Revenue growth has shifted to a sharp 18.2% contraction in 2026Q1, while gross margins plummeted to negative 17.7% due to the inability to absorb fixed manufacturing costs.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 |
|---|
| Sales/Revenue | 49.47M | 51.79M | 46.53M | 46.7M | 39.65M | 33.82M | 36.71M | 34.79M | 33.94M | 32.75M | 37.06M | 41.35M | 46.63M | 50.23M | 45.65M | 46.83M | 37.51M | 36.44M | 43.14M | 37.48M | 41.17M | 31.38M | 28.84M | 24.73M | 23.24M | 25.99M | 24.62M | 22.31M | 23.8M | 25M |
| Revenue Growth % | 4.15% | 11.31% | -0.36% | 17.77% | 17.23% | -7.86% | 5.5% | 2.52% | 3.62% | -11.63% | -10.36% | -11.32% | -7.18% | 10.05% | -2.53% | 24.83% | 2.94% | -15.52% | 15.11% | -8.97% | 31.21% | 8.81% | 16.6% | 6.4% | -10.56% | 5.57% | 10.35% | -6.26% | -4.8% | - |
| Cost of Goods Sold | 45.55M | 43.81M | 36.19M | 33.59M | 31.38M | 26.93M | 28.97M | 28.79M | 31.34M | 31.43M | 34.25M | 34.8M | 40.6M | 42.24M | 37.84M | 38.1M | 32.69M | 30.88M | 37.28M | 31.88M | 32.31M | 25.14M | 25.38M | 23.44M | 22.91M | 21.96M | 17.52M | 16.26M | 18.2M | 19.1M |
| COGS % of Revenue | - | 84.58% | 77.78% | 71.94% | 79.14% | 79.61% | 78.92% | 82.74% | 92.35% | 95.95% | 92.4% | 84.16% | 87.08% | 84.09% | 82.89% | 81.36% | 87.14% | 84.74% | 86.42% | 85.07% | 78.48% | 80.13% | 88% | 94.78% | 98.54% | 84.5% | 71.18% | 72.89% | 76.47% | 76.4% |
| Gross Profit | 3.92M | 7.98M | 10.34M | 13.1M | 8.27M | 6.9M | 7.74M | 6.01M | 2.6M | 1.33M | 2.82M | 6.55M | 6.02M | 7.99M | 7.81M | 8.73M | 4.82M | 5.56M | 5.86M | 5.6M | 8.86M | 6.24M | 3.46M | 1.29M | 339K | 4.03M | 7.09M | 6.05M | 5.6M | 5.9M |
| Gross Margin % | 7.92% | 15.42% | 22.22% | 28.06% | 20.86% | 20.39% | 21.08% | 17.26% | 7.65% | 4.05% | 7.6% | 15.84% | 12.92% | 15.91% | 17.11% | 18.64% | 12.86% | 15.26% | 13.58% | 14.93% | 21.52% | 19.87% | 12% | 5.22% | 1.46% | 15.5% | 28.82% | 27.11% | 23.53% | 23.6% |
| Gross Profit Growth % | - | -22.78% | -21.09% | 58.43% | 19.91% | -10.87% | 28.82% | 131.31% | 95.7% | -52.89% | -56.98% | 8.73% | -24.66% | 2.34% | -10.53% | 80.95% | -13.24% | -5.05% | 4.63% | -36.81% | 42.07% | 80.15% | 167.88% | 281.12% | -91.58% | -43.22% | 17.28% | 8.02% | -5.08% | - |
| Operating Expenses | 5.57M | 5.64M | 5.95M | 5.81M | 5.3M | 4.95M | 4.71M | 4.62M | 4.67M | 4.75M | 4.82M | 5.05M | 6.92M | 6.72M | 6.52M | 6.16M | 6.03M | 6.02M | 7.48M | 5.76M | 6.21M | 4.55M | 4.35M | 3.57M | 3.35M | 3.18M | 6.12M | 6.12M | 4.59M | 4.7M |
| OpEx % of Revenue | - | 10.88% | 12.78% | 12.44% | 13.36% | 14.63% | 12.82% | 13.28% | 13.76% | 14.49% | 12.99% | 12.22% | 14.85% | 13.38% | 14.29% | 13.14% | 16.08% | 16.51% | 17.34% | 15.36% | 15.08% | 14.51% | 15.08% | 14.43% | 14.4% | 12.23% | 24.86% | 27.43% | 19.27% | 18.8% |
