Senstar Technologies Corporation
Second Quarter 2026 Earnings Results Conference Call
August 25, 2026
CORPORATE PARTICIPANTS
Corbin Woodhull, Hayden IR
Fabien Haubert, Chief Executive Officer
Alicia Kelly, Chief Financial Officer
CONFERENCE CALL PARTICIPANTS
Fred Ehrman, Private Investor
Ken Liddy, Oppenheimer & Company
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PRESENTATION
Operator
Welcome to Senstar Technologies’ conference call to discuss its second quarter 2026 results.
All participants are currently in a listen-only mode. Instructions for the question-and-answer session will
follow the management's prepared remarks.
As a reminder, this conference call is being recorded.
I would now like to turn the call over to Corbin Woodhull of Hayden IR. Corbin, please begin.
Corbin Woodhull
Thank you, Sherry.
Welcome to everyone joining us today and thank you to Senstar Technologies Management for hosting the
call.
Joining us today are Mr. Fabien Haubert, CEO of Senstar Technologies, and Ms Alicia Kelly, the CFO of
Senstar Technologies. Fabien will summarize key business and financial highlights, followed by Alicia, who
will review Senstar's second quarter 2026 financial results. We will then open the call for questions.
Unless otherwise indicated, all financial figures discussed today are in U.S. dollars and all comparisons
year-over-year.
Before we begin, please note this conference call may contain forward-looking statements, including
projections regarding future events and Senstar's future performance. These statements are based on
current expectations and assumptions and are subject to risks and uncertainties. Actual results may differ
materially from those expressed or implied by such statements. For a discussion of these and other risks,
please refer to the Risk Factors and other information in Senstar's filings with the U.S. Securities and
Exchange Commission. Senstar undertakes no obligation to update any forward-looking statements except
as required by law.
During the call, we will also discuss certain non-GAAP financial measures. These measures should be
considered in addition to and not a substitute for the most directly comparable GAAP measures.
Reconciliations are included in our earnings release in accordance with Regulation G. You can also refer
to Senstar's website at www.senstar.com for the most directly comparable financial measures and related
reconciliations.
With that, I will turn the call over to CEO Fabien Haubert. Fabien, please go ahead.
Fabien Haubert
Thank you, Corbin, and thank you to everyone joining us today to review Senstar Technologies' second
quarter 2026 results.
Our second quarter results reflect continued execution of our strategy, including a revenue of $10.4 million,
up 8% year-over-year, and a return to profitability. LiDAR, again, performs strongly and continues to be an
important contributor to our growth. We believe this momentum reflects the contribution of Senstar's sales
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infrastructure to Blickfeld growth. The combined business is beginning to generate synergies, and Blickfeld
reported positive EBITDA in the second quarter. We believe integration is progressing as planned, and
we're working to realize efficiency gain and expand our addressable markets.
Let me provide some context on the demand environment, which remains healthy.
We saw particularly strong momentum in EMEA and APAC, supported by demand from utilities, data
centers, and airports. EMEA's performance in the first quarter continued into the second quarter, with
revenue increasing 14% year-over-year and 26% year to date. Growth was primarily driven by utilities, data
centers, airport, and energy.
LiDAR sales momentum is building, supported by increasing business development investments, including
the recent hiring of a regional sales director in the Middle East. Our EMEA pipeline continues to strengthen,
and we expect the region to remain an important contributor to the business.
Asia-Pacific was the fastest growing region in the second quarter, with revenue increasing 93% year-overyear, a rebound from the prior quarter. Revenue in the region grew 21% year to date. Growth in the second
quarter was driven by utilities, data centers, correction, and airports, reflecting improved activity in South
Asia and Japan.
LiDAR sales in the region remain at an early stage, which we believe provides an opportunity as adoption
develops.
In the U.S., second quarter revenue declined 14% year-over-year and 17% year to date. The corrections
vertical continues to experience project delays related to the federal government shutdown. No major
projects have been canceled, and we're seeing initial signs of recovery. We expect activity to resume in the
second half of the year.
Growth in U.S. LiDAR sales and continued strength in utilities substantially offset the softness in U.S.
correction. We also continue to add talent, including the appointment of a new Vice President of Sales,
USA and Latin America, with experience across security, LiDAR, utilities, and data center.
