Mobilicom NASDAQ: MOB executives said the company is seeing stronger demand signals from U.S. defense drone programs even as first-quarter revenue declined because of shipment timing tied to customer procurement schedules.
On the company’s quarterly earnings call, Co-Founder, CEO and Chairman Oren Elkayam framed Mobilicom as a supplier of cybersecurity, communications and electronic warfare software and hardware used inside drones, robotics and autonomous systems. Elkayam said the company sits at the convergence of drones, cybersecurity and autonomous robotics, with products designed to “power, connect, secure, and safeguard drones robotics.”
Revenue dips, but backlog and visibility rise
CFO Liad Gelfer said revenue for the three months ended March 31, 2026, was $548,000, compared with $844,000 in the prior-year period. He attributed the decline to delivery timing rather than weakening demand, saying certain first-quarter shipments were deferred into later quarters as a customer transitioned toward scaled production under a program of record.
Gelfer said Mobilicom’s “revenue visibility,” defined as recognized revenue plus confirmed backlog at quarter-end, was $2.4 million, up 50% year over year. Backlog at March 31 was $1.8 million, compared with $737,000 a year earlier, an increase of about 151%.
Since quarter-end, Gelfer said the order book continued to grow through additional orders from a U.S. tier 1 customer under the OPF program and follow-on orders from other global customers, all expected to be delivered within 2026.
Gelfer described the company’s balance sheet as debt-free, with no credit facility and no convertible debt. He also said Mobilicom terminated its at-the-market facility during the quarter, calling it “a deliberate decision made from a position of strength.” The transcript included differing cash figures from management, with Gelfer citing $70.7 million as of March 31 and Elkayam later referring to “almost $18 million cash in hand.”
Operating cash burn was approximately $528,000 per month in the first quarter, which Gelfer said reflected investments in integration work for new U.S. tier 1 manufacturers, long-lead inventory for production-scale deliveries and the company’s U.S. manufacturing strategy.
U.S. defense programs remain central to growth outlook
Elkayam highlighted progress in U.S. defense programs of record as the core of Mobilicom’s current growth story. He said the company received a $2.2 million purchase order in the first quarter related to the U.S. Marine Corps OPF-L program, where production for mass deployment began in January and is ramping.
Elkayam said all of Mobilicom’s recent U.S. tier 1 orders are tied to OPF-L, including the latest $2.2 million order. He described programs of record as long-term procurement frameworks that typically run at least five years and may extend to 10 years, with additional demand for spare parts, maintenance and training.
The company also discussed progress involving the U.S. Army’s LASSO program, or Low Altitude Stalking and Strike Ordnance. Elkayam said one of Mobilicom’s tier 1 customers has advanced under the program, which is in an initial deployment phase aimed at equipping infantry brigade combat teams with man-portable precision strike capability.
Elkayam cautioned that Mobilicom has no orders associated with LASSO to date. However, he said the customer’s progress broadens the U.S. defense footprint of platforms that embed Mobilicom technology and could add the U.S. Army to a customer base previously anchored by the Marine Corps.
Tier 1 customer pipeline expands
Elkayam said Mobilicom has eight tier 1 customers so far, compared with its 2026 goal of eight to 10. The company said it has already met its annual target of three to four tier 1 partners in design-win and research-and-development stages, with four such players now in that category. It also has three tier 1 customers in initial production and one customer in ramp-up.
Management highlighted two recently announced U.S. tier 1 design wins involving intelligence, surveillance and reconnaissance drone platforms. The first involves a Group 1 handheld ISR drone platform from a U.S. drone manufacturer, where Mobilicom’s SkyHopper data link and ICE cybersecurity software suite are being integrated to improve range, resilience and electronic warfare resistance.
The second design win is with a major U.S. defense and commercial aerospace conglomerate for a Group 2 backpack-sized ISR drone platform. Elkayam said Mobilicom developed a tailored SkyHopper configuration for the platform, including customized interfaces and mission-specific integration requirements.
In response to an analyst question, Elkayam said Mobilicom’s typical cycle with customers is six to 12 months for integration and certification, followed by initial production orders and then ramp-up. For the two new ISR design wins, he said integration is already well advanced and could translate into inclusion in customer sales catalogs in the third quarter, with initial revenue in 2026 and more meaningful revenue in 2027.
Certifications and cybersecurity requirements cited as competitive advantages
Elkayam said Mobilicom’s hardware and software products hold several U.S. defense and regulatory validations, including the Blue sUAS Framework, NDAA validation, Trusted Cyber Certification and DD Form 1494 frequency allocation approval. He also said Mobilicom was added during the quarter to the FCC Trusted Drone list.
In the Q&A session, Elkayam said Mobilicom’s full suite of products was covered by the FCC designation, including SkyHopper data links, MCU mesh networking, mobile ground control stations, OS3 cybersecurity and ICE electronic warfare software. He said the designation allows federal customers and OEMs to use Mobilicom components without risk of government exclusion.
Elkayam also pointed to rising cybersecurity requirements across U.S. defense drone programs, including CMMC, the Cyber Survivability Endorsement Standard, the CSRMC initiative and the Defense Department’s Zero Trust Strategy. He said the market is moving from static cyber testing toward embedded, always-on cybersecurity protection for autonomous platforms.
International activity and U.S. manufacturing plans
Outside the U.S., Elkayam said Mobilicom announced design wins during the quarter with an Asia-Pacific customer, a UAE-based defense manufacturer and an Israeli customer for deployment in India. He described these as examples of the company’s “hardware first foot in the door” strategy expanding across regions.
The company also launched two products during the quarter: SkyHopper Tactical, a wearable software-defined communications solution for dismounted teams in contested environments, and SkyHopper Multiband, a next-generation communications platform with software-defined band selection.
Asked about manufacturing and foreign exchange exposure, Elkayam said current production is in the Philippines and Israel and is conducted in U.S. dollars. He said Mobilicom is building production capacity in the United States in response to Pentagon requirements and expects a larger U.S. footprint to reduce foreign exchange impact over time.
Elkayam said the company is selecting U.S. contract manufacturers and conducting on-site visits and final terms discussions. He said Mobilicom is expanding long-lead inventory purchases above its initial plan because of stronger-than-expected demand signals from tier 1 customers.
About Mobilicom NASDAQ: MOB
Mobilicom Ltd. NASDAQ: MOB is an Israel-based technology company specializing in secure communications, cybersecurity and edge computing solutions for unmanned systems, ground vehicles and critical assets. The company's core platform integrates advanced encryption, artificial intelligence and resilient networking capabilities to protect data and command-and-control links in contested or degraded environments.
The company's flagship offerings include AerialGuard, a turnkey cyber-hardened communications suite for unmanned aerial vehicles (UAVs); VehicularGuard, designed to secure vehicle-to-everything (V2X) communications in ground systems; and MissionCore, a software-defined command-and-control framework that delivers real-time situational awareness and autonomous decision support.
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