Mobilicom Limited (MOB) 2026 Q2 法說會逐字稿

Greetings and welcome to the MobileCom Limited first half 2026 financial and operating results. (Operator Instructions) I would now like to turn the conference over to Liad Gelfer, Director of Finance.

Good afternoon, everyone.

My name is Liad Gelfer, Mobilicom Director of Finance.

Welcome to Mobilicom's First Half 2026 Financial and Operating Results Conference Call. Joining me today is Oren Elkayam, Mobilicom's Founder and Chief Executive Officer. Earlier today, Mobilicom issued a press release announcing its financial results and business highlights for the six months ended June 30, 2026.

A copy is available on the Investor Relations section of the company's website. Before we begin, please note that today's call includes forward-looking statements under the Private Securities Litigation Reform Act of 1,995. Actual results may differ materiality, as described in our SEC filing, including our most recent Form 20-F. This statement speaks only as of today, and we undertake no obligation to update them.

We will also refer to non-IFRS measures reconciled to IFRS in today's press release. Summary of the first half and a brief introduction from Mobilicom, financial highlights and our equity and cash position, first half achievements and design wins, progress against the 2026 outlook, our U.S. Defense market position, CAO closing statement and when we close with Q&A session. This webinar is being recorded and will be available for replay in. With that, I would like to turn the call over to Oren Elkayam, Founder and Chief Executive Officer. Oren, please go ahead.

Thank you very much, Liad, and good afternoon, everyone. It was a good quarter with continuous execution of our vision.

We can hear that we had about $1.2 million in revenue for the second quarter. I would like to emphasize that 100% of our revenue this period were from off-the-shelf product sales to customers, all from enterprise, defense mainly customers, and majority of that came from the US market. They maintained a very high gross margin with our hardware solution in addition to the software licensing. They maintained strong financial cash position with nearly $16 million cash in hand. Which is adjusted numbers.

We launched two products in the period, the Scarper Mood Band and the Scarper Tactical, and one, two new designing based on those products, one of which is with the Israeli Tier 1 player in this market for a new short to mid-range loitering Indonesian platform, which we anticipate that will have large volumes in the future.

Ongoing monthly delivery cadence continues with our US Tier 1 customer for the US Department of Full Program of Record and we also have seen the regulation by SEC and others, we received SEC trusted drone exemption status for all of our products, fiber, software and the hardware solution.

So I think that based on those achievements, I want to thank our leaders and employees worldwide for the execution behind these results and a special thanks to Yossi Segal, our co-founder, for his continuous innovation and technology leadership.

For those joining for us for the first time, the next two slides will give you some short overview of. With Mobilicom and company overview at the glance. So in high-level terms, Mobilicom offers the essential IP-based high-value cybersecurity software and hardware solution, or subsystem you can call it, for drones, robotics, and autonomous systems and manufacturers.

Those are proprietary solutions that are powering, connecting, securing, safeguarding the autonomous systems. Mobilicom is not doing the drone. Mobilicom is doing the GUTS, the important IP-based subsystem to drones, robotics and autonomous systems. We can say that investing in Mobilicom and Mobilicom itself is in the convergence of three major trends that we see in the market today. One is drone. Second is cybersecurity. And third is robotics autonomy, which positioned the company extremely well, the growth that is expected from those markets.

In this slide, you can see Mobilicom has two essential two segments. One is hardened hardware. Hardened is, in this case, meaning secured, more challenging to hack. And then the cybersecurity and software business. Mobilicom hardware solutions were certified as US-approved products by the Department of Work and the US agencies. We have the WOS Select, as you can see on the logo below. We have the trusted cyber certification. We obtained the NDAA validation following testing, not with first declaration. Which is much more progress. We achieved the equipment frequency allocation for the Department of War under the DD 1,494 and the newly released FCC trusted drone that was a new regression that was initiated this year to build and promise a U.S. Ecosystem for the future.

