NextVision doubles revenue and raises 2026 target again as drone demand surges
The Israeli defense-tech company reported 138% revenue growth in the second quarter to $88.2 million and raised its full-year target to $355 million, even as gross margins narrowed and sales remained concentrated among a handful of customers.
NextVision continues to benefit from rising demand for systems designed for drones and other unmanned vehicles. The company, which develops stabilized cameras for drones and unmanned systems, more than doubled its revenue in the second quarter of 2026 and once again raised its full-year revenue target.
Revenue at the company, led by Chairman Chen Golan and CEO Michael Grosman, soared 138% in the second quarter compared with the same period in 2025, reaching $88.2 million. Operating profit more than doubled to $51.8 million, from $23 million a year earlier, while net profit jumped 125% to $53.6 million.
Alongside the sharp increase in sales, however, gross profit margin declined to 65.2%, from 71.6% in the corresponding quarter. The company attributed the erosion partly to discounts offered to customers purchasing in large volumes, higher raw-material costs and increased labor expenses as it expands its production lines.
The increase in demand comes against the backdrop of a rapidly expanding market for military drones and unmanned systems. Since the outbreak of the Israel-Hamas war in October 2023, NextVision has seen a sharp increase in orders for its cameras and other products. The war in Ukraine and rising defense budgets in a growing number of countries have also accelerated the deployment of surveillance drones, attack drones and loitering munitions, markets in which NextVision's imaging systems are used.
NextVision said it had “experienced an increase in demand for the solutions it provides to customers in all fields” and expects continued interest in its products.
During the recent fighting with Iran, the company experienced temporary delays in shipments to customers and in receiving goods from suppliers. It said that after the restrictions were lifted, operations returned to normal and that the disruptions had no material impact on its results or its ability to fulfill orders.
The growth is not necessarily being driven by a significant increase in the number of customers. Instead, the company remains heavily dependent on large customers. In the first half of 2026, NextVision sold to 150 customers, compared with 154 in the same period last year, even as revenue jumped 112% to $155.5 million.
The company's order backlog stood at $265.2 million at the end of June. Its three largest customers accounted for 65.9% of revenue in the first half, highlighting the significant concentration of its sales.
Europe was NextVision's largest market during the period, generating $90.4 million in revenue, while North America contributed $42.4 million.
Following the strong pace of business, NextVision raised its 2026 revenue target to $355 million. This marks the second upward revision this year. In January, the company set a target of $275 million before raising it to $315 million later in the year.
The new target represents 112% growth compared with 2025 and is 29% above the original target set at the beginning of 2026.
The company said U.S. tariffs have not materially affected its results so far, despite its exposure to the American market. It also expects any potential impact from the new tariff policy on its business to remain limited.
Following the release of the results, Chairman Chen Golan said: “We continue to expand our production capabilities, develop new products and expand our portfolio of solutions, while actively examining opportunities for strategic acquisitions. These steps are intended to strengthen the company's competitive advantage, deepen the value we offer customers and establish new growth engines for the years ahead.”
