Ondas (ONDS) Q4 2024 earnings summary

Executive summary

• Achieved major milestones in 2024, including entry into the global defense market, securing significant military contracts in the Middle East, and strengthening leadership with new appointments.

• Ended 2024 with a $10 million backlog and $16.9 million in bookings, positioning for at least $20 million in OAS revenue in 2025.

• Raised $35 million in Q4 2024, supporting liquidity and expansion, and announced a strategic partnership with Palantir to enhance scalability and operational efficiency.

• Launched Iron Drone Raider as a market-defining counter-UAS platform, with global customer engagement and demo teams.

• Enhanced operational efficiencies, supply chain, and field services to support scaling and future growth.

Financial highlights

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

• Q4 gross profit was $0.9M (22% margin), up from $0.1M in Q3, but down from $1.7M (35%) in Q4 2023.

• Q4 operating loss was $8.5M, improved from $12.6M in Q4 2023; net loss for Q4 was $10.3M, improved from $14.1M.

• Full-year 2024 operating expenses were $35M, down from $46.1M in 2023; adjusted EBITDA loss was $28.5M, improved from $29.7M.

• Cash balance at year-end 2024 was $30M, up from $15M in 2023.

Outlook and guidance

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

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

• Backlog and order book support confidence in achieving and potentially exceeding guidance.

• Focus on expanding defense, homeland security, and critical infrastructure markets, leveraging new and existing programs.

• Palantir Foundry partnership to scale OAS operations and supply chain.