Ondas (ONDS) Q4 FY25 earnings call: guidance and Q&A

How has the increasing conflict in the Middle East affected business progression, order flow, or interest?

The conflict is driving more activity, demand, RFPs, and urgency. Ondas is seeing strong demand for its proven and deployed ISR and counter-UAS systems, which are critical capabilities in the current operational environment. This is viewed as a long-term dynamic, with increased government and defense budgets expected.

“We believe we have the right products at the right time through our tech companies we are well positioned in both ISR and counter UAS, which are the 2 of the most critical capabilities in today's operational environment.”

asked by Austin Bohlig · answered by Meir Kliner

How will customers procure this ambitious multi-layered ISR capability, and will Ondas participate as a prime or sub to Palantir?

In the near term, contracts are expected for single domains (ISR as a service). The long-term strategy is to contract for multi-domain solutions through single sources, enabled by the Palantir partnership. Palantir provides a portal for customers to access multi-domain ISR as a service, with the Stratollite already operational and demonstrating value.

“The strategy that we have for a service or a system of systems, will ultimately give us the ability to contract for multi-domain with single customers.”

asked by Jonathan Siegmann · answered by Ryan Hartman

Beyond the HERO system, what other products does Mistral produce?

Mistral's offerings extend beyond loitering munitions (HERO systems) to include ISR and ground vehicle products. They have active systems and capabilities in these areas, aligning with Ondas' portfolio companies like UTV and ISR drones and ground units.

“Yes, they have not only loitering munition, also ISR and also ground vehicle, I think that we talked about it before that we used to work in Mistral in our portfolio companies, also in the UTV and ISR drones and ground units.”

asked by Jonathan Siegmann · answered by Meir Kliner

What is the organic growth rate of the acquired businesses, what are the bottlenecks to growth, and how does the 2030 revenue target look given current progress?

The 2030 target of $1.5 billion is very visible and achievable. The core Ondas business (ending 2025 with $90M-$95M pro forma revenue) is expected to double this year, with particular strength in counter-drone systems. There are no unique bottlenecks to the laid-out growth, but continued investment in the OAS platform and manufacturing capacity with partners will be necessary.

“So we are quite confident with the businesses that we've put together here, the momentum we have, the success we think we're demonstrating with the model that, that $1.5 billion target is very visible.”

asked by Timothy Horan · answered by Eric Brock

Will World View operate thousands or tens of thousands of balloons, and can it create a cellular network?

World View provides data and intelligence as a service. Stated demand from the U.S. Air Force and Golden Dome program alone could equate to 450 flights per year. The company believes it will operate thousands of flights per year at scale, with a 50% gross margin per flight. Use cases include oil and gas pipeline monitoring, railway/power line monitoring, and providing unique mesh networking or 4G/5G connectivity.

“So to answer your question specifically, are we talking hundreds, thousands or tens of thousands, I believe that scale, we'll be operating thousands of flights per year and something on the order of 50% gross margin on a per flight basis.”

asked by Timothy Horan · answered by Ryan Hartman

How is Ondas integrating all these acquisitions, and how is management retaining talent?

Ondas has established Post-Merger Integration (PMI) activities at both the OAS and Ondas levels to optimize communications and operating leverage. The company is very happy with talent retention, as acquired companies are excited to join Ondas due to increased opportunities for business growth. Compensation plans and the broader go-to-market model reinforce motivation.

“I think what we see from the companies we acquire is that there's a lot of excitement to join Ondas because we're creating more opportunities for them to really grow the business that they've worked so hard to create.”

asked by Michael Legg · answered by Eric Brock

What is the expected acquisition cadence for this year and going forward, and which capabilities (hardware, software, manufacturing) are highest priority?

Ondas will continue to deepen aerial and ground capabilities, with C2 (command and control) and edge sensors also high priorities in the strategic pipeline. While March saw a bunching of deals, future cadence is uncertain but the company will continue programmatic M&A. Software enablement is becoming increasingly valuable.

“So I think it's pretty straightforward. We're going to continue to deepen the aerial and ground capabilities. You do bring up a good point, the C2, the command and control capabilities is another in sensors at the edge, you also see that in our strategic pipeline.”

asked by Alexander Latimore · answered by Eric Brock