Actelis Networks Reports 60% Revenue Decline and Increased Losses in Q2 2025

Actelis Networks, Inc. reported its financial results for the second quarter of 2025, revealing a significant decline in revenue and an increase in net losses compared to the same period in the previous year. For the six months ended June 30, 2025, the company generated revenues of $1.662 million, a decrease of 60% from $4.157 million in the same period of 2024. The net comprehensive loss for the period was $3.761 million, compared to a loss of $2.064 million in the prior year, reflecting a worsening financial position.

The company's operating expenses also increased, totaling $4.141 million for the first half of 2025, up from $3.968 million in the same period of 2024. This rise was driven by higher research and development costs, which reached $1.356 million, and increased sales and marketing expenses of $1.366 million. The gross profit for the first half of 2025 was $556,000, down from $2.163 million in the previous year, indicating challenges in maintaining profitability amid declining revenues.

In terms of operational developments, Actelis Networks reported a notable increase in its common stock, with shares outstanding rising to 9.540 million as of June 30, 2025, compared to 7.623 million at the end of 2024. The company’s total assets decreased to $5.982 million from $8.225 million at the end of the previous fiscal year, primarily due to a reduction in cash and cash equivalents, which fell to $393,000 from $1.967 million. The company’s total liabilities also decreased slightly to $4.730 million from $5.240 million, indicating a modest improvement in its debt position.

Actelis Networks has indicated that the decline in revenue and increased losses are attributed to various factors, including market conditions and the competitive landscape. The company is actively seeking to innovate and protect its intellectual property while navigating the complexities of regulatory compliance. Looking ahead, Actelis Networks has expressed a need for additional capital to fund its operations and is focused on strategic initiatives to enhance its market position. However, the company acknowledges the uncertainties surrounding its future performance, particularly in light of geopolitical factors affecting its operations in Israel.