| Selling, General & Admin | 5.57M | 5.59M | 5.76M | 5.72M | 5.21M | 4.87M | 4.7M | 4.6M | 4.67M | 4.7M | 4.7M | 4.96M | 6.77M | 6.72M | 6.04M | 6.16M | 6.03M | 6.02M | 7.2M | 5.68M | 5.58M | 4.41M | 4.21M | 3.44M | 3.26M | 3.09M | 2.93M | 2.93M | 2.61M | 2.9M |
| SG&A % of Revenue | - | 10.79% | 12.38% | 12.25% | 13.13% | 14.4% | 12.81% | 13.23% | 13.76% | 14.36% | 12.68% | 12% | 14.53% | 13.38% | 13.23% | 13.14% | 16.08% | 16.51% | 16.69% | 15.16% | 13.55% | 14.05% | 14.61% | 13.91% | 14.03% | 11.9% | 11.89% | 13.12% | 10.96% | 11.6% |
| Research & Development | 0 | 50K | 187K | 85K | 92K | 78K | 2K | 16K | 0 | 41K | 117K | 90K | 72K | 0 | 0 | 0 | 0 | 0 | 0 | 74K | 163K | 140K | 0 | -4K | 25K | 86K | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 0.1% | 0.4% | 0.18% | 0.23% | 0.23% | 0.01% | 0.05% | - | 0.13% | 0.32% | 0.22% | 0.15% | - | - | - | - | - | - | 0.2% | 0.4% | 0.45% | - | -0.02% | 0.11% | 0.33% | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | -16K | 0 | 3K | 15K | 0 | 6K | 38K | -26K | 2K | 0 | 0 | 0 | -100K | 0 | 0 | 129K | 136K | 133K | 63K | 0 | 3.19M | 1.98M | 1.8M | 1.6M |
| Operating Income | -1.65M | 2.35M | 4.39M | 7.29M | 2.97M | 1.95M | 3.03M | 1.39M | -2.07M | -3.42M | -2M | 1.5M | -903K | 1.27M | 1.29M | 2.57M | -1.21M | -456K | -1.62M | -160K | 2.28M | 1.99M | -889K | -2.27M | -3.01M | 849K | 975K | 975K | 1.46M | 900K |
| Operating Margin % | -3.33% | 4.53% | 9.44% | 15.62% | 7.49% | 5.76% | 8.26% | 3.99% | -6.11% | -10.44% | -5.39% | 3.62% | -1.94% | 2.53% | 2.82% | 5.5% | -3.22% | -1.25% | -3.76% | -0.43% | 5.54% | 6.33% | -3.08% | -9.18% | -12.95% | 3.27% | 3.96% | 4.37% | 6.15% | 3.6% |
| Operating Income Growth % | - | -46.56% | -39.79% | 145.54% | 52.44% | -35.72% | 118.6% | 166.94% | 39.38% | -70.99% | -233.53% | 265.78% | -171.05% | -1.4% | -49.92% | 312.9% | -165.13% | 71.89% | -913.75% | -107.01% | 14.85% | 323.4% | 60.85% | 24.53% | -454.42% | -12.92% | 0% | -33.36% | 62.56% | - |
| EBITDA | 582K | 4.45M | 5.94M | 8.61M | 4.51M | 3.73M | 4.62M | 2.9M | -423K | -1.35M | -143K | 3.23M | 990K | 3.01M | 3.54M | 4.67M | 845K | 1.57M | 602K | 2.1M | 4.61M | 4.27M | 2.35M | 1.29M | 45K | 3.35M | 4.17M | 4.17M | 3.44M | 2.7M |
| EBITDA Margin % | 1.18% | 8.59% | 12.76% | 18.44% | 11.38% | 11.03% | 12.6% | 8.32% | -1.25% | -4.12% | -0.39% | 7.81% | 2.12% | 5.99% | 7.76% | 9.96% | 2.25% | 4.32% | 1.4% | 5.61% | 11.2% | 13.61% | 8.14% | 5.21% | 0.19% | 12.9% | 16.93% | 18.68% | 14.46% | 10.8% |
| EBITDA Growth % | -88.46% | -25.04% | -31.05% | 90.87% | 20.97% | -19.33% | 59.72% | 784.4% | 68.62% | -842.66% | -104.43% | 226.06% | -67.11% | -15.02% | -24.07% | 452.07% | -46.32% | 161.46% | -71.39% | -54.37% | 7.99% | 82.01% | 82.14% | 2762.22% | -98.66% | -19.58% | 0% | 21.13% | 27.44% | - |
