Industry Overview - The drone technology sector is experiencing significant advancements due to autonomous technology and AI-powered navigation, making modern drones faster and more versatile [2] - The global drone tech market is projected to grow at a CAGR of 14.3% from 2025 to 2030, while the commercial drone market is expected to grow at a CAGR of 20.8% from 2025 to 2032 [4] Commercial Applications - Drones are being utilized across various sectors, including aerial photography, agricultural mapping, military surveillance, and last-mile delivery, with companies like Walmart and Amazon leading in logistics [3] - Amazon's drone delivery service can deliver packages weighing up to five pounds in less than an hour during daylight, emphasizing its electric and emission-free fleet [3] Key Companies - Draganfly Inc. is a Canadian drone solutions developer with products aimed at military and public safety markets, including the Apex drone, which features dual payload capabilities and AI computing [6][7] - Unusual Machines focuses on manufacturing small drones and essential components, having acquired Fat Shark and Rotor Riot businesses in 2024 [9] - Ondas Holdings designs and markets commercial drone solutions for critical applications, recently securing a $14.3 million order for its Optimus Systems [12][13] Regulatory Environment - The Drones for America Act aims to phase out drones with Chinese components by 2028, benefiting U.S.-based companies and reshaping the industry in favor of domestic producers [10] Financial Highlights - Unusual Machines closed a $40 million equity financing, enhancing its cash position to over $40 million with zero debt, and plans to invest in a drone motor factory in Orlando [11] - Ondas Holdings expects revenues of at least $25 million for the full year, with a significant portion coming from its Ondas Autonomous Systems business unit [13][14]

Financial Highlights - Ondas expects to report approximately $6 million in revenue for Q2 2025, a 6-fold increase compared to Q2 2024[29] - The company estimates its backlog at $22.8 million, adjusted for the expected Q2 2025 revenue[29] - Ondas anticipates total revenue of $25 million for Ondas Holdings in 2025, with at least $20 million expected from OAS[29] - Convertible notes outstanding were reduced to $5.4 million at the end of Q2 2025[29] - The company's cash position is fortified with over $67 million as of Q2 2025[29] Market and Growth Strategy - NATO's commitment to increase defense spending to 5% of GDP by 2035 represents a significant shift, potentially leading to $1.2 trillion in annual defense outlays[40, 41] - The FY2025 bill allocates approximately $21.2 billion to programs relevant to Ondas' capabilities and services for governmental defense and security applications in the U.S[44] - The Optimus drone-in-a-box market is projected to reach $1.5 billion in 2025[118] - The counter-drone market, relevant to Iron Drone Raider, is projected to reach $3 billion in 2025[121] Future Outlook - OAS targets revenue of $40 million in 2026[176] - OAS aims to achieve positive EBITDA in the second half of 2026[174, 180] - OAS projects revenue between $140 million and $150 million and EBITDA between $40 million and $45 million by 2030[180]

Summary of Ondus Autonomous Systems (OAS) Investor Day Conference Company Overview - **Company**: Ondus Holdings, specifically its subsidiary Ondus Autonomous Systems (OAS) - **Headquarters**: Baltimore, Maryland, and Petit Tikva, Israel, with commercial locations in Dubai and Singapore - **Employee Count**: 117 employees - **Investment**: Over $165 million invested in advanced autonomous drone platforms serving military, homeland security, public safety, and critical infrastructure customers [8][10] Core Technologies and Solutions - **Flagship Platforms**: - **IronDrone Raider**: A counter UAS system designed for securing critical locations against intruder drones - **Optimus System**: Provides autonomous aerial security inspection and emergency response [9][10] - **Operational Capabilities**: Both platforms are fully autonomous, military-grade, and designed for 24/7 deployment in complex environments [16][41] Financial Performance - **Revenue Projections**: Expected to report $6 million in revenue for Q2 2025, a more than six-fold increase from the previous year [14] - **Backlog Growth**: Increased from approximately $10 million at the end of 2024 to an estimated $22.8 million [15] - **Liquidity Position**: Over $67 million in cash as of the end of Q2 2025, indicating a strong financial foundation for growth [16] Market Dynamics - **Defense Spending Growth**: Non-U.S. NATO members committed to increasing defense spending to 5% of GDP by 2035, potentially growing annual defense spending from $440 billion to over $1.2 trillion [25] - **Demand for Autonomous Systems**: Accelerating procurement cycles and expanding budgets for AI-enabled defense and security technologies [13][26] Strategic Initiatives - **M&A Program**: Targeting high-quality, synergistic businesses to deepen technology portfolio and expand market presence [20] - **Go-to-Market Strategy**: Focused on high-value sectors like defense, homeland security, public safety, and critical infrastructure [21][84] Technology and Innovation - **Full Stack Physical AI**: Integrates hardware and software for autonomous decision-making and mission execution [30][39] - **Kestrel System**: An integrated airspace awareness platform enabling safe drone operations without visual observers [73] Market Opportunities - **Total Addressable Market (TAM)**: - **Optimus**: Projected growth from $1.5 billion in 2025 to over $3.5 billion by 2030 [89] - **IronDrone Raider**: Expected to grow from approximately $3 billion today to over $10 billion by 2030 [90] - **Serviceable Available Market (SAM)**: Estimated at $2.1 billion for IronDrone in military and security use cases, and $3.2 billion for Optimus [95][97] Conclusion - **Positioning**: Ondus Autonomous Systems is strategically positioned to capitalize on significant macroeconomic and policy tailwinds, with a strong focus on scalability and operational efficiency in the defense and security sectors [20][26][86]

