Elsight Ltd. (AU:ELS)
ASX:ELS
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Elsight Ltd.
(Sydney:ELS)
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Rating:73Outperform
Price Target:
AU$9.50
â–²(33.05% Upside)
Action:Reiterated
Date:05/30/26
The score is driven primarily by the strong 2025 financial rebound (profitability, cash generation, and low leverage), supported by an upward technical trend. These positives are meaningfully tempered by a very high P/E valuation and the need to see whether the 2025 step-change is sustainable given prior years of losses and cash burn.
Positive Factors
Profitability & margin recovery
A dramatic 2025 step-change to high gross and operating margins indicates the business reached scalable unit economics. Sustained margins would support reinvestment in product, improve cash conversion, and underpin durable operating profitability beyond one-time growth events.
Negative Factors
Historical profitability volatility
Multiple years of losses and negative cash flow prior to 2025 show earnings have been cyclical and volatile. The 2025 inflection may reflect discrete contracts or timing; history raises the risk that profits and cash flow could reverse under weaker demand or lost customers.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability & margin recovery
A dramatic 2025 step-change to high gross and operating margins indicates the business reached scalable unit economics. Sustained margins would support reinvestment in product, improve cash conversion, and underpin durable operating profitability beyond one-time growth events.
Read all positive factors
Elsight Ltd. (ELS) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$1.73B
Dividend YieldN/A
Average Volume (3M)899.53K
Price to Earnings (P/E)136.9
Beta (1Y)1.65
Revenue Growth1038.95%
EPS GrowthN/A
CountryAU
Employees18
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.04
Shares Outstanding221,800,340
10 Day Avg. Volume1,389,735
30 Day Avg. Volume899,531
Financial Highlights & Ratios
PEG Ratio-0.21
Price to Book (P/B)7.96
Price to Sales (P/S)17.20
P/FCF Ratio19.91
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$9.50Price Target Upside33.05% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.1
Revenue Forecast (FY)AU$78.36M
Elsight Ltd. Business Overview & Revenue Model
Company Description
Elsight Limited specializes in developing and delivering advanced connectivity technology solutions. Its core offerings include Halo, a proprietary communication platform, and a Beyond Visual Line of Sight (BVLOS) solution designed for autonomous ...
How the Company Makes Money
Elsight primarily makes money by selling its multi-link connectivity solution (Halo), which combines edge hardware with software capabilities for bonding and managing multiple cellular connections. Revenue is generated from product sales (the Halo...
Elsight Ltd. Earnings Call Summary
Earnings Call Date:Feb 20, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 20, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive operational inflection: exceptional 2025 revenue growth (11x YoY), profitability, a robust cash balance ($59M), a large confirmed order book ($22M backlog, 96% of prior-year revenue), meaningful design-win breadth and demonstrable pipeline-to-revenue conversion. Management articulated a clear go-to-market and product expansion plan (connectivity → mission stack) and highlighted scalable manufacturing and improving software margins (82% → 90% on software). Key near-term risks include a still-small recurring revenue base (ARR $2.6M), pipeline adjustments, supply-chain/component-cost pressures, and execution dependency on defense program outcomes (e.g., DIU Phase 3) and SAM expansion. Overall, the positives on revenue, cash, profitability, and conversion discipline materially outweigh the noted risks, which are largely execution and timing related rather than structural weaknesses.Positive Updates
Record Revenue Growth and Profitability
Full-year 2025 revenue of approximately $23 million, representing an 11x year-over-year increase (≈1000% YoY). Company reported it reached profitability in 2025.
Negative Updates
Recurring Revenue Still Small Relative to Total Revenue
ARR for 2025 was $2.6 million (~11% of 2025 revenue), indicating the recurring/saas portion is still an early-stage contributor and revenue visibility will depend on conversion of existing hardware-led deployments to software/service upsells.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Revenue Growth and Profitability
Full-year 2025 revenue of approximately $23 million, representing an 11x year-over-year increase (≈1000% YoY). Company reported it reached profitability in 2025.
