Key Takeaways ONDS is building a multi-domain defense platform through rapid acquisitions across key technologies.Recent deals add capabilities in robotics, demining, optics and counter-UAS systems. M&A has boosted backlog to $40M while creating integration and expense risks investors must monitor.Ondas Holdings ((ONDS) is rapidly evolving into a multi-domain defense and security technology platform. The company’s strategic acquisition program underscores how aggressively it is executing that shift. On the ...

Key Takeaways ODNS consolidated backlog rose to $23.3M in Q3, with total orders topping $40M, including acquisitions.OAS unit reported $22.2M in backlog as ONDS expands across robotics, ground systems and counter-UAS tech.ONDAS raised its 2025 revenue target to at least $36M and set a 2026 goal of $110M.Ondas Holdings Inc. (ONDS) has headed into the final quarter of 2025 with strengthening momentum, driven by rapid growth in its autonomous systems business and a sharp rise in backlog. The company reported a ...

Group 1 - Ondas Holdings' stock price correction was justified due to its early-stage growth status and execution risks, but a strong rebound is anticipated as selling pressure diminishes [2] - The company reported a significant year-over-year revenue increase of nearly 600%, reaching $10.1 million, and outperformed consensus estimates by over 4,000 basis points, indicating strong demand for its autonomous drone systems [3] - The gross margin improved significantly due to increased revenue leverage, despite wider losses attributed to one-offs and increased costs, with GAAP losses of 3 cents being 2 cents better than expected [4] Group 2 - Demand for autonomous drone-in-a-box systems is surging, particularly in defense and industrial sectors, contributing to Ondas Holdings' growth trajectory [5] - The company's guidance reflects growing visibility and is likely conservative, considering the expansion of global defense budgets [5] - Analyst upgrades and institutional buying in 2025 suggest increasing confidence in Ondas' long-term growth potential [5]

Core Insights - Ondas Holdings Inc. has appointed Maj. Gen. (Ret.) Yoav Har-Even to its Advisory Board for Ondas Autonomous Systems (OAS), leveraging his extensive experience in defense technology and international collaboration [2][4][3] Company Update - Har-Even previously served as President & CEO of Rafael Advanced Defense Systems, where he led significant growth and development of advanced defense technologies, including the Iron Dome [3][2] - His appointment is expected to enhance OAS's global defense-technology strategy and support the company's expansion in multi-domain autonomy and airspace defense [2][4] Strategic Goals - The addition of Har-Even to the advisory board aims to guide product integration, strategic partnerships, and international expansion, crucial for Ondas' next phase of growth [4][5] - In 2025, OAS achieved record international orders for its Optimus and Iron Drone Raider systems across Asia, Europe, and the Middle East, indicating strong market demand [4] Technology and Solutions - Ondas provides a range of autonomous systems and private wireless solutions, enhancing security and operational efficiency across various industries [6][7] - OAS's portfolio includes AI-powered defense platforms and advanced ground robotics, supported by innovative navigation and communication technologies [7][6]

Core Insights - Ondas Holdings is a $2.2 billion provider of autonomous drone systems and private wireless solutions, focusing on enhancing security and operational efficiency across essential industries [1] Group 1: Product Offerings - Ondas Autonomous Systems (OAS) provides AI-powered defense and security platforms, including the Optimus System, the Iron Drone Raider, and advanced ground robotics [2] - The Optimus System is the first U.S. FAA-certified small UAS for automated aerial security and data capture [2] - Ondas has acquired Sentrycs, a leader in counter-UAS technology, which enhances its capabilities in the counter-drone ecosystem [21][23] Group 2: Strategic Partnerships and Growth - Ondas has partnered with Palantir Technologies to leverage its Foundry platform for data integration and operational efficiency [12][13] - The company appointed Brigadier General Patrick Huston to its advisory board to support its strategic growth in the defense sector [5] - Ondas has received a $3.5 million order for ground robotics and payload systems from a leading defense entity, indicating strong demand for its products [6] Group 3: Market Engagement and Expansion - Ondas attended the AUSA Annual Meeting & Exposition 2025, showcasing its Iron Drone Raider and launching Ondas Capital, which aims to deploy $150 million for unmanned systems [9] - The company has placed an initial order for 500 Wasp drones from Rift Dynamics, targeting U.S. defense markets [7][8] - Ondas is expanding its partnership with Rift Dynamics to include Nammo for a fully integrated Wasp munition drone solution [10] Group 4: Future Outlook - The company is expected to report on its growth plans for full-spectrum autonomous systems on November 13, which may provide further insights into its strategic direction [24] - The integration of Palantir's Foundry is seen as a significant move towards scaling operations and enhancing decision-making capabilities [16][18]

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 [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]