Actelis Networks Reports First Quarter 2026 Financial Results With 33% Year-Over-Year Revenue Growth
Rhea-AI Summary
Actelis Networks (OTCQB: ASNS) reported Q1 2026 revenue of $958k, up 33% year-over-year from $721k, with growth in North America, EMEA and Asia-Pacific. Gross margin was 25% versus 35% a year earlier.
Actelis reported an operating loss of $1.86M and net loss of $2.46M. Cash rose to $7.5M, helped by $6.9M raised via its ATM and offset by share repurchases and operating cash use. The company signed a binding term sheet to acquire Exaware and its stock now trades on the OTCQB while it evaluates relisting options.
Positive
- Revenue up 33% year-over-year to $958k in Q1 2026
- Regional revenue growth: 25% North America, 27% EMEA, strong Asia-Pacific
- Cash and equivalents increased to $7.5M from $4.4M quarter-end
- $6.9M net proceeds raised under ATM, partly offset by $1M buybacks
- Binding all-stock term sheet to acquire Exaware Routing Ltd.
- Cost actions: Israel office relocation and Fremont closure to lower expenses
Negative
- Gross margin declined to 25% from 35% year-over-year
- Operating loss $1.86M and net loss $2.46M in Q1 2026
- Financial expenses rose to $593k due to $625k non-cash fee
- Approximately $1.9M cash used in operating activities in Q1 2026
- Common stock suspended from Nasdaq, now trading on OTCQB
- Unusually low-margin ~$200k U.S. deal pressured profitability
News Market Reaction – ASNS
In the May 15 session, ASNS gained 2.64%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Mar 18 | Full-year 2025 results | Positive | +7.0% | Q4 rebound, improved margins, cash raised via ATM and repurchases authorization. |
| Nov 14 | Q3 2025 earnings | Negative | -8.6% | Weaker revenue, lower margins despite higher bookings and new financings. |
| Aug 14 | Q2 2025 earnings | Negative | -17.9% | Revenue down year-over-year and margin compression alongside restructuring plans. |
| May 13 | Q1 2025 earnings | Positive | -4.9% | Stable revenue and margin expansion but shares fell after the release. |
| Mar 24 | Full-year 2024 results | Positive | -4.6% | Strong 2024 growth and margin gains met with a modest share price decline. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases have often produced notable moves, with both rallies and selloffs; positive reports sometimes saw negative next-day reactions.
Over the past year, Actelis’ earnings updates have mixed operational progress with ongoing losses and financing activity. On Mar 18, 2026, strong Q4 2025 momentum and cash raises produced a 7.01% gain. Earlier 2025 quarters, such as Q2 and Q3, showed revenue declines and restructuring, with shares falling 17.94% and 8.57% respectively. Even solid 2024 full-year growth on Mar 24, 2025 led to a modest decline. Today’s Q1 2026 report with 33% revenue growth fits this pattern of volatile reactions around earnings.
Key Terms
at-the-market (ATM) facility financial
intelligent transportation systems technical
reverse stock split financial
equity line of credit financial
adjusted EBITDA financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Revenue growth driven by increased deliveries and wins across ITS and carrier markets; Negative foreign exchange rate impacts gross margin and operating expenses
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
Business and Financial Highlights
- Revenue Growth of
33% Year-Over-Year: Revenues for Q1- 2026 were$958 thousand , an increase of33% from$721 thousand in the first quarter of 2025, driven primarily by growth of25% in North America with telecom and ITS delivery growth,27% in EMEA where we grew service and software for better cyber readiness by our customers, and growth in the Asia-Pacific region. - U.S. Federal progress: Following the mid-2025 hire of new U.S. leadership positions with stronger federal focus, the Company continues to see demand from federal customers with the completion of the
$500,000 delivery to the FAA late 2025 and continued pipeline development. In April, the Company announced a successful pilot with the U.S. Air Force with cost savings of more than85% versus alternatives. - Continued Strength in Intelligent Transportation Systems (ITS): Continued growth across U.S. and international ITS markets including new deployments in San Mateo County, City of Cincinnati ITS modernization, City of Chino, California, and a follow-on order from a major railway for trackside networking. The Company also received approximately
$200,000 in orders from a U.S. carrier for legacy T1-to-fiber modernization first announced in December 2025, alongside a$150,000 expansion order from a major European natural gas transmission operator and a new governmental order in Japan. - Fiber convergence and cyber security software upgrades in Telecom: The company delivered ~
$200,000 in equipment accelerating Legacy T1 Modernization Deployment with its hybrid fiber solution for a US major carrier, while increasing its European revenues through software and services in support of elevated cyber security. - Cost Discipline and Reorganization: During the first quarter, the Company completed the relocation of its Israeli operations to a lower-cost facility, after closing the Company's Fremont, California office in Q4, outsourcing its U.S. logistics and labs. Operating expenses of
$2.1 million were broadly flat compared with$2.06 million in the prior-year and down when excluding the$125,000 unfavorable due to stronger the Israeli shekel. The benefits of these cost reduction measures are expected to become more visible later in 2026 despite potential continuation of foreign exchange rate impact. - Transition to OTCQB Venture Market: As previously disclosed, the company’s stock trading was suspended on Nasdaq April 10, 2026. Its common stock is now on OTCQB Venture Market. The Company continues to operate its business as usual and is evaluating available options to restore its Nasdaq listing. A reverse stock split was approved by shareholders April 13, 2026.
