Ondas Holdings Inc.
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.20%.
Did ONDS Beat Earnings? Q1 2025 Results
Ondas Holdings delivered a mixed first quarter for 2025, missing on both the top and bottom lines even as its autonomous systems business posted explosive growth. Revenue came in at $4.25 million, falling short of the $4.94 million consensus estimate by 13.96%, while the loss per share of $0.15 widened well beyond the $0.09 analysts had expected, a 66.67% miss. The headline revenue figure did represent a 579.7% surge year-over-year, fueled almost entirely by the Ondas Autonomous Systems unit, which contributed $4.00 million as deliveries of Iron Drone and Optimus systems replaced lower-margin service revenue and pushed gross margin to 35%. The deeper net loss, however, reflected $3.87 million in non-cash interest expense tied to convertible note discount amortization, a figure that more than quadrupled from a year earlier. Despite the quarterly shortfalls, management reaffirmed its full-year 2025 revenue target of at least $25.00 million, with OAS expected to generate at least $20.00 million of that total, supported by a $16.80 million backlog and recently announced orders across NATO and homeland security customers.
- Over 500% year-over-year revenue growth driven by OAS deliveries of Iron Drone and Optimus systems
- Initial delivery of Iron Drone and Optimus systems under contracts secured in 2024 and early 2025
- Gross margin improvement to 35% from higher-margin product revenue at OAS
- Operating cash burn reduced with improved revenue and collections
“Ondas is entering 2025 with strong momentum, led by the outstanding performance of our Ondas Autonomous Systems business unit. OAS is executing effectively on existing programs while expanding its reach with new defense and homeland security customers in Europe and other regions. We ended Q1 with over $25 million in cash and are actively fulfilling our $10 million backlog from 2024. In addition, we are seeing strong demand growth, with $9.3 million in new OAS orders, and we believe visibility on a robust pipeline that now totals $16.8 million positions us to meet or exceed our $25 million revenue goal for the year.”
Ondas Holdings CEO, on the earnings call
Forward Guidance & Outlook
Ondas reaffirms its 2025 revenue target of at least $25 million, which would represent nearly 250% year-over-year growth from 2024 and a record year. Growth will be led by OAS, which is expected to generate at least $20 million in revenue. This outlook is supported by $10 million in backlog from 2024 and a conservative view of expected orders given current pipeline visibility. Revenue for Ondas Networks is expected to come primarily from existing and expected development programs and modest system sales due to a lack of firm commitments on rail network buildout timelines. Bookings and revenue are expected to fluctuate quarter-to-quarter given variability around program expansion orders, timing of new OAS customers, and rail network buildout timing.
ONDS YoY Financials
ONDS Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.