Actelis Networks Achieves Positive EBITDA and Significant Revenue Growth in Q2 2024

Actelis Networks (NASDAQ: ASNS) has reported significant achievements in its Q2 2024 financial results, marking a notable milestone with a positive EBITDA, the first since 2022. The company’s strong performance is underscored by a 372% sequential revenue growth from Q1 2024, reaching $3.43 million, and an 81% year-over-year increase. This reflects the growing demand for Actelis’ innovative solutions within the IoT and cybersecurity sectors.

The company’s gross margin saw a significant rise to 57% in Q2 2024, up from 30% in the previous quarter, driven by robust revenue growth and effective cost management. Additionally, Actelis successfully reduced operating expenses by 20% year-over-year, resulting in a net loss of just $78,000 for Q2 2024, a substantial improvement from the $1.59 million net loss in Q2 2023. The company also achieved a positive Non-GAAP adjusted EBITDA of $11,000, marking its first positive quarter since 2022.

Complementing its financial success, Actelis has secured and delivered a $2.3 million order from Washington D.C.’s Department of Transportation, strengthening its position in the intelligent transportation space. The company has also deployed its hybrid-fiber, cyber-hardened solution in Bakersfield, CA, enhancing urban infrastructure and security.

Actelis’ newly launched GigaLine 800 and GigaLine 900 Multi-Dwelling Unit (MDU) solutions are generating significant market interest, with ongoing customer trials. A first order for the GigaLine 800, valued at $160,000, from a contractor to a major military carrier, marks a significant milestone for the new products.

In June 2024, Actelis bolstered its liquidity position by raising nearly $5 million. As of June 30, 2024, shareholders’ equity stood at $1.06 million, and on a pro forma basis, including the fundraise, it was $3.0 million, meeting Nasdaq’s continued listing requirement of $2.5 million.

CEO Tuvia Barlev emphasized the company’s progress and strategic focus on growth and innovation, reflecting in substantial customer successes and key deliveries. As Actelis continues to build on its momentum, the company aims to scale its successes, expand its SaaS offerings through strategic partnerships, and maintain high margins while reducing operational costs.

The significant order from Washington D.C.’s Department of Transportation and deployments in cities like Bakersfield highlight the strength of Actelis’ technology and the trust major urban centers place in the company. Looking forward, Actelis is well-positioned to capitalize on the expanding IoT market, particularly in sectors like intelligent transportation and critical infrastructure.