Executive Summary / Key Takeaways

• Siyata Mobile Inc. (NASDAQ:SYTAW) is undergoing a significant corporate restructuring, with CORE Gaming, Inc. merging into a Siyata subsidiary, establishing a new leadership team and separating the "PTT Retained Business" into dedicated subsidiaries. This strategic move aims to streamline operations and focus the core Siyata entity on its mission-critical Push-to-Talk (PTT) over cellular solutions.
• The company achieved its strongest revenue quarter ever in Q3 2024, reporting $5.9 million, a 218% increase year-over-year, driven by robust demand for its SD7 handset and accessories, particularly in the U.S. market.
• Siyata is poised for future growth with a planned launch of an "exciting 5G product portfolio" in 2025, with T-Mobile as the initial carrier partner, aiming to solidify its position as a global PTT handset provider.
• Despite past working capital challenges and negative Adjusted EBITDA, management targets aggressive revenue growth and profitability in the coming quarters, supported by a strong order backlog exceeding $7 million and expanding carrier "stocked status" for its SD7 device.
• Siyata's competitive edge lies in its specialized, cost-effective SD7 handset, which is the "only direct radio replacement device offered by U.S. wireless carriers," and its innovative Real Time View and SD7 Plus solutions, positioning it uniquely against larger rivals like Motorola Solutions , Sonim Technologies , and Zebra Technologies .

A New Chapter for Mission-Critical Communications

Siyata Mobile Inc. operates at the forefront of mission-critical communication, providing rugged mobile devices, in-vehicle communication solutions, and cellular boosters. The company's core business is strategically positioned to capitalize on the ongoing industry shift from traditional Land Mobile Radio (LMR) systems to more advanced Push-to-Talk (PTT) over cellular solutions. This transition is driven by the need for broader network coverage, enhanced functionalities, and improved cost-effectiveness, particularly for first responders, public safety agencies, and various enterprise sectors.

Siyata's foundational strength lies in its differentiated technology, which includes the SD7 handset, the SD7 Plus with integrated body camera capabilities, and the Siyata Real Time View in-vehicle video monitoring system. These offerings are designed to meet the rigorous demands of industries such as public safety, education, healthcare, security, utilities, and hospitality. The company's overarching strategy emphasizes aggressive growth, achieving profitability, expanding its network of carrier partnerships, and continuous new product development to maintain its competitive edge.

The competitive landscape for Siyata Mobile includes established players like Motorola Solutions , Sonim Technologies , and Zebra Technologies . While these larger competitors offer broader portfolios and benefit from significant scale, Siyata carves out a niche with its specialized cellular-based PTT devices. Notably, the SD7 handset stands out as the "only direct radio replacement device offered by U.S. wireless carriers," providing a distinct advantage in a market transitioning away from traditional two-way radios. This unique positioning, coupled with a cost-effective model, allows Siyata to offer compelling solutions, as evidenced by subsidized pricing that makes its products significantly more attractive than some higher-priced smartphone alternatives.

Evolution and Strategic Realignment

Siyata Mobile's journey has been marked by strategic product introductions and market expansions. After reporting total revenues of $7.55 million in 2021 and $6.48 million in 2022, the company experienced net losses, reflecting its investment phase. A pivotal year was 2023, which saw the introduction of "Siyata Real Time View," an advanced video monitoring system for fleet vehicles, securing an initial international order of $1.2 million. The third quarter of 2023 was crucial as the SD7 handset achieved certification and approval with major North American carriers, including FirstNet and AT&T , Verizon , T-Mobile , and U.S. Cellular , alongside international partners. This period also marked the transition of the SD7 handset to a "stocked status" with a major U.S. carrier, a significant achievement expected to drive stronger sales despite causing a temporary dip in Q3 2023 rugged device sales as customers awaited subsidized pricing. By the end of 2023, total revenue had grown to $8.2 million, with rugged device sales reaching $6 million.

In 2024, the company faced short-term working capital constraints in Q2, leading to a revenue decrease to $1.9 million, but these issues were addressed through subsequent capital raises. The SD7 handset's integration with the Zello push-to-talk application further expanded its utility, and the sales team was strengthened with key hires. The third quarter of 2024 proved to be a record-breaking period, with revenue soaring to $5.9 million, a 218% increase over Q3 2023, largely driven by high demand for the SD7 handset and accessories, with the U.S. market contributing 81% of this revenue.