| D&A (Non-Cash Add-back) | 2.23M | 2.1M | 1.55M | 1.32M | 1.54M | 1.78M | 1.59M | 1.51M | 1.65M | 2.07M | 1.86M | 1.73M | 1.89M | 1.74M | 2.25M | 2.09M | 2.05M | 2.03M | 2.22M | 2.26M | 2.33M | 2.28M | 3.23M | 3.56M | 3.05M | 2.5M | 3.19M | 3.19M | 1.98M | 1.8M |
| EBIT | -1.65M | 2.35M | 5.1M | 7.8M | 3.99M | 1.53M | 2.69M | 1.89M | -2.39M | -3.53M | -2.44M | 1.52M | -1.07M | 1.2M | 1.16M | 2.48M | -1.31M | -452K | -1.62M | -160K | 2.28M | 1.99M | -889K | -2.27M | -3.01M | 849K | 189K | 975K | 1.46M | 900K |
| Net Interest Income | -1.78M | -1.27M | 692K | 47K | -137K | -75K | -210K | -335K | -451K | -298K | -340K | -318K | -239K | -420K | -407K | -630K | -501K | -437K | -681K | -546K | -433K | -633.87K | -553.25K | -683K | -311K | -390K | 0 | -451K | -666K | 0 |
| Interest Income | 0 | 0 | 730K | 169K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 1.78M | 1.27M | 38K | 122K | 137K | 75K | 210K | 335K | 451K | 298K | 340K | 318K | 239K | 420K | 407K | 630K | 501K | 437K | 681K | 546K | 433K | 633.87K | 553.25K | 683K | 311K | 390K | 451K | 451K | 666K | 0 |
| Other Income/Expense | -1.87M | -1.27M | 705K | 422K | 887K | -447K | -353K | 483K | -472K | -283K | -568K | -253K | -318K | -465K | -541K | -728K | -607K | -420K | -825K | -137K | -533K | -569K | -668K | -689K | -248K | -235K | 0 | -975K | -1.46M | -900K |
| Pretax Income | -3.52M | 1.07M | 5.1M | 7.72M | 3.86M | 1.5M | 2.68M | 1.87M | -2.54M | -3.7M | -2.57M | 1.24M | -1.22M | 806K | 748K | 1.85M | -1.82M | -876K | -2.45M | -297K | 1.75M | 1.42M | -1.56M | -2.96M | -3.26M | 614K | 975K | 0 | 0 | 0 |
| Pretax Margin % | -7.11% | 2.07% | 10.95% | 16.53% | 9.73% | 4.44% | 7.3% | 5.37% | -7.5% | -11.3% | -6.93% | 3.01% | -2.62% | 1.6% | 1.64% | 3.94% | -4.84% | -2.4% | -5.67% | -0.79% | 4.25% | 4.52% | -5.4% | -11.97% | -14.01% | 2.36% | 3.96% | - | - | - |
| Income Tax | -488K | 247K | 873K | 1.36M | 664K | -3.54M | 71K | 77K | 63K | 74K | 1.16M | 218K | 1.63M | -2.98M | 52K | 31K | 19K | 34K | 0 | 0 | 158K | 0 | -164K | 44K | 82K | 0 | 2.47M | 0 | 0 | 0 |
| Effective Tax Rate % | 13.88% | 23.02% | 17.13% | 17.68% | 17.21% | -235.49% | 2.65% | 4.12% | -2.48% | -2% | -45.11% | 17.52% | -133.82% | -369.11% | 6.95% | 1.68% | -1.05% | -3.88% | 0% | 0% | 9.04% | 0% | 10.53% | -1.49% | -2.52% | 0% | 253.74% | - | - | - |
| Net Income | -3.03M | 826K | 4.22M | 6.35M | 3.19M | 5.04M | 2.61M | 1.79M | -2.61M | -3.77M | -3.62M | 1.04M | -2.67M | 3.82M | 690K | 1.85M | -1.72M | -880K | -2.45M | -301K | 1.65M | 1.47M | -1.35M | -2.98M | -3.38M | 614K | -713K | -713K | 84K | -700K |
| Net Margin % | -6.12% | 1.59% | 9.08% | 13.61% | 8.06% | 14.9% | 7.1% | 5.15% | -7.68% | -11.53% | -9.78% | 2.52% | -5.72% | 7.61% | 1.51% | 3.94% | -4.59% | -2.41% | -5.67% | -0.8% | 4.01% | 4.67% | -4.68% | -12.04% | -14.55% | 2.36% | -2.9% | -3.2% | 0.35% | -2.8% |
