Elauwit Connection (ELWT) Q4 2025 earnings summary

Executive summary

• Full-year revenue rose 154% year-over-year to $21.6 million, with recurring service revenue up 151% and significant growth in contracted, activated, and billed units.

• Expanded addressable market through a scalable operating model, robust sales pipeline, and new sales organization, generating immediate traction and identifying significant new business opportunities.

• Enhanced go-to-market strategy with AI-enabled marketing and targeted outreach, resulting in 13,000 units in active discussions and 254 new business opportunities.

• IPO and Nasdaq listing provided access to capital, enabling pursuit of a larger market and funding for NaaS growth.

Financial highlights

• Q4 revenue was $6.1 million, up from $3.3 million in Q4 2024; full-year revenue reached $21.6 million, up from $8.5 million.

• Gross profit for 2025 was $4.0 million, up from $1.2 million in 2024; Q4 gross profit was $0.5 million, up from $0.3 million.

• Gross margin for 2025 was 18.5%; Q4 gross margin was 8.6%.

• Net loss for 2025 was $4.2 million; Q4 operating loss was $2.2 million.

• Adjusted EBITDA for 2025 was $(3.7) million; full-year operating expenses rose to $7.7 million.

Outlook and guidance

• Recurring revenue expected to increase as a percentage of total revenue due to more long-term contracts and higher NaaS adoption.

• Management targets a return to 15% gross margin on network construction and expects long-term gross margins of 60% for managed services and 75% for NaaS.

• Sales initiatives are targeting up to 12 million units, with 8,000 units identified for immediate bidding.

• SG&A expected to decrease as a percentage of expenses in 2026, with sales and marketing spend targeted at $1.5 million.