ASNSOTCCommunications Equipment, NECUS GAAP · USD

Actelis Networks Inc

Actelis Networks, Inc. designs and sells networking equipment and software that extends high-speed, long-reach connectivity over existing wireline infrastructure such as copper and coax, reducing the need for new fiber builds. Historically the company sold primarily to telecommunications service providers for enterprise, residential, and mobile base-station backhaul, with deployments across more than 100 telcos globally. In recent years it has shifted emphasis toward wide-area IoT networks, U.S. federal and Department of Defense use cases, and connectivity for multi-dwelling units. The company is also developing “cyber-aware” networking capabilities, including Triple‑Shield protections (coding, scrambling, encryption) and secure access to network management software, with an intent to add more software and license-based cyber protection over time.

Ask about the company
Revenue3.7m USD
−52.7 %y/y
Operating profit (EBIT)-7.2m USD
−91.2 %y/y
EBIT margin-195.7%
−147.3 ppy/y
Net income-8.3m USD
−88.9 %y/y
Free cash flow-7.7m USD
−17.6 %y/y

Fiscal year 2025 · change from previous year

Development 2021–2025

-10-50510m USD2021: 8.5 m USD2021: EBIT -1.9 m USD20212022: 8.8 m USD2022: EBIT -6.1 m USD20222023: 5.6 m USD2023: EBIT -7.4 m USD20232024: 7.8 m USD2024: EBIT -3.8 m USD20242025: 3.7 m USD2025: EBIT -7.2 m USD20253.7-7.2
RevenueOperating profit (EBIT)

Business

Share of revenue
Networking hardware (access/aggregation)70 %

Wireline networking devices that deliver high-speed, long-reach connectivity over existing copper/coax/fiber infrastructure.

Wide-area IoT solutions15 %

Connectivity solutions tailored for wide-area IoT deployments where fiber buildouts are costly and slow.

Network management software10 %

Software used to configure, monitor, and manage deployed Actelis networks with secure access controls.

Cyber-aware features and licenses5 %

Security capabilities such as Triple‑Shield protection and emerging network-wide cyber protection software/licensing.

Customers

Actelis primarily sells to network operators and organizations that need reliable, secure, long-reach connectivity without the cost and time of deploying new fiber. Telecom service providers remain an important channel and end-customer base, using Actelis equipment for enterprise access, residential connectivity, and mobile base-station backhaul. The company has increasingly targeted wide-area IoT operators and public-sector buyers, including U.S. federal agencies and the Department of Defense, where security and manageability are key purchasing criteria. Multi-dwelling unit (MDU) deployments represent another use case where existing building wiring can be leveraged to deliver broadband services. Customer demand is influenced by total cost of ownership and deployment timelines, particularly where civil works for fiber would dominate project cost and schedule.

Telecommunication service providers (Telcos)

Buy access/aggregation equipment for enterprise, residential and mobile base-station connectivity using existing wireline infrastructure.

Wide-area IoT operators and solution providers

Adopt long-reach connectivity to avoid costly and slow fiber builds and to improve deployment speed and coverage.

U.S. federal and public sector

Procure secure, manageable networking solutions for government networks where reliability and cyber protection are critical.

Department of Defense

Use secure connectivity and network management capabilities for defense-related deployments with elevated security requirements.

Multi-dwelling unit (MDU) connectivity

Deploy connectivity solutions that leverage in-building wiring to deliver broadband services efficiently.

Strategy

The company’s strategic direction is to pivot from a telco-centric heritage toward wide-area IoT, federal/DoD, and MDU connectivity opportunities where leveraging existing wireline infrastructure can reduce deployment time and total cost of ownership. A central product strategy is to differentiate on security by embedding cyber protections (Triple‑Shield) and securing access to network management tools. Management also indicates ongoing development to enhance system-level and device-level software protection and to introduce network-wide cyber protection software that could be sold as licenses/services. Operationally, the strategy implicitly depends on maintaining resilient manufacturing and supply chains across Israel and Taiwan while serving U.S. demand. Separately from operating strategy, the board-approved treasury allocation to cryptocurrencies introduces a new capital allocation dimension that can affect liquidity and risk tolerance.

