Odysight.ai Reports Financial Results for the Three Months Ended March 31, 2026 and Provides Business Update
Rhea-AI Summary
Odysight.ai (NASDAQ:ODYS) reported Q1 2026 revenue of $82 thousand, down from approximately $2.1 million in Q1 2025, with gross margin near 26% in both periods. Net loss widened to about $5.2 million.
Backlog reached $14 million and cash balance was around $21.8 million with no debt. The company highlighted new defense pilots, a CRADA with the U.S. Navy’s NAWCAD, U.S. Black Hawk flight testing, initial industrial deployments in Europe, a French collaboration with GACI Technologies, and completion of a dual listing on TASE.
Positive
- Backlog of $14 million as of March 31, 2026, supporting future revenue visibility
- Cash balance of approximately $21.8 million and debt free at quarter end
- Gross margin around 26%, consistent with prior-year period despite lower revenue
- New pilot orders from a major defense customer for helicopter and airborne weapons monitoring
- CRADA signed with U.S. Navy NAWCAD to advance AI visual sensing and maintenance
- First U.S. flight tests of AI PdM system on UH-60 Black Hawk with XP Services
- Initial industrial monitoring systems delivered and operational with European customers
- Commercial collaboration with GACI Technologies to access French aerospace and defense market
- Completed dual listing on TASE, broadening access to Israeli and international investors
Negative
- Revenues fell to $82 thousand from approximately $2.1 million year over year
- Net loss increased to about $5.2 million from roughly $4.3 million
- Operating expenses rose to approximately $5.4 million from about $5.1 million
- Revenue decline partly linked to delays in PdM and CBM solutions from global geopolitical situation
- Q1 2025 comparison includes $1.7 million derecognition from a Fortune 500 customer, complicating growth visibility
News Market Reaction – ODYS
In the May 15 session, ODYS gained 0.88%, reflecting a mild positive market reaction. Argus tracked a peak move of +11.0% during that session. Argus tracked a trough of -5.2% from its starting point during tracking. Our momentum scanner triggered 7 alerts that day, indicating moderate trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings,AI Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Mar 19 | Full-year 2025 earnings | Positive | +10.6% | Reported 2025 results with $3.0M revenue, $13.8M backlog, $26M cash and milestones. |
| Nov 13 | Nine-month 2025 earnings | Neutral | -0.6% | Nine-month 2025 update showed $2.6M revenue, $29.8M cash, $14.2M backlog and higher loss. |
| Aug 13 | First-half 2025 earnings | Neutral | +1.8% | First-half 2025 report with revenue growth to $2.4M but wider $8.3M net loss. |
| May 15 | Q1 2025 earnings | Neutral | -8.0% | Q1 2025 results featuring $2.1M revenue driven by a $1.7M medical contract and net loss. |
| Mar 26 | Full-year 2024 earnings | Positive | +0.0% | Full-year 2024 results showing 31% revenue growth to $4M and backlog surge to $15M. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings/AI releases have generally been received positively or neutrally, with only one notable negative reaction; the current decline contrasts with a modestly positive average move on similar past reports.
Across prior earnings-related updates, Odysight.ai has highlighted growing aerospace and defense focus, recurring $14M–$15M backlog levels, and rising operating expenses alongside persistent net losses. Events from Mar 2024 through Mar 2026 show revenue growth phases followed by transition away from a legacy medical contract. Today’s Q1 2026 update, with sharply lower revenue and wider loss but stable $14M backlog and cash, fits the pattern of strategic expansion funded by continuing losses.
Key Terms
predictive maintenance technical
condition-based maintenance technical
cbm technical
cooperative research and development agreement regulatory
crada regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
Ramat Gan, Israel, May 14, 2026 (GLOBE NEWSWIRE) -- Odysight.ai Inc. (NASDAQ/TASE: ODYS), a leader in AI-powered visual sensing and predictive maintenance (PdM) solutions for the aerospace, defense, and industrial markets, today announces its financial results for the three months ended March 31, 2026, and provides a business update.
