Customer bookings nearly doubled compared to Q2, with a stronger backlog entering Q4 2025
Recent Hire of U.S. Federal Sales leadership Supports market Opportunities
Reorganization and efficiency plan on track toward annualized 15--20% operating expense reduction
Cybersecurity, HW and software sales expand across telecom and infrastructure networks
FREMONT, Calif, Nov. 14, 2025 (GLOBE NEWSWIRE) -- Actelis Networks, Inc. (NASDAQ: 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 third quarter and nine months ended September 30, 2025.
"We are seeing good traction and opportunities develop in Federal and MDU markets, despite a soft quarter on the Federal revenue side," said Tuvia Barlev, Chairman and CEO of Actelis. "Customer bookings this quarter were nearly double sequentially to Q2, and we entered the fourth quarter with stronger backlog of orders that are scheduled for delivery. Our reorganization is proceeding as planned, while the financial impact will be seen in Q4 and into early 2026. At the same time, we continue to expand our Federal and Military reach and pursue opportunities for both organic and selective inorganic growth."
Operational and Financial Highlights for the Third Quarter 2025:
-- Order Growth and Backlog: Customer bookings reached $1.26 million, nearly
double Q2 2025 levels, backlog entering Q4 was $0.73 million versus less
than $0.1 million at the start of Q3. This order momentum positions the
company for stronger sequential performance.
-- Revenue and Gross Margin: Q3 revenue was $0.64 million reflecting
prolonged timeline to close major, mostly Federal deals and the
non-recurrence of a large 2024 two-year software and support contract, as
well as Federal order received in Q3 of nearly $0.5 million from the FAA
to be shipped only in Q4,Gross Margin benefited from high-value
cyber-security software upgrades led by a major European telecom
customer. Because of the overall low volume of Revenues, and the impact
of fixed costs, gross margin ended at 28% in Q3 and 32% for the nine
months ended September 30, 2025.
-- Operating Expenses in Q3 were $2.11 million compared to $2.06 million in
the prior year quarter, impacted primarily by an increase associated with
foreign exchange rate differences of $0.1 million and stock-based
compensation increase of $0.1 million. The effect of our restructuring
plan is not fully reflected until the beginning of 2026.
-- Federal and Military Markets: The Company won the FAA deal of nearly $0.5
million with additional major opportunities in the pipeline advanced for
closing. Newly appointed Chief Revenue Officer for the Americas, Mark
DeVol, who joined in August, assumed leadership over growth initiatives
in these markets, leveraging his deep experience in Federal and Military
networking programs in a strategic large-scale approach.
-- Cybersecurity and Software: The Company advanced its cybersecurity
initiatives beyond embedded hardening and the MetaShield Cyber Aware
Networking platform. During Q3, Actelis accelerated upgrades and cyber
related services to software across its installed base to address
vulnerabilities and emerging threats, enhancing protection for customers'
legacy and hybrid network deployments.
-- Restructuring and Cost Efficiency: The Company's reorganization remains
on track, targeting a 15-20% reduction in baseline operating expenses
compared to the first half of 2025. Excluding foreign-exchange impacts
and non-cash stock-based compensation, operating expenses declined
year-over-year for both the three- and nine-month periods. Actions taken
during the quarter included facility consolidation, increased reliance on
consultants as opposed to full-time employees, reduction in the cost
related to being a public company, and automation initiatives expected to
have a fuller impact beginning in Q4 2025 and Q1 2026.
-- Strengthened Balance Sheet and Compliance: The Company strengthened its
balance sheet through $1.85 million raised in two private placements
closed respectively in July 2025 and September 2025, as well as a $1.6
million warrant exercise transaction in September 2025, while maintaining
low debt levels and reducing financial expenses year-over-year. Actelis
also entered into a $30 million equity line of credit (ELOC) during the
quarter that became effective October 1, 2025, to enhance liquidity and
maintain ongoing Nasdaq compliance. In October, Nasdaq confirmed the
Company's compliance with the stockholders' equity requirement under
Listing Rule 5550(b)(1), and shareholders approved a reverse stock split
at the November 7, 2025, special meeting.
Financial Results for the Quarter and Nine Months ending September 30, 2025:
Revenues for the three months ended September 30, 2025, amounted to $0.64 million, compared to approximately $2.54 million for the three months ended September 30, 2024. The decline is associated with a software and services renewal last year for 2 years which will be up for renewal in 2027, as well as a large deal to the City of Washington D.C. last year, while 2025's revenues are more backend loaded.
