Smart Shooter Shares Drop Over 10% After Q2 Financial Report Despite Revenue Growth
Smart Shooter, an Israeli developer of advanced firearm targeting systems, saw its stock plunge more than 10% on the Tel Aviv Stock Exchange following the release of its second-quarter financial results. The company, which went public earlier this year, reported a 28.8% revenue increase to $9.7 million for Q2 and a 27.4% rise to $16.3 million for the first half of 2024. Despite this growth, operating profit sharply declined by 69.5% to $238,000 in the quarter, with a half-year operating loss of $836,000 attributed to increased R&D, marketing, sales, and general expenses, partly due to the strengthening shekel. Net profit for Q2 was $1.7 million, but the company posted a net loss of $4.9 million for the first half of the year. EBITDA remained positive at $620,000 for the quarter and $658,000 for the half-year.
Smart Shooter’s order backlog stood at $51.6 million at mid-year, with at least $34 million expected to be recognized as revenue in the second half of 2026. CEO and Chair Michal Mor emphasized the company’s focus on accelerating growth and geographic diversification, highlighting the United States as a key customer, Europe as a highly promising market, and growth in Asia-Pacific and Israel. Nearly half of Q2 revenues came from Europe and 43% from the U.S.
Mor also discussed the company’s efforts to counter the rising threat of drones on the battlefield, noting the challenge posed by low-cost, agile drones that can evade traditional defense systems. She explained that Smart Shooter’s unique algorithms identify, track, and precisely time the firing of projectiles to neutralize such threats. The military drone market is growing by 12%, with the counter-drone segment expanding 26.5% and expected to reach $14.5 billion in the coming years.
This financial update was accompanied by the launch of a new service by Globes, providing full transcripts of investor conference calls for publicly traded companies, aiming to enhance transparency and investor understanding beyond financial statements. Despite the recent stock drop, Smart Shooter’s share price remains about 17% above its March IPO price, valuing the company at approximately one billion shekels.
