Eltek Ltd. Reports Second-Quarter 2026 Results

Rhea-AI Summary

Eltek (NASDAQ: ELTK) reported second-quarter 2026 revenues of $11.5 million, down from $12.5 million a year earlier, and a GAAP net loss of $2.7 million, or $0.41 per diluted share, versus net income of $0.4 million in Q2 2025.

Gross result swung to a $1.0 million loss from $3.0 million profit, and operating results shifted from $1.5 million profit to a $2.5 million loss. Q2 EBITDA was a $1.9 million loss compared with $2.0 million EBITDA in 2025. For the first six months of 2026, revenues were $22.0 million (vs. $25.3 million), with a net loss of $5.6 million versus $1.4 million net profit a year earlier.

Eltek reported $9.4 million in cash and cash equivalents at June 30, 2026 and positive Q2 operating cash flow of $0.7 million, while continuing investments in new production lines and an ERP system to support future operations.

Positive

• Q2 2026 operating cash flow positive $0.7 million versus negative $2.9 million in Q2 2025
• Cash and cash equivalents increased to $9.4 million at June 30, 2026 from $2.5 million at December 31, 2025
• Financial expenses Q2 2026 decreased to $0.7 million from $1.0 million in Q2 2025
• Trade receivables declined to $11.7 million from $14.8 million, reducing working capital exposure
• Inventories fell to $10.3 million from $11.2 million since year-end 2025, helping free cash

Negative

• Q2 2026 revenues declined to $11.5 million from $12.5 million year over year
• Gross result Q2 2026 shifted to a $1.0 million loss from $3.0 million profit
• Q2 2026 net loss was $2.7 million versus $0.4 million net income in Q2 2025
• First-half 2026 revenues decreased to $22.0 million from $25.3 million in 2025
• First-half 2026 EBITDA loss of $4.6 million versus $3.1 million EBITDA a year earlier
• Accumulated deficit widened to $6.7 million at June 30, 2026 from $1.1 million at December 31, 2025

News Explained

Eltek says its manufacturing transition is not complete: the new PCB plating line is still being installed and acceptance-tested, while qualification is expected to begin in the third quarter, making that qualification a future milestone rather than a completed operating change.

Market Context

Short interest was categorized as low, adding little evidence of elevated positioning around this ea...

Analysis

Short interest was categorized as low, adding little evidence of elevated positioning around this earnings report. That context leaves the operating loss and manufacturing transition as the central record, with production-line qualification a key watch item.

Key Figures

Q2 Revenue: $11.5 million Gross Loss: $1.0 million Operating Loss: $2.5 million +5 more

8 metrics

Q2 Revenue $11.5 million Q2 2026, compared with $12.5 million in Q2 2025

Gross Loss $1.0 million Q2 2026, compared with $3.0 million gross profit in Q2 2025

Operating Loss $2.5 million Q2 2026, compared with $1.5 million operating profit in Q2 2025

Net Loss $2.7 million or $0.41 per fully diluted share Q2 2026, compared with $0.4 million net income or $0.05 per share in Q2 2025

Operating Cash Flow $0.7 million Q2 2026 net cash provided by operating activities

EBITDA Loss $1.9 million Q2 2026, compared with $2.0 million EBITDA in Q2 2025

Six-Month Revenue $22.0 million First six months of 2026, compared with $25.3 million in 2025

Six-Month Net Loss $5.6 million or $0.83 per fully diluted share First six months of 2026, compared with $1.4 million net profit or $0.20 per share in 2025

Historical Context

5 past events · Latest: Aug 11 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Aug 11	Earnings date notice	Neutral	+0.1%	Company scheduled second-quarter results and conference call for August 18.
May 19	First-quarter earnings	Negative	-2.4%	Revenue declined and the company reported gross, net and EBITDA losses.
May 07	Earnings date notice	Neutral	-1.4%	Company scheduled first-quarter results and conference call for May 19.
Apr 01	Customer order update	Positive	+3.6%	International customer orders totaled $5.3 million with deliveries beginning in Q2.
Mar 26	Annual report filing	Neutral	+1.2%	Company filed its audited 2025 annual report with the SEC.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Comparable earnings releases were followed by negative price reactions, while operational updates produced positive reactions.

