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Elsight Ltd. (AU:ELS)
ASX:ELS
Australian Market

Elsight Ltd. (ELS) AI Stock Analysis

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AU:ELS

Elsight Ltd.

(Sydney:ELS)

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Neutral 45 (OpenAI - 5.2)
Rating:45Neutral
Price Target:
AU$4.00
▲(1.52% Upside)
The score is primarily held back by weak financial performance: despite strong revenue growth and good gross margin, profitability and cash flow remain significantly negative. Technicals are supportive of an ongoing uptrend, but extremely overbought momentum increases pullback risk. Valuation is constrained by losses (negative P/E) and lack of a stated dividend yield.
Positive Factors
Revenue Growth
31.7% organic revenue growth year-over-year indicates clear adoption of core Halo products in target markets. Durable top-line expansion supports scale economics, enables investment in recurring services and R&D, and materially improves the company’s pathway to sustainable margins over 2-6 months.
Robust Gross Margin
A 57.5% gross margin demonstrates strong unit economics and pricing power for hardware and software bundles. High gross margins provide structural room to absorb SG&A and R&D spend, increasing the likelihood of converting revenue growth into durable operating profitability as the business scales.
Low Leverage & Equity Recovery
Low debt-to-equity (0.16) and a return to positive shareholders’ equity reduce solvency risk and preserve financial flexibility. This stronger capital structure supports funding of contracts, product development, or selective M&A without immediate liquidity strain, aiding multi-month operational resilience.
Negative Factors
Deep Net Losses
A net margin of -190.9% signals outsized losses relative to revenue and persistent cash burn. Such structural losses imply continued need for external capital or dilution, delaying self-funded growth and increasing execution risk unless margins or operating discipline improve materially.
Negative Operating & Free Cash Flow
Persistent negative operating and free cash flows constrain reinvestment capacity and heighten reliance on financing. Over a multi-month horizon this limits ability to fund R&D, inventory, or contracts internally and increases vulnerability to funding market volatility or covenant pressure.
Negative EBIT/EBITDA
Negative EBIT and EBITDA despite healthy gross margins point to high operating expenses or weak operating leverage. This structural operating loss indicates the business must either scale significantly or materially cut SG&A/R&D to reach sustainable profitability and capitalize on its margin potential.

Elsight Ltd. (ELS) vs. iShares MSCI Australia ETF (EWA)

Elsight Ltd. Business Overview & Revenue Model

Company DescriptionElsight Limited provides connectivity technology solutions. It offers Halo, a communication platform. The company also provides beyond visual line of sight, a solution for operation of aerial vehicles without pilot observation. In addition, the company offers unmanned aerial vehicle for drone operations. Further, the company provides continuous wireless delivery of data services. It serves technology solutions to delivery and logistics, agriculture, telehealth, remote learning, broadband, mobile connectivity, fleets, security and defense, and industrial and inspection industries. The company was founded in 2009 and is headquartered in Or Yehuda, Israel.
How the Company Makes MoneyElsight generates revenue through the sale of its proprietary communication devices and associated software solutions. The primary revenue stream comes from direct sales of the Halo device to customers in sectors such as defense, public safety, and commercial enterprises that require robust communication systems. Additionally, Elsight offers ongoing support and maintenance services, creating a recurring revenue model. The company may also establish partnerships with other technology firms and government agencies, which can lead to collaborative projects and contracts that further enhance its earnings potential. Furthermore, revenue can be supplemented by licensing its technology to other manufacturers or service providers.

