Senstar posts Q1 loss as government project delays slow revenue

Senstar Technologies (NASDAQ:SNT) reported a minor revenue decline and swung to an operating loss for the first quarter, hampered by elongated customer procurement cycles and project delays within its core U.S. government market.

The Ottawa, Canada-based physical security and video management provider reported Tuesday that its unaudited revenue for the three months ended March 31, 2026, fell 4.1% year-over-year to $8.1 million, down from $8.4 million in the opening quarter of 2025.

Management attributed the top-line softness to shifting implementation schedules for municipal and federal contracts, citing temporary workflow bottlenecks connected to previous U.S. government budget uncertainties.

Despite the near-term friction, the company highlighted a fourfold increase in sales of light detection and ranging (LiDAR) hardware.

Consolidated gross margin contracted to 60% for the quarter, down from 67.2% in the prior-year period.

The compression reflects an evolving product mix and the initial integration costs of manufacturing frameworks added during the quarter.

Total operating expenses grew 18.3% year-over-year to $5.5 million.

The increase was driven primarily by expanded general, administrative, and research outlays linked to corporate development activity.

As a result, Senstar recorded an operating loss of $0.6 million, compared to an operating income of $0.5 million in the first quarter of 2025.

Net loss for the period arrived at $0.8 million, or $0.04 per share, reversing a net income of $1 million in the baseline year-ago period.

Adjusted EBITDA was negative $403,000 for the three-month window.

Elsewhere, the company completed its acquisition of Munich-based 3D LiDAR specialist Blickfeld GmbH on February 13, 2026, expanding its addressable footprint into autonomous transit, volume-monitoring, and advanced perimeter analytics markets.

The transaction required an upfront cash disbursement of €10.4 million ($11.3 million), alongside up to €1 million in performance-based milestones.

The cash deployment for the transaction altered Senstar's liquidity profile.

The company closed the first quarter with cash, cash equivalents, and short-term bank deposits of $10.6 million, equivalent to $0.45 per share, down from $22.5 million held on December 31, 2025.