NextVision Announces Record Third Quarter 2026 Results

Operating cash flow reached $128.4 million over nine months while inventory investment supported production expansion.

Rhea-AI Summary

NextVision (NXSNF) reported third-quarter 2026 revenue of $106.4 million, with higher operating profitability and net earnings year over year. Revenue rose 125%, operating profit increased 133% to $65.8 million, and net profit grew 113% to $60.1 million. Gross margin reached 66.7%, versus 65.2% in the second quarter; operating margin rose to 61.8% from 59.8% a year earlier.

First-nine-month revenue increased 117% to $261.9 million, while operating cash flow reached $128.4 million after approximately $38.9 million of inventory investment. Order backlog stood at $209.3 million on November 9, up 69% year over year but below $265.2 million at the second-quarter results. The company is establishing European production capacity and a subsidiary to operate it, and plans to expand production to the United States. Targeted acquisitions of complementary technologies remain part of its strategy.

22 points · 0 major

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Positive

• Moderate pointThird-quarter revenue rose 125% year over year to $106.4 million.
• Moderate pointThird-quarter operating profit increased 133% year over year to $65.8 million.
• Moderate pointThird-quarter net profit grew 113% year over year to $60.1 million.
• Moderate pointOperating margin reached 61.8%, versus 56.9% in Q1, 58.8% in Q2 and 59.8% a year earlier.
• Moderate pointFirst-nine-month operating cash flow reached $128.4 million, 3.6 times the same period last year.
• Moderate pointEuropean production capacity is being established, with a subsidiary being formed to operate the line.

16 minor points

• Minor pointThird-quarter diluted earnings per share rose to $0.633 from $0.328 a year earlier.
• Minor pointThird-quarter gross profit increased 118% year over year to $71.0 million.
• Minor pointThird-quarter gross margin improved to 66.7% from 65.2% in the second quarter.
• Minor pointOperating expenses fell to 4.9% of third-quarter revenue from 8.9% a year earlier.
• Minor pointFirst-nine-month revenue increased 117% to $261.9 million year over year.
• Minor pointFirst-nine-month operating profit rose to $155.925 million from $73.498 million a year earlier.
• Minor pointFirst-nine-month net profit rose to $151.968 million from $71.964 million a year earlier.
• Minor pointFirst-nine-month diluted earnings per share increased to $1.601 from $0.850 a year earlier.
• Minor pointThird-quarter operating cash flow reached $53.3 million, versus $18.8 million a year earlier.
• Minor pointEuropean revenue increased 138% to $164.6 million in the first nine months.
• Minor pointNorth American revenue rose 80% to $57.1 million in the first nine months.
• Minor pointShort-term deposits increased to $620.614 million at September 30, 2026, from $476.857 million at year-end 2025.
• Minor point. Forward-looking: it has not happened yet and may not happen.United States production expansion is planned as part of the company's manufacturing network.
• Minor point. Forward-looking: it has not happened yet and may not happen.Targeted acquisitions of complementary technologies and capabilities remain part of the company's strategy.
• Minor pointThird-quarter research and development expenses fell to $1.341 million from $1.638 million a year earlier.
• Minor pointThird-quarter financing income increased to $6.648 million from $3.074 million a year earlier.

Negative

• Moderate pointOrder backlog was $209.3 million, below $265.2 million at Q2 results but up 69% year over year.
• Moderate pointInventory investment absorbed approximately $38.9 million over nine months, including approximately $20.8 million in Q3.
• Moderate pointTrade receivables rose to $44.726 million at September 30, 2026, from $12.087 million at year-end 2025.
• Minor pointRaw material and component costs are rising.
• Minor pointThird-quarter general and administrative expenses rose to $3.107 million from $1.963 million a year earlier.

3 minor points

• Minor pointThird-quarter sales and marketing expenses increased to $0.761 million from $0.628 million a year earlier.
• Minor pointThird-quarter financing expenses increased to $0.342 million from $0.077 million a year earlier.
• Minor pointThird-quarter income taxes rose to $12.021 million from $3.117 million a year earlier.

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Revenue Up 125% to $106.4m; Operating Margin Rises to 61.8%

Highlights

• Revenue of $106.4m, up 125% year-over-year, with gross margin improving to 66.7% from 65.2% in the previous quarter
• Operating margin of 61.8%, rising in every quarter since the start of the year, reflecting economies of scale
• Operating cash flow of $128.4m in the first nine months, 3.6 times the same period last year, alongside a significant build-up of component inventory
• Progress in establishing the European production line, as part of the expansion of the Company's global manufacturing infrastructure

RA'ANANA, Israel, Nov. 9, 2026 /PRNewswire/ -- NextVision Stabilized Systems Ltd. (TASE: NXSN), a technology growth company that develops, manufactures and markets stabilized day- and night-vision imaging solutions for ground and aerial platforms such as micro and mini UAVs and drones, with industry-leading weight-to-size and performance ratios, today announced its financial results for the third quarter and first nine months of 2026.

