TSG IT Advanced Systems (TSG) Q1 2026 earnings summary

Executive summary

• Achieved record results in Q1 2026, with all key financial metrics reaching new highs compared to both the previous quarter and the same quarter last year.

• Continued expansion in AI capabilities and integration of advanced sensor and hardware solutions through recent acquisitions.

• Strengthened presence in high-growth markets and advanced joint ventures to deepen European market penetration.

Financial highlights

• Revenue grew 19% year-over-year to approximately ₪121 million in Q1 2026.

• Adjusted gross profit rose 30% year-over-year to ₪34 million, with margin improving to 28%.

• Adjusted operating profit increased 30% year-over-year to ₪17 million, margin at 14%.

• Adjusted EBITDA up 33% year-over-year to ₪19 million, margin at 16%.

• Adjusted net income surged 73% year-over-year to ₪13 million, margin at 10%.

• Sequentially, revenue grew 5% and net income rose 23% from Q4 2025.

Outlook and guidance

• Focus on accelerating AI development and leveraging data fusion and command/control strengths.

• Expansion of recurring long-term revenues and entry into strategic infrastructure protection markets.