Actelis Networks, Inc. (ASNS) AI Stock Analysis

• Market Cap: $4.75M
• Dividend Yield: N/A
• Average Volume (3M): 15.96M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.90
• Revenue Growth: -56.36%
• EPS Growth: 32.37%
• Country: US
• Employees: 38
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): -1.70
• Shares Outstanding: 1,747,786
• 10 Day Avg. Volume: 5,093,897
• 30 Day Avg. Volume: 15,964,196
• PEG Ratio: 0.23
• Price to Book (P/B): 23.10
• Price to Sales (P/S): 8.89
• P/FCF Ratio: -10.53
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 1.72
• Enterprise Value/Gross Profit: 5.24
• Enterprise Value/Ebitda: -0.78
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: $2.50 ▼(-8.09% Downside)

Actelis Networks faces significant financial challenges, with ongoing losses and high leverage impacting its financial performance score. Technical indicators point to bearish momentum, and valuation metrics are unattractive due to negative earnings. However, the recent cybersecurity order provides a positive outlook for future growth opportunities.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful market penetration and product adoption, which can drive long-term business expansion.

Strategic Partnerships

Partnerships with major entities like DDOT enhance market credibility and provide stable revenue streams, supporting long-term growth.

Product Innovation

Supplying advanced networking solutions to demanding environments like Japan's rail networks showcases product strength and innovation.

Negative Factors

High Leverage

High leverage can strain financial flexibility and increase risk, potentially impacting the company's ability to invest in growth.

Negative Cash Flow

Negative cash flow indicates operational challenges and reliance on external funding, which could hinder sustainable growth.

Profitability Issues

Ongoing profitability issues highlight financial instability, which could limit the company's ability to reinvest in its business.

Actelis Networks, Inc. Business Overview & Revenue Model

Company Description

Actelis Networks, Inc., a networking solutions company, designs, develops, manufactures, and markets networking solutions for Internet of Things and telecommunication companies in North America, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. It offers ethernet access devices, aggregation switches, broadband amplifiers, and repeaters, as well as element management systems software. The company also provides consulting, troubleshooting, remote support, training, product repairing, and software update services. It serves the intelligent traffic systems, education and industrial campus, airport, smart city, rail, military, energy, oil and gas, and water sectors. The company was founded in 1998 and is based in Fremont, California.

How the Company Makes Money

Actelis Networks generates revenue through the sale of its networking products and solutions, which include hardware, software, and support services. The primary revenue streams consist of direct sales to telecommunications companies and enterprise clients, as well as recurring revenue from maintenance and support contracts. Additionally, the company often engages in partnerships with other technology providers to enhance its product offerings and reach new markets, which can also contribute to its earnings. By leveraging its advanced technology and establishing key partnerships, Actelis is able to tap into various sectors such as broadband, smart city initiatives, and enterprise networking, thereby diversifying its revenue sources.

Actelis Networks, Inc. Financial Statement Overview

Summary

Actelis Networks shows revenue growth and improved gross profit margins, but faces significant profitability challenges, high leverage, and reliance on external funding. The financial health remains fragile.

Income Statement

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.37M	7.76M	5.61M	8.83M	8.54M	8.53M
Gross Profit	1.10M	4.27M	1.90M	4.11M	3.97M	4.98M
EBITDA	-7.40M	-3.73M	-5.49M	-10.13M	-4.52M	-1.20M
Net Income	-7.54M	-4.37M	-6.29M	-10.98M	-5.25M	-1.50M
Balance Sheet
Total Assets	6.93M	8.22M	11.22M	14.82M	4.68M	3.77M
Cash, Cash Equivalents and Short-Term Investments	1.45M	1.97M	817.00K	5.57M	693.00K	569.00K
Total Debt	771.00K	1.34M	5.39M	6.54M	11.14M	6.58M
Total Liabilities	3.97M	5.24M	10.84M	11.55M	18.70M	12.58M
Stockholders Equity	2.96M	2.98M	388.00K	3.27M	-14.01M	-8.81M
Cash Flow
Free Cash Flow	-7.41M	-6.55M	-6.59M	-7.77M	-2.78M	-364.00K
Operating Cash Flow	-7.41M	-6.55M	-6.58M	-7.77M	-2.73M	-343.00K
Investing Cash Flow	-4.00K	197.00K	3.82M	-4.03M	-54.00K	-21.00K
Financing Cash Flow	6.59M	3.09M	3.76M	15.29M	2.90M	356.00K

Actelis Networks, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 2.72 is below the 20-day moving average (MA) of 3.41, below the 50-day MA of 4.51, and below the 200-day MA of 6.03, indicating a bearish trend. The MACD of -0.50 indicates Negative momentum. The RSI at 37.52 is Neutral, neither overbought nor oversold. The STOCH value of 40.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ASNS.

