SUNNYVALE, Calif, March 18, 2026 (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 its financial results for the full year ended December 31, 2025, and provided business and corporate updates. Revenues for the fourth quarter of 2025 were approximately $1.4 million, representing an increase of 113% from $0.64 million in the third quarter of 2025. For the full year 2025, revenues were $3.7 million, compared to $7.8 million in the prior year. The decrease was primarily driven by two large deals in 2024 that did not repeat in 2025. In addition, the Company experienced a challenging operating environment, primarily due to a prolonged U.S. government shutdown that impacted budgeting and timelines. Despite these headwinds, the Company exited the year with a strong fourth quarter performance, reflecting improved revenue conversion from projects developed earlier in the year and continued wins across federal, transportation, utilities, and telecom markets.
"While 2025 was a challenging year across our sector, we exited the year with clear operational momentum," said Tuvia Barlev, Chief Executive Officer of Actelis. "Fourth quarter revenue more than doubled sequentially compared to the third quarter while gross margin improved as well, and fourth quarter revenue exceeded each of the prior quarters of the year despite ongoing uncertainties and delays related, among other things, to the U.S. government shutdown. At the same time, we continued to expand our footprint across federal, transportation, multi-dwelling unit $(MDU)$ networks while advancing our cost discipline initiatives and pursuing opportunities for inorganic growth. In recent months, our share price has experienced significant pressure despite the operational progress we continue to make. We believe Actelis is positioned at the intersection of several powerful infrastructure trends, including AI-driven bandwidth demand growth, federal modernization programs - many of which have been funded at tens of billions of dollars by the U.S. government - and increasing cybersecurity requirements for critical networks. We see our solutions as uniquely suited to enable rapid, cyber-hardened infrastructure deployment at a fraction of the cost of traditional alternatives."
Business and Financial Highlights
-- Strong Fourth Quarter Performance: Actelis delivered improved results in
the fourth quarter of 2025 compared to the third quarter, with revenue
increasing to $1.37 million, representing growth of 113% sequentially and
exceeding revenue in each of the prior quarters of the year. Fourth
quarter revenue also increased by 29% compared to the fourth quarter of
2024, driven by improved revenue conversion from projects developed
earlier in the year. Gross margin in the fourth quarter improved to 35%,
compared to 28% in the third quarter.
-- Continued Execution of Cost Reduction Plan: Actelis continued to
implement its cost reduction plan throughout 2025, working to improve
operational efficiency while maintaining investment in strategic
initiatives. 2025 Operating expenses increased by $0.3 million compared
to 2024 from foreign exchange rate differences and a one-time grant of
$0.16 million in 2024, masking the reductions achieved. The Company
expects the benefits of these measures to become more visible during
2026.
-- Momentum in Intelligent Transportation Systems Sector: Actelis continues
to see increasing demand for its solutions as transportation
infrastructure modernization and expansion initiatives accelerate.
Notable projects during the year included traffic and transportation
infrastructure modernization deployments in Orange County, California,
Eugene, Oregon, and Mid-Atlantic county transportation systems, Caltrans,
ity of Cincinnati, Japanese authorities, along with follow-on orders
supporting smart traffic and connectivity infrastructure upgrades. These
deployments build on Actelis' growing installed base supporting traffic
management systems, rail infrastructure, and broader smart infrastructure
modernization projects.
-- Expansion of Federal and Defense Market Opportunities: During 2025,
Actelis strengthened its federal and defense market presence through
leadership additions and growing pipeline engagement. The Company secured
deployments supporting U.S. military base connectivity modernization and
Federal Aviation Authority infrastructure initiatives, while expanding
its federal sales capabilities to pursue larger modernization programs
across defense and critical infrastructure agencies and building a
growing pipeline of federal opportunities through Programs of Record.
-- Expansion Across Carrier and Broadband Infrastructure with a focus on
MDUs: Actelis secured multiple deployments supporting telecom operators
and broadband infrastructure providers during the year, including
deployments with a Tier-2 UK carrier, a Southern European operator
implementing cybersecurity upgrades, and infrastructure modernization
supporting legacy network transitions such as T1-to-fiber upgrades with a
major U.S. carrier.
-- New Product and Offering: The Company also expanded opportunities in MDU
connectivity markets, supported by the completion of its MDU product
family development in 2025, allowing the Company to secure deployments
supporting fiber grade networks in hotels and sports venues. The Company
also created a new cyber vulnerability monitoring services offering,
supporting customer networks through cyber compliance and proactive risk
management.
Financial Results for the Twelve Months Ended December 31, 2025
Revenues: Our revenues for the year ended December 31, 2025 amounted to $3.7 million, compared to $7.8 million for the year ended December 31, 2024. The decrease was primarily attributable to the timing of customer deployments and project execution across infrastructure markets, including federal, carrier and large infrastructure programs which typically involve long procurement and rollout cycles.
Cost of Revenues: Our cost of revenues for the year ended December 31, 2025 amounted to $2.5 million, compared to $3.5 million for the year ended December 31, 2024. The decrease from the corresponding period was primarily attributable to lower revenue levels during the year.
Research and Development (R&D) Expenses: Our R&D expenses for the year ended December 31, 2025 amounted to $2.6 million, compared to $2.4 million for the year ended December 31, 2024. The increase is due to the strengthening of the Israeli shekel against the U.S. dollar which led to an increase in expenditure by approximately $0.15 million.
Sales and Marketing Expenses: Our sales and marketing expenses for the year ended December 31, 2025 amounted to $2.9 million, compared to $2.6 million for the year ended December 31, 2024. The increase was primarily attributable to engaging consultants to expand market reach in primarily the government sector.
General and Administrative Expenses: Our general and administrative expenses for the year ended December 31, 2025 amounted to $2.9 million, compared to $3.2 million for the year ended December 31, 2024. The decrease was primarily attributable to cost reduction measures taken, while these benefits were offset by higher costs driven by the strengthening of the Israeli shekel against the U.S. dollar.
Other Income: Our other income for the year ended December 31, 2025 was negligible, compared to $0.16 million for the year ended December 31, 2024. The prior year amount was primarily attributable to a government grant received from the State of Israel associated with the Iron Swords war.
Operating Loss: Our operating loss for the year ended December 31, 2025 was $7.2 million, compared to $3.8 million for the year ended December 31, 2024. The increase was mainly due to the decline in sales, while operating expenditure remained consistent and increased operating expenses by $0.3 million driven by the strengthening of the Israeli shekel against the U.S. dollar by approximately 7%.
Financial (Expenses) income, Net: Our financial expenses, net for the year ended December 31, 2025 amounted to approximately $1.1 million, compared to $0.62 million for the year ended December 31, 2024. The increase is mainly due to expenditure of $0.75 million related to the Commitment Fee under the Common Stock Purchase Agreement payable in common shares issuance.
Net Loss: Our net loss for the year ended December 31, 2025 was $8.3 million, compared to a net loss of $4.4 million for the year ended December 31, 2024. This increase was primarily attributable to lower sales while operating expenditure remained consistent, as well as due to a one-time financial commitment expenditure of $0.75 million. In addition, the Israeli shekel strengthened by an average of 7% against the U.S. dollar, leading to higher operating expenses and contributing to increase in net loss.
Adjusted EBITDA: Adjusted EBITDA (non-GAAP) was a loss of $6.9 million for the year ended December 31, 2025, compared to a loss of $3.5 million for the year ended December 31, 2024. The higher loss reflects lower revenues during the year, partially offset by cost reduction initiatives and improved operating efficiencies implemented during 2025.
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