Ondas (NasdaqCM:ONDS) Q4 2025 Earnings call March 25, 2026 08:30 AM ET Company ParticipantsAlex Latimore - Research AssociateEric Brock - Chairman and CEOJonathan Siegmann - Managing DirectorMeir Kliner - PresidentMichael Legg - Managing Director of Equity ResearchNeil Laird - CFORyan Hartman - President and CEOConference Call ParticipantsAustin Bohlig - Principal and Senior Equity Research AnalystMatthew Galinko - SVP and Senior Equity Research AnalystMax Michaelis - Equity Research AnalystTimothy Horan - ...

Ondas (NasdaqCM:ONDS) Q4 2025 Earnings call March 25, 2026 08:30 AM ET Company ParticipantsAlex Latimore - Research AssociateEric Brock - Chairman and CEOJonathan Siegmann - Managing DirectorMeir Kliner - PresidentMichael Legg - Managing Director of Equity ResearchNeil Laird - CFORyan Hartman - President and CEOConference Call ParticipantsAustin Bohlig - Principal and Senior Equity Research AnalystMatthew Galinko - SVP and Senior Equity Research AnalystMax Michaelis - Equity Research AnalystTimothy Horan - ...

Ondas (NasdaqCM:ONDS) Q4 2025 Earnings call March 25, 2026 08:30 AM ET Speaker9Welcome to the Ondas Inc. fourth quarter and fiscal year 2025 conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by 0. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star and then 1 on your touchtone telephone. To withdraw your questions, you may press star ...

Core Insights - Ondas Inc. (ONDS) is set to release its fourth-quarter 2025 results on March 25, 2026, with expectations of a revenue range between $29.1 million and $30.1 million, reflecting a significant increase from previous guidance [1][3][9] - The Zacks Consensus Estimate for the fourth-quarter 2025 indicates a loss of 6 cents per share, with revenues projected to rise by 578% year-over-year [2] Financial Performance - The company has experienced a mixed earnings performance, beating estimates in the last quarter but missing in the previous three, resulting in an average negative surprise of 21.16% [1] - Full-year revenues are anticipated to be between $49.7 million and $50.7 million, an increase from earlier projections [4] Business Strategy and Growth Drivers - Ondas is focusing on expanding its Ondas Autonomous Systems (OAS) division, which is expected to drive significant revenue growth [6][30] - The company has entered into a merger agreement with Mistral Inc., a U.S.-based defense contractor, which is expected to enhance its capabilities in defense procurement [8][10] Market Position and Competitive Landscape - The company is expanding its customer base in defense and homeland security across various regions, including Europe and the Middle East [7] - The Counter-UAS (C-UAS) segment is identified as a key growth driver, with over $60 million in orders expected in 2025 [11] Recent Developments and Acquisitions - Ondas has made several acquisitions to strengthen its portfolio, including Sentrycs and Roboteam, which are expected to contribute positively to revenue performance [14][15] - The company has a strong balance sheet with a pro forma cash balance exceeding $1.5 billion, providing financial flexibility for its M&A strategy [16] Valuation Metrics - ONDS stock is trading at a forward price/sales ratio of 22.75X, significantly higher than the industry average of 1.92X, indicating a premium valuation [27][29] Stock Performance - Over the past six months, ONDS shares have surged by 48.1%, outperforming the Wireless-National industry, which declined by 3.5% [23]

Core Insights - Ondas Inc. has completed the acquisition of Rotron Aerospace Ltd., enhancing its capabilities in long-range propulsion technologies for unmanned systems in defense [1][2][3] Group 1: Acquisition Details - The acquisition strengthens Ondas' systems architecture with advanced unmanned aircraft platforms and long-endurance autonomous mission capabilities [1][2] - Rotron's portfolio includes vertical take-off and landing (VTOL) platforms, long-range unmanned aircraft, and advanced aero-engines known for high power-to-weight efficiency [2][3] - Rotron will serve as Ondas' UK-based go-to-market platform, enhancing its ability to design and scale next-generation unmanned systems [2][3] Group 2: Strategic Implications - The acquisition expands Ondas' strategic footprint within the UK and NATO ecosystems, providing access to major programs through established relationships with the UK Ministry of Defence [1][3] - Ondas aims to build a UK industrial base for advanced unmanned systems, supporting NATO programs and allied defense localization initiatives [1][3] - The integration of Rotron's technologies is expected to advance the development of long-range unmanned platforms and autonomous mission systems for modern defense operations [4] Group 3: Company Overview - Ondas Inc. is a leading provider of autonomous systems and private wireless solutions, focusing on enhancing security and operational efficiency across essential industries [6] - The company operates through various business units, including Ondas Autonomous Systems (OAS), which delivers AI-powered defense and security platforms globally [7] - Ondas Capital plans to accelerate the scaling and deployment of unmanned and autonomous systems to allied defense and security markets [8]

