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DATE

Thursday, April 23, 2026 at 9:30 a.m. ET

CALL PARTICIPANTS

  • Chief Executive Officer — Fabien Haubert
  • Chief Financial Officer — Alicia Kelly

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TAKEAWAYS

  • Annual Revenue -- $36.4 million, a 2% increase, attributed to North American growth in corrections and energy.
  • Full-Year Gross Margin -- 65.5%, up from 64.1%, due to balanced product mix, product redesigns, and efficiency gains.
  • Annual Net Income -- $3.2 million, or $0.14 per share, up from $2.6 million, or $0.11 per share.
  • Q4 Revenue -- $8.8 million, a 14% decrease, with drivers including government project timing delays and a nonrecurring European project.
  • Q4 Gross Margin -- 61.5%, down from 64.5%, mainly from less favorable product mix and tariff impacts.
  • Q4 Operating Loss -- $159,000, compared to $1.5 million operating income the prior year, caused by lower revenue and higher G&A expense.
  • Q4 Net Loss Attributable to Shareholders -- $33,000, or $0.00 per share, versus net income of $1.6 million, or $0.07 per share, previously.
  • Cash and Equivalents -- $22.5 million as of December 31, 2025, an increase from $20.6 million, with zero debt at year end.
  • LiDAR Sales Growth -- “strong growth in LiDAR-related sales and activity,” primarily in the fourth quarter, with management citing “no cannibalization effect”.
  • Canada Performance -- Quarterly revenue up over 110% and annual revenue up 22%, led by corrections and utilities.
  • Asia Pacific Q4 Growth -- 21% quarterly revenue increase, despite an annual decline due to a prior nonrecurring project.
  • Blickfield Acquisition Impact -- Headcount increased by 28 to approximately 160, with expectation of “positive synergies” and expanded addressable markets, especially in LiDAR and traffic applications.
  • Operating Expenses -- $5.6 million in Q4, up from $5.1 million, with a 30% increase in G&A attributed to Blickfield transaction costs.
  • U.S. and LATAM Q4 Revenue Decline -- Regional revenue down 20%, attributed to delays following the U.S. federal government shutdown; projects are still active and expected to convert in the future.
  • EMEA Q4 Revenue -- Declined 24% due to the absence of a large nonrecurring telecom project from the prior year; management expects project phases to recur in 2026.
  • Product Pipeline -- Management repeatedly described an “expanding pipeline” across key verticals and geographies, with confidence in converting activity to revenue.
  • Q4 EBITDA -- $35,000, versus $1.6 million in the prior year quarter.
  • One-Time Government Subsidy -- Received in Q4 for AI development, offsetting R&D investment.

SUMMARY

Management outlined LiDAR as a strategic growth driver, expanding Senstar Technologies’ (SNT 2.32%) addressable market through both security and non-security applications. The company completed the Blickfield acquisition, entering new verticals such as traffic and volume monitoring, and expects further global expansion with minimal incremental investment. Pipeline strength was cited repeatedly, as management emphasized enthusiasm for conversion of delayed U.S. government and EMEA telecom projects in 2026. Disciplined cost management and zero debt position the company to weather timing-related disruptions. Senstar Technologies highlighted the absence of major lost or cancelled projects, affirming demand resilience and market opportunity.

  • Fabien Haubert stated, “LiDAR within our current verticals increases the addressable market tremendously,” and detailed volume monitoring and traffic as a “strong path for growth.”
  • Alicia Kelly confirmed, “we incurred costs through 2025 for Blickfield, and we expect that there will be some costs still in future periods, but not substantial.”
  • Fabien Haubert directly addressed project delays, saying, “All of them are moving forward. The ones we identified are still alive and working, and we have good hopes to convert some of them in the quarters to come. I want to be careful because you can never predict against another shutdown or other macro events, but those projects are still active. We are still working on them with the operational entities of the customers, so we did not encounter major losses or cancellations.”
  • Management noted receipt of a one-time government subsidy to support AI innovation efforts.

INDUSTRY GLOSSARY

  • PIDS (Perimeter Intrusion Detection Systems): Electronic security systems designed to detect unauthorized movement at or near the perimeter of a protected area.
  • LiDAR: Laser-based sensor technology providing 3D spatial mapping, increasingly applied in security, industrial automation, and traffic monitoring.

