Nine-Month Non-GAAP EBITDA Loss Narrows to $0.2 Million from $6.0 Million in Prior Year Period; Net Loss Narrows 86.9%
Q3 Revenue of $4.6 Million Increases 19.8% Year-Over-Year
Nine-Month 2026 Revenue of $15.8 Million Increases 19.7% Year-Over-Year
Q3 Gross Margin Expands to 58.7% from 44.2%; Year-to-Date Operating Expenses Decline 30.1%
Continued Investment in R&D and Business Development in the Defense Sector
AI Native Initiative Demonstrating Strong Returns
Management Forecasts Higher Revenue and Profitability in 2027
MT. OLIVE, NJ – NOVEMBER 13, 2026 – Vislink Technologies, Inc. (“Vislink” or the “Company”) (OTCID: VISL), a global leader in real-time video communications for the defense, public safety, and broadcast markets, today reported financial and operational results for the third quarter and nine months ended September 30, 2026.
CEO Commentary
“Through the first nine months of 2026, Vislink has fundamentally reset its financial profile,” said Mickey Miller, Chief Executive Officer. “Revenue of $15.8 million is up 19.7% year-over-year, gross margin has expanded to 60.3% from 56.6%, and operating expenses are down 30.1%. As a result, our nine-month non-GAAP EBITDA loss narrowed to $0.2 million from $6.0 million in the same period last year, and our net loss narrowed by $6.3 million. In the third quarter, revenue of $4.6 million increased 19.8% from Q3 2025 and gross margin expanded by more than 1,400 basis points to 58.7%. Revenue did decline 22.2% from an exceptionally strong second quarter, reflecting lighter orders in the first half and several U.S. State and Local opportunities that were delayed — not lost — into the fourth quarter, and we recorded a non-GAAP EBITDA loss of $0.5 million for the quarter compared to a loss of $1.9 million in Q3 2025.”
“We are acting decisively to protect liquidity and continuing to improve cost profile through our AI Initiative. Commercially, the quarter brought meaningful progress in our MilGov business. Two Middle East defense customers completed factory acceptance and training at our Colchester facility, our U.S. Federal effort has moved from groundwork to active deals with the U.S. Army and U.S. Navy, and we continue to advance a beachhead partnership in Europe. Our focus for the fourth quarter is converting this pipeline into orders and restoring the profitability momentum we established in the first half of the year.”
Third Quarter and Nine-Month 2026 Highlights
Financial Performance
- Q3 2026 revenue of $4.6 million increased 19.8% from Q3 2025; nine-month revenue of $15.8 million increased 19.7% year-over-year.
- Q3 gross margin of 58.7% expanded from 44.2% in Q3 2025 and 57.4% in Q2 2026; nine-month gross margin of 60.3% compared to 56.6% in the prior-year period.
- Q3 non-GAAP EBITDA loss of $0.5 million compares to a non-GAAP EBITDA loss of $1.9 million in Q3 2025, an improvement of 73.8%.
- Q3 operating expenses of $3.5 million declined 13.2% year-over-year; nine-month operating expenses of $10.7 million declined 30.1%, with G&A expenses down 33.8%.
- Nine-month non-GAAP EBITDA loss of $0.2 million compares to a loss of $6.0 million in the prior year period, an improvement of $5.8 million; nine-month net loss narrowed to $1.0 million, or $(0.39) per share, from $7.3 million, or $(2.95) per share.
- Cash balance of $2.0 million at September 30, 2026, down $2.2 million from December 31, 2025, primarily reflecting inventory build and lower customer deposits; working capital of $5.5 million.
Strategic Transformation and Market Development
- Q3 revenue growth was led by North America, up 37.4%, and Europe, up 35.0%, year-over-year; nine-month revenue from Europe nearly doubled, up 97.7%.
- Two Middle East defense customers — a national guard and an air force — completed factory acceptance testing and training at the Company’s UK facility, with additional orders under discussion.
- U.S. Federal/Department of War business development has moved from groundwork to active deals, with U.S. Army and U.S. Navy range opportunities in motion for Q4, and more than 10 RFI and CSO responses submitted in 2026, and four new channel agreements executed.
- In Europe, the Company is progressing a beachhead partnership with a leading systems integration company toward memoranda of understanding.
New Products and Technology Development
- Continued investment of our R&D resources in Defense and Public Safety product lines.
- Tactical 5G Node: minimum viable product completed in Q3; customer demonstrations and validation are underway in Q4 2026, with production targeted for 2027.
- 5G DOME: generated significant customer interest at IBC 2026, with opportunities across both MilGov and Live Production; customer demonstrations begin in Q4.
- Aero5: completed DO-160 qualification testing, with flammability testing scheduled for Q4, supporting aviation-certified availability for OEM and public safety customers.
- Completed DragonFly V 5G dual-SIM, CLIQ 2, and LinkMatrix 2.1 (SOC 2 Type II); LiveLink/Playout Server encryption work is progressing toward FIPS 140-3 validation, a key differentiator on U.S. defense opportunities.
Marquee Events and Global Partnerships
- Shipped the largest order to date from a leading U.S. aerial video systems provider in the final month of the quarter, and continued to support marquee live sports, motorsports, and broadcast productions across North America, Europe, and the Middle East.
AI Initiative
- Company-wide AI Native initiative targeting improved time-to-market, quality, and customer support at lower cost is showing tangible returns. Demonstrating further efficiencies in engineering, sales, and operations with a goal of increasing revenue per employee to $500,000.
