

Financial highlights

• Revenue: US$22.8M for 2025, up from US$2.0M in 2024 (1,024% increase).

• Net profit: US$7.5M in 2025 vs. net loss of US$3.9M in 2024 (293% improvement).

• Gross margin: Maintained at ~77%, reflecting high-value product mix.

• Recurring revenue from software/cloud/connectivity: US$2.8M, up 250% year-over-year, now 12% of total revenue.

• Net assets increased to US$51.0M from US$1.2M year-over-year.

• Cash and cash equivalents rose to US$59.0M from US$0.9M year-over-year.

Outlook and guidance

• Entered 2026 with strong momentum, a growing backlog, and 96% of 2025 revenue already secured for H1 2026.

• Major defence programs progressing toward scaled procurement; commercial adoption accelerating.

• Regulatory progress in commercial drone integration and rising global defence budgets expected to drive continued growth.