Good day everybody. Thank you again for taking the time with us.

This is the webinar of the second quarter financial statement of Next Vision. We just released a very strong result for the second quarter.

While putting the disclaimer, I will remind everybody about Next Vision. Next Vision is specializing in designing, manufacturing, selling, and supporting micro-stabilized, state-of-the-art solution for small platform.

The claim to fame of the company is the ratio between the size and weight of our solution and the performance, considered to be the best in the market, and when you compare apple to apple, you will find Next Vision solution cheaper than our competitor solution, and in a very high of reliability. We just updated Next Vision revenue goal for 2026.

It's the second time that we update from beginning it was $275 million, then we raise it to $315, and now, after getting some more orders from our customers, we update in the second time for $355 million revenue, meaning 111% growth from 2025. Next Vision, as I said all the time, is an R&D company.

It's the way we think and we act. We try to bring to the market new technology.

Every year we bring in between two to three new products. Usually, those products will be a game changer in the market.

We have more than 300 customers, western system providers that use Next Vision solution, and in the first half of 2026, we had some 150 customers that we call active customers that actually send us purchase orders and we supplied them with Next Vision solution. In the last five years, we had a growth of more than average 70%.

Next Vision consider to be a growth company. We have a very strong backlog that help us to get for those targets: $265 million backlog.

Usually, it will be a 12 months ahead backlog, and we still get orders for year of 2026. Usually, I would say that we see the backlog of the second quarter going a little bit down from other reports, and the reason for that will be that we are in the middle of the year, sending a lot of orders out of Next Vision, and this is the period in between getting the orders of 2026 and waiting for getting the orders for 2027.

We see high demand all over in the market, and for that reason we put a lot of effort to accelerate Next Vision capability or capacity of sending the products from our facility. We started 2026 with the capacity of 1,500 unit per month.

Now our capacity is more than 3,000 unit per month, and by the end of the year, we have the target to go over 5,000 unit per month. We are talking about the capacity from Next Vision facility.

We are working right now to have the capability to deliver Next Vision products out of Israel from local production, meaning having a production in Europe, and the next step will be the US and even India. As I said before, we consider ourselves as an R&D company.

We try to continue leading the market by technology and having this advantage of our competitor in the market. Today Next Vision solutions consider to be the best in the market, talking about performance, and those are three new products that we brought in the beginning of 2026, and I believe that we will publish new products that we will deliver by the end of the year.

The positioning of Next Vision today in the market is as the biggest and leading company in the market. We do that by four things.

One, of course, is our technology. The second is proven operational experience.

We delivered thousand of unit to the market and getting a very good feedback from our customers and trying to improve our products by getting this feedback from them. The production capacity of Next Vision is I would say we see ourselves today in the market as I would say maybe the only company that actually can deliver the demand or the huge demand that we see in the market.

We talked about the quantities, and we are trying to get the quantity to 5,000 unit per month by the end of the year. The financial strength of Next Vision: Next Vision make a lot of money.

We raised more than $414 million in the global offering, and that's enable us to hold a high volume of inventory in the company. The reason is because of the supply chain problems that we see in the market.

It's important to understand this is not Next Vision problem, this is the market problem, and we see it all over, and Next Vision dealing with that by two ways: one, we try to have at least or more than two suppliers for every component that we need, if we had any problem with one of our suppliers, we will have other suppliers that can support us. Usually, we will have between two to five different suppliers in different geographical locations.

The second option to deal with those problems is to hold high volume of inventory. Next Vision, for those components that we have only one supplier, usually will hold in between 6 to 12 months inventory just to make sure that we can actually cover the supply chain problems.

About the market: we see a huge demand, and we talked about the quantities. We see a very high volume of budget that is really in the market right now.

We see it all over. In the US, talking about getting the budget for the aerospace and defense from $1 trillion to $1.5 trillion, $55 billion going to the autonomous system itself.

In Europe, of course, getting to the budget to the aerospace and defense from less than 1% to 5% of the GDP, and they just declare that in most of the countries they are already getting to 4%. Adding to that in Europe, they just released a loan of €90 billion to the Ukraine that put a lot of pressure in the market, and we see that as an orders coming to Next Vision.

Let me add to that two more markets that we see a huge demand and a lot of budget coming from there: one is the Japanese market, they actually double the budget of the aerospace and defense for the second time, and a second area is India. We see actually and start getting large orders from India, and we see a huge potential getting from this country.

About our global revenue of Next Vision, we see a huge demand all over. In this quarter, we see, I think, one of the outcomes of the release of the loan to Ukraine is that we see the European revenue going up, but still we see a huge demand all over the globe.

Alex, let's go for the financial statements. Sorry, go ahead.

Yes. Regarding the financial highlights for H1 2026: so we end up for the first six months of '26 with $155.5 million compared to $73 million over the six months of first six months of 2025, which shows an amazing increase of 112% over over the period.

Now, regarding our R&D expenses, although you see $3.6 million dollars, it's important to remember that part of our expenses are being capitalized and then depreciated. The gross R&D expenses were around $6.5 million for the first six months, into comparison for $3.7 for the six months of 2025.

Now, also important to take a focus on the operating profit and especially the operating profit margin. If we go back to Q4 2025, we can see that the revenues ended up for $47.8 million, and the operating profit margin was around 57%.

Now, jumping forward two quarters to Q2, we can see that we almost doubled our revenues, but the margin of the operating profit remained almost the same, if not even a little bit better. Why it's important?

