Good afternoon, good morning, and good evening to everyone joining from around the world. Thank you for taking the time to be here.

My name is Howard Digby, Non-Executive Director of Elsight. With us on the call are our board and management: Ami Shafran, Chairman; Jim Landau and David Furstenberg, Non-Executive Directors; our CFO, Dan; and our CEO, Yoav, who will present today.

Before we dive in, I will direct your attention to the disclaimers on slide two. I won't read them in full, but I want to highlight the key points.

This presentation is for information purposes only and does not constitute financial product advice. We will discuss forward-looking statements today.

These involve known and unknown risks that could cause actual results to differ. A quick reminder on all our reporting, all figures discussed today are in US dollars unless stated otherwise, and we operate on a calendar year basis.

That makes it easy. We'll say 2025 or 2026, this year, last year.

Regarding logistics, we will have a dedicated Q&A session at the end. However, you are welcome to submit your questions at any time using the Q&A button at the bottom of your screen.

We'll address as many as possible during the session, and I may even group sort of like questions together. It is now my pleasure to hand over to our CEO, Yoav Amitai.

I have to say, this is a quarter where the results speak loudly, but the strategic progress may speak even louder, between a fifth consecutive record quarter, Blue List approval landing in the same week as the largest US drone budget in history was announced, and a new product already in the hands of design-win partners. There's a lot to cover.

Over to you, Yoav.

Thank you very much, Howard, and thank you, everyone, for joining us today. Good evening, good morning, good afternoon, like Howard said.

I want to start with the headline. I want to start from the top line saying that first quarter have show us showed us more than anything that we're in the right direction in terms of our strategy and where we're putting our effort in.

It's provided us with the fifth, like Howard mentioned, the fifth consecutive quarter that we are hitting our target and we are having an an increase in the revenue. This this quarter was $11.6 million in revenue, which is 12 more 12-folds than what we have in the first quarter of 2025.

That's supported by a big pipeline increase that we have. We had a profitable business model, which is creating cash flow positive.

We have $64 million in cash in the bank. Like Howard mentioned, our two main points that I want to put on the highlight, one is that we were included in the US Blue List, what we just announced yesterday.

That's why one of the reasons why we put the presentation a little late because knowing that will come before the presentation. I'll cover it in details in the presentation, what is the meaning of it.

I want to say again, like Howard mentioned, that it just come in a perfect stun timing when the largest US drone budget in the history, and that's significant. We'll talk about it in the presentation.

Second about the soft launch of new product, specifically this quarter, the non-GNSS product, which is not yet an official launch, but that's a soft launch with first design partners that we work with start to feel the product, start to feel the value that it provide them in the actual field and see what are the feedbacks that we're getting. From here, we're we will scale out.

People many times ask me what keeps us what excite me or well what what is exciting about Elsight. Regardless of all the let's call it all the natural or organic growth that are that is happening to us, which is not something we're taking for granted, we're working very hard to get there.

All the new initiatives that we're doing, which include new product portfolio, expansion of the product, and and not only the product in our case, but also doing it with the new business unit that we'll talk about it that is going after a net new market, having everything we need and the perfect storm that is happening around us create a lot of excitement. Everything that is related to the net new initiatives, that's where we are seeing the growth coming.

The thesis haven't changed. We're still seeing that the vast majority of the revenue will come from from defense or will be driven by defense because of the macro geopolitical environment we live in.

In the next, call it 24 months, that's where we're focusing. Having said that, we're and we're I'm not going to mention it a lot a lot during this presentation, but I want to emphasize that we're doing a lot also in the commercial space.

We have a lot of progress that is happening there. We are expecting the Part the Part 108 to to start to be to be implicate implemented basically, and that should accelerate there.

That's the medium-long-term opportunity. When we're looking on what we have in front of us at the moment, seeing those budget that I will talk about, seeing the the level of excitement, or the level of traction that we have with our existing offering and the new offering that we're bringing to the market, that's where we're seeing the growth, or that's where what we're looking to do next basically.

Again, looking on this quarter that we was ended about a month ago, more than anything it was a great evidence of the how substantial and strong the market is, how substantial and accurate our strategy is. From here, it will be to execute with everything that we have to continue this execution.

Speaking of the quarterly increase and and the charts, I think it tells a better story than anything I can say. If we're looking on the trajectory of the quarters and we look on what happens to us in the past, and also if we're looking forward what is going to happen next, what we're seeing is not a lumpy project revenue.

Many time in defense market, people investors are afraid of lumpiness of of the or the lumpiness nature of the business. I think what we are being able to show the last, call it year and a half, is that it's not lumpiness.

It's something that is built of existing deployments with a lot of recurrent revenue part of it. We'll talk about that.