Elsight Ltd. Financial Statement Overview

Summary
Elsight Ltd. demonstrates strong revenue growth but struggles with profitability and cash flow. The company has improved its equity position, yet persistent negative cash flows and operating losses impact financial stability.
Income Statement
45
Neutral
Elsight Ltd. shows a positive revenue growth trajectory, with a 31.7% increase in revenue from 2023 to 2024. However, profitability remains a significant challenge as evidenced by negative EBIT, EBITDA, and net income margins. Gross profit margin stands at 57.5% in 2024, indicating potential for future profitability, but the negative net profit margin of -190.9% highlights ongoing financial struggles.
Balance Sheet
40
Negative
The company has improved its equity position in 2024 with positive stockholders' equity of 1.15 million, compared to negative equity in 2023. The debt-to-equity ratio is low at 0.16, suggesting manageable leverage, yet the overall financial health is still weak due to historically negative equity and high liabilities relative to assets.
Cash Flow
35
Negative
Cash flow challenges persist for Elsight Ltd., with negative operating and free cash flows in 2024. The operating cash flow to net income ratio indicates operational inefficiencies. Although free cash flow improved slightly compared to 2023, it remains negative, underscoring the need for improved cash management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.78M2.03M1.54M1.19M574.01K1.73M
Gross Profit4.11M1.17M807.52K-564.98K-935.29K229.38K
EBITDA-2.28M-3.19M-2.60M-4.40M-5.92M-3.75M
Net Income-2.93M-3.87M-3.68M-6.21M-6.04M-3.88M
Balance Sheet
Total Assets9.98M2.26M4.44M10.33M3.82M9.73M
Cash, Cash Equivalents and Short-Term Investments7.46M885.67K2.70M5.19M2.03M8.03M
Total Debt896.62K180.10K5.32M4.25M339.54K9.54K
Total Liabilities8.12M1.11M6.10M7.60M992.97K1.35M
Stockholders Equity1.86M1.15M-1.66M2.73M2.82M8.38M
Cash Flow
Free Cash Flow4.87M-1.78M-2.24M-5.30M-5.76M
Operating Cash Flow4.89M-1.77M-2.19M-5.30M-5.72M-3.60M
Investing Cash Flow-133.84K-16.89K-44.08K-3.53K106.03K-104.90K
Financing Cash Flow636.11K-37.49K-119.42K6.96M-252.07K10.31M

Elsight Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.94
Price Trends
50DMA
2.42
Positive
100DMA
2.06
Positive
200DMA
1.62
Positive
Market Momentum
MACD
0.40
Negative
RSI
86.46
Negative
STOCH
95.16
Negative
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 3.94 is above the 20-day moving average (MA) of 3.36, above the 50-day MA of 2.42, and above the 200-day MA of 1.62, indicating a bullish trend. The MACD of 0.40 indicates Negative momentum. The RSI at 86.46 is Negative, neither overbought nor oversold. The STOCH value of 95.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:ELS.

Elsight Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
AU$336.67M40.8019.64%1.10%37.80%28.88%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
60
Neutral
AU$1.03B-25.15-50.48%333.23%10.83%
58
Neutral
AU$517.46M28.768.20%1.06%-30.96%
46
Neutral
AU$145.74M-19.81-140.76%-41.24%75.68%
45
Neutral
AU$865.91M-139.72191.25%19.43%
38
Underperform
AU$7.95M-0.59-135.89%-21.60%-657.00%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:ELS
Elsight Ltd.
3.94
3.58
994.44%
AU:YOJ
Yojee Ltd.
0.41
0.28
215.38%
AU:TYR
Tyro Payments Ltd.
0.98
0.14
16.07%
AU:MYG
Mayfield Group Holdings Limited
2.95
2.24
315.49%
AU:BCC
Beam Communications Holdings Limited
0.09
0.02
33.33%
AU:WBT
Weebit Nano Ltd.
4.91
2.37
93.31%

Elsight Ltd. Corporate Events

Elsight Seeks ASX Quotation for 100,000 New Ordinary Shares
Jan 15, 2026

Elsight Limited has applied to the ASX for quotation of 100,000 new fully paid ordinary shares, to trade under its existing ticker code ELS. The securities, issued on 14 January 2026 following the exercise or conversion of existing options or other convertible instruments, will modestly increase the company’s quoted capital base and may slightly enhance liquidity for shareholders once admitted to trading.

The most recent analyst rating on (AU:ELS) stock is a Hold with a A$3.50 price target. To see the full list of analyst forecasts on Elsight Ltd. stock, see the AU:ELS Stock Forecast page.

