Rami Levy's drone company reports sharp revenue growth, but losses persist
In its first report since the IPO, Cando Drones shows a doubling of revenue and improved gross margins. While the auditor has removed the "going concern" note, the company continues to operate with a net loss and an accumulated deficit of 27.9 million shekels.
The drone company Cando Drones, in which the Rami Levy chain holds nearly a 20% stake, has published its first financial report as a public company for the first half of 2026. The results highlight a sharp jump in revenue and profitability, contrasted by persistent losses and negative equity.
The report follows the company's initial public offering on the Tel Aviv Stock Exchange, which raised approximately 19 million shekels gross.
Financial Performance
Cando's revenue for the first half of the year totaled about 7.84 million shekels, compared to 3.19 million in the same period last year—a 146% increase. Revenue for these six months has already surpassed the total revenue for the entire year of 2025 (approximately 7 million shekels). Gross profit climbed from 1.07 million to 3.97 million shekels, with the gross profit margin improving from 34% to 51%.
Management attributes this growth to expanding commercial operations and increased demand during the ongoing conflict. The report notes that during Operation "Lion's Roar," the company successfully adjusted its systems for a sensitive site under repeated attack, ensuring the client's operational continuity and bolstering confidence in Cando's capabilities.
Risks and Capital Structure
Despite the growth, Cando remains loss-making, with a half-year loss of approximately 3.5 million shekels (compared to 2.7 million last year) and an accumulated deficit of 27.9 million shekels. As of June 30, the company reported negative equity of 5.9 million shekels and a working capital deficit of 7.1 million shekels.
However, a material event post-balance sheet date—raising a total of 23 million shekels, including the conversion of 5 million shekels in SAFE loans into equity—has strengthened the company's capital base. Consequently, the auditor's report was issued without reservation, removing the "going concern" doubt that had appeared in previous filings, marking a significant shift in the company's risk profile.
External Factors
Cando has disclosed potential risks, including a possible six-month ban on drone flights in Israeli airspace, which could directly impact its civilian operations. Furthermore, Moody's recent reduction of Israel's economic growth forecast to 3.7% serves as a reminder of the volatile economic environment in which the company operates.
With institutional investors, including IBI-managed funds that oversee public savings and pensions, now holding stakes, the company faces a critical test: transforming rapid growth into sustainable profitability.
