Senstar Technologies (SNT) Q4 2025 earnings summary

Executive summary

• Achieved full-year revenue of $36.4 million, up 2% year-over-year, with gross margin rising to 65.5% and net income of $3.2 million.

• Maintained a strong balance sheet with $22.5 million in cash and no debt at year-end, up from $20.6 million in 2024.

• Fourth quarter revenue declined 14% year-over-year to $8.8 million, with a net loss of $33,000, due to US government project delays and a non-recurring EMEA telecom project.

• Core verticals grew 5% for the year, with notable strength in corrections and energy, especially in North America and EMEA.

• EBITDA for 2025 was $3.7 million, down from $4.6 million in 2024, due to higher operating expenses.

Financial highlights

• Full-year gross margin improved to 65.5% from 64.1% in 2024, with gross profit of $23.8 million.

• Operating income for 2025 was $3 million, down from $3.9 million in 2024, due to higher G&A costs and slower revenue growth.

• Operating expenses for 2025 were $20.8 million, up 9% year-over-year, mainly due to Blickfeld acquisition and closing of a foreign entity.

• Fourth quarter gross margin was 61.5%, down from 64.5% in Q4 2024.

• Q4 EBITDA was $15,000, down from $1.6 million in Q4 2024.

Outlook and guidance

• Entering 2026 with an expanding pipeline and strong demand across core markets and new verticals, especially in Data Centers, Energy, and LiDAR applications.

• Expecting revenue from delayed US government and EMEA telecom projects to materialize in 2026.

• Focused on execution, pipeline conversion, and leveraging the Blickfeld acquisition for growth in LiDAR, volume monitoring, and traffic applications.

• LiDAR market projected to grow over 20% annually, supporting long-term growth.