Senstar Technologies Ltd. Q4 FY2025 earnings call

• Full year 2025 delivered solid performance with revenue growth, margin expansion, and profitability. • Fourth quarter faced challenging conditions due to non-recurring and timing-related factors like government project delays. • Key verticals include data centers, energy, utilities, etc., focused on security and operational intelligence. • 2025 was breakout year for LiDAR adoption across verticals, with strong sales growth. • Acquisition of Blackfield in early 2026 to enhance competitive position. • Geographic performance: US and LATAM strong full year but fourth quarter impacted by govt funding delays; Canada saw growth; EMEA had low single-digit growth; APAC improved in fourth quarter. • Business development strategy centered on high growth verticals, cross-selling, and leveraging footprint.

Full year 2025: Revenue was $36.4 million, gross margin expanded to 65.5%, net income of $3.2 million, cash $22.5 million, no debt. Core verticals revenue grew 5% for the year. Fourth quarter 2025: Revenue declined 14% year-over-year to $8.8 million. Fourth quarter gross margin 61.5% vs 64.5% prior year. Geographical breakdown for fourth quarter: North America 44% vs 42%, EMEA 41% vs 46%, APAC 15% vs 11%. Full year geographical breakdown: North America 49% vs 45%, EMEA 36% same as prior year, APAC 14% vs 15%, Latin America 1% vs 3%.

• 2026 sees continued activity in data centers, utilities, energy, and LIDAR with growing pipelines. • Business development strategy focused on high growth verticals, scalability worldwide. • Addition of Blickfield to expand solution range and address more applications. • Aim to convert pipeline into revenue while maintaining cost discipline.

• Changing market trends may impact performance. • Reduced demand could affect revenue. • Competitive nature of security systems industry. • Non-cash accounting effects due to valuation adjustments of monetary assets and liabilities in different currencies.

Q: With regards to the Lickfield acquisition, is there a specific vertical or opportunity you see for their technology?

A: Three main paths: LIDAR in current verticals increases addressable market, addresses POTS not before, volume monitoring application, and traffic application.

Q: Are the charges we saw in the fourth quarter for Blickfield expecting more in the first quarter?

A: Cannot comment on first quarter, LiDAR sales in fourth quarter were only Senstar cells, expect some costs in future but not substantial.

Q: Have any of the delayed projects in the United States broke ground?

A: All projects are moving forward, still alive and working on.

Q: Expectation for telecom project in EMEA?

A: Some piece of it in 2026.

Q: Where was the foreign office closure located?

A: Related to relocation of company to Canada in early 2025, closing previous McGill office entity.

Q: How much has employee count gone up with Blackfield acquisition?

A: Went up 28 people, around 160 people now.