• 51% of revenue from defense sector, up from 37% in 2023
• Recurring revenue increased 83% year-over-year
• Largest order to date in defense market, multi-year contract with global defense contractor

Elsight Limited reported a strong financial and operational performance in 2024, with a 32% year-over-year increase in annual revenue, surpassing $2 million. The company's focus on the defense sector paid off, with 51% of total revenue coming from this market, up from 37% in 2023. Recurring revenue, a key driver of sustainable growth, increased by 83% year-over-year. Elsight also achieved significant milestones, including its largest order to date in the defense market, a multi-year contract with a leading global defense contractor. The company expanded its global footprint in the defense market, securing key contracts with Lockheed Martin (U.S.), Telespazio (Europe), and ST Engineering (Southeast Asia). Elsight also introduced DroneCommX, an after-market connectivity solution for DJI drones used in homeland security and public safety. A major highlight was the conversion of $7.35 million in convertible notes, eliminating the company's debt and improving its financial flexibility. Looking ahead, Elsight remains focused on scaling its defense sector engagements, deepening strategic partnerships, and expanding its technological offerings. The company is well-positioned to drive sustained growth and deliver long-term value to shareholders.

Elsight expects material revenue growth from its largest defense contract to begin in Q1 2025, following an R&D development effort. The long-term revenue potential from this contract is significant, though the sales cycle in the government/defense sector is longer (1-2.5 years).

Elsight is focused on scaling its defense sector engagements, deepening strategic partnerships, and expanding its technological offerings. The company is well-positioned to drive sustained growth and deliver long-term value to shareholders.