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Actelis Networks, Inc. (ASNS)
NASDAQ:ASNS
US Market

Actelis Networks, Inc. (ASNS) AI Stock Analysis

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Actelis Networks, Inc.

(NASDAQ:ASNS)

45Neutral
Actelis Networks' overall score is driven by mixed financial performance with growth in revenue and gross margin, but persistent profitability challenges. The technical analysis indicates bearish momentum, while valuation highlights potential overvaluation. The earnings call and recent corporate events provide optimism for future growth, particularly in the defense sector, but concerns about cash position and operational efficiency remain.

Actelis Networks, Inc. (ASNS) vs. S&P 500 (SPY)

Actelis Networks, Inc. Business Overview & Revenue Model

Company DescriptionActelis Networks, Inc. (ASNS) is a leading provider of networking solutions, specializing in high-performance broadband access and transport over copper and fiber infrastructure. The company operates within the telecommunications sector, offering innovative products and services that enhance network capacity and efficiency for service providers, enterprises, and government agencies. Actelis Networks is known for its patented technology that enables high-speed internet and data transmission across existing copper lines, providing cost-effective solutions for expanding network reach and improving connectivity.
How the Company Makes MoneyActelis Networks, Inc. generates revenue primarily through the sale of its networking solutions, which include broadband amplifiers, Ethernet access devices, and aggregation switches. The company's key revenue streams involve direct sales to telecommunications carriers, internet service providers, and other enterprises seeking to upgrade or expand their network capabilities. Additionally, Actelis partners with system integrators and resellers to extend its market reach. The firm's revenue is further supported by offering maintenance and support services, which provide ongoing technical assistance and software updates to customers, ensuring network performance and reliability.

Actelis Networks, Inc. Financial Statement Overview

Summary
Actelis Networks has shown revenue growth and gross margin improvements, but continues to face profitability challenges and high financial leverage. The company relies on external funding and needs to address operational inefficiencies to improve financial stability.
Income Statement
40
Negative
Actelis Networks has shown a mixed performance in recent years. The revenue in 2024 increased by 38.5% compared to 2023, which is a positive indicator. However, the company has struggled with profitability, consistently reporting negative net income and EBIT. The gross profit margin improved significantly from 33.9% in 2023 to 55% in 2024, indicating better cost management. Despite these improvements, the persistent losses and negative EBITDA margins indicate financial instability.
Balance Sheet
30
Negative
The balance sheet reveals high leverage, with the debt-to-equity ratio being unfavorable due to substantial liabilities compared to equity. The equity ratio improved in 2024, although it remains low, indicating potential financial risk. Positive equity in 2024 compared to previous negative figures is a step in the right direction, but the overall financial health remains fragile.
Cash Flow
35
Negative
Cash flow analysis shows continued negative free cash flow, although the operating cash flow improved slightly in 2024. The high operating cash outflows compared to net income reflect ongoing operational challenges. The improvement in financing cash flow suggests reliance on external funding to support operations, which could pose risks if not managed properly.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
7.76M5.61M8.83M8.54M8.53M
Gross Profit
4.27M1.90M4.11M3.97M4.98M
EBIT
-3.76M-7.36M-6.10M-1.86M-131.00K
EBITDA
-3.73M-5.49M-10.13M-4.52M-1.20M
Net Income Common Stockholders
-4.37M-6.29M-10.98M-5.25M-1.50M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.97M817.00K5.57M693.00K569.00K
Total Assets
8.22M11.22M14.82M4.68M3.77M
Total Debt
571.00K5.39M5.86M11.14M6.58M
Net Debt
571.00K4.77M1.92M10.44M6.01M
Total Liabilities
5.24M10.99M11.55M24.28M18.16M
Stockholders Equity
2.76M229.00K3.27M-19.60M-14.40M
Cash FlowFree Cash Flow
-6.55M-6.59M-7.77M-2.78M-364.00K
Operating Cash Flow
-6.55M-6.58M-7.77M-2.73M-343.00K
Investing Cash Flow
197.00K3.82M-4.03M-54.00K-21.00K
Financing Cash Flow
3.09M3.76M15.29M2.90M356.00K

Actelis Networks, Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.68
Price Trends
50DMA
0.92
Negative
100DMA
1.10
Negative
200DMA
1.29
Negative
Market Momentum
MACD
-0.09
Negative
RSI
36.75
Neutral
STOCH
70.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASNS, the sentiment is Negative. The current price of 0.68 is below the 20-day moving average (MA) of 0.78, below the 50-day MA of 0.92, and below the 200-day MA of 1.29, indicating a bearish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 36.75 is Neutral, neither overbought nor oversold. The STOCH value of 70.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ASNS.