- Legacy CRM fully replaced; the entire sales team is now live on the new AI-enabled CRM and quote-to-build application, time-to-quote has already declined, and AI-assisted quoting goes live in Q4.
- ISO 9001 Stage 1 assessment passed in September, with the Stage 2 final certification assessment scheduled for the end of November; manufacturing cost-reduction initiatives, including in-sourcing box-build to Colchester and transitioning key PCB assemblies to a new supplier, are underway.
Financial Discussion
Revenue
Revenue of $4.6 million in Q3 2026 increased 19.8% from Q3 2025 and decreased 22.2% sequentially from Q2 2026. Year-over-year growth was led by North America, up 37.4%, and Europe, up 35.0%, partially offset by lower revenue from Asia. The sequential decline reflects lighter order intake in the first half of the year, with several opportunities delayed into the fourth quarter. For the nine months, revenue increased 19.7% to $15.8 million from the prior-year period, with revenue from Europe up 97.7%.
Gross Margin
Gross margin of 58.7% in Q3 2026 increased from 44.2% in Q3 2025 and 57.4% in Q2 2026, reflecting improved pricing discipline and lower component and personnel costs, which declined 9.9% year-over-year despite 19.8% revenue growth. For the nine months, gross margin was 60.3% up from 56.6% in the prior-year period.
Operating Expenses and EBITDA
Operating expenses of $3.5 million in Q3 2026 declined 13.2% from Q3 2025 and 3.0% sequentially, with G&A expenses down 11.4% and R&D expenses down 15.2% year over year. Loss from operations narrowed 66.1% to $0.8 million from $2.3 million. The Company recorded a GAAP EBITDA loss of $0.6 million and a non-GAAP EBITDA loss of $0.5 million in Q3 2026, compared to a GAAP EBITDA loss of $2.0 million and a non-GAAP EBITDA loss of $1.9 million in Q3 2025. Net loss was $0.8 million, or $(0.30) per share, compared to $2.3 million, or $(0.91) per share, in Q3 2025. For the nine months, operating expenses of $10.7 million declined 30.1% year-over-year, and EBITDA loss of $0.4 million compares to a loss of $6.6 million in the prior year period, an improvement of $6.2 million; non-GAAP EBITDA loss of $0.2 million compares to a loss of $6.0 million. EBITDA is calculated as loss from operations plus depreciation and amortization; non-GAAP EBITDA further excludes stock-based compensation.
Cash and Working Capital
The Company ended the third quarter with $2.0 million in cash, a decrease of $0.8 million from June 30, 2026, and $2.2 million from year-end. Net cash used in operating activities for the nine months was $2.1 million, primarily reflecting working capital timing, including higher inventories and lower customer deposits and deferred revenue as deposits were applied against deliveries, partially offset by higher accounts payable. During the third quarter, the Company implemented additional working capital measures, including customer deposit requirements on new quotations and reduced inventory purchases. Working capital was $5.5 million and stockholders’ equity was $8.4 million at September 30, 2026.
Business Outlook
The Company’s nine-month performance reflects the structural progress of its cost transformation and margin expansion, while third-quarter results underscore the importance of order intake to near-term revenue.
Several opportunities delayed in the third quarter are expected to close in the fourth quarter. In the U.S. Federal/Department of War market, the Company has active U.S. Army and U.S. Navy opportunities in motion and continues to build its prime and channel partnerships. On the U.S. State and Local front, the Company expects conditions to improve as federal budget delays resolve. In Europe, the Company is progressing a beachhead partnership toward a memorandum of understanding.
In 2027, as new products and programs begin to deploy, the Company expects improved revenue and EBITDA performance, reflecting the operating leverage of the Company’s restructured cost base.
Management remains focused on converting its pipeline into orders, prudently managing working capital and liquidity, and restoring EBITDA profitability through continued cost discipline and the full effect of its AI initiative.
To view the full results, including the financial statements, see the press release (PDF) below.
Forward-Looking Statements
Statements made in this release that are not statements of historical or current facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on our current expectations about future events and are predictions based on our current expectations and assumptions. We caution readers that forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that cannot be predicted or quantified, and, consequently, the actual performance of Vislink Technologies, Inc. may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, our ability to restore and sustain EBITDA profitability, our ability to achieve our 2027 revenue and non-GAAP EBITDA margin outlook, the timing of customer orders and our ability to convert pipeline into revenue, our ability to manage working capital and maintain adequate liquidity, our ability to execute our strategic transformation toward Military/Government markets, U.S. Federal budget dynamics and their impact on defense procurement, our ability to develop and introduce new products and to secure customer orders for such products, competition, and other factors described from time to time in our reports filed with the OTC Disclosure & News Service. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update them in light of new information or future events.
About Vislink Technologies, Inc.
Vislink Technologies is a global technology leader in capturing, delivering, and managing high-quality live video and associated data. With a renowned heritage in video communications spanning over 50 years, Vislink has revolutionized live video communications by delivering the highest-quality video from the scene, even in the most challenging transmission conditions, enabling broadcasters, defense, and public safety agencies to capture and share live video seamlessly and securely. Vislink provides live streaming solutions using RF, bonded cellular, 5G, and AI-driven technologies. Vislink’s shares of common stock are publicly traded on the OTCID Basic Market under the ticker symbol “VISL.”
For more information, please visit www.vislink.com.