It's important because we see that there is a slight decrease in the gross profit margin, but we can see that the expense structure of Next Vision supporting the bottom line of the operating profit, which allows us to remain in the same areas. Now, another important to mention is the OCF, very, very strong OCF for the first H1 of 2026, for over $75 million, which supports our our cash balance of over $590 million.

Thank you, Alex.

Next Vision is a growth company, and as we can see, we still grow and extend the targets for 2026 to further grow the business and the capabilities of the company. Nevertheless, we also invest heavily on the endeavor to make a strategic procurement, meaning adding additional capabilities and businesses into Next Vision.

We definitely going to report some more about that as the time progress and we are able to complete a transaction. There are several candidates in the pipeline, and like said, we invest great amount of time of the management in reviewing, in the due diligence, and in doing the effort to locate some more and being able to close the deal.

Besides of that, we continue to invest inside the company, first and foremost in the ability to sustain the internal growth of Next Vision sales, and where it boils down to the ability to overcome the hurdles in the supply chain challenges that there are in the market, and being able to supply with our customers the amazing and growing need for more and more items from Next Vision, where we are standing now in a point where we are supplying over 3,000 cameras per month, and we would like to extend that to over 5,000 cameras per month by the end of the year. Now, in order to sustain that, we heavily invest both in personnel and in the inventory.

Summing it all together, we get to the point where we increase the target for 2026 to maintain the growth of the company, and we do expect that to continue into 2027 and the further years. There were some questions raised that we would like to address.

First, about the competitive landscape, what do we see? First and foremost, Next Vision maintains its leading role.

We don't see that this is being put under danger. We see that there are some new small companies that try to make offering to the market, but when it comes to comparing the offering to what Next Vision has to offer, then we see that Next Vision will continue to lead the market and maintain the gap it has, which relies not only on the technology of Next Vision, but also on the capability to supply and sustain the huge demand in the market.

Another question that we had is about the activity in Europe. We have already started to do some manufacturing in Europe, but we are going to further increase that and being able to make sales from Europe, meaning that units will be manufactured in Europe and will be supplied from Europe without going through Israel.

This will not only support growth of Next Vision, but it will also help to down the pressure on Next Vision's facility in manufacturing more and more, meaning we will be able to have a better balance between what we will manufacture in Israel and we manufacture in Europe, which will further support the continued growth of Next Vision sales. Another question is where the market is heading in terms of the size of the orders and the further acquisition.

What we see all over is that the size of the average deal is growing, meaning that the technology is being further communalized and being further assumed by more and more players, where each player that we supply to increase the average order that it's providing to Next Vision. We do see that this trend will move on, meaning that the advantage that Next Vision provides when it comes to large orders and the ability to supply large orders will continue to further benefit Next Vision as the average order size continue to grow.

It's definitely put an effort on Next Vision in order to increase the production capacity, both in Israel and outside of Israel, and the ability to hold inventory in order to sustain this growth. There is another question about the gross margin and what further goes with the gross margin, where is it heading?

We see several factors here. As the average order size being growing, this in return makes the average selling price lower.

On the other hand, with much larger orders, we are able to benefit from better pricing from our suppliers. Now, we always factors these two negative forces, and sometimes it reduce the gross margin and sometimes it increase the gross margin.

It's not clear what's going to be further ahead. One thing is clear: as a company, we strive to increase our market share and being able to cater to as many customers as possible.

Now, we factor that in as well. Furthermore, when you review the financials of Next Vision, you find out that the operational margin and the bottom line are still maintained very high and healthy.

Also, the generation of cash in Next Vision continue to be very healthy. Last and not least, we still use our technology expertise in order to be able to replace items that become more expensive with lower-cost items.

There is always the question about the expectation to 2027 and further on, 2028 and 2029. Next Vision is a growth company.

We are being valued according to the growth that we show, and we definitely, with what we have provided to the market today, it's definitely show the growing capability of the company. Now, we are now working with our customers in order to make and close deals for 2027.

Now, it's important to note that some of our customers still have demand for 2026 that haven't put as orders yet, as they are orders in progress. We are on a point where some of the customers still have demand for 2026 that hasn't been converted into orders and it's in progress to being converted into orders, and with some of the customers we do work on the orders for 2027.

We do see a healthy growth for 2027 and we do expect growth in 2027 as well. As about the quantification of this growth, it is still early to refer to that.

Further, it is important to bear in mind that Next Vision is heavily investing its time and effort into acquisition effort, and we definitely sure that this acquisition will also support the growth of Next Vision and will further accelerate that. We see plenty of opportunity ahead where we leverage on what Next Vision has achieved so far.

We see competition in the market, but we see that we maintain the gap as a company, and we are standing able to win new businesses even with the competition in the market. To summarize what we have seen so far, we are quite thrilled and we anticipate for both completing year of 2026 while being able to address the target that the management was presented with by the board of directors, and we are excited about what the future, and definitely 2027, lies ahead in terms of what Next Vision, we will be able to do and demonstrate to the market.

We are very happy with the results and the ability to share with you the results of the second quarter. They are amazing results, which also solidify the capabilities and the leading position of Next Vision.

I would like to thank you all for joining us. I would like to thank Chen and Alex for presenting Next Vision for this quarter, and we definitely look for our following calls where we are pretty sure that we will bring some more good news and great results for your knowledge.

Thank you very much, everyone.

Thank you very much.