HUB Cyber Security Ltd.
- Open
- 1.44
- Day high
- 1.50
- Day low
- 1.33
- Prev close
- 1.42
- Volume
- 486K
- Mkt cap
- $2M
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- -0.0
- P/S
- 0.0
- Yield
- —
- Per share
- —
- ▲Insiders net buying $3K over the last 3 months (4 open-market buys, 4 sales)
- 🏛Institutions accumulating (13F)
HUB Cyber Security Ltd. (HUBC) is a Technology company listed on NASDAQ. The stock is down 100% over the past year. Over the trailing 3 months, insiders filed 4 open-market buys and 4 sales (SEC Form 4).
HUB Cyber Security Ltd. (HUBC) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
HUBC insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 9, 2026 | HRT FINANCIAL LP10 percent owner | Sell | 143,772 | $2.04 |
| Jun 8, 2026 | HRT FINANCIAL LP10 percent owner | Buy | 341,196 | $0.21 |
| Jun 5, 2026 | HRT FINANCIAL LP10 percent owner | Buy | 904,252 | $0.66 |
| Jun 5, 2026 | HRT FINANCIAL LP10 percent owner | Sell | 674,601 | $0.25 |
| Jun 1, 2026 | HRT FINANCIAL LP10 percent owner | Buy | 599,115 | $0.12 |
| Jun 1, 2026 | HRT FINANCIAL LP10 percent owner | Sell | 237,085 | $0.45 |
| May 18, 2026 | HRT FINANCIAL LP10 percent owner | Buy | 415,708 | $0.01 |
| May 18, 2026 | HRT FINANCIAL LP10 percent owner | Sell | 779,504 | $0.22 |
Source: HUBC SEC Form 4 filings, latest Jun 9, 2026. For informational purposes only — not investment advice.
See the full HUBC insider & 13F page →HUB Cyber Security Ltd. company profile
Overview
HUB Cyber Security Ltd. (NASDAQ:HUBC) is an Israeli cybersecurity company founded in 2017 and headquartered in Tel Aviv. The company went public in January 2022 and has undergone significant strategic transformation since its IPO, transitioning from a hardware and services-focused business model to a software-centric approach. HUB specializes in providing cybersecurity solutions for highly regulated industries, with a particular focus on financial institutions and critical infrastructure providers. The company operates primarily in Israel and the European Union, with recent expansion efforts into the North American market through a new office in New York City.
Business
HUB Cyber Security operates in the cybersecurity software infrastructure sector, providing specialized solutions for organizations that handle sensitive data and face strict regulatory compliance requirements. The cybersecurity industry has grown rapidly as organizations face increasing threats from cyberattacks, data breaches, and evolving regulatory frameworks that require sophisticated data protection and monitoring capabilities. The company operates two primary business segments that generate distinct revenue streams. The Secure Data Fabric Platform represents HUB's flagship software-as-a-service offering, accounting for the company's highest-margin business with gross margins of 80-90%. This platform provides military-grade encryption, real-time data consolidation, and AI-powered analytics to help organizations manage and secure their data workflows. The platform is designed to overlay existing infrastructure without requiring complete system replacement, enabling faster implementation compared to traditional enterprise solutions. The Professional Services and Cyber Consultancy segment provides complementary services including cyber risk assessment, incident response, and ongoing security monitoring. This business generates more stable revenue streams with margins of 15-20%, though management expects these margins to improve to 30-40% as the company optimizes its service delivery model. Over 60% of the company's total revenue comes from long-term recurring contracts, providing some revenue predictability. HUB also offers specialized tools including D.Storm (a DDoS simulation platform), RAM Commander (reliability prediction software), and Safety Commander (safety assessment tools for integrated systems). However, these represent smaller portions of the overall business as the company focuses its resources on the core Secure Data Fabric platform and professional services offerings.
Revenue model
HUB Cyber Security generates revenue through two primary business models that serve different customer needs and market segments. The company's highest-margin revenue comes from its Software-as-a-Service (SaaS) subscription model for the Secure Data Fabric Platform, where customers pay recurring fees for access to the cloud-based cybersecurity and data management platform. This model typically involves multi-year contracts and generates gross margins of 80-90%, making it the company's most profitable revenue stream. The second revenue model involves professional services and consulting fees, where HUB provides cybersecurity assessment, implementation support, incident response, and ongoing monitoring services. These services are typically billed on a project basis or through retainer agreements, generating margins of 15-20% that management expects to improve to 30-40% through operational efficiency gains. The company's primary paying customers are highly regulated organizations, particularly financial institutions such as banks and asset management companies, where data security and regulatory compliance are critical business requirements. HUB has secured notable engagements including a €20 million contract with Bank of San Marino, demonstrating the substantial value these institutions place on comprehensive cybersecurity solutions. Several factors influence HUB's profit margins and revenue potential. Positive margin drivers include the growing demand for AI-powered data analytics, increasing regulatory pressure on financial institutions, and the high switching costs associated with cybersecurity infrastructure. The company's ability to implement solutions quickly (within months rather than years) provides competitive pricing power. Negative margin pressures include intense competition from larger cybersecurity vendors, the need for continuous R&D investment to stay ahead of evolving threats, and customer concentration risk in the financial services sector. Economic downturns could also pressure IT spending budgets among target customers.