| Net Income Growth % | -186.87% | -80.45% | -33.51% | 98.9% | -36.61% | 93.21% | 45.45% | 168.78% | 30.94% | -4.17% | -447.46% | 139.14% | -169.71% | 454.06% | -62.62% | 207.2% | -95.68% | 64.02% | -712.62% | -118.24% | 12.55% | 208.51% | 54.63% | 11.95% | -650.81% | 186.12% | 0% | -948.81% | 112% | - |
| Net Income (Continuing) | -3.03M | 826K | 4.22M | 6.35M | 3.19M | 5.04M | 2.61M | 1.79M | -2.61M | -3.77M | -3.73M | 1.03M | -2.85M | 3.78M | 696K | 1.81M | -1.83M | -910K | -2.45M | -301K | 1.65M | 1.47M | -1.35M | -2.98M | -3.38M | 614K | -713K | -713K | 84K | -700K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 19.63K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -91K | -83K | 96K | 124K | 131K | 175K | 310K | 330K | 353K | 310K | 335K | 438K | 450K | 396K | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.45 | 0.12 | 0.63 | 1.07 | 0.55 | 0.86 | 0.58 | 0.48 | -1.29 | -1.86 | -1.79 | 0.51 | -1.31 | 2.65 | 0.50 | 1.40 | -1.30 | -0.67 | -1.85 | -0.24 | 1.20 | 1.10 | -1.64 | -4.45 | -3.46 | 0.65 | -0.73 | 0.09 | -0.75 | 1.95 |
| EPS Growth % | -187.01% | -80.95% | -41.12% | 94.55% | -36.05% | 48.28% | 20.83% | 137.21% | 30.65% | -3.91% | -450.98% | 138.93% | -149.43% | 430% | -64.29% | 207.69% | -94.03% | 63.78% | -670.83% | -120% | 9.09% | 167.07% | 63.15% | -28.61% | -632.31% | 189.04% | -925.79% | 111.79% | -138.46% | - |
| EPS (Basic) | - | 0.12 | 0.64 | 1.08 | 0.55 | 0.86 | 0.58 | 0.48 | -1.29 | -1.86 | -1.79 | 0.51 | -1.31 | 2.65 | 0.50 | 1.40 | -1.30 | -0.67 | -1.85 | -0.24 | 1.45 | 1.30 | -1.64 | -4.45 | -3.46 | 0.65 | -0.73 | 0.09 | -0.75 | 1.95 |
| Diluted Shares Outstanding | 6.72M | 6.79M | 6.7M | 5.96M | 5.85M | 5.87M | 4.5M | 3.73M | 2.03M | 2.03M | 2.03M | 2.03M | 2.03M | 1.44M | 1.32M | 1.32M | 1.32M | 1.32M | 1.32M | 1.25M | 1.39M | 1.36M | 826.2K | 666.4K | 977.2K | 977.2K | 982.6K | 950.6K | 933.33K | 717.95K |
| Basic Shares Outstanding | 6.72M | 6.72M | 6.63M | 5.9M | 5.85M | 5.84M | 4.5M | 3.73M | 2.03M | 2.03M | 2.03M | 2.03M | 2.03M | 1.44M | 1.32M | 1.32M | 1.32M | 1.32M | 1.32M | 1.25M | 1.12M | 1.11M | 826.2K | 666.4K | 977.2K | 977.2K | 982.6K | 950.6K | 933.33K | 717.95K |
| Dividend Payout Ratio | - | 154.48% | - | 20.79% | 31.12% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Geopolitical and Operational Volatility
As reported in recent financial filings, Eltek's revenue trajectory has shifted from growth to a sharp 18.2% contraction in 2026Q1, highlighting the inherent instability of a project-based model that lacks the recurring revenue streams necessary to sustain consistent top-line expansion across volatile procurement cycles.
The recent revenue decline suggests that the company's reliance on discrete purchase orders leaves it vulnerable to sudden shifts in defense and industrial demand. Investors should monitor whether this contraction represents a temporary pause in procurement or a more permanent erosion of the company's competitive positioning within its niche.
