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]

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]