Ondas Holdings Inc Aktie

Welcome to the Ondas Inc. First Quarter 2026 Earnings and Business Update Conference Call. [Operator Instructions] Before we begin, the company would like to remind you that this call may contain forward-looking statements. While these forward-looking statements reflect Ondas' best current judgment, they are subject to risks and uncertainties that can cause actual results to differ materially from those implied by these forward-looking statements. These risks are discussed in Ondas' periodic SEC filings and in the earnings press release issued today, which are both available on the company's website.

Ondas undertakes no obligation to revise or update any forward-looking statements to reflect future events or circumstances, except as required by law. During this call, Ondas will refer to certain non-GAAP financial measures. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures as shown in our press release issued today, which is available at the Investor Relations section of our website. This non-GAAP information is provided as a supplement, not as a substitute for or superior to, measures of financial performance prepared in accordance with GAAP. However, management believes these non-GAAP measures provide investors with valuable information on the underlying trends of our business. Please note this event is being recorded.

I would now like to turn the presentation over to Eric Brock, Chairman and CEO. Please go ahead, sir.

Thank you, operator, and good morning, everyone. We appreciate you joining us today and your continued interest in Ondas. Before we begin, I want to thank [ Think Reel ] for allowing us to share his Systems of Systems music video ahead of the formal program. He is an Ondas investor and a talented creator active on X. We are grateful for his support, appreciate his creativity and look forward to seeing more of his work.

With that, let me set the stage for today's discussion. Our plan is working. Over the past year, we laid out a Core + Strategic Growth strategy to build Ondas into a scaled global operating platform for unmanned and autonomous systems, serving defense, security, industrial and critical infrastructure markets. We believe our results in today's update increasingly validate that strategy. We are building a world-class Systems of Systems portfolio across air, ground and now the Stratosphere.

Through internal innovation, disciplined execution and strategic acquisitions, we continue to add differentiated capabilities across multiple operational layers. At the same time, we are executing against our operating plan and capturing growth synergies across the Ondas platform. We are leveraging shared customer relationships, expanding go-to-market reach and building a broader global footprint to scale efficiently. We are also expanding our global market opportunity as reflected in growing customer traction, strategic partnerships, major program opportunities and a larger backlog.

All of this continues to support what we believe is a powerful financial model driven by strong market tailwinds, operating leverage, scalable infrastructure and attractive long-term returns on capital. We believe the strategy is sound, execution is improving quarter-by-quarter, and the market is increasingly recognizing the value of what we are building, as shown by growing support from customers, strategic partners and institutional investors. Today, we look forward to updating you on our progress and explaining why we remain highly optimistic about Ondas' future.

Let's turn to today's agenda. This morning, we will outline how the business is scaling across our technology portfolio, operating platform, go-to-market capabilities and financial model. I'll begin with key first quarter 2026 highlights and our progress against our strategic objectives. Neil will then review our Q1 financial results. Next, we will provide an operational update on customer momentum, global expansion and progress across our product, solutions and go-to-market road maps. We will also take a closer look at World View our multi-domain ISR road map and our work with Palantir to advance mission autonomy and layered ISR capabilities for defense and security customers. We'll close with an updated 2026 outlook and then open the call for questions.

I'm also pleased to be joined this morning by key members of our leadership team. Joining me today are Neil Laird, our Chief Financial Officer; Oshri Lugassy, Co-CEO of Ondas Autonomous Systems; and Meir Kliner, President of OAS, all of whom are well known to many of our investors and stakeholders. We are also joined by Ryan Hartman, President and CEO of World View who will provide additional insight into our multi-domain ISR capabilities and long-term strategic road map.

Neil and I will lead today's presentation and we'll aim to be efficient with your time while providing meaningful detail on the progress we are making across the business. Oshri will provide the operational update for OAS.

Let's now turn to some of the key takeaways from the start of 2026. We began the year with tremendous momentum, which we have sustained. I'm extremely proud of our performance and want to recognize our employees, partners and customers for their exceptional efforts and support. We believe we have built a highly talented and mission-driven organization at Ondas and that team is executing at a very high level.

In the first quarter, we generated more than $50.1 million in revenue, representing tenfold growth year-over-year and over 25% above the high end of our prior target. To put that into perspective, our Q1 revenue alone was approximately equal to all of the revenue Ondas generated during full year 2025. We believe that clearly demonstrates the pace at which we are scaling the business and expanding our financial model.

Revenue growth during the quarter was driven by strong performance across our counter-drone and defense-related markets, with particularly strong contributions from our Cyber-over-RF platform and our Iron Drone interceptor systems. We also saw upside contribution from BIRD Aerosystems, where demand for airborne missile defense and protection systems continues to strengthen as threats to both military and commercial aircraft increasingly evolve.

Importantly, we achieved product company level EBITDA profitability during the first quarter, approximately 2 quarters ahead of our internal plan. We believe this is another important validation point for the operating and financial model we have been building. At the same time, it is important to recognize that we continue to make substantial investments across the organization, including leadership expansion, operational infrastructure, global go-to-market capabilities and strategic growth initiatives designed to support the next phase of scale.

So while we are pleased to reach this milestone ahead of schedule, we also believe there remains significant operating leverage ahead of us as the platform continues to mature. As Neil will discuss in greater detail, our strengthening financial profile is also reflected in the continued expansion of our backlog and the strength of our balance sheet.

Following the closing of the World View and Mistral acquisitions in April, backlog increased to more than $450 million, providing significant visibility into our 2026 outlook and beyond. Our focus now is on efficiently converting that backlog into customer deliveries, revenue growth and cash flow generation. Our balance sheet also remains a major strategic advantage.

With approximately $1.4 billion in cash and short-term investments, we have substantial financial flexibility to continue investing in the business, supporting organic growth initiatives and advancing our strategic growth program. We believe that capital position gives Ondas a meaningful competitive advantage as we continue to scale the platform and pursue additional accretive opportunities. Finally, based on the strength we are seeing across the business, we are pleased to raise our full year 2026 revenue outlook to at least $390 million.

In summary, 2026 is off to a terrific start and we are demonstrating our ability to execute against our long-term objectives and financial model, which we believe is allowing us to create substantial shareholder value. Over the past year, Ondas has transformed from a small unmanned systems developer into a growing global enterprise with increasing operational scale across markets and geographies.

As shown on this slide, we now operate across 15 offices in key regions supporting engineering, manufacturing, business development, customer operations and field support worldwide. Our customer footprint is also expanding with active deployments in more than 45 countries across defense, homeland security, critical infrastructure and public safety markets. This expansion is not just geographic. It reflects the build-out of a scalable operating platform for large customers, complex deployments and long-term strategic programs worldwide. Ondas now has more than 1,000 employees globally, supporting operations, engineering, manufacturing, integration and customer delivery, positioning us to meet growing demand and keep scaling.

In unmanned and autonomous systems, leadership requires more than strong technology. It requires an integrated operating platform that can deliver mission-critical systems at scale across engineering, manufacturing, deployment, training and global support. That is what we are building at Ondas, by expanding not only our technology base, but also our operations and go-to-market capabilities. In recent months, we have significantly expanded our U.S. market reach, production infrastructure and strategic ecosystem through the April acquisitions of World View and Mistral. We believe both businesses filled key strategic gaps and accelerate the scaling of our platform, while adding differentiated technology, customer relationships, leadership, engineering talent, and operational capabilities to support growth in 2026 and beyond.

We also announced a strategic partnership with Palantir, which we see as strong validation of Ondas' capabilities and growth strategy. The partnership gives us access to Palantir's AIP stack and operational software, helping us scale internally while advancing mission autonomy and multi-domain ISR solutions. It also aligns both companies on customer opportunities, go-to-market initiatives and long-term road map development.

During the quarter, we also launched ONBERG, our Germany-based joint venture with Heidelberg, initially focused on Germany and Ukraine with broader European expansion over time. As defense and security markets increasingly require localized manufacturing, sovereign alignment and regional operating capabilities, we believe ONBERG strengthens our position in the European defense modernization cycle and across EU and NATO markets. As our global operating platform grows, so do our customer reach, talent base and ability to deliver integrated Systems of Systems solutions at scale.

In the last 12 months, Ondas has significantly expanded its opportunity set and addressable and obtainable markets. We are now positioned across 4 major defense technology verticals, including Counter-UAS and Aerial Security, ISR and Surveillance systems, Loitering Munitions and Autonomous Strike systems and Unmanned Ground Robotics. Within our Aerial Security and Counter-UAS vertical, our portfolio now includes the Sentrycs Cyber-over-RF platform, the Iron Drone Raider interception system, [ InSightSense EOIR ] sensing technologies and BIRD Aerosystems Airborne Missile Defense and Protection systems.

Our ISR portfolio includes World View Stratollites, the Optimus Autonomous Drone platform and Rotron UAV systems, providing capabilities spanning tactical to high altitude persistent intelligence and surveillance operations. In Loitering Munitions and Autonomous Strike systems, we now include the Rotron's SkyLance and Defender platforms, the Rift Dynamics WASP system and related border security and autonomous response infrastructure capabilities. Of course, Mistral is additive here with a broad lineup of both ISR and strike capabilities being deployed with U.S. defense customers.

In ground robotics, our portfolio includes Roboteam and Apeiro Motion UGV platforms, INDO Earth's Heavy Military Engineering and Support capabilities and 4M's de-mining and land intelligence operations. These markets are huge and global and rapidly growing, and Ondas is building a very impressive set of capabilities to deliver effective and mission-ready capabilities, satisfying our customer road maps.

What is important here is not simply the expansion of the portfolio itself, but the evolution of Ondas into a broader multi-domain autonomous systems platform. We will be introducing new Systems of Systems capabilities over the course of 2026. This includes our newly introduced IRON-WAVE platform, which I will highlight in just a moment.

As I mentioned, we are increasingly integrating our technologies into Systems of Systems deployments aimed at some of the fastest-growing segments of the global defense and security market. This includes a range of new platforms that connect aerial and ground domains with integrated sensors and AI-enabled command and control capabilities. We have a number of these platforms underway, and we will share updates as development progresses through 2026.

One example is IRON-WAVE, a newly introduced Systems of Systems platform featured in this video. IRON-WAVE is a combat-proven multilayered robotic solution built around a mobile UGV platform that integrates multiple autonomous systems to support maneuvering forces in complex operational environments. It includes a mobile containerized unit for remote operations, enabling rapid deployment and sustained frontline support while bringing multiple Ondas technologies together in a unified operational system. The platform provides both aerial defense and offensive support, combining CUAS detection and neutralization against multiple drone threats with both ground and aerial assault effectors.

IRON-WAVE is powered by an AI-assisted mobile command and control center with secure communications, onboard power and advanced operational management software for coordinated multi-domain missions. The UGV can also deploy smaller robotic systems to investigate confined spaces in complex environments more safely for reconnaissance and operational control. Ondas provided the initial IRON-WAVE systems to combat units during the first quarter, and they are now operational with multiple military units in active combat environments. The system has received strong feedback for improving mission effectiveness, enhancing force protection and helping protect troops during combat operations. We are very happy with this introduction and think IRON-WAVE and our Systems of Systems pipeline is both differentiating Ondas and expanding our addressable markets.

That concludes our introductory comments. I will now hand the call to Neil to provide a detailed financial update.

Thank you, Eric. We are pleased to report strong first quarter 2026 results that mark an inflection point in the growth of the business, both organically and through our strategic growth program. These results validate our strategy, demonstrate the strength of our core business and highlight the scalability of our operating model as we prepare for a significantly larger phase of growth.

Revenue in the first quarter was $50.1 million, a tenfold increase year-over-year and up 66% sequentially from the fourth quarter 2025. This performance was 25% above the high end of our prior Q1 targets and reflects strong demand across our Ondas Autonomous Systems segment. Gross profit was $24.7 million, representing a 49% gross margin, a significant improvement from 35% in the prior year and 42% in the fourth quarter 2025. This reflects both favorable product mix and the benefits of scaling revenue across our cost base.

