HUB Cyber Security Ltd. (NASDAQ: HUBC) (“HUB” or the “Company”), a
global leader in confidential computing and advanced data fabric
technology, today announced results for the full year and second
half period ended December 31, 2024 and the filing of its Annual
Report on Form 20-F for the Year Ended December 31, 2024.
Financial results for H2
2024:
- Revenues were $13.8 million,
compared to $17.6 million in H2 2023. The year-over-year change
reflects the Company’s deliberate strategic pivot to optimize its
business mix. HUB has proactively exited lower-margin segments,
including certain areas within its IT Services and Cyber
Consultancy divisions, in order to concentrate on its core,
higher-value offerings. This realignment underscores HUB’s
commitment to enhancing profitability and building a more resilient
foundation for sustainable long-term growth.
- Gross margin improved significantly
to 25.6% in H2 2024, up from 15.4% in H2 2023. This improvement
highlights the positive impact of HUB’s strategic realignment
toward higher-margin business segments. Despite a leaner revenue
base, the Company’s sharpened focus has enhanced overall
profitability and established a stronger foundation for sustained
financial performance going forward.
- Operating expenses for H2 2024
totaled $14.7 million, a significant 29% reduction compared to
$20.9 million in H2 2023. This sharp reduction underscores
management’s disciplined approach to cost control and operational
efficiency as HUB continues its transition toward a more focused,
higher-margin business model.
- Operating loss in H2 2024 was $11.1
million, a significant improvement of 38% compared to the prior
year. This meaningful progress reflects the benefits of streamlined
operations and a more efficient organizational structure,
reinforcing the positive impact of the Company’s strategic
realignment.
Management
Commentary
Noah Hershcoviz, CEO of HUB, had the following
commentary on the Company’s financial results:
We said we’d rebuild HUB on stronger ground -
and this report shows we’re doing exactly that. In 2024, we
executed a focused strategic transformation, shifting away from
non-core, lower-margin services to concentrate on our core
strength: delivering secure, enterprise-grade data infrastructure
for regulated industries. By doubling down on our Secured Data
Fabric platform and modern data governance capabilities, we’ve
reinforced our financial foundation, improved operational
efficiency, and positioned HUB as a trusted partner for
institutions navigating complex compliance and data management
environments. These results confirm that our strategy is taking
hold -and we remain committed to scaling profitably, expanding our
client base, and creating lasting value for our shareholders
Our strategic expansion into the highly regulated banking sector
is beginning to bear fruit. In March, we were selected by Cassa di
Risparmio della Repubblica di San Marino S.p.A. to execute a
comprehensive €20 million digital banking and infrastructure
modernization initiative. In today’s financial landscape, banks
face a growing compliance burden with increasing demands for data
protection, traceability, and transparency. Traditional data
security solutions often fall short of these regulatory standards,
and we see HUB leading the charge in delivering innovative,
dependable solutions that help banks stay ahead of compliance
challenges.
Momentum is also building across our base of
other European clients driven by regulatory pressure, IT
complexity, and rising compliance costs. A leading bank managing
over €900 billion in assets deployed HUB’s Secured Data Fabric to
unify fragmented KYC and AML systems, consolidating sanctions
screening and real-time monitoring across multiple business units.
The solution is now fully operational, with invoicing already
underway in 2025. This engagement exemplifies HUB’s growing role as
a trusted partner for secure, scalable data modernization across
global financial institutions.In recent months, we have enhanced
our financial flexibility by resolving approximately $17 million in
legacy liabilities and secured new financing on favorable terms. In
addition, we successfully executed a reverse stock split and
believe we are now in full compliance with Nasdaq listing
requirements, reinforcing our commitment to maintaining strong
governance and positioning HUB for future growth.
We’ve learned from the Company’s experience, and
we’re clear-eyed about what it takes to rebuild shareholder equity
and long-term trust. We’ve put the past behind us, and through it
all, we’ve continued to make the business world a safer, smarter
place. Global institutions continue to rely on us, and we take that
responsibility seriously. By aligning every part of the business
around our Secured Data Fabric platform, we’ve created a focused,
high-performance engine for scalable growth. This is no longer just
a turnaround story, rather a reaffirmation of our ability to
execute, deliver, and create lasting value for our clients,
shareholders, and partners.
Secured Data Fabric: Innovation and
Market Penetration
The Secured Data Fabric platform is the
Company's primary growth engine. This cutting-edge technology
consolidates data from multiple silos into a unified, secure system
that enables clients to navigate vast data pools, ensure
compliance, and protect sensitive information with advanced
encryption.
HUB’s solution stands apart from traditional
data lake systems by securely retrieving data in real time. It
offers a transformative approach that reduces costs and mitigates
security vulnerabilities. This unique value proposition has driven
strong demand, reflected in a significant increase in our backlog
and a surge in RFPs from existing and new clients.
Leading financial institutions have already
embraced HUBs platform, and the Company is seeing growing interest
across various sectors, including healthcare, payment companies,
transportation, travel tech, and other regulated industries. This
broadening demand highlights the versatility of our solution in
addressing critical challenges in data security and operational
efficiency across diverse verticals.
With an expanding pipeline of opportunities and
a proven ability to deliver tailored solutions at scale, HUB
believes it is well-positioned for continued growth and to further
establish itself as a trusted partner across industries.
