Elsight (ELS) Q3 2026 TU earnings summary

Executive summary

• 9M 2026 revenue reached US$25.8m, up 91% YoY and 13% above FY2025 revenue; Q3 revenue was below expectations.

• The $195.7m pipeline covered 59 identified opportunities at 30 September; $3.5m was contracted across 12 deals.

• Cash was US$59.4m with no borrowings, supporting continued investment in products, market access and manufacturing capacity.

• Halo combines connectivity, positioning, sensing and video, autonomy and AI, and cloud-based fleet management for uncrewed systems.

Financial highlights

• 9M unaudited revenue was US$25.8m, up 91% on PCP and 13% above CY2025 revenue of US$22.8m; 9M remained non-GAAP profitable, with profit exceeding US$8m.

• Q3 unaudited revenue was ~US$2.4m, with a non-GAAP loss of ~US$0.7m; results were below expectations.

• 9M recurring revenue from software licenses, cloud services and connectivity subscriptions was ~US$4.5m, versus ~US$2.6m for full-year CY2025.

• Gross margin was 77%; average gross margin was also cited at ~77% per sale, with higher software margins and hardware margins around that level.

• 9M customer receipts were US$15.0m; Q3 receipts were US$1.4m.

Outlook and guidance

• Management expects Q4 revenue to exceed Q3 and subsequent quarterly revenue to remain at prior-quarter levels or higher, including into 2027; formal guidance awaits sufficient visibility.

• Pipeline opportunities generally cover 12–24 months; management expects a large portion of tangible opportunities to convert over the next 12 months, but the pipeline is not a revenue forecast.

• AeroVironment integration of Halo into the Mayhem 10 launched effects system is expected to start generating revenue in FY2027.

• The positioning product is expected to generate meaningful revenue in 2027; Mini Halo is targeted for launch around February–March 2027.

• Priorities include European defence OEM discussions, U.S. Army and Special Operations opportunities, follow-on customer orders, software releases and positioning adoption; new budgets may contribute materially from CY2027, subject to awards and timing.