• Revenue (Q4 2024): $4.1 million, up 173% quarter-over-quarter, down 18% year-over-year.
• Ondas Networks Revenue (Q4 2024): $0.5 million, relatively flat quarter-over-quarter.
• OAS Revenue (Q4 2024): $3.6 million, up 260% quarter-over-quarter, up 10% year-over-year.
• Gross Profit (Q4 2024): $0.9 million, 22% margin.
• Operating Expenses (Q4 2024): $9.4 million, down from $14.4 million year-over-year.
• Operating Loss (Q4 2024): $8.5 million.
• Adjusted EBITDA Loss (Q4 2024): $7 million.
• Full Year 2024 Revenue: $7.2 million, down from $15.7 million in 2023.
• Full Year 2024 Gross Profit: $0.3 million.
• Full Year 2024 Operating Expenses: $35.0 million, down from $46.1 million in 2023.
• Cash on Hand (End of 2024): $30 million.
• Debt Outstanding (End of 2024): $52 million.
• 2025 Revenue Outlook: $25 million, with $20 million from OAS and $5 million from Ondas Networks.

• Warning! GuruFocus has detected 8 Warning Signs with ONDS.

Release Date: March 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Ondas Holdings Inc (NASDAQ:ONDS) anticipates a record year of revenue growth in 2025, driven by its Ondas Autonomous Systems (OAS) unit.
• The company secured two major programs of record with a key military customer in the Middle East, validating its dual-use autonomous drone technology.
• Ondas Holdings Inc (NASDAQ:ONDS) raised $35 million in Q4 2024, strengthening its liquidity position to support its expansion strategy.
• The partnership with Palantir Technologies is expected to enhance operational efficiencies and support the global scaling of Ondas's systems.
• Ondas Holdings Inc (NASDAQ:ONDS) has a $10 million backlog, providing visibility and confidence in achieving at least $20 million in revenues from OAS in 2025.

Negative Points

• Ondas Networks experienced extended timelines related to the 900 megahertz activity, impacting revenue traction.
• The company reported a decrease in full-year 2024 revenues to $7.2 million from $15.7 million in 2023, largely due to operational disruptions.
• Gross profit for the full year 2024 was significantly lower at $0.3 million compared to $6.4 million in 2023.
• Operating expenses remain high, with a reported $35 million for the full year 2024, despite cost-saving measures.
• Ondas Holdings Inc (NASDAQ:ONDS) has $52 million in debt outstanding, with significant portions maturing in 2025, posing potential financial challenges.

Q & A Highlights

Q: Can you provide more color on your visibility into the $20 million revenue target for 2025, including the timing of orders and the mix between Optimus and Iron Drone? A: We expect the $10 million backlog to be realized in the first and second quarters. We are actively engaged with military and public safety customers for new and expanded programs with both Iron Drone and Optimus, particularly in the Middle East and Dubai.

Q: Can you update us on the first responder opportunity in the US market and how changes in drone access are impacting interest in the Optimus platform? A: There is significant interest in Optimus, especially as demand for DFR programs grows rapidly in the US. We conducted a successful pilot program with a major public safety customer, and we are awaiting further developments on commercial orders.

Q: How does the partnership with Palantir work, and why is it considered a partnership rather than just a customer relationship? A: The partnership with Palantir involves integrating their Foundry AI platform to enhance our operational efficiencies and product capabilities. This collaboration is expected to evolve, with Palantir's AI being embedded in our solutions, providing advanced AI-enabled capabilities to our customers.

Q: What is the competitive environment for drone-in-the-box solutions, particularly for Optimus, both domestically and internationally? A: Optimus stands out with its unique capabilities like persistent availability and industrial-grade docking, which are crucial for DFR applications. In the US, competitors include Skydio and DJI, but Optimus's ability to operate in extreme conditions gives it a competitive edge.

Q: Can you discuss the cash position and any potential need for additional capital in 2025? A: We feel confident about our cash position for 2025, with $30 million on hand. As revenue ramps up, we expect operating leverage to reduce cash burn progressively, with sequential growth in revenues and gross profit throughout the year.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.