Elsight (ELS) Q2 2026 TU earnings summary

Executive summary

• Achieved record H1 2026 revenue of US$23.4 million, surpassing full-year 2025 revenue, with Q2 2026 revenue of US$11.83 million, nearly five times the prior period.

• Sustained profitability and positive cash flow, with H1 2026 non-GAAP net profit expected to exceed US$10 million and US$63.3 million in cash at 30 June 2026.

• Significant traction in both commercial and defense markets, especially in the U.S. and Europe, with a growing pipeline and backlog.

• Positioned as a Tier 1 backbone provider for unmanned systems, expanding from communications to broader enablement technologies.

• Secured first paying customer for stealth-mode/Stealth Initiative business unit, validating entry into a US$20 billion market.

Financial highlights

• Q2 2026 revenue reached US$11.83 million, up threefold year-over-year, with H1 2026 revenue of US$23.4 million, a 387% increase, and a US$3.2 million backlog.

• Gross margin remains high at 76%, with software and services achieving 92% gross margin.

• Cash and cash equivalents at 30 June 2026 stood at US$63.3 million.

• Revenue is diversified across 84 customers, with a decreasing concentration among top clients.

• High-margin sales pipeline with US$168 million in realizable opportunities.

Outlook and guidance

• Expecting a strong second half of 2026, with continued revenue growth and pipeline expansion into 2027.

• Material revenue contribution from U.S. defense programs expected from CY2027 onwards.

• New product targeting the lower end of the market to be generally available by January 2027.

• Broader commercial launch of GNSS-denied positioning capability planned for late CY2026.

• Expansion of sales and marketing teams in US, EU, and Middle East to drive pipeline growth.