Breaking Down Foresight Autonomous Holdings Ltd. (FRSX) Financial Health: Key Insights for Investors

You are defintely looking at a classic high-tech, pre-revenue story with Foresight Autonomous Holdings Ltd. (FRSX), and it's a tough one to parse because the potential is massive, but the financial reality is stark. The latest data through the first half of 2025 shows the company's trailing twelve-month (TTM) net loss sitting at nearly $12.5 million, with a staggering operating margin of -2,823.07%, which is a clear sign that core operations are burning cash fast. Still, the opportunity is real: the $12 million potential commercialization deal with Zhejiang StreamRail for urban rail transit and the strategic $32 million revenue target by 2031 from the Indian drone partnership are concrete future catalysts that justify the high-risk play. The immediate risk is the cash runway, with only about $6.4 million in cash, cash equivalents, and restricted cash as of June 30, 2025, meaning the clock is ticking for these long-term deals to start generating real revenue. We need to map out precisely how the recent live trials in France for V2X (vehicle-to-everything) collision-prevention technology can bridge this financial gap.

Revenue Analysis

You're looking at Foresight Autonomous Holdings Ltd. (FRSX) and seeing a company with immense technological promise but still navigating the tricky pre-commercialization phase. The direct takeaway is that Foresight's revenue for the first half of 2025 (H1 2025) is small but shows a positive year-over-year (YoY) increase, driven by key proof-of-concept (POC) completions and early commercialization efforts.

For the six months ended June 30, 2025, Foresight reported revenues of $240,000, up from $224,000 in the first half of 2024. Here's the quick math: that's a YoY revenue growth rate of about 7.14% for the first half of the year. Still, the trailing twelve-month (TTM) revenue as of mid-2025 remains modest at around $452,000, which underscores the reality that this is an R&D-heavy company, not a mature sales machine. One clean one-liner: The current revenue is a barometer of progress, not profit.

Foresight's revenue streams are not yet from mass-market product sales but rather from strategic agreements, which is typical for a deep-tech innovator. These are essentially payments for reaching specific milestones or for early deployment of their 3D perception systems and cellular-based applications. The two main segments contributing to the H1 2025 revenue were the core Foresight business and its wholly-owned subsidiary, Eye-Net Mobile Ltd. (Eye-Net).

• Foresight Core: Revenue came primarily from the commercialization agreement with Elbit Systems Ltd., a defense technology company, demonstrating the application of their technology beyond just passenger vehicles.
• Eye-Net Mobile: The subsidiary, which develops a cellular-based V2X (Vehicle-to-Everything) collision prevention system, generated revenue from the successful completion of integration and live field testing with Software République, a European open innovation ecosystem.

To be fair, the nature of these revenue sources means they are lumpy and project-dependent, not yet the steady, recurring income stream you want to see. This is why the company is often still viewed as a pre-revenue entity, where its value is tied to its intellectual property (IP) and future contracts, not current sales volume.

Mapping Near-Term Risks and Opportunities

The significant change in the revenue outlook isn't in the 2025 realized numbers, but in the massive potential locked in newly signed deals. While the H1 2025 revenue is only $240,000, the company has secured a $12 million commercialization agreement with Zhejiang StreamRail Intelligent Control Technology Co., Ltd. for urban rail transit integration, with deployment expected in 2026. Plus, a strategic collaboration with an Indian drone manufacturer under the I4F program targets a projected $32 million in revenue by 2031.

What this estimate hides is the execution risk: these are multi-year, milestone-based contracts. If the technology integration or regulatory approvals hit a snag, those future revenue numbers get pushed out. Still, these agreements shift the narrative from perpetual R&D to confirmed commercialization pathways in high-value, non-automotive sectors like rail and industrial drones, diversifying the revenue base beyond the highly competitive passenger vehicle market.

Here is a quick look at the historical and current revenue figures to put the growth in perspective:

Your next step should defintely be to read the full analysis on Breaking Down Foresight Autonomous Holdings Ltd. (FRSX) Financial Health: Key Insights for Investors to connect this revenue picture to the cash burn rate and balance sheet health.

Profitability Metrics

You need a clear picture of Foresight Autonomous Holdings Ltd. (FRSX) profitability, and the direct takeaway is this: the company is a high-gross-margin, pre-profitability technology developer with massive operating losses as of its latest Trailing Twelve Months (TTM) data through mid-2025. It's a classic R&D-heavy growth profile, but the cash burn is significant.

