Mobilicom Q2 Earnings Call Highlights

Mobilicom (NASDAQ:MOB) reported second-quarter revenue of approximately $1.2 million as deliveries under a U.S. Department of War program of record moved to a monthly cadence, executives said during the company’s first-half 2026 results call.

Founder and Chief Executive Officer Oren Elkayam said all revenue during the period came from off-the-shelf product sales to enterprise and defense customers, with the majority generated in the United States. He said the company continued to generate revenue from both hardware products and software licensing, with hardware gross margins in the 50% to 60% range and software margins that can reach up to 90%.

Director of Finance Liad Gelfer said the majority of first-half revenue arrived in the second quarter as the program transitioned to ongoing monthly deliveries. While backlog declined from the end of the first quarter, Gelfer said that reflected shipments rather than weakening demand, describing backlog as “throughput rather than a stock of waiting orders.” Orders received after the first-half close are being built for second-half fulfillment, he said.

Cash Position and Spending

Mobilicom said it ended the period with nearly $16 million in adjusted cash on hand. Gelfer said the company has no debt, credit facilities or at-the-market equity program, and characterized its balance sheet as providing a multiyear runway at its current spending rate.

Gelfer said the company’s EBITDA loss was roughly $500,000 per month, in line with adjusted cash burn. The difference between the two measures reflected working capital accumulated to support anticipated second-half deliveries, he said.

He added that the company’s reported IFRS net loss was affected primarily by non-cash share-based compensation, currency movements and warrant valuation changes. Cash received during the half came from holders exercising existing instruments rather than from a new equity issuance, according to Gelfer.

Responding to an analyst question, Gelfer said Mobilicom does not need to raise capital to execute its stated plan. Any future financing would be considered for opportunities such as accelerating operations or pursuing mergers and acquisitions, rather than for operating necessity, he said.

New Products and Design Wins

Elkayam said Mobilicom launched two products during the period: SkyHopper Multiband and Scarper Tactical. The company also secured two design wins based on those products, including a win with an Israeli Tier 1 manufacturer for a short- to mid-range loitering munition platform.

The chief executive said the loitering munition program could support larger volumes if it advances to mass production. He also highlighted a separate design win for an AI-enabled autonomous weapon system that incorporates two Mobilicom software products and two hardware products, including the Scarper data link and a 10-inch mobile ground control station.

Elkayam said the initial order for that program has already been delivered and described the selection as evidence that the company can sell an integrated hardware, cybersecurity and software stack rather than individual components.

Mobilicom reported nine Tier 1 customer platforms during the first half, meeting its full-year target range of eight to 10 platforms. The company said one platform had entered a monthly delivery cadence, compared with its goal of having two platforms in that stage during 2026.

• Approximately 1,000 units were produced during the first quarter, with deliveries continuing into the second quarter.
• Production of another 1,000 units began in the second quarter.
• The company accelerated procurement of long-lead components for an additional 1,000 units in response to supply-chain constraints.

Elkayam said the inventory of long-lead items is intended to support Mobilicom’s first U.S. production run in 2026 and help the company respond more quickly to demand.

U.S. Manufacturing and Defense Market Efforts

The company said it continued to deliver monthly under a U.S. Marine Corps program of record through a Tier 1 customer. Mobilicom also said one of its customers is advancing through the U.S. Army’s LASSO validation process.

Mobilicom has narrowed its search for a U.S. manufacturing partner to two candidates after reviewing multiple prospective manufacturers, conducting site inspections and evaluating factors including tax benefits, location, capacity and capabilities. Elkayam said the company is in the final stages of selecting a partner and that the Pentagon is monitoring its progress on the onshoring plan.

The company also said it received FCC Trusted Drone exemption status across its cybersecurity software and hardware offerings. Elkayam said its products hold several U.S. endorsements and validations that support participation in federal and Department of War programs, including Blue UAS Select, Trusted Cyber certification, NDAA validation and frequency allocation under DD Form 1494.

Mobilicom was selected to demonstrate its secure autonomy technology at Northern Strike 2026, which Elkayam described as a major Department of War exercise involving military users and decision-makers.

Drone Dominance Opportunity

During the question-and-answer session, Elkayam discussed the Department of War’s Drone Dominance Program. He said the first phase focused on low-cost, small first-person-view drones and did not present a direct opportunity for Mobilicom because requirements were largely price-driven and involved basic missions.

However, he said the program’s second phase is shifting toward secured, encrypted digital communications and cybersecurity compliance requirements. Those requirements align with Mobilicom’s Scarper product family, according to Elkayam.

While Mobilicom is monitoring the market, Elkayam said the company has not yet decided whether to target the lower-cost, high-volume FPV segment. He said later phases expected in 2027 could be more relevant to the company’s capabilities, particularly as security, certified-vendor and U.S.-manufacturing requirements increase.

Looking ahead, Mobilicom said it is focused on supporting OEM customers through integration and qualification, maintaining monthly deliveries in the second half, finalizing its U.S. manufacturing agreement and expanding its higher-margin cybersecurity and software licensing business.

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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