Ondas(US:ONDS)2025-11-13 14:30Financial Data and Key Metrics Changes - In Q3 2025, Ondas generated $10.1 million in revenue, a more than six-fold increase year over year, and up nearly 60% sequentially from Q2 [9][21] - The consolidated backlog grew to $23.3 million, more than double from the beginning of the year, and over $40 million when including pending acquisitions [9][21] - The company raised its full-year 2025 revenue target to at least $36 million, expecting to generate more than $15 million in Q4 [9][58] - Cash as of September 30, 2025, was $433.4 million, compared to $30 million a year prior, with shareholders' equity increasing to $487.2 million from $16.6 million [25][26] Business Line Data and Key Metrics Changes - The OAS business unit generated $10 million in revenue, up from $1 million a year ago, driven by deliveries of Iron Drone and Optimus systems [21][35] - Gross profit for Q3 was $2.6 million, representing a 26% gross margin, compared to a gross profit of $0.05 million in Q3 2024 [21] - Operating expenses increased to $18.1 million, primarily due to higher personnel costs related to business growth and strategic initiatives [22] Market Data and Key Metrics Changes - The counter-UAS market is projected to grow from approximately $2.4 billion in 2024 to over $10.5 billion by 2030, representing a 27% compound annual growth rate [52] - Centrix, a recent acquisition, is expected to maintain a triple-digit compound annual growth rate, with bookings projected to triple over the next few years [53] Company Strategy and Development Direction - Ondas is transitioning from technology development to platform adoption, focusing on building durable, efficient, and scaled businesses in the autonomous and unmanned systems market [5][6] - The company launched Ondas Capital to scale combat-proven unmanned technologies from Ukraine and allied nations into production [17][18] - A strategic growth program is in place, with multiple acquisitions enhancing Ondas's capabilities across air, ground, sensing, and communications technologies [15][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning for continued record growth through 2025 and into 2026, supported by a strong balance sheet and market demand [12][58] - The outlook for Q4 and 2026 is primarily driven by OAS, with expectations for significant ongoing growth [10][58] - Management highlighted the importance of low-cost capital as a competitive advantage in scaling operations efficiently [8] Other Important Information - Ondas has raised approximately $855 million since June 2025 to support its growth plan, positioning it with one of the strongest balance sheets in the industry [8][12] - The company is actively pursuing a U.S. DOD or DHS customer in 2025, which would represent a significant milestone [59] Q&A Session Summary Question: What is the outlook for revenue growth in 2026? - Management is targeting at least $110 million in revenue for 2026, which may prove conservative given the expanding customer base and backlog [58] Question: How is the company addressing the competitive landscape in the counter-UAS market? - The integration of Centrix's technology with Ondas's existing systems is expected to create a comprehensive counter-UAS architecture, enhancing the company's market position [46][52] Question: What are the key drivers for the growth in the OAS business unit? - The growth is driven by expanding customer relationships, a robust pipeline, and successful execution of strategic acquisitions [10][36]