Everything driven by our design-win strategy that basically means that every new customers that become a design win is a tip of an iceberg for us and they are going to many other customers of theirs. How all of this is moving into production and scaling over time.

Again, even if we're looking forward, we are seeing how this how this trend will continue, this quarter-over-quarter increase. Just for reference of numbers, the the first quarter of '26 was 25% higher than the last quarter of '25, which is unprecedented in something that's growing so fast.

In terms of number of customers, the revenue came from tens of different customers. Eight of them was net new customers, basically new design wins, new customers that were still onboarding both in the commercial space and in the defense space.

That sets a very strong baseline for us to continue this growth and and to continue to to push the numbers to push the numbers up. Looking a little in a high level about what happened in the industry, and I think that's something that we have mentioned in the previous presentation as well, but what we're seeing the last two years, it's what currently really happening or really taking structural shift.

It's not again not a cycle. People used to ask me, actually this didn't happen in the last couple of months, but people used to ask me how much of our revenue is conflict-dependent.

My straight answer is that I think if something happened in the world in February in February 2022 when the Russian started the invasion into the Ukraine is that the world understood that that can happen to the rest of of Europe, it can happen in other places. We have seen during the first quarter the first calendar the last two months all the Iran-US conflict or war that is happening there.

We're not talking about a cycle that is hype or something. We're talking about something much more structural.

When government are talking to increase their budgets, when NATO is taking the target from 5 from 2% GDP to 5% GDP, when the US is talking about or putting a request of $1.5 trillion of defense budget, of if you're looking on 2024 2025, sorry, the the global defense spending hit $2.72 trillion, which was the highest increase since the Cold War. Those are trends that are not a cycle trends, those are structural trends.

There are changing. It include NATO like like I mentioned.

It include the EU committed for €800 billion under the ReArm Europe. It include a lot of a lot of trends that we're seeing and happening.

I think what's super interesting in that, and I also talked about it in our previous presentation, is that the point is simple: government are buying at scale, they need solution that work today. They're not looking anymore for 10-20 years program.

They're looking for commercial off-the-shelf, COTS, commercial off-the-shelf good that can be deployed today or tomorrow. That's exactly where Elsight is playing, exactly in this field of ready-to-use capabilities, ready-to-use product that are off the shelf and can be adapted whether we're talking then again on commercial application, defense application, in every domain, whether we're talking overseas, in ground in ground systems, in aerial systems.

That's where we are seated. If you look If you ask me what is our broader view of Elsight in general or what we're building in Elsight, we're moving from communication company to become the backbone of uncrewed system basically.

I think that today it's a very unique point in time that a super mature and and huge market is going through disruption. We are we were coming to this disruption probably with the best timing, in the best place, with a very strong value proposition and a lot of experience.

Today, we're leveraging this experience to become this backbone, this infrastructure layer that every uncrewed systems needs to in in matter to operate. Again, we're not talking about only connectivity.

That's where we started, that's where we prove ourselves. Now we are expanding it to positioning, to video, to some autonomy features, and that's where we're going to.

Each step is driven by customer demand. It's not driven by us having wishful thinking of what we think the market needs, but actually inbound requests of, "Why won't you do this or do that?"

Obviously, we're trying to balance of what is right to invest in in terms of R&D spend and what is wrong. Based on that, we are expanding our portfolio.

The way it's looked like is, on the left, what you're seeing is where we are today. Doing mainly connectivity, you all very super familiar with our resilient connectivity.

I think we proved time and time again what is the value proposition and how strong is the value proposition of what what we're bringing to the market. On the right is where we're heading to.

It's four-pillar platform covering connectivity, positioning, autonomy, video and sensor control. Basically, the idea is to have a whole product solution to create this to become this tier-one that provide the OEMs and the end users all those capabilities together in one place.

I'll I'll talk about it in a high level in a second, but I want to say that connectivity is already in production. Like you all know, we have more than 500,000 operational hours in the field.

The positioning was soft launched in Q1, like I said, with the first design partners. We actually have already started to get to get feedback from actual customer usage.

It's patent-pending and software-only. It means that for us to do upsell or cross-sell into our existing install base does not require any additional hardware, just software upgrade basically.

It makes it much frictionless, let's call it. I won't say easy, but less friction to to do this upsells and cross-sells.

When we're talking about video and autonomy, those are still in development. Some video features are already been used by our customers.

I also want to mention that not all of it will be developed internally in Elsight. Part of it, if we're seeing a company that have a good product in the autonomy space, for example, we will either join them, we will partner with them to do it the right way.

When we'll talk about later about growth opportunities and not only organic growth, but also inorganic growth, those are the areas of what we're looking at, of what will add us more capabilities in this frame that will something that we know how to sell, we know how to take to our customers and how to how to take to net new customers. That's what we're another element of what we're looking at in our strategy.

