Actelis Networks Reports Second Quarter 2026 Financial Results and Provides Business Update
Rhea-AI Summary
Actelis Networks (OTCQB: ASNS) reported second quarter 2026 revenue of $1.1 million, up 20% year over year, with gross margin rising to 51% from 32% in Q2 2025 and 25% in Q1 2026. First-half 2026 revenue reached $2.1 million, a 26% increase.
Q2 operating loss narrowed to $1.6 million from $1.8 million, and net loss improved to $1.4 million (−$0.05 per share) from $1.9 million (−$2.08). Adjusted EBITDA loss was about $1.5 million, versus $1.7 million a year earlier. Cash, cash equivalents and restricted cash totaled $5.8 million at June 30, 2026, up from $4.4 million at year-end 2025, while shareholders’ equity increased to $7.2 million from $4.8 million.
The company implemented cost and efficiency actions expected to generate about $1 million in annualized savings, renewed a $0.85 million software and services contract with a leading North American carrier, secured a roughly $200,000 GL800 order in Central Europe, and continued expanding in intelligent transportation and carrier markets. Actelis also progressed structural steps to support a potential future relisting on Nasdaq, including shareholder authorization for a 1-for-10 to 1-for-25 reverse stock split and an amended equity line of credit of up to $30 million.
Positive
- Revenue +20% YoY to $1.1M in Q2 2026
- Gross margin expanded to 51% from 32% in Q2 2025
- Operating loss narrowed to $1.6M from $1.8M YoY
- Net loss improved to $1.4M from $1.9M in Q2 2025
- Cash and restricted cash increased to $5.8M from $4.4M
- Annualized cost savings of about $1M from efficiency actions
- $0.85M software and services renewal with a leading North American carrier
- Approx. $200K GL800 order from a Central European carrier
- Equity line of credit capacity of up to $30M amended July 1, 2026
Negative
- Q2 2026 net loss of $1.4M and Adjusted EBITDA loss of $1.5M
- First-half 2026 net loss of $3.8M unchanged versus first half 2025
- Unfavorable FX impact of about $150K in Q2 and $280K in H1 2026
- Financial expense H1 2026 of $0.4M, including $0.6M ELOC commitment fee
- Equity line commitment fee liability of $625K on June 30, 2026
- Continued trading on OTCQB rather than Nasdaq during the period
News Explained
A larger share base can reduce existing holders’ percentage ownership; the reverse split remains authorized, and the equity line is only an up-to-$30 million capacity.
Actelis Networks reported second-quarter results; its reverse split remains authorized but unimplemented, its equity line is described as capacity of up to
The company also says its June 16 memorandum of understanding with Exaware replaced a previously disclosed acquisition term sheet, describing an ongoing strategic collaboration rather than a completed acquisition.
A reverse stock split would consolidate shares and proportionally raise the per-share price, while issuing additional shares would reduce an existing holder’s percentage ownership absent offsetting changes.
The reported common-share count was
The relevant follow-up is whether the Board implements the authorized 1-for-10 to 1-for-25 reverse split and whether the equity line is subsequently used, because those steps would determine the resulting share count and ownership mechanics.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 14 | Q1 earnings report | Positive | +2.6% | Revenue grew 33%, but margin declined and losses remained elevated. |
| Mar 18 | FY2025 earnings report | Positive | +7.0% | Fourth-quarter rebound improved revenue and margin despite full-year revenue decline. |
| Nov 14 | Q3 earnings report | Neutral | -8.6% | Bookings and backlog strengthened while quarterly revenue and margin weakened. |
| Aug 14 | Q2 earnings report | Negative | -17.9% | Revenue fell year over year as net loss rose and margin compressed. |
| May 13 | Q1 earnings report | Positive | -4.9% | Margins and loss per share improved, but the stock declined afterward. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings-tagged events produced mixed but negative-skewed reactions, with 2 positive and 3 negative 24-hour moves and a -4.35% average move.
Key Terms
adjusted ebitda financial
equity line of credit financial
reverse stock split financial
pre-funded warrants financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Revenues were up
New wins across Intelligent Transportation Systems (ITS), U.S. carriers, and multi-dwelling unit (MDU) markets
Company continues to implement operational efficiencies and cost reduction as well as other steps in support of effort to relist on Nasdaq
SUNNYVALE, Calif., Aug. 13, 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 second quarter ended June 30, 2026.
