Good afternoon, everybody. With me here is Michael Grosman, the CEO, and Alex Lavi, the CFO of NextVision. First of all, I would like to say that this webinar is no substitute for reading the reports and financial statement that we just published in the MAYA. I will start with some background. Michael will go through the presentation, and we will make sure that we leave some time for Q&A in the end. Just to remind, NextVision is a leading company that sells stabilized video solution for small platform.
We consider ourselves as an R&D company, meaning this is the way we think and act, and actually, we try to bring to the market every year in between two to three new products. Usually, those products would be a game changer in the market. Our claim to fame in the market is the ratio between size and weight and performance considered to be the best. When you compare apples to apples, you will find that NextVision solution will be usually cheaper than our competitor solution and in a very high level of reliability. Some of the things that we done in 2025 regarding revenue, I remind you that the board goal for the management team was ILS 160 million revenue, and we done ILS 168 million.
The goal that we got for 2026 is ILS 275 million, meaning 64% growth, internal growth. We did four months ago a global offering and raised ILS 414 million, and the reason for that was to give us the ability to acquire a company and do some M&A work in our company. Ninety percent of the investors were global investors. The company cap today is around ILS 10 billion. We consider to be a growth company. We had average annual growth for the last five years more than 70%. Our backlog for now, for today, is ILS 288 million. Most of it is for the next 12 months.
We are putting a lot of efforts today to be able to deliver the huge demand that we see from the market. Today, we can deliver around 2,000 units per month, and we are planning to grow with that for more than 4,000 units per month until the end of 2026.
Thank you, Chen. We are providing observation solution that consists of 12 different camera models that span the weight between 100 gm and 2 kg, which literally means that every drone vendor can find a model which tightly fits its requirements. We also provide accessories to ease and expedite the integration of the solution of NextVision. They include some mechanical items, but also the video processing units, which provide breadth of video processing capabilities, including object recognition, target tracking, and other sought capabilities. In addition, we also include software to control and manage the observation solution of NextVision. By doing that, we are literally acting as a one-stop shop for the observation solution of the drone vendor. We are an R&D company which strive to release to the market two to three new product each year.
In 2026, we will leverage on the success of the RAPTOR and any offering of RAPTOR with three-axis , which will enable higher maneuverability when operating quick drones. We are also introducing the Stinger, which is destined for high speed performance and manufacturing on a very large scale. Last but not least, we will introduce the TRIP-7, which continue the successful TRIP accessory line, which provides advanced video processing capabilities and more horsepower to perform them. What substitute the success of NextVision? What sustained that? We see we can identify four pillars. First and foremost, the technology, where the claim to fame is that what you can see with NextVision equipment, you cannot see with other equipment with similar size and weight . Second is giving the experience and the field proven capabilities of the product which sustain the confidence level that the drone vendors require.
Next is the production capability, which we constantly increase in order to be able to meet market requirement. Last but not least is the financial strength. When you are looking at the situation in the market with the chaotic supply chains, the only remedy for that is inventory. NextVision leverage its financial strength in order to acquire the right amount of inventory and buffer all the shock waves in the supply chain between the market and its customers. This all provide the competitive advantage that NextVision provide to the market. Well, the market is out there and is growing. We are just witnessing another conflict in the Middle East, where the usage of drone is being highlighted once again, and the importance of drones to the modern battlefield.
This all being converted into the decision by the various countries in the Western world to increase the arsenal, to increase the inventory and capabilities that are based on drones and unmanned vehicles. This in return increase the demand for the payload, for the camera payload, the EO/IR payload, because in many cases, the reason for taking the drone up there to the sky is to be able to see and collect information, the reconnaissance mission. In many other missions, it's loitering munition, where once again you need to have a camera payload in order to be able to reach the target, especially where in the modern battlefield, the GPS is usually denied and not available to you. We see that global defense spending is skyrocketing, not only in the U.S., but also in Europe.
When we combine all these trends and all these signals from the market, what we see is an increasing demand for small drones and increasing demands for the camera for drones, where NextVision benefits from that and supplies a large part of this demand. We currently have a footprint all over the Western world, serving mainly the system providers and enabling them with the highest technology at a good price level. As you can see, as we anticipated in the past, while the European market is still holding the largest share, North America market is growing at a much larger pace and taking a larger share in NextVision revenue. We are being trusted by the key names and suppliers in the unmanned world. To name a few of them, we are here.
You can find here Anduril, you can find here Quantum-Systems, you can find here Elbit and other names that have selected NextVision and embrace its solution in their offering. When we are looking at the various merits of NextVision performance, we see growth all over. We see growth in the income, both the net and the operating, in the profit, revenue, backlog, active number of customers. We intend to sustain and continue this growth also in 2026. If we compare year by year, we see the sustained growth. If the revenue at 2025 was $168 million, the current target of the board of directors is $275 million for 2026, which represent a growth of over 65%. Compare that to the growth in 2025, which was 46%. In a sense, NextVision accelerates its growth pace.
The financials also tell the success story of NextVision, where we see that the gross margin is being maintained at over 69%. We see that the total R&D, the one that you see here in the P&L, and the R&D that was amortized into an asset, is over $8 million. The bottom line, with a net profit of $103 million for year 2025. This is a significant growth compared to 2024. In order to sustain this growth, and in order to cater and stand up to the expectation of NextVision customers, which do expect to see a very large volume delivered to them in 2026, we are expanding, both in terms of real estate, a major expansion in the real estate that is allocated to the manufacturing.