Elsight Wins First 2026 U.S. Public Safety Order Amid Looming FAA BVLOS Rules
Jan 7, 2026

Elsight has secured a US$460,000 purchase order from a prominent U.S. commercial customer in the public safety sector, its first announced commercial deal for calendar 2026, underscoring growing demand for its Halo connectivity platform beyond defence. The order highlights public safety as a leading early-use market for Beyond Visual Line of Sight drone operations and reflects rising commercial engagement ahead of the expected finalisation of the FAA’s Part 108 BVLOS rules, which industry participants anticipate will accelerate broader adoption and deployment of unmanned systems in high-value, mission-critical environments.

The most recent analyst rating on (AU:ELS) stock is a Buy with a A$3.60 price target. To see the full list of analyst forecasts on Elsight Ltd. stock, see the AU:ELS Stock Forecast page.

Macquarie Group Ceases to Be Substantial Shareholder in Elsight
Jan 7, 2026

Macquarie Group Limited has notified Elsight Ltd that it has ceased to be a substantial holder in the company, as disclosed in a regulatory filing dated 7 January 2026. The change removes a major institutional investor from Elsight’s substantial shareholder register, potentially altering the company’s shareholder base composition and reducing Macquarie’s direct influence over voting outcomes, although specific transaction details and volumes were not disclosed in the notice.

The most recent analyst rating on (AU:ELS) stock is a Buy with a A$3.60 price target. To see the full list of analyst forecasts on Elsight Ltd. stock, see the AU:ELS Stock Forecast page.

Elsight Shifts Aura Defence Program Into Production as It Accelerates U.S. Expansion
Jan 1, 2026

Elsight has delivered the first batch of its newly developed Aura communications platform to a leading defence prime contractor, marking the transition of this strategically important program from research and development into production and initial deployment. Aura is designed to support both uncrewed systems and soldier‑level communications, significantly broadening Elsight’s addressable defence market beyond its core unmanned systems base and enhancing its positioning in global defence and security programs. The company is also deepening its U.S. presence by hiring two senior sales and business development executives with strong Department of Defense ties to accelerate pipeline conversion and win new government and defence contracts, while stating that proposed NDAA FY26 regulatory changes are not expected to hinder its operations. Taken together, these steps cap a year of operational and financial turnaround in 2025 and build momentum for 2026 by expanding order visibility into 2026 and reinforcing Elsight’s competitive footing in key defence markets, particularly in the United States.

The most recent analyst rating on (AU:ELS) stock is a Buy with a A$3.60 price target. To see the full list of analyst forecasts on Elsight Ltd. stock, see the AU:ELS Stock Forecast page.

Elsight Issues 150,000 New Shares in Routine Capital Move
Dec 22, 2025

Elsight Ltd. has issued 150,000 ordinary fully paid shares on 19 December 2025 and has notified the market that this capital issuance was conducted without a prospectus or other disclosure document under the relevant section of the Corporations Act. The company confirmed it remains compliant with its financial reporting and continuous disclosure obligations and stated there is no undisclosed excluded information, signalling that the small share issue is routine in nature and not accompanied by any material, non-public developments for existing shareholders or the broader market.

The most recent analyst rating on (AU:ELS) stock is a Buy with a A$3.60 price target. To see the full list of analyst forecasts on Elsight Ltd. stock, see the AU:ELS Stock Forecast page.

Elsight Seeks ASX Quotation for 150,000 New Ordinary Shares
Dec 22, 2025

Elsight Limited has applied to the ASX for quotation of 150,000 new fully paid ordinary shares (ASX code: ELS), following the exercise or conversion of existing options or other convertible securities. The additional shares, issued on 19 December 2025, will modestly expand the company’s quoted capital base and may marginally enhance liquidity for shareholders once admitted to trading on the exchange.

The most recent analyst rating on (AU:ELS) stock is a Buy with a A$3.60 price target. To see the full list of analyst forecasts on Elsight Ltd. stock, see the AU:ELS Stock Forecast page.

