HUB Cyber Security Ltd. announced a multi‑year licensing agreement with a major aerospace and defense manufacturer for its FavoWeb FRACAS reliability‑intelligence platform. The contract includes a perpetual license and multi‑year support, and is expected to generate six‑figure revenues, with the potential for expansion as additional systems and fleets adopt the platform.
The deal positions HUB as a strategic layer in the engineering stack of a highly regulated, mission‑critical program. By providing real‑time failure tracking, predictive reliability analytics, and corrective‑action workflows, FavoWeb will help the manufacturer improve system availability and reduce lifecycle costs. The partnership expands HUB’s presence in the aerospace and defense sector, complementing its existing customer base in financial services, banking, and energy.
HUB’s recent financial performance underscores the significance of the win. The company reported a decline in total revenue to $39.6 million in 2024, down from $42.7 million in 2023, but its gross margin improved to 25.6% in the second half of 2024 from 15.4% in the same period of 2023. The improvement reflects a strategic pivot away from lower‑margin legacy products toward higher‑margin software offerings and a successful financial restructuring that reduced legacy obligations by more than 75%.
The aerospace and defense cybersecurity market is expanding rapidly, with a 2025 valuation of roughly $42.6 billion and a projected CAGR of 9.8% to reach $108.5 billion by 2035. FRACAS systems are essential for meeting stringent reliability and safety requirements in this sector, making HUB’s platform a valuable asset for manufacturers seeking to meet regulatory and operational demands.
CEO Noah Hershcoviz said the partnership “confirms the direction in which HUB is moving.” He added that the manufacturer’s choice of HUB to underpin reliability and mission‑critical performance “reflects both the strength of our technology and the trust in our team.” Hershcoviz also noted that the relationship is expected to expand substantially as the program grows, highlighting HUB’s confidence in the long‑term value of the deal.
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