Revenue Up 125% to $106.4m; Operating Margin Rises to 61.8%
Highlights
- Revenue of $106.4m, up 125% year-over-year, with gross margin improving to 66.7% from 65.2% in the previous quarter
- Operating margin of 61.8%, rising in every quarter since the start of the year, reflecting economies of scale
- Operating cash flow of $128.4m in the first nine months, 3.6 times the same period last year, alongside a significant build-up of component inventory
- Progress in establishing the European production line, as part of the expansion of the Company's global manufacturing infrastructure
RA'ANANA, Israel, Nov. 9, 2026 /PRNewswire/ -- NextVision Stabilized Systems Ltd. (TASE: NXSN), a technology growth company that develops, manufactures and markets stabilized day- and night-vision imaging solutions for ground and aerial platforms such as micro and mini UAVs and drones, with industry-leading weight-to-size and performance ratios, today announced its financial results for the third quarter and first nine months of 2026.
Chen Golan, Chairman of NextVision, commented: "NextVision continues to strengthen its position in the global market, with significant revenue growth and improved profitability. One of our most important growth engines is the expansion of activity with a growing customer base. Alongside our largest customers, we see additional customers increasing the scale of their activity with us and becoming more significant for the Company. This trend reflects confidence in our technology and the opportunities ahead of us for continued growth.
"We are already preparing for the activity levels of the coming years, expanding our production capacity, improving efficiency and continuing to invest in infrastructure, supported by the Company's strong cash flow. As part of this strategy, we are building a global manufacturing network, with our European production line establishing its operations and plans to expand production to the United States as well. Our presence in key markets will allow us to be closer to our customers, address local-manufacturing requirements and strengthen our ability to compete for additional business opportunities.
"Looking ahead, we are working to deepen NextVision's position as a technology partner of the world's leading platform manufacturers, and to expand the integration of our systems into additional platforms and missions. Alongside continued independent development and organic growth, targeted acquisitions of complementary technologies and capabilities are part of our strategy to broaden our solutions portfolio, strengthen our competitive advantage and build the Company's next growth engines. We see a market with significant potential, and we continue to invest in order to increase NextVision's place in it for years to come."
Financial Highlights for Q3 2026
Revenue in the third quarter grew 125% to $106.4 million, compared with $47.3 million in the same quarter last year. Revenue for the first nine months of the year totaled $261.9 million, an increase of 117%.
The Company grew in all geographic regions. Europe continues to be its largest market, with revenue of $164.6 million in the first nine months, an increase of 138%. Revenue from North America rose 80% to $57.1 million, alongside growth in Israel and in additional markets.
The Company has more than 300 customers worldwide, of which 185 were active during the first nine months of 2026. Revenue from customers beyond the three largest customers totaled approximately $105 million, of which approximately $52 million was in the third quarter alone.
Gross profit totaled $71.0 million, an increase of 118% compared with $32.5 million in the same quarter last year. Gross margin in the third quarter improved to 66.7%, compared with 65.2% in the second quarter of the year. Efficiencies in manufacturing processes and higher productivity per employee support higher levels of activity and the maintenance of high profitability, even against the backdrop of rising raw material and component costs.
Operating profit jumped 133% to $65.8 million, compared with $28.3 million in the same quarter last year. The operating margin improved in the third quarter to 61.8%, after 56.9% in the first quarter and 58.8% in the second quarter, and compared with 59.8% in the same quarter last year. While revenue more than doubled, operating expenses grew at a significantly more moderate rate and their share of revenue declined to 4.9%, compared with 8.9% in the same quarter last year. These figures illustrate the Company's ability to translate revenue growth into improved profitability.
Net profit grew 113% to $60.1 million in the third quarter, compared with $28.2 million in the same quarter last year. Net profit for the first nine months totaled $152 million, more than double the $72 million in the same period last year.
Cash flow from operating activities in the first nine months totaled $128.4 million, 3.6 times the $35.2 million in the same period last year, after investing approximately $38.9 million in an inventory increase. In the third quarter alone, operating cash flow reached $53.3 million, almost three times the $18.8 million in the same quarter last year, after an inventory increase of approximately $20.8 million. The cash flow reflects the Company's ability to generate cash while, at the same time, stocking up on components to support the expansion of production and shorter delivery times.
Order backlog as of the date of this release totaled $209.3 million, compared with $124 million at the same time last year, an increase of 69%, and compared with $265.2 million at the time of the second-quarter results. The decrease compared with the previous quarter was affected, among other things, by the increase in delivery volumes, alongside the timing of new orders that are expected to be received over the coming weeks. Streamlined work processes and training contribute to higher productivity per employee and increased output, enabling the Company to convert orders into revenue faster. This capability strengthens the Company's competitive advantage in responding quickly to customer needs and in aligning production with their growth.