Operating expenses increased to $67.3 million, driven primarily by investments in personnel and infrastructure to support the scaling of our operating platform as well as increased activity related to our acquisition program. We view these investments as both intentional and necessary to support the significant revenue growth we expect in 2026 and beyond. Let me briefly address the movement in other expenses during the quarter, which was primarily driven by noncash accounting items.

As a result of the structure of the October 2025 and January 2026 financings, certain warrants are required to be classified as a liability and a mark-to-market each reporting period using a Black-Scholes valuation methodology. In the first quarter, this resulted in a noncash gain of approximately $389.5 million, which is reflected in other income. As a reminder, this charge is purely accounting-driven and does not impact our cash position, operations or the underlying economics of the business. We expect this line item will continue to result in variability in our reported earnings going forward.

We also had several other noncash items, including a $51.5 million accounting gain on the deconsolidation of Ondas Networks due to the capital restructuring of that company in January of 2026. Other key items to note in other income include $12 million in interest generated primarily by interest earned on our cash balances following our recent capital raises and a $46.2 million noncash charge to adjust the value of an acquired variable interest entity. We believe it is important for investors to focus on the underlying operating performance of the business, where we are seeing strong revenue growth, significant backlog expansion and continued execution of our strategic plan.

Cash operating expenses were $36.9 million. A summary of cash operating expenses was included as a table in our earnings release and as an appendix to this presentation. Net income for the quarter was $362.9 million, driven by the $389.5 million noncash gain related to warrants discussed above. Adjusted EBITDA was a loss of $10.9 million compared to a loss of $7.5 million in the prior year.

Overall, the financial results reflect a business that is scaling rapidly, investing ahead of growth and beginning to demonstrate the operating leverage embedded in our model. This level of growth reflects the high demand signal from customers, strong execution in our core business and the early impact of our strategic growth program.

Now turning to our cash flow and capital position. We ended the first quarter with $1.48 billion in cash, cash equivalents, restricted cash and short-term investments compared to $616.1 million at the end of 2025. In addition, the company holds long-term investments of $42.3 million, up from $35.6 million at the end of 2025. We believe this large cash balance provides us with significant financial flexibility to execute our growth strategy.

Cash used in operating activities for the first quarter was $51.3 million compared to $6.7 million in the first quarter 2025. This includes approximately a $47 million increase in working capital to support expected revenue growth. Cash used in investing activities was $474.2 million, the majority of which approximately $429.1 million was for the purchase of short-term investments net of maturities and another $31.8 million deployed into acquisitions as part of our strategic growth program.

In addition, we invested $5 million in the quarter in long-term equity investments. Our short- and long-term investments are aligned with our broader platform strategy. They support key partners, enhance access to critical technologies, improve supply chain efficiency, and we believe will generate attractive returns over time. Cash provided by financing activities was $968.5 million, primarily from our January equity offering throughout the year, along with proceeds from warrant and option exercises.

Looking ahead, we expect cash efficiency to improve over the course of 2026 as revenue and gross profit scale. We continue to expect higher cash usage in the upcoming quarter, reflecting continued investment ahead of growth. In particular, the second quarter will have a step-up in spending related to the acquisitions that occurred year-to-date, many of which only closed late in Q1 or early in Q2. As we move through the second half, we expect to see meaningful improvement in adjusted EBITDA losses driven by operating leverage, particularly within our OAS segment.

Turning to the balance sheet. We believe Ondas now has one of the strongest balance sheets in the sector, and this is a key competitive advantage as we scale the business. We ended the quarter with $1.48 billion in cash, cash equivalents, restricted cash and short-term investments. This provides us with significant financial capacity to execute on both our organic growth and strategic initiatives. At the same time, the company carries virtually no debt. The previously discussed warrant liability was recorded at $1.1 billion at quarter end. And again, we expect our warrant liability will continue to result in variability in our reported earnings going forward.

Quarterly changes in this measure will result in noncash impacts on our GAAP net income. As a result of all the factors discussed, our shareholders' equity has increased to approximately $1.078 billion compared to $441.8 million at the end of 2025. So overall, we've significantly improved both the scale and the quality of the balance sheet, positioning the company with financial flexibility and cost of capital advantage to support our growth strategy. With that, I'll turn the call back over to Eric.

Thank you, Neil. As we execute our Core + Strategic Growth Program, we are seeing our financial model scale very quickly. As the P&L matures, it's important for Onda' to be transparent and communicative about how we are prioritizing our OpEx investments. I choose the phrase OpEx investments very carefully because that is exactly the way we look at our OAS and Ondas Inc. level growth OpEx. These are investments designed to support a much larger enterprise.

The build-out of our OAS leadership team and growth infrastructure and the similar investment in the corporate development effort at Ondas Inc., the parent company serves to dramatically increase the scope of our business and position Ondas in leadership positions in large, rapidly growing markets. Of course, this means we can create a much larger business today and allow us to access growth tailwinds across the unmanned and autonomous systems sector globally. To provide insight into core profitability and our discretionary OpEx growth investments, we have provided the analysis here.

You can see the Ondas Inc. level OpEx, which includes traditional public company costs as well as the investments we make in corporate development and Ondas Capital. At the OAS level, we highlight product company OpEx along with the OAS leadership and infrastructure layer, which drives the global market penetration and efficient delivery of technology and services via marketing, supply chain and production and field support and services. Our commitment to you is to continue to manage these OpEx investments aggressively and focus on maximizing our ability to capture strong market positions in the segments we compete and to drive operating scale and efficiently maximize our returns on investment and profitability.

I will now turn the call to Oshri, who will provide a more detailed look at the progress we made in Q1, emphasizing how we have captured business, grown our customer and program pipeline and matured our operating footprint. Oshri?

Thank you, Eric. We have had a strong start to 2026 from a program and order capture, and we will share these details with our investors over the next few slides, starting with an emphasis on our global sales and marketing operations.

As Ondas continues to scale globally, we are significantly expanding our marketing, business development and operational infrastructure across key international markets. Today, Ondas is building a growing global presence with offices, local partners, agents and operational representatives across more than 45 countries worldwide. Of course, the addition of Mistral and World View, along with our ONBERG joint venture in Germany are very important examples of this.

Our expanding infrastructure enables us to support customers more effectively, accelerate market penetration and establish stronger relationships with defense organizations, homeland security agencies, system integrators and strategic industrial partners. Our strategy is focused on building localized market access while leveraging Ondas' integrated global operating platform. This approach allows us to accelerate deployments, support regional operational requirements and pursue larger strategic programs across multiple domains and geographies.

We believe this growing international presence is becoming a significant competitive advantage as demand for autonomous defense and security technologies continues to expand globally. This quarter demonstrates the strength of Ondas' integrated operating platform and our ability to accelerate growth across the technologies within the group. As we outlined in our last call, our operating model is structured to plug in operational and mission-ready technologies for rapid mobilization and order capture. We are demonstrating that acquired companies grow faster as part of Ondas post-acquisition, which is a powerful source of accretion in the Ondas growth model. We are now able to demonstrate evidence of this value creation with hard data.

During Q1, Airobotics delivered approximately 260% year-over-year revenue growth driven by expanded Iron Drone and Optimus deliveries and our new border infrastructure program. And Sentrycs had a very strong start to 2026, capturing $36 million in orders through April 1. That was more than the $30 million in revenue that Sentrycs generated in all of 2025. We will continue to invest in Sentrycs Cyber-over-RF solutions to capture the substantial C-UAS market opportunities in front of us.

Lastly, I will highlight 4M Defense, which after generating just $8 million in revenue in 2025, captured $80 million in tender awards with $25.8 million of initial orders against those tenders. With Ondas, 4M is able to invest in its operating footprint, which is driving the market expansion we see for their intelligent demining solutions. The key takeaway here is that Ondas operating platform enables cross-selling, integrated program capture, supply chain leverage and faster market expansion across defense, homeland security, and critical infrastructure markets. The data here is early evidence that Ondas Core + Strategic Growth Program is working to compound shareholder value creation.

We have had a strong start to 2026 from a program and order capture standpoint, which I will share some details on, starting with backlog. Our growing backlog of approximately $457 million reflects the increasing global demand for Ondas technologies across multiple operational domains and strategic regions. What is especially important is the diversification of this backlog across several key technology segments demonstrating the strength of our integrated defense tech strategy and the expanding relevance of our platforms to modern defense and security requirements.

In aerial security, we are seeing strong momentum driven by airport protection programs, critical infrastructure security and emerging anti-missile initiatives. These opportunities are increasingly focused on integrated multilayered defense architectures, combining sensors, AI, autonomous platforms and defectors. Within ISR, our backlog growth is being driven by military base protection, public safety deployments and high altitude and stratospheric intelligence solutions. We continue to see growing demand for persistent autonomous intelligence and surveillance capabilities across both defense and homeland security markets.

In the UGV segment, we are advancing opportunities around smart demining, engineering vehicles and multi-robotic operational systems. As we discussed earlier with IRON-WAVE, militaries are increasingly looking for integrated robotic solutions capable of operating in complex frontline environments. In the LMS segment, backlog growth is supported by border security, drone programs and advanced autonomous mission systems, including opportunities connected to programs such as LASSO. Geographically, the backlog is supported by strong expansion in the United States, the Middle East and additional international markets across Europe and Asia.

We believe this regional diversification positions Ondas well to continue scaling globally while supporting long-term strategic growth across our core technology segments. Ondas has won and positioned itself within several key strategic programs, representing a combined program potential of more than $1.6 billion. Here, we highlight some of the notable program wins we are delivering against. These programs position Ondas for continued expansion across defense, homeland security, border security, and autonomous warfare markets worldwide with significant long-term growth potential across multiple operational domains.

These programs demonstrate our ability to compete for and support large-scale defense and homeland security initiatives requiring advanced autonomous technologies, robotics, ISR and strike capabilities. In the UGV domain, we are supporting opportunities related to smart demining and engineering vehicle programs, including border security barrier projects and military engineering platforms. These programs represent growing demand for autonomous robotic systems capable of operating in high-risk and contested environments while improving force protection and operational efficiency.

Within the LMS segment, we are advancing several major autonomous drone and strike infrastructure opportunities. This includes participation in the U.S. [ LASSO ] program focused on low altitude stalking and strike ordinance capabilities, where the total program potential is estimated at nearly $1 billion. We are also pursuing border protection initiatives, leveraging autonomous drone swarm infrastructure and long-range autonomous strike platform opportunities connected to NATO Eastern flank defense requirements.

These programs reflect the increasing global demand for scalable autonomous systems capable of persistent surveillance, coordinated operations and long-range mission execution. Looking ahead, Ondas is continuing to build a strong global pipeline of strategic programs and tenders across multiple operational domains. Today, our active pipeline represents approximately $4.3 billion in opportunities across more than 45 submissions globally, reflecting the increasing demand for autonomous defense, security, ISR and robotic technologies. We believe this pipeline positions Ondas for significant long-term expansion over the coming years.

Regionally, the United States and Europe represent the largest portions of the pipeline with approximately $1.8 billion and more than $2 billion in active opportunities, respectively. We are also advancing multiple strategic programs in Israel and additional international markets. Overall, we believe this pipeline reflects the growing relevance of Ondas' technologies across modern defense and homeland security markets while demonstrating our ability to compete for large-scale global programs across multiple operational domains, and we are working hard to maximize our win rate. I will now turn the call back to Eric.

Thank you, Oshri. Let me now turn to World View and our broader multi-domain ISR strategy. As you know, we introduced World View on our last conference call and completed the acquisition on April 1. Combined with Mistral, these acquisitions have significantly expanded our U.S. market presence and strengthened our operational and commercial scale across defense, homeland security, public safety and critical infrastructure markets. Importantly, World View has accelerated our multi-domain ISR road map, particularly in combination with our strategic partnership with Palantir. I'd now like to hand the call over to Ryan Hartman, who will discuss our ISR strategy, the World View platform and how Adaptive Agentic AI and mission autonomy are shaping the next phase of the Ondas platform. Ryan?