A significant corporate restructuring was detailed in the 10-Q/10-K document filed on August 29, 2025. This involves CORE Gaming, Inc. merging into Siyata Core Acquisition U.S., Inc., with CORE Gaming, Inc. continuing as a wholly-owned subsidiary of Siyata Mobile Inc.. This transaction also delineates the transfer of assets related to the "PTT Retained Business," including shares of Vizla Copper Corp. and Canadian Towers Fiber Optics Inc., to separate "PTT Subsidiaries". Marc Seelenfreund will oversee these PTT Subsidiaries, while Aitan Zacharin will assume the role of Chief Executive Officer for the Surviving Corporation and Siyata Mobile Inc., with Gerald Bernstein as Chief Financial Officer. This strategic realignment aims to create a more focused core business for Siyata Mobile, while the PTT Retained Business operates independently with its own funding mechanisms.

Technological Edge and Product Innovation

Siyata Mobile's investment thesis is deeply rooted in its technological differentiation and continuous innovation. The company's core offering, the SD7 handset, is engineered to mimic the form and function of a traditional two-way radio but operates seamlessly on nationwide cellular networks. This provides a significantly broader range and is more cost-effective than legacy LMR systems. The SD7's unique position as the "only direct radio replacement device offered by U.S. wireless carriers" provides a substantial competitive advantage, allowing it to penetrate markets where traditional radios are being phased out. This translates into tangible benefits for customers, offering a familiar user experience with enhanced connectivity and lower operational costs.

Beyond the SD7, Siyata is expanding its portfolio with innovative solutions. The SD7 Plus, currently undergoing customer trials, integrates a wide-angle camera and 4G connectivity to provide traditional body camera functionality alongside real-time situational awareness and tracking capabilities, powered by Visual Labs' software. This device is expected to contribute to revenue in 2024 and beyond, addressing a critical need for integrated communication and surveillance in public safety and enterprise applications. Furthermore, the Siyata Real Time View system offers advanced video monitoring for fleet management, enabling remote vehicle monitoring and 360-degree views controllable via Android or iOS devices. This system has demonstrated "outstanding results in real-time field cases" with international EMS customers, providing fleet managers with a "very high level of control" over their vehicles and drivers. Both the SD7 Plus and Real Time View are designed to generate recurring revenue through partnerships with third-party software providers, establishing a more stable revenue stream for Siyata.

Looking ahead, Siyata is preparing for a "very exciting 5G product portfolio planned to launch in 2025," with T-Mobile (TMUS) as the first wireless carrier to introduce these new devices. This strategic move aims to position Siyata as a "leading PTT handset provider on a global level," leveraging the enhanced speed and reliability of 5G networks to deliver next-generation mission-critical communication solutions. These technological advancements contribute significantly to Siyata's competitive moat, enabling higher average selling prices, lower manufacturing costs through scale, and ultimately better margins, while solidifying its market positioning and long-term growth strategy.

Financial Performance and Operational Momentum

Siyata Mobile's recent financial performance reflects a company in a growth phase, albeit with inherent challenges. For the nine months ended September 30, 2024, total revenue reached $10.1 million, a $3.8 million increase over the same period in 2023. Gross margin dollars for this period were $2.8 million, a $1 million positive variance, though the gross margin percentage slightly decreased to 27.3%. The third quarter of 2024 marked a significant milestone, with record revenue of $5.9 million, representing a 218% increase year-over-year from $1.8 million in Q3 2023, and a 210% increase from $1.9 million in Q2 2024. This surge was primarily driven by strong demand for the SD7 handset and accessories, supported by adequate inventory. The U.S. market was a key contributor, accounting for $4.8 million, or 81% of total revenue in Q3 2024. Gross margin percentage improved to 29% in Q3 2024 from 26.6% in Q3 2023.

However, this growth was accompanied by increased operating expenses. SG&A expenses rose by $2 million to $4.7 million in Q3 2024, primarily due to marketing expenses related to investor awareness. Consequently, Adjusted EBITDA for Q3 2024 was negative $3.3 million, a $1.8 million negative variance compared to negative $1.6 million in Q3 2023. In Q2 2024, revenue was $1.9 million, an $800,000 decrease year-over-year, primarily due to working capital constraints, which also led to a lower gross margin of 10.4% due to a "one-time heavily discounted transaction with an international reseller".

Looking at the full year 2023, total revenue increased by 27% to $8.2 million from $6.5 million in 2022. Rugged device sales were a significant driver, growing by approximately $2.1 million to $6 million. The gross margin percentage for FY 2023 saw a substantial improvement, rising by 10.8 percentage points to 32.3%. Adjusted EBITDA for Q4 2023 was negative $2.3 million, a $2.7 million positive variance from Q4 2022.