Our business model is very vivid. We get first. Put in the door, we secured hardware, which yielding 50% to 60% gross margin, which is very steep for hardware, and then we cross-sell the cyber or software solution, which can get to up to 90% gross margin and has minimal competition today. Since we are already a hardware supply to drones and autonomous platform, the platform. Maker can incorporate cybersecurity or software for Mobilicom without undergoing any new procurement cycle. Mobilicom in the cybersecurity for small size autonomous system is the leader in this market and well positioned to the success that is built on the fact that new standards are required and the changes coming in the coming quarters.

The first half of this year shows that the model is working in both directions. And the clearest example is the AI-enabled autonomous weapons system design that we had recently, where we sold both hardware and software and were selected together from day one. And I will come back to it at a later stage.

So I will now hand it over to Liad for the first half financial highlights.

Thank you, Oren.

The detailed figures are on the slides and in today's release, so rather than just read them, let me give you the four things details. First, the shape of the house. The majority of the revenue landed in the second quarter, that is what the problem moving to a monthly delivery looks like.

During the quarter, we entered the monthly delivery cadence. Under the program of record, and we expect the cadence to continue through the second-half. Second, backlog it is lower than the end of the first quarter precisely because it shipped under monthly delivery cadence. Backlog behaves as fruits put rather than a stock of waiting orders.

Orders received since the first half year end are already rebooting it for the second-half of. Fair, margin held with this band our horror model is built on. Even as production volume steps up, we are scaling without giving away the value of the IT and fourth, the cost side.

Our EBITDA loss works up to roughly half a million dollars a month in line with our adjusted cash burn. The most difference between the two is the working capital we deliberately built for second-half delivery. Both measures tell the same story, a controlled target investment in production readiness ahead of Tier 1 volume. The at-rest net loss is a much larger figure, but the substantial majority of it is non-cash, share-based compensation, currency movement, and the warranty valuation. And the full conciliation was in today's release.

Let's move to the equity and strong cash position slide.

On the equity side, the capital structure on this slide is deliberate trading simple and everything is visible, one class of ordinary shares, a non-warn position and no leverage of any kind, no debt, no facilities, no ATM program. Two points worth taking away. The cash that came in during the half arrived from holders exercising instruments they already have, not from any new issuance and the warrants still outstanding represent additional potential capital of $12.6 million already built into the structure, sitting on the top of the cash we owe today, totaling $28.5 million. Put together, the balance sheet gives us a multi-year runway and the freedom to execute the second-half from spring.

Back to you.

Thank you.

I think that we can see here the focus on six achievements that we are presenting. I will not review them one by one, but I would like to give you my thoughts on where we should focus with those lives and achievementsWe expanded, one is we expanded onto new platforms through two different routes. The lower 3 munition wing came through the Tier 1 relationship we already hold, a new platform category for us with the potential to scale alongside when the program advanced to mass production.

Which shows capability to have a strong relationship with the customer, especially tier one, and then the success of first platform is yielding the expansion to a second platform, in this case, longer range, different mission, and then Mobilicom is working across the board with multi-platforms at the same tier one manufacture, and that's important execution for us.

On the same point of expanding to new platforms, we have the AI-enabled autonomous system, Wynn, placed four of our products, two software, which is the ICE, electronic warfare resistance solution and the OS3 cybersecurity for autonomy and two hardware, the Scarper Datalink and the 10-inch mobile ground controller, all together, so one onto a single new. Program spanning drone and ground robotics with the first order already delivered and that is a clear proof that we sell an integrated stack rather than components and integrated stack means substantially more mobility component, more value on every platform and retention rate of the customer is the highest you can achieve. And that's part of our unique position in the market, which is unmatched by any other player. Second point I would like to emphasize is the speed. We have seen the release of multiband and the tactical hardware products as part of the Scarper family, and We have done that in Q1.