Full Conference Call Transcript

Fabien will summarize key financial and business highlights, followed by Alicia, who will review financial results for the fourth quarter and full year of 2025. We will then open the call for a question-and-answer session. I would like to remind participants that all financial figures discussed today are in U.S. dollars, and all comparisons are on a year-over-year basis unless otherwise indicated. Before we start, I would like to point out this conference call may contain projections or other forward-looking statements regarding future events or the company's future performance. These statements are only predictions, and Senstar Technologies Ltd. cannot guarantee that they will, in fact, occur. Senstar Technologies Ltd. does not assume any obligation to update that information.

Actual events or results may differ materially from those projected, including as a result of changing market trends, reduced demand, the competitive nature of the security systems industry, as well as other risks identified in the documents filed by the company with the Securities and Exchange Commission. In addition, during the course of the conference call, we will describe certain non-GAAP financial measures which should be considered in addition to, and not in lieu of, comparable GAAP financial measures. Please note that in our press release, we have reconciled our non-GAAP financial measures to the most directly comparable GAAP measures in accordance with Reg G requirements.

You can also refer to the company's website at senstar.com for the most directly comparable financial measures and related reconciliations. And with that, I would now hand the call over to Fabien. Fabien, please go ahead.

Fabien Haubert: Thank you, Corbin, and thank you to those joining us today to review Senstar Technologies Ltd.’s fourth quarter and full year 2025 financial results. We continue to deliver solid full year performance with growth in revenue, margin expansion, and continued profitability. In 2025, revenue was $36.4 million, gross margin expanded to 65.5%, and we delivered net income of $3.2 million while maintaining a strong balance sheet with $22.5 million in cash and no debt. Those results reflect steady demand across our business and the strength of our operating model. Importantly, revenue from our core verticals grew 5% for the year, supported primarily by continued strength in corrections and energy, particularly in North America and EMEA.

The performance reinforces the resilience of our business and the relevance of our solutions across critical infrastructure markets. Moving to the fourth quarter, we encountered more challenging conditions than anticipated. Revenue declined 14% year over year to $8.8 million, which also impacted margins in the quarter. The fourth quarter was impacted by several nonrecurring and timing-related factors, not a change in the underlying demand. Those factors include delays of government projects, mainly in the U.S. corrections vertical following the U.S. federal government shutdown, and a nonrecurring European telecom utility project, which will convert to further revenue generation in 2026. Most of these projects have shifted into 2026 and later periods.

This gives us confidence in the strength of our pipeline, which continues to grow, and the overall demand environment, as reflected in our full year results where our core verticals grew by 5% despite the fourth quarter timing impact. Looking more closely at our verticals, we continue to see meaningful opportunities across data centers, energy, utilities, corrections, airports, and solar farms. These key verticals are increasingly focused on security and operational intelligence, which aligns well with our technology and capabilities. Our strategy remains focused on repeatable deployment and scalable account expansion, where we can leverage our installed base and deepen relationships with key customers over time to cross-sell our advanced technology solutions dedicated to demanding verticals.

On the technology front, 2025 marked a breakout year for LiDAR adoption and customer engagement across multiple verticals, with LiDAR increasingly deployed alongside our perimeter intrusion detection solutions, with no cannibalization effect. This has translated into strong LiDAR sales growth, mainly in the fourth quarter. This is an important distinction, as LiDAR is expanding our target market, creating new use cases across virtually all our verticals and enabling Senstar Technologies Ltd. to address a broader range of customer applications. We saw strong growth in LiDAR-related sales and activity with continued momentum and solid pipeline creation.

Customer acceptance of LiDAR for both security and operational applications has accelerated dramatically, driving robust pipeline expansion within this strategic initiative, complementing and enhancing our unrivaled PIDS and software reach. Our 3D LiDAR technology in security applications does not compete directly with our core fence and buried detection solutions, but with alternative technologies such as thermal cameras, video and analytics, radar, 2D LiDAR, and others. It also addresses further surveillance needs for several other critical points within our vertical markets, expanding considerably our addressable market and customer use cases. Our acquisition of Blickfield, completed in 2026, represented a transformative step to enhance our competitive position and capture share of this rapid growth market.

