DUKE Robotics Corp.

Performance Summary

DUKE Robotics Corp. reported FY 2025 revenues of $377K, representing a 249% increase from $108K in FY 2024. This growth was primarily driven by the expansion of IC Drone service operations following the successful launch of the full cleaning season in May 2025, compared to mid-season commencement in 2024. The company also recognized initial royalty revenues from sales of the 'Bird of Prey' stabilized weapons drone system through its collaboration with Elbit. Despite revenue growth, net loss widened to $1.2M from $985K in the prior year, representing a 26% increase in losses. The company reported a gross profit of $179K, up from $37K in FY 2024, with gross margin improving to 47.5% from 34.3%.

Revenue Analysis

Revenue growth was primarily attributable to expanded IC Drone service operations with the Israel Electric Corporation (IEC), which committed to a minimum utilization level with guaranteed payment in the low seven figures (in NIS) during the first year of their August 2024 agreement. The IEC satisfied this minimum utilization commitment and extended the agreement for an additional year in May 2025. Revenue also included initial recognition of royalties from sales of the 'Bird of Prey' defense system through the Elbit collaboration. The company noted that revenue growth was partially offset by temporary disruptions during Q3 2025 due to ongoing military operations in the Gaza Strip.

Margins & Profitability

Gross margin improved significantly to 47.5% in FY 2025 from 34.3% in the prior year, reflecting operational efficiencies in IC Drone service activities. Cost of revenues increased to $198K from $71K, primarily due to growth in service activities. Research and development expenses decreased to $104K from $157K as the company allocated more resources to execution of IC Drone service activities. General and administrative expenses increased to $1.3M from $905K, driven by higher professional services costs related to expansion in Greece activities, officer compensation expenses, and increased stock-based compensation of $224K compared to $28K in the prior year.

Cash Flow & Balance Sheet

The company's cash balance decreased to $750K as of December 31, 2025, from $1.3M at the end of FY 2024. Net cash used in operating activities was $811K, compared to $918K in the prior year. The company used $205K in investing activities for property and equipment purchases and received $475K from financing activities through a PIPE agreement. Total assets stood at $1.2M, with current assets of $907K and total liabilities of $1.1M. Stockholders' equity was $100K, with accumulated deficit of $12.4M. Working capital was $151K, down from $1.0M in the prior year.

Outlook

Management expresses substantial doubt about the company's ability to continue as a going concern, stating current cash on hand will not be sufficient to fund projected operating requirements for the next twelve months. The company expects to need additional financing to continue operations and plans to seek capital through debt or equity issuance. Strategic priorities include expanding IC Drone service offerings to additional utility providers worldwide, developing AI-driven monitoring solutions, and growing defense market revenues through the Elbit collaboration. Key risk factors include dependence on government contracts, Israeli export control regulations, geopolitical instability affecting operations in Israel, and limited operating history with generated revenues.