Key Terms

gaap, ebitda, non-gaap, erp system, +1 more

5 terms

gaap financial

"Second Quarter 2026 GAAP Financial Results"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

ebitda financial

"EBITDA loss for the second quarter of 2026 was $1.9 million"

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

View in glossary

non-gaap financial

"The Company reports financial results in accordance with U.S. GAAP"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

erp system technical

"We are well advanced in the implementation of our new ERP system"

An ERP system is integrated software that brings a company’s core operations—such as accounting, inventory, sales, human resources and purchasing—into a single platform so information flows smoothly between departments. Like replacing a stack of separate tools with one central dashboard, it can lower costs, speed decisions, improve reporting and make scaling easier; investors watch ERP projects because they affect profitability, transparency and execution risk during rollout.

itar compliant regulatory

"Eltek is ITAR compliant and has AS-9100 and NADCAP Electronics certifications"

Certification that a company follows the U.S. International Traffic in Arms Regulations (ITAR), which control the export, import and sharing of defense-related products, technical data and services. It matters to investors because ITAR compliance affects a business’s ability to sell products internationally, form partnerships, and avoid heavy fines or loss of export privileges — like a passport that a firm needs to travel and trade in certain defense markets.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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PETACH TIKVA, Israel, Aug. 18, 2026 /PRNewswire/ -- Eltek Ltd. (NASDAQ: ELTK), a leading global manufacturer of high-quality printed circuit boards, today announced its financial results for the quarter ended June 30, 2026.

Second Quarter 2026 Highlights

• Revenues were $11.5 million
• Operating loss was $2.5 million
• Net loss was $2.7 million or $0.41 per fully diluted share
• Net cash provided by operating activities amounted to $0.7 million.

Eli Yaffe, Chief Executive Officer, stated:

"Our second-quarter 2026 results reflected a loss as we remain in an important transition period focused on stabilizing our manufacturing operations and building the human and operational infrastructure required to support our next phase of growth. The stabilization of our production system and the integration of our new production lines are progressing, although the process is not yet complete.

We are well advanced in the implementation of our new ERP system, which we believe will provide a stronger foundation for managing and scaling our operations. We are also completing the installation of our newly arrived PCB plating line, while conducting acceptance testing in parallel, and expect to begin the qualification process during the third quarter.

Although the transition is not yet complete, we are making steady progress across the key areas of our business. We remain focused on completing the stabilization of our manufacturing operations, strengthening our organization and infrastructure and improving operational efficiency. We believe these steps are establishing a stronger foundation for improved operational and financial performance in the periods ahead."

Second Quarter 2026 GAAP Financial Results
Revenues for the second quarter of 2026 were $11.5 million compared to $12.5 million in the second quarter of 2025.

Gross loss for the second quarter of 2026 was $1.0 million compared to gross profit of $3.0 million (24% of revenues) in the second quarter of 2025.

Operating loss for the second quarter of 2026 was $2.5 million compared to operating profit of $1.5 million in the second quarter of 2025.

Financial expenses for the second quarter of 2026 were $0.7 million compared to $1.0 million in the second quarter of 2025. Financial expenses primarily resulted from the erosion of the U.S. dollar against the NIS.

Net loss for the second quarter of 2026 was $2.7 million or $0.41 per fully diluted share compared to net income of $0.4 million or $0.05 per fully diluted share in the second quarter of 2025.

Second Quarter 2026 Non-GAAP Financial Results
EBITDA loss for the second quarter of 2026 was $1.9 million compared to EBITDA of $2.0 million (15.6% of revenues) in the second quarter of 2025.

