DUKE Robotics Corp.

What they do

Duke Robotics develops robotic and drone-based systems, principally an advanced stabilization system that enables remote, real-time, pinpoint-accurate firing of small arms and light weapons. It also sells the IC Drone, a drone system for cleaning high-voltage electric utility cable insulators, and operates mainly through its wholly owned Israeli subsidiary Duke Airborne Systems Ltd. and its Greek subsidiary Duke Greece.

Revenue drivers

• IC Drone utility maintenance services (IEC) — Service revenue from cleaning electric utility cable insulators for the Israel Electric Corporation under a purchase order received in March 2026 that management expects to generate over $1 million in revenue during 2026.
• Bird of Prey stabilized weapons drone royalties (Elbit) — Royalties from Elbit Systems Land Ltd. sales under a January 2021 collaboration agreement; revenue is recognized when Elbit delivers systems and receives proceeds, not when orders are placed.
• Direct defense marketing commissions (Elbit supplement) — An April 2025 supplement letter lets Duke market the system to military, defense, homeland security and para-military customers in coordination with Elbit, earning a mid-single-digit percentage commission on resulting proceeds.

Recent performance

Annual revenue was $377,000 in 2025 against a net loss of $1.2 million and negative operating cash flow of $811,000. Quarterly revenue was $216,000 in Q3 2025 and $149,000 in Q2 2026; the 2026 second quarter also included the expanded IEC IC Drone season and a new Bird of Prey order through Elbit. At June 30, 2026 the company reported total assets of $7.5 million, total liabilities of $867,000, shareholder equity of $6.6 million and cash and equivalents of $7.0 million, largely reflecting a completed underwritten public offering of approximately $9.2 million in gross proceeds.

Strategy

The company is running two tracks in parallel: defense, through the Elbit relationship and the Bird of Prey stabilized weapons drone, and civilian infrastructure maintenance, through the IC Drone. It is expanding IC Drone operations with the IEC on a substantially larger scale and integrating the system with a larger commercial-grade airframe for greater payload and flight duration. It received operational authorization from the Hellenic Civil Aviation Authority in January 2026 for IC Drone operations in Greece and is in discussions to extend the service to additional international markets. Defense and drone-technology veteran Yiftach Kleinman was appointed incoming Chief Executive Officer, expected to begin no later than September 8, 2026, succeeding Yossef Balucka, to lead defense expansion and commercial platforms.

Risks

• Going concern — Management states that current cash on hand will not be sufficient to fund projected operating requirements for twelve months from the issuance of the financial statements, raising substantial doubt about the ability to continue as a going concern.
• Customer concentration — Revenue depends heavily on a small number of counterparties, principally the Israel Electric Corporation service purchase order and Elbit royalty/commission arrangements.
• Elbit royalty timing — Royalty revenue is recognized only when Elbit delivers systems and receives proceeds, so order announcements do not translate directly into near-term reported revenue.
• Regulatory and export approvals — Sales and exports of stabilized weapons systems require required regulatory approvals, and IC Drone expansion depends on authorizations such as the Greek SORA-based operational authorization.

Outlook

Management expects the IEC purchase order to generate over $1 million in revenue during 2026, an increase over prior service activity, and expects Bird of Prey royalty revenue to be recognized as Elbit delivers against the new 2026 order. It points to a larger commercial-grade IC Drone airframe and potential international expansion beyond Greece, alongside a new CEO focused on defense growth. The company continues to expect to fund cash needs through debt or equity financing until significant revenues are generated.