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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)

Rating:37Underperform
Price Target:
$0.50
▼(-18.03%Downside)
Actelis Networks faces significant financial challenges, with ongoing losses and high leverage. The technical indicators point to bearish momentum, and the valuation reflects low investor confidence. While recent corporate developments offer potential growth, they are overshadowed by financial instability and Nasdaq compliance issues.

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

Actelis Networks, Inc. Business Overview & Revenue Model

Company DescriptionActelis Networks, Inc. (ASNS) is a provider of networking solutions, specializing in broadband over copper and fiber networks. The company operates in the telecommunications sector, offering products that enable high-speed internet access and intelligent networking for a variety of applications, including smart city infrastructure, transportation, and utilities. Actelis' core products include Ethernet access devices, aggregation switches, and network management software designed to enhance and extend broadband capabilities.
How the Company Makes MoneyActelis Networks, Inc. generates revenue primarily through the sale of its networking equipment and software solutions. Key revenue streams include the direct sale of Ethernet access devices and aggregation switches, which are used by service providers and enterprises to enhance broadband connectivity. The company also earns income from its network management software, which offers enhanced capabilities for monitoring and optimizing network performance. Additionally, Actelis may engage in strategic partnerships and collaborations with other telecommunications companies and infrastructure providers to expand its market reach and drive sales.

Actelis Networks, Inc. Earnings Call Summary

Earnings Call Date:May 13, 2025
(Q4-2024)
|
% Change Since: -23.75%|
Next Earnings Date:Aug 07, 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.
Q4-2024 Updates
Positive Updates
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.
Negative Updates
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. Financial Statement Overview

Summary
Actelis Networks is experiencing revenue growth and improved gross profit margins, but faces significant profitability challenges and high leverage. The company's reliance on external funding and operational inefficiencies pose risks to 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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue7.75M7.76M5.61M8.83M8.54M8.53M
Gross Profit4.30M4.27M1.90M4.11M3.97M4.98M
EBITDA-3.78M-3.73M-5.49M-10.13M-4.52M-1.20M
Net Income-4.25M-4.37M-6.29M-10.98M-5.25M-1.50M
Balance Sheet
Total Assets0.008.22M11.22M14.82M4.68M3.77M
Cash, Cash Equivalents and Short-Term Investments0.001.97M817.00K5.57M693.00K569.00K
Total Debt523.00K1.34M5.39M5.86M11.14M6.58M
Total Liabilities4.30M5.24M10.99M11.55M24.28M18.16M
Stockholders Equity2.58M2.98M229.00K3.27M-19.60M-14.40M
Cash Flow
Free Cash Flow-8.52M-6.55M-6.59M-7.77M-2.78M-364.00K
Operating Cash Flow-8.52M-6.55M-6.58M-7.77M-2.73M-343.00K
Investing Cash Flow199.00K197.00K3.82M-4.03M-54.00K-21.00K
Financing Cash Flow4.59M3.09M3.76M15.29M2.90M356.00K

Actelis Networks, Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.61
Price Trends
50DMA
0.69
Negative
100DMA
0.77
Negative
200DMA
1.05
Negative
Market Momentum
MACD
-0.03
Negative
RSI
44.33
Neutral
STOCH
40.65
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 0.61 is below the 20-day moving average (MA) of 0.63, below the 50-day MA of 0.69, and below the 200-day MA of 1.05, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 44.33 is Neutral, neither overbought nor oversold. The STOCH value of 40.65 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 (50)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
51
Neutral
$71.53M-51.84%-61.52%35.64%
50
Neutral
AU$1.51B2.03-28.25%3.29%16.21%-7.40%
47
Neutral
$31.02M-49.28%8.97%-68.08%
45
Neutral
$16.01M-327.53%-3.17%90.94%
41
Neutral
$11.30M-112.88%-34.89%-579.83%
41
Neutral
$33.66M86.76%9.71%-1.97%
37
Underperform
$5.48M-933.63%72.95%74.56%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ASNS
Actelis Networks, Inc.
0.61
-1.07
-63.69%
UAVS
AgEagle Aerial Systems
1.20
-20.80
-94.55%
CMBM
Cambium Networks
0.42
-1.80
-81.08%
SPRU
Spruce Power Holding
1.69
-1.55
-47.84%
KPLT
Katapult Holdings
8.20
-8.91
-52.07%
WKEY
WISeKey International Holding
6.27
4.12
191.63%