Six Months Ended June 30, 2026 GAAP Financial Results
Revenues for the first six months of 2026 were $22.0 million compared to $25.3 million in the first six months of 2025.

Gross loss for the first six months of 2026 was $2.8 million compared to gross profit of $5.2 million (21% of revenues) in the first six months of 2025.

Operating loss for the first six months of 2026 was $5.8 million compared to operating profit of $2.2 million in the first six months of 2025.

Financial expenses for the first six months of 2026 were $0.8 million compared to $0.5 million in the first six months of 2025. Financial expenses primarily resulted from the erosion of the U.S. dollar against the NIS.

Net loss for the first six months of 2026 was $5.6 million or $0.83 per fully diluted share compared to net profit of $1.4 million or $0.20 per fully diluted share in the first six months of 2025.

Six Months Ended June 30, 2026 Non-GAAP Financial Results
EBITDA loss for the first six months of 2026 was a $4.6 million compared to EBITDA of $3.1 million (12% of revenues) in the first six months of 2025.

About our Non-GAAP Financial Information
The Company reports financial results in accordance with U.S. GAAP and herein provides EBITDA, a non-GAAP measure. This non-GAAP measure is not in accordance with, nor is it a substitute for, GAAP measures. This non-GAAP measure is intended to supplement the Company's presentation of its financial results that are prepared in accordance with GAAP. The Company uses the non-GAAP measure presented to evaluate and manage the Company's operations internally. The Company is also providing this information to assist investors in performing additional financial analysis. Reconciliation between the Company's results on a GAAP and non-GAAP basis is provided in a table below.

Conference Call
Today, Tuesday, August 18, 2026, at 8:30am Eastern Time (15:30pm Israel Time, 5:30am Pacific Time), Eltek will conduct a conference call to discuss the results. The call will feature remarks by Eli Yaffe, Chief Executive Officer and Ron Freund, Chief Financial Officer.

To participate, please call the following teleconference numbers. Please allow for additional time to connect prior to the call:

United States:  1-866-860-9642
Israel:  03-918-0691
International:  +972-3-918-0691

To Access a Replay of the Call
A replay of the call will be available for 30 days on the Investor Info section on Eltek's corporate website at http://www.nisteceltek.com approximately 24 hours after the conference call is completed.

About Eltek
Eltek – "Innovation Across the Board", is a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards (PCBs) and is an Israeli leading company in this industry. PCBs are the core circuitry of most electronic devices. Eltek specializes in the manufacture and supply of complex and high-quality PCBs, HDI, multilayered and flex-rigid boards for the high-end market. Eltek is ITAR compliant and has AS-9100 and NADCAP Electronics certifications. Its customers include leading companies in the defense, aerospace and medical industries in Israel, the United States, Europe and Asia.

Eltek was founded in 1970. The Company's headquarters, R&D, production and marketing center are located in Israel. Eltek also operates through its subsidiary in North America and by agents and distributors in Europe, India, South Africa and South America.

For more information, visit Eltek's web site at www.nisteceltek.com

Forward Looking Statement 
Some of the statements included in this press release may be forward-looking statements that involve a number of risks and uncertainties including, but not limited to expected results in future quarters, the impact of currency movements between the US Dollar exchange rate against the Israeli Shekel, the impact of the Coronavirus on the economy and our operations, risks in product and technology development and rapid technological change, product demand, the impact of competitive products and pricing, market acceptance, the sales cycle, changing economic conditions and other risk factors detailed in the Company's Annual Report on Form 20-F and other filings with the United States Securities and Exchange Commission. Any forward-looking statements set forth in this press release speak only as of the date of this press release. The information found on our website is not incorporated by reference into this press release and is included for reference purposes only.

