HUB Cyber Security Issues CEO Letter to Shareholders
Rhea-AI Summary
HUB Cyber Security (Nasdaq: HUBC) CEO Noah Hershcoviz issued an open letter outlining strategy to strengthen infrastructure, balance sheet resilience, and institutional adoption. The company expects continued 2026 growth across cybersecurity, compliance, and secured data infrastructure while building a backlog of late‑stage opportunities.
The letter describes development of a HUB token as a utility layer within the Trust Rails framework to support validation, access control, compliance enforcement, and asset‑linked workflows, and says HUB will pursue asset‑backed digital infrastructure using milestone‑based, regulatory‑aligned execution.
Positive
- Projected 2026 growth across cybersecurity, compliance, and secured data infrastructure
- Building a backlog of late-stage opportunities to improve revenue visibility and pipeline strength
- Developing a HUB token utility layer embedded in Trust Rails for validation and access control
Negative
- Market value decline noted: HUBC has declined materially, creating investor confidence headwinds
- No quantified financial guidance or metrics provided to validate the 2026 growth expectations
News Market Reaction
On the day this news was published, HUBC gained 3.10%, reflecting a moderate positive market reaction. Argus tracked a trough of -19.3% from its starting point during tracking. Our momentum scanner triggered 12 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $169K to the company's valuation, bringing the market cap to $6M at that time.
Data tracked by StockTitan Argus on the day of publication.
Market Reality Check
Peers on Argus
HUBC is down 2.27% while peers are mixed: MCRP +1.51%, SNCR +0.34%, JG -0.98%, UBXG +0.26%, VHC +5.67%. Moves do not indicate a unified sector trend.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 27 | Nasdaq compliance notice | Negative | +0.0% | Nasdaq MVLS non-compliance notice and potential future delisting risk. |
| Jan 14 | Reverse share split | Negative | -34.8% | 1-for-15 reverse split to support share price and Nasdaq compliance. |
| Jan 12 | CFO appointment | Positive | +7.1% | Appointment of experienced CFO to lead global finance and governance. |
| Dec 29 | Government contract win | Positive | -4.8% | Award of NIS 16M Israeli Interior Ministry contract boosting backlog visibility. |
| Dec 22 | Board, governance update | Positive | +8.6% | Board strengthening and approval for reverse split and added share capital. |
Reactions to governance and contract news have been mixed: some governance/leadership updates aligned with positive price moves, while a sizable government contract saw a negative reaction. Dilution- and compliance-related events, like the reverse split, aligned with sharp downside.
Over the past months, HUBC has focused on governance, balance-sheet tools, and commercial wins. A 1-for-15 reverse split on Jan 15, 2026 aimed to support Nasdaq compliance but coincided with a -34.83% move. A Nasdaq notice on Jan 27, 2026 highlighted non-compliance with the US$35M MVLS requirement and a compliance window to July 20, 2026. In parallel, HUBC added a new CFO and board member and secured a NIS 16M Israeli government contract. Today’s CEO letter emphasizes long-term strategy and value-building against this backdrop of listing pressure and restructuring.
Market Pulse Summary
This announcement reiterates HUBC’s strategy around secured data fabric, Trust Rails, and development of the HUB token as a utility layer, framed against a materially reduced market value. The letter emphasizes backlog building, institutional adoption, and a focus on resilience and balance-sheet strength. Recent history includes a 1-for-15 reverse split, a Nasdaq MVLS notice with a compliance window to July 20, 2026, governance changes, and a NIS 16M Israeli government contract. Investors may watch execution on late-stage opportunities, regulatory compliance, and progress in asset-backed digital infrastructure.
Key Terms
confidential computing technical
secured data fabric technical
trust rails technical
hub token technical
asset-backed digital infrastructure technical
AI-generated analysis. Not financial advice.
TEL AVIV, Israel, Feb. 04, 2026 (GLOBE NEWSWIRE) -- HUB Cyber Security Ltd. (Nasdaq: HUBC) (“HUB” or the “Company”), a global leader in confidential computing and secured data fabric technologies, today announced an open letter by its CEO, Noah Hershcoviz, to its shareholders.
Dear Shareholders,
HUB operates in environments where trust failure is not an option.
The Company’s foundation is built on military-grade cybersecurity and Secured Data Fabric (“SDF”) infrastructure designed to secure, govern, and operationalize sensitive data across regulated, sovereign, and adversarial environments. That foundation continues to strengthen through HUB’s deployments, ongoing institutional adoption, and growing operational scale.
We are witnessing sustained demand by the market and expect to see continued growth during 2026 across our revenue streams, including cybersecurity, compliance, and secured data infrastructure, with the Company increasing enterprise adoption of its SDF technology as core infrastructure rather than point solutions. The Company continues to build a backlog of late-stage opportunities, which the Company expects will provide improved revenue visibility and pipeline strength, with year-over-year growth across the business remaining intact and ongoing.