Zooming out further a little bit about where we sit within the platform, and that's that's little technical, but that's the broad vision of what we're doing. Every unmanned system, doesn't matter if we're talking about aerial vehicle, ground vehicle, maritime robotics, doesn't matter if we're talking about agriculture application or inspection or any defense application or homeland security, all of them have, generally speaking, four different layers.

On the bottom line, there is the hardware layers, the hardware layer, which is the the platform chase, it is the batteries, the flight control unit, the payloads, the engines, the edge computer, everything that is actual physical on the platform in the edge. On top of it, we have the platform OS—OS stands for operating system—we'll talk about it at depth in a second.

Then we have the mission OS, and then we have the HMI, which stands for human-machine interface. Elsight is playing in the green platform OS.

In the hardware, we're not building drones, robots, or or boats at all, okay? It's something that people are still asking us from time to time, "When your drones will start flying?"

or something like that. That's not our business.

That's not where Elsight plays. Elsight is playing in the platform OS.

Just to give you an example, in the mission OS or in the human-machine interface, there are companies like, for example, Anduril with their Lattice. There are all the primes have their product in this field.

Another good example is Quantum Systems' Mosaic system, for those of you who a little bit familiar with the ecosystem. Those are the example.

In the platform OS layer, there are not many competitors that are competing for this layer as a T1. We found that there is a very tight relationship between all those different capabilities.

If they are done properly, a lot of the OEMs, the drone manufacturers, the robot manufacturers don't want to deal with this layer. If they can take a box, to speak a box, that can be a virtual box, that will solve this issue for them, that's something that they will take with two hands and the willingness to pay is very high there.

Each one of those pillars—the navigation, the the video sensor control, the communication, the autonomy—have different challenges, have different addressable market, but they're all very tightly connected. That's how we are building them to be additional revenue stream, a more diverse revenue stream for ourself.

We build it as a platform layer that every platform needs, regardless of who makes it, what mission it flies or driving, or where it operates. They all need that.

That's the kind of, if you will, kind of the Intel Inside model in its fullest expression. That's where we're going to.

The way we're doing it in terms of business and expanding our team, we are seeing or a quick word about execution in general. We built a team During the first quarter, we built a high-performance sales and business development team that actually started to deliver results.

We onboarded five new sales executive in the US, Europe, Germany, and sorry, Germany, UK, and and the US. We have another one in the Middle East that we added in.

We're moving manufacturing closer to our customers. We understand that we need to have closer manufacturing facilities more closer to our customers.

It's something additional initiative that we're doing to move our part of our production to the US and Europe. We're not onboarding hundreds of people just to say that we're a big company.

We're trying to be to bring the right people in the right time, in the right markets to make sure that we are as productive as and as efficient as possible while we're also thinking about the long-term strategy and how leveraging our strengths and the and the tailwinds that we're seeing in the industry and not only here and now. I'm not saying it to say that we're we're very cautious with our cash management.

I want to say that we are in places where we feel that if we will put more dollars, if we will put a pedal to the metal to be more aggressive, we are doing it in in full throttle. We also in in the same time, we're also thinking long term and how we create a super profitable business on the long term and how we build it properly, the so the growth will be there, but we will maintain we will maintain our profitable business model as a as ideology basically.

Speaking a little bit about the pipeline and pipeline number in general, on the top line, our $156 million in active pipeline, it's as of March 31st, something to mention. It's not today.

Obviously, the numbers are constantly moving. Now, I want to be clear about what this is, and I mentioned it in our in my previous presentation.

These are real programs, real customers, real budgets. Those are not market commentary or wishful thinking.

Those are real engagement that we have with the industry. The funnel breaks down, as you expected, we have we still have $12 million already contracted as a backlog from different customers.

That is expected to be delivered in in the short in the very short term. On top of it, we have the $40 million in commercial discussion, and the $72 million, the total of $72 million in evaluation in progress and below.

Those are where we're feeling more more confidence and where we're understanding what are the processes or what needs to be done to execute this revenue. I'm not saying that it will happen tomorrow, but I do see I do say that we have a better visibility there.

Also, if we're looking on on the top of the funnel and everything we're doing there, it's all based on actual engagement with the industry. The important context is this is this pipeline was built with pretty minimal sales and marketing investment.

Now that we're scaling the team and we already started to see results from the five people that we onboarded, all of them have already supported this pipeline increase with net new opportunities. Part of them are already actually brought POs, purchase orders, and we're only in the first two months, two, three months of their work.

The the beginning looks very, very promising in terms of both net new pipeline as well as converting this existing pipeline, which will still take a lot of work, but we have the right people and the right product to be able to convert it. Now, one thing that it's super important to mention, I mentioned before the product expansion the product portfolio and expansion and everything we're doing there, this pipeline reflects Halo connectivity only.