Our revenues for the nine months ended September 30, 2025, amounted to $2.3 million, compared to approximately $6.7 million for the nine months ended September 30, 2024. The decline is associated with a software and services renewal last year for 2 years which will be up for renewal in 2027, as well as a large deal to the City of Washington D.C. last year, while 2025's revenues are more backend loaded.
Cost of Revenues for the three months ended September 30, 2025, amounted to $0.46 million, compared to approximately $0.8 million for the three months ended September 30, 2024. The decrease from the corresponding period was mainly attributable to fixed cost remaining constant and sales reduced.
Our cost of revenues for the nine months ended September 30, 2025, amounted to $1.6 million, compared to approximately $2.8 million for the nine months ended September 30, 2024. The decrease from the corresponding period was mainly attributable to fixed cost remaining constant and sales reduced.
Research and Development Expenses for the three months ended September 30, 2025, amounted to $0.6 million, compared to $0.5 million for the three months ended September 30, 2024. The increase was primarily driven by a rise in the utilization of professional services for our GL900 product line and due to foreign exchange rate impact of approximately $51,000.
Our research and development expenses for the nine months ended September 30, 2025, amounted to $1.9 million, compared to $1.8 million for the nine months ended September 30, 2024. The increase was primarily driven by a rise in the utilization of professional services for our GL900 product line and due to foreign exchange rate impact of approximately $88,000
Sales and Marketing Expenses for the three months ended September 30, 2025, amounted to $0.8 million, compared to $0.7 million for the three months ended September 30, 2024. The increase was primarily due to payroll expenses and engaging consultants to expand market reach in different countries in Europe and Asia.
Our sales and marketing expenses for the nine months ended September 30, 2025, amounted to $2.2 million, compared to $2.0 million for the nine months ended September 30, 2024. The increase was primarily due to payroll expenses and engaging consultants to expand market reach in different countries in Europe and Asia.
General and Administrative Expenses for the three months ended September 30, 2025, amounted to $0.8 million, compared to $0.8 million for the three months ended September 30, 2024. Cost-reduction measures contributed to reducing expenses, these benefits were offset by higher costs driven by foreign exchange rate impact.
Our general and administrative expenses for the nine months ended September 30, 2025, amounted to $2.2 million, compared to $2.4 million for the nine months ended September 30, 2024. The decrease was mainly due to cost-reduction measures; however, this reduction was partially offset by an increase in expenses resulting from foreign exchange rate impact.
Other Income for the three and nine months ended September 30, 2025, amounted to $73,000 compared to $163,000 in the three and nine months ended September 30, 2024. It is related to government grant from the State of Israel in connection with Iran war.
Operating Loss for the three months ended September 30, 2025, was $1.9 million, compared to $0.3 for the three months ended September 30, 2024. The increase is due to the decline in sales, while operating expenditure remained consistent. In addition, foreign exchange rate impact caused an increase of approximately $0.1 million in operating expenditure.
Our operating loss for the nine months ended September 30, 2025, was $5.5 million, compared to $2.1 million for the nine months ended September 30, 2024. The increase is due to the decline in sales, while operating expenditure remained consistent. In addition, foreign exchange rate impact caused an increase of approximately $0.2 million in operating expenditure.
Financial Expenses, Net for the three months ended September 30, 2025, was $51,000 (including $27,000 interest expenses) compared to financial expense, net of $194,000 (including $246,000 interest expenses) for the three months ended September 30, 2024. The decrease in expenditure is mainly due to repayment of loan leading to reduced interest expense and other bank related charges. However, this decrease was partially offset by foreign exchange rate impact.
Our financial expense, net for the nine months ended September 30, 2025, was $227,000 (including $83,000 interest expenses) compared to financial expense, net of $452,000 (including $590,000 interest expenses) for the nine months ended September 30, 2024. The decrease in expenditure is mainly due to repayment of loan leading to reduced interest expense and other bank related charges. However, this decrease was partially offset by foreign exchange rate impact.
Net Loss for the three months ended September 30, 2025, was $2 million, compared to net loss of approximately $0.5 million for the three months ended September 30, 2024. The increase in net loss is due to lower sales, while operating expenditure remained consistent. In addition, foreign exchange rate, led to higher expenditure and contributing to increase in net loss.