Thank you, Eric. As technology and use cases mature, we have seen the stratosphere has quickly evolved from interesting to required in modern ISR planning, especially when customers are building integrated multi-domain concepts. World View is seeing that shift show up as pull, not push. In practical terms, recent mission performance is converting into real account expansion and a higher volume of active RFPs and late-stage contracting conversations.

The Department of War is the hardest customer set to break into for a reason. The bar is operational credibility, endurance, reliability and mission integration. This is exactly the bar we designed Stratollites to clear, and we are now clearing it in ways customers can validate. Two examples. First, UNITAS in fall 2025. We demonstrated a stratosphere of persistence in a maritime operating context for Smartronix and 4th Fleet under the Marlins contract. The result is ongoing engagement tied to potential follow-on support for hybrid autonomous U.S. maritime efforts against narcotics trafficking and illegal fishing.

That matters because success in that problem set tends to become programmatic and durable. Second, Dorado in spring 2026. A 39-day mission in the Atlantic moved quickly from prove it to contract it. That performance has directly translated into advanced contracting discussions and several active RFPs for World View to be a long-term high altitude balloon provider for SATCOM and CENTCOM AORs. World View has also been down selected by both U.S. and international defense ministries for advanced sensor development and flight testing for missile defense applications.

Beyond these initial programs, we're seeing the opportunity set broaden significantly. Interest and meaningful engagement in stratospheric ISR has been growing throughout the Department of War across all key combatant commands and military branches alongside increasing engagement for major defense primes as they've designed integrated multi-domain solutions. In parallel, allied foreign Ministries of Defense across Australia, Canada, Mexico, Peru, Ecuador, Guatemala, Saudi Arabia, Indonesia and others are actively exploring how Stratollites can provide persistent advantage.

These opportunities are concentrating around contested maritime environments such as the Gulf of America, the Eastern Pacific and the INDOPACOM region as well as global hot zones like the Middle East. Collectively, this reflects a growing recognition that stratospheric persistence is becoming a foundational layer in modern defense architectures. As customers seek a unified intelligence ecosystem, the stratospheric layer is increasingly being specified as part of that design.

Now I want to build on what Eric framed and give investors a precise understanding of why SkyWeaver is a portfolio level asset, not a platform-specific one. That comes down to a critical distinction, platform autonomy versus mission autonomy. Platform autonomy lives at the vehicle level. It's about flying itself, managing faults and staying on station without a pilot. That work is essential, but it's table stakes. It's fundamentally a cost and reliability story and every serious defense platform is pursuing it.

Mission autonomy lives at the intelligence layer. It's the ability to perceive the operational environment, reason over what matters, coordinate action across platforms and deliver finished intelligence without waiting for a human to close every loop. That's not a cost story. That's a strategic outcome story, and it's what customers are demanding. The key insight is this. Platform autonomy is locked to the platform. Mission autonomy is not. It lives in software. And because it lives in software, it can run across every platform in the Ondas portfolio. That is the architectural significance of SkyWeaver.

SkyWeaver is Palantir's artificial intelligence platform deployed at the edge as an intelligence operating layer. It sits above our stratospheric platforms, our aerial systems and our ground systems, ingesting what they observe, reasoning over it in real time and coordinating action across the fleet. Consider the breadth of that fleet. Ondas operates stratospheric balloon platforms through World View. We operate fixed wing and rotary unmanned aerial systems through Ondas autonomous systems. We operate ground-based counter-UAS and surveillance systems. Each of these platforms collects data in a different domain at different altitudes with different sensor modalities.

Without SkyWeaver, each of those platforms produces a data stream that requires a human analyst to synthesize, interpret and act on. With SkyWeaver, those data streams are fused automatically. The system reasons across domains simultaneously. A stratospheric platform identifies an area of interest. SkyWeaver tasks the UAS for a closer look without waiting for a ground operator to make that connection. The UAS data refines the picture. SkyWeaver updates the intelligence product and delivers it to the customer's Palantir Foundry environment already correlated and contextualized.

This is the difference between a portfolio of platforms and an integrated intelligence system. SkyWeaver is what makes Ondas the latter. What differentiates SkyWeaver is Adaptive Agentic AI. The term agentic AI is in wide use right now. So let me be specific about what it means in our context. This is not a system that generates an answer and stops. Agentic models and our architecture run continuously and operate on 5 principles. They perceive, reason, plan, act and adapt. It uses real tools, it takes real actions, it does not wait to be prompted.

Let me explain these 5 principles. First, perceive. SkyWeaver ingests sensor data continuously from every connected platform across all domains simultaneously. Stratospheric long dwell collection, aerial close look, ground-based perimeter monitoring, it holds all of that in one common operational picture.

Next, reason. Palantir's AI models evaluate what is observed against mission parameters, known patterns of life and threat indicators. They score significance across the full multi-domain picture, not just what any signal platform can see.

Next plan. The system autonomously optimizes collection strategy across the fleet. Which platforms reposition, which sensors should retask, which domain requires increased coverage. These decisions are made against the mission objective, not against platform health alone.

Next is ACT. SkyWeaver executes cross-platform tasking, generates geospatial intelligence products, triggers alerts and populates the customer's Palantir Foundry environment with finished correlated intelligence ready for analyst consumption.

Last is adapt. When the environment shifts, when a platform goes offline, when a new area of interest emerges, SkyWeaver reoptimizes across the remaining fleet in real time without requiring operator intervention. This is the capability that matters most when communications are degraded and human reaction time is too slow. Defense and intelligence customers execute every ISR platform using the TCPED cycle: tasking, collecting, processing, exploiting and disseminating. The question they are always asking is how much of that cycle requires human labor and how fast can it execute under operational stress.

Legacy ISR architectures automate collection and stop there. Everything downstream of collection still requires human operators pulling data to the ground, running it through exploitation tools and manually producing finished products for analysts. This is a slow, people-intensive process. It is the exact latency that adversaries are designed to exploit. SkyWeaver automates the full TCPED chain across the Ondas fleet: tasking, collection, processing, exploitation and dissemination, all run through a shared intelligence layer.

Instead of raw feeds and delayed analysis, customers receive correlated decision-ready intelligence, always multi-domain and always current. No single platform ISR provider can offer that. This is the structural advantage of having an AI intelligence layer that spans the portfolio. The commercial implications of this architecture are significant, and I want to be direct about them. First, SkyWeaver changes how we price. Platform autonomy is priced on hardware and flight hours. Mission autonomy is priced on intelligence outcomes delivered. That shift from a hardware and services model to an outcomes and software model compresses the cost curve while expanding revenue per mission significantly.

Second, SkyWeaver scales with the portfolio. Every new platform Ondas brings to the market is a new node in the intelligence network. The value of the network grows with each addition. This is a compounding dynamic that a single platform competitor cannot replicate. Third, SkyWeaver creates switching costs. Once a customer's operational architecture is built around Palantir Foundry and led by SkyWeaver-enabled Ondas platforms, the intelligence products, the workflows and the analytical infrastructure are all integrated. This is not a program. This is an operational dependency.

SkyWeaver is the reason our platforms become more valuable together than they are separately and more valuable to the customer over time as the fleet grows. Initial integrations across the Ondas portfolio are targeted for the fourth quarter of 2026. We are on plan, and we expect to share program-specific milestones as we progress.

The fastest way to build a defensible advantage in this market is execution velocity, and the Palantir partnership is increasing our speed on multiple fronts at the same time. First, we are building a suite of AIP applications that connect how we plan missions, manage programs and operate fleets. The work is already improving operating cadence because teams are moving through shared auditable workflows instead of stitching together disconnected tools.

Just as important, through our deployment of Warp Speed, we are enhancing efficiencies and scalability across critical operations, which will ultimately be deployed across Ondas. These AIP applications developed via Warp Speed will also enable us to integrate acquired companies faster. With Palantir, we have built agents that integrate ERPs, MRPs, engineering workflows and financial workflows. This means within days of closing an acquisition, we can deploy agents and start realizing efficiencies and synergies within weeks.

Second, we are pairing build with capture. We are coordinating joint customer engagement and program pursuits, so the platform story shows up consistently in how we qualify opportunities, share requirements and compete. That matters because integrated ISR programs are won as architectures and operating concepts, not as one-off payload demonstrations.

Third, we are coordinating strategic growth. The partnership is helping us define repeatable integration patterns that make future acquisitions easier to absorb into a common operating layer faster and at lower friction. The important point is the time line. We only started working with Palantir in January, and we have already moved from road map to deployed capability in a matter of weeks. Each release improves internal efficiency, strengthens our data foundation and accelerates the next release. That compounding cycle creates a moat. It is difficult to replicate quickly because it combines software, workflows and operational learning, all tied into real missions and real customer needs.

Eric, I'll hand it back to you. Thank you.

Thank you, Ryan, for providing the deep insight into our software and AI development. As Ryan outlined, Adaptive Agentic AI will be a force multiplier to transform autonomous ISR platforms into autonomous intelligence systems with massive benefits to efficient decision-making and superior outcomes. I am happy Ryan was able to share this update and encourage our investors to watch where we take this capability going forward.

Let's now turn to our outlook for the balance of 2026. I will start with providing an update on our strategic growth program. We will touch on our capital allocation priorities and then provide an updated outlook for our P&L targets. So far in 2026, we have closed 5 important transactions, and our pipeline remains highly active with multiple opportunities in advanced stages of diligence and negotiation.

As shown on this slide, the current pipeline represents more than $500 million in potential annualized revenue opportunity. Importantly, we believe our strategic growth program is highly accretive to shareholder value. This is not simply about adding revenue. We are acquiring differentiated technologies, strong leadership teams, customer relationships and operational capabilities that strengthen the broader Ondas platform. As we integrate these businesses, we believe we create what we have described as a double dip of value creation, benefiting from the acquired company itself purchased at an attractive valuation while also accelerating growth through the scale and reach of the Ondas operating platform.

I also want to address a narrative we occasionally see suggesting Ondas is simply buying revenue and the acquisitions are financially oriented and dilutive without creating economic value. We fundamentally disagree with that narrative, which we think demonstrates highly superficial analysis. It totally disregards the technology platforms, the operating scale and ecosystem development and the financial outcomes inherent in our strategy.

In my opinion, the economic value we are creating is significant and compounds over time in a very powerful manner. We believe we are demonstrating that. And of course, we need to continue to demonstrate that to you, and I believe we will. It's only been a few quarters since we launched our strategic growth program, and the data suggests we have the right strategy and financial model.

Looking ahead, the pipeline continues to mature significantly, particularly in the United States. The additions of Mistral and World View have materially strengthened our ability to pursue larger and more strategic opportunities tied to our multi-domain ISR road map and broader Systems of Systems strategy. As we evaluate opportunities going forward, we remain disciplined and focused on transactions that expand our operating scale, strengthen our technology leadership and deepen the strategic value of the Ondas platform. In short, we believe our Core + Strategic Growth strategy remains a powerful driver of long-term shareholder value creation, and we are highly confident in the direction of the business as we continue to scale.

I want to spend a few minutes discussing our capital allocation strategy and why we believe our balance sheet represents a significant competitive advantage for Ondas. As we have discussed throughout this presentation, exceptional technology is essential to winning in our markets, but technology alone is not enough. Customers increasingly require scaled operating platforms capable of delivering, supporting and sustaining mission-critical systems globally.

At the end of the day, we believe the companies that win in defense and security markets will be those that combine differentiated technology with strong go-to-market infrastructure, operational scale and efficient access to capital. Building that type of platform requires substantial resources and long-term investment capacity. We view our balance sheet as a strategic asset and a powerful lever for growth. It is highly valued by customers, employees and strategic partners, and it is increasingly opening larger and more impactful opportunities for Ondas across the market. Importantly, we intend to put this capital to work thoughtfully and strategically on behalf of shareholders.

First, we will continue investing in the operating platform to support growth and scale the business efficiently. Second, we will continue executing our strategic growth program. Based on our current capital position, we estimate that Ondas has the capacity to support more than $4.2 billion of M&A activity, assuming an approximate 2:1 equity to cash structure. Using target acquisition multiples of approximately 2.5 to 4x projected 2027 revenue, that translates into the potential to add between $1 billion and $1.8 billion of incremental annualized revenue as our M&A capacity is deployed.