It does not include the positioning. It does not include the part of the AURA opportunities.

It does not include the the new business unit that we'll talk about in the future. Those are entirely additive for these numbers.

Obviously, part of those that I mentioned are expected to generate revenue this year, in 2026. Again, like Howard mentioned, every all the numbers that you are seeing here are in US dollars.

As I said before, those numbers are as of end of March, when we ended the quarter basically. I want to take you through the US or, in general, our advance or what happened to us in the US market.

Just yesterday, we announced that we were the Halo was listed in the Blue in the Blue List. Again, it come in a perfect timing when the the US are increasing their budget around around those initiatives, and that's actually how those budgets are being allocated.

It means particularly specifically it means that now US military units can produce procure, sorry, Halo directly, bypassing the traditional multi-year government contract or long, very very complex acquisition processes. The Blue List is how those, like I said, those $75 billion in FY27 budget actually reach companies like ours.

That's that's a big that's a big step stepping stone for us. It doesn't mean that there is a short-term revenue implication for that.

I had a lot of question from yesterday announcement. I do want to say that that's reduced a lot the friction in the sales cycle, but I want to say that there is still a lot of effort that needs to be put there in manage to us to take this and to leverage into actual sales.

As I said, we do have the right team. We're seeing growing excitement and growing traction in the US market.

We're seeing that that the timing of this Blue UAS, which creates a lot of noise in the industry, obviously, come in the perfect timing in terms of the new budget of, like I said, $1.5 trillion budget request, still not approved. $75 billion of it is going for drone.

$54 billion of it is going to the DIU, which is the autonomous system program alone. Just to understand when I was talking about the how fast that total addressable market is growing, these numbers, this $54 billion in 2027 expected in 2027 was $226 million just a year before.

It means that we have a massive increase in in demand, a massive increase in budget and actual contracts. That, to put it simply, is we got approved in the list exactly in the moment when the money is starting to flow in, and the timing was just perfect for us.

Another point to mention, Blue UAS in general is a program that companies can pay to play. Basically, company can pay for to become part of this process.

They're going through all the qualification and all the certification as part of this process, ensuring cyber, ensuring supply chain resiliency, ensuring NDAA compliance, everything that they are doing in the program, but they have to pay for it. I think that a very interesting point in our case is that the Blue UAS was funded for Elsight Halo or for Elsight in general by the by the by the US DIU as part of the Project GI program, which I think it shows how important it is for them to have our capabilities.

Also, it's obviously should help us in reducing more the friction on the Project GI program or the SOCOM OTA that we have or all the different initiatives that we already have in place that can become or that can accelerate the conversion of those program into actual revenues. Taking it a little broader than only the US market, and we'll talk about it a lot about what happened in the in the US.

I mentioned in the Blue the Blue List, I mentioned the SOCOM OTA access, which is another It was a small line in our quarterly activity report, but that's again, those are programs and processes that reduce friction from procurement. The reason they are happening is because we have sponsors, to speak, within the DIU that really wants our capabilities to be on their platforms, and that's why it happened so fast for us.

Again, I think that's a very strong signal of of product-market fit. In Europe, like I said, I was talking before about the NATO shift from 2% to 5% of GDP, the UK's the UK's new SDR, which wasn't approved yet, but what they call the 20/40/40 doctrine, which a lot of the budget should be allocated into uncrewed systems, the Germany Drone Wall, which is a combination of counter-drone and and drone systems that will be deployed there.

The European in general have their €800 billion commitment for create all this or or creating a lot of procurement activity and a lot of opportunities that we actually starting to see in the market in terms of our customers and our end users. Now that we have our senior hires in the UK and Germany, like I mentioned, and we are onboarding a European manufacturer to be closer to our to our market, to be closer to reduce the friction of supply chain control, that set us in a very interesting spot there.

Speaking a little bit about the rest of the world, I think that what happened during the first quarter more than anything looking on the Iran-US war that I mentioned before, I think it changed the whole thinking process of GCC countries, which now understand that they're investing more actually. We actually starting to see the the flow of the program programs coming from them creating their own defense capacities, let's call it, or creating their own forces that will help them to to overcome if something will happen happen again in Iran.

That's a new opportunities that are coming in. We have a person We don't have person on the ground in the GCC countries.

That's something that we're doing from from our office in Israel, but definitely present a lot of interesting opportunities happening there. Having those five senior hires that I were talking about across all those regions and now that we're building this commercial engine to match the product and to match the opportunity, that's where we that's where we sit right now.

How we make money from all of it. In the end of the day, we are talking about business model, and that's why we here for.

The business model is pretty straightforward. We have on every system that we're selling, we have first the hardware sale, which is a perpetual fee basically for the hardware sale.

