Ondas Holdings Inc. Q3 FY2025 earnings call

• Eric Brock welcomed attendees and introduced key leadership team members. The company reviewed 2025 highlights, with Neil Laird providing a financial update showing Q3 2025 revenues of $10.1 million, a over 580% increase year-over-year.
• OAS is scaling rapidly, with record-high revenues in Q3, a growing backlog, and progress on strategic acquisitions including SentriX, Vampiro Motion, and others. They are expanding talent, partnerships, and technological capabilities.
• Ondas Networks is making progress with the AAR's selection of DOT 16 for railroads, with field trials and revenue shipments expected.
• Ondas Capital was launched in Q3 to scale combat-proven unmanned and dual-use technologies from Ukraine to the US and allied European nations.

In the third quarter of 2025, Ondas Holdings Inc. saw significant performance in its segments. OAS generated revenues of $10 million, a more than six-fold increase from the same period in 2024. This was driven by ongoing deliveries of Iron Drone and Optimus Systems, and contributions from Apero ground robots related services under contracts from military and public safety customers. Ondas Networks continues to work on driving adoption of its point six zero wireless connectivity platform, with the AAR's wireless communications committee formally selecting DOT 16 as a wireless roadmap standard for all AAR-owned frequencies, validating its long-term strategy.

• For full-year 2025, revenue target is raised to at least $36 million, with Q4 revenue expected to be over $15 million.
• For 2026, the company targets at least $110 million in revenue, with expectations of additional acquisitions during Q4 2025.
• Ondas Networks expects meaningful adoption by railroads in 2026, though initial revenue expectations are modest compared to OAS.

Q: Amit Dayal from H. C. Wainwright asked about the seven advanced M&A deals and potential revenue impact, and how quickly overlapping overheads from acquisitions can be eliminated.

A: Eric Brock stated the seven deals are part of the pipeline and incremental to 2026 revenue targets. On overheads, the established OAS operating platform layer is intended to accelerate revenue growth and capital efficiency without necessarily reducing costs of acquired companies, but rather growing talent and leveraging the platform.

Q: Mike Latimore from Northland Capital Markets asked if 2026 guidance leads to EBITDA positive.

A: Eric Brock said operating businesses are expected to be EBITDA positive by the second half of 2026, with details to be provided in the January OAS Investor Day.

Q: Tim Horan from Oppenheimer asked about integrating Iron Drone with SentriX and deployment timelines, and cost to protect sites.

A: Eric Brock deferred integration timeline specifics to the January call but noted SentriX's technology is proven. Cost to protect sites depends on factors like deployment of detection, soft kill, or hard kill technologies, potentially running into millions of dollars per site.

Q: Austin Delhaig from Needham asked about 2025 guide uptick sources, 2026 guide M&A inclusion, and margin trends.

A: Eric Brock said 2025 guide uptick is from both organic growth and acquisitions. 2026 guide includes announced acquisitions. Gross margins are expected to improve, targeting 50% margin by 2026.

Q: Glenn Mattson from Ladenburg asked about SentriX's unique soft kill technology compared to others.

A: Tal Cohen explained SentriX's Cyber Over RF technology detects, tracks, and identifies drones passively without interference, enabling safe mitigation by assuming control of the drone, which is unique and robust compared to other soft kill solutions.

Q: Matthew Galinko from Maxim Group asked about working capital, inventory buildup, and production capacity.

A: Eric Brock stated they believe in ample production capacity to meet plans, and while there may be some inventory buildup, they are well-capitalized and will provide more details in the January call.

Q: Jonathan Sigman from Stifel asked about incentive systems for teams and balancing individual units.

A: Eric Brock mentioned the importance of incentivizing the leadership team, with the team being excited about the mission and opportunities, and using incentives to drive performance towards the integrated whole, with more details to be provided in the January call.