Ondas Inc.: Q4 FY2025 earnings call
What management said about Q4 FY2025, from the documents filed with the SEC on 25 March 2026: press release. Guidance figures: 1 new, 1 kept. The quarter’s numbers.
Key takeaways
- Fourth-quarter revenue reached $30.1 million: Q4 2025 revenue was $30.1 million, up 198% sequentially from $10.1 million in Q3 and 629% from Q4 2024.
- Net loss included warrant charge: Q4 net loss was $101.0 million, including an $82.2 million non-cash charge on warrants issued in the October 2025 equity raise, classified as a liability.
- OAS drove nearly all Q4 revenue: OAS revenue was $29.6 million in Q4, up 196% from $10.0 million in Q3, reflecting shipments on Iron Drone and Optimus orders and acquired companies.
- Q4 gross margin rose to 42%: Gross profit was $12.7 million, or 42% of revenue, against 26% in Q3, which management attributed to OAS volume, favorable product mix and fixed-cost coverage.
- Adjusted EBITDA loss rose in Q4: Adjusted EBITDA loss was $9.9 million in Q4 against $8.1 million in Q3; the full-year Adjusted EBITDA loss was $31.3 million.
- Q1 backlog expected to rise: Management expects backlog to increase significantly in Q1 2026, as orders remain high and recently announced acquisitions are included.
- ONBERG European joint venture formed: ONBERG Autonomous Systems formed as a 51%-owned joint venture with Heidelberg to create a Germany-based go-to-market platform for OAS platforms.
- Cash reached $1.55 billion after January raise: Cash, cash equivalents and restricted cash was $594.4 million at December 31, 2025; after about $960 million of net proceeds raised January 9, 2026, cash and equivalents reached $1.55 billion.
“2025 was a defining year for Ondas as we transitioned from a portfolio of advanced technologies into a scaled operating platform”
Eric Brock, Chairman and CEO of Ondas
Guidance
| Area | Period | Figure | Against last quarter |
|---|---|---|---|
| Quarterly revenue | first quarter of 2026 | $38 - $40 million | New |
| Profitability milestones | Q3 2026, 3Q 2027 and Q1 2028 | product level by Q3 2026; OAS level by 3Q 2027; company-wide by Q1 2028 | Kept |
What changed from last quarter
- New guidance: First-quarter 2026 revenue target of $38 - $40 million established.
- New: Oshri Lugassy appointed Co-CEO of Ondas Autonomous Systems.
Results and growth drivers
- Fourth-quarter revenue reached $30.1 million: Q4 2025 revenue was $30.1 million, up 198% sequentially from $10.1 million in Q3 and 629% from Q4 2024.
- Full-year revenue rose to $50.7 million: Full-year 2025 revenue was $50.7 million against $7.2 million in 2024, attributed to adoption of core OAS platforms and companies acquired in the second half.
- Net loss included warrant charge: Q4 net loss was $101.0 million, including an $82.2 million non-cash charge on warrants issued in the October 2025 equity raise, classified as a liability.
- Filing text drawn from March 23 release: The 25 March 2026 filing carries only a cover title; the results detail summarised here comes from the 23 March 2026 release. Source
Segments and regions
- OAS drove nearly all Q4 revenue: OAS revenue was $29.6 million in Q4, up 196% from $10.0 million in Q3, reflecting shipments on Iron Drone and Optimus orders and acquired companies.
- Ondas Networks revenue was $0.5 million: Ondas Networks revenue was $0.5 million in Q4, compared with $0.1 million in the prior quarter.
- Networks deployments in field trials: Management said ongoing field deployments and customer engagement on new, high-value applications are laying groundwork for large-scale rollouts likely beginning in 2027.
“We exited the year with a significantly expanded backlog, reflecting accelerating global demand for our autonomous drone, counter-UAS and robotics solutions”
Oshri Lugassy, Co-CEO of Ondas Autonomous Systems
Costs, margins and pricing
- Q4 gross margin rose to 42%: Gross profit was $12.7 million, or 42% of revenue, against 26% in Q3, which management attributed to OAS volume, favorable product mix and fixed-cost coverage.
- Full-year gross margin reached 40%: Full-year 2025 gross profit was $20.1 million, or 40%, against 5% in 2024.
- Q4 operating expenses rose to $36.1 million: Operating expenses were $36.1 million, against $18.1 million in Q3, reflecting acquired-company costs, personnel and purchased services, and intangible amortization.
- Adjusted EBITDA loss rose in Q4: Adjusted EBITDA loss was $9.9 million in Q4 against $8.1 million in Q3; the full-year Adjusted EBITDA loss was $31.3 million.
Demand and the order book
- Q1 backlog expected to rise: Management expects backlog to increase significantly in Q1 2026, as orders remain high and recently announced acquisitions are included.