“During the second quarter, Actelis continued to execute our 2026 plan – increase our partner network and penetration into Federal and Military base modernization opportunities, expand our footprint with new offerings in the Intelligent Transportation vertical, driving recurring software and services revenue with U.S. carriers, and building traction in the multi-dwelling and hospitality markets with our GL9000 platform,” said Tuvia Barlev, Chairman and Chief Executive Officer of Actelis Networks. “Better revenue mix and continued cost discipline drove a meaningful improvement in gross margin this quarter - expanding to
Business and Financial Highlights
- Revenue growth and gross margin expansion. Second quarter 2026 revenue was
$1.1 million , representing a20% year-over-year increase compared to$0.9 million in the second quarter of 2025. Year-to-date revenues were$2.1 million , a26% increase compared to the first six months of 2025.Gross margin grew to51% in the second quarter of 2026, compared to32% in the second quarter of 2025 and25% in the first quarter of 2026, reflecting an improved software and services mix. - Cost and operational-efficiency actions. Actelis executed additional cost-reduction and operational-efficiency initiatives during the period, including facility downsizing, vendor consolidation, outsourcing of certain finance functions and other services generating future savings of approximately
$1 million on an annualized basis, which will impact future quarters. The Company also continued the internal deployment of AI-based tools intended to expand productivity across the organization. - Structural steps in support of relisting on Nasdaq. The Company’s goal is to return to Nasdaq at the appropriate time. Consequently, the Company continues to advance the steps its shareholders have authorized for that purpose, including the reverse stock split within a range of 1-for-10 to 1-for-25 approved by shareholders at its special meeting in April 2026, which the Board of Directors may implement in its discretion at any time for a period of one year from the date of the special meeting. In addition, subsequent to quarter end, on July 1, 2026, the Company successfully amended its equity line of credit, with a capacity of up to
$30M as a result of its transition to be traded on OTCQB in order to serve the Company better for that goal. The Company’s focus remains on executing its business plan and demonstrating operational and financial progress as the foundation for a future uplisting application. - Software and services renewal. Delivered a
$0.85 million software and services renewal from a leading North American carrier, including a version upgrade of the Company’s Meta-Assist Element Management System (EMS) and continued adoption of the Company’s MetaLIGHT solution for converting legacy T1 lines to fiber-grade connectivity. - Continued expansion in ITS markets. Received multiple follow-on orders from the Washington, D.C. Department of Transportation and new orders for deployments across U.S. state, county, and municipal transportation agencies, including a new order supporting an intelligent transportation system project with the Alaska Department of Transportation.
- GL800 traction in Europe and beyond. Received an approximately
$200,000 order from a Central European carrier for the Company’s GL800 multi-Gigabit hybrid fiber-copper solution, supporting gigabit-level connectivity over copper to small-office / home-office (SOHO) customers within multi-dwelling unit buildings. Customer interest in the unique GL800 platform continues to grow across military and smart-city applications. - Cyber-hardening and EU Cyber Resilience Act (CRA) tailwind. The Company’s cyber-hardening capabilities - embedded in its Meta-Assist EMS and in its edge products - are becoming more valuable to customers as the EU Cyber Resilience Act approaches implementation, supporting software and hardware upgrade opportunities and update cyber-safety related service with Actelis’ installed base and with new deployments.
- Strategic collaboration with Exaware. On June 16, 2026, entered into a Memorandum of Understanding with Exaware Routing Ltd. to preserve strategic collaboration across data center, telecom, federal and local government, and critical infrastructure markets. The Memorandum of Understanding replaced the parties’ previously disclosed acquisition term sheet.