That's the platform. On top of that, there are two two more elements, which are the AllSight Cloud or the software services and the data usage services that are part of our offering as well.

Every Halo unit generate all three revenue streams, when the top two, the Halo the Halo product, the hardware product, and the AllSight Cloud is mandatory, and the data usage is complimentary if the customers want to get it from us. Then where we are currently focusing a lot of our efforts is increasing the middle layer of the AllSight Cloud and software services for two main reasons.

We believe that that's where we have a lot of value proposition to unlock for our customers in terms of capabilities. Those are the capabilities that I mentioned before of positioning, video, autonomy, and everything relates to that.

Also, that's the layer where we have the highest margins and the recurrent revenue models that plays into there. If we're looking long terms and what we the long tail of the sales that we're doing, that's where we're focusing at the moment.

Speaking about recurrent revenue in general, in the quarter, the recurrent revenue was $1.3 million, which is, again, 11-time higher than the the corresponding period in 2025. It's almost 50% or a little little more than 50% of the entire recurrent revenue in 2025.

Those numbers, as we as the install base grow, the recurrent revenue compounds, and that's how the structural shift in revenue quality. That's why we are also focusing on this layer of the AllSight Cloud and additional services there to increase the average revenue per unit.

In terms of margin, we were able to to keep the the blended margin in approximately 76% like we had before. Again, that's represent the strength of our value proposition to the market.

Speaking of the combination of the hardware and everything, I want to talk about manufacturing and supply chain, which investors tend to to ask us a lot many times. We have today over $150 million in annual capacity, which is not our bottlenecks by not by by no means, and it does not require any additional CapEx.

The hardware is intentionally simple, that's why we designed it this way, it will be relatively easy to qualify new manufacturers that can produce it for us. Our IP sits in the software, which makes it much easier to protect again.

We're onboarding a US and a European manufacturer for supply chain diversification and for customer proximity, and not because of the capacity that we are concerned about, but just to be closer to our customers. All of these together compounds, that's basically provide us the confidence that we will be able to ship units to our customers in full on time based on their growing based on their growing demand.

A brief about a brief about important part about our data and everything that we're doing there. As I mentioned, today we have more than 500,000 flight hours.

By the way, this number was the same in the previous presentation, not because it didn't change, because it's it's big enough for us to show the numbers and just not sharing it with also competitors and others, but obviously that's growing on a on a secondly basis. Even in even while we are doing this call, this number is growing all the time.

We have 500,000 flight hours and drive hours of operational data across diverse environment in different parts of the world, and it gives us one of the richest datasets in the uncrewed systems space in general. Now, this data feeds directly into our model and into everything that we're doing in the communication, positioning, autonomy, and also on the new business unit that I will talk about in a second.

It's not just an historical record, that's a foundation of our future expansion and product. Every hour of the Halo operation that we can log makes our future products smarter and better basically, and that's why that's a very interesting asset that we're holding.

A brief update about the new business model, which is still still in stealth mode, like you all might know. We established this new business unit in July '25.

During Q1, we advanced from early-stage development to internal proof of concept of seeing the actual product working on on simulated datasets. We've began engaging new customers and design partners for this specific initiatives, and we're expecting to onboard our first paying customers during 2026.

I want to be very direct about expectations here. The near-term revenue from this will be very modest.

We're not expecting it to move the needle in '26, but we're talking about super mature industry with a total addressable market of over $20 billion according to different market analysis. As I said in previous presentation, the probability of us taking a market share a relevant market share within this market is still in low probability because it's a brand it's completely new initiative.

If that's valid, if we can do that and if we can prove our value proposition, the revenue potential is much more than material and can become bigger than our existing our existing product basically and market. The reason we're not sharing more is because of the moat that we lack at the moment.

If you'll ask me in the Q&A session, "How do you protect against that?" I will have very bad answer, and that's why we're keeping it in stealth so we won't we are not creating competitors in this field.

Once we will feel comfortable that we have good enough moat or deep enough moat that we dig around it, once we will feel that we have the right engagement with customers, that will be the time for us to come and say to investors, "This is the market we're going after. This is how we're going to do that.

That's the competitive advantage that we're bringing to the market," and so on. Right now, unfortunately, and as you know Elsight, we are trying to be as open as and transparent as possible, but here we believe that that will affect the business performance, and that's why we keep it like that.

I do want to say that the fact that it's in stealth mode does not prevent us from going to customers and speak with customers. We just don't want to to put it in website, or in social networks, or in investors presentations, or anything like that, but we are definitely doing direct communication with potential customers.

Let me close with where we are today and where we are going from here. On the left is everything we already achieved, from record high revenue of $11.6 million in the quarter with still a thick backlog and pipeline that we're working to convert, inclusion in the DIU Blue List for rapid procurement, like I just mentioned during the presentation, in a perfect timing, having $64 million in cash that will help us to press the pedal to the metal and to be aggressive where we think we need to be aggressive, and maintaining the profitable and cash flow positive margins that we were working on.