Key Highlights
- Backlog1 of
$14 million as of March 31, 2026, providing revenue visibility into 2026 and the following years. - Cash balance2 of approximately
$21.8 million as of March 31, 2026, debt free. - Received two pilot orders from a major Defense customer for monitoring applications on an operational combat helicopter, and monitoring of a critical component within an airborne weapons system. Both orders are in active deployment.
- Entered into a Cooperative Research and Development Agreement (CRADA) with the Naval Air Warfare Center Aircraft Division Lakehurst (NAWCAD), part of the U.S. Navy, to advance AI-driven visual sensing and condition-based maintenance operations. Focusing initially on carrier arresting cables. The project is set to be delivered in the coming months. Once completed, it has the potential for expansion into global land based arresting cables, fixed and rotary wing aircraft, ground vehicles, and additional platforms (May 2026).
- Partnered with XP Services for the first U.S. flight testing of Odysight.ai AI-powered Predictive Maintenance System on a Sikorsky UH-60 Black Hawk Helicopter, the primary medium lift helicopter for the U.S. Army, advancing domestic certification and commercialization pathways. First flights scheduled to start in the coming weeks.
- Initial Industrial Predictive Monitoring Systems delivered to European customers and now operational, pursuant to our agreement with a leading European provider of industrial sensing and monitoring solutions.
- Signed a Commercial Collaboration Agreement with GACI Technologies to expand AI-powered predictive maintenance solutions into the French Aerospace and Defense market, broadening Odysight.ai’s European commercial footprint (April 2026). Aiming to receive initial POs within 2026.
- Completed dual listing on the Tel Aviv Stock Exchange (TASE), expanding access to Israeli and international investors and broadening the Company’s shareholder base (April 2026).
Yehu Ofer, Chief Executive Officer of Odysight.ai commented:
“Our main customers operate in, or directly support, some of the most mission-critical and operationally demanding environments globally. While this dynamic resulted in a timing impact on our Q1 revenues, driven by some key defense partners in Israel and the United States prioritized mission-critical activities, we view this primarily as a short-term timing effect on backlog conversion rather than any change in underlying demand. We remained fully operational globally throughout last months’ conflict, continuing to execute across our global programs while further expanding our commercial activity in core target markets.
The increased operational intensity, extensive load and burn out on platforms and people, continues to reinforce the global growing need for our solutions and the underlying attractiveness of our products. The strategic progress we made during and immediately following the quarter underscores our continued momentum and the strength of our relationships with our customers. Our core business remains strong and we are therefore confident in our ability to achieve our business targets for 2026 and beyond."
Einav Brenner, Chief Financial Officer of Odysight.ai added:
"Our Q1 2026 revenues were impacted by the timing of purchase orders execution, which we view as temporary and not indicative of the underlying growth trajectory of the business. We expect these orders to be delivered in the coming months, resulting in a revenue profile that is geared towards year end. Despite these challenging geopolitical dynamics, our gross margin remained approximately
Operating expenses of approximately
We ended the quarter with approximately
1 Backlog is measured and defined differently by companies within our industry. We refer to “backlog” as our booked orders based on purchase orders or hard commitments but not yet recognized as revenue. Backlog is not a comprehensive indicator of future revenue and is not a measure of profitability. Orders included in backlog may be cancelled or rescheduled by customers. A variety of conditions, both specific to the individual customer and generally affecting the customer’s industry, may cause customers to cancel, reduce or delay orders that were previously made or anticipated. Projects may remain in backlog for extended periods of time.
2 Including cash, cash equivalents and restricted cash.
Financial highlights for the three months ended March 31, 2026.
Revenues were
The decrease in revenues was primarily attributable to Q1 2025 full derecognition of the contract liability associated with a Fortune 500 medical company customer, in the amount of
Backlog1 was
Cost of Revenues was
Gross Profit was
Operating expenses were approximately
The increase in operating expenses was primarily driven by the expansion of the Company’s operations, enhanced global selling and marketing activities, including efforts to penetrate new markets and verticals and increase product visibility, increase in share-based compensation and effect of the USD/NIS exchange rate.