Second Quarter and First Half 2026 Financial Results
Revenues for the second quarter of 2026 were
Cost of revenues was
Gross profit was
Research and development expenses were
Sales and marketing expenses were
General and administrative expenses were
Operating loss for the second quarter of 2026 was
Financial income (expense), net, for the second quarter of 2026 was net income of
Net loss for the second quarter of 2026 was
Adjusted EBITDA loss, a non-GAAP measurement of operating performance (reconciled below to Net Loss), for the second quarter of 2026 was approximately
Balance Sheet Highlights
As of June 30, 2026, the Company had cash, cash equivalents, and 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 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” 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, including, without limitation, expectations regarding future revenue growth, gross margin, demand across the Company’s ITS, carrier, MDU, federal and military verticals, the timing and extent of cost-reduction and operational-efficiency initiatives, the impact of foreign-exchange movements on the Company’s results, the potential benefits of, and demand associated with, the EU Cyber Resilience Act, the Company’s collaboration with Exaware, the timing, ratio, and effect of any future reverse stock split, and the Company’s ability to satisfy the initial listing standards for The Nasdaq Capital Market or any other national securities exchange. Actual results may 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, including the Company’s Annual Report on Form 10-K filed on March 18, 2026 and its Quarterly Reports on Form 10-Q. 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
ACTELIS NETWORKS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(U. S. dollars in thousands, except for share amount)
| June 30, 2026 | December 31, 2025 | |
| Assets | ||
| CURRENT ASSETS: | ||
| Cash and cash equivalents | 5,748 | 4,057 |
| Restricted cash and bank deposits | 66 | 381 |
| Trade receivables, net of allowance for credit losses of | 1,371 | 1,058 |
| Inventories | 2,291 | 2,461 |
| Prepaid expenses and other current assets | 582 | 634 |
| TOTAL CURRENT ASSETS | 10,058 | 8,591 |
| NON-CURRENT ASSETS: | ||
| Property and equipment, net | 108 | 26 |
| Prepaid expenses and other | 458 | 459 |
| Restricted bank deposits | 30 | 30 |
| Funds in respect of employee rights upon retirement | 191 | 264 |
| Operating lease right-of-use assets | 452 | 69 |
| Long-term deposits | 63 | 91 |
| TOTAL NON-CURRENT ASSETS | 1,302 | 939 |
| TOTAL ASSETS | 11,360 | 9,530 |
ACTELIS NETWORKS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (continued)
UNAUDITED
(U. S. dollars in thousands)
| June 30, 2026 | December 31, 2025 | |
| Liabilities and shareholders’ equity | ||
| CURRENT LIABILITIES: | ||
| Credit line | 8 | 479 |
| Short-term loan | - | 350 |
| Trade payables | 368 | 817 |
| Deferred revenues | 480 | 223 |
| Employee and employee-related obligations | 701 | 624 |
| Accrued royalties | 735 | 612 |
| Current maturities of operating lease liabilities | 294 | 14 |
| Other current liabilities | 375 | 373 |
| TOTAL CURRENT LIABILITIES | 2,961 | 3,492 |
| NON-CURRENT LIABILITIES: | ||
| Long-term loan | 150 | 150 |
| Deferred revenues | 14 | 20 |
| Operating lease liabilities | 174 | 23 |
| Liability for employee rights upon retirement | 221 | 292 |
| Liability for commitment fee under ELOC agreement | 625 | - |
| Pre-funded Warrants Liability | - | 750 |
| Other long-term liabilities | 5 | 6 |
| TOTAL NON-CURRENT LIABILITIES | 1,189 | 1,241 |
| TOTAL LIABILITIES | 4,150 | 4,733 |
| COMMITMENTS AND CONTINGENCIES (Note 5) | ||
| SHAREHOLDERS’ EQUITY: | ||
| Common stock, | 1 | 1 |
| Non-voting common stock, | - | - |
| Additional paid-in capital | 63,381 | 57,119 |
| Accumulated deficit | (56,172) | (52,323) |
| TOTAL SHAREHOLDERS’ EQUITY | 7,210 | 4,797 |
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 11,360 | 9,530 |
The accompanying notes are an integral part of these condensed consolidated financial statements.
