Financial Data and Key Metrics Changes - The company reported record quarterly revenue of $6.3 million, a more than six-fold increase compared to the same period last year and up 50% sequentially [7][23] - Gross profit was $3.3 million, representing a 53% gross margin, compared to a gross loss of $200,000 in Q2 2024 [23] - Operating expenses increased to $12.6 million from $8.1 million in Q2 2024, primarily due to increased human resource costs [24][28] Business Line Data and Key Metrics Changes - Ondas Autonomous Systems (OAS) generated approximately $6.1 million in revenue, a more than six-fold increase from the same period in 2024 [43] - OAS secured over $39 million in orders in the last twelve months, with a backlog of $22 million at the end of Q2, up from $10 million at the end of 2024 [12][65] - Ondas Networks advanced its long-term strategy with significant milestones, including the selection of its DOT-16 protocol by the Association of American Railroads [11][33] Market Data and Key Metrics Changes - OAS is expanding its footprint in defense and homeland security markets in Europe, the Middle East, and the United States [8] - The company is experiencing strong interest in its Iron Drone radar system, which has been combat-proven with leading military customers [8][10] - The backlog growth is translating into revenue, with operational footprints expanding in the U.S. and Europe [12][28] Company Strategy and Development Direction - The company aims to build a scalable, well-capitalized operating platform, converting backlog into revenue and creating visibility for continued growth into 2026 [15][30] - The partnership with Mistral is expected to accelerate U.S. government adoption of IronDrone and Optimus [14] - The company is pursuing a strategic M&A program to enhance capabilities and market reach [14][60] Management's Comments on Operating Environment and Future Outlook - Management believes the drone sector is benefiting from significant policy tailwinds, including new FAA rulemaking processes [15][16] - The company anticipates a record year of revenue growth primarily driven by OAS, reaffirming its full-year revenue target of at least $25 million [7][65] - Management expressed confidence in capturing significant strategically important orders from new customers in 2025 [7][65] Other Important Information - The company ended Q2 with $68.6 million in cash and fully retired the remaining balance of convertible notes through equity conversion [12][28] - Shareholders' equity increased to $90.8 million as of June 30, 2025, compared to $16.6 million at the end of 2024 [29] Q&A Session Summary Question: Can you clarify the source of the $23 million bookings confidence and the balance between international and U.S. demand? - Management indicated that new customer programs typically start with small orders, which can expand into larger infrastructure build-outs over time, leading to larger orders in the future [71] Question: Are the two control acquisitions in addition to the recent acquisition of Zikle? - Yes, these acquisitions are in addition to the Zikle transaction and are expected to be revenue-generating [73] Question: Is the gross margin a good reflection of what the OAS business looks like at scale? - Management believes that while the current gross margin is strong, there is potential for improvement as the business scales [75] Question: Can you provide more details on the Kestrel win with the Urban Public Safety Agency? - The Kestrel system is part of a layered security approach, and there is significant demand for counter UAS technologies [79] Question: Are there other police departments in the U.S. interested in your technologies? - There is significant interest from various defense and public safety organizations, but specific names cannot be disclosed at this time [83]

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]

Financial Data and Key Metrics Changes - Revenues increased 173% to $4,100,000 for Q4 2024 compared to $1,500,000 for Q3 2024, but down 18% from $5,000,000 for Q4 2023 [22] - For the full year 2024, revenues were $7,200,000 compared to $15,700,000 for 2023, largely due to extended timelines and war-related disruptions [25] - Operating loss was $8,500,000 for Q4 2024 compared to $12,600,000 for Q4 2023 [25] - Adjusted EBITDA loss was $28,500,000 for 2024 compared to $29,700,000 for 2023 [27] Business Line Data and Key Metrics Changes - OAS revenues were $3,600,000, an increase of 260% from Q3 2024 and a 10% increase from Q4 2023 [22] - Revenues from ONDAS Networks were $500,000, relatively flat compared to Q3 2024 and down $1,100,000 from Q4 2023 [22] - The company closed the year with a $10,000,000 backlog, primarily with OAS, reinforcing the strength of its pipeline [12] Market Data and Key Metrics Changes - The company established a presence in the global defense market, securing two major programs with a military customer in the Middle East [10] - The demand for drone interception technology is growing, positioning IronDrone as a market-defining platform [10] Company Strategy and Development Direction - The company anticipates a record year of revenue growth in 2025, primarily driven by OAS [7] - Key objectives for 2025 include driving growth with existing programs and expanding into new customer opportunities [14] - A strategic partnership with Palantir Technologies was announced to enhance operational efficiencies through AI [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving at least $20,000,000 in revenues from OAS in 2025, supported by a growing backlog [12][61] - The company expects margins to recover in 2025 with higher revenues and improved scale from larger production volumes at OAS [26] - Management highlighted the importance of operational scale and customer engagement to support growth [64] Other Important Information - The company raised $35,000,000 in Q4 2024, providing a strong liquidity position for expansion [13] - Cash held as of 12/31/2024 was $30,000,000, compared to $15,000,000 as of 12/31/2023 [27] Q&A Session Summary Question: Visibility into $20,000,000 revenue target and mix between Optimus and IronDrone - Management expects the $10,000,000 backlog to be recognized in revenue in Q1 and Q2 2025, with active engagement on new programs [66][67] Question: Development of first responder opportunities in the U.S. market - There is significant interest in the Optimus platform, with successful pilot programs conducted [73][74] Question: Impact of U.S. tariff posture on product delivery and costs - Management does not foresee a major impact from tariffs, as they do not source much from China [75][76] Question: Gross margins expectations for the year - Management expects gross margins to recover, projecting them to be in the 40% range initially, potentially reaching 50% or better [78] Question: Clarification on the partnership with Palantir - Management clarified that the partnership involves integrating Palantir's Foundry AI to enhance operational capabilities and develop advanced solutions [84][85] Question: Status of regulatory deadlines for network requirements - Management indicated that the railroad industry is committed to meeting regulatory deadlines, with specific timelines for spectrum utilization [90][91]