Actelis Networks CEO Issues Letter to Shareholders
Rhea-AI Summary
Actelis Networks (NASDAQ: ASNS) CEO Tuvia Barlev reviewed 2025 challenges and outlined 2026 priorities, highlighting demand for cyber-hardened, rapid-deployment networking at the edge. The letter cites recent government-tailwinds including FAA modernization funding and national-security-driven cybersecurity needs, and notes Actelis products carry DoD Approved Products List status and JITC certification. 2025 progress includes federal project announcements, a major U.S. carrier deployment across more than 20 states, an ultra-low-power MDU product and first commercial MDU deployment, and a December 2025 financing/ offering to preserve optionality. 2026 focus: execution, margin expansion, and converting pipeline opportunities into repeat business.
Positive
- DoD Approved Products List listing and JITC certification
- Major U.S. carrier deployment across more than 20 states
- Launched ultra-low-power MDU solution with first commercial deployment
- Completed December 2025 offering and secured additional financing facilities
Negative
- Share price declined meaningfully through 2025, per CEO statement
- Target markets have long procurement cycles causing quarter-to-quarter variability
- Several opportunities shifted timing into 2026, delaying revenue recognition
News Market Reaction
On the day this news was published, ASNS declined 8.08%, reflecting a notable negative market reaction. Argus tracked a trough of -15.2% from its starting point during tracking. Our momentum scanner triggered 9 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $353K from the company's valuation, bringing the market cap to $4M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
ASNS was down 4.04% while peers were mixed: CLRO +3.26%, SONM +9.71%, SYNX -6.67%, MITQ -7.32%, UTSI -1.22%. The lack of a consistent direction across peers and an empty momentum scanner suggest this move was stock-specific rather than a sector-wide rotation.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 17 | Equity offering | Negative | -16.7% | Dilutive $5M public offering with warrants at $0.80 per share. |
| Dec 17 | Strategic partnership | Positive | -16.7% | IPTV partnership to use hybrid fiber-coax for RF-only facilities. |
| Dec 12 | Commercial order | Positive | -7.5% | First hotel order for GigaLine hospitality solution after new partnership. |
| Dec 09 | Listing compliance | Positive | +8.9% | Regained Nasdaq $1.00 bid-price compliance, resolving listing issue. |
| Dec 08 | Deployment win | Positive | +2.9% | First meaningful MetaLIGHT 650SV deployment with major U.S. carrier. |
Recent history shows negative reactions to financings and frequent selloffs even on seemingly positive commercial news, alongside occasional bounces on listing/compliance milestones.
Over the last few months, Actelis reported several operational and financing events. On Dec 8–12, 2025, it highlighted a major U.S. carrier deployment and its first hotel order, but shares fell 7.52% after the hotel news despite the growth narrative. A $5.0M public offering priced on Dec 17, 2025 coincided with a -16.67% move, reflecting dilution pressure. In contrast, regaining Nasdaq bid-price compliance on Dec 9, 2025 saw an 8.93% gain. Today’s shareholder letter stressing positioning and tailwinds arrives against this backdrop of dilution, low price, and mixed reactions to prior positive updates.
Market Pulse Summary
The stock moved -8.1% in the session following this news. A negative reaction despite the CEO’s focus on tailwinds and positioning fits a pattern where the stock has struggled around good news, especially following dilutive offerings and going‑concern disclosures. The letter references large funding programs, but prior results showed modest revenue and sizeable losses, which may continue to dominate sentiment. In such a scenario, concerns about execution, long sales cycles, and the need for additional capital could outweigh the strategic narrative laid out for 2026.
Key Terms
macsec encryption technical
u.s. department of defense approved products list regulatory
jitc certification regulatory
nist regulatory
fips regulatory
t1 infrastructure technical
AI-generated analysis. Not financial advice.
Outlining the Company’s Progress and Outlook
SUNNYVALE, Calif, Jan. 13, 2026 (GLOBE NEWSWIRE) -- Actelis Networks, Inc. (NASDAQ: ASNS), a market leader in cyber-hardened, rapid-deployment networking solutions for IoT and broadband applications, today shared the following letter from the Company’s Chairman and Chief Executive Officer, Tuvia Barlev, to provide shareholders with perspective on the Company’s position, progress, and the opportunities ahead.