Our expectation for accelerated growth globally, without requiring significant investment, is supported by maximizing our unrivaled global sales and technical footprint across our current vertical markets to disseminate this groundbreaking technology. On top of that, Blickfield offers high growth perspectives in volume monitoring and traffic applications, where Blickfield has already developed a footprint. Turning to our geographic performance, the U.S. and LATAM remained our strongest markets for the full year of 2025, with solid contribution from corrections and energy. Throughout 2025, we secured important new wins across healthcare, utilities, oil and gas, and energy, while data centers, airports, and increasingly LiDAR continue to generate meaningful pipeline creation.

Revenue from the U.S. and LATAM region increased 5% for the year but declined by 20% in the fourth quarter due to government funding delays following the government shutdown. Encouragingly, most of those projects are still alive, and we have seen some positive activity in support of our view that this was largely a timing issue. Canada was a standout performer, returning to growth, with over a 110% revenue increase in the fourth quarter and 22% for the full year, driven by strong wins in corrections and utilities. Our methodical investment in the EMEA region over the last several years is positioning Senstar Technologies Ltd. to capture new opportunities with key accounts in targeted verticals.

The region delivered low single-digit revenue growth for the year, reflecting underlying resilience and continued customer demand, though the fourth quarter was impacted by difficult comparisons related to a large-scale nonrecurring utility telecom project in the prior year, which is expected to deliver revenue in 2026. We secured major wins in solar farms, energy, data centers, corrections, and airports, and together with strong pipeline creation, we have renewed conviction behind the region's growth prospects in the coming quarters. We are encouraged by the steady demand we see in the region, supporting a robust pipeline and favorable growth outlook. The EMEA region is experiencing a significant increase in requests for LiDAR applications as well.

In Asia Pacific, performance improved in the fourth quarter with 21% growth. On an annual basis, Asia Pacific declined 9%, reflecting the impact of a material nonrecurring project in Q2 2024. We are optimistic about recent wins and continued pipeline development for the key verticals, including solid wins in data centers and corrections, serving as a great source of momentum for quarters and years to come. Across all regions, our business development strategy is gaining traction. We are expanding our presence at key accounts, increasing cross-selling opportunities, and building a more diversified and resilient revenue base. Together with Blickfield, we also secured several promising projects across military and government, airports, corrections, and data centers.

Looking ahead to 2026, we are enthusiastic about the opportunities in front of us. We are seeing continued activity across data centers, utilities, energy, and LiDAR, supported by a growing pipeline. Our business development strategy is centered on high-growth verticals, an appetite for complexity, opportunities for scalability worldwide, and leveraging our preexisting footprint. Senstar Technologies Ltd. is making inroads with new key accounts and deepening existing customer relationships. Our pipeline is growing, further supporting improved market penetration and enhanced revenue diversification. The addition of Blickfield to our current portfolio will further assist us in expanding our range of solutions and addressing more security and non-security applications in our current targeted vertical markets.

We are also substantially broadening our current addressable market and strengthening our ability to successfully approach verticals in which we were not historically present. Importantly, Senstar Technologies Ltd. will actively support and further develop Blickfield's efforts to expand their position in volume and traffic monitoring applications, which are extremely attractive markets combining vertical excellence, high growth, margins, and worldwide scalability. We will work together with Blickfield to develop positive synergies with the whole group to accelerate its growth. We entered 2026 with an expanding pipeline and are focused on converting that activity into revenue. At the same time, we remain disciplined with cost, ensuring we balance investment in growth with continued operational efficiency.

In summary, we enter the new year with a strong balance sheet, steady demand across our core markets, an exciting pipeline, and an enhanced technology portfolio. Our focus is on execution: converting our pipeline into revenue, expanding within key verticals, and driving sustained growth over time. Before turning the call over to Alicia, I would like to thank our employees for their continued dedication, our customers for their trust, and our shareholders for their ongoing support. I will now turn the call over to Alicia for a review of the financial results in more detail.

Alicia Kelly: Thank you, Fabien. Our revenue for the fourth quarter of 2025 was $8.8 million, which compared to $10.2 million in the year-ago quarter. This year-over-year reduction is related to nonrecurring project timing and delays in government projects following the federal government shutdown in the U.S., positively offset by stronger performance from the energy vertical. The Asia Pacific region was the strongest performing geographic region in the quarter, with revenue increasing 21% year over year. Growth in the region was fueled by steady demand in data centers, utilities, and healthcare. Revenue from the U.S. and LATAM declined by 20% in the quarter.