Premier Professional Services:
Stability, Trust, and Cross-Sell Opportunity
Our Premier Professional Services and Cyber
Consultancy group remains a cornerstone of HUB’s operations. This
is a trusted advisor business -staffed by over 270 skilled
professionals -that delivers ICT, software, and cyber defense
solutions to some of the world’s most sensitive environments. What
makes this business powerful is its trust capital. Many of our
client relationships go back decades-some as far as the early
1990s. These relationships are not just recurring-they are
strategic. They give us privileged access, long-term visibility,
and a platform to introduce our Secured Data Fabric into large,
complex organizations. We believe this business not only underpins
our cash flow but gives HUB a major competitive advantage in
winning new software deployments within high-barrier sectors.
Building for the Future: Talent and
Leadership
HUB has strengthened its leadership team with
key appointments as part of our broader transformation efforts. In
recent months, the Company has announced the appointment of John
Rogers as President of the Americas Region, Renah Persofsky as
Chairperson of the Board of Directors, and Shlomo Bibas as the
newest member of our Board. These leaders bring the experience and
execution focus required to support our expansion into new markets.
Looking ahead, we intend to further scale our leadership bench by
adding world-class talent to support our North American growth
strategy in the coming months.
Filing of Annual Report on Form 20-F for
the Year Ended December 31, 2024
A copy of the Company’s annual report on Form
20-F for the year ended December 31, 2024 has been filed with the
U.S. Securities and Exchange Commission at https://www.sec.gov/ and
posted on the Company’s investor relations website at
https://investors.hubsecurity.com/. The Company will deliver a hard
copy of its annual report, including its complete audited
consolidated financial statements, free of charge, to its
shareholders upon request at info@hubsecurity.com.
Conference Call
Details
Date and Time: Friday, May 2,
2025, at 10:00 am ET
Live Webcast Information: Interested parties
can access the conference call via a live webcast, which is
available in the Investor Relations section of the Company's
website at IR Website or https://app.webinar.net/zgyVQ43Yo5L.
Replay: A webcast replay will be available in
the Investor Relations section of the Company's website at IR
Website or https://app.webinar.net/zgyVQ43Yo5L.
About HUB Cyber
Security Ltd.
HUB Cyber Security Ltd (“HUB” or the “Company”) was established
in 2017 by veterans of the elite intelligence units of the Israeli
Defense Forces. The Company specializes in unique cyber security
solutions protecting sensitive commercial and government
information. The Company debuted an advanced encrypted computing
solution to prevent hostile intrusions at the hardware level while
introducing a novel set of data theft prevention solutions. HUB
operates in over 30 countries and provides innovative cybersecurity
computing appliances and a wide range of cybersecurity services
worldwide. Hub's Secured Data Fabric is a revolutionary product
developed in partnership with its subsidiary, BlackSwan
Technologies, that is emerging as a leader in highly secure data
management and unification.
Forward-Looking Statements
This press release contains forward-looking statements for
purposes of the safe harbor provisions under the United States
Private Securities Litigation Reform Act of 1995. Forward-looking
statements are typically identified by words such as “plan,”
“believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,”
“future,” “forecast,” “project,” “continue,” “could,” “may,”
“might,” “possible,” “potential,” “predict,” “seem,” “should,”
“will,” “would” and other similar words and expressions, but the
absence of these words does not mean that a statement is not
forward-looking.
The forward-looking statements are based on the current
expectations of the management of HUB, as applicable, and are
inherently subject to uncertainties and changes in circumstances
and their potential effects and speak only as of the date of such
statement. There can be no assurance that future developments will
be those that have been anticipated. These forward-looking
statements involve a number of risks, uncertainties, or other
assumptions that may cause actual results or performance to be
materially different from those expressed or implied by these
forward-looking statements. These risks and uncertainties include,
but are not limited to, those discussed and identified in public
filings made with the SEC by HUB and the following: (i) significant
uncertainty regarding the adequacy of HUB’s liquidity and capital
resources and its ability to repay its obligations as they become
due; (ii) the war between Israel and Hamas commenced in October
2023, which may harm Israel’s economy and HUB’s business; (iii)
expectations regarding HUB’s strategies and future financial
performance, including its future business plans or objectives,
prospective performance and opportunities and competitors,
revenues, products and services, pricing, operating expenses,
market trends, liquidity, cash flows and uses of cash, capital
expenditures, and HUB’s ability to invest in growth initiatives and
pursue acquisition opportunities; (iv) the outcome of any legal or
regulatory proceedings against HUB in connection with our
previously announced internal investigation or otherwise; (v) the
ability to cure and meet stock exchange continued listing standards
and remain listed on the Nasdaq; (vi) competition, the ability of
HUB to grow and manage growth profitably, maintain relationships
with customers and suppliers and retain its management and key
employees; (vii) limited liquidity and trading of HUB’s securities;
(viii) geopolitical risk, including military action and related
sanctions, and changes in applicable laws or regulations; (ix) the
possibility that HUB may be adversely affected by other economic,
business, and/or competitive factors; (i) other risks and
uncertainties set forth in the sections entitled “Risk Factors” and
“Cautionary Statement Regarding Forward-Looking Statements” in
HUB’s Annual Report on Form 20-F filed on May 1, 2025.
Should one or more of these risks or uncertainties materialize
or should any of the assumptions made by the management of HUB
prove incorrect, actual results may vary in material respects from
those expressed or implied in these forward-looking statements.
All subsequent written and oral forward-looking statements
concerning the business combination or other matters addressed in
this press release and attributable to HUB or any person acting on
its behalf are expressly qualified in their entirety by the
cautionary statements contained or referred to in the press
release. Except to the extent required by applicable law or
regulation, HUB undertakes no obligation to update these
forward-looking statements to reflect events or circumstances after
the date of this press release to reflect the occurrence of
unanticipated events.
Investor Relations
Lytham PartnersBen
Shamsian646-829-9701shamsian@lythampartners.com
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