Investor Contact
Ron Freund
Chief Financial Officer
Investor-Contact@nisteceltek.com
+972-3-939-5023

 

Eltek Ltd.
Consolidated Statements of Income
U.S dollars in thousands (except per share data)
		Three months ended				Six months ended
		June 30,				June 30,
		2026		2025		2026		2025
Revenues		11,534		12,529		21,970		25,285
Costs of revenues		(12,498)		(9,510)		(24,786)		(20,054)
Gross profit (loss)		(964)		3,019		(2,816)		5,231
Research and development expenses, net		-		-		0		(50)
Selling, general and administrative expenses		(1,582)		(1,563)		(2,997)		(3,000)
Operating income (loss)		(2,546)		1,456		(5,813)		2,181
Financial expense, net		(698)		(1,012)		(792)		(508)
Income (loss) before income tax		(3,244)		444		(6,605)		1,673
Income tax expenses (tax benefit)		(500)		79		(1,008)		306
Net income (loss)		(2,744)		365		(5,597)		1,367
Earnings per share:
Basic net income (loss) per ordinary share		(0.41)		0.05		(0.83)		0.20
Diluted net income (loss) per ordinary share		(0.41)		0.05		(0.83)		0.20
Weighted average number of ordinary shares used to compute
basic net income (loss) per ordinary share (in thousands)		6,720		6,715		6,720		6,715
Weighted average number of ordinary shares used to compute
diluted net income (loss) per ordinary share (in thousands)		6,785		6,784		6,785		6,785

 

Eltek Ltd.
Consolidated Balance Sheets
U.S dollars in thousands
		June 30,		December 31,
		2026		2025
Assets
Current assets:
Cash and cash equivalents		9,390		2,481
Short-term bank deposits		2,117		9,643
Trade receivables (net of allowance for credit losses)		11,656		14,789
Inventories		10,295		11,154
Other accounts receivable and prepaid expenses		970		607
Total current assets		34,428		38,674
Long term assets:
Severance pay fund		76		65
Deferred tax assets, net		1,504		387
Operating lease right of use assets		12,466		6,272
Total long term assets		14,046		6,724
Property and equipment, net		24,664		20,862
Total Assets		73,138		66,260
Liabilities and Shareholder's equity
Current liabilities:
Trade payables		8,544		6,047
Other accounts payable and accrued expenses		6,735		6,565
Short-term operating lease liabilities		718		1,100
Total current liabilities		15,997		13,712
Long-term liabilities:
Accrued severance pay		578		515
Long-term operating lease liabilities		12,199		5,296
Total long-term liabilities		12,777		5,811
Shareholders' equity:
Ordinary shares of NIS 3.0 par value – Authorized: 10,000,000 shares at June 30, 2026 and December 31, 2025; Issued and outstanding: 6,720,827 shares at June 30, 2026 and 6,719,827 shares at December 31, 2025		6,012		6,012
Foreign currency translation adjustments		9,088		6,111
Additional paid-in capital		35,928		35,681
Accumulated deficit		(6,664)		(1,067)
Total shareholders' equity		44,364		46,737
Total liabilities and shareholders' equity		73,138		66,260

 

 

Eltek Ltd.
Unaudited Non-GAAP EBITDA Reconciliations
U.S dollars in thousands
		Three months ended				Six months ended
		June 30,				June 30,
		2026		2025		2026		2025
GAAP net income (loss)		(2,744)		365		(5,597)		1,367
Add back items:
Financial expenses (income), net		698		1,012		792		508
Income tax expenses (benefit)		(500)		79		(1,008)		306
Depreciation		613		500		1,203		966
Non-GAAP EBITDA		(1,933)		1,956		(4,610)		3,147

 

