Senstar's Q2 2025: Contradictions in Border Control Focus, Growth Prospects, and Market Strategy

Strong Revenue Growth Across Key Verticals and Regions:
- Senstar Technologies reported total consolidated revenue growth of 16.2% for Q2 2025.
- Growth was driven by a well-balanced mix of products and strong performance in energy and corrections verticals, particularly in EMEA, North America, and Lat Am regions.

Margins Expansion and Operational Leverage:
- The company's EBITDA margin expanded by 161 basis points to 11.8%, showing strong operational leverage.
- Gross margin rose to 66.1%, up from 63.2% in the previous year, indicating effective cost controls and favorable product mix.

EMEA Revenue Growth and Market Share Expansion:
- EMEA region revenue grew by 52% in Q2, capturing 35% of total revenue, up from 27% in the prior year.
- Growth was primarily driven by energy, airport, and data center infrastructure verticals, reflecting the company's strategic investments in the region.

Challenges and Recovery in APAC and Canada:
- Revenue in the Asia Pacific region declined by 47% due to the phaseout of a large customer contract and a challenging year-ago comparison.
- Revenue from Canada declined due to normal quarterly fluctuations, but the company remains well-positioned for new projects.