Foresight Autonomous Q2 loss rises 89% to $0.01 per share
Foresight Autonomous Holdings reported a Q2 2026 non-GAAP net loss of $0.01 per share, an 88.89% increase from the prior year's $0.09 loss, alongside a 32.81% revenue decline to $86,000. First-half revenue rose 19.6% to $287,000, supported by grants and new partnerships in defense and automotive sectors. Cash reserves grew to $7.09 million following a significant equity raise.
*this image is generated using AI for illustrative purposes only.
Foresight Autonomous Holdings Ltd. (NASDAQ: FRSX) reported financial results for the second quarter and first half of 2026, with quarterly revenue declining to $86,000 from $128,000 in the year-ago period. The company’s non-GAAP net loss widened significantly on a per-share basis, rising 88.89% to $(0.01) from $(0.09) per share in Q2 2025. Despite the quarterly dip, first-half revenue improved to $287,000 from $240,000, as the company continued to advance technology validation programs across automotive, defense, and smart mobility markets.
Q2 2026 financial performance
The following table summarises key income statement metrics for the three months ended June 30, 2026, compared with the same period in 2025. All figures are in US dollars in thousands.
| Metric: | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|
| Revenues: | $86,000 | $128,000 | -32.8% |
| R&D expenses, net: | $1,932,000 | $2,156,000 | -10.4% |
| Sales & marketing expenses: | $386,000 | $295,000 | +30.8% |
| G&A expenses: | $657,000 | $586,000 | +12.1% |
| Finance income, net: | $78,000 | $136,000 | -42.6% |
| GAAP net loss: | $2,835,000 | $2,815,000 | +0.7% |
| Non-GAAP net loss: | $2,650,000 | $2,598,000 | +2.0% |
Q2 2026 revenues were generated primarily through the commercialization agreement with Elbit Systems Ltd. and from the completion of a proof-of-concept with a leading European car manufacturer to validate Foresight's stereo vision AI-based solution for off-road driving scenarios. R&D expenses declined 10.4% to $1,932,000, driven by the recognition of a $189,000 grant from the Israeli Innovation Authority under the India-Israel Industrial R&D and Technological Innovation Fund program, supporting collaboration with a leading Indian drone manufacturer to develop rugged autonomous industrial drones equipped with multi-spectrum sensing.
Sales and marketing expenses rose 30.8% to $386,000, primarily due to the reclassification of certain employee expenses from R&D following changes in roles and responsibilities. G&A expenses increased 12.1% to $657,000, attributable to higher legal expenses incurred during the quarter. Finance income, net of $78,000 consisted of interest income of $24,000 and exchange rate differences of $59,000, offset by other factors of $7,000. Both GAAP and non-GAAP net loss per ordinary share were $0.01.
H1 2026 financial performance
For the six months ended June 30, 2026, the company's financial results showed improvement in revenue and a narrowing of net loss compared with H1 2025. The table below presents key metrics for the first half periods.
| Metric: | H1 2026 | H1 2025 | Change |
|---|---|---|---|
| Revenues: | $287,000 | $240,000 | +19.6% |
| R&D expenses, net: | $3,860,000 | $4,426,000 | -12.8% |
| Sales & marketing expenses: | $821,000 | $629,000 | +30.5% |
| G&A expenses: | $1,280,000 | $1,296,000 | -1.4% |
| Finance income, net: | $17,000 | $100,000 | -83.0% |
| GAAP net loss: | $5,755,000 | $6,095,000 | -5.6% |
| Non-GAAP net loss: | $5,360,000 | $5,636,000 | -4.9% |
H1 2026 revenues were generated through the commercialization agreement with Elbit, as well as through agreements with a leading Japanese manufacturer of smart city, road traffic, hazard management, and traffic monitoring solutions, and with a Chinese rail technology company for the integration of Foresight's 3D perception systems into urban rail transit systems. R&D expenses fell 12.8% to $3,860,000, aided by the recognition of a $407,000 grant from the I4F program and a decrease in payroll and related expenses.
S&M expenses rose 30.5% to $821,000, driven by the reclassification of employee expenses and an increase in consulting expenses. Finance income, net for H1 2026 of $17,000 comprised interest income of $60,000, offset by a loss from the revaluation of marketable equity securities of $11,000, exchange rate differences of $26,000, and other factors of $6,000. GAAP and non-GAAP net loss per ordinary share were both $0.01.
Balance sheet highlights
As of June 30, 2026, cash, cash equivalents and restricted cash totalled $7,092,000, compared with $6,289,000 as of December 31, 2025. Total assets stood at $8,926,000 versus $8,353,000 at December 31, 2025. GAAP total equity rose 13.4% to $5,798,000 from $5,111,000 at December 31, 2025, driven by the issuance of ordinary shares and warrants net of issuance expenses of $6,047,000 and stock-based compensation of $395,000, partially offset by the net loss for the period of $5,755,000.
Key operational developments in H1 2026
Several strategic milestones were recorded during the first half of 2026:
- January 7, 2026: Eye-Net Mobile Ltd. showcased its commercially ready vehicle-to-everything (V2X) collision prevention technology at CES 2026, demonstrating beyond-line-of-sight alerts designed to enhance the safety of vulnerable road users.
- February 9, 2026: Eye-Net, together with Renault Group and Orange, completed a large-scale live trial of its V2X collision prevention solution in Bordeaux, France, validating the technology's performance in a real-world public transportation environment.
- April 24, 2026: Foresight entered into a proof-of-concept agreement with a leading European automotive manufacturer to evaluate its AI-powered stereo vision solution for off-road driving applications.
- June 8, 2026: Foresight entered into a securities exchange agreement for a potential strategic investment by VisionWave Holdings, Inc., subject to shareholder approval. On July 23, 2026, shareholders did not approve the agreement, and the transaction was not completed.
- June 16, 2026: Foresight demonstrated its advanced 3D perception technologies at Eurosatory 2026 alongside VisionWave Holdings, showcasing the integration of multi-spectral vision solutions into autonomous defense platforms.
Haim Siboni, Chief Executive Officer of Foresight, stated: "During the first half of 2026, we continued to strengthen our strategic positioning through new collaborations, technology demonstrations and validation programs across several high-growth markets. We made important progress expanding relationships with industry leaders in defense, automotive and smart mobility while further demonstrating the versatility of our multi-spectral perception technologies. We remain focused on converting these strategic initiatives into long-term commercial opportunities."
What the Numbers Show
The divergence between the company’s aggregate net loss and per-share loss highlights the impact of capital raises on dilution metrics. While the absolute non-GAAP net loss increased only marginally by 2.0% to $2,650,000 from $2,598,000, the per-share loss widened significantly from $(0.09) to $(0.01). This discrepancy is driven by the issuance of ordinary shares and warrants worth $6,047,000 during the period, which expanded the share base while the operational loss remained relatively stable. Consequently, investors should view the per-share metric as heavily influenced by this equity financing rather than purely operational deterioration.
How will the failure of the VisionWave Holdings strategic investment impact Foresight's capital strategy and future partnership opportunities in the defense sector?
Given the 30.8% increase in sales and marketing expenses, what specific commercial milestones or revenue targets are expected from the new agreements with Japanese and Chinese partners in H2 2026?
To what extent will the $189,000 Israeli Innovation Authority grant accelerate the timeline for commercializing autonomous industrial drones with Indian manufacturers?
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