Ondas Holdings Inc. Q2 FY2025 earnings call

• Q2 2025 was a step forward for Ondas with record revenue. OAS secured over $39 million in orders in the last twelve months and had a backlog of $22 million at the end of Q2, up from $10 million at year-end 2024.
• Ondas Networks advanced its long-term strategy with the AAR selecting its DOT-16 protocol for a next-generation head of train, end of train system, and delivered new 220 megahertz ASUS radios to Amtrak.
• Partnership with Rift Dynamics to accelerate U.S. government adoption of IronDrone and Optimus, and acquisition of Zika Engineering to enhance OAS' capabilities.
• Regulatory advancements like the FAA's rulemaking for BVLOS drone operations and IEEE ratifying the 802.16T wireless standard (pioneered by Ondas) provided tailwinds.

In Q2 2025, Ondas generated record quarterly revenue of $6.3 million, a more than six-fold increase over the same period last year and up 50% sequentially. OAS contributed $6.1 million in revenues in Q2 2025 compared to $300,000 in Q2 2024. Gross profit was $3.3 million, representing a 53% gross margin in Q2 2025, up from a gross loss of $200,000 in Q2 2024. Ondas Networks' revenues fluctuate due to the timing of customer activity in commercial rollouts and development programs, while OAS revenues are expected to normalize as the customer base grows.

• Reaffirmed full-year revenue target of at least $25 million in 2025, with OAS expected to contribute more than $20 million.
• Expect backlog to grow further in the second half of 2025 alongside strong revenue conversion.
• Anticipate bookings in 2025 to exceed the $23 million achieved in the first half, setting up a strong start to 2026.
• Aim to execute at least two strategic acquisitions in 2025.

Q: Mike Latimore with Northland Capital Markets asked about bookings, diversity of demand, and breakdown of international vs U.S., Optimus vs IronDrone.

A: Eric Brock stated that bookings come from new customer POC orders that can expand into larger infrastructure build-outs, with several programs in motion and potential for tens of millions in orders.

Q: Maxwell Michaelis with Lake Street Capital Markets asked about acquisitions and gross margin.

A: Eric Brock said there are two control acquisitions in addition to Rift and Zika Engineering, and gross margin is volatile but has potential to improve with volume and design for manufacturing.

Q: Timothy Horan with Oppenheimer asked about Ondas Networks momentum and OAS pipeline.

A: Eric Brock and Markus Nottelmann discussed Ondas Networks' momentum with growing engagement from railroads and OAS' pipeline growing with activity in Europe and the U.S., including projects like Project Vanaheim.

Q: Glenn Mattson with Ladenburg asked about infrastructure and DoD contracts.

A: Eric Brock talked about building internal capabilities, partnerships, and optimism about DoD contract potential, with plans to leverage partnerships and advisory boards for scaling operations.