ODYS · Odysight.ai Inc.

Odysight.ai's Q1 2026 results reflect a sharp decline in revenue to $82,000 from $2.1 million in the same quarter last year. The prior-year period included a $1.7 million contract liability derecognition from a Fortune 500 medical customer, which did not recur. Additionally, the company cited delays in purchase order execution due to geopolitical tensions in Israel and the U.S., where defense partners prioritized mission-critical activities. Management views these delays as temporary, expecting orders to convert in the coming months and revenue to be weighted toward year-end. Gross margin held steady at 26%, indicating stable product economics despite lower volume. Operating expenses rose to $5.4 million from $5.1 million, driven by global sales expansion, share-based compensation, and the strengthening of the Israeli shekel. Net loss widened to $5.2 million from $4.3 million. The company ended the quarter with $21.8 million in cash and no debt, and a backlog of $14 million, providing revenue visibility. Key strategic developments include pilot orders from a major defense customer for helicopter and weapons system monitoring, a CRADA with the U.S. Navy, a partnership with XP Services for Black Hawk helicopter testing, and a commercial collaboration with GACI Technologies for the French market. Management expressed confidence in achieving 2026 business targets, citing strong underlying demand and operational momentum.