Rail Vision announces second half and full Year 2025 financial results

Rail Vision Ltd. (“Rail Vision” or the “Company”), an early commercialization stage technology company transforming railway safety through advanced AI-integrated sensing systems, today announced its financial results for the second half and full year ended December 31, 2025.

The Company reported revenue growth and operational progress, strengthening its global market presence. “2025 was a transformative year for Rail Vision,” said David BenDavid, Chief Executive Officer. “We advanced key installations with Israel Railways, secured follow-on orders from a leading mining operator in Latin America, penetrated deeper into Central America, and launched a high-profile proof of

concept in India with Sujan Industries – all demonstrating strong validation of our AI-driven safety solutions in real-world, demanding environments. The global railroad industry was valued at over $340 billion in 2025 and projected to grow toward $460 billion by the mid-2030s. In this expanding market, we are leveraging our technological leadership in cutting-edge obstacle detection and railway analytics as we aim to drive safer, more efficient rail operations worldwide and deliver long-term value to our stakeholders and partners.”

2025 and Recent Business Highlights

Israel - Rail Vision continued installations and operations of its MainLine systems with Israel Railways. The partnership was publicly highlighted at CES 2026 as cutting-edge AI obstacle detection technology. In addition, the Company aims to expand its product offering by deploying its ShuntingYard product within Israel Railways’ cargo division.

Latin America - Rail Vision secured a $335,000 follow-on order from a leading mining company following a successful long-term pilot under challenging environmental conditions, reinforcing commercial validation in the region.

Central America - Rail Vision received a purchase order for its MainLine system from a leading freight rail operator, marking continued geographic penetration.

India - Rail Vision signed a Memorandum of Understanding with Sujan Industries aimed at entering the Indian rail market. In March 2026, the Company announced the successful completion of a proof of concept

demonstration of its MainLine system in India, receiving positive feedback from the customer on performance and suitability for potential controlled deployment.

Quantum-AI Expansion- The Company completed the acquisition of a 51% stake in Quantum Transportation, positioning it as a majority-owned subsidiary. Quantum Transportation unveiled a breakthrough transformerbased neural decoder for quantum error correction that outperformed classical algorithms in simulations. Rail Vision is exploring long-term synergies between quantum computing and railway AI applications.

Full Year 2025 Financial Results

Revenues for the year ended December 31, 2025, increased by 14.4% to $1,487,000, compared to $1,300,000 for the year ended December 31, 2024. Revenue growth was primarily driven by additional MainLine installations for Israel Railways, a MainLine system purchase by a Central American freight operator, a follow-on MainLine system order and spare parts sales to a Latin American mining company and services provided to existing customers.

Research and development expenses for the year ended December 31, 2025, increased by 30.0% to $6,864,000 compared to $5,279,000 for the year ended December 31, 2024. The increase was primarily attributable to higher salaries due to increased headcount and salary levels, absence of temporary salary reductions that were in effect

during part of 2024, depreciation of the U.S. dollar against the NIS, higher share-based compensation and increased purchases of R&D equipment.

General and administrative expenses totaled $5,423,000 for the year ended December 31, 2025, compared to $4,175,000 for the year ended December 31, 2024, representing an increase of $1,207,000 or 29.9%.

The increase was primarily attributable to higher salaries including salary adjustments and one-time bonuses, increased share-based compensation, including new grants to employees and service providers and currency impact, partially offset by lower marketing expenses.

As a result of the foregoing, the Company’s operating loss for the year ended December 31, 2025, was $11,735,000 compared to an operating loss of $9,004,000 for the year ended December 31, 2024.

For the year ended December 31, 2025, we recorded expenses in the amount of $380,000 due to the revaluation of derivatives, warrants liabilities and others in connection with shares issued under the Standby

Equity Purchase Agreement (SEPA). This compares to expenses of $20,181,000 for the year ended December 31, 2024, which were primarily related to warrants issued in a private placement and a

convertible loan credit facility the Company entered into in January 2024.

Other financing income amounted to $1,015,000 for the year ended December 31, 2025, mainly driven by interest income on short-term deposits. This compares to $1,523,000 of other financial expenses for the year ended December 31, 2024. The $2,538,000 change is primarily attributable to the full amortization of the discount related to the convertible loan credit facility recorded in 2024.

GAAP net loss for the year ended December 31, 2025, was $11,100,000, or $6.15 per ordinary share, compared to a GAAP net loss of $30,708,000, or $55.41 per ordinary share, in the year ended December 31, 2024.

Non-GAAP net loss for the year ended December 31, 2025, was $9,260,000, or $5.13 per ordinary share, compared to a non-GAAP net loss of $10,129,000, or $18.28 per ordinary share, in the year ended

December 31, 2024.

A reconciliation between GAAP operating results and non-GAAP operating results is provided in the financial data that is part of this release. Non-GAAP results exclude stock-based compensation expenses and revaluation of derivatives, warrant liabilities and other.

Balance Sheet Highlights (as of December 31, 2025): Cash and cash equivalents totaled approximately $20 million.

The Company had zero financial debt. Shareholders’ equity totaled $20.3 million, compared to $17.7 million at year-end 2024.

Financing activities

During 2025, net cash provided by financing activities was $11.8 million, primarily from issuances under the SEPA and ATM facilities and warrants exercises.

Second Half Financial Results

Revenues for the six months ended December 31, 2025, were $1,250,000, compared to $539,000 for the six months ended December 31, 2024, representing an increase of 132%, mainly

comprised from higher system deliveries and installations.

Research and development expenses for the six months ended December 31, 2025, were $3,623,000, compared to $2,821,000 for the six months ended December 31, 2024, representing an increase of

28%. The increase mainly reflects higher salaries due to increased headcount and salary levels and depreciation of the U.S. dollar against the NIS, higher share-based compensation and increased purchases of

R&D equipment.

General and administrative expenses for the six months ended December 31, 2025, were $2,911,000, compared to $2,059,000 in the six months ended December 31, 2024, representing an increase of 41%.

The increase mainly reflects higher share-based compensation, including new grants to employees and service providers, increase in salaries and professional fees and currency impact, partially offset by

lower marketing expenses.

As a result of the foregoing, the Company’s operating loss for the six months ended December 31, 2025, was $6,030,000 compared to an operating loss of $4,819,000 for the six months ended December 31, 2024.

Other financing income amounted to $609,000 for the six months ended December 31, 2025, mainly driven by interest income on short-term deposits. This compared to $219,000 other financing

expenses for the six months ended December 31, 2024.

GAAP net loss for the six months ended December 31, 2025, was $5,421,000, or $2.82 per ordinary share, compared to a GAAP net loss of $6,384,000, or $9.12 per ordinary share, in the six months ended

December 31, 2024.

Non-GAAP net loss for the six months ended December 31, 2025, was $4,390,000 or $2.29 per ordinary share, compared to a non-GAAP net loss of $4,736,000, or $6.77 per ordinary share, in the six months ended December 31, 2024.