That's what we already have. Now, when we're looking into the future and executing this $156 million pipeline of opportunities, including expanding existing defense supply defense supply agreement, sorry, new defense customers, new design-win customers, obviously follow-on orders coming from the existing customer base that we have in a long-term relationship with our design-win partners, adding more product into our product portfolio, like the non-GNSS that I mentioned, having more product release during this quarter, doing more engagement through our global team.

That's where we're going to. The catalysts ahead are more tangible and more near term than any point in the history of Elsight, from the time I'm part of Elsight.

That's why we're so excited internally in the company, and that's why we're coming with smile and grit every day that we're coming to the office to continue and push, and make sure that we are keep pushing ourselves and pushing the market and pushing our customers to get to new places. I will end up with that and hand it over back to Howard for questions.

Thank you, Yoav, for walking us through what has clearly been an exceptional quarter, not just in terms of financial performance, but the way our strategic positioning has crystallized. We've received a number of questions already.

Please, everybody, continue typing your questions into the Q&A section. I've also received some by email ahead of the session, which I'll work through as well.

Let me just start, Yoav, with the first question. The team keeps ticking off milestones after milestone, but eventually something must go wrong.

My question is, what keeps you up at night, Yoav? What are the risks you are thinking about?

That's a great question. As I said in previous webinars and when people ask me this question, obviously there are a lot of risk to the business like any other business, and there are a lot of challenges that we're facing.

Like I said, we're coming every day with a smile, even though sometimes we get hit in the face. That's the cost of running a business, I guess.

I would say what more than anything keeps me personally up at night is that there is so much happening in the industry at the moment, and we know what we know, we don't know what we don't know, and making sure that we're not leaving any opportunity on the table, or making sure that if we need to be more aggressive with our sales and marketing efforts or developing new product and new capabilities that can generate even faster growth, that's what concerns me the most, what we don't know about basically. Besides that, I'm feeling very, very comfortable with where we are at the moment and with how the future is look like.

Thanks, Yoav. The next question is, with Halo now deployed on over 10,000 drones, can you tell me what new insights Elsight is learning from the battlefield?

That's happening all the time. The speed of iteration that is happening today and the speed of new capabilities that are coming are constantly happening.

I think if what we're learning more than a lot is that our approach of not being dependent on single thread, whether we're talking about communication that we are aggregating multiple type of networks from cellular to other networks, same in the positioning and the non-GNSS positioning, being rely on a single source of truth, which can be a GPS signal or can be any other type of positioning, those are not working anymore. To be successful in completing missions in today front lines, you need to have choices, you need to have alternatives, and you cannot be dependent on single thread, which is great news for us because that's our long-term approach of how you looking on our product development in general.

We have seen it a lot. I think that even if you're looking on today's new RFIs and RFPs that are going out in the market, some of them are public, you can look at them, they are starting to include capabilities like us, which means that there is an education going on, there is a market understanding of these are the right approach.

That's part of the lesson that we're learning. Again, that's a constant kind of chicken and egg learning that we having all the time.

That's related to what I mentioned about the number of flight hours and what we learned from it.

Thank you. When you mention 300,000 unmanned systems in 2027, this is the USA, right?

And $75 billion in TAM for uncrewed and counter-drone. Actually, probably $54.6 billion in terms of autonomous systems.

How much of this is applicable to ELS given that we don't do FPV class drones, which is a significant part of these? Correct.

For those of you who are not familiar with the terms, FPV drones or they're also called PBAS, those are the super small, cheap drones that are being manufactured in scale. The 300,000 drones unmanned systems, which are part of the Drone Dominance Program, are those kind of drones.

Those are the super small, relatively cheap drones. That's a very good question or it's a very good assumption to say that the Halo is not a great fit for this kind of drones for SWaP-C, for size, weight, power consumption, and cost.

Mainly the cost, by the way. We are We do have customers that are using the Halo on FPV, just the cost doesn't make sense because of what we charge for the Halo.

If we're looking on this program in general, in the Drone Dominance Program today, we have interface or engagement with all the companies that won all the 11 companies who won the the first gauntlet. The second gauntlet is scheduled at the moment to be in this August, August 2026, and the next one will be in February 2027.

Companies that went through the first gauntlet, it doesn't mean that will they will win the the second or the third. Now, looking on what are the requirements on those program, and that's what I mentioned before, if you look on the Drone Dominance Program today, on the next gauntlet, on Gauntlet 2, they are requiring two main mission.

One is indoor mission, the other one is outdoor mission. The outdoor mission should be in EW-contested environment and should also operate for long distance.