Liquidity and capital resources have been dynamic. Working capital as of September 30, 2024, was $200,000, a decrease from $1.3 million at the end of 2023. Excluding non-cash liabilities, working capital would have been $1.3 million. The company addressed Q2 2024 working capital constraints through recent capital raises. Management anticipates needing to raise an additional "$2 million to $3 million to be able to support that growth" as sales ramp up, with the ultimate goal of raising "enough capital to get us to breakeven profitability". The recent merger agreement also stipulates that the PTT Subsidiaries must hold at least $4.00 million in cash and equivalents at closing, with mechanisms in place to ensure this minimum is met. Post-merger, the PTT Retained Business will be self-funded from its own cash and operations, with no obligation for the Purchaser or Surviving Corporation to provide additional funds (except for specific payments outlined in the merger agreement).

Operationally, Siyata has made significant strides. The SD7 handset has achieved "stock position" with major North American carriers including AT&T (T), Verizon (VZ), UScellular (USM), and Bell Mobility (BCE), a status that enables carriers to market and subsidize the device, thereby driving sales. The company boasts a strong order backlog of over $7 million, providing solid visibility into future quarters. Siyata's sales funnel includes "over 50,000 units of SD7 handset potential sales" across various sectors, indicating substantial market opportunity. The integration of the SD7 with the Zello push-to-talk application has also led to "meaningful sales" and new opportunities.

Strategic Outlook and Competitive Dynamics

Siyata Mobile's outlook is characterized by aggressive growth targets and a clear path towards profitability. Management aims for "strong year-over-year revenue growth" and a goal of "profitability in the coming quarters". For 2024, the company expects "high double-digit growth" in revenue. This optimism is fueled by the "tangible rapid adoption" of its PTT product portfolio and the anticipated launch of the 5G product line in 2025. Management expects to gain "more visibility" to provide specific revenue guidance by the end of Q1 2025, as the impact of the "stock product situation" with major carriers becomes clearer.

In the competitive arena, Siyata leverages its specialized offerings to differentiate itself. While larger players like Motorola Solutions (MSI) offer comprehensive ecosystems and strong brand recognition, Siyata's SD7 is uniquely positioned as the "only direct radio replacement device offered by U.S. wireless carriers". This allows Siyata to target specific verticals, such as schools, which Marc Seelenfreund identifies as a "greenfield market" with substantial upside potential given the large number of teachers and school buses. Compared to Sonim Technologies (SONM), known for its ultra-rugged devices, Siyata's integrated in-vehicle solutions and broader connectivity options provide a distinct advantage. Against Zebra Technologies (ZBRA), which excels in data management and IoT integration, Siyata offers simpler, more accessible solutions for core communication needs, potentially appealing to customers seeking lower upfront investment.

Despite these advantages, Siyata faces challenges inherent to its smaller scale. Its financial performance, including profitability and cash flow, has historically lagged behind larger competitors. The company's smaller operational scale could result in higher costs per unit and lower margins, impacting its ability to compete on price or availability against more established players. Furthermore, the need for additional capital raises to support growth presents a liquidity risk. The recent corporate restructuring, while strategic, introduces complexities related to the separation and funding of the PTT Retained Business.

However, broad industry trends, such as the continued growth of FirstNet connections (5.5 million connections to 27,500 public safety agencies as of December 31, 2023), underscore the accelerating shift towards PTT over cellular solutions, creating a favorable market environment for Siyata's offerings. The company's strategy of expanding international distribution and developing recurring revenue channels through software partnerships further strengthens its long-term growth prospects.

Conclusion

Siyata Mobile Inc. stands at a pivotal juncture, marked by significant corporate restructuring and a clear strategic vision for growth in the mission-critical Push-to-Talk over cellular market. The company's record-breaking Q3 2024 revenue, driven by strong demand for its SD7 handset, signals a tangible acceleration in market adoption of its specialized devices. With a unique technological advantage as the "only direct radio replacement device" for U.S. carriers and an ambitious 5G product roadmap, Siyata is well-positioned to capitalize on the ongoing displacement of traditional LMR systems.

While the company must diligently manage its working capital and execute its plan to achieve profitability in the coming quarters, the strategic separation of the PTT Retained Business and the focus on core PTT solutions, coupled with expanding carrier partnerships and innovative product development, lay a robust foundation for future success. Investors should closely monitor Siyata's ability to convert its substantial sales funnel into sustained revenue growth, manage operational expenses effectively, and leverage its technological leadership to expand market share against formidable competitors, as these factors will be critical to realizing its long-term investment potential.