Core Insights - Actelis Networks reported a significant increase in fourth quarter revenue, more than doubling sequentially to approximately $1.4 million, reflecting a 113% increase from $0.64 million in the third quarter of 2025 [1][3] - Despite a challenging year with total revenues of $3.7 million for 2025, down from $7.8 million in 2024, the company showed operational momentum and improved margins in the fourth quarter [1][4] Financial Performance - Fourth quarter revenue increased by 29% compared to the same quarter in 2024, driven by better revenue conversion from earlier projects [3] - Gross margin improved to 35% in the fourth quarter from 28% in the third quarter of 2025 [3] - Operating loss for the year was $7.2 million, compared to $3.8 million in 2024, primarily due to lower sales [10][12] Cost Management - The company continued to execute its cost reduction plan throughout 2025, with operating expenses increasing by only $0.3 million despite foreign exchange impacts [3][10] - General and administrative expenses decreased to $2.9 million in 2025 from $3.2 million in 2024, reflecting cost reduction measures [8] Market Expansion - Actelis is expanding its presence in the federal and defense markets, securing deployments for U.S. military base connectivity and Federal Aviation Authority infrastructure initiatives [3] - The company is seeing increased demand in the Intelligent Transportation Systems sector, with notable projects in various U.S. locations [3] Product Development - Actelis completed the development of its MDU product family in 2025, enabling deployments in fiber-grade networks for hotels and sports venues [13] - The company introduced a new cyber vulnerability monitoring service to enhance network security for customers [13] Cash Position - As of December 31, 2025, the company had approximately $4 million in cash and cash equivalents, with additional gross proceeds of about $7.3 million raised through its At-the-Market facility [15] - The company has authorized an expansion of its share repurchase program, increasing the amount from $1 million to $1.5 million [16]