- Demand cited for OAS platforms: Management pointed to increasing global demand for its integrated autonomous systems solutions.
- Q1 growth led by OAS: Management said Q1 revenue growth will be led by OAS and supported by year-end backlog.
“We expect to make meaningful progress in 2026 as we expand deployment activity in the 160 MHz spectrum”
Markus Nottelmann, Chief Executive Officer of Ondas Networks
Products and customers
- Amtrak radio deliveries started: Ondas Networks began delivering 220 MHz ACSES radios to Amtrak to support its upgrade to a Positive Train Control system.
- Kestrel purchase order from public safety: Secured purchase order from a major U.S. public safety organization for the Kestrel drone detection and counter-UAS system.
- European airport counter-UAS deployments: Management announced multiple major European airport counter-UAS deployments, combining detection, cyber-takeover and autonomous interception.
- Border protection tender with Airobotics: Airobotics was named prime contractor on a government tender to deploy an autonomous border protection system using drone assets and command-and-control software.
- Railroad dot16 field testing begun: Several railroads, including multiple Class 1s, engaged on dot16 proof-of-concept testing over the 160 MHz network; the first installation was completed in January 2026.
Strategy, acquisitions and investments
- Core + Strategic program acquisitions: Acquisitions announced since July 2025 include Sentrycs, valued at $224.6 million and announced in November 2025.
- ONBERG European joint venture formed: ONBERG Autonomous Systems formed as a 51%-owned joint venture with Heidelberg to create a Germany-based go-to-market platform for OAS platforms.
- $35 million investment in PDW Holdings: The company made a $35 million strategic investment in PDW Holdings, and further investments in World View Enterprises, Rift Dynamics and Firestorm Labs.
- Palantir partnership extends collaboration: Management described the Palantir partnership as extending beyond a traditional collaboration, with access to the full Palantir AIP suite.
Capital and cash position
- Cash reached $1.55 billion after January raise: Cash, cash equivalents and restricted cash was $594.4 million at December 31, 2025; after about $960 million of net proceeds raised January 9, 2026, cash and equivalents reached $1.55 billion.
- 2025 financing totaled $862.7 million: Financing in 2025 was primarily from sales of common stock and warrants, and from exercises of options and warrants.
- Acquisitions and operations absorbed cash: $260.1 million was used for acquisitions, net of cash acquired, and strategic investments, and $38.7 million was used to fund operations in 2025.
People and leadership
- Huston hired as COO and General Counsel: Patrick Huston, retired Brigadier General, was hired as Chief Operating Officer and General Counsel to support growth across business units.
- Advisory board expanded: The advisory board added Major General Yoav Har-Even, former Rafael CEO, and David Chinn, a McKinsey senior partner, among others.
- Corporate development team built: Internal corporate development was built and advanced under Mark Green, supported by technical, industry and financial experts and integration specialists.
Operating platform and manufacturing
- U.S. manufacturing partners engaged: Management engaged Detroit Manufacturing Systems and Kitron to scale NDAA-compliant U.S. manufacturing and supply chain management.
- Investment in operating capabilities: Management said investments in manufacturing, supply chain, field services and go-to-market are enabling industrialization and delivery at scale across regions.
- Acquisition-related legal and diligence costs: Operating expenses included legal and due diligence costs tied to acquisition activity.
Coming up, as management said on 25 March 2026
- Mistral acquisition closing expected Q2: Mistral, valued at $175 million and announced in March 2026, is expected to close in Q2 2026.
- Amtrak radio deliveries continue through Q2: Commercial deliveries of ACSES radios will continue through Q2 2026, and other Northeast Corridor participants are evaluating the radio.
- NGHE specifications due end of 2026: Complete NGHE specifications are expected by the end of 2026, with product rollouts anticipated in 2027.
- Adjusted EBITDA margins to improve: Management expects Adjusted EBITDA margins to improve through the year.
Figures management reported
| Figure | Reported |
|---|---|
| Backlog at end of 2025 | $68.3 million |
Risks management discussed
- Demand: Management said Networks revenue expectations remain modest because customers have not firmly committed to rail network buildout timelines.
- Operational: Networks revenue was unchanged from Q4 2024 as customers extended their network deployment timelines.
- Financial: Management said the warrant liability is subject to material period-to-period changes that do not affect the business or underlying economics of the warrant.
- Financial: Management said operating expenses run ahead of revenue and are necessary to support growth.
Earlier plans management reported on
- Met: Management said Q4 revenue met the high end of its recently pre-announced target range.
- Met: Management said full-year 2025 revenue met the high end of its recently pre-announced target range.
- Not stated: Management said it maintains its product-level, OAS-level and company-wide profitability milestones.
Other quarters
Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.