Good afternoon, everybody. I would like to start and thank you all for taking the time with us today. My name is Chen Golan. I'm one of the founders and active chairman of the company. With me here today, Michael Grossman, the CEO of the company and founder of the company, and Alex Lavigne, the CFO of NextVision. The webinar today is about the Third Quarter Financial Statement of NextVision for 2025. We will try to do the presentation very short, so we will leave you enough time for a Q&A. I'll just remind everybody that we are a public company. As a public company, we can answer your questions about things that we already published. We are doing the webinar today in English, and the reason for that, as you all know, is because we have done a global offering in mid-September when we raised $414 million to NextVision.
I think more important of that is that we have more than 40 global investors to join NextVision, and for that reason, we are doing the webinar in English. I would like to take the opportunity and thank again the Jefferies team for the great job that they've done with us on the global offering. Thank you. A little bit of background on the company. NextVision was founded, as everybody knows, in 2009. We done an IPO in the Tel Aviv Stock Exchange in June 2021. The price of NextVision stock in 2021 was $1.5. Today's stock price is $47, and the company cap is around $42 billion. On Sunday, it was the day that NextVision entered the Tel Aviv Index 35, and it was the first day that we were traded as a company in the Index of 35.
NextVision considers itself as an R&D company, meaning this is the way we think and act, and we try to bring to the market every year in between two to three new products. Those products will be usually a game changer in the market and will help us to continue to be the leading company in our market. The claim to fame of NextVision, I remind you all, is the ratio between the size and the weight, the size and the weight and the performance of our solution. When you compare apple to apple, you find that our solution usually will be cheaper than our competitor's solution and in a very high of reliability. That's all, Alex.
Hello, good afternoon. My name is Alex. I'm the CFO of the company. Let's go through our financial highlights for the nine months of 2025. First of all, as you can see, our gross profit is around 71%. Our operating profit is around 61%, and our net profitability is around 60%. Now, regarding our Q3 gross profit, we can see that our gross profit only for Q3 has slightly decreased. It's mainly due to volume discounts that we gave to our customers and a slight increase in few components that we are purchasing from our suppliers. For both of the reasons, we cannot determine if the trend will continue the same way, but we are doing our best to remain around the 70%.
As you can see now, proportionately, we remain for the nine months for around 70%, and this is what we hope to achieve by the end of the year. Now, regarding our R&D expenses, as you can see, it's around $4 million, but it's very important to remember that part of our R&D expenses are being capitalized into an intangible asset. Our R&D gross expenses for the nine-month period is around $6 million. Now, regarding a few more highlights from our financial statements. First of all, as Chen mentioned, we have the successful global offering of $400 million net. Most of the money is in financial deposits, in bank deposits with a fixed interest rate. It's being kept there for future investments, as we declared in the global offering. Now, regarding our revenues, a few highlights.
As you can see, our Europe increased to 57% of our sales. The U.S. is increased to 26% in comparison to 15% from the period last year. We can see the trend. The trend is highlighting the U.S. sales through the year. Regarding our main customers, it's the same two main customers that we published before. We can see that the trend has remained the same as the two of them, makes up around 30% of our sales. Okay, so regarding a few points, our active customer base has increased to 189 customers for the nine-month period of the year. Regarding our backlog, it's important to mention that for now it's $124 million, and it's for a specific date, meaning the date of 9th November. It increased from $70 million in comparison to November 10th, 2024, of last year.
It's important to mention that we are publishing only deals from above $2 million. So everything beneath the $2 million is not being published, and there is not a few of them. There is a lot of them through the period. It's also worth to mention that if you would look from the periods for past years, we usually show a decrease in our backlog for this period from Q2- Q3, and now we can see an increase. So it's also worth to mention.
The key drivers and focus of NextVision has always been on providing a reliable and available offering to our customers. We continuously expand the client base, making sure that additional new vendors will embrace NextVision solution and that NextVision will be used within additional programs of existing customers. We constantly increase the investment of R&D. As you probably noticed, we focus on adding additional AI capabilities that are being embraced by the market. Last but not least, we are focusing on external growth of the company by working on possible acquisitions, definitely following the raise and the global IPO, which was very successful. We will turn now into Q&A.
A question which repeats itself refers to the gross margin. What is the trend in the gross margin? As you're probably aware, NextVision price table is based on quantity.
The higher the quantity in a PO, the lower the price per unit, which means that as NextVision successfully grows in the market, it receives a growing size of orders. On that orders, the price is lower than on previous orders, which are of lower volume. This is the reason that we see that the average selling price and the gross margin are going down. Nevertheless, as we always say, traditionally, NextVision sells with a gross margin between 65% and 70% plus, and we do not see a reason that there will be a material change in that. Another question refers to duties, and most probably duties to the U.S. and other countries.
NextVision does not put the duties as part of the cost of goods, simply because if there are duties that are being imposed, they are not on the cost of goods, and they are not related to the cost of goods. The cost of goods only refers to any other items which are of relevance but not duties. Another question is about the position and the status of both Raven and Condor cameras. We are seeing a growing embrace of the Raven and that it's being tested by a growing number of vendors. It is very important to note that these processes do take time. In order to embrace a new technology like the Raven and its capabilities, we do expect that it will take some time. It's not something that happens within a month. In our opinion, we are on track with the Raven.
We see growing sales of the Raven. We just need to be adjusted to the pace of the type of market which the Raven serves. About the Condor, the great news is that given that the unique capabilities that the Condor provides do make a difference in the market. We are not only receiving a lot of attention for the Condor, but we also see that upcoming tests of the Condor with very important customers do take place, and we do expect that the Condor will soon start to affect the sales of NextVision. There is a question about the mix of sales between the commercial or industrial, first responders, security, and military.
