Actelis Networks Reports First Quarter 2026 Financial Results With 33% Year-Over-Year Revenue Growth

Published: 2026-05-14 16:47:09 ET ASNS

Published on 05/14/2026 at 04:47 pm EDT

SUNNYVALE, Calif., May 14, 2026 (GLOBE NEWSWIRE) -- Actelis Networks, Inc. (OTCQB: ASNS) ("Actelis" or the "Company"), a market leader in cyber-hardened, rapid-deployment networking solutions for IoT and broadband applications, today reported financial results for the first quarter ended March 31, 2026.

"Q1-2026 shows continued execution on our priorities, including conversion of initial wins into repeat business in U.S. federal and ITS markets," said Tuvia Barlev, Chairman and CEO of Actelis. "Revenues grew 33% year-over-year, driven by deliveries to Cities and Telecom customers, primarily in the U.S. and Asia. The use of AI and outsourcing continues to support reducing costs, and following our transition off Nasdaq in April, we operate business as usual while pursuing available options to relist on Nasdaq."

Business and Financial Highlights

Yoav Efron, Deputy CEO and Chief Financial Officer of Actelis, remarked: Our 33% growth reflects traction in priority markets—U.S. federal, telecom, and ITS—after a challenging 2025. Cost discipline strengthens our operating leverage despite FX pressure that may continue. We plan product pricing increases to offset cost increases and ended the quarter with a stronger balance sheet.”

Fiscal First Quarter 2026 Financial Results:

Revenues for the three months ended March 31, 2026, amounted to $958 thousand, compared with $721 thousand for the three months ended March 31, 2025. The increase was primarily attributable to expansion of the Company's sales footprint, including delivery of large U.S. and Asia Pacific orders to carriers, federal and ITS customers, with revenue increases of 25% in North America, 27% in Europe, the Middle East and Africa, and substantially in the Asia-Pacific region.

Cost of Revenues for the three months ended March 31, 2026, amounted to $723 thousand, compared with $470 thousand for the three months ended March 31, 2025. The increase was primarily attributable to higher direct costs driven by delivery of an unusually low margin deal in the US of approximately $200,000 that is not representative of our normal profitability, and indirect costs increase associated with foreign exchange rate, inventory and warranty related costs. The increase in direct costs was offset by higher revenue.

Gross Profit for the three months ended March 31, 2026, amounted to $235 thousand, or 25% of revenue, compared with $251 thousand, or 35% of revenue, for the three months ended March 31, 2025. The decline in gross margin was primarily attributable to the delivery of an unusually low margin deal in the US in the quarter and the higher indirect cost component noted above. The drop in gross margin is expected to correct itself once volume increases coupled with a better software-to-hardware mix, delivery of profitable sales that are more in-line with our standard and as we continue to reduce our inventories, which we have seen recently.

Research and Development Expenses for the three months ended March 31, 2026, amounted to $689 thousand, compared with $681 thousand for the three months ended March 31, 2025. Underlying cost reduction measures were largely offset by approximately $66 thousand of unfavorable foreign exchange impact reflecting the strengthening of the Israeli shekel against the U.S. dollar.

Sales and Marketing Expenses for the three months ended March 31, 2026, amounted to $675 thousand, compared with $666 thousand for the three months ended March 31, 2025. The slight increase reflected higher sales commissions in line with the revenue increase and approximately $30 thousand of unfavorable foreign exchange impact, partially offset by cost reduction measures.

General and Administrative Expenses for the three months ended March 31, 2026, amounted to $734 thousand, compared with $716 thousand for the three months ended March 31, 2025. Underlying cost reduction measures were largely offset by approximately $29 thousand of unfavorable foreign exchange impact.

Operating Loss for the three months ended March 31, 2026, was $1.86 million, compared with an operating loss of $1.81 million for the three months ended March 31, 2025. The increase reflected the higher cost of goods and the foreign exchange impact, partially offset by the revenue increase and cost reduction measures.

Financial Expenses, Net for the three months ended March 31, 2026, were $593 thousand, compared with $48 thousand for the three months ended March 31, 2025. The increase was primarily attributable to a $625 thousand non-cash expense related to the increase in the Commitment Fee under the Common Stock Purchase Agreement associated with the Company's equity line of credit, payable in common share issuance, together with foreign exchange differences, which was partially offset by income of $124 thousand resulting from changes in the fair value of pre-funded warrants classified as a liability. Interest expense decreased to $14 thousand from $34 thousand.