Importantly, this strategic growth opportunity will be incremental to the large and rapidly growing business we have already built today. We believe this demonstrates the scale of the opportunity in front of Ondas and our ability to accelerate our leadership position across critical defense, security and autonomous systems markets while continuing to build a powerful financial model. At the same time, we will remain disciplined. Maintaining a strong balance sheet is integral to our strategy, our credibility and our long-term success, and we believe it will continue to be highly valued by customers, partners and investors alike.

Let me now turn to our updated outlook for 2026. Based on the strong start to the year and the momentum we are seeing across the business, we are increasing our 2026 revenue target to at least $390 million, up from the $375 million outlook we shared just 7 weeks ago. We believe we have strong visibility into this target, supported by our backlog of over $450 million and a growing global customer pipeline. We also expect our strategic growth program to be meaningfully additive to the outlook during the second half of 2026.

As shown on the chart to the right, we expect revenue contributions across all of our major platforms and market verticals. We currently expect aerial security and ground systems to represent the largest contributions, though we continue to see strong demand trends across the broader systems of systems portfolio. As many of you know, building a strong long-term financial model is critically important to us. We believe shareholder value creation ultimately requires not only rapid growth, but also substantial profitability and strong returns on capital over time.

At the same time, we are operating in very large and rapidly expanding markets, and we believe it is important to continue investing aggressively in the growth opportunity in front of us. As we discussed earlier, we are very pleased to have achieved EBITDA profitability at the product company level 2 quarters ahead of our prior expectations. We currently expect product company profitability to continue through 2026 and beyond, although quarterly results may fluctuate based on product mix and investment priorities.

Importantly, this progress allows us to accelerate our expectations for profitability at the broader OAS level as well. We now expect OAS to achieve EBITDA profitability in the first quarter of 2027, 6 months ahead of our prior target. At the Ondas Inc. and OAS levels, we do expect operating expenses to continue increasing during the first half of 2026, as we invest in leadership, infrastructure, systems integration and operational scale to support a much larger enterprise. We believe these investments are essential and will drive meaningful operating leverage as revenue continues to scale.

Overall, we believe our outlook reflects a business with strong visibility, accelerating momentum, improving financial performance and multiple opportunities for upside through 2026 and beyond. More broadly, we believe the unmanned systems and autonomy markets are transitioning from development to scale deployment while still remaining early in what we expect to be a long-term global adoption cycle. We believe that creates a generational opportunity for leaders in the space and reinforces our conviction in the Core + Strategic Growth strategy we are executing today. With that said, I want to thank you again for spending the time with us.

Operator, we will now move to take investor questions.

[Operator Instructions]

And our first question for today will come from Austin Bohlig with Needham.

Congrats on the solid results. Eric, I just first had a question regarding the organic growth rate. Really strong growth in the Airobotics business, 260% year-over-year. Is that how we should think about organic growth rate? Or how do you guys think about it?

Austin, thanks for the question. So the way I'm thinking about it is core growth is very strong, and I think we're going to be able to show you metrics like that as we're moving through the year. Another metric I'll share, which we didn't put into the prepared remarks was our sequential growth.

And I highlight that because in Q1, we were comping against a portfolio that included new companies such as Sentrycs and the sequential growth was 32.8% Q1 versus Q4. Some more context is, I'll recall, we may have discussed this on our last call that the pro forma revenue for all the companies we owned at the end of 2025 as if we -- pro forma as if we owned them on day 1, so for the full year, it was $90 million. And if you remember, at our analyst meeting in January, we had an initial guidance for $175 million on the year. We're outperforming that. So you can kind of think of core growth as 100% starting in the year. And like I said, we're trying to do better. So that's the way I would look at it, Austin.

All right. And then I guess just my follow-up is, looking at the larger backlog number, kind of one, how should we think about that translating into revenues this year? And then secondly, it seems like a big bulk of that backlog number is related to the Mistral acquisition and the sizable UVision contract you guys have. How do you guys think about that big almost $1 billion contract translating over the next couple of years?

So that remains to be seen, of course, but we do think that is a well-funded program and the customer has need for reorders. I think if you look at our guidance here or the targets, I should say, we plan conservatively there. And then specific to Mistral, and I'd also add that the quarterly cadence here, I think we'll see strong sequential growth quarter-over-quarter for Q2, Q3 and Q4. At the moment, it's really hard to be precise about that.

The next question will come from Amit Dayal with H.C. Wainwright.

Congrats on all the progress. Amazing to see so many things coming together for you guys. One question on the gross margin strength, Eric. Is the gross margin strength in the business model coming from being able to sort of customize each solution for the customer versus just having sort of a standard set of features?

Yes, for sure. I think that's part of it. At the same time, let me just also add firstly that we're still expecting gross margins to be volatile quarter-to-quarter. And that is based on mix and the need for us to still drive scale across the company and efficiencies. So we're seeing that. We had a good quarter for sure on the margin side, and we expect that our targets we've shared with you previously for better than 50% gross margins, hopefully trending higher towards 60% as we do scale, we can achieve.

But I do -- I'd also add that in your question as we're bringing Systems of Systems together in these total solutions, that is valuable, and that does allow us to drive margins higher over time. So I think that's going to be part of the equation. And we certainly endeavor to add more software to our portfolio, and that will help as well.

Just a follow-up, I guess, is, are you targeting a certain percentage of revenues as your adjusted EBITDA results going forward? I mean, I know things are still in motion and you are still sort of normalizing operations, et cetera, and that could take time. But is there sort of a target range where you might want to come out over the next few years with your adjusted EBITDA expectations?

Yes, for sure. I think we're all day long, still focused on getting those to the 25% to 30% level. And of course, we have to drive scale and efficiencies across the business. So -- but at the same time, we've been quite clear that we're investing in the business and the infrastructure and the growth platform to capture markets, and we think the reward to do that is significant because there's a massive market to penetrate and there's some big companies and big important companies to build, we endeavor to be one of those.

So I think in the near term, at least, and we'll keep giving you updates on this, of course, the objective is not to show massive profitability. The objective is to capture those markets. And as we do, that's going to lead to a much larger enterprise and a much more profitable company as we -- as the markets grow and mature.

The next question will come from Jonathan Siegmann with Stifel.

Since the last update in early February, we've had some developments in the Middle East. It's an important region for you. Could you maybe talk a little bit about some of the push-pull of creating new urgent demands and replenishment and potentially customers over there being distracted? Does that slow thing down? And any kind of operational difficulties of the team operating during an active war zone?

Yes. So great question, and I'll start with the last part of it. Clearly, there's operational challenges. It's not just about producing and delivering what we do. Our employees are often called to serve when conflicts heat up. So that's a challenge. At the same time, we are a mission-driven company, and I'm really proud of how our team can rally around this and support each other and still drive the business forward because it's critical to what we do. And I'd also add, and again, this is not easy, but this is not a new environment for us. So we're used to working under this pressure. And again, I'm really proud of the team.

In terms of demand, we've certainly seen demand strength and opportunities in the Middle East and Israel. And I think that's not necessarily adding to the near-term revenue. I think what you'll see us continue to do as appropriate is to prioritize these urgent needs for the customers who are faced with conflict in securing their countries and their population. So that's how some of those dynamics are playing out.

And then maybe over here in the U.S. with Mistral now in the fold, congratulations for that. Maybe can you provide a sense of what existing Ondas products could be produced there? And what's the sense of -- what does 46,000 square feet give you in terms of revenue capacity at that facility?

Yes. Great question, John. And I don't have that number in terms of capacity other than I'd say we certainly could fill it, and we're going to be looking to potentially expand that capacity with Mistral. And of course, we're also using other partners and supply chain folks to help support our growth. I think for Mistral, when we're talking about localizing the technologies at Ondas that have been developed and matured in Israel, we're really focused on probably out of the gates here, the counter-drone systems and some of the ground robotic systems we have.

The next question will come from Max Michaelis with Lake Street Capital Markets.

Great quarter. First one for me. You went over in the presentation, I think it was 45 programs for a potential program revenue of $4.3 billion. Can you help give us a sense of sort of what the internal expectations in terms of like a win rate around those programs are? I'm sure you guys are a good fit for all of them, but sort of give us an idea on what we could expect or what you guys are expecting out of those 45 programs.

Yes, Max, it's a good question, and it's really hard to be precise because it is a diversified target list there. And each one has a different PWin, as you know. I think what we'd like to do is, as we're moving through the year, give you a little bit more granular detail on that as we're progressing and maturing the companies that are joining our portfolio.

Okay. Perfect. And then just with Mistral and that closing, can you kind of give us an idea on how some of the conversations with the DoW and then special operations have evolved since you guys completed that merger?

Yes, sure. I think this is just business as usual, firstly. And secondly, what we communicate to customers and partners is that Mistral is now an even better partner with more resources, and we're investing in outcomes with these customers. So I think the feedback and the response we're getting from the marketplace has been very strong.

The next question will come from Mike Latimore with Northland Capital Markets.

The SkyWeaver program is very interesting. Can you help clarify a little bit how that relates to like Maven? It feels like Maven is part of mission autonomy as well. So just kind of maybe think of how SkyWeaver would relate to a Maven platform. And then as you talk about charging for outcomes versus maybe the traditional point product route, how much do deal sizes expanding?

That's great, and I'll ask Ryan to answer that.

Yes, great question. So when we think about SkyWeaver and how it relates to Maven, what we're focused on is creating an agentic AI solution, specifically in the intelligent surveillance and reconnaissance space and ultimately takes advantage of the Maven architecture for disseminating that integrated intelligence product. So if you think about the Ondas portfolio and having multiple domains collecting intelligence and applying agentic AI, we're producing a fully integrated and reasoned intelligence product that ultimately can be delivered fast and exactly to the right person via Maven. So when I think about it, SkyWeaver can't operate without Maven and Maven ultimately benefits from the existence of SkyWeaver.

Great. And then just charging on outcomes versus the traditional route, how much do deal sizes potentially expand?

So yes, Ryan, I'd just say -- I'd like you to expand on the business model in and around the ISR as a service. But I don't think it's necessarily outcome where we provide certain intelligence and they pay us more, right? So -- but Ryan, can you add to this?

Yes. So today, for a good majority of the ISR that's collected, especially in conflict, it's done through a COCO ISR services model, a contractor-owned, contractor-operated ISR systems. And so what we see as the opportunity is by having an integrated and multi-domain ISR solution, we can ultimately offer multiple domains via a single contract. So instead of having to contract for just stratospheric balloon ISR or tactical UAS ISR, we can offer a full domain solution or a multi-domain solution and have it fully integrated via SkyWeaver and leverage common operators, common sensors, common field support, which decreases cost, ultimately decreases price, but for us, also increases margins. So I expect that as we continue to roll out our multi-domain ISR capability, deal sizes will go up.

The next question will come from Matthew Galinko with Maxim Group.

Maybe just following up on a prior question. Eric, I think you mentioned trying to expand software content in your mix. Can you maybe go a little bit further into how you get there?

Well, for sure. And I'll ask Ryan to support this because a lot of this is in and around the ISR. But more broadly, you've seen us both internally developed software on command and control and the integration of our systems. We showed one of those systems, the IRON-WAVE in a video. And there you saw us combining our ground capabilities with aerial and counter-drone capabilities. So as we're doing that, the C2 around that becomes critically important. So -- and we're doing that in a variety of ways. Ryan, can you expand on that as it relates to SkyWeaver.

Yes. So SkyWeaver is both a product that will be deployed on Ondas platforms, but it's also a set of solutions that can be deployed on other platforms. So it creates a software product along with software licenses that increases the software revenue that will be available to us. In addition to that, we see it as one of those solutions where it's an additional item in our bill of materials that will benefit from licenses as we deploy our systems to customers and specifically through those COCO ISR services contracts. So there will be a continued set of features that are added to SkyWeaver that create additional software licenses and therefore, software gross margins through a lot of those contracts.

And Matt, I'll add that you'll hear more about this as we're moving through the year. And also in our strategic growth pipeline, we have some interesting things that we're looking at that are software related.

