Good day, afternoon everybody. I would like first of all thank you all for taking the time with us.

My name is Chen Golan, Chairman of Next Vision. With me here is Alex Lavie, the CFO of the company.

We're missing today Michael Grossman, the CEO, is on his way to the AUVSI Xponential, you will have to stay with us only. I will start with the disclaimer for the webinar and we will continue.

We're going to go through the first quarter financial statement. I would like to start with highlight some main issues.

We just update Next Vision target, the revenue target for 2026. It's 87% growth compared to 2025.

We started with $275 million as a target, and now we update 15% more up to 315 because of the demand and the budgets that we see in the market. The order backlog of Next Vision, even though we managed to deliver more than $67 million at the first quarter, we still have the same backlog of $289 million.

I believe we will see in the near future this backlog can go up. Another thing that we just done, we update the target for the capacity of our assembly line.

We put a target of more than double of what we can do right now, meaning by the end of the year we are expecting to have the ability to deliver more than 5,000 unit per month by the end of 2026. Just for those that not really remember what Next Vision is doing, Next Vision, we are selling stabilized video solution for our customers, the system providers.

The claim to fame of the company is the ratio between the size and the weight of our solution and the performance considered to be the best in the world. When you compare apple to apple, you will find that Next Vision solution is cheaper than our competitor solution and in a very high of reliability.

We give the whole solution, meaning we give the cameras themselves, we give the accessories that helped to do the mechanical integration very fast, and the video processing unit that make our solution to be plug and play for all the systems that are right now in the market, and gives us some or gives our customers some other capabilities like video compression, tracker—we have what we call smart tracker, considered to be one of the best tracker in the market—AI capabilities like detectors, and some other capabilities like geolocation. With all what we give our customers, they get the best solution in the market, and they can do the integration very fast and make the time to market very short.

We consider ourselves as an R&D company. This is the DNA of the company.

This is the way we think and act. We try to bring to the market every year in between two to three new products.

Usually, those products will be game changer in the market and will continue to help us to be the leading company in the market. The position of Next Vision as the leading company in the market is based on four things.

One, of course, is the technology. We consider to be the—to have the best solution today in the market.

The second will be the proven operational experience. We deliver for the last five years average of more than 1,500 unit per month.

They are being used in every conflict that you hear in the globe, we get a lot of feedback from our customers. They are saying that Next Vision's solution considered to be the best solution in the market.

We have today the capability to deliver the market demand, and I would say that we might be the only company today in the market that can deliver those quantities. Next Vision deliver today more than 2,500 unit per month.

By the end of the first half of the year, we will be in more than 3,000 unit per month, and we just update from 4,000 unit to be more than 5,000 unit per month capability. Adding to that, we just started to build the option to assemble some of our unit in Europe.

We started that before the war, and because of the war we stopped, and we're going to continue doing that in the near future, we have another capability to assemble some of our solution in Europe. I believe in the future we will continue do that in the United States and other areas that this thing will be need.

Today, when we see the huge quantities—I would say maybe mega quantities—in the market, we are, we are the only company that actually managed to deliver those quantities. The last will be our financial statement, sorry, financial strength.

Next Vision have a lot of cash. We hold a high volume of inventory.

Today, with the problem that we see in the market in the supply chain, there are two way to deal with that. One is to make sure that you have more than two suppliers for each component that you are using.

For those components that you don't have the option to have more than one, we will usually have inventory in between 6 to 12 months. That, will help us to continue deliver to our customers, even we will meet with some problems in the supply chains, and there are a lot—today there are a lot problems in the supply chain.

About the market, as I said before, the numbers that we see today are huge numbers. We never saw those numbers in the past.

The budgets that we see, it start from the US updating the budget of 2027 to $1.5 trillion, $55 billion only for autonomous systems, and Trump talking about buying more than 1 million drones. This is huge number, and I don't think that we need, to see only the number.

I think that show the state of mind and the understanding of the use of drone and UAV in the modern war. In Europe, getting to 5.5% of the GDP going to the aerospace and defense, and NATO to be command to defense spending by—until the 2035.

We see a lot of money in the market, and adding to that, the demand position Next Vision as the biggest supplier in the market, launching thousand of unit per month. Another thing about Europe is that we just heard about, the releasing of the $9 billion loan for Ukraine, and that's push the demand of 2026 and 2027 to another level.

About the spread of our sales in the world, we declare in the beginning that we see the biggest opportunity or the biggest market in the US. Although we see today the growth all over, we see the biggest rate of growth in the US, getting to 31.9% in the first quarter.

Europe stay still as a leading with the 54.2%, but I believe that what we will continue to see in the near future is the highest rate of growth in the US, and those numbers to be matched in the near future. Here are some of our biggest or leading customers in the market: in the US, you can see Anduril, PDW, and BRINC; in Europe, Quantum and Sky-Watch; and in Israel, some of the leading industry companies, Elbit, Aeronautics, and IAI.

We have some more big companies joining Next Vision, starting to build the vector. You don't start day one with 1,000-unit orders, they start building themselves, and we see them joining the leading biggest company of Next Vision customers, sorry.

About this slide, I think this slide speaks by himself. The numbers, you can see the growth in every section, and we will continue.

About the capacity, we are using right now three floors of this building. We have the option to get two more if we need.

We expanded from 3,000 square meter to 5,000 square meter, building the area of production to support the target of more than 5,000 unit per month. We actually open academy for new workers for the production line, and we are recruiting in between three to five new employees every week to the company.

