Elsight (ELS) Q4 2025 TU earnings summary

Executive summary

• Achieved record 2025 revenue of $23 million, an 11-fold increase over 2024, with Q4 revenue at $9.3 million.

• Reached profitability and ended 2025 with $59 million in cash, providing a strong foundation for growth.

• Secured a $21.2 million contract for early 2026 delivery, expanding forward revenue visibility.

• Entered 2026 with $22 million in confirmed orders, representing 96% of 2025 revenue.

• Strategic expansion into new geographies, domains, and product capabilities, including new business units.

Financial highlights

• 2025 revenue reached $23 million, up from $2 million in 2024, with recurring revenue from software and subscriptions at $2.6 million.

• Gross margin stood at approximately 77%, with software margins increasing from 82% to 90% quarter-over-quarter.

• Operating cash flow for 2025 was $19.8 million, with cash receipts totaling $32.8 million.

• Cash and cash equivalents at year-end were $59 million.

Outlook and guidance

• Order backlog expanded to $22 million, supporting strong revenue visibility into 2026.

• Recurring revenue expected to grow significantly in 2026 due to rapid deployment and revenue recognition timing.

• Multiple new product launches and a new business unit targeting a $20 billion TAM planned for 2026.

• Margins expected to expand further as software and recurring services increase.