Dear Shareholders,
I am writing to you as we close a year that tested our resolve, while also sharpening our focus and strengthening our positioning for the future. The first three quarters of 2025 we reported have been challenging for Actelis and for our shareholders. Broader geopolitical developments and U.S. government dynamics affected our markets, and our share price declined meaningfully during this period as well as in the fourth quarter of 2025 — something we recognize and take very seriously.
That said, I believe we are entering 2026 with improved internal fundamentals and increasingly favorable external market conditions that together may represent an inflection point for the Company.
Over the past several years, Actelis deliberately focused its go-to-market strategy on three core verticals: Defense, Smart Transportation, and Multi-Dwelling Units (MDUs). During this time, the global infrastructure landscape has changed materially. The rapid expansion of AI- and cloud-driven automation, the growing need to extend these capabilities securely to the network edge, and heightened geopolitical tensions have all converged to drive unprecedented investment in modern, cyber-resilient infrastructure with a sense of urgency.
As of the end of 2025, Actelis finds itself at the intersection of three powerful infrastructure forces: the expansion of AI and cloud capabilities to the edge, rising cyber-security requirements for critical infrastructure, and accelerated defense and federal modernization initiatives. These dynamics are no longer theoretical. They are urgent, well-funded, and directly aligned with our technology, our customer success stories, and our market focus. I would like to share how we see these tailwind forces shaping our opportunity ahead.
Urgency Is Driving Infrastructure Modernization
Across multiple infrastructure sectors, modernization is no longer discretionary—it is essential. Aviation is one clear example. In late 2024, following significant air traffic disruptions, the U.S. Congress approved more than
These initiatives prioritize rapid deployment, cyber resilience, and the ability to modernize existing infrastructure without prolonged construction timelines or operational disruption. This is precisely the environment in which Actelis has established a differentiated position. During 2025, we announced multiple government-related modernization projects, including with the FAA, demonstrating our ability to modernize live infrastructure quickly and securely.
Our customers value that Actelis solutions enable immediate upgrades—transforming existing copper and coaxial wiring into reliable, fiber-grade, cyber-hardened connectivity without the many months of delays and costs associated with new fiber construction.
Geopolitics Has Redefined Secure Connectivity as a National-Security Priority
At the same time, the strategic importance of communications infrastructure has fundamentally shifted. Over the past two years, U.S. intelligence agencies have publicly detailed sustained state-sponsored cyber campaigns targeting telecommunications providers and critical infrastructure.2 Operations such as Salt Typhoon and Volt Typhoon revealed that adversaries were not merely probing networks, but in some cases establishing persistent access to systems supporting power grids, transportation, water, and communications infrastructure.3 The 2025 Intelligence Community Threat Assessment identified several active and ongoing cyber threats to U.S. networks.4
As a result, connectivity is increasingly viewed not only through the lens of performance or cost, but as part of the national-security perimeter. Cyber-hardening at the edge has become a prerequisite for modernization, and delays in upgrading vulnerable infrastructure are no longer acceptable.
Actelis’ solutions were built for this reality. Our products incorporate MACsec encryption and multiple additional security layers, are listed on the U.S. Department of Defense Approved Products List, and carry JITC certification for cybersecurity and interoperability. They also comply with applicable NIST and FIPS standards, as previously disclosed by the Company. What once differentiated our technology has increasingly become a baseline requirement—positioning Actelis with a strong and defensible competitive edge.
Smart Transportation, Residential, and Hospitality Infrastructure Are Modernizing Now
Actelis delivers gigabit-class performance over existing copper and coaxial infrastructure, enabling deployments that can be completed in days rather than months, and at a fraction of the cost of full fiber rewiring. This hybrid approach is already operating across hundreds of smart-city deployments worldwide, supporting intelligent transportation systems, utilities, rail, highways, and aviation infrastructure.