Chen Golan, Chairman of NextVision, commented: "NextVision continues to strengthen its position in the global market, with significant revenue growth and improved profitability. One of our most important growth engines is the expansion of activity with a growing customer base. Alongside our largest customers, we see additional customers increasing the scale of their activity with us and becoming more significant for the Company. This trend reflects confidence in our technology and the opportunities ahead of us for continued growth.

"We are already preparing for the activity levels of the coming years, expanding our production capacity, improving efficiency and continuing to invest in infrastructure, supported by the Company's strong cash flow. As part of this strategy, we are building a global manufacturing network, with our European production line establishing its operations and plans to expand production to the United States as well. Our presence in key markets will allow us to be closer to our customers, address local-manufacturing requirements and strengthen our ability to compete for additional business opportunities.

"Looking ahead, we are working to deepen NextVision's position as a technology partner of the world's leading platform manufacturers, and to expand the integration of our systems into additional platforms and missions. Alongside continued independent development and organic growth, targeted acquisitions of complementary technologies and capabilities are part of our strategy to broaden our solutions portfolio, strengthen our competitive advantage and build the Company's next growth engines. We see a market with significant potential, and we continue to invest in order to increase NextVision's place in it for years to come."

Financial Highlights for Q3 2026

Revenue in the third quarter grew 125% to $106.4 million, compared with $47.3 million in the same quarter last year. Revenue for the first nine months of the year totaled $261.9 million, an increase of 117%.

The Company grew in all geographic regions. Europe continues to be its largest market, with revenue of $164.6 million in the first nine months, an increase of 138%. Revenue from North America rose 80% to $57.1 million, alongside growth in Israel and in additional markets.

The Company has more than 300 customers worldwide, of which 185 were active during the first nine months of 2026. Revenue from customers beyond the three largest customers totaled approximately $105 million, of which approximately $52 million was in the third quarter alone.

Gross profit totaled $71.0 million, an increase of 118% compared with $32.5 million in the same quarter last year. Gross margin in the third quarter improved to 66.7%, compared with 65.2% in the second quarter of the year. Efficiencies in manufacturing processes and higher productivity per employee support higher levels of activity and the maintenance of high profitability, even against the backdrop of rising raw material and component costs.

Operating profit jumped 133% to $65.8 million, compared with $28.3 million in the same quarter last year. The operating margin improved in the third quarter to 61.8%, after 56.9% in the first quarter and 58.8% in the second quarter, and compared with 59.8% in the same quarter last year. While revenue more than doubled, operating expenses grew at a significantly more moderate rate and their share of revenue declined to 4.9%, compared with 8.9% in the same quarter last year. These figures illustrate the Company's ability to translate revenue growth into improved profitability.

Net profit grew 113% to $60.1 million in the third quarter, compared with $28.2 million in the same quarter last year. Net profit for the first nine months totaled $152 million, more than double the $72 million in the same period last year.

Cash flow from operating activities in the first nine months totaled $128.4 million, 3.6 times the $35.2 million in the same period last year, after investing approximately $38.9 million in an inventory increase. In the third quarter alone, operating cash flow reached $53.3 million, almost three times the $18.8 million in the same quarter last year, after an inventory increase of approximately $20.8 million. The cash flow reflects the Company's ability to generate cash while, at the same time, stocking up on components to support the expansion of production and shorter delivery times.

Order backlog as of the date of this release totaled $209.3 million, compared with $124 million at the same time last year, an increase of 69%, and compared with $265.2 million at the time of the second-quarter results. The decrease compared with the previous quarter was affected, among other things, by the increase in delivery volumes, alongside the timing of new orders that are expected to be received over the coming weeks. Streamlined work processes and training contribute to higher productivity per employee and increased output, enabling the Company to convert orders into revenue faster. This capability strengthens the Company's competitive advantage in responding quickly to customer needs and in aligning production with their growth.

Production Line in Europe: The Company is advancing the establishment of its production capability in Europe. The move is part of the Company's strategic plan to expand its global manufacturing infrastructure, and is intended to strengthen the Company's presence in the European market, address customers who prefer European manufacturing and broaden the business opportunities available to the Company in the region. The Company is in the process of establishing a European subsidiary to operate the production line.

Investors' Conference Call

Today at 1:30pm Israel time, 6:30am Eastern Time, NextVision will hold an investor webinar in Hebrew to review the Financial Statements and provide an update on the Company's ongoing activities, with the participation of the Company's management.

Following that, at 3:30pm Israel time, 8:30am Eastern Time, NextVision will hold an investor webinar in English, with the participation of the Company's management.

Participation in the webinar requires prior registration via the following links:

For the Hebrew Webinar:
https://us06web.zoom.us/webinar/register/WN_2skMv0jZTk6uE61IKBmSlQ

For the English Webinar:
https://us06web.zoom.us/webinar/register/WN_OYCj0N_tR7-xjNbXSJkUOA

The Company intends to publish a presentation shortly before the webinars, which will be presented during the event. Attendees will be able to submit questions in English or Hebrew, which will be translated and answered in English.

