What's not to like about Next Vision's financials?
Next Vision, a maker of stabilized cameras for UAVs, reported strong quarterly results: revenue of $88.2 million, up 138%, and net profit of $53.6 million, up 130%. The company raised its annual revenue forecast to $355 million. Despite this, the stock fell 7% due to a drop in gross margin to 65% and a decline in order backlog. Management attributes the margin decline to increased market share, while managers and analysts are divided in their assessments.
Next Vision Stabilized Systems, a producer of stabilized cameras for UAVs, released its second-quarter financials on Monday, showing substantial growth in revenue and profit. Revenue reached $88.2 million, up 138% from the same quarter last year, while net profit rose 130% to $53.6 million. The company raised its annual revenue target for the second time this year, now expecting $355 million for 2026, a 111% increase over 2025. Despite these strong results, the share price fell 7% on Monday, with market sources pointing to a decline in gross profit margin to 65% from nearly 72% and a drop in the order backlog by over $20 million to $265.2 million. Management explained that the margin decline was due to increased volumes and a focus on market share, with some offset expected from operational leverage. An analyst noted that the company did not clearly address future margin expectations. Kobi Segev of Achord Investment Management called the report good, noting the company's strong growth and positive environment, but acknowledged the stock is not cheap. The share price has fallen 45% in the past three months, bringing market cap to NIS 20 billion, down from a peak of NIS 36 billion in March, amid profit-taking and defense sector weakness.