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]