As Fabien commented, the performance in the U.S. was impacted by challenging market dynamics, including the delays in government projects following the federal government shutdown. Canada delivered a positive offset to performance in North America in the quarter, with revenue increasing by 110% versus the fourth quarter of last year. The EMEA region declined by 24% in the quarter due to a challenging year-ago comparison, which included a large telecom project in 2024 that did not reoccur. The quarter included contributions from the government, airports, corrections, and data center verticals.

The geographical breakdown as a percentage of revenue for the fourth quarter of 2025 compared to the prior year quarter is as follows: North America, 44% versus 42%; EMEA, 41% versus 46%; APAC, 15% versus 11%; and all other regions were immaterial for both periods. Fourth quarter gross margin of 61.5% compares to 64.5% in the year-ago quarter. The variation in gross margin is primarily the result of less favorable product mix, in addition to tariff impacts associated with a U.S.-based project, lower revenue, and overhead expense cadence. Our operating expenses were $5.6 million compared to $5.1 million in the prior-year fourth quarter and represented 63.3% of revenue versus 50.2% in the year-ago period.

The increase was primarily driven by G&A expense growth of 30% due to the transaction costs associated with the Blickfield acquisition. As a positive offset to the research and development investments, we were awarded a one-time government subsidy for our AI development initiative, validating our innovative technology solutions. Operating loss for the quarter was $159,000 compared to operating income of $1.5 million for the fourth quarter of last year. Operating loss for the quarter was primarily driven by revenue declines and higher G&A costs. The company's EBITDA for the fourth quarter was $35,000 compared to $1.6 million in the fourth quarter of last year.

Financial loss was $150,000 in the fourth quarter of this year compared to financial income of $463,000 in the fourth quarter of last year. This is mainly a non-cash accounting effect we regularly report due to adjustments in the valuation of our monetary assets and liabilities denominated in currencies other than the functional currency of the operating entities in the group, in accordance with GAAP. Net loss attributable to Senstar Technologies Ltd. shareholders in the fourth quarter was $33,000, or $0.00 per share, compared to net income of $1.6 million, or $0.07 per share, in the fourth quarter of last year.

Added to Senstar Technologies Ltd.'s operational contribution are the public platform expenses and amortization of intangible assets from historical acquisitions. The corporate expenses for the fourth quarter were approximately $925,000 compared to roughly $680,000 in the year-ago period. Turning now to the full year results, revenue for the full year of 2025 was $36.4 million, an increase of 2% compared to $35.8 million in 2024. Growth in the year was driven by the North American region, with strength in the corrections and energy verticals. The U.S. led the revenue growth at 9%, followed by stable single-digit growth in EMEA, offset by a 9% decline in Asia Pacific.

The geographical breakdown as a percentage of revenue for 2025 compared to 2024 is as follows: North America, 49% versus 45%; EMEA, 36% versus 36%; APAC, 14% versus 15%; and Latin America, 1% versus 3%. Full year 2025 gross margin was 65.5% compared to 64.1% in 2024. The roughly 150-basis-point improvement in gross margin was largely attributable to a balanced product mix, product redesigns, and efficiency gains in our material purchase process. Our operating expenses were $20.8 million compared to 2024, reflecting the result of investments made in business development, as well as transactional costs associated with the Blickfield acquisition which was announced in December 2025, as well as closing-related costs for a foreign entity.

Operating income for 2025 was $3.0 million compared to $3.9 million in 2024. The decline in operating income was related to slower revenue growth and increases in general and administrative costs associated with the Brookfield transaction and the closing of the foreign entity. Financial income was $71,000 in 2025 compared to $731,000 in 2024. Net income attributable to Senstar Technologies Ltd. shareholders in 2025 was $3.2 million, or $0.14 per share, compared to $2.6 million, or $0.11 per share, in 2024. The company's EBITDA for 2025 was $3.7 million compared to $4.6 million in 2024.

