Elsight Limited (ASX: ELS) is an Australian-based technology company specialising in resilient, carrier-agnostic connectivity solutions for unmanned systems and mission-critical applications. Founded in 2009 and listed on the ASX, the company’s flagship Halo platform enables continuous, secure data connectivity by intelligently bonding multiple communication links, including cellular, satellite and radio frequency channels. This capability is essential for operations where uninterrupted connectivity is critical, such as defence, public safety, emergency response and industrial inspection.
Historically, Elsight’s growth has been driven by long-cycle defence programs, where stringent performance requirements and extended validation periods are common. However, the company has increasingly focused on expanding its addressable market into commercial and public safety applications, particularly as regulatory frameworks evolve to permit routine long-range drone operations. The latest purchase order from a U.S. public safety customer represents a meaningful milestone in this strategy, reinforcing the commercial scalability of Elsight’s technology outside traditional defence markets.
Elsight announced it has received a US$460,000 purchase order from a prominent U.S.-based commercial customer operating in the public safety sector. The order marks the company’s first announced commercial transaction for calendar year 2026 and provides early confirmation of demand momentum entering the new year.
While the customer has not been named, Elsight confirmed the order relates to the deployment of its Halo connectivity platform in public safety use cases, where always-on, highly reliable communications are essential. These environments include emergency response, situational awareness and “Drone as First Responder” programs, where drones are deployed rapidly to provide real-time intelligence ahead of human responders.
Management described the order as a key validation point, demonstrating the commercial value of Elsight’s technology outside defence markets and highlighting the platform’s readiness for broader adoption as regulatory conditions improve.
The purchase order comes against the backdrop of accelerating regulatory momentum in the United States aimed at enabling routine Beyond Visual Line of Sight operations for commercial and public safety drones. In June 2025, the White House issued an Executive Order directing the Federal Aviation Administration to accelerate rulemaking in this area, reflecting the strategic importance of unmanned systems for economic and public safety outcomes.
Following this directive, the FAA released a Notice of Proposed Rulemaking in August 2025 titled “Normalizing Unmanned Aircraft Systems Beyond Visual Line of Sight Operations”, commonly referred to by industry participants as “Part 108”. The public consultation period closed in October 2025, and while the final rule has not yet been adopted, industry participants widely expect publication by spring 2026.
Although a transition period of six to twelve months is typically expected after final rule publication, Elsight believes the increasing clarity around regulatory direction is already driving early commercial engagement. Public safety agencies, in particular, are preparing for scaled BVLOS operations ahead of full implementation, seeking to establish technology platforms that can meet future operational requirements.
Public safety has emerged as one of the most compelling early commercial markets for BVLOS-enabled drone operations. Applications such as emergency response, disaster assessment, search and rescue, and infrastructure monitoring require reliable long-range connectivity to function effectively.
These use cases place extreme demands on communications systems, including continuous availability, low latency and robust cybersecurity. Elsight’s Halo platform has been purpose-built to meet these requirements, aggregating multiple communication links to ensure resilience even in challenging environments.
The latest purchase order underscores the relevance of Elsight’s technology in this segment and suggests that public safety agencies are increasingly moving from pilot programs toward scaled deployments as regulatory barriers ease.
Elsight’s Halo platform differentiates itself through its multi-link bonding architecture, which dynamically combines cellular, satellite and RF communications to deliver near-continuous connectivity. The platform is designed to operate across stationary, portable and actively mobile environments, with form factors suitable for drones, ground vehicles and fixed installations.
Unlike single-link communication solutions, Halo provides built-in redundancy, reducing the risk of signal loss in mission-critical operations. This capability has been a key factor in Elsight’s adoption across defence programs and is increasingly resonating with commercial customers facing similar reliability requirements.
The platform’s modular design allows customers to scale connectivity based on mission complexity, further supporting adoption across diverse operational scenarios.
The purchase order adds to a growing body of evidence that Elsight’s commercial pipeline is broadening beyond defence-led programs. Management has previously highlighted that defence, public safety and commercial markets are converging in their requirements as unmanned systems become more central to operational workflows.
By securing early commercial wins in public safety, Elsight is positioning itself to benefit from a wider adoption curve as BVLOS regulations are normalised. This diversification also reduces reliance on long defence procurement cycles, potentially smoothing revenue patterns over time.
Looking ahead, Elsight enters 2026 with positive momentum supported by regulatory progress, early commercial validation and continued defence activity. While the final shape and timing of the FAA’s Part 108 rule remain subject to formal processes, the direction of travel appears clear.
Management expects commercial engagement to continue building through 2026 as customers prepare for routine BVLOS operations, particularly in public safety and critical infrastructure sectors. Execution against this opportunity, alongside disciplined cost management and continued investment in product capability, will be key to sustaining growth.
Elsight’s first commercial purchase order of 2026 represents an important step in the company’s evolution from defence-focused supplier to a broader provider of resilient connectivity solutions across public safety and commercial markets. Supported by accelerating U.S. regulatory momentum and growing demand for BVLOS-enabled applications, the transaction highlights the expanding relevance of Elsight’s technology. As regulatory clarity improves and adoption scales, Elsight is increasingly positioned to capture value across a wider range of mission-critical unmanned system deployments.
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