Elsight Secures Major US$21.2M Contract, Boosting 2026 Outlook
Dec 16, 2025

Elsight Ltd. has secured a significant US$21.2 million contract for the first four months of 2026, marking a substantial increase in demand for its Halo platform in the global defense and uncrewed systems market. This contract, from an existing European OEM customer, represents a 13.5-fold increase in orders compared to the same period in 2025, reinforcing Elsight’s position as a key connectivity provider for next-generation uncrewed platforms. The deal, structured with favorable upfront payment terms, is expected to support Elsight’s scale-up efforts and contribute to a strong start in 2026, with expanded opportunities in the defense and commercial sectors.

The most recent analyst rating on (AU:ELS) stock is a Hold with a A$2.50 price target. To see the full list of analyst forecasts on Elsight Ltd. stock, see the AU:ELS Stock Forecast page.

Elsight Advances in U.S. Defense Market with Key Project G.I. Selection
Nov 18, 2025

Elsight Limited has been selected by the U.S. Defense Innovation Unit to advance to Phase 3 of the Project G.I., Design Reference Mission 2 Prize Challenge, marking a significant milestone in its strategic positioning within the U.S. defense ecosystem. This advancement aligns with the U.S. Department of War’s shift towards rapid procurement and modular architectures, benefiting agile technology partners like Elsight. The company’s Halo platform, which has demonstrated battlefield-proven capabilities, will undergo further testing and operational demonstrations, supported by significant funding. This development positions Elsight to benefit from the increasing demand for secure connectivity solutions amid rising defense budgets and the U.S. defense sector’s transformation.

The most recent analyst rating on (AU:ELS) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on Elsight Ltd. stock, see the AU:ELS Stock Forecast page.

Elsight Ltd. Announces Quotation of New Securities on ASX
Nov 3, 2025

Elsight Ltd. has announced the quotation of 60,000 new ordinary fully paid securities on the Australian Securities Exchange (ASX), following the exercise of options or conversion of convertible securities. This move is expected to enhance the company’s financial flexibility and potentially strengthen its market position by increasing its capital base.

The most recent analyst rating on (AU:ELS) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on Elsight Ltd. stock, see the AU:ELS Stock Forecast page.

Elsight Ltd. Issues 1 Million Shares to Enhance Market Position
Oct 30, 2025

Elsight Ltd. has issued 1,000,000 ordinary fully paid shares without disclosure under the Corporations Act, complying with relevant legal provisions. This move indicates Elsight’s strategic financial maneuvering to potentially strengthen its market position and operational capabilities, impacting stakeholders by aligning with regulatory compliance and transparency.

The most recent analyst rating on (AU:ELS) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on Elsight Ltd. stock, see the AU:ELS Stock Forecast page.

Elsight Ltd. Expands Market Presence with New Securities Issuance
Oct 30, 2025

Elsight Ltd. has announced the issuance of 1,000,000 fully paid ordinary securities, which will be quoted on the Australian Securities Exchange (ASX). This move is part of the company’s strategic efforts to enhance its market presence and provide more liquidity for its stakeholders, potentially impacting its financial standing and investor appeal positively.

The most recent analyst rating on (AU:ELS) stock is a Hold with a A$1.50 price target. To see the full list of analyst forecasts on Elsight Ltd. stock, see the AU:ELS Stock Forecast page.

Elsight Ltd. Achieves Record Q3 2025 Revenue and Profitability
Oct 26, 2025

Elsight Ltd. has reported a record-breaking Q3 2025, achieving its highest-ever quarterly revenue of approximately US $8.7 million, marking a significant 1,804% year-on-year increase. The company has reached profitability for the first time in its history, driven by strong growth in both defense and commercial segments, and strategic investments in sales and marketing. Inclusion in key ASX indices has increased its visibility among investors, supporting its growth strategy. The company’s recurring revenue streams have also strengthened, contributing to financial stability and future performance.

The most recent analyst rating on (AU:ELS) stock is a Buy with a A$1.90 price target. To see the full list of analyst forecasts on Elsight Ltd. stock, see the AU:ELS 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: Jan 08, 2026