Ondas (ONDS) Q4 2024 earnings summary

Executive summary

• 2024 marked a pivotal year with major milestones, including entry into the global defense market, securing significant military contracts in the Middle East, and establishing a $10 million backlog, positioning for at least $20 million in OAS revenue in 2025.

• Raised $35 million in Q4 2024, strengthening liquidity and supporting expected revenue growth to $25 million in 2025.

• Announced a strategic partnership with Palantir to leverage AI for operational efficiency, scalability, and product development.

• Leadership changes included new Co-CEO at OAS and CEO at Ondas Networks.

Financial highlights

• FY 2024 revenue was $7.2 million, down from $15.7 million in 2023; Q4 2024 revenue was $4.1 million, up 173% sequentially but down 18% year-over-year.

• Q4 gross profit was $0.9 million (22% margin), up from Q3 but down from Q4 2023; full-year gross profit was $0.3 million, down from $6.4 million in 2023.

• Q4 operating loss was $8.5 million, improved from $12.6 million in Q4 2023; full-year net loss narrowed to $38.0 million from $44.8 million.

• Adjusted EBITDA loss for FY 2024 was $28.5 million, a modest improvement year-over-year.

• Cash at year-end was $30 million, up from $15 million, with $50.2 million in new financing in 2024.

Outlook and guidance

• 2025 revenue guidance is $25 million, with OAS expected to contribute at least $20 million and Ondas Networks $5 million.

• Gross margins are expected to recover to 40% in early 2025, potentially reaching 50%+ in the second half.

• Focus on scaling Optimus and Iron Drone programs, expanding into new defense and public safety customers, and leveraging Palantir partnership for operational efficiency.