Competitive moat
HUB Cyber Security's competitive moat appears relatively narrow, characteristic of many smaller cybersecurity companies competing against well-established industry giants. The company's primary competitive advantages center around its specialized focus on highly regulated industries and its ability to provide faster implementation timelines compared to traditional enterprise solutions. HUB's military-grade encryption technology and AI-powered analytics platform offer some technical differentiation, particularly for organizations requiring the highest levels of data security. The company's customer switching costs provide some defensive characteristics, as cybersecurity infrastructure changes involve significant risk and complexity for regulated institutions. Once implemented, customers are likely to maintain long-term relationships due to the critical nature of security systems and the extensive integration required. HUB's focus on overlay solutions that work with existing infrastructure rather than requiring complete system replacement also reduces implementation friction. However, the moat faces significant challenges from larger, well-funded competitors such as Palantir, major cloud providers, and established cybersecurity vendors who possess greater resources for R&D, sales, and marketing. These competitors can potentially replicate HUB's technical capabilities while offering broader product suites and established customer relationships. The cybersecurity industry's rapid technological evolution also means that technical advantages can be quickly eroded. The company's geographic concentration in Israel and the EU limits its market reach compared to competitors with global presence. While HUB is expanding into North America, it lacks the scale and brand recognition of established players. The narrow customer base in financial services, while providing specialization benefits, also creates concentration risk and limits growth opportunities compared to vendors serving multiple industries.
Risks & safety
HUB Cyber Security presents significant financial risk with a very low margin of safety based on current financial metrics. Liquidity and Solvency Concerns: - Cash position of only $3.1 million against current liabilities of $106.1 million creates severe liquidity pressure - Current ratio of 0.17 indicates inability to meet short-term obligations with current assets - Negative free cash flow of $17.2 million in 2024 with ongoing cash burn - Total liabilities of $108.2 million exceed total assets of $27.4 million by $80.8 million Valuation Metrics: - Negative book value of $80.8 million results in meaningless price-to-book ratio - Company trading at negative enterprise value due to debt exceeding market capitalization - Revenue declining from $50.0 million in 2022 to $29.6 million in 2024 Other Risk Factors: - Heavy dependence on potential equity raises or debt restructuring for survival - Customer concentration risk with major revenue dependence on few large contracts - Intense competition from well-capitalized cybersecurity incumbents - Execution risk in transitioning business model from services to software
Recent development
HUB Cyber Security has undergone a comprehensive strategic transformation over the past two years, fundamentally reshaping its business model and operational focus. The company has transitioned from a hardware and services-centric model to a software-first approach, exiting underperforming business segments and concentrating resources on its high-margin Secure Data Fabric Platform. This strategic pivot involved significant restructuring, including a 60% reduction in operating expenses and substantial workforce optimization. A key development has been the company's geographic expansion strategy, marked by the opening of a new office in New York City to support North American market entry. Management has identified the transportation sector as an initial focus area for U.S. expansion, while maintaining strong positions in Israel and the European Union. The company has also invested heavily in talent acquisition, recruiting what management describes as "top-tier leadership talent" to support the transformation and growth initiatives. Product development efforts have centered on enhancing the AI-powered analytics capabilities of the Secure Data Fabric Platform, with particular emphasis on serving financial institutions' compliance and data management needs. The platform's ability to provide military-grade encryption while enabling rapid implementation has become a key differentiator in competitive situations. HUB has also focused on improving the margins of its professional services business through operational efficiency gains and service delivery optimization. The company has made significant progress in financial restructuring, reducing legacy liabilities by over $17 million and improving gross margins from negative territory in 2023 to 17.1% in 2024. Management has also emphasized strengthening internal controls and governance practices to rebuild credibility with institutional investors. The strategic focus on recurring revenue contracts has resulted in over 60% of revenue now coming from long-term agreements, providing greater revenue predictability despite overall revenue decline during the transition period.
HUBC company profile · for informational purposes only — not investment advice.
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