Senstar Technologies (NASDAQ: SNT) cash drops as Q2 profit declines
Rhea-AI Filing Summary
Senstar Technologies Corp (SNT) reported second quarter 2026 revenue of $10.4 million, up 8% from $9.7 million a year earlier, driven by continued growth in LiDAR and the integration of Blickfeld. Gross profit was $6.7 million with a 64.2% gross margin, down from 66.1% mainly due to product and customer mix and consolidating Blickfeld.
Operating expenses rose 18% to $6.4 million, reflecting investments in new security solutions and Blickfeld-related costs, leading to operating income of $0.3 million versus $1.0 million last year. Net income was $0.4 million, or $0.02 per share, compared with $1.2 million, or $0.05 per share. EBITDA was $0.6 million versus $1.1 million in Q2 2025. For the first six months of 2026, revenue was $18.5 million (up 2%), with a net loss of $0.5 million. Cash, cash equivalents and short-term deposits were $8.0 million at June 30, 2026, down from $22.5 million at December 31, 2025.
Positive
- Revenue grew 8% year over year in Q2 2026 to $10.4 million, indicating resumed top-line growth compared with the prior-year quarter.
- Blickfeld achieved positive EBITDA in Q2 2026, and management reports the combined business is generating synergies and progressing on-schedule integration.
- Financial result improved from a loss of ($330,000) to income of $61,000 in Q2 2026, supporting overall profitability.
Negative
- Cash and short-term deposits fell to $8.0 million at June 30, 2026 from $22.5 million at December 31, 2025, a substantial reduction in liquidity.
- Profitability weakened: Q2 2026 operating income declined to $0.3 million from $1.0 million, and net income fell to $0.4 million from $1.2 million year over year.
- Year-to-date performance deteriorated: the first six months of 2026 showed a $0.5 million net loss versus $2.2 million net income in the prior-year period, with EBITDA dropping to $0.1 million from $2.3 million.
Filing Explained
On
Key Figures
Q2 2026 Revenue: $10,447,000
Q2 2026 Net income: $351,000
Q2 2026 Basic and diluted EPS: $0.02
+5 more
8 metrics
Q2 2026 Revenue
$10,447,000
Three months ended June 30, 2026; up 8% from $9,654,000
Q2 2026 Net income
$351,000
Three months ended June 30, 2026; down from $1,224,000
Q2 2026 Basic and diluted EPS
$0.02
Three months ended June 30, 2026; prior year $0.05
Q2 2026 Gross margin
64.2%
Three months ended June 30, 2026; prior year 66.1%
Cash and short-term deposits
$8,122,000
Cash and cash equivalents $7,875,000 plus short-term bank deposits $123,000 as of June 30, 2026
Total assets
$52,829,000
As of June 30, 2026; compared with $54,668,000 at December 31, 2025
Q2 2026 EBITDA
$551,000
Three months ended June 30, 2026; down from $1,139,000
Six months 2026 net income (loss)
($480,000)
Six months ended June 30, 2026; prior year $2,243,000
Key Terms
EBITDA, gross margin, operating income, deferred revenues, +2 more
6 terms
EBITDA financial
"EBITDA for the second quarter of 2026 was 0.6 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.
gross margin financial
"Second quarter gross profit was $6.7 million, or 64.2% gross margin"
Gross margin is the difference between how much money a company makes from selling its products and how much it costs to produce them, expressed as a percentage of sales. It shows how efficiently a company is turning sales into profit before other expenses like marketing or salaries. Higher gross margin means the company keeps more money from each sale, which is a good sign of financial health.
operating income financial
"Second quarter of 2026 operating income of $0.3 million"
Operating income is the profit a company earns from its regular business activities after subtracting the costs directly related to running the business, such as wages, rent, and supplies. It shows how well the core operations are performing, ignoring income or expenses from non-regular activities like investments or one-time events. Investors use it to assess the company's efficiency and profitability from its main work.
deferred revenues financial
"Deferred revenues and customer advances 2,992"
Deferred revenues are cash a company has received up front for goods or services it has not yet delivered; the company records this as a promise to fulfill an obligation later rather than as current earned sales. Investors care because deferred revenues show how much future work a firm must complete before that cash counts as profit, similar to buying a prepaid subscription or gift card that the seller still needs to honor.
restricted cash financial
"Restricted cash and deposits 124"
Cash that a company holds but cannot use for day-to-day operations because it is set aside for a specific purpose—such as meeting loan covenants, serving as collateral, funding an escrow, or complying with regulations. Like money in a locked savings account earmarked for a bill, restricted cash reduces the cash available to run the business and pay dividends or debts, so investors treat it differently when assessing a company’s true short-term financial strength.
Accumulated deficit financial
"Accumulated deficit (4,426)"
Accumulated deficit is the running total of a company’s past net losses minus any profits, showing how much the business has eaten into its own funds over time—think of it like a bank account that’s been overdrawn by repeated shortfalls. It matters to investors because a large accumulated deficit reduces the cushion that protects owners and creditors, can limit dividends or borrowing, and signals how much funding the company may need to reach profitability.
Earnings Snapshot
Q2 2026 Revenue: $10,447,000
Three and six months ended June 30, 2026
Q2 2026 Revenue
$10,447,000
Up 8% from $9,654,000 in Q2 2025
Q2 2026 Net income
$351,000
Down from $1,224,000 in Q2 2025
Q2 2026 EBITDA
$551,000
Down from $1,139,000 in Q2 2025
Six months 2026 Revenue
$18,531,000
Up 2% from $18,102,000 in the prior-year period
Six months 2026 Net income (loss)
($480,000)
Down from $2,243,000 net income in the prior-year period
FAQ
How did Senstar Technologies (SNT) revenue perform in Q2 2026?
Revenue in Q2 2026 was $10.4 million, an 8% increase from $9.7 million in Q2 2025, reflecting growth in LiDAR and broader security solutions.
What was Senstar Technologies (SNT) net income and EPS for Q2 2026?
Net income for Q2 2026 was $0.4 million, compared with $1.2 million a year earlier. Basic and diluted earnings per share were $0.02, down from $0.05 in Q2 2025.
How did Senstar Technologies (SNT) margins change in Q2 2026?
Q2 2026 gross margin was 64.2%, down from 66.1% in Q2 2025. Operating margin declined to 3.3% from 10.1%, and net margin decreased to 3.4% from 12.7%.
What were Senstar Technologies (SNT) cash levels at June 30, 2026?
Cash, cash equivalents and short-term bank deposits totaled $8.0 million at June 30, 2026, including $7.9 million in cash and $0.1 million in short-term deposits, down from $22.5 million at December 31, 2025.
How did Senstar Technologies (SNT) perform for the first six months of 2026?
For the six months ended June 30, 2026, revenue was $18.5 million (up 2% from $18.1 million), with a net loss of $0.5 million versus net income of $2.2 million in the prior-year period. EBITDA was $0.1 million versus $2.3 million.
What were Senstar Technologies (SNT) operating expenses in Q2 2026?
Operating expenses in Q2 2026 were $6.4 million, up 18% from $5.4 million in Q2 2025, mainly due to investments in innovative security solutions and costs related to the Blickfeld acquisition.
AI-generated analysis. How Rhea-AI works. Not financial advice.