[Announcement of Investor Day and Preliminary Q2 2025 Financial Results](index=2&type=section&id=Item%202.02.%20Results%20of%20Operations%20and%20Financial%20Condition) Ondas Holdings Inc. announced a virtual Investor Day and preliminary unaudited Q2 2025 financial results - The company announced a virtual Investor Day to be held on July 9, 2025, at 1:00 p.m. Eastern Time[5](index=5&type=chunk) - Simultaneously, the company reported preliminary select financial results for the quarter ended June 30, 2025, via a press release (Exhibit 99.1)[5](index=5&type=chunk) - The financial information provided is explicitly stated as unaudited, preliminary, and not fully representative of the company's financial condition or operational results for Q2 2025[6](index=6&type=chunk) - The information furnished under Item 2.02, including the press release, is not considered "filed" for the purposes of Section 18 of the Exchange Act[7](index=7&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) The report includes forward-looking statements, subject to risks and uncertainties, with no commitment to future updates - Statements in the report that are not historical facts are defined as "forward-looking statements" under the Private Securities Litigation Reform Act of 1995[8](index=8&type=chunk) - The company cautions that actual results may differ materially from those expressed in forward-looking statements due to various risk factors detailed in its Form 10-K and 10-Q filings[8](index=8&type=chunk) [Financial Statements and Exhibits](index=2&type=section&id=Item%209.01.%20Financial%20Statements%20and%20Exhibits) This section lists exhibits filed with the Form 8-K, including the press release with preliminary financial results Exhibits | Exhibit No. | Description | | :--- | :--- | | 99.1 | Press Release, dated July 9, 2025 | | 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

Ondas Autonomous Systems (OAS) - OAS is positioned to achieve at least $20 million in expected revenues for 2025, entering the year with a $10 million backlog[22] - The company anticipates generating $25 million in revenue in 2025[23] - The combined Total Addressable Market (TAM) for Iron Drone Raider and Optimus System is estimated at $53 billion and $22 billion, respectively[27] - Initial Obtainable Market (SOM) through 2026 for Iron Drone is $70 million and for Optimus is $50 million[31] - Secured ~$144 million in purchase orders in Q3 2024[32] Ondas Networks - The total addressable market for private wireless Rail networks in North America is in excess of $13 billion[78] - Railroads could potentially drive ~$5 billion of additional revenue with a ~5% productivity increase[75] Financial Performance (Q1 2025) - Net revenues increased to $4248182, a 580% increase compared to $625009 in the same period last year[103, 104] - The company has a cash balance of $254 million, compared to $146 million a year ago[105, 106] - Holdings Convertible Debt reduced by $192 million to $254 million at the end of Q1 2025[108]

Core Viewpoint - Ondas Holdings Inc. is conducting its Q1 2025 earnings conference call, indicating a focus on financial performance and strategic direction for the upcoming quarter [1]. Company Participants - The call features key executives including Eric Brock (Chairman, President, and CEO), Neil Laird (Interim CFO), Oshri Lugassy (Co-CEO, Autonomous Systems), and Markus Nottelmann (CEO, Ondas Networks) [1]. Conference Call Structure - The conference call is structured to allow participants to listen only, with an emphasis on forward-looking statements that may contain risks and uncertainties [2]. - The company has provided a reconciliation of non-GAAP financial measures to GAAP measures, highlighting the importance of these metrics for understanding business trends [3].

