Eltek Swings to Q2 Loss of $2.7M as Revenue Declines 8%
ELTK sits 25% above its 52-week low of $7.3.
Summary
Eltek reported Q2 2026 revenue of $11.5 million and a net loss of $2.7 million, a sharp reversal from the prior year's profit, as the company navigates a manufacturing transition.
Key Events · Earnings and Guidance · ELTK
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Q2 Revenue Declines 8%
Revenue fell to $11.5 million from $12.5 million in Q2 2025, reflecting lower demand or production disruptions during the transition.
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Net Loss of $2.7 Million
Eltek swung to a net loss of $2.7 million ($0.41 per diluted share) from net income of $0.4 million a year earlier, driven by a gross loss of $1.0 million.
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Gross Margin Collapses
Gross profit of $3.0 million (24% margin) in Q2 2025 turned into a gross loss of $1.0 million in Q2 2026, indicating severe cost pressures or inefficiencies.
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Six-Month Loss Widens
For H1 2026, net loss was $5.6 million ($0.83 per share) compared to net income of $1.4 million in H1 2025, with revenues down 13% to $22.0 million.
Analysis · ELTK · Manufacturing
Eltek reported a significant deterioration in profitability for Q2 2026, swinging from a net profit of $0.4 million a year ago to a net loss of $2.7 million. Revenue declined 8% year-over-year to $11.5 million, while gross margin collapsed from 24% to a gross loss. The company attributes the weakness to an ongoing transition period focused on stabilizing manufacturing operations and integrating new production lines. Despite the losses, cash position improved to $9.4 million, providing some runway. The magnitude of the earnings miss and the shift from profit to loss make this a notable event for investors.
At the time of this filing, ELTK was trading at $9.16 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $60.8M. The 52-week trading range was $7.30 to $11.59. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.