Turning to our four core vertical markets, performance was mixed in the quarter, declining approximately
18% year-over-year, primarily because of the slower activity in the corrections market during the first half
of the year.
Utilities was a highlight, with sales increasing 17% year-over-year, driven by data centers,
telecommunication, and solar farms. Growth was broad-based across regions.
Transport also grew in the quarter, and we remain focused on adding new logos and expanding our
relationship with existing customers through cross-selling.
More broadly, the performance of our four verticals continues to be affected by weakness in the U.S.
corrections markets. However, underlying demands remains active. We have not experienced customer or
project losses, and we recorded several wins in APAC during the quarter.
LiDAR remains a key proof point of our strategy. On a combined basis, LiDAR Solutions grew nearly 100%
year-over-year, and now represents 20% of global sales, compared with 11% in the first quarter; Senstar
sales force, generating a meaningful portion of that growth. We believe the results support the strategic
rationale of the Blickfeld acquisition, which combined Blickfeld technology and know-how with Senstar
partner network and sales force. This combination enhances our position in targeted vertical markets. We're
seeing a growing pipeline in security and volume monitoring application with opportunities across North
America, Latin America, EMEA, and APAC.
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Blickfeld is also complementary to our existing portfolio, with limited overlap across sales channels. Its
LiDAR solution primarily competes with thermal camera solution and perimeter and outdoor application.
Growth reported by our closest peers in LiDAR across security, volume monitoring and traffic monitoring
reinforces our confidence in the long-term market opportunity. Product innovation remains important to
Senstar, and we continue to advance product and solution in response to customer needs.
Specifically, we're in the final development stage of two planned launches. Embedded Fiber Range, our
next-generation fiber optic sensing technology designed for perimeter intrusion detection systems and
critical infrastructure protection, are expected to be fully released by the end of the third quarter. The
Embedded Fiber Range is intended to broaden the fiber PIDS markets to include short distance application,
traditionally using alternatives technologies. Its Embedded AI engine is designed to improve situational
awareness when evaluating intrusion attempts and reduce nuisance alarm rates.
Symphony Workflow Engine, the customizable tool is integrated into the Senstar Symphony Common
Operating Platform to automate tasks for security and logistics operators. We expect the Workflow Engine
to support software sales and recurring revenue over time.
We currently expect both innovations to be released in the second half of 2026, and we intend to showcase
the security solution at the upcoming Global Security Exchange in Atlanta.
Overall, our confidence is supported by customer engagement, order activity, geographic diversification,
and expanding LiDAR opportunity. We believe the benefits of the Blickfeld acquisition are beginning to
emerge alongside continued growth in utility, growth in EMEA and APAC, and an expected recovery of the
U.S. corrections markets.
Our diversified pipeline is converting to revenue, and improving revenue conversion remains a key priority.
With our team, products, solutions, and experience in place, we believe we're positioned to execute on our
goals for the year and pursue sustainable, profitable growth.
Before turning the call over to Alicia, I'd like to thank our employees for their continued dedication, our
customers for their trust, and our shareholders for their support.
I will now turn the call over to Alicia for a more detailed review of the financial results.
Alicia Kelly
Thank you, Fabien.
Revenue in the second quarter of 2026 was $10.4 million compared to $9.7 million in the year-ago quarter,
and was in line with our financial plan. This 8% increase year-over-year reflected strength in APAC and
EMEA. LiDAR sales nearly doubled, partially offsetting continued weakness in the U.S. corrections vertical
related to project delays following the federal government shutdown in late 2025.
APAC was the strongest performing geographic market in the quarter, with revenue increasing 93% yearover-year. Growth was driven by steady demand in utilities, data centers, corrections, and airports. Japan
and South Asia reported accelerated growth during the quarter, while LiDAR is showing encouraging early
indicators.
EMEA strength in the first quarter continued into the second quarter, with revenue increasing 14% yearover-year. Performance-related broad-based gains across the region, with particular strength in utilities,
airports, data centers, and energy. LiDAR applications continue to generate inbound customer interest, and
our business development efforts remain focused on capturing the long-term growth opportunities in the
region.