Actelis Networks, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
OCC	54 Neutral	$71.41M	―	-5.41%	―	12.67%	80.62%
AIRG	51 Neutral	$49.16M	-7.04	-19.65%	―	-1.53%	55.08%
UTSI	49 Neutral	$23.39M	-3.73	-13.41%	―	-34.53%	-50.58%
CMTL	48 Neutral	$97.48M	-0.47	-26.69%	―	-7.56%	-47.16%
ASNS	44 Neutral	$4.75M	-0.32	-260.09%	―	-56.36%	32.37%
CMBM	41 Neutral	$91.51M	-0.92	―	―	―	―

Actelis Networks, Inc. Corporate Events

Actelis Networks Announces Reverse Stock Split

On November 14, 2025, Actelis Networks announced a one-for-ten reverse stock split of its common stock, effective before trading on November 18, 2025. This move aims to increase the stock’s per share and bid price to comply with Nasdaq’s listing requirements and attract institutional investors. The reverse split will reduce outstanding shares from approximately 17.5 million to 1.75 million without changing the ownership percentage of stockholders, except for rounding up fractional shares.

Actelis Networks Maintains Nasdaq Listing Compliance

On October 28, 2025, Actelis Networks, Inc. received a decision from Nasdaq confirming compliance with the stockholders’ equity requirement, allowing continued listing on The Nasdaq Capital Market. The company has until December 5, 2025, to meet the bid price requirement, for which it plans a reverse stock split pending shareholder approval. Actelis will be under a one-year Panel Monitor through October 28, 2026, to ensure continued compliance, with potential delisting if criteria are not met.

Actelis Networks Secures Funding Amid Nasdaq Compliance Efforts

On August 19, 2025, Actelis Networks, Inc. received a notice from Nasdaq regarding non-compliance with the $2.5 million stockholders’ equity requirement, risking delisting. The company recently presented a compliance plan to Nasdaq’s Hearing Panel, but the outcome is uncertain. On September 29, 2025, Actelis completed a private placement with White Lion Capital LLC, raising approximately $850,000 and securing an equity line of credit for up to $30 million. Actelis believes it now meets the equity requirement but awaits Nasdaq’s confirmation.

Actelis Networks Enters Stock Purchase Agreement with White Lion

On September 27, 2025, Actelis Networks, Inc. entered into a common stock purchase agreement with White Lion Capital LLC, allowing for the sale of up to $30 million in newly issued shares, subject to certain conditions. The agreement includes provisions for shareholder approval to exceed a 19.99% issuance cap, with penalties for non-compliance. Additionally, a private placement agreement was made with White Lion for shares and pre-funded warrants, raising approximately $850,000.

Actelis Networks Secures Major Cybersecurity Order in Europe

On October 1, 2025, Actelis Networks announced a significant order valued at approximately $0.3 million from a major telecommunications carrier in Southern Europe, part of a global telecommunications group. This order, which focuses on cybersecurity enhancements, involves upgrades to the carrier’s MetaAssist EMS software, embedded software security features, and comprehensive support services. The agreement expands on one of Actelis’ larger installations worldwide and underscores the trust placed in their technology by major telecommunications providers. The order is partly driven by new cybersecurity standards imposed across the carrier’s parent group, highlighting Actelis’ role in ensuring compliance and security for critical networks.

Actelis Networks Restructures, Eliminates SVP Sales Position

Actelis Networks, Inc. has announced the elimination of the Senior Vice President of Sales, Americas position as part of its organizational restructuring, effective September 17, 2025. The position was previously held by Bret Harrison, whose departure was not due to any disagreements with the company, indicating a strategic shift rather than operational discord.