Senstar Technologies Q4 Earnings Call Highlights

Key Points

• Senstar reported full-year 2025 revenue of $36.4 million (up ~2%), a gross margin of 65.5% and net income of $3.2 million, finishing the year with $22.5 million in cash and no debt, although operating income and EBITDA declined due in part to higher G&A and transaction costs tied to the Blickfeld deal.
• Fourth-quarter revenue fell to $8.8 million, producing an operating loss and minimal EBITDA as management cited U.S. government project timing and a non‑recurring European telecom project as the causes, stressing these were timing issues rather than weaker underlying demand and that most delayed projects remain active and should convert in 2026.
• The acquisition of Blickfeld (completed early 2026) and stronger Lidar adoption position Senstar to expand addressable markets across security use cases, broader on‑site coverage, and non‑security applications (e.g., volume and traffic monitoring), while management emphasizes pipeline growth, conversion focus and cost discipline for 2026.

Senstar Technologies NASDAQ: SNT reported full-year 2025 results showing modest revenue growth, higher gross margin, and continued profitability, while management said fourth-quarter performance was pressured by project timing issues—particularly U.S. government-related delays—rather than a deterioration in underlying demand.

Full-year 2025: revenue growth, margin expansion, and profitability

CEO Fabien Haubert said the company “continued to deliver solid full-year performance with growth in revenue, margin expansion, and continued profitability.” For 2025, Senstar posted revenue of $36.4 million, gross margin of 65.5%, and net income of $3.2 million, while ending the year with $22.5 million in cash and no debt.

CFO Alicia Kelly said full-year revenue increased 2% from $35.8 million in 2024, driven by North America and LATAM and strength in the corrections and energy verticals. She added that gross margin improved about 150 basis points year over year, attributing the increase largely to “balanced product mix, product redesigns, and efficiency gains in our material purchase process.”

Operating income for 2025 was $3.0 million, down from $3.9 million in 2024, which Kelly linked to “slower revenue growth” and higher general and administrative costs tied to the Blickfeld transaction and the closing of a foreign entity. EBITDA was $3.7 million compared to $4.6 million in 2024, while net income attributable to shareholders rose to $3.2 million ($0.14 per share) from $2.6 million ($0.11 per share).

Fourth quarter: project delays and comparisons weighed on results

In the fourth quarter, Senstar reported revenue of $8.8 million, down from $10.2 million a year earlier. Haubert said the quarter faced “more challenging conditions than anticipated,” and attributed the results to “several non-recurring and timing-related factors, not a change in the underlying demand.”

Management pointed to delays in U.S. government projects, mainly in the corrections vertical, following a U.S. federal government shutdown. Haubert also cited the impact of a “non-recurring European telecom utility project,” which he said is expected to “convert to further revenue generation in 2026.” Kelly described the year-over-year revenue reduction as tied to project timing and government delays, “positively offset by stronger performance from the energy vertical.”

Fourth-quarter gross margin was 61.5% versus 64.5% a year earlier. Kelly said the change was driven by “less favorable product mix” as well as tariff impacts associated with a U.S.-based project, lower revenue, and overhead expense savings. Operating expenses rose to $5.6 million from $5.1 million and represented 63.3% of revenue versus 50.2% in the prior-year quarter, which Kelly said was primarily due to a 30% increase in G&A from “transaction costs associated with Blickfeld acquisition.”

Senstar posted an operating loss of $159,000 compared to operating income of $1.5 million in the prior-year quarter, and EBITDA of $35,000 compared to $1.6 million. Net loss attributable to shareholders was $33,000, or $0.00 per share, compared with net income of $1.6 million, or $0.07 per share, in the year-ago period.

Regional performance: U.S. timing issues offset by Canada; EMEA comparison headwind

Haubert said the U.S. and LATAM were the strongest markets for the full year, supported by corrections and energy, and that revenue in the region increased 5% for the year but fell 20% in the fourth quarter due to government funding delays. He said “most of those projects are still alive,” describing activity that reinforced management’s view that the weakness was largely timing-related.

Canada was a standout, with revenue up more than 110% in the fourth quarter and 22% for the year, driven by wins in corrections and utilities, according to Haubert. EMEA delivered low single-digit growth for the year, but declined 24% in the quarter due to a difficult comparison that included a large telecom project in the fourth quarter of 2024 that did not repeat, Kelly said. Haubert added the telecom utility project is expected to deliver revenue in 2026, noting it was multi-phase and later phases were delayed for reasons outside Senstar’s control.

In Asia-Pacific, Haubert said performance improved in the fourth quarter with 21% growth. On a full-year basis, APAC declined 9%, which management attributed to the impact of a material, non-recurring project in the second quarter of 2024.

Kelly provided the geographical mix for the fourth quarter of 2025 as North America 44%, EMEA 41%, and APAC 15%. For the full year 2025, revenue mix was North America 49%, EMEA 36%, APAC 14%, and Latin America 1%.

Lidar and Blickfeld acquisition: growth paths and broadened applications

Haubert characterized 2025 as “a breakout year for Lidar adoption and customer engagement across multiple verticals,” saying Lidar has increasingly been deployed alongside traditional solutions “with no cannibalization effects.” He said Lidar is expanding the company’s target market and use cases across verticals.

Haubert said the acquisition of Blickfeld, completed at the beginning of 2026, was intended to strengthen Senstar’s competitive position and enable the company to capture growth in Lidar-related markets by leveraging Senstar’s sales and technical footprint. In response to a question from Oppenheimer’s Ted Liddy, Haubert outlined three growth paths for Blickfeld’s technology:

• Security use cases within Senstar’s current verticals, including opportunities where end users choose alternatives to fence-based solutions.
• Expanded coverage within existing customer sites, such as “roofs or corridors or outside zones without a fence.”
• Non-security applications, including volume monitoring for bulk materials and traffic applications such as road-cross monitoring and tunnels, where Haubert said Blickfeld already has a footprint.

On costs tied to the Blickfeld transaction, the operator clarified during Q&A that Senstar incurred costs through 2025 and expects “some cost still in the future period, but not substantial.” Haubert also noted that fourth-quarter Lidar results reflected Senstar sales from an existing OEM/technology partnership, and that Blickfeld’s sales were not included in fourth-quarter results.

Outlook themes: pipeline growth, conversion focus, and cost discipline

Looking ahead, Haubert said the company entered 2026 with an expanding pipeline and is focused on converting activity into revenue while remaining “disciplined with cost.” He cited continued activity across data centers, utilities, energy, and Lidar, and said Senstar is making progress with new key accounts and expanding relationships with existing customers. In Q&A, Haubert said the delayed U.S. projects Senstar identified remain active: “All of them are moving forward.”

Senstar also addressed a question about a foreign-office closure, with Haubert saying it related to the relocation of the company that occurred in early 2025 in Canada and the closing of a legacy entity tied to the Magal office. The operator said headcount increased by 28 with the acquisition, bringing the company to “around 160 people with Blickfeld.”

About Senstar Technologies NASDAQ: SNT

Senstar Technologies is a global provider of physical security solutions, specializing in perimeter intrusion detection and video security management. The company develops and markets a comprehensive suite of sensors and systems designed to protect critical infrastructure, commercial facilities and government sites from unauthorized access and potential security threats. Its core technology offerings include fiber optic sensing, fence-mounted detectors, microwave barriers and advanced video analytics, which can be deployed independently or fully integrated into existing security frameworks.

Among its flagship products are fiber optic perimeter intrusion detection systems that use optical sensing to detect disturbances along fences or perimeter lines, as well as active infrared and microwave sensors that create virtual detection zones.

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