Actelis Networks, Inc. Risk Analysis

Actelis Networks, Inc. disclosed 54 risk factors in its most recent earnings report. Actelis Networks, Inc. reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Actelis Networks, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
58
Neutral
$11.04B9.83-6.56%3.16%7.59%-10.43%
51
Neutral
$43.56M-58.52%-26.47%-5.60%
45
Neutral
$5.76M-292.97%38.42%70.13%
42
Neutral
$36.52M-39.70%2.37%-10.00%
42
Neutral
$35.65M86.76%11.25%34.57%
41
Neutral
$11.21M-112.88%-34.89%-579.83%
36
Underperform
$14.59M-1414.23%-2.54%80.26%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ASNS
Actelis Networks, Inc.
0.63
-0.04
-5.97%
UAVS
AgEagle Aerial Systems
1.08
-30.82
-96.61%
CMBM
Cambium Networks
0.37
-3.36
-90.08%
SPRU
Spruce Power Holding
2.02
-1.28
-38.79%
KPLT
Katapult Holdings
7.60
-1.15
-13.14%
WKEY
WISeKey International Holding
3.72
1.58
73.83%

Actelis Networks, Inc. Earnings Call Summary

Earnings Call Date: Mar 24, 2025 | % Change Since: -37.04% | Next Earnings Date: Jun 18, 2025
Earnings Call Sentiment Positive
Actelis Networks reported strong financial improvements in 2024 with significant revenue and margin growth, reduction in losses, and success in key markets, particularly in federal/military sectors. However, challenges such as sequential revenue decline in Q4 and cash position concerns persist. The company is optimistic about its growth prospects, focusing on strategic partnerships and operational efficiency improvements.
Highlights
Substantial Revenue Growth
Actelis Networks achieved a 38% year-over-year revenue growth, reaching $7.8 million in 2024, driven by a 134% increase in North American revenues.
Impressive Gross Margin Improvement
The company's gross margin improved dramatically by 125%, reaching 55% for the full year, up from 34% in 2023.
Reduction in Loss Per Share
Actelis Networks reduced its loss per share by 67%, signaling significant progress towards profitability.
Federal/Military Sector Growth
The company achieved 150% year-over-year growth in new orders in the federal/military sector, with increasing adoption across military bases and federal agencies.
Expansion in Key Markets
Actelis Networks tripled its software and services new orders, and its GigaLine 900 solution gained significant traction in North America and globally.
Lowlights
Sequential Revenue Decline in Q4
There was a sequential decline in revenue from Q3 to Q4 of 2024, attributed to the lumpiness in order timing and unpredictability of large orders.
Cash Position and Debt Concerns
Cash, cash equivalents, and restricted cash decreased to $2.3 million by year-end, with the company considering potential equity raises and debt facilities to support growth.
Company Guidance
During Actelis Networks' 2024 Annual Results Conference Call, CEO Tuvia Barlev highlighted significant financial improvements, including a 38% revenue growth, 125% gross margin improvement, and a 67% reduction in loss per share. The company achieved 150% year-over-year growth in new orders in the federal/military sector and tripled new software and services orders. Actelis' strategic initiatives for 2025 include the introduction of their MetaShield SaaS offering, strengthening go-to-market execution, and focusing on operational efficiency. Actelis also emphasized its nearly debt-free status and a 13% reduction in operating expenses, with plans to moderate debt to fund growth initiatives. The company plans to leverage its GigaLine product families and MetaShield solution to drive continued growth across federal, IoT, and MDU markets by integrating cybersecurity with network management.

Actelis Networks, Inc. Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
Actelis Networks Secures Major Military Base Contracts
Positive
Mar 28, 2025

On March 28, 2025, Actelis Networks announced it received significant new orders to supply its GigaLine 800 networking solution to modernize U.S. military bases. This initiative aims to enhance cyber-hardened connectivity across Army, Navy, and Air Force installations, supporting growing bandwidth needs with rapid deployment and cost-effective solutions. The orders, valued at $140,000, will upgrade outdated infrastructure, providing secure, high-speed internet access and improved communications for military operations. Actelis’ GL800 solution offers immediate fiber-grade connectivity using existing infrastructure, eliminating the need for extensive new construction, and is certified by the Department of Defense for security standards. This development reinforces Actelis’ growing presence in the defense sector, where its solutions are increasingly used for various applications, including barracks connectivity and IoT device integration.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.