Elsight Aims for Profitability after Achieving Record Revenue In First Half of FY25
Elsight (ASX: ELS) has reported unprecedented performance for the first six months of the 2025 financial year, with record revenue driving it through cash flow breakeven and towards profitability.
The connectivity solutions company posted a first half record revenue of $7.4 million, with a strong order book of $17.5 million providing a solid foundation for continued growth in the second half and Elsight expects to reach profitability in the next six month period.
The company’s cash position had increased to approximately $11.5 million at the end of June, surpassing a 137% increase over its entire 2024 annual revenue and demonstrating a capital-efficient and sustainable business model.
Halo Contracts
In April, Elsight announced a $6.8 million contract for its Halo connectivity platform from a leading European defence equipment manufacturer following a successful field deployment phase and initial production order.
This marked the beginning of a transformative multi-phase engagement, with the customer rapidly committing to expanded downstream deployments.
The momentum continued with an additional $8.2 million contract in May and a third contract for $7.9 million signed in early June.
Defence Program
During the quarter, Elsight became one of eight companies to be selected from a total 223 global candidates for the prestigious Northrop Grumman–FedTech Accelerator program.
The program provides a fast-track opportunity to collaborate directly with Northrop Grumman, one of the world’s largest defence contractors, and also opens significant doors within the US defence ecosystem.
Elsight said inclusion in the program reinforced Halo’s position as a mission-critical solution for secure, real-time connectivity in unmanned operations and continued the accelerating global demand for the platform.
Elsight is capitalising on these strong industry tailwinds with a $232 million pipeline of realisable opportunities fuelled by rising global defence budgets, growing investment in unmanned systems and the development of the commercial market.
Manufacturing Partners
Three contract manufacturing partners are currently supporting Elsight’s annual hardware production capacity of $107 million, with the company able to unlock additional capacity with the expansion of existing lines or onboarding of new manufacturers.
Importantly, Elsight can achieve this without upfront capital expenditure and within approximately four months from initiation to full-scale production, ensuring flexibility, efficiency and continued readiness to meet anticipated demand.
Elsight will onboard a new European contract manufacturer by the end of 2025 to expand its annual production capacity to approximately $230 million, allowing it to bring manufacturing closer to key defence and commercial customers, and further de-risk supply continuity through geographic diversification.