About NextVision Stabilized Systems Ltd.

NextVision is a leading technology company specializing in stabilized imaging systems for aerial and ground platforms, including micro and mini UAVs and drones. The company offers customers a comprehensive imaging solution encompassing a wide range of cameras, complementary accessories, and integrated capabilities for commercial, industrial, and security applications — positioning NextVision as a true 'one-stop shop'.

NextVision has developed a patented image stabilization engine that enables the production of high-performance stabilized cameras with world-class size-to-weight ratios. This technology ensures stable, high-quality imagery even in demanding flight conditions. The company markets its products worldwide and continues to experience steady growth in its global customer base.

International Investor Relations

Ehud Helft
nextvision@ekgir.com
EK Global Investor Relations
(US) +1 212 378 8040

 

Condensed Statements of Financial Position
		As of September 30				As of December 31,  2025
		2026		2025
		Unaudited				Audited
		USD thousands
Current assets
Cash		20,962		27,533		85,440
Short-term deposits		620,614		502,102		476,857
Trade receivables		44,726		14,052		12,087
Current tax receivable		1,932		2,256		4,746
Other accounts receivable		11,539		6,268		5,275
Inventory		92,446		49,304		53,588
		792,219		601,515		637,993
Non-current assets
Property, plant and equipment		1,562		853		906
Right-of-use assets		4,549		2,962		2,770
Intangible assets		8,584		4,670		4,896
		14,695		8,485		8,572
		806,914		610,000		646,565
Current liabilities
Trade payables		25,032		9,375		8,679
Other accounts payable		38,509		14,593		18,067
		63,541		23,968		26,746
Non-current liabilities
Lease liabilities		4,874		3,432		3,390
Employee benefit liabilities, net		151		114		151
Deferred taxes		1,022		487		588
		6,047		4,033		4,129
Equity
Share capital and premium		460,326		446,120		446,328
Reserve for share-based payment		15,957		6,662		8,455
Retained earnings		261,043		129,217		160,907
Total equity		737,326		581,999		615,690
		806,914		610,000		646,565

 

 

Condensed Statements of Comprehensive Income
	For the nine months ended September 30				For the three months ended September 30				For the year ended December 31
	2026		2025		2026		2025		2025
	Unaudited								Audited
	USD thousands (except per share data)
Revenues from sales	261,927		120,533		106,386		47,290		168,354
Cost of sales	(88,203)		(34,971)		(35,405)		(14,773)		(50,798)
Gross profit	173,724		85,562		70,981		32,517		117,556
Research and development expenses	(4,970)		(3,914)		(1,341)		(1,638)		(5,491)
Sales and marketing expenses	(2,427)		(1,505)		(761)		(628)		(1,874)
General and administrative expenses	(10,402)		(6,645)		(3,107)		(1,963)		(8,667)
	(17,799)		(12,064)		(5,209)		(4,229)		(16,032)
Operating profit	155,925		73,498		65,772		28,288		101,524
Financing expenses	(1,203)		(229)		(342)		(77)		(313)
Financing income	18,902		7,163		6,648		3,074		13,453
Profit before income tax	173,624		80,432		72,078		31,285		114,664
Income taxes	(21,656)		(8,468)		(12,021)		(3,117)		(11,000)
Net profit	151,968		71,964		60,057		28,168		103,664
Other comprehensive income (net of tax effects):
Amounts that will not be subsequently reclassified to profit or loss:
Loss from remeasurement of defined benefit plans	-		-		-		-		(10)
Total other comprehensive loss	-		-		-		-		(10)
Total comprehensive income	151,968		71,964		60,057		28,168		103,654
Net profit per share (in US dollars)
Basic EPS	1.651		0.883		0.650		0.341		1.235
Diluted EPS	1.601		0.850		0.633		0.328		1.106

 

View original content:https://www.prnewswire.com/news-releases/nextvision-announces-record-third-quarter-2026-results-302933202.html

SOURCE NextVision

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were NextVision's third-quarter 2026 revenue and earnings?

NextVision reported revenue of $106.4 million, up 125% year over year, and net profit of $60.1 million, up 113%. Diluted earnings per share increased to $0.633 from $0.328 in the same quarter last year.

Why did NextVision's order backlog decline from the second-quarter results?

NextVision attributed the decline partly to higher delivery volumes and the timing of new orders expected over the coming weeks. Backlog was $209.3 million on November 9, compared with $265.2 million at the second-quarter results.

How much revenue did NextVision generate outside its three largest customers?

Revenue from customers beyond NextVision's three largest totaled approximately $105 million in the first nine months of 2026, including approximately $52 million in the third quarter. Of more than 300 customers worldwide, 185 were active during the first nine months.

Why is NextVision establishing production capacity in Europe?

NextVision intends its European production capacity to address customers who prefer European manufacturing and broaden business opportunities in the region. The company is establishing a European subsidiary to operate the production line.