Our net loss for the nine months ended September 30, 2025, was $5.7 million, compared to net loss of approximately $2.6 million for the nine months ended September 30, 2024. The increase in net loss is due to lower sales, while operating expenditure remained consistent. In addition, foreign exchange rate impact, led to higher expenditure and contributing to increase in net loss.
Adjusted EBITDA loss for the three months ended September 30, 2025, was $1.82 million, compared to a loss of $0.23 million in Q3 2024. For the nine months ended September 30, 2025, Adjusted EBITDA loss was $5.29 million, compared to $2.01 million in 2024.
About Actelis Networks, Inc.
Actelis Networks, Inc. (NASDAQ: ASNS) is a market leader in hybrid fiber-copper, 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 are interest, financial instrument fair value adjustments, exchange rate differences of assets and liabilities, stock based compensation expenses, depreciation and amortization expense, tax expense, and impact of development expenses ahead of product launch. We adjust for the items listed above and show non-GAAP financial measures in 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 are not historical facts, and are based upon management's current expectations, beliefs and projections, many of which, by their nature, are inherently uncertain. Such expectations, beliefs and projections are expressed in good faith. However, there can be no assurance that management's expectations, beliefs and projections will be achieved, and actual results may differ materially from what is expressed in or indicated by the forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in 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 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 to reflect actual results, subsequent events or circumstances, changes in assumptions or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws. If the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. Actelis is not responsible for the contents of third-party websites.
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 and per share amounts)
(UNAUDITED)
Sep 30, December 31,
2025 2024
-------- ------------
Assets
CURRENT ASSETS:
Cash and cash equivalents 1,454 1,967
Restricted cash equivalents 304 300
Restricted bank deposits 73 -
Trade receivables, net of allowance
for credit losses of $168 as of
September 30, 2025, and December 31,
2024. 624 1,616
Inventories 2,675 2,436
Prepaid expenses and other current
assets, net of allowance for doubtful
debts of $181 as of September 30,
2025, and December 31, 2024. 791 584
TOTAL CURRENT ASSETS 5,921 6,903
------- ------------
NON-CURRENT ASSETS:
Property and equipment, net 32 38
Prepaid expenses and other 463 492
Restricted bank deposits 30 91
Severance pay fund 254 205
Operating lease right of use assets 137 410
Long-term deposits 95 86
------- ------------
TOTAL NON-CURRENT ASSETS 1,011 1,322
------- ------------
TOTAL ASSETS 6,932 8,225
======= ============
ACTELIS NETWORKS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (continued)
(UNAUDITED)
(U. S. dollars in thousands)
Sep 30, December 31,
2025 2024
-------- ------------
Liabilities and shareholders' equity
CURRENT LIABILITIES:
Credit line 99 774
Short-term loan 405 -
Trade payables 724 982
Deferred revenues 230 246
Employee and employee-related
obligations 697 688
Accrued royalties 660 673
Current maturities of operating lease
liabilities 117 415
Other current liabilities 548 805
------- ------------
TOTAL CURRENT LIABILITIES 3,480 4,583
------- ------------
NON-CURRENT LIABILITIES:
Long-term loan 150 150
Deferred revenues 47 92
Accrued severance 281 229
Other long-term liabilities 9 186
------- ------------
TOTAL NON-CURRENT LIABILITIES 487 657
------- ------------
TOTAL LIABILITIES 3,967 5,240
------- ------------
COMMITMENTS AND CONTINGENCIES (Note 5)
SHAREHOLDERS' EQUITY:
Common stock, $0.0001 par value:
30,000,000 shares authorized:
17,467,350 and 7,623,159 shares
issued and outstanding as of
September 30, 2025 and December 31,
2024, respectively. 1 1
Non-voting common stock, $0.0001
par value: 2,803,774 shares
authorized as of September 30,
2025, and December 31, 2024, None
issued and outstanding as of
September 30, 2025 and December
31, 2024. - -
Additional paid-in capital 52,767 47,046
Accumulated deficit (49,803) (44,062)
------- ------------
TOTAL SHAREHOLDERS' EQUITY 2,965 2,985
------- ------------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY 6,932 8,225
======= ============
The accompanying notes are an integral part of these condensed consolidated financial statements (Unaudited).
