Actelis Networks revenue rises 68% as quarterly net loss narrows 37%

By Olivia Hart

Actelis Networks generated $1.1 million in third-quarter 2026 revenue, up 68% from $643,000 a year earlier, while its quarterly net loss narrowed 37% to $1.2 million.

How much did Actelis improve operationally?

The third-quarter result marked Actelis Networks’ third consecutive quarter of year-over-year revenue growth. Gross profit rose to approximately $431,000 from $183,000, more than doubling alongside the sales increase. Gross margin expanded to 40% from 28%, reflecting higher revenue and a more favorable contribution from software.

Tuvia Barlev, chairman and CEO of Actelis Networks, said: “We grew revenue year over year for the third quarter in a row, and revenue grew 68%, gross margin rose to 40% from 28% and operating expenses fell 13%, cutting our net loss by more than a third.” The figures support that description.

Operating expenses declined 13% year over year. Together with revenue growth and the wider gross margin, that change cut the quarterly net loss by 37% to $1.2 million from approximately $2 million. Adjusted EBITDA loss narrowed to $1.4 million from $1.8 million.

The remaining adjusted EBITDA loss equaled 130% of quarterly revenue, compared with 283% in the prior-year period. That works out to roughly $1.30 of adjusted EBITDA loss for every $1 of revenue, down from $2.83. Actelis did not disclose a timetable for positive adjusted EBITDA, leaving the central financial constraint unresolved.

Which markets drove the growth?

North American revenue increased 170%, supported by deliveries to federal and intelligent transportation system customers in the United States. Asia-Pacific revenue increased 233%. Actelis also continued serving transportation and infrastructure customers across Europe, the Middle East and Africa.

Those disclosures show geographic reach, but Actelis gave no third-quarter growth rate for Europe, the Middle East and Africa. It also did not quantify revenue from federal and intelligent transportation customers or disclose customer concentration. North America was the better-documented growth driver, but the concentration and dollar mix behind the gains remain undisclosed.

What does the nine-month record show?

For the first nine months of 2026, revenue increased 38% to $3.2 million from $2.3 million. North American revenue rose 56%, while revenue in Europe, the Middle East and Africa increased 13%, as did Asia-Pacific revenue. The nine-month net loss narrowed 11% to $5.1 million.

Adjusted EBITDA loss improved to $4.7 million from $5.2 million. The third-quarter 68% revenue growth outpaced the 38% nine-month rate, showing that the latest quarter delivered the stronger pace. Even so, the nine-month net loss exceeded nine-month revenue, underscoring how far the company remains from profitability.

North America’s 170% third-quarter increase also compared with 56% for the nine months, while Asia-Pacific’s 233% quarterly growth compared with 13% for the nine months. That pattern points to stronger recent revenue performance, although the company disclosed no regional revenue bases to show how much each market added in dollars.

Despite the 11% reduction, the nine-month net loss of $5.1 million exceeded nine-month revenue of $3.2 million. The $4.7 million adjusted EBITDA loss also remained well above revenue. The latest quarter grew faster than the year-to-date pace, but losses still overwhelmed sales.

Can Actelis return to Nasdaq?

Actelis ended the quarter with $4.8 million in cash and cash equivalents, compared with approximately $4.1 million at the end of 2025. The reported increase was about $700,000, or 17%, though the company did not explain the drivers of that change. The cash balance gives Actelis more room to pursue its pipeline, but it does not establish a financing timetable.

Actelis disclosed no cash-burn forecast, and the cash increase does not prove the business can fund itself. Actelis is seeking to convert a pipeline of transportation, utility, government and military-networking opportunities into revenue while pursuing the strategic and capital-markets steps required for a return to Nasdaq.

It did not disclose the pipeline’s value, financing structure, milestones or timing. The Nasdaq objective therefore remained a stated goal rather than a dated transaction. The next test is whether Actelis can convert that pipeline into revenue quickly enough to narrow operating losses while completing the capital-markets steps needed for a Nasdaq return.