Investment Thesis
Actelis Networks is in severe financial distress with collapsing revenue (-52.7% YoY), massive operating losses, and negative free cash flow of -$7.7M that is rapidly depleting cash reserves. The company is burning cash at an unsustainable rate with only $4.1M in cash equivalents against $7.7M annual operating cash burn, indicating the current business model is fundamentally unviable without dramatic restructuring or capital infusion.
Strengths
- Adequate liquidity position with 2.46x current ratio providing near-term survival runway
- Minimal debt burden with 0.03x debt-to-equity ratio reducing financial obligations
- Positive gross margin of 33.2% suggests underlying product economics are sound if scale can be achieved
Risks
- Revenue collapse of 52.7% YoY indicates severe market demand deterioration or loss of major customers
- Operating cash burn of $7.7M annually with only $4.1M cash on hand implies critical runway of 6-7 months without additional funding
- Operating loss of -$7.2M on $3.7M revenue reflects structural unprofitability and inability to control operating expenses relative to declining sales
- Negative operating margin of -195.7% and net margin of -225.0% demonstrate the business is destroying shareholder value at scale
Key Metrics to Watch
- Quarterly revenue trends and customer concentration analysis to assess demand stabilization
- Monthly operating cash burn rate and cash runway analysis before liquidity crisis
- Operating expense reduction progress and path to breakeven profitability
Financial Metrics
Revenue
3.7M
Net Income
-8.3M
EPS (Diluted)
$-5.68
Free Cash Flow
-7.7M
Total Assets
9.5M
Cash
4.1M
Profitability Ratios
Gross Margin
33.2%
Operating Margin
-195.7%
Net Margin
-225.0%
ROE
-172.2%
ROA
-86.7%
FCF Margin
-209.8%
Balance Sheet & Liquidity
Current Ratio
2.46x
Quick Ratio
1.76x
Debt/Equity
0.03x
Debt/Assets
49.7%
Interest Coverage
N/A
Long-term Debt
150.0K
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-03-20T06:12:12.213752 |
Data as of: 2025-12-31 |
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