Net Loss for the three months ended March 31, 2026, was $2.46 million, or $(0.16) per basic and diluted share, compared with a net loss of $1.86 million, or $(2.18) per basic and diluted share on a retroactively adjusted basis for the November 2025 reverse stock split, for the three months ended March 31, 2025.

Adjusted EBITDA loss, a non-GAAP measure of operating performance (reconciled below to net loss), for the three months ended March 31, 2026, was $1.79 million, compared with $1.70 million for the three months ended March 31, 2025.

Cash and Liquidity: As of March 31, 2026, the Company had cash and cash equivalents (including restricted cash) of approximately $7.5 million, compared with approximately $4.4 million as of December 31, 2025. The increase primarily reflected net proceeds of approximately $6.9 million from sales under the Company's ATM program, partially offset by approximately $1.0 million used for share repurchases and approximately $1.9 million used in operating activities.

About Actelis Networks, Inc.Actelis Networks, Inc. (OTCQB: ASNS) is a market leader in hybrid fiber, cyber-hardened networking solutions for rapid deployment in wide-area IoT applications, including government, ITS, military, utility, rail, telecom, and campus networks. Actelis' innovative portfolio offers fiber-grade performance with the flexibility and cost-efficiency of hybrid fiber-copper networks. Through its "Cyber Aware Networking" initiative, Actelis also provides AI-based cyber monitoring and protection for all edge devices, enhancing network security and resilience. For more information, please visit www.actelis.com.

Use of Non-GAAP Financial InformationNon-GAAP Adjusted EBITDA and backlog of open orders are non-GAAP financial measures. In addition to reporting financial results in accordance with GAAP, we provide non-GAAP operating results adjusted for certain items, including: financial expenses, which include interest, financial instrument fair value adjustments and exchange rate differences of assets and liabilities; stock-based compensation expenses; depreciation and amortization expense; tax expense; and the impact of development expenses ahead of product launch. We adjust for the items listed above and present non-GAAP financial measures for all periods presented unless the impact is clearly immaterial to our financial statements.

Cautionary Statement Concerning Forward-Looking StatementsThis press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" and similar expressions or variations of such words are intended to identify forward-looking statements. Forward-looking statements include, among other things, statements regarding the Company's strategic plans and pipeline; expectations regarding the proposed acquisition of Exaware Routing Ltd., including the parties' ability to execute definitive documentation, satisfy customary closing conditions, and obtain required board, shareholder and regulatory approvals; the Company's plans and ability to restore its listing on The Nasdaq Capital Market, including through a potential reverse stock split; the impact of the Company's transition to the OTCQB Venture Market on liquidity and trading of the common stock; the Company's ability to continue as a going concern; the Company's ability to access additional financing under its at-the-market facility, equity line of credit, or other sources; the impact of foreign currency exchange rate movements on operating expenses; and the impact of the political and security situation in Israel and the wider region. Forward-looking statements are not historical facts and are based upon management's current expectations, beliefs and projections, many of which, by their nature, are inherently uncertain. Actual results may differ materially from what is expressed in or indicated by the forward-looking statements. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the Securities and Exchange Commission (SEC), including the Company's Annual Report on Form 10-K for the year ended December 31, 2025, filed on March 18, 2026, and its Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC's web site at http://www.sec.gov. Forward-looking statements speak only as of the date the statements are made. The Company assumes no obligation to update forward-looking statements except to the extent required by applicable securities laws.

ContactArx Investor RelationsNorth American Equities [email protected]

ACTELIS NETWORKS, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(U. S. dollars in thousands, except for share amount)

ACTELIS NETWORKS, INC.CONDENSED CONSOLIDATED BALANCE SHEETS (continued)UNAUDITED(U. S. dollars in thousands)

ACTELIS NETWORKS, INC.CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS(UNAUDITED)(U. S. dollars in thousands, except for share and per share amounts)

ACTELIS NETWORKS, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(UNAUDITED)(U. S. dollars in thousands)

Non-GAAP Financial Measures

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