Senstar Technologies (NASDAQ:SNT) reported second-quarter 2026 revenue of $10.4 million, up 8% from $9.7 million a year earlier, as growth in Europe, the Middle East and Africa and Asia-Pacific offset continued weakness in the U.S. corrections market. The company returned to profitability during the quarter, reporting net income attributable to shareholders of $351,000, or $0.02 per share.
Chief Executive Officer Fabien Haubert said the results reflected continued execution of the company’s strategy and growing contributions from LiDAR solutions following the February acquisition of Blickfeld. LiDAR sales nearly doubled year over year on a combined basis and represented 20% of global sales during the quarter, compared with 11% in the first quarter, according to management.
Regional Growth Offset U.S. Corrections Pressure
Asia-Pacific was Senstar’s fastest-growing region in the quarter, with revenue rising 93% from a year earlier and 21% year to date. Management attributed the increase to demand from utilities, data centers, corrections and airports, including improved activity in South Asia and Japan. Haubert said LiDAR sales in the region remain at an early stage, creating a potential opportunity as adoption develops.
Revenue in EMEA increased 14% year over year and 26% year to date, supported by utilities, data centers, airports and energy customers. Senstar recently hired a regional sales director in the Middle East as it seeks to build LiDAR opportunities in the region, Haubert said.
North American revenue declined 12% in the quarter, including a 14% decline in the U.S. Senstar attributed the U.S. weakness largely to delays in corrections projects associated with the federal government shutdown in late 2025. Management said no major customer projects had been canceled and that it was seeing early signs of recovery, with activity expected to resume in the second half of the year.
Canada returned to growth after a difficult first quarter, with revenue rising 19%, Chief Financial Officer Alicia Kelly said.
North America accounted for 43% of second-quarter revenue, down from 53% in the prior quarter. EMEA represented 37%, compared with 35%, while APAC represented 19%, up from 11%.
Utilities and LiDAR Remain Growth Areas
Across Senstar’s four core vertical markets, performance declined about 18% year over year, primarily due to slower U.S. corrections activity. However, utilities sales increased 17%, driven by data centers, telecommunications and solar farms. The company said the utilities growth was broad-based across regions, while transportation also grew during the quarter.
Haubert said Senstar is expanding its commercial team, including the appointment of a vice president of sales for the U.S. and Latin America with experience in security, LiDAR, utilities and data centers. The company is also focused on cross-selling to existing customers and adding new customer accounts.
In response to an analyst question about the contribution from Blickfeld, Haubert said LiDAR was a significant contributor to growth but that Senstar did not disclose how much was generated by the legacy Blickfeld business versus Senstar’s own sales organization. He said both teams were selling LiDAR products as part of the combined company.
Haubert said the company sees LiDAR as complementary to its existing portfolio, with limited sales-channel overlap. He described 3D LiDAR as competing primarily with thermal cameras in perimeter and outdoor applications, an area where Senstar historically did not have a comparable product.
Margins, Expenses and Balance Sheet
Second-quarter gross margin was 64.2%, compared with 66.1% a year earlier, primarily reflecting product mix. Gross margin improved sequentially from 60% in the first quarter due to a healthier product mix, Kelly said.
Operating expenses rose 18% to $6.4 million, or 60.9% of revenue, from $5.4 million, or 56% of revenue, in the year-earlier period. The increase primarily reflected $1.2 million in costs associated with the Blickfeld acquisition, partly offset by lower corporate costs, including Blickfeld due-diligence costs incurred in the second quarter of 2025.
Operating income was $343,000, down from $1 million a year earlier. EBITDA totaled $551,000, compared with $1.1 million in the prior-year quarter, but improved from an EBITDA loss of $403,000 in the first quarter.
Kelly said Blickfeld represented about $300,000 of total research and development expense during the quarter. She said the approximately $1.3 million quarterly R&D level was “fairly normal” for the combined group, though possible Canadian or German research grants could reduce future costs.
Cash, cash equivalents and short-term bank deposits totaled $8 million as of June 30, excluding $100,000 of restricted cash related to Blickfeld closing balances. That compared with $22.5 million at the end of 2025. Senstar had no debt, and Kelly said the cash decrease primarily reflected the €10.4 million cash-funded acquisition of Blickfeld.
Product Launches Planned for Second Half
Senstar expects to release two new offerings in the second half of 2026: Embedded FiberTrench, a fiber-optic sensing technology for perimeter intrusion detection and critical infrastructure protection, and the Symphony Workflow Engine, a customizable automation tool integrated with the Senstar Symphony platform.
Haubert said Embedded FiberTrench is designed to address shorter-distance applications traditionally served by other technologies, while its embedded artificial intelligence is intended to improve intrusion detection and reduce nuisance alarms. The workflow engine is intended to support software sales and recurring revenue over time. Senstar expects to showcase the products at the Global Security Exchange in Atlanta in September.
About Senstar Technologies (NASDAQ:SNT)
Senstar Technologies is a global provider of physical security solutions, specializing in perimeter intrusion detection and video security management. The company develops and markets a comprehensive suite of sensors and systems designed to protect critical infrastructure, commercial facilities and government sites from unauthorized access and potential security threats. Its core technology offerings include fiber optic sensing, fence-mounted detectors, microwave barriers and advanced video analytics, which can be deployed independently or fully integrated into existing security frameworks.
Among its flagship products are fiber optic perimeter intrusion detection systems that use optical sensing to detect disturbances along fences or perimeter lines, as well as active infrared and microwave sensors that create virtual detection zones.
