Senstar Technologies (NASDAQ:SNT) reported its highest-ever third-quarter revenue as demand recovered in the U.S. corrections market and sales of its LiDAR technology increased following the acquisition of Blickfeld.
Revenue rose 37% from a year earlier to $13.1 million in the third quarter of 2026, while net income attributable to shareholders increased to $1.5 million, or $0.07 per share, from $1 million, or $0.04 per share. CEO Fabien Haubert said growth came from multiple markets and customers rather than a single large project.
Operating income increased to $1.9 million from $1.1 million, and adjusted EBITDA rose 55% to $2.1 million. The adjusted EBITDA margin expanded to 15.7% from 13.9% a year earlier.
U.S. Demand Recovers
Haubert said U.S. revenue grew 23% in the quarter, bringing the market back in line with the prior year on a year-to-date basis. Activity in corrections returned to its cadence before the late-2025 federal government shutdown, which had delayed projects, he said.
CFO Alicia Kelly said North American revenue increased 26%, including 62% growth in Canada. North America accounted for 47% of quarterly revenue, down from 51% a year earlier.
Kelly said revenue in both Europe, the Middle East and Africa, or EMEA, and Asia-Pacific grew 50% year over year. Haubert separately cited 15% growth for each region in the quarter. He said year-to-date revenue increased 35% in EMEA and 31% in Asia-Pacific.
Management cited wins across airports, utilities, data centers and other infrastructure sites. Haubert said the company’s four core verticals grew approximately 15% combined, supported by solar farms, utilities and data centers.
LiDAR and New Products
Haubert said LiDAR sales more than doubled year over year and represented 20% of total third-quarter sales, compared with 20% in the second quarter and 11% in the first. Blickfeld, which Senstar acquired in February, was adjusted EBITDA profitable for a second consecutive quarter, he said.
The CEO described applications for LiDAR beyond perimeter security, including industrial volume and traffic monitoring. He said Senstar completed its first successful LiDAR implementation in Asia-Pacific during the quarter and was pursuing demonstration and proof-of-concept projects globally.
Senstar also launched an AI-driven fiber sensing solution during the quarter. Haubert said the technology is designed to reduce nuisance and false alarms. The company’s SensorFlow software platform was expected to launch within a couple of weeks, he said, and is intended to support Senstar’s strategy of growing recurring revenue.
Margins and Acquisition Accounting
Gross margin was 66.3%, down from 67.3% a year earlier, primarily because of product mix, Kelly said. It improved from 64.2% in the second quarter. Operating expenses rose to $6.8 million from $5.2 million but declined as a percentage of revenue.
Kelly attributed roughly $1.3 million of the $1.5 million expense increase to integrating Blickfeld. The remaining $200,000 was a bad debt reserve for a specific customer receivable, which Senstar is seeking to recover.
Cash, cash equivalents and short-term bank deposits totaled $8.4 million at Sept. 30, excluding $100,000 in restricted cash. That was up from $8 million at the end of June but down from $22.5 million at the end of 2025. Kelly said the decline during the first nine months primarily reflected the cash-funded Blickfeld acquisition, which cost 10.4 million euros. Senstar had no debt at quarter-end.
Kelly said purchase accounting for Blickfeld remains preliminary. The eventual allocation could affect costs, depreciation, amortization and reported results, including potentially those of previously reported periods.
About Senstar Technologies (NASDAQ:SNT)
Senstar Technologies Ltd. (NASDAQ: SNT) is a security technology company that develops and supplies solutions designed to protect critical infrastructure, industrial facilities, government sites and other high-security environments. Its offerings are intended to help organizations detect, assess and respond to physical security threats across perimeter and site operations.
The company’s product portfolio includes perimeter intrusion detection systems, intelligent video surveillance and management software, security management platforms, access control solutions and related security sensors.
