Ondas(US:ONDS)2025-11-13 13:26Revenue Performance - Ondas Holdings reported a revenue increase of $8,617,518, reaching $10,098,310 for the three months ended September 30, 2025, compared to $1,480,792 for the same period in 2024[299]. - The revenue growth was primarily driven by approximately $5,294,000 in increased product sales and $3,704,000 in increased service and subscription revenue at OAS, attributed to sales of the Optimus System™, Iron Drone Raider™, and Apeiro ground robots[300]. - Ondas Networks generated $81,517 in revenue for the three months ended September 30, 2025, a decrease of $363,771 compared to $445,288 in 2024, while OAS revenue surged to $10,016,793 from $1,035,504[299]. - Revenue increased by $17,556,228 to $20,619,880 for the nine months ended September 30, 2025, compared to $3,063,652 for the same period in 2024[310]. Cost and Profitability - Cost of goods sold rose by $6,060,683 to $7,493,915 for the three months ended September 30, 2025, compared to $1,433,232 in 2024, mainly due to increased revenue at OAS[301]. - Gross profit increased by $2,556,835 to $2,604,395 for the three months ended September 30, 2025, with gross profit margins improving from 3% in 2024 to 26% in 2025[302]. - Cost of goods sold increased by $9,592,896 to $13,194,865 for the nine months ended September 30, 2025, compared to $3,601,969 for the same period in 2024[311]. - Gross profit increased by $7,963,332 to $7,425,015 for the nine months ended September 30, 2025, compared to a gross loss of $538,317 for the same period in 2024[312]. Operating Expenses - The increase in operating expenses was significant, rising by $9,399,670 to $18,107,945 for the three months ended September 30, 2025, compared to $8,708,275 in 2024, driven by higher general and administrative costs[299]. - Operating expenses increased by $9,399,670, or 108%, to $18,107,945 for the three months ended September 30, 2025, compared to $8,708,275 for the same period in 2024[304]. - Total operating expenses increased by $16,934,924 to $42,488,107 for the nine months ended September 30, 2025, compared to $25,553,183 for the same period in 2024[313]. - Human resource costs, including benefits, accounted for 61% of total operating expenses for the three months ended September 30, 2025, up from 38% in the same period in 2024[304]. - The increase in operating expenses was primarily driven by a $7,784,000 increase in human resource costs, including a $4,935,000 increase in stock-based compensation[304]. - Operating expenses increased by $16,934,924, or 66%, primarily due to a $14,271,000 increase in human resource costs, including $7,718,000 for stock-based compensation[314]. Loss and Income - Operating loss increased by $6,842,835, or 79%, to $15,503,550 for the three months ended September 30, 2025, compared to $8,660,715 for the same period in 2024[305]. - Operating loss for the nine months ended September 30, 2025, increased by $8,971,592, or 34%, to $35,063,092 compared to $26,091,500 for the same period in 2024[315]. - Total other income, net increased by $9,195,703, to $8,330,150 for the three months ended September 30, 2025, compared to total other expense, net of $865,553 for the same period in 2024[306]. - Total other income increased by $4,583,780 to $3,003,192, primarily due to a $9,030,000 increase in interest and dividend income[316]. - Net loss decreased by $2,045,412, or 21%, to $7,480,856 for the three months ended September 30, 2025, compared to $9,526,268 for the same period in 2024[307]. - Net loss increased by $4,695,268, or 17%, to $32,367,356 for the nine months ended September 30, 2025, compared to $27,672,088 for the same period in 2024[318]. Cash and Financing - Cash and restricted cash at the end of the period was approximately $433,393,557, up from $2,873,286 in the previous year[319]. - Net cash flows used in investing activities increased by approximately $17,084,000, primarily due to the purchase of equity securities and cash paid for acquisitions[321]. - The company raised approximately $422,309,000 in proceeds from registered offerings during the nine months ended September 30, 2025[325]. - As of September 30, 2025, the company had an accumulated deficit of approximately $268,723,000[323]. - The company expects to fund operations for the next twelve months from cash on hand, gross profits, and potential proceeds from warrants and additional financing[329]. Business Operations and Strategy - The company operates two business segments: Ondas Networks, focusing on wireless connectivity solutions, and OAS, which develops autonomous solutions for defense and industrial markets[286]. - Ondas Holdings continues to develop partnerships in the rail industry, including collaboration with Siemens Mobility to market FullMAX-based networking technology[290]. - OAS achieved FAA Type Certification for the Optimus 1-EX UAV on September 25, 2023, enabling broad BVLOS operations and validating the system's safety and reliability[296]. - The company is closely monitoring the impact of ongoing military operations in Israel on its business, particularly regarding the import of materials for the Optimus System™[298]. Accounting and Reporting - Management's discussion and analysis is based on unaudited Condensed Consolidated Financial Statements prepared in accordance with U.S. GAAP[332]. - There have been no significant changes in critical accounting policies since the filing of the 2024 Form 10-K[332]. - No material changes to significant accounting policies are expected from recent accounting pronouncements[333]. - Forward-looking statements are based on current expectations and assumptions, subject to risks and uncertainties[334]. - The company is classified as a smaller reporting company and is not required to provide market risk disclosures[335].