The number, I spoke about them: today 2,500, by the end of the first half it will be more than 3,000, and by the end of the year we will be able to deliver more than 5,000 unit per month. I spoke already about the inventory.

Alex?

Let's go through a bit of the Q1 2026 financial highlights. The revenues summed up to $67.4 million, which represent about the 86% increase against the parallel quarter.

The gross profit is around 67.2%, which is quite similar to the gross profit of the end of 2025, meaning Q4 2025, which was 66.9%. Now regarding the R&D expenses, you can see that there are $1.8 million R&D expenses, but I remind you that part of our R&D expenses have been capitalized into an intangible asset.

If we will take a look at the bigger picture, it's around $3.3 million during Q1. Now regarding the G&A expenses, which was a bit higher than usual, it's important to remind that under the compensation policy, some of Next Vision top employees are entitled to a bonus payment upon reaching certain criteria, certain net profit.

We accrued the entire amount of this bonus in the Q1, the G&A expenses are a bit higher, but during the next few quarters it will go down. We finished up this quarter with a 56.8% net profit, which is very similar to Q1 2025.

Now regarding our main points from our balance sheet, you can see that our inventory, as Chen said, is around $62 million. It should support our production efforts during 2026 and part of 2027.

You can see the accounts receivable grew twice to $26 million, which of course it's a higher number, but also the revenues gone up, doubled the same. Another important thing to note is that the cash flow from operating activity is more than $31 million only in Q1.

That's it.

Thank you, Alex. About the strategy of the company, we see right now three main issues that we are putting a lot of efforts for them.

One is as an R&D company bringing new products with new technology to continue support the positioning of Next Vision as a leading company in the market. Second, it will be to make sure that we manage to support the demand that we see in the market.

We talked about the numbers, and going from 2,500 unit to more than 5,000 unit per month, it's a something that I think that you do in a very accurate way. You don't just recruit people.

You have to make sure that the production line will work good and you won't have any problem with their products. The last thing it will be, we are having a very high growth in the company.

For the last five years, we had a growth of more than 70% by average of the revenue. We understand that to continue to be a growth company in the future, we need to support that with some M&A.

We just recruit Chief Business Development and M&A to the company, and with her together we will continue working on the pipeline that we just have of some companies that we are checking. Hopefully, in the near future, we will manage to close a deal.

The main issue is to target the right company, and we put a lot of efforts for that. That's for now.

Alex, let's start with question and we will answer some questions that we have.

The first question is what is the average backlog duration today? Now, from the $289 million backlog, most of it is within the close 12 months.

There are also part of the backlog for 2027, 2028, and 2029, but most of it is for the next 12 months. As the company works with a larger strategic customer, do you expect this to have an impact on gross margins?

Now we said before that we feel comfortable in the area of the gross margins of around 65% to 72%. We believe that even with the larger strategic customers, which we have also today, that most of our revenues from larger strategic customers, and we also see now the impact, and we still believe that we will remain in those areas.

We're doing everything we can to get better and improve the 60—at 67% to get higher, but we are safe to say that we are staying around those areas.

There is a question about the production line in Europe. For now we cannot give some more information about that, but as I said, we already started to work there, and I believe when we will open the production line over there, we will announce it and we'll give all the information for everyone.

Does the US demand carry a different gross margin profit than Europe? No.

The US and the Europe or let's say all the customer of Next Vision get the same prices. We didn't take the prices up for the last five years.

We are working very hard to try and maintain the gross margin. We don't see for today any reason for the gross margin to be change.

It will stay in between 65% to 72%, and I don't see for now any reason to the number to go outside from this range. See last question, I think.

The question is can existing cameras be upgraded through firmware, AI, optics, or compute? Hopefully I understand the question, but the cameras can be upgraded, and we are doing that for some of our customers.

Usually, once a customers chosen camera, or let's call it the solution, usually we don't do upgrades, but it's possible and if needed, we can do that. That's all.

Do we have another one? Let's see.

About the M&A, if we are planning to do that in the US, meaning buying a US company. In the beginning, we thought about only to buy a US company, but we open it for every country.

The main issue is here to find the right company, and it doesn't matter where it will be. It can be an Israeli company, or US company, or European company.

We didn't spoke about that, I will try to explain. Next Vision today deliver our solution for more than 300 Western system developers.

We supply for them, for those customers, the video solution. They buy from other the communication, they buy the energy, the batteries and handling the energy, they buy AI capabilities to make their system autonomous, they buy working station.

All of those companies are a potential companies for us to buy, because we have a high synergy between what they are doing and what we are doing. I think the best way to explain it, it will be by a communication company.

Every drone have communication and need to use communication. If we will find the right communication company and we can buy it and do the integration of the video with the communication and sell it to our customers as a bundle, I believe that they will prefer to buy the communication from us and not from another supplier.

That's the way we think. Another option for us for looking for the right company will be maybe finding a company that can make big gimbals.

Next Vision doing only small gimbals in between 115 g to 2 kg. Buying a company that can do big gimbals, we can control all the range and sell from the smallest one to the biggest ones.

Same for maritime solution gimbals and ground gimbals. Those are potential companies that we are looking for, and as I said before, we have some companies in the pipeline that we are right now checking, and hopefully we will come with a good news about that.

No more questions? Again, thank you all for having the time with us, and I believe we will meet you again in the next quarter financial statement.

Thank you. Bye-bye.

Thank you.