Expansion in the headcount of the production from nearly 40 to over 90. If we are putting all that into numbers, then from the starting point of 2,000 cameras per month, we would like to reach over 4,000 per month toward the end of 2026. This is the goal of NextVision in order to be able to cater to the demand and orders that it has from its customers. Moving forward, it is important to note that NextVision management is putting large portion of each time and effort into reviewing and looking for strategic acquisition. We are all always speaking about that, and we are actually not only speaking, but investing energy into that. We see external growth, even though the internal growth is quite massive. We see opportunity in external growth, and we would like to materialize that.
Besides that, we are putting in effort as an R&D company into increasing the offering, giving more for the same price that was paid before. All of that should sustain and even further accelerate the growth rate of NextVision. Like we said, we would like to allocate most of the time into the Q&A, as much of the information is already being presented in the docs of NextVision, in the financials. I will go over some of the questions. First is, what can we say about the first quarter of 2026? The first quarter of 2026 has started with a massive flow of orders. They were not acquired easily. We have put a lot of work into that, but this work has materialized.
If we are looking at the backlog at the moment as we speak, this is over $220 million for 2026 only, and this is out of a backlog of over $280 million moving forward. Nearly 80% of the backlog that we are having is expected to be delivered in 2026, and we are at early March, and we see huge demand moving forward. We are actively in discussions about additional orders, many of them also for 2026. Let's see what will be materialized, but we are definitely see a very strong quarter for NextVision in terms of the activity and achievements. The second question was about the production and assembly line increase in light of that.
Well, like I said, we significantly increased the land, meaning the area and the facility where we manufacture, but not only that, we are also more than doubling the capacity, the personnel, the headcount which perform the actual assembly. This is besides increasing operational personnel. The third thing which we should always remember, inventory. We are heavily investing in inventory in order to be able to sustain. The recent conflicts and other global factors make the supply chain to be much chaotic, and in other words, it is very difficult to rely on the supply chains that we find in the market. The only way to buffer that between this chaotic behavior and a sustainable delivery to our customers is to buffer that with inventory.
We leverage our financial position, make the right decisions about inventory, and assuring our customers and partners that they can rely on NextVision, and this is a paramount quality of the company. There is a question about what type of growth we are looking in the next three years. Well, the target growth for 2026 was set by the board of directors, and if we look at the past five years, well, then in each year, NextVision revenue surpass the target of the board of current directors without sacrificing the margins, without expensing them. We expect that the efforts that we are doing will continue this line. Now, the large demand that we see in the market makes us confident that the growth will continue. However, this is internal growth.
We will show external growth as soon as we materialize the capabilities that we have to acquire companies. There is a question about the main bottlenecks in materializing the target in 2026. While we are presenting a situation where there is a high demand, high backlog, and we are increasing the manufacturing capabilities, increasing inventory, still nothing comes easy. It all puts great demand over the employees of NextVision, which are required to sustain all of that, so there are bottlenecks, and the bottlenecks are the headcount that we need to be able to train as quickly as possible and to reach the level that is required in order to sustain the quality of the products.
This is a bottleneck that we are fighting by opening, training on a weekly basis for new recruits and new persons that are being added to NextVision manufacturing capability. The other are the chaotic supply chains, especially with some of the high-end processors and some of the delicate items in the market, and also some of the changes, the political changes in the market. We are doing our best to be able and acquire as soon as possible and hold as much inventory as possible. Besides that, last year we have started the process of having the capability to manufacture NextVision cameras outside of Israel, outside of NextVision facility. The recent occurrences of the recent conflict are delaying us from completing that, but we will definitely complete that, and we will be able to offer NextVision equipment that is being manufactured outside of Israel.
There is a question about the AI and the capabilities that we are providing and what we can add to that. The AI capabilities are being sold as part of the video processing units. In 2026, we are going to offer to other companies to buy some of the capabilities as software, which will increase the revenue from the investment that we have made in these capabilities. There is another question about how fast can we double the production capability. Well, as far as we are concerned, it is as soon as possible. In order to be practical with the hurdles and the bottlenecks, then it seems like at least at Q4 we will be able to do that. Another question is about pricing level, and that's related to the strong demand that we are seeing.
Are we considering price increase in light of the strong demand? NextVision provides stabilized systems to our customers, and we have no intention to change pricing level, as we have not changed that in the last five years. What we do is we introduce new products at some different price points. Usually they are destined for lower price point at higher capacity, at higher volume. This is one thing that we do. The other thing is that we are providing more for the same price, meaning we do not change the price of the product, but we are adding capability to the products. This provides our customers the comfort that they are seeking when incorporating NextVision equipment into their offering. Another question is, how can we further accelerate the penetration into the U.S. market in 2026?
Well, first, by introducing products and capabilities that address the requirement in the market. Being able to offer products that are U.S. made, and being able to leverage on the current success with the current customers while approaching new players in the U.S.
I would like to highlight two things that are connected. One is the competitor issue and the positioning of the company in the market. We see some competitors in the market. Usually they will be small companies, and today I think even though still NextVision have the best solution in the market, the barrier for those company now and the main issue is the capacity, and we don't see a lot of companies that can actually deliver the quantities that we see from the big players, the big system providers in the market. That's all for me. Michael, any other?
Yeah. There is a question about a U.S. listing. We put our eyes on that all the time. This also involves the board of directors of the company, and it can be a matter of timing. When the right time arises, NextVision will know, as we have demonstrated with the global offering, that we will know, and we will be able to complete such move.
We don't see the listing in the U.S. as a target for us. We will do that in a second that we will understand that it will be a benefit for NextVision and for NextVision shareholders. That's all the questions that we got. We are open to get some more. If you can send them by email, I will make sure that you will get the answer as soon as possible. I would like to thank you again for taking the time with us and say that we are coming every morning to this company, working very hard to do the job and make sure that NextVision will continue to be the leading company in the market. Thank you very much for your time.
Thank you.