At the same time, the market value of HUBC has declined materially. That reality matters. Our responsibility is not to comment on volatility, but to compound durable value through execution. HUB’s focus is on resilience, strengthening the balance sheet, expanding infrastructure depth, and positioning the Company where institutional capital is deployed over long-term horizons.
The strategy we are executing follows a clear sequence.
HUB began with securing data at the infrastructure layer. That capability expanded into our Trust Rails, the framework that allows institutions to enforce control, auditability, and compliance across interactions between systems. As digital systems increasingly move not only data, but value, the same requirements apply. Trust must be enforced by design.
Within this architecture, the HUB token is currently being developed as a utility layer which will be embedded into the Company’s Trust Rails platform. It is designed to support validation, access control, compliance enforcement, and asset-linked workflows inside regulated environments already secured by HUB’s cybersecurity stack and SDF. The token exists to serve the infrastructure and scale its usability.
With this foundation in place, HUB is positioned to enter the asset-backed digital infrastructure sector as the next phase of its Trust Rails strategy.
This step is being executed systematically, layered on top of the growth in our pipeline, and from a position of operational discipline.
Our objective is to establish the infrastructure framework first before any specific asset execution using the same standards applied across the Company today: real-world grounding, regulatory alignment, milestone-based execution, and disciplined capital structures.
This direction reflects a long-term commitment to rebuilding and compounding shareholder value through resilience and execution. Progress will be measured in strengthened fundamentals, expanded infrastructure capability, and positioning, not in short-term signals.
We will continue to update the market as milestones are reached.
Noah Hershcoviz
Chief Executive Officer
HUB Cyber Security Ltd. (NASDAQ: HUBC)
About HUB Cyber Security Ltd.
HUB Cyber Security Ltd. (Nasdaq: HUBC) is a global leader in confidential computing, AI-driven data fabric, and cybersecurity. HUB's Secured Data Fabric (SDF) empowers organizations to virtualize, secure, and analyze sensitive data across borders and silos generating real-time intelligence while meeting the highest regulatory standards. With operations across North America, Europe, and Israel, HUB partners with Fortune 100 companies, global banks, and sovereign institutions to secure the next generation of digital infrastructure.
Forward-Looking Statements
This press release contains forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by words such as “plan,” “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “future,” “forecast,” “project,” “continue,” “could,” “may,” “might,” “possible,” “potential,” “predict,” “seem,” “should,” “will,” “would” and other similar words and expressions, but the absence of these words does not mean that a statement is not forward-looking.
The forward-looking statements are based on the current expectations of the management of HUB, as applicable, and are inherently subject to uncertainties and changes in circumstances and their potential effects and speak only as of the date of such statement. There can be no assurance that future developments will be those that have been anticipated. These forward-looking statements involve a number of risks, uncertainties, or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those discussed and identified in public filings made with the SEC by HUB and the following: (i) the Company’s ability to meet stock exchange continued listing standards and remain listed on the Nasdaq; (ii) significant uncertainty regarding the adequacy of HUB’s liquidity and capital resources and its ability to repay its obligations as they become due; (iii) the war between Israel and Hamas commenced in October 2023, which may harm Israel’s economy and HUB’s business; (iv) expectations regarding HUB’s strategies and future financial performance, including its future business plans or objectives, prospective performance and opportunities and competitors, revenues, products and services, pricing, operating expenses, market trends, liquidity, cash flows and uses of cash, capital expenditures, and HUB’s ability to invest in growth initiatives and pursue acquisition opportunities; (v) the outcome of any legal or regulatory proceedings against HUB in connection with our previously announced internal investigation or otherwise; (vi) competition, the ability of HUB to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its management and key employees; (vii) limited liquidity and trading of HUB’s securities; (viii) geopolitical risk, including military action and related sanctions, and changes in applicable laws or regulations; (ix) the possibility that HUB may be adversely affected by other economic, business, and/or competitive factors; and (x) other risks and uncertainties set forth in the sections entitled “Risk Factors” and “Cautionary Statement Regarding Forward-Looking Statements” in HUB’s Annual Report on Form 20-F filed on May 1, 2025.
Should one or more of these risks or uncertainties materialize or should any of the assumptions made by the management of HUB prove incorrect, actual results may vary in material respects from those expressed or implied in these forward-looking statements.
All subsequent written and oral forward-looking statements concerning HUB or other matters addressed in this press release and attributable to HUB or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in the press release. Except to the extent required by applicable law or regulation, HUB undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date of this press release to reflect the occurrence of unanticipated events.
Investor Relations
Lytham Partners
Ben Shamsian
646-829-9701
shamsian@lythampartners.com
FAQ
What 2026 revenue outlook did HUB Cyber Security (HUBC) provide in the February 4, 2026 CEO letter?
What is the HUB token and how will it be used by HUB Cyber Security (HUBC)?
How does HUB Cyber Security (HUBC) say it will measure progress and shareholder value rebuilding?
What did HUB Cyber Security (HUBC) report about its sales pipeline and revenue visibility?
What risks to shareholders did the HUB Cyber Security (HUBC) CEO letter highlight?
Where will HUB Cyber Security (HUBC) report updates on milestones and execution?