Eltek Ltd.
Consolidated Statement of  Cash flow
U.S dollars in thousands
		Three months ended				Six months ended
		June 30,				June 30,
		2026		2025		2026		2025
Cash flows from operating activities:
Net Income (loss)		(2,744)		365		(5,597)		1,367
Adjustments to reconcile net income to net cash flows
provided by operating activities:
Depreciation		613		500		1,203		967
Unrealized financing expenses (income), net		(86)		595		(155)		466
Share-based compensation		127		132		242		270
Decrease in deferred tax assets		(534)		120		(1,064)		202
		120		1,347		226		1,905
Decrease (increase) in operating lease right-of-use assets		162		(1)		311		-
Decrease (increase) in trade receivables		470		(1,378)		4,088		(1,733)
Decrease (increase) in other receivables and prepaid expenses		(224)		314		(312)		247
Decrease (increase) in inventories		(281)		(2,282)		1,614		(2,612)
Increase (decrease) in trade payables		2,736		(1,138)		229		(2,000)
Increase (decrease) in other liabilities and accrued expenses		424		(201)		(290)		(28)
Increase (decrease)  in employee severance benefits, net		11		39		20		46
		3,298		(4,647)		5,660		(6,080)
Net cash provided by (used in) operating activities		674		(2,935)		289		(2,808)
Cash flows from investing activities:
Purchase of fixed assets		(934)		(1,743)		(1,673)		(2,880)
Withdrawal of (investment in) short-term bank deposits, net		(2,092)		-		7,620		534
Net cash provided by (used in) investing activities		(3,026)		(1,743)		5,947		(2,346)
Cash flows from financing activities:
Exercise of options		5		8		5		8
Dividend distribution		-		(1,276)		-		(1,276)
Issuance of shares, net		-		-		-		-
Net cash provided by (used in) financing activities		5		(1,268)		5		(1,268)
Effect of translation adjustments		683		1,250		668		617
Net increase (decrease) in cash and cash equivalents		(1,664)		(4,696)		6,909		(5,805)
Cash and cash equivalents at the beginning of the period		11,054		6,466		2,481		7,575
Cash and cash equivalents at the end of the period		9,390		1,770		9,390		1,770

 

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SOURCE Eltek Ltd.

FAQ

How did Eltek (NASDAQ: ELTK) perform financially in Q2 2026?

Eltek reported a Q2 2026 net loss of $2.7 million on revenues of $11.5 million. According to Eltek, this compares with net income of $0.4 million on $12.5 million revenues in Q2 2025, reflecting lower sales and a swing to a gross loss.

What were Eltek (ELTK) first-half 2026 results compared to 2025?

For the first six months of 2026, Eltek posted revenues of $22.0 million and a net loss of $5.6 million. According to Eltek, this contrasts with $25.3 million revenues and $1.4 million net profit in the first half of 2025, indicating weaker profitability.

What was Eltek (ELTK) EBITDA in Q2 2026 and how did it change year over year?

Eltek’s Q2 2026 non-GAAP EBITDA was a loss of $1.9 million compared with EBITDA of $2.0 million in Q2 2025. According to Eltek, this reflects the move from operating profitability to an operating loss during its operational transition period.

What is Eltek’s cash position and operating cash flow as of June 30, 2026?

Eltek reported $9.4 million in cash and cash equivalents at June 30, 2026 and Q2 operating cash inflow of $0.7 million. According to Eltek, first-half 2026 operating cash flow was $0.3 million, with additional liquidity from net withdrawals of short-term bank deposits.

How did Eltek’s balance sheet change between December 31, 2025 and June 30, 2026?

Total assets increased to $73.1 million from $66.3 million, while shareholders’ equity declined to $44.4 million from $46.7 million. According to Eltek, accumulated deficit grew to $6.7 million, and operating lease assets and liabilities rose significantly during the period.

What operational initiatives did Eltek (ELTK) highlight alongside its Q2 2026 results?

Eltek emphasized ongoing stabilization of manufacturing operations, integration of new production lines, and implementation of a new ERP system. According to Eltek, it is also completing installation and testing of a new PCB plating line, with qualification expected to begin during the third quarter of 2026.