Core Viewpoint - Ondas Inc. reported preliminary financial results for the fourth quarter and full year of 2025, indicating revenues above prior guidance and reiterating its revenue outlook for 2026 [1] Financial Results Summary - For Q4 2025, preliminary revenue is expected to be between $29.1 million and $30.1 million, exceeding the previous guidance of $27 million to $29 million [1] - The anticipated net loss for Q4 2025 is between $(20.9) million and $(20.4) million, with adjusted EBITDA projected between $(11.4) million and $(10.9) million [1] - For the full year 2025, revenue is expected to be between $49.7 million and $50.7 million, surpassing the prior guidance of $47.6 million to $49.6 million [1] - The expected net loss for the full year 2025 is between $(53.3) million and $(52.8) million, with adjusted EBITDA between $(32.9) million and $(32.4) million [1] 2026 Revenue Outlook - The company reiterated its full year 2026 revenue guidance of $170 million to $180 million, excluding any impact from new acquisitions [1] Cash Position - As of December 31, 2025, the company's cash and cash equivalents, including approximately $1 billion raised on January 12, 2026, exceed $1.5 billion [1] Conference Call Details - A conference call to discuss the financial results will be held on March 25, 2026, at 8:30 a.m. Eastern Time [1]

Core Insights - Ondas Inc. has appointed David Chinn, a Senior Partner at McKinsey & Company, to the Board of Directors of Ondas Autonomous Systems (OAS) to support its global defense expansion [1] - Chinn brings over 20 years of experience in advising governments and defense organizations on strategy and large-scale capability development [1] - The appointment is expected to enhance OAS's leadership as it scales globally and expands its role in providing mission-ready autonomous systems [1] Company Overview - Ondas Inc. is a leading provider of autonomous systems and private wireless solutions through its business units, including Ondas Autonomous Systems (OAS) and Ondas Networks [1] - OAS focuses on delivering AI-powered defense and security platforms globally, addressing airspace security, counter-UAS, ISR, and robotic systems [1] - The company is building a differentiated portfolio of autonomous platforms designed for real-world defense and security operations [1] Strategic Direction - David Chinn's expertise in defense modernization and technology adoption aligns with OAS's growth trajectory and strategic goals [1] - OAS aims to integrate multiple sensors, effectors, and autonomous platforms to meet evolving defense and security requirements worldwide [1] - The demand for scalable, autonomous, and integrated systems is accelerating, prompting OAS to strengthen its leadership and governance for long-term growth [1]