ACTELIS NETWORKS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(UNAUDITED)
(U. S. dollars in thousands)
Nine months ended Three months ended
September 30, September 30,
----------------------- -----------------------
2025 2024 2025 2024
---------- ---------- ---------- ----------
REVENUES 2,305 6,698 643 2,541
COST OF REVENUES 1,566 2,792 460 798
--------- --------- ---------- ---------
GROSS PROFIT 739 3,906 183 1,743
--------- --------- ---------- ---------
OPERATING
EXPENSES:
Research and
development
expenses 1,947 1,793 591 543
Sales and
marketing
expenses 2,155 2,001 789 727
General and
administrative
expenses 2,224 2,398 805 790
Other income (73) (163) (73) -
--------- --------- ---------- ---------
TOTAL OPERATING
EXPENSES 6,253 6,029 2,112 2,060
--------- --------- ---------- ---------
OPERATING INCOME
(LOSS) (5,514) (2,123) (1,929) (317)
--------- --------- ---------- ---------
Interest expense (83) (590) (27) (246)
--------- --------- ---------- ---------
Other Financial
income
(expense), net (144) 138 (24) 52
--------- --------- ---------- ---------
NET COMPREHENSIVE
LOSS FOR THE
PERIOD (5,741) (2,575) (1,980) (511)
========= ========= ========== =========
Net loss per
share
attributable
to common
shareholders
-- basic and
diluted (0.58) $ (0.59) (0.17) $ (0.09)
========= ========= ========== =========
Weighted
average number
of common
stocks used in
computing net
loss per share
-- basic and
diluted 9,824,867 4,429,738 11,787,617 6,014,548
========= ========= ========== =========
The accompanying notes are an integral part of these condensed consolidated financial statements (Unaudited).
ACTELIS NETWORKS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Nine months ended
September 30,
------------------------------
2025 2024
------------- -----------
U.S. dollars in thousands
------------------------------
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net loss for the period (5,741) (2,575)
Adjustments to reconcile
net loss to net cash used
in operating activities:
Depreciation 14 11
Inventories write-downs 140 39
Financial expenses (income) 149 (125)
Share-based compensation 308 259
Changes in operating assets
and liabilities:
Trade receivables 992 (1,164)
Net change in operating
lease assets and
liabilities (28) 12
Inventories (379) 115
Prepaid expenses and other
current assets (178) (140)
Trade payables (258) (875)
Deferred revenues (61) (23)
Other current liabilities (589) (350)
Other long-term liabilities (6) 35
------------ -----------
Net cash used in operating
activities (5,637) (4,781)
------------ -----------
CASH FLOWS FROM INVESTING
ACTIVITIES:
Short term deposits 1 198
Purchase of property and
equipment (5) (1)
------------ -----------
Net cash (used in)/ provided by
investing activities (4) 197
------------ -----------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from issuance of
options 32
Proceeds from issuance common
stock - at the market offering
(ATM) 2,637 -
Offering cost from issuance of
common stock - at the market
offering (ATM) (262) -
Proceeds from issuance of common
stocks and warrants -- July
PIPE 1,000 316
Offering cost from issuance of
common stock and warrants --
July PIPE (161) *
Credit lines with bank, net (675) 927
Proceeds from Warrant inducement
agreement 1,580 5,248
Underwriting commissions and
other offering costs (193) (668)
Proceeds from issuance of common
stocks and pre funded warrants
-- September PIPE 850 -
Offering cost from issuance of
common stocks and pre funded
warrants -- September PIPE (60) -
Proceeds from short term loans 705 -
Repayment of short term loans (300) -
Early repayment of long term
loan - (4,038)
Repayment of long-term loan - (193)
------------ -----------
Net cash provided by financing
activities 5,121 1,624
------------ -----------
EFFECT OF EXCHANGE RATE
CHANGES ON CASH AND CASH
EQUIVALENTS AND RESTRICTED
CASH AND CASH EQUIVALENTS 11 (14)
------------ -----------
DECREASE IN CASH, CASH
EQUIVALENTS AND RESTRICTED
CASH AND CASH EQUIVALENTS (509) (2,974)
------------ -----------
* Represents an amount less than $1 thousand.
The accompanying notes are an integral part of these condensed consolidated financial statements (Unaudited).
(END) Dow Jones Newswires
November 14, 2025 08:00 ET (13:00 GMT)
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