And then I guess my follow-up would be on IRON-WAVE. I was hoping you could -- and maybe you covered this, but is the development of that and subsequent systems sort of more reactive to customer demands? Or are you proactive? Just trying to skate to where the puck is going.

We're absolutely proactive. And we think we're -- we have opportunities to define and really lead the integration of these various domains. I'll ask Meir Kliner to share more context as to how the IRON-WAVE and other elements of this are coming together because it's not just IRON-WAVE, we have more in the pipeline to share as we're moving through the year in terms of Systems of Systems and integrated solutions. Meir?

Yes, sure. So we took most of our tech companies' technology and combined everything together under one roof. So here, as Eric mentioned, Systems of Systems, if you're talking about IRON-WAVE, so we're talking about counter-UAS -- mobile counter-UAS that integrate together, C2 as a brain...

Did we lose Meir?

Pardon me, I think we lost Meir.

Okay. All right. So I guess I'll just try to piggyback and we did talk about this a bunch, and you'll hear more. But the critical part of this is integrating them on the hardware level in a system in form factor that's effective and can be deployed. But as I started to talk about, you hear more about this OS and brain that we're creating that can be interoperable with many of the edge technologies we have. So we lost Meir, and I'm sure we'll have an opportunity to talk about this in greater detail as we're moving through the year.

And this will conclude our question-and-answer session. I would like to turn the conference back over to Mr. Eric Brock for any closing remarks. Please go ahead.

Okay. Well, thank you, operator. And as we wrap the call, I want to thank you again for spending time with us today. 2026 is off to a great start, and we are focused on sustaining that momentum throughout the year, and we look forward to providing more updates along the way. Also, as a reminder, if you're a stockholder as of April 9, the record date, please cast your vote for the annual meeting. Your vote is important, and we appreciate your continued support. Our team is now going to go back to the important work of building the company. We hope you have a great day. Thank you.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Thanks, everybody.

Welcome to the Ondas Inc Fourth Quarter and Fiscal Year 2025 Conference Call [Operator Instructions] Before we begin, the company would like to remind you that this call may contain forward-looking statements. While these forward-looking statements reflect Ondas best current judgment, they are subject to risks and uncertainties that could cause actual results to differ materially from those implied by these forward-looking statements.

These risk factors are discussed in on this Periodic SEC filings and in the earnings press release issued on Monday, which are both available on the company's website. Ondas undertakes no obligation to revise or update any forward-looking statements to reflect future events or circumstances, except as required by law.

During this call, Ondas will refer to certain non-GAAP financial measures. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is shown in our press release issued on Monday, which is available at the Investor Relations section of our website.

This non-GAAP information is provided as a supplement to, not as a substitute for or as superior to, measures of financial performance prepared in accordance with GAAP. A However, management believes these non-GAAP measures provide investors with valuable information on the underlying trends of our business. Please also note today's event is being recorded.

At this time, I would like to turn the floor over to Eric Brock, Chairman and CEO. Please go ahead.

Thank you, operator, and good morning. We appreciate you joining us today and for your continued interest in Ondas. Let me start by setting the stage for today's discussion. Simply put, Ondas is delivering a whole strategic growth plan we have consistently outlined over the past year. We are doing what we said we would do.

We are seeing strong momentum across the business. Revenue growth and increasing market adoption are validating our strategy. At the same time, our acquisitions are adding meaningful strategic value and expanding the scope of what we can deliver to customers. Importantly, this is not happening in isolation.

Our business strategy is actively driving the buildout of a scaled operating platform, one that is designed to support global deployment, localization and long-term growth. And as that operating platform scales, we are beginning to see it reflected in our financial model. So when you look at Ondas today, what you're really seeing as a company where strategy is translating into execution is building the platform, and the platform is driving financial outcomes.

We believe this dynamic positions us for significant upside as we move through 2026 and beyond. So let's turn to the agenda. I want to highlight that today's investor update will be a bit different than our typical earnings call. We're now at the end of March. And importantly, we provided a comprehensive strategic update at our OAS Investor Day in January along with additional financial and business updates throughout the quarter.

So rather than walking you through a detailed recap of 2025, we're going to focus today on the transformation of Ondas and how that transformation has continued to accelerate into the first quarter of 2026. Note that we expect our prepared remarks to be on the longer side this morning, considering the significant activity at Ondas in recent months.

Our goal is to give you a clear view of how the business is scaling across our technology portfolio, our expanding operating platform and go-to-market strategy and the rapid maturation of our financial model. We'll begin with a brief introduction and then discuss our new joint venture with Heidelberg, [ Omberg ] Autonomous Systems, which is a key component of our European strategy.

We'll also cover the WorldView acquisition announced on Monday, which is scheduled to close in Q2 2026, along with our partnership with Palantir and how, together, we are building a scalable, software-defined multi-domain ISR platform. Neil will then provide a brief financial review.

After that, we will provide a brief update on Ondas Networks and then focus on Ondas Autonomous Systems and our strategic growth program and emphasize how we are creating and compounding value as we scale the business. We'll close with our outlook and then open the call for questions.

I'm pleased to be joined this morning by key members of our leadership team, including Neil Laird, our Chief Financial Officer; Oshri Lugassy, Co-CEO of Ondas Autonomous Systems and Meir Kliner, President of OAS, all of whom are quite familiar to you.

Neil and I will lead today's presentation, and we'll aim to be efficient with your time. Oshri and Meir will be available during the Q&A to address questions, particularly details around our technology platforms, operations and growth initiatives. I will continue now by highlighting the momentum we are seeing across the business and importantly, how that momentum is accelerating into 2026.

Starting with 2025, we delivered strong performance across both our core business and our strategic initiatives. We generated over $50 million in revenue, well ahead of our earlier targets and exited the year with a significantly expanded backlog, reflecting growing customer demand and market adoption.

At the same time, we are raising our 2026 revenue outlook to at least $375 million, representing a substantial step-up from prior expectations. This reflects both the strength of our core business and the impact of our strategic growth program. Importantly, we are investing ahead of that growth, particularly in the first half of 2020, and to support what we expect to be a significant revenue ramp in the back half of the year and beyond.

On the strategic side, we've made meaningful progress accelerating the build-out of our systems of systems platform. In the first quarter alone, we announced 5 accretive acquisitions that expand our capabilities across multiple domains, while also enhancing our financial profile.

We've done this with a highly attractive capital position ending the year with a pro forma cash balance of over $1.5 billion, which gives us the flexibility to continue executing our strategy at scale. And finally, we've continued to invest in leadership and operational infrastructure to ensure we can integrate and scale these capabilities effectively.

So when you step back, what you see is a business that not only exceeded expectations in 2025, but has also accelerated its strategic road map, and we are carrying that momentum into 2026 with a high degree of confidence. I'm excited to introduce [ Amberg, ] our European joint venture with Heidelberg, a key step in Ondas global expansion and our localized go-to-market platform for Europe. Delivering defense and security solutions today requires more than advanced technology.

It demands local manufacturing, talent, and alignment with national and regional priorities. This is especially true in Europe where defense spending is rising to rapidly deploy modern capabilities, including unmanned and autonomous systems. [ Amberg ] is our answer to this market need. This joint venture with Heidelberg, a leading German industrial platform provides local manufacturing, engineering and life cycle support that meet European sovereignty requirements.

Heidelberg's established relationships with government and defense procurement channels across Germany and NATO align customers further strengthen our position. By combining Ondas systems of systems expertise with Heidelberg's local infrastructure, we're creating a sovereign aligned platform ready to deliver large-scale programs across the EU. [ Amberg ] has already identified strong demand for OAS platforms, particularly in Germany and Ukraine where requirements for autonomous systems are immediate.

Strategically, [ Omberg ] enables us to participate directly in European programs as a localized provider critical to winning in this market. Financially, [ Omberg ] represents significant upside. While our current European business is growing, our forecast do not yet include new incremental revenue from Amberg. As [ Amberg ] becomes operational in the coming months, we expect it to drive meaningful growth beyond our existing targets.

Ondas holds a 51% controlling interest in Omberg ensuring we capture the value as the platform scales. So overall, Amberg is an important extension of our global strategy. Localizing our platform, expanding our addressable market and positioning Ondas to participate in one of the fastest-growing defense markets in the world. Let me now turn to what we believe is one of the most important strategic developments for Ondas, the acquisition of WorldView and our partnership with Palantir.

Starting with WorldView. This acquisition brings a unique and highly strategic capability into our platform, persistent sensing in the stratosphere. The stratosphere sits between traditional airspace and low-earth orbit and it is increasingly being recognized as a critical domain for defense, homeland security and commercial ISR applications. By adding this stratospheric layer, we are accelerating the build-out of our systems of systems architecture expanding from ground and air into a truly multi-domain ISR platform.

Now equally important is how this capability is being integrated, and that's where Palantir comes in. We are very excited about our partnership. We believe Palantir is one of the most important force multipliers for Andes as we scale this platform globally.

Through this relationship, we have access to Palantir's full AIP software stack from operational platforms like Warp Speed and Foundry to mission-critical systems, including Maven and advanced command and control capabilities.

This enables a software-defined ISR architecture or data across stratospheric aerial and ground systems is fused in real time into actionable intelligence. Importantly, this is not just technology integration. It is an active commercial partnership. We are already working together on market development, pursuing tailored solutions and program opportunities where our combined capabilities are differentiated.

Palantir is also engaged strategically as we expand our layered ISR platform helping shape how we scale over time. So when you step back, the combination of WorldView Ondas and Palantir is creating something unique, a scalable, multilayered ISR platform that integrates sensing, data and decision-making into a unified operational system.

We believe this platform positions us extremely well for the next generation of defense and intelligence programs, and we expect this partnership to be a meaningful driver of upside as we move through 2026 and into 2027, accelerating our ability to penetrate what we see as a large and high-value market opportunity for layered ISR systems at scale.

Before we go deeper into the WorldView platform and how it fits into our broader ISR strategy, I want to take a moment to introduce Ryan Hartman, President and CEO of World View. The entire Ondas' leadership team, including Oshri and myself, is excited to partner with Ryan and the WorldView team as we accelerate our systems of systems road map.

Ryan is a true industry pioneer with critical experience across Raytheon and in [indiscernible] as well as serving as the UAS representative on the FAA NextGen Advisory Committee and on the FA Drone Advisory Committee. He brings a proven track record of scaling advanced aerospace technologies into real-world mission-critical deployment.

We believe Ryan and his team will be instrumental in scaling this platform and capturing the significant opportunities ahead, particularly in the United States as we expand across defense, intelligence and homeland security markets.

Ryan will walk you through the WorldView platform, including the [indiscernible] system, key use cases and how this integrates into our broader software-defined multi-domain ISR architecture. He'll also touch on how our partnership with Palantir is helping us accelerate market development and expand program opportunities. Ryan, over to you.

Thank you, Eric. The team at WorldView is thrilled to join forces with Ondas and excited about working closely with you and the entire leadership team across Ondas and OES. I also appreciate the opportunity to be here today with our investors. I'm excited to share our vision for an interconnected intelligent multi-domain ISR ecosystem and why Worldview is such an important part of that future.

At World view, we have helped make the Stratosphere an operational domain. For a long time, the stratosphere was largely overlooked. It sits between traditional aircraft operations and space. It was understood scientifically but had not been fully operationalized for persistent sensing.

That changed in a very visible way in early 2023 when a Chinese high-altitude balloon incident reshaped how governments think about the strategic importance of the Stratosphere. WorldView is uniquely positioned to meet the growing demand for stratospheric intelligence, surveillance and reconnaissance from the U.S. Department of War, Department of Homeland Security, allied governments across the world and an expanding range of commercial customers.

We build Stride Spirit platforms that can remain over an area of interest for 30 days or more. We do that by using the 4 directional wind bands that exist at different altitudes in the stratosphere by changing altitude with ballasted air, we can navigate or station keep over a target area.

It is simple in principle, but complex in execution because you are steering a month-long mission using stratospheric physics. Navigation becomes a vertical decision that creates a horizontal result. We call these platforms stratelites. Stratelites operate in the stratosphere and often overlook a strategically important layer of the atmosphere.