Looking at the TTM period ending around mid-2025, Foresight Autonomous Holdings Ltd. generated total revenue of $\mathbf{\$452,000}$. The good news is the Gross Profit was $\mathbf{\$268,000}$, which translates to a high Gross Profit Margin of $\mathbf{59.29\%}$. This margin is strong, sitting well above the 40-50% gross margin range projected for future vertically integrated autonomous vehicle operators. This suggests the company's core technology and intellectual property (IP) is priced to deliver significant profit once sales scale up. That's a defintely positive sign for the product economics.

Here's the quick math on the current reality, though. Once you move past the cost of goods sold (COGS) and factor in the massive operating expenses required for research and development (R&D) and general administration, the picture shifts dramatically.

• Gross Profit Margin: $\mathbf{59.29\%}$ (Strong product economics).
• Operating Profit Margin: $\mathbf{-2,823.23\%}$ (Massive R&D/SG&A spend).
• Net Profit Margin: $\mathbf{-2,756.64\%}$ (Reflects high operating loss).

The TTM Operating Income (Earnings Before Interest and Taxes, or EBIT) stands at a loss of $\mathbf{\$12.76 \text{ Million}}$, which gives you that staggering negative operating margin. The TTM Net Income, which is your bottom-line profit, was a loss of $\mathbf{\$12.46 \text{ Million}}$.

Operational Efficiency and Profit Trends

The operational efficiency analysis is straightforward: Foresight Autonomous Holdings Ltd. is spending significantly more than it brings in to develop its technology and secure commercial agreements. In the first half of 2025, the company reported a GAAP net loss of $\mathbf{\$6.095 \text{ Million}}$. This loss is part of a clear trend, as the full-year 2024 GAAP net loss was $\mathbf{\$11.1 \text{ Million}}$. While the 2024 loss was a $\mathbf{39.5\%}$ decrease from the 2023 loss, the current TTM figures show the company is still deep in the investment phase, where cost management is secondary to securing market position and commercialization.

What this estimate hides is the potential of recent deals. The company signed a $\mathbf{\$12 \text{ million}}$ revenue potential commercialization agreement with Zhejiang StreamRail in May 2025, with deployment expected in 2026. They also secured funding for a $\mathbf{\$5 \text{ million}}$ joint development project for industrial drones in India, scheduled to begin in September 2025. These are major opportunities, but they are not yet reflected in the current TTM revenue or profit figures. The current losses are the cost of pursuing these future revenue streams.

To fully understand the context of these numbers, you should also be Exploring Foresight Autonomous Holdings Ltd. (FRSX) Investor Profile: Who's Buying and Why?, as the investor base needs to tolerate this level of cash burn.

Debt vs. Equity Structure

You're looking at Foresight Autonomous Holdings Ltd. (FRSX) and want to know how they fund their operations-it's a critical question, especially for a growth-stage technology company. The direct takeaway is that Foresight Autonomous Holdings Ltd. is overwhelmingly funded by equity, not debt, a common trait for high-growth tech firms still in the commercialization phase.

As of the most recent quarter in 2025, the company's debt load is minimal, suggesting a very conservative approach to leverage. Based on the Q2 2025 financial highlights, GAAP total equity stood at $5,625,000 as of June 30, 2025. Given a Total Debt-to-Equity (D/E) ratio of approximately 0.28, we can quickly estimate the total debt to be around $1,575,000 (Here's the quick math: $5,625,000 Equity 0.28 D/E). What this estimate hides is that most of this is likely short-term operational debt, as long-term debt has been reported as $0 in recent years. This is a very lean balance sheet.

The 0.28 Debt-to-Equity ratio is low, especially when you compare it to the broader industry. For a technology company, a D/E ratio below 1.0 is generally considered healthy, but Foresight Autonomous Holdings Ltd.'s number is even closer to the leanest sub-sectors, like the Computer Hardware industry average of roughly 0.24 as of November 2025. This low ratio means creditors have a small claim on the company's assets compared to shareholders, which is great for financial stability, but it also shows the company relies almost entirely on equity for capital.

