$ICTSF

ICTS INTERNATIONAL N V

CIK:0001010134|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Income Statement [Abstract]
Revenue	$ 534,376	$ 483,310	$ 431,542
Cost of revenue	474,634	413,469	351,558
GROSS PROFIT	59,742	69,841	79,984
Operating expenses:
Research and development	14,508	14,372	12,325
Selling, general and administrative	62,648	61,249	56,927
Total operating expenses	77,156	75,621	69,252
OPERATING INCOME (LOSS)	(17,414)	(5,780)	10,732
Other income, net	577	1,427	1,584
INCOME (LOSS) BEFORE INCOME TAX EXPENSES	(16,837)	(4,353)	12,316
Income tax benefits (expenses)	(1,644)	452	(1,745)
NET INCOME (LOSS)	(18,481)	(3,901)	10,571
Net income (loss) attributable to non-controlling interests	(4,133)	331	3,490
NET INCOME (LOSS) ATTRIBUTABLE TO ICTS INTERNATIONAL N.V.	(14,348)	(4,232)	7,081
BASIC AND DILUTED NET INCOME (LOSS) ATTRIBUTABLE TO ICTS INTERNATIONAL N.V. PER SHARE
Net income (loss) attributable to ICTS International N.V.	$ (14,348)	$ (4,232)	$ 7,081
Basic weighted average number of shares	36,175,799	37,433,333	37,433,333
Net income (loss) per share attributable to ICTS International N.V. - basic	$ (0.4)	$ (0.11)	$ 0.19
Diluted weighted average number of shares	36,175,799	37,433,333	39,423,506
Net income (loss) per share attributable to ICTS International N.V. - diluted	$ (0.4)	$ (0.11)	$ 0.18
COMPREHENSIVE INCOME (LOSS)
Net income (loss)	$ (18,481)	$ (3,901)	$ 10,571
Other Comprehensive Income (loss) - Translation adjustments	(283)	(147)	141
Unrealized gains (loss) on derivative instruments	105	(103)	124
Comprehensive income (loss)	(18,659)	(4,151)	10,836
Comprehensive income (loss) attributable to non-controlling interests	(4,075)	284	3,686
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO ICTS INTERNATIONAL N.V.	$ (14,584)	$ (4,435)	$ 7,150

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
CASH FLOW FROM OPERATING ACTIVITIES:
Net income (loss)	$ (18,481)	$ (3,901)	$ 10,571
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	2,101	2,371	2,679
Gain from sale of investment	0	0	(715)
Bad debt expense	1,287	808	544
Deferred income taxes	830	352	(57)
Stock-based compensation	58	858	911
Changes in assets and liabilities:
Accounts receivable	(5,755)	(961)	(15,682)
Prepaid expenses and other current assets	1,801	(705)	2,929
Deposits with customers	(1,100)	988	2,126
Other assets	(142)	(25)	0
Accounts payable	(307)	332	(2,256)
Accrued expenses and other current liabilities	(5,349)	277	8,287
VAT payable	(794)	(1,050)	2,802
Income and other taxes payable	(2,408)	(1,836)	386
Operating lease accounts, net	278	17	(93)
Other liabilities	(3,006)	(6,997)	(8,043)
Net cash provided by (used in) operating activities	(30,987)	(9,472)	4,389
CASH FLOWS FROM INVESTING ACTIVITIES:
Increase of term deposits	(30,763)	0	0
Purchase of property and equipment	(1,811)	(1,948)	(1,551)
Capitalization of software costs	(132)	(49)	(86)
Proceeds from sale of investments	0	0	785
Purchase of investments	(80)	(20)	0
Deposits (withdraws) regarding employees’ severance	(135)	(95)	229
Net cash used in investing activities	(32,921)	(2,112)	(623)
CASH FLOW FROM FINANCING ACTIVITIES:
Loans received	9,302	8,869	2,853
Loans repaid	(10,054)	(7,793)	(2,853)
Withdraws under factoring agreements	22,673	18,244	2,284
Repayments under factoring agreements	(17,902)	(16,231)	(2,201)
Withdraws under line of credit	31	0	0
Dividend paid to AU10TIX shareholders	0	(3,248)	0
Repayments of convertible notes payable to a related party	0	0	110
Net cash provided by (used in) financing activities	4,050	(159)	193
EFFECT OF CHANGES IN FOREIGN CURRENCY EXCHANGE RATES ON CASH, CASH EQUIVALENTS, RESTRICTED CASH AND BANK DEPOSITS	2,428	(1,880)	1,106
DECREASE IN CASH, CASH EQUIVALENTS, RESTRICTED CASH AND BANK DEPOSITS	(57,430)	(13,623)	5,065
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND BANK DEPOSITS BEGINNING OF YEAR	87,404	101,027	95,962
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND BANK DEPOSITS END OF YEAR	29,974	87,404	101,027
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Additional Payment For Shares Issued In Previous Years	0	0	1,214
Commitment to purchase shares from certain directors and officers	0	0	(1,518)
SUPPLEMENTAL DISCLOSURES OF CASH FLOW ACTIVITIES
Interest	$ 1,250	$ 1,088	$ 1,063

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024
CURRENT ASSETS:
Cash and cash equivalents	$ 16,890	$ 64,668
Restricted cash	1,110	2,858
Bank deposits	10,305	18,083
Term Deposits	30,763	0
Accounts receivable, net	78,403	68,335
Prepaid expenses and other current assets	6,368	7,689
Total current assets	143,839	161,633
Deferred tax assets, net	465	1,223
Investments	357	277
Deposits with customers	2,692	1,454
Restricted cash	1,669	1,795
Property and equipment, net	4,757	4,666
Operating lease right of use assets	9,698	13,138
Goodwill	713	633
Other assets	1,357	963
Total assets	165,547	185,782
CURRENT LIABILITIES:
Financial institutions payable	7,761	3,181
Accounts payable	6,975	6,716
Accrued expenses and other current liabilities	50,363	50,815
Value added tax (VAT) payable	9,507	9,138
Income tax and other taxes payable	2,618	4,464
Operating lease liabilities, current	3,273	4,876
Total current liabilities	80,497	79,190
Operating lease liabilities, non-current	6,737	8,296
Other liabilities	12,518	13,966
Total liabilities	99,752	101,452
COMMITMENTS AND CONTINGENCIES
REDEEMABLE NON-CONTROLLING INTERESTS	87,023	90,737
SHAREHOLDERS' DEFICIT:
Common stock, €0.01 and €0.45 par value as of December 31, 2025 and 2024; 150,000,000 shares authorized as of December 31, 2025 and 2024. 37,433,333 shares issued and outstanding as of December 31, 2025 and 2024.	426	426
Additional paid-in capital	40,353	38,600
Accumulated deficit	(50,020)	(35,672)
Accumulated other comprehensive loss	(8,545)	(8,367)
Treasury stock at cost (3,000,000 common stock as of December 31, 2025 and 2024)	(1,518)	(1,518)
Non-controlling interests in subsidiaries	(1,924)	124
Total shareholders' deficit	(21,228)	(6,407)
Total liabilities and shareholders' deficit	$ 165,547	$ 185,782