Expand cyber-aware networking and software licensingMedium term

Security features and licenses can increase differentiation and recurring software revenue potential.

Rebalance go-to-market toward IoT, federal/DoD, and MDUMedium term

These markets value fast deployment and lower ToC versus new fiber builds, aligning with Actelis' wireline extension approach.

Geography

Q1/2026

Actelis sells internationally and has historically deployed solutions with more than 100 telecom service providers worldwide. The company manufactures products in Israel and Taiwan and imports finished goods into the United States, making its cost structure and delivery timelines sensitive to cross-border logistics and trade policy. Management commentary indicates regional revenue mix shifts, including a decline in EMEA revenue and increases in North America and Asia-Pacific in the referenced quarter, which can affect gross margin due to differing profitability by region. Operationally, Israel is also important because research and development facilities are located there, creating exposure to regional instability. No authoritative revenue-by-geography percentage table was provided in the excerpts, so a formal percentage breakdown is not included.

North America89 %
Asia Pacific11 %

Share of the revenue the company reports by geography.

Risks

Actelis faces supply chain and trade-policy risk because it manufactures in Israel and Taiwan and imports products into the United States; tariffs or trade disputes can raise input costs and reduce demand or force price increases. The company also discloses operational risk tied to conditions in the Middle East and Israel, where its R&D facilities are located, which could disrupt engineering execution and product roadmaps. As a communications equipment vendor, it is exposed to customer concentration and project timing risk (large orders, procurement cycles, and regional mix shifts can drive volatile quarterly results and margins). Cybersecurity is both a product requirement and an operational risk, particularly as the company expands software and remote management capabilities. Additionally, the newly adopted cryptocurrency treasury strategy introduces market volatility, custody/third-party platform risk, and regulatory uncertainty that could affect liquidity and financial stability.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Tariffs and international trade policy changes1Operational disruption from conditions in Israel/Middle East2Cryptocurrency treasury strategy volatility and regulatory uncertainty3Digital asset custody and third-party platform risk4
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Tariffs and international trade policy changesImpact: HighLikelihood: Medium

    Products are manufactured in Israel and Taiwan and imported into the U.S., so tariffs can raise input and landed costs and reduce demand.

    Exposure: Imports into the United States; cross-border supply chain

  2. Operational disruption from conditions in Israel/Middle EastImpact: HighLikelihood: Medium

    R&D facilities are located in Israel; instability could disrupt engineering, staffing, and execution.

    Exposure: R&D operations in Israel

  3. Cryptocurrency treasury strategy volatility and regulatory uncertaintyImpact: HighLikelihood: Medium

    Digital asset prices can fluctuate rapidly and evolving regulation may impose constraints, potentially impairing liquidity and financial stability.

    Exposure: Treasury holdings in Bitcoin/other cryptocurrencies; U.S. and international regulation

  4. Digital asset custody and third-party platform riskImpact: MediumLikelihood: Medium

    Reliance on third-party custodial/trading platforms increases cybersecurity and operational disruption risk and may lack customary safeguards.

    Exposure: Third-party custodians and transaction platforms

Accounting

Judgemental items
Revenue from contracts with customers (ASC 606)

Hardware deliveries and any bundled software/services require judgments that affect timing and classification of revenue.

Impact: Quarterly revenue volatility and gross margin comparability

Customer advances and working capital timing

Advance payments can temporarily boost operating cash flow and change period-to-period comparability.

Impact: Operating cash flow and deferred revenue/contract liability movements

Digital asset accounting and internal controls

Crypto holdings rely on evolving standards and third-party custodians, increasing measurement and control complexity.

Impact: Potential earnings volatility and expanded disclosure/control requirements

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Last updated: 24/09/2026