**Summary of BATM Advanced Communications Ltd. Full Year Results for 2025**
**Financial Highlights**
**Revenue** Increased to $123.2 million (2024: $117.3 million), with a 9% growth on a comparable basis (excluding contributions from sold businesses in 2024).
**Gross Profit** Rose to $40.1 million (2024: $36.8 million), with a gross margin of 32.5% (2024: 31.4%).
**Adjusted Operating Profit** Improved significantly to $14.7 million (2024: $3.8 million).
**Adjusted EBITDA** Increased to $18.9 million (2024: $8.1 million).
**Cash and Short-Term Investments** Reduced to $23.4 million (2024: $31.6 million) due to working capital changes.
**Strategic Execution**
**Streamlining Focus** Sold four non-core businesses during 2025 and a fifth post year-end for a total of $24.4 million, reducing complexity and focusing resources on high-growth, high-margin networking and cybersecurity markets.
**Diagnostics Business** Turned around proprietary diagnostics business, achieving adjusted operating profit of $0.1 million (2024: $1.8 million loss). Diagnostics activities reclassified as Non-core.
**Enhanced Collaboration** Strengthened integration between BATM Networks and BATM Cyber, including joint sales and platform development.
**M&A Exploration** Continued exploring opportunities to enhance core capabilities through mergers and acquisitions.
**Operational Highlights**
**BATM Networks** Revenue grew 36% to $11.6 million, driven by strong pipeline and new product launches. Secured significant orders, including a multi-million-dollar deal with a Tier 1 Mexican telecom.
**BATM Cyber** Revenue declined to $8.3 million (2024: $13.1 million) due to exceptional 2024 orders but achieved milestones like delivering customized encryption platforms for commercial markets.
**BATM Diagnostics** Revenue increased to $47.5 million, with a focus on reagent sales improving gross margins. Sold diagnostic distribution business (AMS) for $14.1 million capital gain.
**CEO Commentary (Moti Nagar)**
Highlighted 2025 as a transformative year, with divestments and strategic focus on networking and cybersecurity positioning BATM for long-term growth. Emphasized strong pipeline and integration efforts, with optimism for 2026 performance.
**Outlook**
Expects significant growth in BATM Networks and BATM Cyber in 2026, driven by robust pipeline and larger average order sizes.
Plans to reinvest divestment proceeds into enhancing collaboration and integration between core businesses.
Confident in delivering strong underlying growth in 2026 and sustainable growth in the medium term.
**Key Financial Metrics (Continuing Operations):**
**Net Loss** $12.8 million (2024: $7.5 million loss), primarily due to write-offs and non-core activities.
**Loss per Share** 2.79¢ (2024: 1.72¢ loss).
**Discontinued Operations Loss** $6.2 million (2024: $14.8 million loss).
**Strategic Divestments**
Sold Celitron, Zer Laboratories, Progenetics, AMS, and Laborator A.M.S 2000 SRL, reducing non-core activities and focusing on core markets.
**Investor & Analyst Presentation**
Scheduled for 16 March 2026, led by CEO Moti Nagar and CFO Lior Miles.
**Forward-Looking Statements**
Results may differ materially due to market, competition, economic factors, and other risks detailed in the Annual Report.
**Conclusion**
BATM’s 2025 results reflect a strategic shift towards high-growth networking and cybersecurity markets, with divestments streamlining operations and positioning the company for future growth. Despite short-term losses, the company is optimistic about its pipeline and integration efforts, aiming for significant growth in 2026 and beyond.