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Actelis Networks Reports Second Quarter 2026 Financial Results and Provides Business Update
Revenues were up 20% year over year, reaching $1.1 million in the second quarter of 2026; gross margin was 51%, compared to 32% in the second quarter of 2025
New wins across Intelligent Transportation Systems (ITS), U.S. carriers, and multi-dwelling unit (MDU) markets
Company continues to implement operational efficiencies and cost reduction as well as other steps in support of effort to relist on Nasdaq
SUNNYVALE, Calif., Aug. 13, 2026 (GLOBE NEWSWIRE) — Actelis Networks, Inc. (OTCQB: ASNS) (“Actelis” or the “Company”), a market leader in cyber-hardened, rapid-deployment networking solutions for IoT and broadband applications, today reported financial results for the second quarter ended June 30, 2026.
“During the second quarter, Actelis continued to execute our 2026 plan – increase our partner network and penetration into Federal and Military base modernization opportunities, expand our footprint with new offerings in the Intelligent Transportation vertical, driving recurring software and services revenue with U.S. carriers, and building traction in the multi-dwelling and hospitality markets with our GL9000 platform,” said Tuvia Barlev, Chairman and Chief Executive Officer of Actelis Networks. “Better revenue mix and continued cost discipline drove a meaningful improvement in gross margin this quarter – expanding to 51% from 25% in the first quarter of 2026 and from 32% in the second quarter of 2025. Our operating loss narrowed year-over-year despite continued foreign exchange pressure. The trading environment on the OTCQB market has been challenging, but we believe the strength of our operating progress – combined with the structural steps our shareholders have already authorized – positions us to pursue a return to Nasdaq when the timing and metrics align. Our focus is on building the business and generating value for our customers and shareholders.”
Business and Financial Highlights
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Revenue growth and gross margin expansion.Second quarter 2026 revenue was $1.1 million, representing a 20% year-over-year increase compared to $0.9 million in the second quarter of 2025. Year-to-date revenues were $2.1 million, a 26% increase compared to the first six months of 2025.Gross margin grew to 51% in the second quarter of 2026, compared to 32% in the second quarter of 2025 and 25% in the first quarter of 2026, reflecting an improved software and services mix.
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Cost and operational-efficiency actions. Actelisexecuted additional cost-reduction and operational-efficiency initiatives during the period, including facility downsizing, vendor consolidation, outsourcing of certain finance functions and other services generating future savings of approximately $1 million on an annualized basis, which will impact future quarters. The Company also continued the internal deployment of AI-based tools intended to expand productivity across the organization.
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Structural steps in support of relisting on Nasdaq.The Company’s goal is to return to Nasdaq at the appropriate time. Consequently, the Company continues to advance the steps its shareholders have authorized for that purpose, including the reverse stock split within a range of 1-for-10 to 1-for-25 approved by shareholders at its special meeting in April 2026, which the Board of Directors may implement in its discretion at any time for a period of one year from the date of the special meeting. In addition, subsequent to quarter end, on July 1, 2026, the Company successfully amended its equity line of credit, with a capacity of up to $30M as a result of its transition to be traded on OTCQB in order to serve the Company better for that goal. The Company’s focus remains on executing its business plan and demonstrating operational and financial progress as the foundation for a future uplisting application.
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Software and services renewal.Delivered a $0.85 million software and services renewal from a leading North American carrier, including a version upgrade of the Company’s Meta-Assist Element Management System (EMS) and continued adoption of the Company’s MetaLIGHT solution for converting legacy T1 lines to fiber-grade connectivity.
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Continued expansion in ITS markets.Received multiple follow-on orders from the Washington, D.C. Department of Transportation and new orders for deployments across U.S. state, county, and municipal transportation agencies, including a new order supporting an intelligent transportation system project with the Alaska Department of Transportation.
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GL800 traction in Europe and beyond.Received an approximately $200,000 order from a Central European carrier for the Company’s GL800 multi-Gigabit hybrid fiber-copper solution, supporting gigabit-level connectivity over copper to small-office / home-office (SOHO) customers within multi-dwelling unit buildings. Customer interest in the unique GL800 platform continues to grow across military and smart-city applications.
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Cyber-hardening and EU Cyber Resilience Act (CRA) tailwind.The Company’s cyber-hardening capabilities – embedded in its Meta-Assist EMS and in its edge products – are becoming more valuable to customers as the EU Cyber Resilience Act approaches implementation, supporting software and hardware upgrade opportunities and update cyber-safety related service with Actelis’ installed base and with new deployments.
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Strategic collaboration with Exaware.On June 16, 2026, entered into a Memorandum of Understanding with Exaware Routing Ltd. to preserve strategic collaboration across data center, telecom, federal and local government, and critical infrastructure markets. The Memorandum of Understanding replaced the parties’ previously disclosed acquisition term sheet.