They deliver a unique combination of persistence, proximity, resolution and flexibility. UAVs are precise and responsive, but their endurance is measured in hours. Satellites are global and predictable, but they operate in fixed orbits with limited revisit. Stratellites fill the gap between those 2 domains. They can deliver high resolution sensing than satellites with much longer endurance than UAVs.

And we have built this as a flexible platform architecture, not a single-purpose asset. We have designed a family of stratelites in different shapes and sizes to meet different mission requirements from long duration, navigable altitude controlled systems with high size, weight and power capacity to shorter duration tactical free float systems.

On top of that, we configure payloads to the mission whether a customer needs electrooptical data, hyperspectral imaging, infrared sensing, communications capabilities or a combination of any of those and more, we can tailor the system to the objective.

That configurable architecture allows us to serve a broad mix of defense and commercial missions. For maritime surveillance and in-theater operations to border security, critical infrastructure, energy, mining, disaster response and wildfire monitoring.

Today, we are seeing demand expand as more customers understand the strategic and economic value of persistent sensing and insight from the Stratosphere. Right now, for example, stratospheric platforms like ours are being contemplated as a key layer of the $1 trillion golden Dome system.

We are also actively preparing for the inclusion of our technology in support of active U.S. Department of or operations like Epic Fury. But the stratosphere is only one domain. It offers unique advantages just as UAVs, land systems and space-based assets offer their own unique advantages. Even within the UAV segment, different classes of systems serve very different operational needs.

And that is exactly what both WorldView and Ondas recognized independently and early. World View's vision has been to move beyond a single domain sensing company and build toward a broader, integrated multi-domain AI-powered ISR architecture. Ondas has been pursuing a highly complementary vision, building a portfolio of autonomous systems across adjacent domains with the same underlying belief that the future of ISR is not platform by platform, it is networked, interoperable and decision centric.

That shared vision is why joining forces made so much sense. This is not a case of one company plugging into another company's road map. It is the combination of 2 companies that we're moving toward the same future from different points of strength. WorldView brings the stratospheric layer and a heritage of persistent sensing, Ondas brings complementary autonomous systems and a heritage of building toward multi-domain integration.

Together, we can move faster and build more cohesively than either company could alone. Because the broader ISR market still has a structural problem today. Across the industry, most systems still operate in walled gardens, separate data feeds, separate tools, separate teams, separate time lines.

Customers are left stitching together fragments just to understand what is happening, let alone act on it. The operator should not have to carry which domain the data came from. The operator should care whether the decision is right fast and accountable. By joining forces with Ondas and through our recently announced partnership with Palantir, we are building a true system of systems, unified intelligence with 1 operational picture.

That means 1 workflow language and 1 set of decision loops that can task the right asset at the right moment. If you need persistence and proximity, the Stratosphere can hold station and support edge inference close to the area of interest.

If you need precision and rapid tactical response, a UAV or land-based system can execute the mission. If you need broader context, additional domains like satellites can complete the frame. What makes that multi-domain picture operational is the Palantir-powered AI infrastructure we are building underneath it. At the operations layer, it helps increase efficiency across planning, production, mission management, and fleet coordination by connecting workflows that are often fragmented today.

At the mission layer, it enables edge inference that can ingest, fuse and contextualize data from across these domains into a single operational picture. The result is not just more visibility. It is decision-ready insight that helps operators understand what matters act faster and do so with greater confidence.

Operationally, this also creates a more unified structure that allows the portfolio of companies to maintain their platform-centric expertise while benefiting from a common ISR tool set, shared tasking, processing, exploitation and dissemination workflows and shared support functions where that creates leverage.

The simplest way to think about it is this, we are connecting persistence, autonomy and AI into 1 operational workflow in a way that has not existed before. We are building what we call an interconnected intelligence ecosystem. In practical terms, that means connecting platforms, sensors, software and operators, so customers can move from data to decisions faster.

And that is where we believe the market is going. It is not enough to collect more data. The value is turning that data into decisions faster, more coherently and across domains. We believe the future of ISR is multi-domain interoperable and decision centric.

WorldView brings the stratospheric layer, Ondas brings complementary autonomous systems and power brings the software and AI backbone. Together, we're building a more connected way to operate.

Eric, I'll hand it back to you. Thank you.

I will now hand the call to Neil to provide a detailed financial update.

Thank you, Eric. We are pleased to report strong fourth quarter and full year results, which we believe represent an inflection point in the growth of the business, both organically and through our strategic growth program. .

We believe these results validate both the strength of our core business and the scalability of our operating model as we move into a significantly larger phase of growth. Revenue in the fourth quarter was $30.1 million up 629% year-over-year and nearly 200% sequentially from the third quarter. This performance was at the high end of our preliminary guidance and reflects strong demand across our Ondas Autonomous Systems segment. Importantly, organic revenue growth was also strong, increasing 63% year-over-year, driven by continued deliveries of iron drone and Optima systems.

Gross profit was $12.7 million, representing a 42% gross margin, a significant improvement from 21% in the prior year and 26% in the third quarter. This reflects both favorable product mix and the benefits of scaling revenue across our cost base. Operating expenses increased to $36.1 million, driven primarily by investments in personnel and infrastructure to support the scaling of our operating platform as well as increased activity related to our acquisition program.

We view these investments as intentional and necessary to support the significant revenue growth we expect in 2026 and beyond. Let me briefly address the movement in other expenses during the quarter, which was primarily driven by a noncash accounting item related to our October 2025 financing.

As a result of the structure of that financing, Certain warrants are required to be classified as a liability and mark-to-market each reporting period using a Black Scholes valuation methodology. In the fourth quarter, this resulted in a noncash charge of approximately $82.2 million, which is reflected in other expenses. Importantly, this charge is purely accounting-driven and does not impact our cash position, operations or the underlying economics of the business.

The valuation of these warrants can fluctuate meaningfully from period to period based on factors such as our stock price, volatility assumptions and time to maturity. And as a result, we expect this line item to introduce variability into our reported earnings going forward.

We believe it is important for investors to focus on the underlying operating performance of the business, where we are seeing strong revenue growth, expanding backlog and continued execution of our strategic plan. I also note that this noncash charge was partially offset by approximately $10.7 million of other income, primarily driven by interest earned on our cash balances following our recent capital raises.

Cash operating expenses were $23.6 million. A summary of cash operating expenses was included as a table in our earnings release and as an appendix to this presentation. Net loss for the quarter was $101 million driven by the $82.2 million noncash charge related to warrants discussed above. Adjusted EBITDA was a loss of $9.9 million compared to $7 million in the prior year.

Overall, the financial results reflect a business that is scaling rapidly, investing ahead of growth and beginning to demonstrate the operating leverage embedded in our model. Turning to our full year results. For 2025, we generated $50.7 million in revenue, representing 605% growth compared to $7.2 million in 2024 and at the high end of our previously issued guidance range.

This level of growth reflects both strong execution in our core business and the early impact of our strategic growth program. Full year gross margin improved significantly to 40% compared to 5% in the prior year, driven by higher volumes and improved product mix, particularly in the fourth quarter. For the full year, other expense was primarily driven by the previously discussed noncash warrant revaluation related to our October 2025 financing, resulting in an $82.2 million charge for the year.

As noted, this is a mark-to-market accounting adjustment with no impact on our cash operations or underlying business performance and may introduce variability in reported results going forward. This noncash expense was partially offset by approximately $7.7 million of other income, primarily from interest earned on our cash balances.

Cash operating expenses were $53 million, net loss for the year was $133.4 million with the warrant accounting and other noncash expenses being major contributors to the increase year-over-year. Adjusted EBITDA for the full year was a loss of $31.3 million compared to a loss of $28.5 million in 2024, reflecting increased investment in personnel, infrastructure and integration to support the next phase of growth.

Now turning to our cash flow and capital position. We ended the year with $594 million in cash, cash equivalents and restricted cash compared to $30 million at the end of 2024. As Eric noted earlier, following our recent capital raise, our pro forma cash balance is over $1.5 billion providing significant financial flexibility to execute our growth strategy.

Cash used in operating activities for the full year was $38.7 million compared to $33.5 million in 2024. This includes approximately a $10.7 million increase in accounts receivable in line with revenue growth. Cash used in investing activities was $260 million, the majority of which approximately $207 million was deployed into acquisitions as part of our strategic growth program.

In addition, we invested approximately $51 million into short- and long-term investments including a number of strategic investments. These investments are aligned with our broader platform strategy. They support key partners enhance access to critical technologies improve supply chain efficiency, and we believe will generate attractive returns over time.

Cash provided by financing activities was $863 million, primarily from our equity offerings throughout the year. along with proceeds from warrant and option exercises. Looking ahead, we expect cash efficiency to improve over the course of 2026 as revenue and gross profit scale. We do expect higher cash usage in the first half of the year, reflecting continued investment ahead of growth.

However, as we move through the second half, we expect to see meaningful improvement driven by operating leverage particularly within our OAS segment. Turning to the balance sheet. We believe Ondas now has one of the strongest balance sheets in the sector and a key competitive advantage as we scale the business. We ended the year with $594 million in cash and following our January equity raise, our pro forma cash position increased to approximately $1.5 billion.

This provides us with significant financial capacity to execute on both our organic growth and strategic initiatives. At the same time, the balance sheet was further strengthened by reducing debt by approximately $41.7 million during the year, leaving only a modest debt profile at year-end held by certain subsidiaries, including Ondas networks. The previously discussed warrant liability was recorded at $489 million at year-end.

And again, this liability is expected to fluctuate higher and lower perhaps significantly quarter-to-quarter based upon Ondas share price and other value is relevant for Black Scholes valuation and quarterly changes in this measure will result in noncash impacts on our GAAP net income. As a result, our shareholders' equity has increased to approximately $441 million compared to just $17 million at the end of 2024.

So overall, we've significantly improved both the scale and the quality of the balance sheet, positioning the company with a capital flexibility and cost of capital advantage to support our growth strategy.

With that, I'll turn the call back over to Eric.

Thank you, Neil. I want to take a moment to expand on what Neil discussed regarding our balance sheet and liquidity because we believe this is a key differentiator for Ondas. We are benefiting from strong and growing investor support. That support is reflected not only in the strength of our balance sheet, but also in our continued access to capital and a clear cost of capital advantage relative to many subscale competitors in our sector.

Since June of 2025, we have raised approximately $1.8 billion. including the $1 billion financing we completed in January of this year. That January financing was led by a large U.S.-based institutional investor who knows the Ondas business well and has been a long-time supporter of the company. Importantly, the prefunded warrants associated with that financing have been fully exercised and are in the share count, and we believe the investor currently holds less than 5% of our outstanding shares.

More broadly, we are seeing continued growth in our institutional ownership base. Based on Capital IQ data, institutions now hold approximately 33% of our shares. We are actively working to further broaden that base. And we believe Andes is well positioned for inclusion in additional indices, including the Russell 2000 as we move through 2026.

So overall, we see our capital position and investor support as a meaningful competitive advantage, one that enables us to execute our strategy at scale. Let me briefly touch on Ondas' networks. 2025 was an important year for Ondas Networks, highlighted by the formal adoption of our IEEE802.16 or .16, technology by the Association of American Railroads, as the communications protocol for the next-generation head of train end of train standard.

This is a significant milestone and reflects years of development and validation, including our ongoing collaboration with MXP Rail. More broadly, the AAR has now signaled its intent to adopt .16 across all of its communications networks, which we believe confirms Ondas Networks position as a foundational technology provider for next-generation rail communications.

This is a very important development given the large total addressable market with the Class 1 rails in North America and underpins what we believe is substantial value underlying Ondas' networks software-defined networking capability and the network upgrade opportunity that will eventually accrue to Ondas shareholders.

From a commercial perspective, we are seeing continued progress with interest in 160 megahertz accelerating from many parts of the industry. We are now engaged with all Class 1 railroads and are advancing multiple infield proof-of-concept deployments particularly around 160 megahertz network applications.

