THE THINKEQUITY CONFERENCE 2026 - ACTELIS NETWORKS INC

Explicit Guidance:

• No specific quantitative financial guidance (revenue, earnings, margins, capex, or cash flow) provided for future periods beyond qualitative descriptions.
• Management acknowledges 2025 revenue was < $4M and confirms 2026 H1 revenue growth of 26% YoY with 80% booking growth; states Q3 2025 revenue details pending but highlights a "significant" U.S. Marine Corps order delivery in Q3.
• Projects 2027 as a key inflection point for revenue realization from current federal "programs of record" trials and discussions.

Business-Segment Outlook:

• Federal/Military: Expecting a shift from sporadic project sales to sustained "programmatic sales" via "programs of record" (designated modernization cycles), with immediate impact expected as existing trials mature into 2027.
• Intelligent Transportation Systems (ITS): Deepening engagement with over 300 U.S. cities (pop. 100k–1M); currently in Phase 3 of modernizing devices for Highways England (post-2018 win); targeting FAA modernization ($12B budget) and legacy T1-to-fiber upgrades for major carriers.
• Hospitality: Positioned to capture demand for multi-gigabit, in-room digital experiences and streaming integration in aging analog hotels; viewing this as a "must-have" modernization rather than optional.
• Product/Tech: Focus on "giga line" product line delivering fiber-grade speeds over copper, coax, and fiber; continuous embedded software releases to enhance cyber hardening and power-over-Ethernet capabilities.

Market and Competitive Outlook:

• Demand Trends: Anticipated secular tailwinds in "edge AI" driving need for low-latency, on-premise compute and networking; rising demand for cyber resilience driven by stricter compliance (EU Cyber Resilience Act mandated 2027) and ransomware attacks on critical infrastructure.
• Competitive Positioning: Targeting small-to-medium sized critical infrastructure projects where giants (Juniper, Cisco, Extreme) are less competitive due to size; claims best-in-class capability for hybrid networking (fiber/copper/coax) and has previously beaten Adtran and Cisco in ITS.
• Pricing Strategy: Maintains a reputation for "high quality" and "slightly high pricing" but emphasizes cost-efficiency by avoiding expensive rewiring/re-cabling for customers.

Macro / Industry Outlook:

• Cybersecurity Regulation: Citing the EU Cyber Resilience Act (effective 2027) and U.S. FIPS standards for the Joint IT Command (Dept. of War) as major drivers for compliance; expects tightening requirements for municipalities, educational facilities, and critical infrastructure.
• Infrastructure Modernization: Identifies a "frenzy" in government and municipal modernization cycles (federal, defense, smart cities) necessitated by antiquated infrastructure (e.g., Newark traffic control failures, FAA delays).
• Edge Computing: Argues that AI automation (robotics, autonomous vehicles) will force processing to the "edge" due to latency risks, making hybrid wired infrastructure essential where wireless/fiber is impractical.

Strategic Initiatives:

• M&A: Actively pursuing a synergistic acquisition with a "cyber orientation" to grow inorganically and integrate technologies; target identified, process ongoing, expected to support future growth and narrative.
• NASDAQ Re-listing: Prioritizing a return to NASDAQ exchange, contingent on restructuring, cost reduction, and successful execution of the M&A strategy.
• Sales Model Pivot: Transitioning from project-based federal sales to systematic "programmatic sales" by hiring talent skilled in military program management.
• Software/Services: Launching "Meta Shield," an AI-driven centralized anomaly detection and auto-correction solution for Operational Technology (OT) environments to monitor 24/7 traffic and device behavior.

Risks and Headwinds to Outlook:

• Implementation Disruption: Customer hesitation to modernize due to operational downtime required (e.g., hotels closing rooms, stopping subway lines).
• Legacy Hardware Compatibility: Risk that firmware updates for cyber hardening may not run on customer hardware purchased 5–8+ years ago; potential for charging customers for major security updates on older equipment.
• Supply Chain: Reliance on external vendors for chips and memory; while firmware and cyber hardening are proprietary, component supply is external.
• Execution Risk: M&A target closure is not guaranteed; success of 2027 revenue inflection depends on converting current trials into long-term "programs of record."

Management Tone on the Future:

• Confidence Level: Optimistic but cautious regarding 2026; describes 2025 as "not a good year" but expresses strong confidence in the "momentum" created since then.
• Narrative Shift: Intentional pivot from a "terrible 2025" to a story of "onwards and upwards" driven by critical infrastructure modernization and AI edge trends.
• Strategic Clarity: Management expresses certainty in the market tailwinds (cyber, edge AI, defense) and confidence in their unique hybrid networking capability, contrasting it with larger competitors.

Miscellaneous:

• Firmware Security: Commitment to weekly code scanning to identify and fix vulnerabilities; firmware development includes embedded cyber hardening as a primary differentiator.
• Geographic Focus: Deep presence in U.S. federal and municipal markets (DC, NYC, Seattle, SF, Washington D.C., Alaska); international presence in Highways England.
• Technology Enablers: Emphasis on Power-over-Etherny capabilities and spectral compliance for unsecured/unstable copper infrastructure.