ACTELIS NETWORKS INC SEC 10-Q Report

Actelis Networks Inc., a leading provider of high-performance broadband solutions, has released its Form 10-Q report for the second quarter of 2025. The report reveals significant financial and operational challenges faced by the company, including a notable decline in revenues and increased operational expenses. This summary provides an overview of the key financial and business highlights from the report.

Financial Highlights

• Revenues: $1.7 million, reflecting a significant decline from $4.16 million in the same period last year due to the absence of a large deal and software renewal that occurred in 2024.
• Gross Profit: $0.6 million, down from $2.16 million in the prior year, primarily due to reduced sales volume.
• Operating Income (Loss): $(3.6) million, compared to an operating loss of $(1.8) million in the previous year, driven by consistent operating expenses despite lower sales.
• Net Comprehensive Loss for the period: $(3.8) million, compared to a net loss of $(2.06) million in the prior year, attributed to lower sales and consistent operating expenditures.
• Net loss per share attributable to common shareholders – basic and diluted: $(0.43), compared to $(0.51) in the previous year, reflecting the impact of increased shares outstanding.

Business Highlights

• Geographical Performance: The company experienced a significant decline in revenues from North America, with revenues dropping from $3.46 million in the first half of 2024 to $1.1 million in the same period of 2025. This decline is attributed to a large deal in Washington D.C. in 2024 and a software renewal that will not recur until 2027.
• Geographical Performance: Revenues from Europe, the Middle East, and Africa decreased from $667,000 in the first half of 2024 to $434,000 in the first half of 2025. The Asia Pacific region saw a slight increase in revenues from $27,000 to $128,000 over the same period.
• Sales and Marketing Efforts: The company increased its sales and marketing expenses due to payroll expenses and engaging consultants to expand market reach in Europe and Asia, reflecting a strategic focus on these regions.
• Research and Development Focus: The company increased its research and development expenses, primarily driven by professional services for the GL900 product line and exchange rate differences, indicating ongoing investment in product development.
• Operational Challenges: The company faced operational challenges due to exchange rate fluctuations and increased vacation expenses, which contributed to the increase in operating loss.
• Future Outlook: The company anticipates that its revenues will be more backend loaded in 2025, suggesting a potential recovery or increase in sales in the latter part of the year.
• Operational Strategy: The company is focusing on improving its gross margin through better revenue mix and generating efficiencies, which is crucial for transitioning to profitable operations.

SEC Filing: ACTELIS NETWORKS INC [ ASNS ] - 10-Q - Aug. 14, 2025