Foresight Autonomous Holdings Ltd.'s financing strategy is a clear case of prioritizing equity funding to fuel development and offset significant operational losses. For the first half of 2025, the company reported a net loss of $6,095,000. To counter this, they raised substantial capital through the issuance of ordinary shares and warrants, totaling $4,482,000 net of expenses during the same period. They are funding their mission, which you can read more about in Mission Statement, Vision, & Core Values of Foresight Autonomous Holdings Ltd. (FRSX), by diluting ownership, not by taking on interest payments. They are simply not a debt-driven business.

This reliance on equity has a cost, of course. The company executed a 1-for-7 reverse share split in August 2025 to maintain compliance with Nasdaq's minimum bid price rule. This is a clear action that shows the pressure of financing a pre-profit, high-burn business model through shareholder capital. Their capital structure is simple, but it demands constant attention to the stock market's appetite for new shares.

• Debt-to-Equity Ratio: 0.28 (Low leverage).
• Total Estimated Debt: Approximately $1,575,000.
• Primary Funding Source: Equity, including $4,482,000 from share and warrant issuance in H1 2025.

The table below summarizes the core of their capital structure as of mid-2025:

The action item for you is clear: focus your valuation models less on debt-servicing capacity and more on the pace of commercialization and the potential for further shareholder dilution, as that is the primary risk here, not default.

Liquidity and Solvency

You're looking at Foresight Autonomous Holdings Ltd. (FRSX) and trying to figure out if they have the cash to keep the lights on while their technology matures. That's the right question to ask for a pre-commercialization tech company. The direct takeaway is that Foresight has a strong balance sheet liquidity position right now, but they are still burning cash from operations, meaning their long-term solvency hinges on continued capital raises or a major commercial breakthrough.

The company's near-term liquidity is defintely a strength. As of the Trailing Twelve Months (TTM) ending June 30, 2025, Foresight Autonomous Holdings Ltd. reported a current ratio of 4.02. This means the company has over four dollars in current assets (cash, receivables, etc.) for every dollar of current liabilities (bills due within a year). The quick ratio, which strips out less-liquid inventory, is essentially the same at 4.02. Honestly, a ratio above 2.0 is usually considered strong, so a 4.02 signals exceptional short-term financial flexibility.

Working Capital and Near-Term Strength

The high current and quick ratios translate directly into a very healthy working capital position (Current Assets minus Current Liabilities). The trend is clear: Foresight has maintained a significant buffer, which is crucial for a development-stage company with low revenue. They had approximately $6.37 million in Cash and Cash Equivalents on the balance sheet. This cash pile is the primary driver of their liquidity, allowing them to fund ongoing research and development (R&D) without immediate panic.

What this estimate hides, however, is the underlying cash consumption. The working capital is strong today because of past fundraising, not current sales. You need to look at the cash flow statement to see the real story. For a deeper dive into who is betting on this model, you should check out Exploring Foresight Autonomous Holdings Ltd. (FRSX) Investor Profile: Who's Buying and Why?

Cash Flow Statement Overview (TTM June 2025)

When we break down the cash flow statement for the TTM period ending June 30, 2025, we see the classic profile of a high-growth, early-stage technology firm. The company is not yet self-sustaining, but it is managing its capital expenditures tightly.

• Operating Cash Flow (OCF): This was a negative -$11.3 million. This is the cash burn rate from the core business activities-paying engineers, marketing, and general overhead. It's the most critical number for a tech company like this.
• Investing Cash Flow (ICF): This was nearly flat at a negative -$0.03 million. This low number shows the company is not making significant new capital expenditures (CapEx) or large investments in new assets, keeping the focus on R&D expenses which are captured in OCF.
• Financing Cash Flow (FCF): This was a positive $5.48 million. This is the lifeblood right now, mainly coming from the issuance of common stock and other financing activities. This is how they fund the negative OCF.

Here's the quick math: The net cash flow for the period was a negative -$5.67 million. The company is still shrinking its cash position, but the financing cash flow is significantly mitigating the cash burn from operations.