- Binding Term Sheet with Exaware: On March 24, 2026, the Company announced a binding term sheet to acquire
100% of Israel-based Exaware Routing Ltd., a provider of high-throughput routing, switching, and open networking platforms, in an all-stock transaction. The aims at Actelis' entry into the AI-driven data center networking market. The parties remain engaged in ongoing discussions to advance the acquisition. - Strengthened Capital Position: The Company strengthened its balance sheet during the quarter through
$6.9 million in net proceeds raised under its at-the-market (ATM) facility accompanied by some share repurchases. The Company’s capital position, together with its equity line of credit and the proposed Exaware deal, provide support as it examines relisting on Nasdaq.
Yoav Efron, Deputy CEO and Chief Financial Officer of Actelis, remarked: Our
Fiscal First Quarter 2026 Financial Results:
Revenues for the three months ended March 31, 2026, amounted to
Cost of Revenues for the three months ended March 31, 2026, amounted to
Gross Profit for the three months ended March 31, 2026, amounted to
Research and Development Expenses for the three months ended March 31, 2026, amounted to
Sales and Marketing Expenses for the three months ended March 31, 2026, amounted to
General and Administrative Expenses for the three months ended March 31, 2026, amounted to
Operating Loss for the three months ended March 31, 2026, was
Financial Expenses, Net for the three months ended March 31, 2026, were
Net Loss for the three months ended March 31, 2026, was
Adjusted EBITDA loss, a non-GAAP measure of operating performance (reconciled below to net loss), for the three months ended March 31, 2026, was
Cash and Liquidity: As of March 31, 2026, the Company had cash and cash equivalents (including restricted cash) of approximately
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 Information
Non-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 Statements
This 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.
Contact
Arx Investor Relations
North American Equities Desk
actelis@arxhq.com
ACTELIS NETWORKS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(U. S. dollars in thousands, except for share amount)
| March 31, 2026 | December 31, 2025 | |||||||
| Assets | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | 7,546 | 4,057 | ||||||
| Restricted cash and bank deposits | 77 | 381 | ||||||
| Trade receivables, net of allowance for credit losses of | 930 | 1,058 | ||||||
| Inventories | 2,292 | 2,461 | ||||||
| Prepaid expenses and other current assets | 605 | 634 | ||||||
| TOTAL CURRENT ASSETS | 11,450 | 8,591 | ||||||
| NON-CURRENT ASSETS: | ||||||||
| Property and equipment, net | 71 | 26 | ||||||
| Prepaid expenses and other | 467 | 459 | ||||||
| Restricted bank deposits | 30 | 30 | ||||||
| Funds in respect of employee rights upon retirement | 239 | 264 | ||||||
| Operating lease right-of-use assets | 489 | 69 | ||||||
| Long-term deposits | 86 | 91 | ||||||
| TOTAL NON-CURRENT ASSETS | 1,382 | 939 | ||||||
| TOTAL ASSETS | 12,832 | 9,530 | ||||||
ACTELIS NETWORKS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (continued)
UNAUDITED
(U. S. dollars in thousands)
| March 31, 2026 | December 31, 2025 | |||||||
| Liabilities and shareholders’ equity | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Credit line | 52 | 479 | ||||||
| Short-term loan | - | 350 | ||||||
| Trade payables | 487 | 817 | ||||||
| Deferred revenues | 186 | 223 | ||||||
| Employee and employee-related obligations | 661 | 624 | ||||||
| Accrued royalties | 650 | 612 | ||||||
| Current maturities of operating lease liabilities | 279 | 14 | ||||||
| Other current liabilities | 298 | 373 | ||||||
| TOTAL CURRENT LIABILITIES | 2,613 | 3,492 | ||||||
| NON-CURRENT LIABILITIES: | ||||||||
| Long-term loan | 150 | 150 | ||||||
| Deferred revenues | 16 | 20 | ||||||
| Operating lease liabilities | 206 | 23 | ||||||
| Liability for employee rights upon retirement | 266 | 292 | ||||||
| Liability for commitment fee under ELOC agreement | 625 | - | ||||||
| Pre-funded Warrants Liability | 626 | 750 | ||||||
| Other long-term liabilities | 15 | 6 | ||||||
| TOTAL NON-CURRENT LIABILITIES | 1,904 | 1,241 | ||||||
| TOTAL LIABILITIES | 4,517 | 4,733 | ||||||
