Odysight.ai (NASDAQ: ODYS) Q1 revenue plunges while net loss widens
Rhea-AI Filing Summary
Odysight.ai Inc. reported weak results for the three months ended March 31, 2026, as revenue dropped to $82 thousand from $2.1 million a year earlier. Management attributes the decline mainly to prior-period contract derecognition and delayed purchase order execution amid geopolitical disruptions.
Gross profit was $21 thousand with a gross margin of about 26%, similar to last year, while operating expenses rose to roughly $5.4 million, reflecting expanded global sales and marketing. Net loss widened to approximately $5.2 million from $4.3 million. The company ended the quarter with about $21.8 million in cash and a backlog of $14 million, and it remains confident in its 2026 business targets.
Positive
- None.
Negative
- Revenue collapse and larger loss: Q1 2026 revenue fell to $82 thousand from $2.1 million year over year, and net loss widened to approximately $5.2 million, reflecting delayed order execution and higher operating expenses.
Insights
Sharp revenue drop and higher loss, but solid cash and backlog.
Odysight.ai posted Q1 2026 revenue of just $82 thousand, down from $2.1 million in Q1 2025, mainly due to prior contract derecognition and delayed orders. Net loss deepened to about $5.2 million, while operating expenses increased with global expansion.
Despite weaker results, gross margin stayed near 26%, suggesting stable unit economics. Cash of roughly $21.8 million and a $14 million backlog provide some visibility, though conversion timing is uncertain. Management guides to a revenue profile "geared towards year end" as delayed orders are fulfilled.
8-K Event Classification
Key Figures
Key Terms
Predictive Maintenance (PdM) technical
Condition Based Monitoring (CBM) technical
backlog financial
Operating loss financial
forward-looking statements regulatory
gross margin financial
Earnings Snapshot
Management expects delayed purchase orders to be delivered in coming quarters, leading to a revenue profile geared toward year end.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Item 2.02 Results of Operations and Financial Condition.
On May 14, 2026, Odysight.ai, Inc. (the “Company”) issued a press release announcing financial results for the three months ended March 31, 2026 and providing a business update. The press release is attached to this Current Report on Form 8-K as Exhibit 99.1 and is incorporated herein by reference.
The information in this Current Report on Form 8-K (including Exhibit 99.1 attached hereto) is intended to be furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Exchange Act, except as expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Number | Description | |
| 99.1 | Press release dated May 14, 2026 | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
| 2 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ODYSIGHT.AI INC. | ||
| Date: May 14, 2026 | By: | /s/ Einav Brenner |
| Name: | Einav Brenner | |
| Title: | Chief Financial Officer | |
| 3 |
Exhibit 99.1
Odysight.ai Reports Financial Results for the Three Months Ended March 31, 2026 and Provides Business Update
Ramat Gan, Israel, May 14, 2026 – 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
|
| ● | 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. |
| ● |
| ● | Partnered
with XP Services for the first U.S. flight testing of |
| ● | 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
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.
Einav Brenner, Chief Financial Officer of Odysight.ai added:
“Our
Q1 2026 revenues were
Operating expenses of approximately $5.4 million were slightly above the prior year period, driven primarily by the continued expansion of our global sales and marketing activities as we build commercial infrastructure in the United States and Europe. We view this investment as strategic and appropriate given the magnitude of the opportunity, while we continue to manage all cost lines with discipline, taking into consideration the adverse effect of the strengthening of the Israeli shekel against the U.S. dollar during the period. In parallel, we have taken active steps to improve organizational efficiency and adaption of AI tools, which we expect to be reflected in our H2/2026 results.
We ended the quarter with approximately $21.8 million in cash, no debt, and a backlog of $14 million. As delayed purchase orders convert in the coming quarters and operational efficiencies begin to take effect, we expect our financial performance to increasingly reflect the underlying momentum and progress of the business.”
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 $82 thousand, compared to approximately $2.1 million for the three months ended March 31, 2025.
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 $1.7 million and additional decrease of our vision-based solutions for PdM and CBM due to certain delays caused from the global geopolitical situation.
Backlog1 was $14 million as of March 31, 2026.
Cost of Revenues was $61 thousand for the three months ended March 31, 2026, compared to $1.5 million for the three months ended March 31, 2025. The decrease in cost of revenues is consistent with the decrease in revenues.
Gross Profit was $21 thousand for the three months ended March 31, 2026, compared to gross profit of $0.5 million for the three months ended March 31, 2025, reflecting a gross margin of approximately 26% in both periods.
Operating expenses were approximately $5.4 million for the three months ended March 31, 2026, compared to approximately $5.1 million for the three months ended March 31, 2025.
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 $5.2 million for the three months ended March 31, 2026, compared to approximately $4.3 million for the three months ended March 31, 2025.
Cash Balance2 as of March 31, 2026 was approximately $21.8 million.
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, $0.001 par value; 300,000,000 shares authorized as of March 31, 2026, and December 31, 2025, 16,773,407 and 16,357,327 shares issued and outstanding as of March 31, 2026, and December 31, 2025, respectively | 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 | ) | ||||