Odysight.ai Inc. Q2 FY26 Results

The first half of 2026 was defined by the high caliber of the customers choosing to work with us. Receiving our first direct purchase order from Boeing is a significant commercial milestone in the Company’s history. It moves us from supplying national air forces to working directly with the OEM that builds and supports the platforms themselves, at Boeing’s own sites and on Boeing’s own equipment. We believe this order could serve as the foundation for a broader relationship across Boeing’s rotorcraft, commercial, and defense portfolios, with potential pathways into U.S. Department of War programs and manufacturing applications. Together with the proof-of-concept order from Honeywell Aerospace for its APU portfolio, we are now engaged with two of the largest names in aerospace. Alongside these OEM relationships, we continued to build our position with end users. We completed the first U.S. test flights of our system on a UH-60 Black Hawk with XP Services, signed a CRADA with the U.S. Navy’s NAWCAD covering carrier arresting cables, and received a further purchase order from Elbit Systems on behalf of the Israeli Ministry of Defense. Each of these programs is structured to lead to potentially wider deployment on successful completion, and together they give us multiple routes into the U.S. and Israeli defense markets.

Revenues for the first half of 2026 were $0.5 million. Backlog increased from $14.1 million as of June 30, 2026 to $16.45 million. Our first half revenues reflected the timing of order execution rather than the level of demand and, as stated in our earnings release for the first quarter of 2026, we expect revenues to be weighted towards the second half of the year as existing orders convert into deliveries based on current delivery schedules and customer timelines. We ended the first half of 2026 with approximately $17.6 million in cash and no debt. Operating expenses during this period were broadly flat against last year and net loss for the period was $9.5 million. We began implementing efficiency steps during the first quarter of 2026 and these measures helped mitigate the negative effect of changes in the USD/NIS exchange rate. We continue to invest in our U.S. and European commercial activities and deliveries, and remain focused on managing our cost base with discipline while funding the programs that we believe will drive the business over the medium term.