Elsight Limited

Elsight reported approximately $23 million in full-year 2025 revenue, up 11-fold versus 2024, and said the company reached profitability in 2025. Management also said it ended the year with $59 million in cash and began 2026 with $22 million in confirmed orders, which it said equals 96% of 2025 revenue. Q4 converted approximately $10 million of pipeline into recognized revenue, while the cumulative pipeline stood at $137 million versus $157 million previously. Gross margin was described as approximately 77%, and software-stack margin improved from 82% to 90%. Recurring services revenue was $2.6 million in 2025. Looking ahead, management said the Phase 3 DIU program should conclude by the end of March, with first revenue expected around a quarter later, toward the end of Q2 or during Q3. Management also said it expects 2026 recurring revenue to be much higher and gross margins to move higher as software content grows.

Yoav Amitai’s message was that Elsight has crossed an inflection point and is now entering a scale phase rather than merely proving the concept. He described the market as a “perfect storm” for uncrewed systems, driven by defense spending, COTS adoption, and demand for resilient mission completion in contested environments. Strategically, he emphasized expanding from connectivity into a broader mission-enabling platform across capabilities, geographies, and domains, while staying profitable and disciplined.

There was no separate CFO speaker; management commentary on financials came from the CEO and Q&A. He highlighted $59 million in cash, the $22 million order backlog with 40% upfront already collected, and a capital-light manufacturing model using contract manufacturers rather than company-owned facilities. He also cited approximately $1 million of accumulated certification spending over the last five years, said the company is comfortable with current production capacity, and noted some component price increases but said they should be passed through to protect gross margin. On tariffs, he said exposure is limited and that first U.S. production by a U.S. manufacturer is expected in the first half of the year.

Management was pressed on when cash from the $22 million in new contracts would arrive, whether backlog included recurring revenue, and what portion of 2025 sales came from Elsight Cloud. Yoav said 40% upfront is already in cash, backlog is net new sales only, and recurring revenue was $2.6 million in 2025. He also said 2025 revenue came from 92 design-win customers out of more than 110 total, that the DIU Phase 3 program is funded and should finish by end-March, and that first revenue from it could arrive in Q2 or Q3. Questions also focused on manufacturing capacity, tariffs, market expansion, and margins; management said capacity is ample, tariff exposure is limited, and margins should improve as software mix rises.