Actelis Networks Reports Third Quarter 2025 Financial Results and Operational Update

Core Insights - Actelis Networks reported a significant increase in customer bookings, nearly doubling compared to Q2 2025, with a stronger backlog entering Q4 2025 [1][2] - The company is on track with its reorganization and efficiency plan, targeting a 15-20% reduction in operating expenses [1][3] - Actelis is expanding its cybersecurity, hardware, and software sales across telecom and infrastructure networks [1][3] Financial Performance - Customer bookings reached $1.26 million in Q3 2025, nearly double the levels from Q2 2025, with a backlog of $0.73 million entering Q4 [3] - Q3 2025 revenue was $0.64 million, a decline from approximately $2.54 million in Q3 2024, attributed to the timing of major Federal deals and the non-recurrence of a large contract [5][6] - Gross margin for Q3 2025 was 28%, with a nine-month gross margin of 32%, benefiting from high-value cybersecurity software upgrades [3] Operating Expenses - Operating expenses in Q3 2025 were $2.11 million, slightly up from $2.06 million in the prior year, impacted by foreign exchange and stock-based compensation [3] - The company is implementing cost-reduction measures, with operating expenses expected to decline year-over-year for both the three- and nine-month periods [3][12] Market Opportunities - Actelis is seeing traction in Federal and Military markets, with a notable FAA deal of nearly $0.5 million and additional opportunities in the pipeline [2][3] - The newly appointed Chief Revenue Officer for the Americas is focusing on growth initiatives in these markets [3] Cybersecurity Initiatives - The company is advancing its cybersecurity initiatives, enhancing protection for customers' legacy and hybrid network deployments [3][22] - Actelis is accelerating upgrades and cyber-related services to address vulnerabilities and emerging threats [3] Balance Sheet and Compliance - Actelis strengthened its balance sheet by raising $1.85 million through private placements and a $1.6 million warrant exercise transaction [4] - The company entered into a $30 million equity line of credit to enhance liquidity and maintain compliance with Nasdaq requirements [4]