Potential Liquidity Concerns and Strengths

The main strength is the high liquidity position, backed by the 4.02 current ratio. This gives Foresight Autonomous Holdings Ltd. time to execute its commercial strategy, including the $12 million revenue potential agreement with Zhejiang StreamRail and the $5 million I4F drone project funding, both announced in 2025. However, the core concern is the sustained negative OCF of -$11.3 million. This cash burn requires constant external financing, which can lead to shareholder dilution. The Altman Z-Score, a measure of bankruptcy risk, is a very low -23.54, which is a red flag, but often skewed for pre-revenue companies. The key action is to monitor OCF and the success of their 2025 commercial agreements to see if they can flip that number positive.

Valuation Analysis

You want to know if Foresight Autonomous Holdings Ltd. (FRSX) is overvalued or undervalued right now, and the quick answer is that traditional metrics are screaming Undervalued, but the market's price action says High-Risk Speculation. The company's valuation is driven more by future potential in the autonomous vehicle space than by current financial performance, which is a classic early-stage technology stock dilemma.

Here's the quick math for the 2025 fiscal year data: Foresight Autonomous Holdings Ltd. has a market capitalization of only $8.75 million and an Enterprise Value of $3.45 million, as of November 2025. This small size, plus the stock's high volatility (a Beta of 2.25), tells you this is a high-stakes play.

When you look at the core valuation ratios, the picture is mixed:

• Price-to-Earnings (P/E): This ratio is Not Applicable (N/A). The company is currently unprofitable, with a consensus Earnings Per Share (EPS) forecast for Q3 2025 at -$1.110. When a company is losing money, the P/E ratio is meaningless, so you have to look elsewhere.
• Price-to-Book (P/B): The P/B ratio is 1.56. To be fair, a P/B under 3.0 is often considered reasonable for a growth stock, suggesting the stock is trading at a modest premium to its net asset value.
• Enterprise Value-to-EBITDA (EV/EBITDA): This is also N/A. Like P/E, this metric is not useful because the company's negative operating margins mean its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is negative.

What this estimate hides is the high Price-to-Sales (P/S) ratio of 19.35. This is expensive compared to the US Auto Components industry average of 0.7x, which shows the market is valuing the company on its massive projected revenue growth of 183.7% per year, not its current sales.

You should also know that Foresight Autonomous Holdings Ltd. does not pay a dividend. This is typical for a technology company focused on reinvesting all capital into research and development to achieve that high growth forecast, so the dividend yield and payout ratios are 0.00%.

The stock price trends over the last 12 months show brutal volatility. The stock has fallen by a staggering -51.97% over the last 52 weeks, with the price ranging from a 52-week high of $18.41 to a low of $1.98. The price was around $2.01 in late November 2025, and the entire year saw a price decrease of -80.25%, a defintely tough ride for existing shareholders.

Analyst consensus on Foresight Autonomous Holdings Ltd. is cautious, leaning toward a Neutral or Moderate Sell. Technical indicators are mixed, but the overall moving average trend is bearish, and one forecast gives it a Sell Candidate score of -3.597. The market is telling you to be careful here.

For a deeper dive into the company's financial health and strategic outlook, you can read more here: Breaking Down Foresight Autonomous Holdings Ltd. (FRSX) Financial Health: Key Insights for Investors

Risk Factors

You're looking at Foresight Autonomous Holdings Ltd. (FRSX) and seeing a lot of exciting technology-the 3D perception and V2X (Vehicle-to-Everything) solutions are defintely innovative. But as a seasoned analyst, I have to map out the near-term risks. The direct takeaway here is that Foresight is a high-risk, pre-commercialization play, and its financial health is precarious, despite recent partnership wins.

The core challenge is financial instability and the enormous capital required to compete in the autonomous vehicle space. Here's the quick math: for the first half of 2025, the company reported a net loss of approximately $6,095,000. That loss overshadows the total revenue for the same period, which was only $240,000. You can't ignore an operating margin of roughly -2823.07%; that's a massive cash burn rate relative to sales.

Operational and Financial Headwinds

The biggest internal risk is simply a lack of proven, scalable revenue. While the consensus revenue forecast for Q3 2025 was around $420.630K, the company's primary revenue streams-V2X accident prevention systems and subscription licensing-remain unproven at scale. This revenue uncertainty is why the stock price dropped by approximately 55% during 2025, from $1.01 to $0.45, reflecting deep investor skepticism.

Plus, there's the structural financial risk. The company's Altman Z-Score, a measure of financial distress, indicates a high probability of bankruptcy within two years. To be fair, the balance sheet isn't entirely weak; the current ratio is strong at 4.02, and the debt-to-equity ratio is low at 0.26. Still, that liquidity is a short-term buffer, not a long-term solution for fundamental unprofitability.