In this quarter, we showed that those design wins. Or converted to initial orders and were converted to design wins and initial orders in the same half of the year, fastest conversion we achieved so far. And that shows that we can create new innovation to maintain the gap or to progress with the market and be converted to design wins and delivery for first implementation within customers. Third point that's worth emphasizing is the US engine. Kept compounding, monthly delivery cadence under the US Marine Corps program through our partner advancing also on the Army Lasso validation phase and our trusted drone position secured with onshore plan execution.

So all of those are strengthening our US position for the future. And the initial order across the at the Pacific and UAE and India and the picture is consists more platform, more content per platform and faster conversion from products and innovation to design wings to initial production and delivery to scalability in production that we have with Tier 1.

So this slide is a brief reminder on the outlook framework we presented at the beginning of this year and the two next slides will show where we stand right now. So in this slide, we are just reviewing again what was promised and here is how we executed on this promise and how we progress in the second quarter and the first half of 2026. So on the hardware Tier 1 platform pipelines, those are platforms of Tier 1 manufacturers with hardware solution offering.

So design wings already above the top of the range, including new load-chain munition platform wings for our multiband and tactical that we explained earlier. We can see that initial production current player continue to generate. Follow-on orders and in the ramp-up phase we see one against a goal of two that one has entered a monthly delivery cadence which is important for a company like Mobilicom. In total we have nine tier one customers platforms again a goal which was 8 to 10 and we are entering the second of the year and we are already meeting the target. On the cybersecurity and software side, on the right side, we can see that the engagement continues across the NVIDIA and Qualcomm ecosystem, progressing against the four to six OEM partner goal.

The AI-enabled autonomous weapon system, WIN, belongs here too because a software-led selection with OS3 operating security, safety and data compliance, which are autonomy cybersecurity solution and the ICE software were chosen with our hardware from day one. So We have seen WINs, delivery and soon deployment to this customer as well. On our goals on operational and finance, we have mentioned multiple targets for the year. Of course, the first half, roughly 3,000 units were in motion at different stages. The first 1,000 were already producing the first quarter and ongoing deliveries that started back then and continue now.

Production of another 1,000 commenced in the second quarter and the long lead items procurement for additional 1,000 accelerated in response to the world's supply chain constraints. Those long-lead items stock will help us and will be used to support our first US production run in 2026. And we maintain a backlog unit capacity that will expedite delivery on customer demand that we anticipate that will ramp up from quarter to quarter. On the US manufacturing footprint, significant progress was made this quarter.

We have mapped multiple manufacturers across the United States. We shorted this to five. Contenders against benefit tax and location criteria. We conducted on-site inspections and capacity and capabilities review with those players. We narrowed down the field to two last candidates and right now we are in the final stages of entering. As we promised the Pentagon, which is closely monitoring our progress in this field. And on the program of record, we moved to an ongoing monthly delivery cadence, driving the first half revenue ramp-up that you see for Q2. So, I think that in this slide that we presented in the beginning of the year, we presented this position in details on our first quarter call, but I will keep it brief and updated as following. For our OEN customers, we are embedded across US branches and we hold five US endorsement and validation shown on the slide, which without those products cannot be participating in US federal.

Department of Four and other programs. Two updates are worth highlighting since the last call. First, our aggressive U.S. Production built-out progress supports both our growth plans and keeping the SEC onshore plan effective and on track. Second, we were selected to showcase our secured autonomy solution at the very, I think that one of the biggest Department of Four and.

Federal drills in the United States and Northern Strike 2026, which is a premier department of four exercise, putting our technology directly in front of military end users and decision makers, which build a brand and later on will build new programs and operation with those end customers. So before we take questions, I would like to summarize the presentation with key reasons why Mobilicom is compelling opportunity today. And the shortlist of the key items are we have an ongoing monthly delivery cadence to our US1 customers and department of four, and that's seen in the Q2 delivery and revenue.