Core Insights - Ondas Holdings Inc. reported a quarterly loss of $0.15 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.11, marking an earnings surprise of -36.36% [1] - The company generated revenues of $4.25 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 0.43% and significantly up from $0.63 million a year ago [2] - Ondas shares have declined approximately 65.8% year-to-date, contrasting with a slight gain of 0.2% in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.11 on revenues of $5.15 million, while for the current fiscal year, the estimate is -$0.40 on revenues of $22.37 million [7] - The estimate revisions trend for Ondas is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Communication - Network Software industry, to which Ondas belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Data and Key Metrics Changes - Revenues increased over 500% to $4,200,000 in Q1 2025 from $600,000 in Q1 2024 [14] - Gross profit was $1,500,000 representing a 35% gross margin in Q1 2025 compared to a gross loss of $400,000 in Q1 2024 [15] - Operating expenses increased to $11,800,000 for Q1 2025 from $8,700,000 in Q1 2024 [16] - Cash held was $25,400,000 as of March 31, 2025, down from $30,000,000 as of December 31, 2024 [17] Business Line Data and Key Metrics Changes - OAS revenues were $4,000,000, an increase of over 600% from Q1 2024 [14] - Revenue from OnDaaS Networks was $200,000, relatively flat compared to $300,000 in Q1 2024 [14] - The backlog grew to $16,800,000, with over $9,000,000 in additional orders secured year to date [7] Market Data and Key Metrics Changes - OAS is expanding its presence with new defense and homeland security customers across Europe, the Middle East, and the U.S. [8] - The Iron Drone Raider system is operational in a live combat environment, demonstrating its effectiveness [8] - The company is seeing strong global demand for Iron Drone as nations seek multi-layered kinetic counter UAS solutions [39] Company Strategy and Development Direction - The company anticipates a record year of revenue growth in 2025, primarily driven by OAS [5] - The strategy includes capturing programs of record and expanding those programs to generate recurring business activity [41] - The company aims to secure additional military customers and expand its partner ecosystem to support global sales and marketing [44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory for 2025 and beyond, citing strong demand and a growing backlog [46] - The company is focused on advancing U.S.-based manufacturing plans to align with defense procurement priorities [40] - Management highlighted the importance of capitalizing on emerging investment cycles in defense and security markets globally [49] Other Important Information - The company plans to host a second OAS-focused Investor Day in June to provide updates on business plans and financial outlook [52] - A significant debt reduction was achieved through the conversion of convertible notes to equity, reducing outstanding convertible debt to $20,600,000 [18][20] Q&A Session Summary Question: Follow-on orders and their size - Management indicated that initial orders are often pilot programs, with significant expansions expected thereafter [54][55] Question: Opportunities in Europe - Management confirmed ongoing discussions with other countries in Europe, highlighting increased defense spending due to geopolitical tensions [56] Question: Growth opportunities for Optimus - Management noted existing customers will expand programs, with significant opportunities in public safety and defense sectors [61][62] Question: Budget sources for U.S. public safety - Funding for public safety initiatives is coming from both state/local governments and federal sources, with increasing budgets for drone technology [63][64] Question: Impact of tariffs on supply chain - Management acknowledged potential impacts from tariffs but emphasized careful sourcing and plans to move production to the U.S. [72][76] Question: Pipeline breakdown between current customers and new logos - Management indicated significant expansion opportunities with new customers, alongside growth with existing customers [81][82]

Financial Data and Key Metrics Changes - Revenues increased over 500% to $4,200,000 in Q1 2025 from $600,000 in Q1 2024 [17] - Gross profit was $1,500,000 representing a 35% gross margin in Q1 2025 compared to a gross loss of $400,000 in Q1 2024 [18] - Operating expenses increased to $11,800,000 for Q1 2025 from $8,700,000 in Q1 2024 [19] - Cash held was $25,400,000 as of March 31, 2025, down from $30,000,000 as of December 31, 2024 [20] Business Line Data and Key Metrics Changes - OAS revenues were $4,000,000, an increase of over 600% from Q1 2024, driven by military customer programs and deployments in the UAE [17][18] - Revenues from OnDaaS Networks were $200,000, relatively flat compared to $300,000 in Q1 2024 [17] Market Data and Key Metrics Changes - OAS is expanding its presence with new defense and homeland security customers across Europe, the Middle East, and the U.S. [8] - The Iron Drone Raider system is operational in a live combat environment, demonstrating its effectiveness [9] Company Strategy and Development Direction - The company anticipates a record year of revenue growth in 2025, primarily driven by OAS [5] - The strategy includes capturing programs of record and expanding those programs to generate recurring business activity [45] - The company aims to secure additional military customers and expand its partner ecosystem in 2025 [49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory for 2025, supported by a growing backlog and customer pipeline [50] - The company expects to add more military and homeland security customers beyond the initial goals set for 2025 [12][48] Other Important Information - The company announced a shelf registration statement for $225,000,000 to support future growth opportunities [53] - Joe Popolo will be stepping down from the board to take on new responsibilities as the U.S. Ambassador to the Netherlands [51] Q&A Session Summary Question: Follow-on orders and their size - Management indicated that initial orders are often pilot programs, with significant expansions expected thereafter [59][60] Question: Discussions with NATO and other countries - Management confirmed ongoing discussions with other countries, particularly in light of increased defense spending in Europe [61] Question: Opportunities for Optimus in the U.S. - Management highlighted existing customers expanding programs and targeting public safety and critical infrastructure markets [66][68] Question: Margin profile of recent orders - Management stated that Iron Drone margins are better than Optimus, with both systems having margins north of 50% [74] Question: Supply chain and tariff risks - Management noted that while tariffs on China are significant, they are managing supply chain risks by sourcing away from China [78][80] Question: Pipeline breakdown between current customers and new logos - Management expects significant expansion opportunities with both current customers and new logos in 2025 and beyond [84][86]

First Quarter 2025 Earnings Release NASDAQ: ONDS | May 15, 2025 Copyright 2025. All rights reserved. This presentation may contain "forward-looking statements" as that term is defined under the Private Securities Litigation Reform Act of 1995 (PSLRA), which statements may be identified by words such as "expects," "projects," "will," "may," "anticipates," "believes," "should," "intends," "estimates," and other words of similar meaning. Ondas Holdings Inc. ("Ondas" or the "Company") cautions readers that forw ...