Net loss was approximately
Cash Balance2 as of March 31, 2026 was approximately
About Odysight.ai
Odysight.ai, incorporated in Nevada U.S., with European and Israeli subsidiaries, is pioneering the Predictive Maintenance (PdM) and Condition Based Monitoring (CBM) markets with its visualization and AI-powered visual sensing. Providing video sensor-based solutions for critical systems in the aviation, transportation, and energy industries, Odysight.ai leverages proven visual technologies and products from the medical industry. Odysight.ai’s unique video-based sensors, embedded software, and AI algorithms are being deployed in hard-to-reach locations and harsh environments across a variety of PdM and CBM use cases. Odysight.ai’s platform allows maintenance and operations teams visibility into areas that are otherwise inaccessible during normal operation, or where the operating ambience is not suitable for continuous real-time monitoring.
We routinely post information that may be important to investors in the Investors section of our website. For more information, please visit: http://www.odysight.ai or follow us on X (formerly Twitter) , LinkedIn and YouTube.
Backlog
We present our results of operations in a way that we believe will be the most meaningful and useful to investors, analysts, rating agencies and others who use our financial information to evaluate our performance. Backlog is presented for supplemental informational purposes only, and is not intended to be a substitute for any GAAP financial measures, including revenue or net income (loss), and, as calculated, may not be comparable to companies in other industries or within the same industry with similarly titled measures of performance. In addition, backlog should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. Therefore, backlog should be considered in addition to, not as a substitute for, or in isolation from, measures prepared in accordance with GAAP.
Forward-Looking Statements
Information set forth in this news release contains forward-looking statements within the meaning of safe harbor provisions of the Private Securities Litigation Reform Act of 1995 relating to future events or our future performance. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, but not limited to, expectations regarding monetization of backlog and improvements in financial performance, as well as statements regarding long-term growth prospects. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other comparable terminology. Those statements are based on information we have when those statements are made or our management’s current expectation and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward- looking statements. Factors that may affect our results, performance, circumstances or achievements include, but are not limited to the following: (i) our ability to scale up our operations, including market acceptance and large-scale adoption of our vision-based sensor products, (ii) the amount and timing of future sales and our long and unpredictable sales cycles, (iii) our ability to maintain product quality and performance at an acceptable cost and meet technical and quality specifications, (iv) our ability to accurately estimate the future supply and demand for our solutions and changes to various factors in our supply chain, (v) the market for adoption of vision-based sensor technologies, (vi) compliance with existing laws and regulations and regulatory developments in the United States, Israel, and other jurisdictions, including trade control laws, export authorizations and safety regulations, (vii) our plans and ability to obtain, maintain, and protect intellectual property rights, including extensions of patent terms, and our ability to avoid infringing the intellectual property rights of others, (viii) the need to hire additional personnel and our ability to attract and retain such personnel, including key members of our senior management, (ix) our estimates regarding expenses, backlog, future revenue, capital requirements and need for additional financing, (x) our dependence on third parties, including suppliers and strategic partners, (xi) our dependence on a limited number of customers for a substantial portion of our revenues, and the impact if order volumes from existing or anticipated customers do not meet expectations (xii) our financial performance and history of operating losses, (xiii) the growth of regulatory requirements and incentives, (xiv) the incorporation of artificial intelligence, or AI, and machine learning, or ML, into our products, (xv) risks related to product liability claims or product recalls, (xvi) cybersecurity risks and potential data security breaches, (xvii) the overall global economic environment and trade tensions, including the adoption or expansion of economic sanctions, tariffs or trade restrictions, (xviii) challenges and risks related to sales to government entities and highly regulated organizations, (xix) the impact of competition and new technologies, (xx) limitations and exclusivity provisions in our customer agreements and restrictions on the use of intellectual property, (xxi) our ability to ensure that our solutions interoperate with a variety of hardware and software platforms, (xxii) our plans to continue to invest in research and develop technology for new products, (xxiii) our plans to potentially acquire complementary businesses, (xxiv) the impact of future pandemics on our business and on the business of our customers, (xxv) fluctuations in foreign currency exchange rates, (xxvi) security, political and economic instability in the Middle East that could harm our business, including due to the security situation in Israel; and military conflicts with Iran and terrorist organizations, (xxvii) the increased expenses and requirements associated with being a listed public company on the Nasdaq Capital Market, or Nasdaq, and (xxviii) risks associated with our dual listing on the Tel Aviv Stock Exchange, or the TASE, including price volatility, liquidity and regulatory requirements. These and other important factors discussed in Odysight.ai’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 19, 2026, and our other reports filed with the SEC, could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Except as required under applicable securities legislation, Odysight.ai undertakes no obligation to publicly update or revise forward-looking information.