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Revenue from North America declined 12% in the quarter, driven by a 14% decline in the U.S. As Fabien
noted, U.S. performance reflected challenging market conditions, including continued pressure on the
corrections vertical and project delays related to the federal government shutdown. We have not lost any
customer projects and we expect activity to resume in the second half of the year as early signs of recovery
have emerged.
Canada returned to growth after a challenging first quarter, with revenue increasing 19%. Canada remains
an important market and we continue to focus on serving customers in the region.
The geographical breakdown of the second quarter revenue compared to the prior quarter was as follows:
North America, 43% versus 53%; EMEA, 37% versus 35%; APAC, 19% versus 11%; and all other regions
immaterial in both periods.
Second quarter gross margin was 64.2% compared with 66.1% in the year-ago quarter. The change
primarily reflected product mix, and the second quarter margin was in line with our plan. Sequentially, our
gross margin increased from 60% in the first quarter of 2026, driven by a healthier product mix in the second
quarter.
Operating expenses were $6.4 million, up 18% from $5.4 million in the year-ago quarter, and represented
60.9% of revenue compared to 56% in the year-ago period. The increase primarily reflected $1.2 million of
costs associated with the Blickfeld acquisition, partially offset by lower corporate costs including due
diligence costs for Blickfeld incurred in the second quarter of 2025.
Operating income for the second quarter of 2026 was $343,000 compared to $1 million in the second
quarter of 2025. Operating income and revenue were in line with internal forecasts for the quarter with
operating income primarily affected by Blickfeld integration expenses.
EBITDA for the second quarter was $551,000 compared to $1.1 million in the second quarter of 2025. The
decline from the prior year quarter primarily reflected slightly lower gross margin and higher costs
associated with the Blickfeld acquisition compared with the first quarter of 2026. EBITDA improved from a
loss of $403,000.
Financial income was $61,000 in the second quarter of 2026 compared with financial loss of $330,000 in
the second quarter of 2025. The primary difference reflects a non-cash accounting effect from adjustments
to the valuation of monetary assets and liabilities denominated in currencies other than the functional
currency of the Group's operating entities in accordance with GAAP.
Net income attributable to Senstar shareholders was $351,000, or $0.02 per share, in the second quarter
of 2026 compared with net income of $1.2 million, or $0.05 per share, in the second quarter of 2025. Net
income also reflects public company platform expenses and amortization of intangible assets from historical
acquisitions.
Corporate expenses in the second quarter were approximately $588,000 compared to $865,000 in the yearago period.
Turning next to the balance sheet, cash and cash equivalents and short-term bank deposits, excluding
$100,000 of restricted cash related to Blickfeld closing balances, were $8 million as of June 30, 2026, or
$0.34 per share. This compares to $22.5 million, or $0.96 per share, as of December 31, 2025. The
Company had no debt as of June 30, 2026. The decrease in cash during the period ended June 30, 2026,
primarily reflected the €10.4 million cash-funded acquisition of Blickfeld, which closed in February of 2026.
That concludes my remarks. Operator, we would like to open the call now for questions.
Operator
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Thank you. If you would like to ask a question, please press star, one on your telephone keypad. A
confirmation tone will indicate your line is in the question queue. You may press star, two if you would like
to remove your question from the queue. For participants using speaker equipment, it may be necessary
to pick up your handset before pressing the star keys. Please limit to just one question. One moment while
we poll for questions.
Our first question is from Fred Ehrman (phon), Private Investor. Please proceed.
Fred Ehrman
Hi, Fabien and Alicia.
The increase in revenue, how much was that attributed to your Blickfeld acquisition?
Fabien Haubert
Thanks very much, Fred, for this question. It's hard to answer in this sense. First of all, we're only the
closing. We're running our company as a single company.
On top of it, the sales were driven both by the existing Blickfeld team, but as well as the Senstar sales team,
which have been selling Blickfeld first on the OEM before. So, indeed, LiDAR has been a high contribution
in the growth, absolutely, but generated by both simultaneously. We cannot disclose basically which one
generated which.
I hope I have answered your question, Fred.
Fred Ehrman
Thank you.
Operator
Our next question is from Ken Liddy with Oppenheimer & Company. Please proceed.
Ken Liddy
Hi. In the quarter, your research and development costs were up higher than I can remember. Is that due
to Blickfeld?