Read all positive updates
Company Guidance
The company’s guidance is execution-focused: having hit roughly $23M revenue in FY2025 (an 11x increase vs. 2024) and achieved profitability, Elsight starts 2026 with $22M of confirmed orders (≈96% of FY‑25 revenue) and 40% upfront cash already received, ending FY‑25 with $59M cash; management expects material ARR growth (2025 recurring services were $2.6M) and higher margins as software mix increases (software margin rose from ~82% to ~90%, overall gross margin cited at ~77% and expected to expand). Pipeline discipline continues—current cumulative pipeline $137M (down from $157M after converting ~$10M to revenue) with 92 design‑win customers in 2025 (>110 total), 500,000 flight/drive hours of data, and an ambition to cover tens of thousands of drones by end‑2026. Key program timing: DIU Project G.I. Phase 3 is funded and due to conclude end‑March with potential procurement revenue flowing roughly a quarter later (late Q2/into Q3); SAM is shown expanding from a $250M core today toward multi‑billion figures ($5B by 2026, $10B by 2028). Operationally, manufacturing is contract‑manufactured (scales ahead of demand) with a US production batch planned in H1 to avoid tariff exposure.Elsight Ltd. Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
82
Very Positive
Cash Flow
88
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 23.59M | 2.03M | 1.54M | 1.19M | 574.01K |
| Gross Profit | 16.09M | 1.17M | 807.52K | -564.98K | -935.29K |
| EBITDA | 6.17M | -3.19M | -2.60M | -4.40M | -5.92M |
| Net Income | 7.75M | -3.87M | -3.68M | -6.21M | -6.04M |
Balance Sheet | |||||
| Total Assets | 64.17M | 2.26M | 4.44M | 10.33M | 3.82M |
| Cash, Cash Equivalents and Short-Term Investments | 59.08M | 885.67K | 2.70M | 5.19M | 2.03M |
| Total Debt | 206.40K | 180.10K | 5.32M | 4.25M | 339.54K |
| Total Liabilities | 13.17M | 1.11M | 6.10M | 7.60M | 992.97K |
| Stockholders Equity | 51.00M | 1.15M | -1.66M | 2.73M | 2.82M |
Cash Flow | |||||
| Free Cash Flow | 20.39M | -1.78M | -2.24M | -5.30M | -5.76M |
| Operating Cash Flow | 20.44M | -1.77M | -2.19M | -5.30M | -5.72M |
| Investing Cash Flow | -226.88K | -16.89K | -44.08K | -3.53K | 106.03K |
| Financing Cash Flow | 38.34M | -37.49K | -119.42K | 6.96M | -252.07K |
Elsight Ltd. Technical Analysis
Positive
7.14
Price Trends
6.88
Positive
5.90
Positive
4.04
Positive
Market Momentum
0.42
Negative
57.69
Neutral
57.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ELS, the sentiment is Positive. The current price of 7.14 is below the 20-day moving average (MA) of 7.25, above the 50-day MA of 6.88, and above the 200-day MA of 4.04, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 57.69 is Neutral, neither overbought nor oversold. The STOCH value of 57.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:ELS.
Elsight Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | AU$1.73B | 136.90 | 28.89% | ― | 1038.95% | ― | |
70 Outperform | AU$382.40M | 35.65 | 17.25% | 1.10% | 47.02% | 103.62% | |
68 Neutral | AU$446.22M | 17.60 | 10.65% | ― | -0.38% | -18.37% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | AU$1.92B | -38.70 | -57.61% | ― | 508.63% | -6.35% | |
50 Neutral | AU$4.58M | 4.07 | 26.81% | ― | -17.34% | ― | |
45 Neutral | AU$104.86M | -14.94 | -105.39% | ― | -26.79% | -25.29% |
* Technology Sector Average
AU:ELS
Elsight Ltd.