They put there 20 miles the mission length of what companies need to achieve or to perform basically. Even further, if you look on the RFP or the RFI of this program, you will see specifically a line saying that the government expecting to have multithread network including LTE links.

That's obviously playing very very good into our hands, into our offering. Now, we do have the Halo, we do have the AURA.

We also working on on product that will be better fit for for lower-cost kind of product. We want We do want to maintain our our margins, so that will require require reducing capabilities, but we are working with those customers to be able to provide the right solution for this market.

I do want to say, and it's a super good point and and I want to mention it now, that we might see it as we might need to do kind of a loss-leader kind of approach saying that let's give those companies to start with the Halo with a better price, something that will help us to put foot at the door, but with the understanding that in the long term, that they will go to this with a new capabilities or new product that will maintain our margin. That's how we looking at today.

That's why I said that the Blue UAS came in the perfect timing for us. The submission are are just starting two days ago, the submission to for the second gauntlet that just started two days ago.

That's where we are focusing at the moment in the US market. Besides the Project GI that we have, besides the SOCOM interfaces that we have, the Drone Dominance Program is the is where we're focusing a lot of our effort at the moment.

It was a long answer for a short, sorry, a long answer for a short question, but I hope I address I address the point in in the questions. Yoav,

in the Q4 '25 presentation, I guess that's the last one, the commercial discussion segment of the pipeline showed $47.8 million, whereas in today's presentation, that figure is $40.6 million. Could you clarify the reason for this discrepancy?

Or is it the way that the figures are pronounced?

I want to point everyone to the notes in the bottom. The pipeline is cumulative.

The reason we changed from order backlog into actual revenue, it means that the bottom line of what you're seeing here, if you guys can see my screen, the bottom line of what you see here, part of it that was $22 million in the previous presentation. It means that $10 million went into revenue, the 40 here was actually 50 because of this $10 million.

These numbers are cumulative, okay? This number is as part of it.

That's what you see here on the notes on the bottom. That's how we explain.

All the numbers have increased. You can do the math afterwards or we can share the numbers, but that's how I explain that the difference, which looks like a decrease, but it's actually an increase of the numbers there.

I hope it was clear enough.

The actual pipeline has grown. I can see that the pipeline has grown from $137 million last quarter to $156 million.

Yeah,

$137 million to $156 million now.

Except the order backlog, all the four buckets on the top have increased in the last quarter. It means that we add net new opportunities, and we converted some of those opportunities down the funnel.

What's driving the top of the funnel expansion? Is it the expanded sales team, or are you seeing inbound interest as well?

It's a combination. It's definitely a combination of the two.

We are seeing a lot of inbounds. I was talking about the excitement and the traction that we are seeing coming from the market.

Example like yesterday of being included in the Blue UAS or having SOCOM OTA or all those progress that we're doing definitely creating inbounds. We also, like I said, we are seeing net new opportunities coming from a new executive sales teams that are actually already generating not only, by the way, pipeline opportunities, they already generating purchase orders, still small, but doing it in the first two, three months of your work as a salesperson, that's exceptional in many cases in our industry.

I'm not talking about B2C industries. We are feeling very comfortable there.

It's a combination of inbound and outbound activities that we're doing.

Yoav, I've got another question here about the numbers. I think you addressed part of this, but we'll go through it again.

Is there a seasonality in the quarterly numbers? Is Q4 the best quarter for the company?

You can answer that again. What is the impact on Elsight because of the conflict?

Speaking about the quarterlies, like you see, there is no real seasonality. You can see that the number are growing pretty steadily and we are expecting this trend to continue, okay?

That's why I was talking about before when I mentioned that many investors look at the defense market as a lumpy business that have programs and financial budgets and everything. The reason we can kind of create this trend line is because in most cases, we're not selling directly to government, we are selling to OEMs, and each one of those OEMs selling to multiple governments.

That's how we're showing this increase. Like I said, we are expecting to continue this increase over time.

In terms of the conflict, the impact of the conflict on Elsight, I would say that in short-term conflicts, it's not that defense forces are working or depending on new capacities coming from industry. They are prepared for short-term conflict, we're not seeing a surge in demand coming specifically because of the conflict.

On the other side, we're not seeing any impact on our supply chain or us being able to provide systems to our customers. What we do see as a result of those conflict is that basically there are new market that is being created because of what I mentioned during the presentation of the fact that governments today understand that unfortunately, in unfortunate circumstances, they need to build their own capacities or being dependent on themselves in a way.

That's definitely create a long-term impact on us. Again, unfortunate circumstances, but that's where we are and that's the impact that we are seeing.

I want to say, just to summarize my answer, it's not a direct impact that we're seeing, but it's a long-term impact that we are expecting.