These efforts are generating strong feedback, and we expect to begin converting these into commercial opportunities in the second half of 2026. At the same time, radios for Amtrak are now in production with initial deliveries expected to be completed in the first half of the year. While we are disappointed in the time lines with respect to driving network deployments with our rail customers, we continue to see meaningful long-term value in the Ondas Networks business.

As adoption of .16 expands and commercial deployments begin to scale. Of course, we are working to realize that value for our investors, and we think we will make measurable progress in 2026. Let me now turn back to Ondas Autonomous Systems and the broader platform. As we outlined at our Investor Day in January, we are executing against a clear plan across both our core business and our strategic growth program and we are making strong progress.

We've already covered our 2025 performance at the OAS Investor Day in January. So rather than revisit that, I want to focus today on how the business has evolved and transformed in the last few months. Specifically, I want to walk you through how we've expanded our technology and capabilities, how we are now positioned across multiple high-value market segments and how we have significantly broadened our operating platform.

What you'll see in the next few slides is the result of that transformation, how Ondas is evolving into a scaled multi-domain autonomy platform with the ability to deliver integrated solutions at a global level. This is where the strategy becomes visible in the platform we've built. As depicted on this slide, Andes has undergone a significant transformation in just the last 9 months.

I want to highlight the 5 new acquisitions from Q1 2026, Rotron, Mistral, Bird, Indo Earth and now World View, which have materially expanded both the scope and scale of our platform. Ryan Hartman and I shared details regarding WorldView and the strategic fit and road map earlier. We will also provide some context for the other acquired companies a bit later on the call.

But make no mistake, these acquisitions are not just additive. They are highly strategic. We are adding mission-ready technologies, established customer relationships and exceptional talent across multiple domains. This is accelerating the build-out of our systems of systems architecture and expanding our ability to deliver integrated solutions at scale as these companies are also accelerating the scaling of our operating platform.

At the same time, this transformation is having a direct impact on our financial model. We are building a significantly larger backlog, increasing our revenue base and expanding our gross profit pool, all of which support operating leverage as we scale and that operating leverage is what ultimately drives our path to profitability.

So this is not just about growth. It's about building a platform that can scale efficiently and generate strong financial outcomes over time. This is a step change in the scale and maturity of the Ondas operating and financial platform. Just 12 months ago, Ondas Autonomous Systems was primarily focused on 2 markets: ISR and counter UAS with 2 core platforms: the Optimus system and iron drone rater.

Today, that has changed significantly. Our market opportunity set has been transformed. We are now positioned across 4 high-value defense technology verticals, including Counter-UAS, ISR, loitering munitions and one-way attack systems and unmanned ground vehicles. And with the addition of World view, we've extended that capability even further into the Stratosphere, adding an entirely new domain to our aerial and ground capabilities.

So what you're seeing is a substantial expansion, not only in our technology base but also in the financial opportunities available for Ondas. We've moved from a focused set of capabilities into a broad multi-domain platform positioned to compete across some of the fastest-growing segments in the global defense market. This slide brings together visually everything we've been discussing.

Here, you can see the breadth of our aerial and ground-based platforms, combined with the software-enabled command and control layer and AI-driven applications that sit on top. What makes this powerful is not just the individual systems, it's the integration. We are building a unified platform where sensors, effectors and autonomous systems are connected through a common C2 and software layer, enabling coordinated real-time operations across multiple domains.

And with our partnership with Palantir, we are able to take that integration even further, deploying these capabilities into broader mission level systems with advanced data fusion, AI-driven analytics and decision support. So rather than offering stand-alone products, we are delivering an integrated operational capability, one that allows customers and partners like Palantir to move from data to decisions faster and to execute missions more effectively.

With that foundation in place, let me now turn to how we are scaling this platform through our strategic growth program. Over the past several months, we've announced a series of strategic acquisitions that are expanding both our capabilities and our market access. These businesses play very specific roles within the OAS platform, enhancing our technology stack strengthening our go-to-market capabilities and accelerating our ability to deliver integrated solutions at scale.

I covered WorldView with Ryan earlier in the call. Here, I want to walk through Mistral, Rotron Bird and Indo worth. And highlight how these transactions are contributing to the evolution of our financial model, adding revenue, expanding our gross profit pool and supporting operating leverage.

Importantly, we view these acquisitions as highly accretive, not only to our financial profile, but to the long-term enterprise value of Ondas as we continue to scale. Let me start with Mistral which has been a partner of Ondas since the second quarter of last year and is one of our most strategically important acquisitions. Mistral is a direct accelerant for our U.S. market expansion. It enables Ondas to operate as a prime contractor. Significantly expanding our access to major U.S. defense programs while also adding critical manufacturing and program execution capabilities. Mitral also brings meaningful market experience and customer access across UAVs and loitering munitions and ground robotics, aligning closely with the core segments of our platform.

The company has already captured programs in excess of $1 billion. which we expect to generate significant pull-through revenue. We also expect Mistral to contribute meaningful backlog to Ondas upon closing, which we anticipate in the second quarter.

Just as importantly, the straw brings deep U.S. market development expertise, helping us localize our Israeli developed platforms for U.S. requirements and accelerate adoption across defense and security customers. We expect Micrel to be a meaningful driver of revenue growth and EBITDA leverage beginning in the second quarter of 2026 and continuing as we scale our presence in the U.S. market.

Next, let me highlight Rotron Aerospace. Rotron significantly expands our aerial capabilities, adding long-range UAV platforms in the Talend platform, autonomous strike systems with the Defender and Stratos platforms and advanced propulsion technologies. This is particularly important as modern defense strategies continue to shift toward low-cost attritable mass scale autonomous systems that can be deployed efficiently and cost effectively in contested environments.

With Rotron, we are extending our platform beyond ISR into a more complete strike and effector layer. Strengthening our overall multi-domain architecture. In addition, Rotron provides a strong local presence in the United Kingdom, where it is competing for programs, including the project break stop, a one-way effector or OWE program. Rotron positions Andes to engage directly with U.K. and broader NATO rearmament programs, which are seeing significant acceleration.

So strategically, Rotron enhances both our technology stack and our geographic reach while positioning Ondas to participate in the next generation of autonomous defense systems, where scale, autonomy and affordability are critical.

Next, Bird Aerosystems. Bird adds a critical airborne protection layer to our platform with advanced ISR and counter UAS capabilities designed to protect both manned and unmanned systems. This is particularly important in today's environment. where the increasing lethality and proliferation of low-cost UAS and loitering munitions is driving strong demand for effective airborne protection solutions across both military and security applications.

At the core, our proven mission-critical technologies, including laser-based Dicom systems, which autonomously detect, track and defeat incoming missile threats in real time, providing active protection in highly contested environments. Importantly, Bird brings access to long cycle program of record defense budgets, supporting more predictable and recurring revenue streams, along with high-margin systems already deployed on leading global platforms.

Strategically, Bird strengthens our ability to deliver integrated ground to air defense architectures while contributing meaningful backlog, revenue and EBITDA as we scale the business. Finally, Indo Earth. Indoor Earth expands our ground system strategy into military engineering vehicles, providing entry into large-scale defense procurement programs with immediate revenue contribution.

This adds a scalable platform in heavy ground equipment with strong visibility into revenue and gross profit, supported by active programs and customer demand. Importantly, Indo Earth also provides a funded services platform in Israel, which we expect will support the broader OES business and drive meaningful operating expense leverage as we continue to scale our operations in the region.

Strategically, this is an important step in broadening our systems of systems architecture into the heavy grad segment, complementing our aerial and ISR capabilities. Over time, we see a clear opportunity to integrate autonomy and advanced technologies into these platforms, creating next-generation robotic engineering systems. Indoorth is a great business and financial opportunity for Ondas it not only contributes near-term revenue and backlog, but also establishes a foundation for long-term growth in autonomous ground systems.

Let me bring this all together. We believe these acquisitions significantly accelerate our systems of system strategy while driving meaningful scale in our financial model. This is exactly how we designed our strategy from the outset. The key takeaway here is the level of accretion we are generating both to our financial model and to our enterprise value.

Across these 5 acquisitions, we will deploy approximately $550 million of capital and based on our current estimates, these businesses are expected to generate approximately $230 million of revenue in 2026. We view that as a very attractive entry point, particularly given the growth profiles of these businesses and the operating leverage we expect to achieve as they are integrated into the Ondas platform.

Importantly, many of these businesses, particularly Mistral, Bird and Indo Earth have contracted revenue and/or a significant backlog, a steep revenue growth curve supported by strong industry tailwinds. And meaningful expected EBITDA generation over the next 12 to 18 months.

At the same time, Rotron and WorldView represent technology-driven platform businesses. with strong long-term growth potential as adoption of their capabilities accelerates, aided by the integration with the Ondas operating platform. So this is not just about adding revenue, it's about expanding our gross profit pool driving operating leverage and enhancing the overall quality of our earnings over time.

And importantly, we believe this model is repeatable. We are building a disciplined, programmatic M&A capability that allows us to acquire strategic assets at attractive valuations, integrate them into our platform and drive both growth and margin expansion. We look forward to demonstrating that value creation over time but we believe these transactions are already meaningfully accretive and will become increasingly so as we scale.

Let me take a moment to step back and explain how this model works and why we believe it is both highly accretive and repeatable. It starts with identifying and acquiring customer validated technology and services platforms operating in markets and categories with strong secular growth tailwinds.

In many cases, these businesses are capital constrained. They have strong products and market demand but lack the capital and infrastructure to fully scale making Ondas as an attractive partner to support the next leg of business growth and value creation that allows us to acquire them at attractive entry valuations.

At the same time, Ondas benefits from a premium valuation supported by the operating platform we've built and the capital our investors have provided. That creates a favorable dynamic where we can acquire high-quality assets at attractive valuations and integrate them into a scaled platform.

That's what we refer to as day one value creation but the more powerful part of the model is what happens after the acquisition. We see what we call a growth double dip.

First, these businesses benefit from the underlying growth in their markets. And second, they grow faster as part of the Andes platform through our go-to-market capabilities, operational infrastructure and access to capital. We are already seeing this in practice. Companies like Centrix and 4M, for example, are outperforming the assumptions we made when underwriting the acquisitions. The upside is driven by our growth double dip by virtue of their integration into the OAS platform.

And beyond the individual businesses, there is also a portfolio effect. As we integrate these platforms into a system of systems architecture and go to market with more complete multi-domain solutions, we create greater value for customers, which we believe will drive higher revenue and improve margins over time.

So overall, this is not just a series of acquisitions or a portfolio of capabilities. Our operating and financial models drive a compounding value creation flywheel, and we believe this strategic growth program will be a major driver of shareholder value in both the near and long term. Let me now turn to how this translates into our outlook. Here, we will focus on our key operating priorities and provide context on the M&A pipeline as well as update our financial targets.

Let me firstly touch on our key operating priorities as we move through 2026. At the core, we remain focused on driving order growth, expanding our backlog and delivering continued revenue growth across the business while leveraging the expanded technology base we've built. We are also continuing to invest in and advance our manufacturing capabilities to support scale and meet increasing demand.

On the technology road map, advancing the autonomous border protection infrastructure program remains a major focus. This has significant strategic and financial potential, and we expect it to be an important driver for the business as it progresses. In addition, we are rapidly developing what we refer to as a shared killer interceptor, and we are optimistic about our ability to field the competitive system in what is becoming a very important market segment.

Beyond our core road map, we have also established several new growth platforms that we believe offer meaningful upside to our current financial outlook. Importantly, we have not yet incorporated material contributions from some of these initiatives into our forecast. That includes the layered ISR go-to-market efforts with Palantir, where we are seeing encouraging early engagement and believe this could become a meaningful growth driver as programs develop.

Similarly, Amberg is actively pursuing opportunities in Germany and Ukraine. While we have not yet included revenue from this joint venture in our outlook, we are optimistic about its potential as visibility improves. So overall, we see multiple avenues for upside beyond our current plan as these platforms begin to convert into orders and revenue over time.