Company Contact:
Einav Brenner, CFO
info@odysight.ai
Investor Relations Contact:
Miri Segal
MS-IR LLC
msegal@ms-ir.com
Tel: +1-917-607-8654
ODYSIGHT.AI INC.
INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
| March 31, | December 31, | |||||||
| 2026 | 2025 | |||||||
| Unaudited | ||||||||
| USD in thousands | ||||||||
| Assets | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | 21,763 | 25,677 | ||||||
| Restricted cash | - | 333 | ||||||
| Accounts receivable | 104 | 278 | ||||||
| Unbilled receivables | 649 | 615 | ||||||
| Inventory | 313 | 50 | ||||||
| Other current assets | 453 | 549 | ||||||
| Total current assets | 23,282 | 27,502 | ||||||
| NON-CURRENT ASSETS: | ||||||||
| Property and equipment, net | 325 | 346 | ||||||
| Operating lease right-of-use assets | 639 | 739 | ||||||
| Severance pay asset | 299 | 296 | ||||||
| Other non-current assets | 96 | 96 | ||||||
| Total non-current assets | 1,359 | 1,477 | ||||||
| TOTAL ASSETS | 24,641 | 28,979 | ||||||
| Liabilities and shareholders’ equity | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | 446 | 480 | ||||||
| Contract liabilities | 133 | 165 | ||||||
| Operating lease liabilities - short term | 468 | 511 | ||||||
| Accrued compensation expenses | 1,518 | 1,400 | ||||||
| Related parties | 88 | 115 | ||||||
| Other current liabilities | 331 | 327 | ||||||
| Total current liabilities | 2,984 | 2,998 | ||||||
| NON-CURRENT LIABILITIES: | ||||||||
| Operating lease liabilities - long term | 195 | 259 | ||||||
| Liability for severance pay | 299 | 296 | ||||||
| Total non-current liabilities | 494 | 555 | ||||||
| TOTAL LIABILITIES | 3,478 | 3,553 | ||||||
| SHAREHOLDERS’ EQUITY: | ||||||||
| Common stock, | 17 | 17 | ||||||
| Additional paid-in capital | 89,336 | 88,418 | ||||||
| Accumulated deficit | (68,190 | ) | (63,009 | ) | ||||
| TOTAL SHAREHOLDERS’ EQUITY | 21,163 | 25,426 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 24,641 | 28,979 | ||||||
ODYSIGHT.AI INC.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
| Three months ended | ||||||||
| March 31, | ||||||||
| 2026 | 2025 | |||||||
| Unaudited | ||||||||
| USD in thousand (except per share data) | ||||||||
| REVENUES | 82 | 2,065 | ||||||
| COST OF REVENUES | 61 | 1,527 | ||||||
| GROSS PROFIT | 21 | 538 | ||||||
| RESEARCH AND DEVELOPMENT EXPENSES | 2,557 | 2,487 | ||||||
| SALES AND MARKETING EXPENSES | 962 | 396 | ||||||
| GENERAL AND ADMINISTRATIVE EXPENSES | 1,840 | 2,215 | ||||||
| OPERATING LOSS | (5,338 | ) | (4,560 | ) | ||||
| FINANCING INCOME, NET | 157 | 295 | ||||||
| NET LOSS | (5,181 | ) | (4,265 | ) | ||||