Thank you. Now with the Platform OS and features such as non-GNSS positioning software, what does the pricing look like?

What estimated percentage of revenue contribution is this potentially going to deliver in 2027?

For those of you who want to deep dive into what the platform means technically and for customers, I can direct you for a great presentation of Roee Kashi, our CTO, co-founder and CTO. He did a great webinar couple of weeks ago, deep dive into what is the meaning of this platform and how we play into this platform, okay?

It's more technical. It's not an investor presentation by no means, but if you want to hear what is our assumptions, what is the thesis that we have, what is our direction that we're going from product perspective, how they're all connected and they're not siloed kind of product, they're all very much tightly connected, you can see everything in the presentation.

I don't want to spend time here on the technical aspect of it. From revenue perspective, like I said, we are focusing on increasing the recurrent revenue, the software piece, because it makes it easier for us to upgrade existing systems as well as creating new revenue stream coming from diversified sources.

When we're looking on the long term and how it will affect '27 and beyond, the non-GNSS is an example. If you look on the total addressable market of the non-GNSS positioning, that's alone billion-dollar multibillion-dollars addressable market.

I'm not saying that we will be there and we'll be meaningful player there, but over time, I do see how with our approach to this market, or our approach to this challenge, which is as big as the communication challenge, we will capture an interesting market share within this market and that will play directly into our revenue stream. If you ask me, it will come in the revenue layer of software and services.

It's not requiring any additional hardware as part of this offering. That's help us to go to, again, existing install base and net new systems that we're shipping to customers.

We soft launched the product in Q1 with design partners. Without giving away too much, can you share what the early feedback has been?

Because we have design partners, is that going to increase our chances of adoption with these existing customers?

100%. That's exactly what I said before.

The concept of go to market is first and foremost leverage existing relationship that we have, it'll be easier to get there. Also, taking those capabilities, because with some customers, they have a bigger challenge or a bigger pain in non-GNSS, some of them have bigger pains in communication, and others have pains in other areas.

What we want to have is we want to have this collective whole product approach, let's call it, that can solve all those pains together or can be modular. They can decide that they're taking the connectivity only, or the positioning only, or a combination of the two, or the video compression and everything, or the autonomy, and so on and so forth.

The model is kind of a modular model that every OEM or every end users can take what they need. We, in Elsight in general, and we were talking about it the other day, we are value-based, product-led company.

We don't want to sell product or features where nobody really needs them. We want to be value-driven because we believe that it plays very well in the long term.

It might affect the short term. There might be opportunities we can say, "Let's push 10 units.

Why only two?" Again, we're optimizing for the long term and not optimizing to what will happen tomorrow.

I think it shows very well in our numbers how this strategy in the long term creating a much stronger relationship with partners, how it create us their trusted advisers in many different areas, and how we can benefit from that on the long term.

Yoav, do you expect OEMs will produce and stockpile UAS ahead of firm government orders, or are all orders from the OEM tied directly to a given government program? No.

What we're seeing, and again going back to the Drone Dominance Program because it's a great example of this, we are seeing accelerating demand coming from government. It means that in the Drone Dominance Program, the companies need to show I think it's hundreds of units very quickly.

It means that they need to take the risk and put them on the shelf to start with to be able to provide the demand basically. Also in the long term, we are seeing that they are talking about big quantities.

Now, it's a question of which type of platform we're talking about. When we're talking about FPV, PBAS, again, what I mentioned, the small ones that we're talking about, the working capital investment is lower for the OEMs.

When we're talking about big platforms, the type two, type one, and others, this is where the investment is a little higher and that's where we're not seeing OEMs building inventory or capacities, but they are building per demand from the government. The answer is kind of split between the kind of platform that we are working on, or the customer is working on.

All right. Are there any other questions?

If you wanted to see that presentation that Yoav gave, that webinar, you will be able to look on our website and find the link. I think it's the AUSVEG.

Otherwise, you can contact me. You have my email on the company announcements and I'll help you find it.

If there are no other questions, I've got a couple of things here for everybody. Thank you, Yoav, first of all, for the presentation and for fielding these questions, and all of you, all our attendees, for your questions, your engagement, and your continued support.

On behalf of the board, I want to acknowledge this amazing team for what they've delivered this quarter and the previous quarters. A fifth consecutive record, Blue List approval at exactly the right moment, and real progress on the product expansion.

It's been a strong start to 2026. I encourage all of you to attend the upcoming AGM, read the notice of meeting, and if you agree, to indicate your support and what this team has done, vote in favor of the resolutions put forward to give the board and management a strong mandate to keep winning.

As always, if you have further questions, please reach out to us at [email protected]. Thank you, everybody.

Good afternoon, good morning, and good evening.

Thank you, Howard. Thank you for hosting it.

Thank you, everyone. Till the next time.