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Elsight Ltd. Corporate Events
Elsight lodges compliant notice for new share issue
Jun 3, 2026
Elsight Ltd. has issued 140,125 ordinary fully paid shares on 27 May 2026 and notified the market that this capital issuance was completed without a disclosure document under the relevant fundraising provisions of the Corporations Act. The company...
Elsight Flags First Strike on Pay Report at 2026 AGM
Jun 1, 2026
Elsight Ltd. has reported the voting outcomes of its 2026 Annual General Meeting held on 29 May, detailing proxy and poll results for each resolution as required under Australian corporate and listing rules. The company disclosed that the vote on ...
Elsight marks breakout year with profit surge and defence contracts
May 29, 2026
Elsight has emerged from FY25 as a globally recognised, profitable defence and commercial connectivity provider after years of strategic positioning in secure communications for uncrewed systems. The company’s Halo platform is increasingly v...
Elsight Wins US$2m Follow-On Public Safety Order as U.S. Drone Rules Evolve
May 28, 2026
Elsight has secured a follow-on purchase order worth about US$2 million from a U.S.-based commercial customer in the public safety sector, more than quadrupling an initial US$460,000 order placed earlier in 2026 and signalling successful operation...
State Street Entities Cease to Be Substantial Holders in Elsight Ltd.
May 28, 2026
Elsight Ltd. has disclosed that State Street Bank and Trust Company and its affiliate State Street Global Advisors Australia have ceased to be substantial shareholders in the company as of May 26, 2026. The notice, filed under Australian Corporati...
Elsight Sets 2026 AGM in Perth with Livestream Access, Pre-Meeting Online Voting
May 25, 2026
Elsight Limited has scheduled its 2026 Annual General Meeting for 29 May in Perth, with the session to be livestreamed for shareholders who pre-register online. Investors joining remotely will be able to ask questions but must submit their voting ...
State Street Group Ceases to Be Substantial Holder in Elsight Limited
May 22, 2026
State Street Global Advisors, Australia, and related State Street entities have notified Elsight Limited that they have ceased to be substantial shareholders in the company as of 20 May 2026. The change reflects a series of transfers and collatera...
State Street exits substantial holding in Elsight Ltd.
May 11, 2026
State Street Corporation, through subsidiaries State Street Bank and Trust Company and State Street Global Advisors, Australia, Limited, has lodged a notice that it has ceased to be a substantial shareholder in Elsight Ltd. The change, effective 7...
State Street Group Ceases to Be Substantial Holder in Elsight
May 4, 2026
State Street Corporation and certain subsidiaries, including State Street Global Advisors Australia and State Street Bank and Trust Company, have lodged a notice stating they have ceased to be a substantial holder in Elsight Ltd. The change reflec...
Elsight to Outline Record Quarter and New Growth Initiatives in Q1 2026 Webinar
Apr 29, 2026
Elsight Ltd., an ASX-listed provider of connectivity solutions for drones and other unmanned systems, has built its Halo platform around multi-link bonding of cellular, satellite and RF communications to ensure near-continuous, cyber-secure links ...
Elsight Sets 2026 AGM to Vote on Pay, Board Seat and New Incentive Plan
Apr 28, 2026
Elsight Limited has scheduled its 2026 Annual General Meeting for 29 May in Perth, where shareholders will receive the 2025 financial statements and vote on key governance items. The agenda includes an advisory vote on the remuneration report, the...
Elsight’s Halo Wins Fast-Track Access to Surging U.S. Defence Drone Market
Apr 28, 2026
Elsight has secured inclusion of its Halo connectivity platform on the U.S. Department of War’s Defense Contract Management Agency Blue List, a vetted directory of National Defense Authorization Act-compliant unmanned systems and components....
State Street Ceases to Be Substantial Holder in Elsight
Apr 24, 2026
State Street Corporation, through subsidiaries State Street Global Advisors Australia and State Street Bank and Trust Company, has lodged a notice that it has ceased to be a substantial shareholder in Elsight Ltd., effective 22 April 2026. The cha...
State Street Ceases to Be Substantial Holder in Elsight Ltd.
