This article first appeared on GuruFocus.
Revenue: $10.4 million, up 8% year-over-year.
Gross Margin: 64.2%, compared to 66.1% in the year-ago quarter.
Operating Expenses: $6.4 million, up 18% from $5.4 million in the year-ago quarter.
Operating Income: $343,000, compared to $1 million in the second quarter of 2025.
EBITDA: $551,000, compared to $1.1 million in the second quarter of 2025.
Net Income: $351,000, or $0.02 per share, compared to $1.2 million, or $0.05 per share, in the year-ago quarter.
Cash and Cash Equivalents: $8 million as of June 30, 2026, compared to $22.5 million as of December 31, 2025.
Regional Revenue: North America declined 12%, EMEA increased 14%, APAC increased 93%, and Canada increased 19%.
LiDAR Sales: Nearly doubled year-over-year, representing 20% of global sales.
Release Date: August 25, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Revenue increased 8% year-over-year to $10.4 million, with a return to profitability.
LiDAR solutions grew nearly 100% year-over-year, now representing 20% of global sales, up from 11% in Q1.
EMEA revenue grew 14% year-over-year and 26% year-to-date, driven by utilities, data centers, airports, and energy.
APAC was the fastest-growing region, with revenue up 93% year-over-year, led by utilities, data centers, corrections, and airports.
Blickfeld reported positive EBITDA in Q2, indicating early synergies from the acquisition are materializing.
Negative Points
US revenue declined 14% year-over-year and 17% year-to-date, impacted by project delays in the corrections vertical due to the federal government shutdown.
Gross margin decreased to 64.2% from 66.1% in the prior-year quarter, reflecting product mix.
Operating expenses rose 18% year-over-year, driven by $1.2 million in Blickfeld acquisition-related costs.
Operating income fell to $343,000 from $1 million in Q2 2025, impacted by integration expenses and lower margins.
Cash and cash equivalents dropped significantly to $8 million from $22.5 million at year-end 2025, primarily due to the cash-funded Blickfeld acquisition.
Q & A Highlights
Q: How much of the revenue increase was attributed to the Blickfeld acquisition? A: Fabien Haubert, CEO, explained that it is difficult to quantify precisely because the company now operates as a single entity. Sales growth was driven by both the existing Blickfeld team and the Senstar sales force, which had been selling Blickfeld products on an OEM basis before the acquisition. LiDAR was a high contributor to growth, but the specific revenue split between the two teams cannot be disclosed.
Q: Are you expecting US sales to normalize in the second half of the year? A: Fabien Haubert, CEO, confirmed that the company expects the US corrections business to resume in the second half of the year, citing early signs of recovery. He also noted the recent onboarding of a new Vice President of Sales for the USA and Latin America, who brings strong experience in utilities and data centers, to help accelerate development in these verticals and address the challenges in the corrections market.
Q: Are there any new LiDAR opportunities materializing since the last call? A: Fabien Haubert, CEO, highlighted that combined LiDAR sales grew nearly 100% quarter-over-quarter and in the first half of the year. He emphasized three key points: Senstar has highly contributed to LiDAR growth through cross-selling in its existing security markets; Blickfeld’s historical verticals in volume monitoring and traffic are increasing tremendously; and LiDAR 3D is seen as the main competitor to thermal cameras, a product not previously in Senstar’s portfolio, thus expanding its addressable market without overlapping existing solutions.
Q: Can you speak about the new product innovations coming in September and how they relate to your verticals? A: Fabien Haubert, CEO, detailed two planned launches. First, a new embedded fiber detection system with an AI algorithm for sharper detection, targeting shorter distances where multiple technologies are currently used, thereby expanding the addressable market for fiber solutions. Second, the Senstar Flow workflow engine, a next-generation software tool integrated into the Senstar Symphony platform, designed to boost software sales and develop recurring revenue. Both solutions will be showcased at the GSX in Atlanta in September.
Q: The increase in revenue, how much was that attributed to your Blickfeld acquisition? A: Fabien Haubert, CEO, reiterated that it’s hard to answer because the company is running as a single entity post-closing. Sales were driven by both the existing Blickfeld team and the Senstar sales team, which had been selling Blickfeld products on an OEM basis. LiDAR was a high contributor to growth, but the specific attribution between the two teams cannot be disclosed.
Q: In the quarter, your research and development costs were up higher than I can remember. Is that due to Blickfeld? A: Alicia Kelly, CFO, confirmed that the increase in R&D expenses is primarily due to the integration of the Blickfeld team into the group. Blickfeld makes up about $300,000 of the total R&D expense, which accounts for most of the period-over-period change.
Q: Is there a dollar amount or percentage of sales that you’re targeting for research and development? A: Alicia Kelly, CFO, stated that the Q2 R&D number is fairly normal for the group now. She also mentioned that the company is looking for opportunities around IRAP (Industrial Research Assistance Program) in Canada and potential grants from Germany, which could potentially reduce future costs.
Q: Do you expect to see any more opportunities with LiDAR? A: Fabien Haubert, CEO, confirmed that LiDAR sales are expected to keep growing. He noted that combined LiDAR sales grew around 100% in the first half, Senstar has highly contributed to this growth through cross-selling, Blickfeld’s historical verticals are increasing, and LiDAR 3D is seen as the main competitor to thermal cameras, which expands Senstar’s addressable market without overlapping its existing solutions. He also mentioned that peers in the LiDAR space are sustaining high double-digit growth rates.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.