• Revenue: Increased 38% to $7.8 million, up from $5.6 million in 2023.

• Gross Margin: Improved to 55%, up from 34% in 2023, reflecting a 125% year-over-year improvement.

• Operating Expenses: Decreased by 13% to $8 million.

• Operating Loss: Reduced to $3.8 million, down from $7.4 million in 2023.

• Net Loss: Decreased to $4.4 million from $6.3 million in 2023.

• Loss Per Share: Reduced by 67% to $0.85 per share.

• Adjusted EBITDA Loss: Improved to $3.5 million, compared to $6.1 million in 2023.

• Debt: Nearly all outstanding debt repaid, with $774,000 bank credit line remaining.

• Cash Position: Cash, cash equivalents, and restricted cash at $2.3 million at year-end.

• Warning! GuruFocus has detected 5 Warning Signs with ASNS.

Release Date: March 24, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Actelis Networks Inc (NASDAQ:ASNS) reported a 38% increase in revenue for 2024, reaching $7.8 million, driven by a 134% increase in North American revenues.

• The company achieved a 125% improvement in gross margin, reaching 55% for the full year, reflecting a strategic focus on higher-margin segments.

• New orders in the Federal and Military sector grew by 150% year-over-year, indicating strong market demand.

• Actelis Networks Inc (NASDAQ:ASNS) introduced the MetaShield solution, an AI-driven SaaS offering for cybersecurity, expected to generate recurring revenues.

• The company reduced operating expenses by 13% year-over-year, contributing to a 49% decrease in operating loss.

Negative Points

• There was a sequential decline in revenue from Q3 to Q4, attributed to the lumpiness of larger orders and unpredictable timing.

• Despite improvements, the company is not yet profitable, with a net loss of $4.4 million for 2024.

• Cash, cash equivalents, and restricted cash decreased to $2.3 million at year-end, down from $5.5 million in 2023.

• The company may need to raise equity or debt to support growth initiatives, which could lead to potential dilution.

• The timing of large contracts, such as the NRTS project in the UK, remains uncertain, impacting revenue predictability.

Q & A Highlights

Q: There was a sequential decline in revenue from Q3 to Q4. What caused this, and should we expect similar fluctuations in the future? A: Tuvia Barlev, CEO, explained that the business experiences lumpiness due to the timing of large orders, which can vary. The company is focused on growth across three major markets: federal, city transportation and IoT, and MDU markets. Over time, as the customer base and channels expand, these fluctuations are expected to stabilize.