Apr 14, 2026
State Street Corporation, through subsidiaries including State Street Bank and Trust Company and State Street Global Advisors Australia, has lodged a notice that it has ceased to be a substantial holder in Elsight Ltd. The change in status, record...
Elsight Issues 11.3 Million Unquoted Options Under Employee Incentive Scheme
Apr 10, 2026
Elsight Limited has notified the market of the issue of several tranches of unquoted options under an employee incentive scheme, all of which are not intended to be quoted on the ASX. The newly issued options, totaling 11,255,500 securities with v...
Elsight issues 37,500 new shares under disclosure exemption
Apr 10, 2026
Elsight Limited has issued 37,500 new ordinary fully paid shares on 10 April 2026, using a disclosure exemption under the Corporations Act to place the securities without a full prospectus. The company confirmed it is up to date with its financial...
Elsight Seeks ASX Quotation for Additional Ordinary Shares
Apr 10, 2026
Elsight Ltd. has applied for quotation on the ASX of 37,500 ordinary fully paid shares, with an issue date of 10 April 2026, under its existing ticker ELS. The new share quotation, arising from the exercise or conversion of existing options or oth...
Elsight Plans New Issue of Long-Dated Options
Apr 10, 2026
Elsight Limited has notified the ASX of a proposed issue of 1,280,000 options in a new class of securities, exercisable at $5.65 and expiring on 2 April 2033. The options, to be issued on 4 June 2026 as part of a placement or other type of issue, ...
Elsight Names New Company Secretary in Governance Transition
Mar 26, 2026
Elsight Limited has appointed Sandra McIntosh of Acclime Corporate Services Australia as its new company secretary, effective 27 March 2026, following the resignation of Mark Licciardo from the same role. The board acknowledged Licciardo’s c...
Maybank Securities Cuts Stake, Ceases to Be Substantial Holder in Elsight
Mar 25, 2026
Elsight Ltd. has disclosed that Maybank Securities Pte. Ltd. has ceased to be a substantial shareholder of the company following an on‑market sale of 730,803 ordinary shares. The transaction, valued at approximately $4.39 million, reduces Ma...
State Street Entities Exit Substantial Holder Position in Elsight
Mar 25, 2026
Elsight Ltd. has disclosed that State Street Bank and Trust Company and related State Street entities have ceased to be substantial holders in the company as of 23 March 2026. The notice outlines numerous adjustments in voting securities, largely ...
UBS Group AG exits substantial shareholder position in Elsight Limited
Mar 24, 2026
UBS Group AG and its related bodies corporate have lodged a notice stating they ceased to be a substantial shareholder in Elsight Limited as of 20 March 2026. The change in UBS’s relevant interest in Elsight’s voting securities, detail...
Elsight Issues 301,000 New Shares in Routine Capital Management Move
Mar 17, 2026
Elsight Ltd. has issued 301,000 new ordinary fully paid shares on 18 March 2026 and has notified the market that this capital issuance was conducted without a disclosure document under the Corporations Act. The company confirmed it remains complia...
Elsight seeks ASX quotation for 201,000 new ordinary shares
Mar 17, 2026
Elsight Ltd. has applied for quotation on the ASX of 201,000 new ordinary fully paid shares, to be issued on March 18, 2026. The modest increase in quoted securities reflects the conversion or exercise of existing options or other convertible inst...
Elsight seeks ASX quotation for 100,000 new ordinary shares
Mar 17, 2026
Elsight Limited has applied for the quotation of 100,000 new ordinary fully paid shares on the Australian Securities Exchange, with the securities dated March 18, 2026. The additional shares arise from the exercise or conversion of existing option...
Elsight Issues 345,000 New Shares in Routine Capital Management Move
Mar 16, 2026
Elsight Limited has issued 345,000 new ordinary fully paid shares on 16 March 2026, notifying the market that the issuance was conducted without a disclosure document under the relevant fundraising provisions of the Corporations Act. The company c...
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.