Strategic Performance and Market Dynamics
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Revenue growth of 8% year-over-year was primarily driven by strong momentum in EMEA and APAC, particularly within the utilities, data centers, and airport sectors.
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The Blickfield acquisition is already yielding synergies, with the combined LiDAR business growing nearly 100% year-over-year and representing 20% of global sales.
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Management attributes the return to profitability to the successful integration of Blickfield, which reported positive EBITDA in its first full quarter under Senstar.
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U.S. performance was hindered by a 14% revenue decline due to project delays in the corrections vertical following a late 2025 federal government shutdown.
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Strategic positioning of LiDAR as a competitor to thermal camera solutions is expanding the total addressable market without cannibalizing existing product lines.
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Operational focus remains on improving revenue conversion and leveraging the Senstar partner network to accelerate Blickfield's technology adoption.
Outlook and Strategic Initiatives
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Management expects a recovery in the U.S. corrections market during the second half of 2026, noting that no major projects have been canceled.
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Two major product launches are scheduled for late Q3 2026: Embedded FiberPatrol for short-distance applications and the Symphony workflow engine to drive recurring software revenue.
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The company anticipates sustained growth in EMEA and APAC, supported by a strengthening pipeline and new regional sales leadership in the Middle East and U.S.
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R&D expenses are expected to stabilize at approximately $1.3 million per quarter following the full integration of the Blickfield team.
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Future profitability goals rely on cross-selling LiDAR into existing security markets and expanding into volume and traffic monitoring.
Financial Adjustments and Risk Factors
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Operating expenses included $1.2 million in costs specifically associated with the Blickfield acquisition and integration.
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Gross margin fluctuated to 64.2% from 66.1% year-over-year, which management attributed to a shift in product mix rather than structural pricing issues.
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Cash reserves decreased to $8 million from $22.5 million primarily due to the 10.4 million Euro cash-funded acquisition of Blickfield in February 2026.
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Financial income was impacted by non-cash accounting adjustments related to the valuation of monetary assets denominated in foreign currencies.
Q&A Session Highlights
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Revenue attribution between legacy Senstar and newly acquired Blickfield
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Management declined to provide a specific breakdown, stating the company is now operated as a single entity with integrated sales teams.
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Confirmed that both the original Blickfield team and Senstar's existing sales force contributed significantly to the 100% LiDAR growth.
Sustainability of increased Research and Development expenditure
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The $1.3 million quarterly R&D spend is considered the 'new normal' for the group following the integration of Blickfield's team.
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Management is actively seeking government grants in Canada and Germany to potentially offset these costs in future periods.
Recovery timeline for the U.S. corrections vertical
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Management expressed confidence in a second-half recovery based on 'initial signs' of activity resuming.
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A new VP of Sales for the USA has been hired to diversify revenue streams into utilities and data centers to mitigate future vertical-specific volatility.