The designing engine running ahead of plan. We are in the goal for the full year target, which were executed in the middle of the year with 9 Tier 1 customer platforms on the book. We integrated stack. The integrated stock position is proven, We have seen software and hardware selected together been giving us bigger position in the design, larger dollars for every platform in percentage and value and rising content on every platform of Mobilicon, which also leads to retention rate, which is very high with this partnership.

The regulatory mode, trusted drone status maintained through an execution of onshoring plan with the US manufacturing partner selection at the final stage of progress, which is important per the insights we are getting from the Pentagon that is reviewing and working with us on that. New product monetization immediately. We launched new products. We won two design wings with. Initial orders to support the integration and we delivered and that shows capability to convert faster and move along phases faster. And we have a Fortress balance sheet, debt-free, multi-year runway, warrant exercise adding additional cash in hand to support our future growth. And I think that the market is moving forward us. The new cybersecurity mandates that were released in the recent months are converging on exactly what we build, and that's important for our future.

I would like again to close my closing statement with thanks to our team worldwide, Yossi, my co-founder, partner, and our technology, business, and operational teams in U.S., Israel, and Australia. And I think that this is the time to get back to you for the Q&A session.

Thank you, Oren.

We will now move to the question-and-answer session.

We appreciate your help here.

(Operator Instructions) Mike McCormack, Water Tower Research.

Hey guys, thanks. First quarter revenue reflected your customer moving into. Program of record ramp-up. How did that convert in the second quarter?

Thanks for the question, Mike. So actually, it converted exactly the model they choose.

Second quarter revenue was approximately $1.2 million because delivered under the U.S. Program of record moved on to a monthly case. That also explains the backlog movement, okay? Orders shift rather than just that but the second quarter tells us it is not a number to extrapolate, okay? It is what we entered is that actually we entered a monthly delivery credit, and this is what we expect the credit to continue.

That's the short answer to that.

Okay, if I can follow-up, you have runway, no debt, and you terminated the ATM. Under what circumstances would you raise capital?

So, we don't need to raise capital to actually the plan we have described today.

We hold a multi-runway in the current burn. We carry not that of any kind, and the ones still outstanding represent roughly $20.6 million of additional potential funding on top of the cash that we already hold. So the bar for new capital is actually an opportunity, not a necessity. Something that, materiality, accelerate the plan, M&A, and so on. After that, our focus is converting the balance sheet we have into production, deliveries, and of course the best, eventually to positive questions.

I hope that answered your question.

Yes, it did.

Thank you.

Barry Sine, Litchfield Hills Research.

Hey, good afternoon, Oren and Liad. Congratulations, really very good momentum.

From 2Q versus 1Q. A couple of questions if you don't mind. First of all, I want to talk about the design wins.

You had a great side where you talked about what you did last year, your goals for this year, and you know what you have now. What is the timeline typically when you get a design win? In order to get to initial low rate production and then to volume revenue, which it sounds like you are at on one program of record already.

Yeah, I think I will take that. So thank you, Barry, for the question.

I think that we managed that in a three-stage pipeline, and it is exactly how the slide that we are showing in our presentation showed. Earlier how it is built. So the first integration and qualification stage is following the design win that we are winning. We actually actively supporting the original equipment manufacturers, the OEMs, during their platform integration, validation and qualification.

Historically, this initial OEM platform designs require lengthy timelines because it was the first time that they built first systems to the market. Today, the development titles are significantly faster, typical span over several months.

Several months, especially for those experienced audience with the existing platforms already in the market. So the actual timeline remains dependent on the customer program schedule, of course, but it is much faster than what We have seen in the past. The second phase is initial production orders from qualification. Initial production orders typically began at a low rate. These early units enable the OEM or the manufacturer of the autonomous platform to successfully deploy the platform, promote the programs, and secure broader sales to the end customers, which are usually governments around the world, typically spanning few quarters. So the timeline here is multiple quarters to deploy and progress into larger and then volume scaling, which is the third phase, production volume scales according to the customer program milestones rather than our own activity because usually we are already faster and earlier than our partners, the large conglomerate and OEMs, which is standard for embedded defense system platforms.