Core Insights - Ondas Inc (ONDS) has shown strong performance in 2025 and continues to maintain momentum into 2026, positioning itself well within the defense and industrial sectors undergoing transformation [1][2] - The company is exploring whether it can sustain long-term growth and potentially increase its stock value significantly [1] Industry Overview - The defense and industrial sectors are shifting from traditional manned systems to connected, autonomous, and swarming technologies, creating opportunities for startups to disrupt established manufacturers [2] - Ondas Inc is strategically positioned at the intersection of these trends, evolving from a niche provider of specialized radios to a diversified holding company focused on autonomous drones for security needs [3] Business Model - Ondas operates on a "Three-Legged Stool" model, consisting of Ondas Networks, Ondas Autonomous Systems (OAS), and Ondas Capital [4][5][6] - Ondas Networks provides a federally mandated wireless standard for the North American rail network, generating high-margin recurring revenue [4] - OAS is a rapidly growing defense technology division that offers a comprehensive defense solution through various acquisitions, capitalizing on the demand for counter-UAS technology [5] - Ondas Capital utilizes a significant cash reserve to consolidate in a fragmented industry, allowing for strategic acquisitions [6] Financial Performance and Valuation - As of the latest data, Ondas trades at approximately $13.83 per share with a market cap of nearly $5.5 billion, reflecting a valuation of about 31 times its projected 2026 revenue of $180 million [7] - The company is projected to experience substantial revenue growth, with estimates for 2026 ranging from $170 million to $180 million, representing a year-over-year growth rate of approximately 260% [42] - Ondas has a backlog of $65.3 million, which has increased by 180% in just two months, indicating a strong conversion of contracts from pilot to production [43] Historical Context - Ondas has evolved through distinct phases: the "Rail Connectivity" era focused on broadband connectivity for industrial assets, and the "Autonomous Expansion" era pivoting towards drone technology [10][14] - The company has made significant acquisitions, including American Robotics and Airobotics, to enhance its capabilities in the autonomous systems market [14][15] Technology and Competitive Advantage - Ondas Networks' core product, the FullMAX software-defined radio platform, complies with the IEEE 802.16t standard, ensuring reliability and performance in rail communications [20][26] - The partnership with Siemens Mobility provides a strategic advantage, allowing Ondas to leverage Siemens' sales force and customer relationships, significantly reducing customer acquisition costs [22][23] Market Potential - The total addressable market (TAM) for Ondas is estimated at 70,000 units, with a focus on transitioning customers to a recurring revenue model through maintenance and licensing [24][30] - The autonomous systems division targets the growing demand for automated security solutions, driven by the need for cost-effective and reliable surveillance [27]

Core Insights - Ondas Inc. is hosting its OAS Investor Day on January 16, 2026, at 10:00 AM ET, where it will present preliminary financial results for 2025 and revenue targets for 2026 [1][4] Financial Performance - For Q4 2025, Ondas expects revenue between $27.0 million and $29.0 million, representing a 51% increase over prior targets [2] - The full-year revenue for 2025 is projected to be between $47.6 million and $49.6 million, which is 23% higher than previous estimates [2] - Ondas' estimated backlog as of December 31, 2025, is $65.3 million, a 180% increase from $23.3 million on November 13, 2025 [3] - The company's pro-forma cash balance exceeds $1.5 billion, adjusted for a recent offering of approximately $1.0 billion [3] - The revenue target for 2026 has been raised to a range of $170 million to $180 million, which is 25% higher than the previous target of $140 million [3] Company Overview - Ondas Inc. is a leading provider of autonomous systems and private wireless solutions, operating through Ondas Autonomous Systems (OAS), Ondas Capital, and Ondas Networks [8] - The company offers a combination of aerial intelligence and next-generation connectivity aimed at enhancing security and operational efficiency across various industries [8] - OAS delivers AI-powered defense and security platforms globally, protecting sensitive sites and critical infrastructure [9]

Core Insights - Ondas Holdings Inc. (ONDS) has experienced a remarkable stock performance with a 597% increase over the past six months, outperforming the Communication-Network software industry and major indices [1][8] - The company's pivot to the drone business, particularly through its Ondas Autonomous Systems (OAS) division, has been a significant driver of this growth [4][8] Company Performance - ONDS stock surged 15% recently, reaching a new 52-week high of $15.07 before closing at $14.01 [1] - OAS revenues reached $10 million in Q3 2025, primarily from deliveries of the Optimus System, Iron Drone Radar, and Apeiro ground robots [8][10] - Operating expenses increased significantly to $18.1 million in Q3 2025, up from $8.7 million in the prior-year quarter, leading to an adjusted EBITDA loss of $8.8 million [10][11] Strategic Developments - The company secured nearly $10 million in new purchase orders for its autonomous systems, indicating strong demand and solidifying its market position [5] - ONDS is pursuing several acquisitions to expand its capabilities in unmanned ground systems, robotics, and fiber optic communications, supported by a robust balance sheet [6] Market Context - The global drone technology market is projected to grow at a CAGR of 14.3% from 2025 to 2030, indicating a rapidly expanding opportunity for ONDS [14] - Competition in the drone industry is intensifying, with rivals like Red Cat Holdings, AeroVironment, and Draganfly also experiencing significant stock gains [14][18] Valuation Concerns - ONDS is trading at a high forward price-to-sales ratio of 35.37X, compared to the industry average of 2.29X, which raises concerns about potential volatility and downside risk [17] - Despite long-term growth catalysts, the current valuation and rising expenses suggest that investors may want to consider taking profits [19]