Based on Eltek's reported figures, gross margins plummeted to negative 17.7% in 2026Q1, a stark reversal from the 28% levels observed in late 2023, which suggests that the company is struggling to absorb fixed manufacturing costs amidst declining production volumes and potential yield inefficiencies.
The collapse in gross margin indicates that the company's high-fixed-cost structure is failing to scale, likely exacerbated by the specialized nature of its flex-rigid PCB production. This trend warrants investigation into whether the company possesses the pricing power to pass through rising input costs or if it is being forced to sacrifice profitability to maintain its defense-sector footprint.
According to the income statement data, the company's operating margin deteriorated to negative 31.3% in 2026Q1, demonstrating that the firm's high fixed-cost base acts as a significant drag on profitability when revenue fails to meet the threshold required to cover essential overhead and specialized labor expenses.
The transition from positive operating income to significant losses suggests that the company lacks the operational flexibility to adjust its cost structure in response to rapid revenue declines. This lack of agility may imply that the firm's current business model is overly sensitive to volume fluctuations, creating substantial downside risk during periods of reduced demand.
While the company maintains a low debt-to-equity ratio of 0.14%, the recent shift to negative net income of $2.9 million in 2026Q1 raises concerns regarding the long-term viability of its current manufacturing strategy without a clear path back to consistent, profitable growth.
Short-sellers may focus on the rapid erosion of profitability as evidence that the company's specialized niche is insufficient to generate sustainable returns on invested capital. Investors should consider whether the current financial performance is a temporary byproduct of regional instability or a fundamental failure to translate technical expertise into a scalable, profitable enterprise.
Quick answers to the most common questions about buying ELTK stock.
For fiscal year 2025, Eltek Ltd. (ELTK) reported total revenue of $51.8M. This represents a 107.2% increase compared to $25.0M in 1997.
Eltek Ltd. (ELTK) is profitable, generating $0.8M in net income for the fiscal year ending 2025 with a net profit margin of 1.6%.
Eltek Ltd. (ELTK) reported an operating income of $2.3M, resulting in an operating profit margin of 4.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Eltek Ltd. (ELTK) generated $8.0M in gross profit for the year, representing a gross profit margin of 15.4%. This demonstrates the company's core pricing power and production efficiency.