| COMMITMENTS AND CONTINGENCIES (Note 5) | ||||||||
| SHAREHOLDERS’ EQUITY: | ||||||||
| Common stock, | 1 | 1 | ||||||
| Non-voting common stock, | - | |||||||
| Additional paid-in capital | 63,093 | 57,119 | ||||||
| Accumulated deficit | (54,779 | ) | (52,323 | ) | ||||
| TOTAL SHAREHOLDERS’ EQUITY | 8,315 | 4,797 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 12,832 | 9,530 | ||||||
ACTELIS NETWORKS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(UNAUDITED)
(U. S. dollars in thousands, except for share and per share amounts)
| Three months ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| REVENUES | 958 | 721 | ||||||
| COST OF REVENUES | 723 | 470 | ||||||
| GROSS PROFIT | 235 | 251 | ||||||
| OPERATING EXPENSES: | ||||||||
| Research and development expenses | 689 | 681 | ||||||
| Sales and marketing expenses | 675 | 666 | ||||||
| General and administrative expenses | 734 | 716 | ||||||
| TOTAL OPERATING EXPENSES | 2,098 | 2,063 | ||||||
| OPERATING LOSS | (1,863 | ) | (1,812 | ) | ||||
| Interest expense | (14 | ) | (34 | ) | ||||
| Other Financial expense, net | (579 | ) | (14 | ) | ||||
| NET COMPREHENSIVE LOSS FOR THE PERIOD | (2,456 | ) | (1,860 | ) | ||||
| Net loss per share attributable to common shareholders – basic and diluted | $ | (0.16 | ) | $ | (2.18 | ) | ||
| Weighted average number of common stocks used in computing net loss per share – basic and diluted | 15,579,527 | 852,011 | ||||||
ACTELIS NETWORKS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(U. S. dollars in thousands)
| Three months ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net loss for the period | (2,456 | ) | (1,860 | ) | ||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation | 2 | 6 | ||||||
| Inventories write-downs | 38 | 5 | ||||||
| Financial expenses | 6 | 15 | ||||||
| Share-based compensation | 70 | 79 | ||||||
| Liability for commitment fee under ELOC agreement | 625 | - | ||||||
| Change in fair value of pre-funded warrant liability | (124 | ) | - | |||||
| Changes in operating assets and liabilities: | ||||||||
| Trade receivables, net | 128 | 382 | ||||||
| Net change in operating lease assets and liabilities | 29 | (22 | ) | |||||
| Inventories | 130 | (76 | ) | |||||
| Prepaid expenses and other current assets | 21 | (94 | ) | |||||
| Trade payables | (331 | ) | (128 | ) | ||||
| Deferred revenues | (41 | ) | 11 | |||||
| Other current liabilities | (8 | ) | (488 | ) | ||||
| Other long-term liabilities | 9 | (4 | ) | |||||
| Net cash used in operating activities | (1,902 | ) | (2,174 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Short-term deposits | (1 | ) | 1 | |||||
| Long-term deposit | 5 | - | ||||||
| Purchase of property and equipment | (45 | ) | - | |||||
| Net cash provided by (used in) investing activities | (41 | ) | 1 | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Proceeds from issuance common stock – ATM | 7,311 | 1,750 | ||||||
| Offering cost from issuance of common stock – ATM | (368 | ) | (170 | ) | ||||
| Credit lines with bank, net | (427 | ) | (324 | ) | ||||
| Proceeds from short-term loans | - | 75 | ||||||
| Repurchase of common stock for retirement | (1,039 | ) | - | |||||
| Repayment of short-term loan | (350 | ) | - | |||||
| Net cash provided by financing activities | 5,127 | 1,331 | ||||||
| EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS | - | (1 | ) | |||||
| INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS | 3,184 | (843 | ) | |||||
| BALANCE OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD | 4,362 | 2,267 | ||||||
| BALANCE OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS AT END OF THE PERIOD | 7,546 | 1,424 | ||||||
Non-GAAP Financial Measures
| (U.S. dollars in thousands) | Three months Ended March 31, 2026 | Three months Ended March 31, 2025 | ||||||
| Revenues | $ | 958 | $ | 721 | ||||
| GAAP net loss | (2,456 | ) | (1,860 | ) | ||||
| Interest Expense | $ | 14 | $ | 34 | ||||
| Other financial expenses, net | 579 | 14 | ||||||
| Tax Expense | - | 32 | ||||||
| Fixed asset depreciation expense | 2 | 6 | ||||||
| Stock-based compensation | 70 | 79 | ||||||
| Non-GAAP Adjusted EBITDA | (1,791 | ) | $ | (1,695 | ) | |||
| GAAP net loss margin | (256.37 | )% | (257.97 | )% | ||||
| Adjusted EBITDA margin | (186.95 | )% | (235.09 | )% | ||||
