HUB Cyber Security Ltd.

Hub reported H2 2024 revenue of $13.8 million, down from $17.6 million in H2 2023, and full-year 2024 revenue of $39.6 million versus $42.7 million in 2023. Gross margin rose to 25.6% in H2 2024, up 15.4% year over year, and full-year gross margin was 17.1% versus 1.8% in 2023. Operating expenses declined to $14.7 million in H2 2024, down 29% from $20.9 million, while H2 operating loss was $11.1 million, an improvement of 38%; full-year operating loss improved to $26 million. Cash and cash equivalents ended the year at $3.1 million, and liabilities rose to $108 million from $83 million, largely due to warrant liability tied to fundraising. Management did not provide next-quarter or full-year quantitative guidance, but said the shift toward platform software should accelerate in 2025 and that the Bank of San Marino contract is expected to be fully executed in 2025.

Noah Hershcoviz framed the quarter as part of a broader turnaround, emphasizing a cleaner, more focused business built around a secured data fabric platform and a stable professional services base. He said Hub has exited lower-margin work, improved operational discipline, and is building toward recurring software revenue, with the data fabric business positioned as the primary growth engine. His tone was optimistic and assertive, repeatedly stressing that the company is “stronger, leaner and more focused.”

Lior Davidson focused on the financial reset: H2 2024 revenue was $13.8 million, gross margin improved to 25.6%, operating expenses fell to $14.7 million, and operating loss improved to $11.1 million. For the full year, revenue was $39.6 million, gross margin was 17.1%, and operating loss improved to $26 million, with expenses down roughly 60% year over year. He also noted cash and cash equivalents of $3.1 million, liabilities of $108 million versus $83 million, and said the company converted a significant portion of convertible debt into equity and is actively managing working capital deficits.

Analysts asked about Hub’s competitive advantage, the shift from hardware/services to software, margin profile, geographic priorities, revenue quality, gross margin drivers, and compliance/transparency. Management said its edge is a software layer that can be added on top of existing infrastructure, combining compliance, AI analytics, and military-grade security without a forklift replacement. It also said the secured data fabric should become the main vertical, margins could reach 80% to 90% in that business, and the US launch is targeted first at transportation with an initial signed contract expected in 2025. On revenue quality, management said over 60% of 2024 revenue came from long-term recurring contracts and that it is targeting five to ten new SaaS compliance clients.