Ondas(US:ONDS)2025-11-13 13:17Financial Performance - Ondas reported record quarterly revenue of $10.1 million in Q3 2025, representing a more than 582% increase year-over-year and a 60% growth quarter-over-quarter[1][12] - Revenues for the three months ended September 30, 2025, reached $10,098,310, a significant increase from $1,480,792 in the same period of 2024, representing a growth of 579%[42] - Gross profit for Q3 2025 rose to $2.6 million, resulting in a gross profit margin of 26%, compared to 3% in Q3 2024[13] - Gross profit for the nine months ended September 30, 2025, was $7,425,015, compared to a loss of $(538,317) in the same period of 2024, indicating a turnaround in profitability[42] - The net loss attributable to common stockholders for the nine months ended September 30, 2025, was $(36,144,526), compared to $(30,899,010) in the same period of 2024, representing a 17% increase in losses[42] - Net loss for Q3 2025 was $7.5 million, an improvement from a loss of $9.5 million in Q3 2024, with an adjusted EBITDA loss of $8.8 million compared to $7.1 million in the prior year[16] - Adjusted EBITDA for the nine months ended September 30, 2025, was $(22,082,669), compared to $(21,516,451) in the same period of 2024, indicating a slight deterioration in operational performance[47] Revenue Targets and Backlog - Ondas increased its revenue target for 2025 to at least $36 million and established a preliminary revenue target of at least $110 million for 2026[1] - The company expects to generate at least $36 million in revenue for 2025, up from a previous target of $25 million, supported by a consolidated backlog of $23.3 million at the end of Q3 2025[21] - The backlog for Ondas Autonomous Systems (OAS) reached $22.2 million as of September 30, 2025, up from $20.7 million at the end of Q2 2025, indicating strong demand for the Optimus and Iron Drone platforms[7] Cash and Financing - Cash and cash equivalents at the end of Q3 2025 totaled $433.4 million, a significant increase from $30.0 million as of December 31, 2024, with pro forma cash balances around $840.4 million after an equity offering[17] - Total shareholders' equity rose to $487.2 million as of September 30, 2025, up from $16.6 million at the end of 2024, driven by financing activities and debt conversions[20] - Cash flows from financing activities for the nine months ended September 30, 2025, were $448.2 million, primarily from equity offerings and the exercise of warrants[18] - Convertible debt outstanding decreased significantly to $9.5 million as of September 30, 2025, from $52.7 million at the end of 2024, due to conversions into equity[19] - Cash used in operating activities was $26.0 million in the current period, slightly higher than $25.4 million in the first nine months of 2024[18] - Cash flows used in operating activities for the nine months ended September 30, 2025, were $(26,017,625), slightly higher than $(25,360,649) in the same period of 2024[44] Operating Expenses - Operating expenses increased to $18.1 million in Q3 2025, up from $8.7 million in Q3 2024, primarily due to increased payroll costs and non-cash stock compensation[14] - Total operating expenses for the three months ended September 30, 2025, were $18,107,945, up from $8,708,275 in the same period of 2024, reflecting a 107% increase[49] - The company incurred stock-based compensation expenses of $9,210,913 for the nine months ended September 30, 2025, compared to $988,683 in the same period of 2024, reflecting increased investment in employee incentives[44] Strategic Initiatives - Ondas completed multiple government-led counter-UAS pilot programs in Europe and Asia, validating the performance of the Iron Drone Raider in complex environments[7] - The company announced strategic acquisitions, including Sentrycs and Apeiro Motion, to enhance its capabilities in counter-UAS and ground robotics[4][7] - Ondas launched a new line of fiber-optic spools for drones and ground robotics, with production expected to begin in Q4 2025, aimed at enhancing connectivity for defense missions[8] - Ondas Networks is positioned for a multi-year upgrade cycle across AAR-owned frequencies, with several Class 1 railroads engaging in Proof of Concept application testing for the dot16 platform[10][11] Market Outlook - The company anticipates fluctuations in bookings and revenue growth due to variability in expected orders and the timing of new customer additions[22] - Ondas Holdings continues to focus on expanding its autonomous systems and private wireless solutions across essential industries[26]