Now, while we do not have the exact distributions, we can definitely say that military is the largest, then comes security, and last but not least, to a relatively small at the moment percentage, are the industrial application. Now, we always stress that this has to do with the market. Since most of the budget in the market is being allocated to the military segment, we see the higher demand in the military segment. We also see the phenomenon where vendors of equipment that was originally destined to commercial application, for example, agriculture, is being diverted and changed into military or security applications. To summarize, this is a trend which NextVision reacts to. We do not set the trend. We do not determine to which market segment the product will go.
About the U.S., as we always say, we do expect that the U.S. will be responsible for a growing chunk of the sales of NextVision, not because Europe is not growing, but because we see a higher growth pace in the U.S. market compared to the growth pace in Europe. We still see that, and this is being reflected by the numbers that we see. I do recommend to look not on a quarterly base, but in this case, on a three-quarter base, to compare three quarters to three quarters, because this alleviates the changes between quarter to quarter that can be point changes and not reflect the phenomenon.
We do expect that the share of U.S. sales will continue to grow going forward, given the focus and the attention that we see and the budget that we see that is being allocated in the U.S. to drones. There is a question about the sales of U.S. equipment specifically to the U.S. military. I would like to stress that NextVision sells to the drone vendors, which in turn do sell to their customers and users. When it comes to military, some of that goes to the U.S. administration and specifically to the U.S. military. We do see and we are aware of sales that eventually go to the U.S. Army. We do see a growing pace in that. Nevertheless, we cannot provide specific numbers about the volume and size of sales that eventually reach the U.S. administration.
There is a question if it's mandatory that on every drone, and the question was specifically about military, but it also relates to military, security, industrial drone, which on every drone there must be a camera. Most likely that on every drone there will be a camera, most likely. Nevertheless, we need to question what type of camera. Some of the cameras can be cameras without zoom, can be day only without zoom, very wide field of view. There are some drones who carry this type of camera, meaning not on every type of drone there is a requirement for zoom camera or capabilities of video processing. Most definitely, on almost every drone you will find, you will find some type of camera.
There is another question about the new initiative in the U.S., the 1 million drones initiative, which also relates to questions about NextVision offering for smaller drones. Yes, definitely NextVision is working on an offering. Some of this offering was already being exposed to key customers, which are of relevance for this type of offering and requirement. We definitely have our eyes on the ball in this segment. There is a question about forecast. The question does use the word forecast, and what about the forecast of NextVision? I would like to reiterate that NextVision management receives target revenue target from the board of directors, not a forecast. This target has not changed by the board. The management of NextVision did not receive a new target or a changed target from the board of directors.
Nevertheless, as we said before, when we are looking forward both to this year and the next year, NextVision is both very optimistic and it's very excited about the demand that it sees in the market from its customers. There are some questions about the acquisition that we are looking for. Like I said before, we are actively pursuing and we are in discussion with several potential companies about this. We are looking for a company that addresses the same market like NextVision addresses, meaning the system providers, the drone vendors. We speak with several. Some of them, the discussions are in a more advanced state. We definitely invest time on that. Nevertheless, we will do the right acquisition of NextVision.
We allowed ourselves a time frame of 6-12 months in order to exhaust and be able to add to NextVision the right company at the right segment. I believe that additional news will be provided as we move forward with this effort. There is a question about the focus. What is the activity on which NextVision focused at the moment? First of all, there is the activity of the external growth, which means that we do look into companies that we are in an advanced stage of discussion with them. We do seek for other companies and the way to reach them, since for NextVision, external growth is a very important target. Another target of the company is to get ready for the production in 2026.
We do anticipate growth in the production in 2026, and we are getting ready to that, which means hiring people, getting the equipment. We are at the moment comprising two floors in the building that we are staying in, and we are taking additional half floor from January 1, 2026. This is all part of the effort, which eventually will give our customers and partners the knowledge and the confidence that NextVision can supply their demands and their surging demand. There is a question about inventory levels at NextVision. Definitely the inventory level has increased. I do assume that many of you are aware, for example, to what happens in the field of rare minerals, and that definitely has effects on availability of components.
We still see a fragile environment in which the lead time of components can almost instantly change from three months to six months just by that. As long as this environment in which we operate continues and does not stabilize, NextVision does stabilize the situation by inventory. As for the size or level of inventory, we do not expect to increase it significantly from the point that we are standing, but we also do not expect to reduce it significantly, considering the instability in the markets, in the component markets, in the items market. This is also part of the message of NextVision to its customers and suppliers, that NextVision is a reliable vendor that you can rely on, that it will provide you what you need at the right time in terms of supply.
There is a question regarding income from interest.
Basically, as I mentioned, most of NextVision cash are in bank deposits. The bank deposits are closed for a short-term period, meaning up to 12 months. The interest rate currently that the company is receiving for those, the interest that it received from those deposits is around 4.5%-4.9%, depending on the period of time that it was closed. We manage this the way so every deposit will have the financial possibility to use the money at every certain point of time that will give us the maximum flexibility from other initiatives that we try to do for the company. That's it.
Any other questions we have? There are many questions about specific customers, and I do request your understanding that NextVision does not relate to specific customers. We are operating under strict NDA between NextVision and its customers, and unfortunately, we cannot relate specifically.
I think we got all the questions, and I remind you that you can contact us anytime. We are available to answer other questions that you might have in the future. I would like, again, thank you all for having the time with us. Appreciate that, and thank you very much.
Thank you.