ACTELIS NETWORKS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(UNAUDITED)
(U. S. dollars in thousands)
| Six months ended June 30, | Three months ended June 30, | |||
| 2026 | 2025 | 2026 | 2025 | |
| REVENUES | 2,090 | 1,662 | 1,132 | 941 |
| COST OF REVENUES | 1,276 | 1,106 | 553 | 636 |
| GROSS PROFIT | 814 | 556 | 579 | 305 |
| OPERATING EXPENSES: | ||||
| Research and development expenses | 1,347 | 1,356 | 658 | 675 |
| Sales and marketing expenses | 1,441 | 1,366 | 766 | 700 |
| General and administrative expenses | 1,471 | 1,419 | 737 | 703 |
| TOTAL OPERATING EXPENSES | 4,259 | 4,141 | 2,161 | 2,078 |
| OPERATING LOSS | (3,445) | (3,585) | (1,582) | (1,773) |
| Interest expense | (120) | (56) | (106) | (22) |
| Other Financial income (expense), net | (284) | (120) | 295 | (106) |
| NET COMPREHENSIVE LOSS FOR THE PERIOD | (3,849) | (3,761) | (1,393) | (1,901) |
| Net loss per share attributable to common shareholders – basic and diluted | (0.19) | (4.26) | (0.05) | (2.08) |
| Weighted average number of common shares used in computing net loss per share – basic and diluted | 20,753,201 | 883,744 | 25,814,769 | 914,413 |
The accompanying notes are an integral part of these condensed consolidated financial statements.
ACTELIS NETWORKS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED) (U. S. dollars in thousands)
| Six months ended June 30, | ||
| 2026 | 2025 | |
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||
| Net loss for the period | (3,849) | (3,761) |
| Adjustments to reconcile net loss to net cash used in operating activities: | ||
| Depreciation | 7 | 12 |
| Inventories write-downs | 38 | 92 |
| Financial expenses | 65 | 106 |
| Share-based compensation | 138 | 129 |
| Liability for commitment fee under ELOC agreement | 625 | - |
| Change in fair value of pre-funded warrant liability | (530) | - |
| Changes in operating assets and liabilities: | ||
| Trade receivables, net | (314) | 673 |
| Net change in operating lease assets and liabilities | 48 | (17) |
| Inventories | 132 | (150) |
| Prepaid expenses and other current assets | 53 | (57) |
| Other Non Current Asset | 75 | |
| Trade payables | (450) | 39 |
| Deferred revenues | 252 | 61 |
| Other current liabilities | 144 | (343) |
| Other long-term liabilities | (72) | (2) |
| Net cash used in operating activities | (3,638) | (3,218) |
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||
| Short-term deposits | 10 | 1 |
| Long-term deposit | 28 | - |
| Purchase of property and equipment | (89) | (5) |
| Net cash provided by (used in) investing activities | (51) | (4) |
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||
| Proceeds from issuance common stock – ATM | 7,311 | 2,100 |
| Offering cost from issuance of common stock – ATM | (368) | (223) |
| Credit lines with bank, net | (472) | (539) |
| Proceeds from short-term loans | - | 305 |
| Repurchase of common stock for retirement | (1,039) | - |
| Repayment of short-term loan | (350) | - |
| Net cash provided by financing activities | 5,082 | 1,643 |
| EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS | (7) | 7 |
| INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS | 1,386 | (1,572) |
| 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 | 5,748 | 695 |
The accompanying notes are an integral part of these condensed consolidated financial statements (Unaudited).
Non-GAAP Financial Measures
| (U.S. dollars in thousands) | Six months Ended June 30, 2026 | Six months Ended June 30, 2025 | Three months Ended June 30, 2026 | Three months Ended June 30, 2025 |
| Revenues | ||||
| GAAP net loss | (3,849) | (3,761) | (1,393) | (1,901) |
| Interest expense | 120 | 56 | 106 | 22 |
| Other financial expenses (income), net | 284 | 120 | (295) | 106 |
| Tax expense | - | (29) | - | 3 |
| Fixed asset depreciation expense | 7 | 12 | 5 | 6 |
| Share based compensation | 138 | 129 | 68 | 50 |
| Non-GAAP Adjusted EBITDA | (3,300) | (3,473) | (1,509) | (1,714) |
| GAAP net loss margin | (184.2)% | (228.1)% | (123.1)% | (205.1)% |
| Adjusted EBITDA margin | (157.9)% | (208.9)% | (133.3)% | (182.2)% |
