Ondas Holdings Inc. (NASDAQ: ONDS) Q2 2025 Earnings | 07/09/2025

Ondas Holdings Inc. (Ondas) held a Q2 2025 Investor Day focusing on its Ondas Autonomous Systems (OAS) business. Chairman and CEO Eric Brock highlighted the company's transformation from a technology development firm to a growth-stage operator, emphasizing the real-world validation and deployment of their autonomous drone systems.

Key Highlights:

• Financial Performance: Ondas expects to report $6 million in revenue for Q2 2025, a six-fold increase year-over-year. The backlog has significantly grown from $10 million at the end of 2024 to an estimated $22.8 million. Full-year revenue guidance is maintained at $25 million, with at least $20 million from the OAS business. The company has also strengthened its balance sheet, reducing outstanding convertible notes to $5.4 million and boasting a strong liquidity position with over $67 million in cash.

• Core Technologies: OAS's flagship platforms are the Iron Drone Raider and the Optimus system.

  • Iron Drone Raider: A counter-UAS (Unmanned Aerial System) designed for 24/7 protection against intruder drones, using a non-lethal, reusable net capture method. It features the "Iron Drone Deep Stream" AI engine for autonomous detection, tracking, and engagement.

  • Optimus System: Provides autonomous aerial security, inspection, and emergency response, serving as a "drone as first responder" (DFR) in urban environments and for critical infrastructure protection.

• "Physical AI" Full-Stack: Ondas emphasizes its vertically integrated, full-stack approach to autonomous systems, spanning edge devices, multi-sensor fusion (EOIR, RF, micro-radar), embedded AI, and command-and-control infrastructure. This enables autonomous decision-making and real-time mission execution.

• Software Platforms:

  • Insightful: A secure cloud and on-prem data portal for ingesting, organizing, visualizing, and sharing drone-collected data, including 3D models, orthophotos, and real-time video. It functions as a geospatial intelligence platform.

  • Primus: The core command and control (C2) software for managing autonomous flight operations, docking, payload handling, and remote intervention. It's a C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) enabling platform.

• Market Opportunity & Tailwinds: The company is well-positioned to capitalize on significant global trends:

  • Increased Defense Spending: Non-US NATO members are committing to increase defense spending to 5% of GDP by 2035, representing over $700 billion in new annual defense outlays.

  • U.S. Policy Support: Recent executive orders and the "big, beautiful bill" provide regulatory clarity for scaled drone adoption and allocate over $21 billion to programs directly supporting Ondas's business, including $4.2 billion for drones and counter-drone capabilities.

• Operational Scalability: Ondas is focused on building a scalable operating platform across four integrated layers: markets/customers, technology capabilities, operating platform (sales, marketing, supply chain, field services), and financial platform, with localized efforts in major markets like the U.S., Europe, and the Middle East.

• Leadership Team: The presentation introduced key members of the leadership team, including CFO Neil Laird, OAS co-CEO Oshri Legassi, American Robotics CEO Tim Tanney, and VP of Corporate Development Roni Kannelbaum, highlighting their extensive experience in defense, security, and aerospace.

Ondas is confident in its leadership position and significant upside potential, driven by its proven technology, growing customer base, and favorable market conditions.