RA'ANANA, Israel – November 09, 2026 -- NextVision Stabilized Systems (TASE: NXSN) reported third-quarter 2026 revenue of $106.4 million, up 125% from $47.3 million a year earlier, with operating margin reaching 61.8%. The maker of stabilized day- and night-vision imaging systems for UAVs and drones said nine-month revenue totaled $261.9 million, up 117%.
Operating margin climbs for a third straight quarter
Operating profit rose 133% to $65.8 million from $28.3 million. Operating margin reached 61.8%, against 56.9% in the first quarter, 58.8% in the second and 59.8% in the year-earlier quarter. Operating expenses fell to 4.9% of revenue from 8.9%.
Gross profit increased 118% to $71.0 million, from $32.5 million. Gross margin improved to 66.7% from 65.2% in the second quarter. NextVision attributes the gain to manufacturing efficiencies and higher productivity per employee, which it says held margins despite rising raw material and component costs.
Net profit grew 113% to $60.1 million from $28.2 million. For the first nine months, net profit totaled $152 million, more than double the $72 million of the prior-year period.
Europe delivers $164.6 million in nine-month revenue
Europe remains the largest market, with nine-month revenue of $164.6 million, up 138%. North America rose 80% to $57.1 million. The company also reported growth in Israel and other markets.
NextVision has more than 300 customers, of which 185 were active in the first nine months. Customers outside its three largest generated about $105 million over that period, including about $52 million in the third quarter alone. Chairman Chen Golan said additional customers are scaling up activity and becoming more significant to the company.
Operating cash flow hits $128.4 million despite inventory build
Nine-month operating cash flow reached $128.4 million, 3.6 times the $35.2 million of the same period last year. That figure is after about $38.9 million invested in higher inventory. Third-quarter operating cash flow was $53.3 million, almost triple the $18.8 million a year earlier, after an inventory increase of about $20.8 million.
The company says the component stockpile is meant to support expanded production and shorter delivery times.
Backlog falls to $209.3 million from $265.2 million in Q2
Order backlog stood at $209.3 million at the release date, up 69% from $124 million a year earlier but down from $265.2 million at the second-quarter report. NextVision attributed the quarterly decline partly to higher delivery volumes and to the timing of new orders expected over the coming weeks. It said streamlined processes and training allow faster conversion of orders into revenue.
European subsidiary to run new production line
NextVision is establishing a European subsidiary to operate a production line in the region. The move targets customers who prefer European manufacturing and local-manufacturing requirements. Golan said the company plans to extend production to the United States as well, as part of "building a global manufacturing network."
Golan also said targeted acquisitions of complementary technologies and capabilities form part of the strategy alongside organic growth and independent development.
Management scheduled investor webinars in Hebrew and English on the results day, at 1:30pm and 3:30pm Israel time respectively.