Added to Senstar Technologies Ltd.'s operational contribution are the public platform expenses and amortization of intangible assets from historical acquisitions, and corporate expenses for 2025 were $3.2 million compared to $2.2 million in 2024. Turning now to our balance sheet, cash and cash equivalents and short-term bank deposits as of 12/31/2025 were $22.5 million, or $0.96 per share. This compares to $20.6 million, or $0.88 per share, as of 12/31/2024. The company had zero debt as of 12/31/2025. That concludes my remarks. Operator, we would like to open the call now to questions.

Operator: You may press 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key. Once again, that is star-1 to ask a question at this time. One moment while we poll for questions. The first question comes from an Analyst with Oppenheimer. Please proceed.

Analyst: Hi. With regards to the Blickfield acquisition, is there a specific vertical or opportunity you see for their technology?

Fabien Haubert: Yes, thanks. Indeed, we are seeing three main paths to growth. First, LiDAR within our current verticals increases the addressable market tremendously. In a lot of cases, when end users do not choose fence sensors or buried solutions, they privilege cable-less or wireless solutions such as thermal cameras, radar, video, and analytics. With 3D LiDAR, we are able to address part of that market where we were not able to compete in the past if the decision from an end user was not to secure the fence mechanically. That is the first addressable market, which we see rising strongly for us because the technology provides unique strengths that can outperform alternative technologies.

Second, within our current verticals, LiDAR gives us the possibility to address parts which we did not address before—typically, when you have storage yards, roofs, corridors, or outside zones without a fence. That increases our opportunity set significantly, and we are already developing a pipeline there. Third, in volume monitoring applications—basically on-the-spot monitoring of bulk for petrochemicals, fertilizers, salt, and other materials—LiDAR gives the possibility to perform live measurement on the spot. It is a vertical where Blickfield is already very active, and we are committed to supporting further development of this vertical.

Last but not least, traffic applications such as road, crosswalk monitoring, and tunnels—where Blickfield already has a footprint—are very close to our markets and represent a strong path for growth. Those are the three main directions we want to leverage with Blickfield and the LiDAR technology. I hope I have answered your question.

Analyst: Yes, you have. And as far as Brookfield is concerned, the charges we saw in the fourth quarter—are you expecting more in the first quarter, or is that mostly behind you? What can we expect?

Fabien Haubert: So, I cannot comment on the first quarter. What I can tell you is that the LiDAR sales in the fourth quarter are only Senstar Technologies Ltd. sales because we used to have a technology partnership with Blickfield, and therefore the sales of Blickfield are not part of the Q4 results. We will present later on in Q1 the sales from Senstar Technologies Ltd. of our LiDAR and, of course, all the big velocity.

Alicia Kelly: And just to clarify your question there, we incurred costs through 2025 for Blickfield, and we expect that there will be some costs still in future periods, but not substantial.

Analyst: Okay, good. And one other question with regards to the projects that were delayed in the United States: have any of those projects broken ground, or are you moving forward, or is that still pending?

Fabien Haubert: All of them are moving forward. The ones we identified are still alive and working, and we have good hopes to convert some of them in the quarters to come. I want to be careful because you can never predict against another shutdown or other macro events, but those projects are still active. We are still working on them with the operational entities of the customers, so we did not encounter major losses or cancellations. We still have good hope they will materialize in the quarters to come.

Analyst: And I think it was a telecom project in the EMEA area—you are expecting that to hit again in 2026?

Fabien Haubert: Absolutely. We expect some portion of it in 2026. It was a multiphase project. The first large phase occurred last year. The further phases were delayed for reasons outside our control, but yes, some of it should recur in the coming quarters.

Analyst: And I saw there were some charges with regards to closing of a foreign office. Where was that located?

Fabien Haubert: That is related to the relocation of the company which occurred early 2025 in Canada, and we closed the previous entity, which was the legacy of the Magal office.

Analyst: Understood. And what is your employee count? How much has that gone up with the Brookfield acquisition?

Alicia Kelly: Headcount went up by 28 people with the acquisition, so we are around 160 people with Blickfield.

Analyst: Okay. Great. Thank you.

Operator: There are no further questions at this time. I would like to turn the call back to Mr. Haubert. Would you like to make your concluding statement?

Fabien Haubert: On behalf of Senstar Technologies Ltd. management, I would like to thank our investors for their interest and long-term support of our business. Have a great day.

Operator: Thank you, ladies and gentlemen, for your participation today. This does conclude today's teleconference. You may disconnect your lines at this time, and thank you for your participation.