Actelis Networks, Inc. Corporate Events

Private Placements and Financing
Actelis Networks Raises $1M in Private Placement
Neutral
Jul 3, 2025

On June 30, 2025, Actelis Networks, Inc. entered into a securities purchase agreement with accredited investors to issue and sell shares of common stock and warrants in a private placement, raising approximately $1 million in gross proceeds. The offering closed on July 2, 2025, with H.C. Wainwright & Co. acting as the exclusive placement agent. The company plans to use the net proceeds as working capital for general corporate purposes. The issuance of the securities was exempt from registration under the Securities Act of 1933, and Actelis agreed to file registration statements for the resale of the unregistered securities. The agreement includes restrictions on further issuance of common stock or equivalents for a specified period and outlines shareholder approval requirements for the exercise of warrants.

The most recent analyst rating on (ASNS) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on Actelis Networks, Inc. stock, see the ASNS Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Actelis Networks Expands into Federal and Military Markets
Positive
Jun 16, 2025

On June 16, 2025, Actelis Networks, Inc. announced its strategic initiative to expand its presence in the federal and military markets by hiring Jason Chasse, an industry veteran with over 30 years of experience, as Director of Federal Sales. This move is part of Actelis’ efforts to capitalize on opportunities within the sector, leveraging its cyber-hardened, rapid deployment networking solutions that address critical modernization needs across military installations and federal agencies. The company’s solutions are already listed on the Department of Defense Information Network Approved Products List, enhancing its position in the market. Actelis’ technology allows for immediate fiber-grade connectivity over existing infrastructure, significantly reducing deployment times and costs, which is crucial as military branches and federal agencies face pressure to modernize their networks.

The most recent analyst rating on (ASNS) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on Actelis Networks, Inc. stock, see the ASNS Stock Forecast page.

Business Operations and Strategy
Actelis Networks Secures $102,000 Order for Transportation Systems
Positive
May 21, 2025

On May 21, 2025, Actelis Networks announced a $102,000 follow-on order from a major Mid-Atlantic US county to enhance its Advanced Transportation Management System operations. This order builds on a previous $260,000 project from July 2024, reinforcing Actelis’ position as a trusted provider of networking infrastructure for intelligent transportation systems. The order aims to support the county’s transportation systems with secure, high-performance connectivity for smart applications like automated traffic signal control and real-time intersection monitoring. Actelis’ solutions offer rapid deployment, cost savings, and military-grade security, contributing to safer and more efficient transportation systems. This development continues Actelis’ momentum in the intelligent transportation systems market, following deployments in various cities and international projects, highlighting its growing recognition as a leading provider of secure networking solutions for critical infrastructure worldwide.

The most recent analyst rating on (ASNS) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on Actelis Networks, Inc. stock, see the ASNS Stock Forecast page.

Delistings and Listing ChangesStock SplitRegulatory Filings and Compliance
Actelis Networks Faces Nasdaq Non-Compliance Notice
Negative
May 13, 2025

On May 12, 2025, Actelis Networks, Inc. received a notification from Nasdaq indicating non-compliance with the minimum bid price requirement for continued listing on the Nasdaq Capital Market. The company has until November 10, 2025, to regain compliance by ensuring its stock price closes at or above $1.00 for at least 10 consecutive business days. The notification does not immediately affect the trading of the company’s stock, and Actelis Networks is considering options such as a reverse stock split to meet the requirements.

The most recent analyst rating on (ASNS) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on Actelis Networks, Inc. stock, see the ASNS Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 02, 2025