Production Line in Europe: The Company is advancing the establishment of its production capability in Europe. The move is part of the Company's strategic plan to expand its global manufacturing infrastructure, and is intended to strengthen the Company's presence in the European market, address customers who prefer European manufacturing and broaden the business opportunities available to the Company in the region. The Company is in the process of establishing a European subsidiary to operate the production line.
Investors' Conference Call
Today at 1:30pm Israel time, 6:30am Eastern Time, NextVision will hold an investor webinar in Hebrew to review the Financial Statements and provide an update on the Company's ongoing activities, with the participation of the Company's management.
Following that, at 3:30pm Israel time, 8:30am Eastern Time, NextVision will hold an investor webinar in English, with the participation of the Company's management.
Participation in the webinar requires prior registration via the following links:
For the Hebrew Webinar:
https://us06web.zoom.us/webinar/register/WN_2skMv0jZTk6uE61IKBmSlQ
For the English Webinar:
https://us06web.zoom.us/webinar/register/WN_OYCj0N_tR7-xjNbXSJkUOA
The Company intends to publish a presentation shortly before the webinars, which will be presented during the event. Attendees will be able to submit questions in English or Hebrew, which will be translated and answered in English.
About NextVision Stabilized Systems Ltd.
NextVision is a leading technology company specializing in stabilized imaging systems for aerial and ground platforms, including micro and mini UAVs and drones. The company offers customers a comprehensive imaging solution encompassing a wide range of cameras, complementary accessories, and integrated capabilities for commercial, industrial, and security applications -- positioning NextVision as a true 'one-stop shop'.
NextVision has developed a patented image stabilization engine that enables the production of high-performance stabilized cameras with world-class size-to-weight ratios. This technology ensures stable, high-quality imagery even in demanding flight conditions. The company markets its products worldwide and continues to experience steady growth in its global customer base.
International Investor Relations
Ehud Helft
nextvision@ekgir.com
EK Global Investor Relations
(US) +1 212 378 8040
Condensed Statements of Financial Position
As of September
30 As of December 31,
2025
2026 2025
Unaudited Audited
USD thousands
Current assets
Cash 20,962 27,533 85,440
Short-term deposits 620,614 502,102 476,857
Trade receivables 44,726 14,052 12,087
Current tax receivable 1,932 2,256 4,746
Other accounts receivable 11,539 6,268 5,275
Inventory 92,446 49,304 53,588
792,219 601,515 637,993
Non-current assets
Property, plant and equipment 1,562 853 906
Right-of-use assets 4,549 2,962 2,770
Intangible assets 8,584 4,670 4,896
14,695 8,485 8,572
806,914 610,000 646,565
Current liabilities
Trade payables 25,032 9,375 8,679
Other accounts payable 38,509 14,593 18,067
63,541 23,968 26,746
Non-current liabilities
Lease liabilities 4,874 3,432 3,390
Employee benefit liabilities, net 151 114 151
Deferred taxes 1,022 487 588
6,047 4,033 4,129
Equity
Share capital and premium 460,326 446,120 446,328
Reserve for share-based payment 15,957 6,662 8,455
Retained earnings 261,043 129,217 160,907
Total equity 737,326 581,999 615,690
806,914 610,000 646,565
Condensed Statements of Comprehensive Income
For the nine For the three
months months For the year
ended September 30 ended September 30 ended
December 31
2026 2025 2026 2025 2025
Unaudited Audited
USD thousands (except per share data)
Revenues from sales 261,927 120,533 106,386 47,290 168,354
Cost of sales (88,203) (34,971) (35,405) (14,773) (50,798)
Gross profit 173,724 85,562 70,981 32,517 117,556
Research and development expenses (4,970) (3,914) (1,341) (1,638) (5,491)
Sales and marketing expenses (2,427) (1,505) (761) (628) (1,874)
General and administrative expenses (10,402) (6,645) (3,107) (1,963) (8,667)
(17,799) (12,064) (5,209) (4,229) (16,032)
Operating profit 155,925 73,498 65,772 28,288 101,524
Financing expenses (1,203) (229) (342) (77) (313)
Financing income 18,902 7,163 6,648 3,074 13,453
Profit before income tax 173,624 80,432 72,078 31,285 114,664
Income taxes (21,656) (8,468) (12,021) (3,117) (11,000)
Net profit 151,968 71,964 60,057 28,168 103,664
Other comprehensive income (net of
tax effects):
Amounts that will not be subsequently
reclassified to profit or loss:
---
Loss from remeasurement of defined benefit (10)
plans
Total other comprehensive loss (10)
Total comprehensive income 151,968 71,964 60,057 28,168 103,654
Net profit per share (in US dollars)
---
Basic EPS 1.651 0.883 0.650 0.341 1.235
Diluted EPS 1.601 0.850 0.633 0.328 1.106
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SOURCE NextVision