Fabien Haubert
I understand you want to understand the raise of R&D raises in the second quarter. Do I get right your
question?
Ken Liddy
Yes, is it attributed to synergies of developing new products with the Blickfeld acquisition, or is it something
else?
Alicia Kelly
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Yes, we did integrate the Blickfeld team into the group, and Blickfeld makes up about $300,000 of the total
R&D expense, and that would be most of the change that occurred period over period.
Ken Liddy
Is there a dollar amount that you can expect quarter-to-quarter or annually that you're targeting research
and development or a percentage of sales number?
Alicia Kelly
I think the number that we've incurred for Q2 is fairly normal for the group now.
Ken Liddy
Like $1.3 million or so?
Alicia Kelly
Yes. The thing that's changed with that is if we—we continue to look for opportunities around IRAP, which
is the research and development program from Canada, where we would get a grant, or if there was a grant
that was eligible from Germany, we would also be looking for those opportunities that could potentially
reduce the future cost.
Ken Liddy
Great, and I have another question. Regarding the U.S. sales, I understand things got pushed off from late
last year. Are you expecting U.S. sales to normalize the second half of the year or this quarter? Next
quarter?
Fabien Haubert
It's our expectation that the business and corrections indeed will resume in the second half. It's our
expectation. As mentioned, we're seeing first signs of this recovery, but it remains our expectation.
On top of it, we're just having onboarded a new Vice President of Sales with very strong experience in
utilities and data centers to help us on top of strengthening the position in our historical verticals, among
with the corrections, to further accelerate our developments in data centers and utilities and user markets.
We're taking the problem of the issue of the challenge very seriously. Indeed, we expect a recovery and
growth, of course, over time in the other verticals.
Ken Liddy
Great. Do you expect to see any more opportunities with LiDAR? You talked extensively last call. Is there
anything that's materializing since the last call?
Fabien Haubert
A hundred percent. We're online so far. There are three elements I would like to add to this question, and
thank you for raising it, Ken.
The first thing is that our LiDAR sales, if you take in combined quarter over quarter and over the first half,
is around 100%. We absolutely feel the growth of the LiDAR segments, basically, of the LiDAR products in
our target. We are working hard to cross-sell our existing markets, number one, in security. As mentioned,
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we're not willing to give detailed figures, but to this extent, Senstar has highly contributed to the growth of
LiDAR.
On top of it, the historical vertical of Blickfeld are increasing tremendously in volume monitoring and traffic.
Finally, we believe that there's no—we don't see any overlap with our existing solution, but we perceive
LiDAR 3D as the main competitor of thermal camera, which is a product we didn't have in our portfolio, per
se, historically, and which is extending the TAM tremendously, and which is not competing to our current
solution range. On the three events, we expect LiDAR sales to indeed keep growing.
I would like to mention that we're monitoring closely our peers, and we see that they're sustaining very high
growth rates, two digits.
Ken Liddy
In relationship to that, could you speak about the new product? Innovations that you have coming in
September, I think you said, and how that relates to your verticals?
Fabien Haubert
Yes, 100%. We're releasing a new fiber vision (phon) systems and embedded platform with an AI algorithm,
which provides better detects and sharper detection, which will be focused on lower distances, where
there's today a mix of different technologies. We would like to basically gain leverage on the fiber by
providing this fiber solution that can cover from very short distances to very long ranges, expanding again,
our addressable market.
Number two, we're going to release the Senstar Flow, which is a next-generation of a software algorithm
on top of the Senstar Symphony platform. The purpose is to basically boost the sales of software application
next to our traditional bids, and develop the recurring revenue, which is one of our main challenges for the
future. We will happily demonstrate both solutions during the GSX in Atlanta in September.
Ken Liddy
Great, that's good to hear. Okay, that's all I have for now. Appreciate your answers. Thanks.
Fabien Haubert
Thank you, Ken. Thank you for your trust.
Operator
There are no further questions at this time. Mr. Haubert, would you like to make your concluding statement?
Fabien Haubert
On behalf of Senstar’s management, I'd like to thank our investors for their interest and long-term support
of our business. Have a good day.
Operator
Thank you. This will conclude today's conference. You may disconnect at this time, and thank you for your
participation.
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reporting of the substance of the conference call. This transcript is being made available for information purposes only.
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