• Stock volatility is extreme, with a 24-month Beta of 0.23.
• Institutional flight saw 11 investors reduce or close positions in Q3 2025.
• The market capitalization of around $7.25 million is tiny.

External Competition and Mitigation Strategies

The external risks are immense because Foresight Autonomous Holdings Ltd. is a small fish in an ocean of giants. Its market capitalization is a fraction of industry leaders like Mobileye, which is valued at over $20 billion. This scale difference makes it incredibly difficult to secure large-volume commercial contracts and maintain the necessary research and development (R&D) spend.

However, the company is actively pursuing clear mitigation strategies to offset these risks, focusing on partnerships and diversification:

These partnerships, like the one with Renault Group and Orange S.A. for the Eye-Net solution's large-scale live public transportation safety trial in France, are crucial. They prove the technology works in the real world, achieving a 99% detection rate in the earlier phase. But remember, a trial is not a commercial deployment. What this estimate hides is the long sales cycle in the automotive industry; a successful trial today might not generate significant revenue until 2027 or later.

For a deeper dive into the valuation models, check out the full post: Breaking Down Foresight Autonomous Holdings Ltd. (FRSX) Financial Health: Key Insights for Investors. Your next step should be to monitor the Q4 2025 earnings report for any material change in the cash burn rate and the conversion of these new agreements into firm purchase orders.

Growth Opportunities

You're looking at Foresight Autonomous Holdings Ltd. (FRSX), a company still in the pre-revenue, commercialization-focused stage, so the growth story isn't about today's sales, but tomorrow's signed contracts. The near-term opportunity is defintely in the pipeline of strategic partnerships that validate their 3D perception technology across multiple, high-value verticals: automotive, rail, and drones. Their current Trailing Twelve Months (TTM) revenue as of November 2025 sits at just $0.46 Million USD, which tells you they are a technology play, not a revenue machine yet.

The real growth drivers are the commercial agreements signed in 2025 that begin generating revenue in 2026 and beyond. For example, the May 2025 agreement with Zhejiang StreamRail Intelligent Control Technology Co., Ltd., a Chinese rail technology company, has a revenue potential of $12 million. That one contract alone is a massive multiplier on the current revenue base. Also, the collaboration with a leading Indian drone manufacturer, Big Bang Boom Solutions Pvt. Ltd., targets a projected $32 million revenue by 2031 in the autonomous industrial drone market.

Here's the quick math on the analyst consensus for the full fiscal year 2025, which shows the market is still waiting for the big contracts to hit the income statement:

What this estimate hides is the lag between a contract signing and revenue recognition. The consensus 2025 GAAP Earnings Per Share (EPS) estimate of -$4.58 reflects the continued high Research and Development (R&D) spend required to convert proof-of-concepts (POCs) into mass production systems.

Foresight Autonomous Holdings Ltd. (FRSX) is positioning itself with a two-pronged competitive advantage: multi-spectral 3D perception and cellular V2X (Vehicle-to-Everything) technology. Their stereoscopic 3D perception systems combine visible-light and thermal cameras, which provides superior detection capabilities in adverse weather or low-light conditions, a critical need for autonomous systems.

Plus, their Eye-Net Mobile subsidiary offers a 'beyond-line-of-sight' collision prevention solution that uses existing cellular networks to alert drivers and pedestrians in real-time. This is a crucial differentiator from the typical 'in-line-of-sight' sensor systems. You can read more about their core philosophy here: Mission Statement, Vision, & Core Values of Foresight Autonomous Holdings Ltd. (FRSX).

The company is clearly focused on global expansion, particularly in cost-sensitive, high-growth markets. This is a smart move. Recent strategic moves that show this momentum include:

• Partnering with a Chinese manufacturer for affordable 3D perception systems, targeting India and South Korea.
• Entering a large-scale public transportation safety trial in France with Renault Group and Orange (November 20, 2025).
• Collaborating with Continental and a global Tier-One automotive supplier to enhance road and bus safety systems.

The key action for you is to monitor the transition of these POCs and commercial agreements into recognized revenue in the 2026 financial reports. The technology is validated by major industry players; now the business model must scale.