We can see that the five new wins from this house are new fuel entering on top of the funnel that we built earlier, which some of them are, as you mentioned, already in volume scalability and ongoing monthly delivery, and some of them are already in initial production run rate.

Okay, that's helpful.

As you are selected by a drone manufacturer, I wonder if you can talk about the factors that go into that. Is it price? Is it technology? Are there cybersecurity testing? And who are you competing with? What does the competitive environment look like? How do you stack up price-wise, technology-wise, et cetera?

I think that I can summarize it with multiple key decision-making items that we hear again and again from those OEMs and manufacturers of autonomous platforms. First is the ability to deliver the performance they need in contested environments, which is the most important capability they want to able to achieve range, resilience, electronic power resistance, and so forth that is crucial for their success of the mission that their platform is designed for.

The second criteria that we see is compliance. Especially in the US, we see that NDAA, blue UAS, and now the new FCC Trusted Drone status. Manufacturer that is choosing us inner a qualified company with solution and approved supply chain rather than building one by himself, and that reduced the risk on their end and reduced the headache from their from their side.

The third criteria that we see is price and supply capacity that can support mass market and customer program scalability for the next phases of market programs so price and supply capacity are becoming importantly because as you scale in volume, they expect low prices to maintain that, which you can achieve by producing higher quantity, obviously, and they would like to see your US approved. Supply chain capacity to maintain what the US government would like to achieve. And by the way, we also see the same decision making of local supply chain or supply capacity capability in other places. We see that in Israel, we see that in the European market. We have seen that, for example, in Canadian market that anticipate and request a future program will be with local.

Capacity to volume production as well and the fourth thing which is we see recently is the integrated staff. Very few suppliers can put the security, secure data link and electronic call for resistance into the platform together with cybersecurity on the table as one offering. So in embedded drone cybersecurity.

Where we are positioned as leaders, we are facing very limited direct competition today, so to summarize that, we see mainly key force items, which is performance in real combat environment, compliance with regulations that are needed, for example, by the US government.

A price and supply capacity to be able to scale later based on the new regulations and integrated stock that can accelerate some of the customers and OEMs and here it is important that we shared, we believe that the platform development. Cycles accelerate and we will see that any new platforms will be initiated every 12 to maybe 24 months between generations, which means that it is driven by frequent modifications and program-specific adjustments and platform manufacturers will drive immense value from working with a one-stop shop partner.

This consolidated strategy ensures, advantage in time to market, in operational performance and obviously price, which is also expected and here I think that this is one of the two critical differentiation factors from Vilicom. The first one is the cybersecurity across the board and second is building the position of one-stop shop with hardware, software and cyber capability that can come as single stack that can spend generation and platform faster. And the ideal partner for the largest onion. So those are the critical aspects that we see when evaluated by different customers.

Okay, that's great. And then my last question.

you have talked about the two programs of record, OPFL for the Marine Corps, and then the LASSO program where you have one of your customers moving through for qualification. The other program that I want to ask about is Drone Dominance, and I think that came out last year with the first phase. They're moving into the next phases, and there's new requirements, some of which look like they may really.

Require some of your products, how are you positioned for the new requirements as that program, Drone Dominance, evolves with your product line?

Thank you.

Great question. Yes, the Drone Dominance Program, in short, DDP, is a departmental four program which is using alternative.

Let's say, procurement processes and their goal is mainly to learn from the things that were done in Ukraine and how they build an extensive industry over a short time or period and scale to millions of units in production on a yearly basis. So they would like to use that program to build a US ecosystem for the smallest.

Highest volume of drones, but yet the lower value of drones, which are called SPV, first person view class of drones. Those are very small cheaper drones, which are below the group one, group two platforms we are serving today. The DAP phase one was, as you mentioned, started earlier this year and it was purely price driven and validation. Simple mission with minimal requirements, just let's understand who is the ecosystem participants and can help America scale on that. And that was the initial phase.

