Actelis was thrown off Nasdaq in April. Its market value is now a quarter of its cash
Six months after Nasdaq threw it off the exchange, Actelis trades near five cents with a market value of about $1.4M against $5.8M of cash. On October 15 its CFO takes the relisting pitch to Manhattan, armed with a rebound and a share count that has already tripled.
Vincent Jiang · 3 min read
A Manhattan pitch for a stock priced below its cash
On October 15, Deputy CEO and CFO Yoav Efron stands up at the Mandarin Oriental in New York to pitch Actelis Networks at the ThinkEquity Conference: a 3pm slot, a webcast, and one-on-one meetings with investors all day 1. His subject last closed at $0.05 on the OTCQB, a market value of about $1.4M 1. The company held $5.8M of cash and restricted cash on June 30 2. The market values the whole business at roughly a quarter of its bank balance.
From the big board to five cents
A Nasdaq hearings panel ordered the delisting in April after the stock failed the exchange's minimum bid price requirement and its compliance plan was not accepted 3. The shares fell more than 70% to a record low when the decision landed. Trading was suspended on April 10, and the stock reopened on the OTCQB on April 24 31. Actelis stayed liquid the way microcaps do: $7.3M raised at-the-market in the first half, taking shares outstanding from 8.1M at year-end to 25.8M by June, a tripling, softened slightly by a $1.0M buyback 2.
The rebound is real, and it is small
Second-quarter revenue was $1.1M, up 20% year over year; gross margin hit 51% against 32% a year earlier; the net loss narrowed to $1.4M from $1.9M 2. Cost actions target about $1M of annualized savings 2. The federal demand story is real money: the Pentagon's fiscal 2026 C5ISR request is $42.7B, up 11.4% 1, and Actelis claims an Air Force pilot saving over 85% versus satellite and 5G alternatives 4. But the $3.4M of Q2 2024 was a single quarter, not a run rate; Q1 2024 printed $0.7M and Q4 2024 printed $1.1M 5. First-quarter 2026 revenue was $0.96M, up 33% year over year 1.
Q2 revenue rebounded to $1.1M, a third of its 2024 peak
Data
| Revenue | |
|---|---|
| Q1 '24 | $0.73M |
| Q2 '24 | $3.43M |
| Q3 '24 | $2.54M |
| Q4 '24 | $1.06M |
| Q1 '25 | $0.72M |
| Q2 '25 | $0.94M |
| Q3 '25 | $0.64M |
| Q4 '25 | $1.37M |
| Q1 '26 | $0.96M |
| Q2 '26 | $1.13M |
The split is the easy part
Shareholders pre-authorized a reverse split of 1-for-10 to 1-for-25 in April, exercisable by the board at any time for one year 26. From $0.05, the steepest ratio yields $1.25 and the gentlest leaves 50 cents. The binding constraint is share supply. The equity line was amended on July 1 to as much as $30M 2, but at five cents a full $30M draw would take twenty times the shares Actelis is allowed to issue, and the 28.4M-share float is already within sight of the 30M authorized 12. The race has one set of runners: holders win if the split restores a Nasdaq listing and the institutional access that follows, and the same holders fund their own rescue if the line sells shares at a nickel first.
The margin is one customer wide
The 51% gross margin is the best in two years 25, and the company credits an improved software and services mix 2. One $0.85M carrier renewal made up roughly three quarters of the quarter's revenue 2, and the same margin line ran 68.6% in late 2024 before the base collapsed 5. Mix moves this number, and mix can leave.
51% gross margin is a two-year high, still under 2024's 68.6%
Data
| Gross margin | |
|---|---|
| Q1 '24 | 30.3% |
| Q2 '24 | 56.6% |
| Q3 '24 | 68.6% |
| Q4 '24 | 34.3% |
| Q1 '25 | 34.8% |
| Q2 '25 | 32.4% |
| Q3 '25 | 28.5% |
| Q4 '25 | 35.1% |
| Q1 '26 | 25% |
| Q2 '26 | 51% |
Three dated readings decide the race
Watch for an 8-K that triggers the split before the authorization lapses in April 2027, the share count in the next 10-Q against the 30M ceiling, and whether Efron leaves Manhattan with institutional interest. Relisting is paperwork; a valuation above the cash drawer is not.
Deepdive
AI-generated from this story and its cited sources. Not investment advice.
