ELS are profitable now .... If you look at the burn rate previously and their margins then their breakeven point is between $6 to $7 mio in revenue and thatallows for a few extra sales staff.
Yoav was here for a few days and presented to a few local funds , family offices and two or three of the large broking firms. The key points were
They don't need money .
The settlements terms are very favourable .
There are more orders to come as announced .
They are signing up new clients every month across many different industries .
The commercial business is growing and the first quarter numbers for 2025 was from 70 of existing clients and most of that revenue was none military .
This clients range in size from very large globaly recognised companies to new small emerging companies across different markets .
The commercial market will continue to grow while we wait for scale once regulatory rules are in place....
Military drones DO have recurring revenue . (the kamikaze drones ... we dont need to state the obvious RR here ....)
If all conflicks were to end today the damand for drones in the military space will continue to increase as globally all governments are increasing defense budgets for the switch to a drone/UAV/UGVrobotics army shifting away from what we know today as the standard military harware .
The lifecycle of a military drone is probably under 3 years and there will be a massive on going demand . The key point here is they need and want the drones NOW rather than the tradional military programs that take 10/20/30 years from concept/design/development /testing./debugging and the delivery in replacing fighter jets ,tanks ,subs, etc . They need the drones now.! They need to ready now !
The new cellular product is progressing very well and as announced we should see progress /orders soon..... second half of the year .
This is a massive market opportubity not only in the military space but commercial market . A new secure standard of communication.
Elsight has NO supply chain issues and has NO production/capicity limit issues .
Yoav was very confident , very clear on the path moving forward and painted a very exciting future .
ELS Price at posting:
57.0¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)