Vislink says 2025 gross margin rose as revenue fell

By AI, Created 10:22 AM UTC, May 20, 2026, /AGP/ – Vislink reported fourth-quarter and full-year 2025 results on March 31, 2026, showing higher margins, lower expenses and growing military and government business even as annual revenue declined. The company also highlighted new product wins, federal market traction and an improving start to 2026.

Why it matters: - Vislink’s results show a shift toward higher-margin defense and government work, which management sees as the path back to profitability. - The company said military and government orders topped 45% of total orders in 2025 and could exceed 50% of revenue in 2026. - Gross margin rose to 55% for the full year from 25% in 2024, even though revenue fell.

What happened: - Vislink reported fourth-quarter and full-year 2025 financial and operational results on March 31, 2026. - Fourth-quarter revenue was $5.3 million, up 56% from a year earlier and 37% from the prior quarter. - Full-year revenue was $18.4 million, down 33% from 2024. - Year-end cash was $4.2 million. - The company said January 2026 revenue was $2.1 million and EBITDA was $0.3 million.

The details: - Fourth-quarter gross margin improved to 49% from negative 173% in Q4 2024. - Full-year gross margin expanded to 55% from 25% in the prior year. - Operating expenses fell 29%, or about $8.1 million, year over year. - Q4 operating expenses declined 25% from Q4 2024. - Full-year EBITDA loss was $8.5 million. - Q4 EBITDA loss was $1.9 million and included about $0.9 million of one-time charges. - Those one-time charges included a $0.6 million stock provision increase, $0.2 million of franchise tax and $0.1 million of bad debt provision. - Full-year revenue decline reflected softer live production demand and U.S. federal government budget delays. - Management said the margin improvement came from product portfolio rationalization and higher-margin Airborne Video Downlink Systems solutions. - MilGov orders exceeded 45% of total orders in 2025, up from 38% in 2024. - Vislink launched a U.S. Federal Government and Department of War business development initiative and set up a go-to-market motion across priority agencies. - The company said it submitted five RFI responses in Q1 2026 across defense and homeland security opportunities. - Those responses included engagements with the U.S. Army, Navy, Coast Guard and Customs and Border Protection. - Vislink is establishing a new federal channel partner program. - The company is developing a near-term product pipeline built around wideband software-defined radios and systems.

Between the lines: - Vislink is leaning harder into defense, public safety and federal sales as broadcast demand softens. - The company’s commentary suggests product rationalization is helping profitability even on a smaller revenue base. - Early 2026 orders and RFI activity point to a pipeline that management hopes will support the next stage of the turnaround. - The mix shift also reduces reliance on mature broadcast products and ties growth more closely to mission-critical and government customers.

What’s next: - Management expects military and government revenue to surpass 50% in 2026. - Vislink plans to keep building its federal partner program and pursue priority defense and homeland security opportunities. - The company said it will continue to push new products, including Aero5, AeroLink, MobilCMDR 2 and MeshConnect, into live production and defense markets. - Vislink said its 2026 focus remains execution, capital preservation and a move toward profitability. - The company highlighted a strong start to the year and said new customer wins and deployments are building commercial momentum.

The bottom line: - Vislink ended 2025 with better margins, tighter spending and more defense exposure, but still needs revenue growth to turn the operating rebound into sustained profitability. - The company’s next test is whether new products and federal traction can offset weakness in legacy broadcast demand.