Ondas Holdings Inc. Q4 FY2025 earnings call

• ONDAS is delivering on core and strategic growth plan with strong momentum. - Announced joint venture with Heidelberg for European strategy, worldview acquisition closing in Q2 2026, and partnership with Palantir. - Neil provided financial review showing strong revenue growth, improved gross margin, but non-cash warrant charge. - Discussed momentum across business, expansion of technology portfolio, acquisitions adding strategic value, and build-out of operating platform. - Highlighted progress in systems of systems platform, including five accretive acquisitions in Q1 2026, and how acquisitions are accelerating the platform and financial model.

In the fourth quarter, revenue was $30.1 million, up 629% year-over-year and nearly 200% sequentially. Full-year 2025 revenue was $50.7 million, up 605% from 2024. Gross margin in Q4 was 42%, improving from 21% in prior year and 26% in Q3. Full-year gross margin was 40%. Ondas Networks saw the AAR adopt its IEEE 802.16 technology as the rail communications protocol. Andes Autonomous Systems had acquisitions contributing to growth. The joint venture ONBURG with Heidelberg is expected to drive growth. Worldview acquisition and partnership with Palantir expand capabilities.

• Raised 2026 revenue outlook to at least $375 million. - Expect first quarter 2026 revenue in range of $38 to $40 million. - Backlog expected to increase significantly in Q1. - Product companies expected to reach positive EBITDA in Q3 2026, OAS in Q3 2027, and Onda Zinc in Q1 2028. - Multiple growth platforms with upside potential, including layered ISR go-to-market with Palantir and ONBURG opportunities.

Q: Given increasing conflict in Middle East, how has business progressed?

A: More demand, RFP, urgency, and well-positioned in ISR and counter UES.

Q: On multi-layered ISR, how customers procure and participation?

A: Near term contracts for single domains, strategy for multi-domain with Palantir partnership.

Q: Organic growth rate and bottlenecks to growth?

A: Core growth strong, no unique bottlenecks, investing in manufacturing and integration.

Q: Worldview's market potential?

A: Hundreds of flights per year in specific customers, commercial use cases like oil and gas monitoring.

Q: Update on 2025 acquisitions outperforming?

A: Happy with portfolio, Centrix, 4M, Roboteam seeing demand.

Q: Integration of acquisitions?

A: PMI activities, communication, retention, and creating opportunities.

Q: Acquisition cadence and highest priority capabilities?

A: Continue to deepen aerial and ground capabilities, C2, sensors at edge, cadence with active conversations.

Q: ONBURG repeatability and OpEx leverage?

A: Can repeat, OpEx leverage from sales, marketing, supply chain, gross margin, and field services synergies