Actelis Networks Reports 38% Revenue Growth to $7.76 Million for Fiscal Year 2024

Actelis Networks, Inc. reported a significant increase in revenue for the fiscal year ending December 31, 2024, achieving $7.76 million, up from $5.61 million in 2023. This 38% growth was primarily driven by a 134% increase in sales from the North American market, although revenues from Europe, the Middle East, and Africa saw declines of 42% and 61%, respectively. The company's gross profit also improved, rising to $4.27 million from $1.90 million the previous year, reflecting a more favorable regional revenue mix and effective cost management strategies.

Despite the revenue growth, Actelis continues to face challenges, including a net loss of $4.37 million for 2024, although this was an improvement from the $6.29 million loss reported in 2023. The company has accumulated a deficit of $44 million as of the end of 2024. Actelis has funded its operations through a combination of equity and debt financing, with cash reserves totaling $2.3 million at year-end. The company has indicated that it may need to raise additional capital to support its operations and growth initiatives, which could dilute existing shareholders' equity.

Strategically, Actelis has focused on expanding its product offerings and market reach, particularly in the Internet of Things (IoT) sector, federal, and Department of Defense (DoD) markets. In 2024, the company launched its MetaShield cyber-aware networking product, which integrates AI-based cybersecurity features into its networking solutions. Additionally, Actelis signed a strategic partnership with a cybersecurity provider to enhance its offerings further. The company has also been proactive in managing its operational costs, resulting in reduced expenses across research and development, sales and marketing, and general administration.

Operationally, Actelis has maintained a customer base that includes over 100 telecommunications service providers globally, with a significant portion of its revenue derived from a limited number of customers. For the years ended December 31, 2024, and 2023, the top ten customers accounted for approximately 74% and 66% of total revenues, respectively. The company has also been actively engaged in various financing activities, including a recent at-the-market equity program that raised approximately $3.4 million.

Looking ahead, Actelis Networks aims to leverage its technological advancements and market position to capture a larger share of the growing IoT connectivity market, which is projected to reach $1.8 trillion by 2028. However, the company acknowledges the uncertainties surrounding its ability to generate sufficient cash flow and maintain compliance with Nasdaq listing requirements, which could impact its future operations and growth potential.