Telsys (TLSY) Q4 2025 earnings summary

Executive summary

• Revenue grew to $148.8M in 2025, up 40% year-over-year, with significant annual sales growth of 84% and profit growth of 80% in the distribution segment, and net income attributable to shareholders reached $36.5M, a 39% increase from 2024.

• Strong demand in enterprise, industrial, medical, and military/defense sectors, with positive trends continuing into 2026.

• Successfully navigated supply chain disruptions and regional conflict, maintaining operations and customer deliveries.

• The company completed the acquisition of 100% of Variscite, consolidating all SOM operations.

• Dividend distributions totaled $40M in 2025, following $32.2M in 2024.

Financial highlights

• SOM segment revenue: $80.3M in 2025, up 6% year-over-year; Distribution segment revenue: $56M, up 84%.

• Gross profit: $68.2M (46% margin), up from $47.5M in 2024.

• Operating income: $54.7M; EPS: $4.03 basic, $4.01 diluted, compared to $2.90 in 2024.

• Backlog increased by 61% year-over-year, from $29M to $46.8M, concentrated in Q1 and Q2 2026.

• Cash and equivalents at year-end: $22.4M; total assets: $114.1M.

Outlook and guidance

• Positive outlook for 2026, with continued strong demand and backlog visibility, especially from key customer Nvidia (Mellanox).

• SOM market expected to grow globally, with Variscite targeting further expansion and innovation.

• No indications of demand decline for Variscite; backlog and Q4 2025 results suggest ongoing growth.

• Memory component shortages and price increases expected to persist into late 2027.