The company’s revenue dropped to $11.5 million for the quarter, down from $12.5 million in 2025. This performance aligns with a broader strategy to stabilize production systems and integrate new manufacturing lines. CEO Eli Yaffe described the current phase as a necessary period of structural adjustment, noting that while the installation of a new PCB plating line and an ERP system are underway, the financial benefits have yet to materialize in the bottom line.

Operating expenses and manufacturing hurdles pushed the company into a gross loss of $1.0 million, a stark contrast to the $3.0 million gross profit seen a year prior. While the firm successfully generated $0.7 million in net cash from operating activities, the bottom-line figures remain pressured by the ongoing costs of upgrading its facility and organizational framework. Management maintains that these capital-intensive steps are intended to fortify the company for future scalability, though the timeline for returning to profitability remains tied to the successful completion of these operational upgrades.