Financial Performance & Outlook - Ondas reported revenue of $63 million in Q2 2025, a 555% increase compared to $957851 in Q2 2024[19,35] - The company is targeting at least $25 million in revenue for the full year 2025[19] - Ondas' consolidated backlog has grown to $22 million, up from $10 million at the end of Q4 2024[22] - The company's cash balance as of Q2 2025 was $686 million[22,37] - Adjusted EBITDA improved by $905k year-over-year[36] Ondas Autonomous Systems (OAS) - OAS generated $61 million in revenues for Q2 2025 and captured $233 million in orders year-to-date[58] - OAS secured $38 million in orders for the Optimus Drone Network in the UAE[58] - OAS secured $143 million Optimus System order from a major defense customer[58] Ondas Networks & dot16 Technology - IEEE 80216t (dot16) wireless standard was ratified, with Ondas leading the development[19,46] - dot16 was selected as the NGHE communications platform by the AAR[19] - The company is launching a field trial in Q3 2025 to demonstrate converting a 160 MHz network to dot16[51]

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]

Industry Overview - The Zacks Communication-Network Software industry includes companies providing software solutions for cloud, on-premise, and hybrid environments, as well as communication technology solutions like broadband and VoIP [2] - The industry supports the deployment of 5G and 6G networks and offers solutions for various sectors including telecommunications, technology, and government [2] Current Trends - There is an increased adoption of cloud-based solutions driven by digitalization, leading to higher demand for cloud applications and security solutions [3] - Automation tools are becoming essential as enterprises transition to the cloud, improving performance monitoring and reducing costs [4] - The rapid evolution of 5G and 6G networks is creating growth opportunities due to rising demand for data-intensive applications and reduced latency [5] Performance Metrics - The Zacks Communication-Network Software industry has outperformed the Zacks S&P 500 composite and its sector, appreciating 23% over the past year compared to 10.6% for the Zacks Computer and Technology sector and 11.6% for the S&P 500 [9] - The industry is currently trading at an EV/Sales ratio of 2.68X, lower than the S&P 500's 5.19X and the sector's 7.08X, indicating potential valuation opportunities [12] Notable Companies - A10 Networks (Zacks Rank 2) is a leading provider of security and infrastructure solutions, benefiting from strong demand in AI-related data centers and expected to see significant security revenue growth by 2025 [16][17] - Ondas (Zacks Rank 3) provides private wireless and drone solutions, with a strong order backlog of $16.8 million and projected revenues of at least $25 million for 2025 [19][20]

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]