Elsight Ltd. (AU:ELS)
ASX:ELS
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Elsight Ltd.
(Sydney:ELS)
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Rating:73Outperform
Price Target:
AU$7.50
â–²(5.04% Upside)
Action:ReiteratedDate:03/26/26
The score is driven primarily by strong 2025 financial performance (profitability, cash generation, and a conservative balance sheet). This is tempered by a high P/E valuation and technically overbought signals (RSI ~70, Stoch ~81) despite a strong uptrend.
Positive Factors
High profitability and margins
A large margin profile and material 2025 revenue lift indicate the business can generate strong incremental operating profit as scale increases. Durable high gross and EBIT margins support reinvestment in product, channel development and cushion against competitive pricing pressure.
Negative Factors
Historic volatility in earnings/cash
A one-year profitability inflection following multiple years of losses highlights execution and cyclical risk. If 2025 results reflect temporary dynamics, margins and cash conversion could regress, meaning the company must demonstrate multi-year consistency to validate its financial durability.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability and margins
A large margin profile and material 2025 revenue lift indicate the business can generate strong incremental operating profit as scale increases. Durable high gross and EBIT margins support reinvestment in product, channel development and cushion against competitive pricing pressure.
Read all positive factors
Elsight Ltd. (ELS) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$1.50B
Dividend YieldN/A
Average Volume (3M)899.53K
Price to Earnings (P/E)12.0
Beta (1Y)1.51
Revenue Growth1038.95%
EPS GrowthN/A
CountryAU
Employees18
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.04
Shares Outstanding220,496,840
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$8.10Price Target Upside13.45% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.1
Revenue Forecast (FY)AU$78.32M
Elsight Ltd. Business Overview & Revenue Model
Company Description
Elsight 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 co...
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
5.23
Positive
4.17
Positive
2.96
Positive
Market Momentum
0.47
Negative
68.85
Neutral
80.23
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 7.14 is above the 20-day moving average (MA) of 6.27, above the 50-day MA of 5.23, and above the 200-day MA of 2.96, indicating a bullish trend. The MACD of 0.47 indicates Negative momentum. The RSI at 68.85 is Neutral, neither overbought nor oversold. The STOCH value of 80.23 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | AU$1.50B | 11.99 | 28.89% | ― | 1038.95% | ― | |
70 Outperform | AU$298.63M | 17.02 | 17.25% | 1.10% | 47.02% | 103.62% | |
68 Neutral | AU$393.10M | 7.43 | 10.65% | ― | -0.38% | -18.37% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
50 Neutral | AU$5.27M | 0.92 | 26.81% | ― | -17.34% | ― | |
49 Neutral | AU$967.85M | -8.87 | -57.61% | ― | 508.63% | -6.35% | |
43 Neutral | AU$122.63M | -12.17 | -105.39% | ― | -26.79% | -25.29% |
* Technology Sector Average
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Elsight Ltd. Corporate Events
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...
Elsight seeks ASX quotation for 125,000 new ordinary shares
Mar 12, 2026
Elsight Ltd. has applied for quotation on the ASX of 125,000 new ordinary fully paid shares, which are scheduled to be issued on 16 March 2026. The additional securities arise from the exercise or conversion of existing options or other convertibl...
Elsight Seeks ASX Quotation for Additional 10,000 Shares
Mar 12, 2026
Elsight Ltd. has applied for quotation on the ASX of 10,000 new ordinary fully paid shares, with an issue date of March 13, 2026. The additional securities, arising from the exercise or conversion of existing instruments, modestly expand the compa...
Elsight Joins S&P/ASX 300 in Wide-Ranging March Index Rebalance
Mar 6, 2026
SP Dow Jones Indices has announced the March 2026 quarterly rebalance of the SP/ASX index family, triggering a broad reshuffle across the 20, 50, 100, 200 and 300 benchmarks ahead of the March 23 open. The moves include notable promotions such as ...
Elsight Files Updated Corporate Governance Statement and Appendix 4G with ASX
Feb 24, 2026
Elsight Limited has lodged its updated corporate governance statement for the financial year ended 31 December 2025, confirming that the document is current as of 25 February 2026 and approved by the board. The statement, accessible via the compan...
UBS Group Exits Substantial Shareholding in Elsight
Feb 9, 2026
Elsight Ltd. has disclosed that UBS Group AG and its related bodies corporate have ceased to be substantial shareholders in the company as of 5 February 2026, according to a statutory notice filed under Australian corporations law. The change refl...
Elsight Sets Q4 Results Webinar to Highlight Strategy Amid Shifting Defense Landscape
Feb 3, 2026
Elsight has scheduled a public webinar on 4 February 2026 to present its fourth-quarter 2025 results, positioning the event as a showcase of how the company is responding to major shifts in the global defense landscape. Management plans to outline...
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.