Elsight Limited capped 2025 with record quarterly revenue and a substantial US$21.2 million contract, signalling robust growth and expanding global defence engagements heading into 2026.
- Record Q4 revenue of ~US$9.3 million, 11-fold increase year-on-year
- Secured US$21.2 million contract for early 2026 deliveries
- Delivered Aura product, expanding market beyond uncrewed platforms
- Advanced Halo product with U.S. Defense Innovation Unit Phase 3 selection
- Strong cash reserves of US$59 million support growth investments
Record Revenue and Contract Wins
Elsight Limited (ASX, ELS) has delivered a remarkable finish to 2025, reporting its highest-ever quarterly revenue of approximately US$9.3 million (A$14.4 million). This achievement marks the fourth consecutive quarter of record revenue growth, culminating in a total annual revenue of around US$22.8 million (A$35 million), an extraordinary 11-fold increase compared to the previous year. The company’s order backlog has expanded to roughly US$22 million (A$32.1 million), providing strong visibility for revenue growth in 2026.
Expanding Product Portfolio and Market Reach
During the quarter, Elsight transitioned its Aura product from development to production, delivering the first units to a leading defence prime contractor. Aura broadens Elsight’s addressable market beyond its traditional focus on uncrewed platforms to include soldier-level communications, signalling diversification in its product offerings. Meanwhile, the flagship Halo product continues to gain traction, having been successfully demonstrated to multiple U.S. Department of Defense units and selected by the U.S. Defense Innovation Unit (DIU) for Phase 3 of Project G.I. (DRM2). This phase includes DIU funding to support final fielding, testing, and regulatory approvals ahead of expected production procurement in the first half of 2026.
Strategic Global Expansion and Commercial Momentum
Elsight has bolstered its global footprint with five senior sales and business development hires across the United States, United Kingdom, Germany, and the Middle East. These strategic appointments aim to deepen engagement with defence, government, and commercial customers, accelerating pipeline conversion. Notably, the company secured a US$460,000 commercial order from a U.S. public safety customer, reflecting growing commercial adoption alongside regulatory progress, including FAA Part 108 BVLOS compliance and adherence to new NDAA requirements.
Financial Strength and Future Outlook
Elsight ended the quarter with a robust cash position of approximately US$59 million (A$86 million), underpinning its capacity to invest aggressively in sales, marketing, and product development. Recurring revenue streams from software licenses, cloud services, and connectivity subscriptions surged 253% year-on-year to US$2.6 million in 2025, now representing 12% of total revenue. The company also revealed plans to launch multiple new products in 2026, alongside a stealth-mode business unit targeting a global market opportunity exceeding US$20 billion.
With a strong order book, expanding product portfolio, and strategic investments in place, Elsight appears poised for sustained multi-year growth. The upcoming Q4 webinar presentation scheduled for early February will provide further insights into the company’s evolving strategy and market positioning.
Bottom Line?
Elsight’s record-breaking quarter and strategic contract wins set the stage for a pivotal 2026, but execution on new product launches and regulatory milestones will be key to sustaining momentum.
Questions in the middle?
- How will Elsight’s new Aura product impact revenue diversification and margins?
- What are the timelines and risks associated with transitioning Halo into full production procurement?
- How significant will the stealth-mode business unit be in driving future growth?