Currently, not where RIP plays, so it wasn't relevant for Mobilicom because of what they required. There was no pure play for Mobilicom over there. But what matters is what happens next. The second phase. Phase two of the DDP, Drone Dominance Program, which is the selection is underway now.

He said the requirements from simple analog data link to secured encrypted digital communication, which is exactly where the Scarper family of solutions fits today and signals that the mass production will also require compliance to some cybersecurity.

And on that, can you meet the price requirements? Obviously, phase one with low price drone, you have very sophisticated cybersecurity capabilities. Can you meet the military's expectations in terms of pricing for phase two on drone dominance, do you believe?

Going into the future.

So every step of the program evaluation, secure digital data links, certified vendors, American manufacturing, cybersecurity, all of them move towards our existing position. So for the SPD market segment, which is, yes, showing incredible numbers of volume under this program that intend to build this co-system in America. But very competitive low-value drone, which is a very small one. So for this SEP market segment, it provides optionality that we can choose to pursue if we want to, especially as they are moving more and more to Mobilicom capabilities as mandate for the future, where we are.

We are very closely monitoring this emerging U.S. Market trends and the DOW Department of War resolutions while carefully identifying our unique selling point for this market as it is a very competitive area demanding lower prices but offering large opportunities and quantities and that.

Yes, creating a big bug around the market, but it is also important that you can generate from that a sustainable company with gross margin revenue and scalability and not entering into losing fundamentally losing money over the ambitious plan. So we are glad with the new resolution that came and brought the requirements towards Mobilicom's offering in different elements.

We believe that Phase 3 and Phase 4 in 2027 will be much more appealing to what we have to offer, and we are yet to decide if we are going to take and choose these lower-end high-volume, low-cost platforms and target that with partners. But there are activities that we are doing under that market segment to fortify our unique selling point for that.

Okay, thank you very much.

Yeah, do we have more time for additional patience, maybe?

We have reached the end of the question-and-answer session.

I would like to turn the floor back over to Liad Gelfer for closing comments.

Yeah, I think we can have the last one, another one that we just received. Sorry for raising it after we close, but we close it after that, of course. Okay, so the question we just received, the final question right now.

If the FCT trusted status and the tier one wins enhanced, what are you most focused on over the coming quarters?

There are multiple things that keep us busy on the coming quarters.

I think the first one is assisting and advancing our current recent designing with large OEM manufacturers. Who are often being very busy and have limited resources by guiding them through integration and validation process towards initial production and identifying first deployment customers that they can achieve because that will progress us as their partner to larger programs in the next phases faster than later. I think the second thing that keeps us busy is delivering the second-half. By maintaining the monthly cadence and encouraging new orders from the existing audience that are in this production.

Third is finalizing the US manufacturing agreement and building this US production capacity, which is a significant position as indicated by the Pentagon to meet, first, the requirements in talent but be part of the. Very small number of ecosystem players that can meet the entire requirements of the DOW and the federal market in the United States, which we aim to accomplish and deliver first production run in 2026. And fourth, I think deepening our software layer, the OS3 cybersecurity for totaling. And the secured autonomy framework is the new cybersecurity requirements move into programs because that is where the higher margin recurring parts of licensing model of our solutions live and that unique position that we have versus others and we are leading this market position. So I will say that those are the key four items and all of it is funded from our current balance since we have. With the same discipline bend rate that we are continuing to enforce over the last year.

So that's our focus for the coming quarters.

Thank you, Oren. I believe that concludes today's call.

A replay will be available on ir.mobilicom.com.

For any follow-up questions, please contact Chris Donovan, our head of investor relations, chris.donovan@mobilicom.com.

Thank you for joining us and thank you for your continued interest in Mobilicom. Have a great day.

This concludes today's teleconference. You may disconnect your lines at this time.

Thank you for your participation.