In the United States, federal transportation safety and modernization programs represent more than an estimated
In parallel, the
2025: Positioning the Company for Scale
While our target markets are large and well-funded, they are also characterized by long procurement cycles and phased rollouts (and sometimes government shut-downs), particularly in federal, carrier, and large infrastructure programs. These dynamics can create quarter-to-quarter variability, even as long-term opportunity continues to build.
During 2025, we focused on laying the groundwork for growth in 2026 by:
- Expanding and completing our product portfolio across fiber, copper, MDU solutions, management software, and cybersecurity offerings.
- Strengthening our U.S. federal sales organization with the addition of a new Chief Revenue Officer and Director of Sales, both bringing deep federal-market experience.
- Building customer wins, partnerships, and reference deployments across all target verticals to support expansion in 2026.
- Expanding federal access and channel relationships while introducing operational efficiencies and cost reductions to better focus resources on sales and marketing.
- Ensuring continued listing, operational flexibility, and financial optionality, including our December 2025 offering and additional financing facilities.
- Maintaining momentum on opportunities that shifted timing from prior quarters, which we believe remain active and relevant for 2026.
Looking Ahead to 2026
As we enter 2026, we believe Actelis is increasingly aligned with the structural forces shaping the future of global connectivity. Federal, military, state, and transportation modernization programs are advancing. Operators face growing pressure to modernize legacy infrastructure to support AI and cloud applications at the edge, while meeting rising security and resiliency requirements.
Our focus in 2026 is execution and growth: converting initial wins into repeat business, expanding deployments within approved customer footprints, increasing software contribution to improve margins, and delivering consistent progress—even when the precise timing of individual deals remains outside our control. Our pipeline includes opportunities we cannot yet discuss publicly, but we are encouraged by the depth and breadth of ongoing customer engagement.
I look forward to a year targeting growth and improved profitability, built on the foundation we have established: differentiated technology, proven deployments across critical infrastructure, and alignment with urgent, well-funded modernization priorities. These are among the strongest market tailwinds I can recall in my career.
Thank you for your continued support.
Sincerely,
Tuvia Barlev
Chairman and Chief Executive Officer
Actelis Networks, Inc.
About Actelis Networks, Inc.
Actelis Networks, Inc. (NASDAQ: 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.
Forward-looking Statements
This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are identified by the use of the words "could," "believe," "anticipate," "intend," "estimate," "expect," "may," "continue," "predict," "potential," "project," “looking forward,” and similar expressions that are intended to identify forward-looking statements. All forward-looking statements speak only as of the date of this press release. You should not place undue reliance on these forward-looking statements. Although we believe that our plans, objectives, expectations and intentions reflected in or suggested by the forward-looking statements are reasonable, we can give no assurance that these plans, objectives, expectations or intentions will be achieved. Forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from historical experience and present expectations or projections. Actual results to differ materially from those in the forward-looking statements and the trading price for our common stock may fluctuate significantly. Forward-looking statements also are affected by the risk factors described in the Company's filings with the U.S. Securities and Exchange Commission. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
Investor Relations Contact
Arx Investor Relations
North American Equities Desk
actelis@arxhq.com
3 (I) https://eclypsium.com/blog/cisa-fbi-salt-typhoon-guidance (II) https://globalcyberalliance.org/wp-content/uploads/2025/12/PUBLIC-REPORT-Salt-Typhoon-Across-the-Internet.pdf
4 https://www.cisa.gov/news-events/cybersecurity-advisories/aa23-144a
5 Based on aggregated U.S. federal transportation modernization programs, including approximately
6 https://www.ntia.gov/program/broadband-equity-access-and-deployment-bead-program
FAQ
What did Actelis (ASNS) say about its 2025 performance and share price on Jan 13, 2026?
What certifications and government approvals does Actelis (ASNS) cite in the Jan 13, 2026 letter?
What commercial deployments did Actelis (ASNS) announce by Dec 2025?
How is Actelis (ASNS) positioning for 2026 growth according to the Jan 13, 2026 letter?
Did Actelis (ASNS) raise financing in late 2025?