We will surely keep you updated on this progress. Let me spend a moment on our strategic growth program and M&A pipeline. Our programmatic M&A effort, led by Mark Green continues to be highly productive. We've built a disciplined team and process that spans technical, market, financial and legal expertise, along with dedicated post-merger integration processes to ensure we can efficiently scale these businesses once acquired.

As we continue to demonstrate execution, we are seeing increasing inbound interest, including from larger and more mature companies and their investors. We view this as strong validation of our platform and strategy. We believe our ability to source, execute and integrate acquisitions is becoming a core competitive advantage for Ondas. Our pipeline remains robust with over $500 million of potential revenue across active opportunities.

That said, our focus is not on driving the size of the pipeline, it's on quality. We are highly selective and prioritize targets that are strategically aligned, financially accretive and that enhance our systems of systems road map.

The opportunity set is much larger, and we are careful on how we prioritize and sequence our M&A activity. In terms of capital allocation, we've utilized equity in recent transactions as a way to align with sellers and reflect the value of the platform we are building. At the same time, we remain flexible.

We will deploy both equity and cash as appropriate, while maintaining a strong balance sheet. And finally, on the topic of dilution versus accretion, our focus is always on value creation. When we issue equity, the key question is what we are acquiring in return. As we've outlined, we believe these transactions are highly accretive and and we will continue to demonstrate that through our results over time. Let me now turn to our updated financial outlook.

We are increasing our 2026 revenue target to at least $375 million which represents more than a doubling of the outlook we provided at our Investor Day in January. This increase reflects upside across both our core business and the contribution from the acquisitions we have announced in the first quarter.

For the first quarter, we expect revenue in the range of $38 million to $40 million, representing strong year-over-year growth. The full impact of these acquisitions will build over time. In Q1, Bird is the only newly acquired company expected to contribute meaningfully with the majority of revenue from acquisitions ramping from Q2 through the rest of the year.

We also expect backlog to increase significantly in the first quarter, driven by continued order momentum in the core business as well as the addition of backlog from the newly acquired companies.

From an investment perspective, we will see increased operating expenses at both Ondas Inc. and OAS in the first and second quarter of 2026, as we continue to build out the team and infrastructure required to support a much larger enterprise. We view these investments as essential to enabling the next phase of growth, and we expect them to drive meaningful operating leverage over time as revenue scales.

Importantly, we are maintaining our path to profitability. We expect our product companies to reach positive EBITDA in the third quarter of 2026, followed by OAS in the third quarter of 2027 and Ondas Inc. in the first quarter of 2028. And as we begin to integrate our recent acquisitions and realize the benefits of scale, we believe there is potential to accelerate these time lines.

So overall, we believe our outlook reflects a business that is scaling rapidly with strong visibility, increasing momentum and multiple opportunities for upside as we move through 2026 and beyond. Finally, the unmanned and autonomy sectors are transitioning from development to deployment with end markets still early in a 10-plus year adoption cycle and increasing urgency for industry maturity.

This creates a generational opportunity for leaders like Andes, reinforcing our focus on executing the core and strategic growth plan. With that said, I want to thank you again for spending the time with us.

Operator will now move to take investor questions.

quarter

[Operator Instructions] Our first question today comes from Austin Bohlig from Needham.

Congrats on all the solid results. The first question I had is just given kind of the increasing conflict we're seeing in the Middle East, how has the business may have progressed or order flow or interest since that conflict began?

Austin, thank you. So without a doubt, that is driving more activity. So we're seeing more demand, more RFP, more urgency. And of course, that's also supporting the long-term thesis we have around how we're building our business and the markets and capabilities we're focused on. I'll ask Meir Kleiner maybe to give some more texture to that answer. However, Meir?

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

We have seen a very strong demand right now, particularly for the system that we are already proven and deployed around the world. By the way, looking ahead, we don't see this as a short-term dynamic.

If anything, once the corn conflicts and there will be a border recognition that these threats are not going away. So the budget for the government and defense organization is going to increase dramatically, and hopefully, we will be there to supply our capabilities with our tech companies. Thank you.

All right. And I guess just one follow-up for you guys. Really appreciate the color on kind of the revenue contribution from these recent and sizable acquisitions. For that kind of number you guys provided in the deck. Should we assume that's what's going to be recognized? Or is that kind of like a pro forma revenue number?

So we've given you the target of at least $375 million. We have quite a bit of visibility we did share some details around what I do believe and I was emphasizing our conservative outlook that we underwrote for the acquired companies in Q1 and I'd highlight that those numbers are full year outlooks. So you got to consider the fact that we're going to only be consolidating the bulk of them over the last 3 quarters of the year. So that's the way to think about the math there.

Our next question comes from Jon Siegmann from Stifel.

So the multilayered ISR, I appreciate all the details on worldview. It's been a challenge for the military and industry, just a sticky single pair of these sensors together. Can you comment a bit on how the customers are going to procure this ambitious capability? And is it possible we'll see some near-term contracts? Or is this something that on those my participators a prime? Or is this as a sub to Palantir or somebody else?

All right. Great question, John, and I'm going to ask Ryan to provide some context. Ryan?

Yes. John, great question. So in the near term, we expect contracts for the single domains and procuring intelligence surveillance and reconnaissance as a service from those domains. 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.

So we're seeing movement in the customer base to procure multi-domain through single sources. And the partnership with Palantir enables us to provide a portal for customers to be able to access that multi-domain ISR. So it will take some time to build out the Palantir layer of the technology. But once that's built out, we'll be able to start offering multi-domain ISR as a service to specific customers.

All right. And I'd emphasize that the state it in the Stratosphere that's operational today, and it is leveraging some of the work that WorldView has done with Palantir so we're demonstrating the value and we do believe that we're going to be able to integrate it into other layers that Ondas has and will have in the future. .

And then maybe just one on straw, great acquisition there. I think most of those are familiar with the HERO system. But our sense is it's more diversified than just that product line. You mentioned $1 billion IDIQ, which is the hero. Just can you talk a bit more about the other products they produce.

Yes, Jon, that's a great point. The Hero is an important product line and program from straw, but they do have a bunch of other active systems that they're selling and quite a lot of capabilities around that. So Mark, can you provide some more context around the other things that Mistral is bringing.

So it was hard to hear. Can you repeat on the question?

Yes. So the question there is on the straw in addition to the loading munitions, the Hero systems. The other revenue-generating platforms.

Yes, they have not only a lot ammunition, also ISR and also ground vehicle I think that we talked about it before that we work in this trial in all portfolio companies, also in the UTV and ISR done and can Worth. .

So I think it's the oral system. And this is specific in the segments that we are working. And this was one of our interest when we're talking about Yes. And now the baton not only [indiscernible]

Our next question comes from Timothy Horan from Oppenheimer.

Eric, can you give us a sense of these acquisitions, what you think the organic growth rate is? And also, can you just talk about the bottlenecks to growth? Is it go-to-market? Is it your manufacturing capacity? Is it just getting yes, any color around that? And then lastly, you have some revenue targets out there for 2030. It seems like you're kind of well ahead of schedule there? Just any thoughts on that revenue target?

Yes. So I'll start with the last observation, and I agree with that. 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. .

So coming back to the first question, we did -- if you look at Ondas in the core as it was ending the full year pro forma revenue would have been in the $90 million to $95 million range. So clearly, we were looking for significant growth when we started the year, and we shared that $175 million target at our OES Investor Day in January. And I would say that in our increase here to 3.75, we see that core growth even stronger.

So we feel really good with our visibility, and we think the growth is going to remain significant going into '27 for shore and beyond.

And what's the bottleneck to growth? Is it -- I mean, do you have the manufacturing capacity? Do you have the salespeople? .

Yes, I don't -- I mean, there's no bottlenecks to what we've laid out. But of course, we're going to have to continue -- because we have the capacity identified and we have been building aggressively the OAS platform, which we've emphasized on this call today, and we're going to continue to do that.

We're also investing in integration so that the acquired companies can leverage the OAS platform out of the gates to its greatest extent. So at the same time, of course, this is quite a significant revenue ramp in business opportunities. So we're going to have to build the manufacturing capacity in partners as we're going forward.

We'll keep you posted on how we're doing that. But I don't think we have any unique bottlenecks, and we can deliver what we're targeting for the year for sure.

And just lastly on WorldView. Are we talking thousands of balloons in the stratosphere, ultimately, our tens of thousands, hundreds of thousands, I mean, how are you thinking about this? And can you create a cellular network off of these stratosphere filing?

Yes. Great. So Ryan, maybe you could share a couple of things a bit about the as-a-service element of this and then add some details around the various payloads that we see customers engaging in and how the markets may open further for other use cases.

Yes, happy to. Thanks for the question. So the way we operate today is we provide data and intelligence as a service. And so essentially, the way that I've looked at it in the past is data is the new oil, the more data you produce and process, the more customers you can create on a per-flight basis. .

So when we're looking at the market, we're seeing some great movement in the U.S. Air Force moving towards a program of record. We've seen stated demand that would equate to 250 flights per year just for that 1 customer. In addition to that, we're seeing movement on gold and gone where the Stratosphere is an important layer to the overall Golden Dome architecture. Our assessment is that golden done will make up hundreds of flights per year. for that specific capability.

And then when we think about kind of the broader market, those 2 specific customers would make up upwards of 450 flights per year. we see equivalent capabilities necessary for Australia, Canada and other allied partners around the world. And then we're building out a commercial capability as well. where our technology can be used for things like oil and gas pipeline monitoring, where we can be detecting methane.

And we see use cases for monitoring railways and power lines. anything that's long linear infrastructure, the Stratosphere has a unique advantage of being able to see a significant amount of that infrastructure in a single image.

And having the right sensors gives us the ability to turn the status here into a very useful asset for, like I mentioned, detecting things like methane, obstructions on railway fall in power lines or foliage encroachment on power lines, things like that.

And then on the communications question, yes, absolutely. We can provide a unique mesh networking and/or 4G, 5G connectivity from our platforms. So as we start to build out the commercial side, we'll leverage the size, weight and power of the stratelite to be able to carry multiple sensors or multiple capabilities on a single flight that ultimately increases the gross margin per flight and produces significant revenue on a single flight.

So we're quite excited about the number of use cases, excited about the growth and not just the defense market, but the commercial market as well. 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.

Our next question comes from Max Michaelis from Lake Street Capital Markets.

If we go back to the core business, Iron Drone and Optibet, I know you gave out guidance. I think it was last fall or summer. You talked about a $25 million and $45 million in 2025. I was curious if you can kind of update us on what that looks like now. I know just with -- I just kind of want to get an idea of sort of the organic growth rate of the original core business.

I think the -- what I'll say, Max, is that the growth rate there is similar to what I've outlined by giving the tools with the 90 to 95 core, which is essentially doubling this year. And what I'll add is that we're seeing particular strength on the counter drove side with both Iron Drone and Centrix and that's going to be growing faster than Optimis. .

Okay. And that kind of leads into my next question. I was just hoping you can kind of call out maybe some of the 2025 acquisitions, ones that are sort of outperforming your original expectations is probably just soon to calling you out on acquisitions, but anything that helps kind of around the 2025 acquisitions.

It's a good question. I think I can say we're very happy with all the companies and how they're performing. I did highlight in the prepared remarks, Centrix and Form and I've done that because those are some deals that we've announced recently during the fourth quarter. With that said, Robo team is seeing significant demand in apparel motion as well. So I'm expecting that we'll be able to demonstrate that they're outperforming as well to you this year. So we're pretty happy with the portfolio we've put together.

Our next question comes from Michael Legg from Ladenburg.

Congrats on all the success to date. Can you talk a little bit about the integration of all these acquisitions and how you're doing that internally, keeping management, et cetera? .

Yes, sure. So we have established at both OAS and the onus level, what we call PMI activity. So it's the post merger integration activities. And that's a very important part of the story there. It's making sure communications across the companies and up and down, right?

So we can get that operating leverage is optimized. So we're going to continue to invest in that PMI activity because it's critical otherwise, we're very happy with retention, and that's something we're obviously sizing up before we enter into acquisitions.

I think what we see from the companies we acquire is that there's a lot of excitement to join on to us because we're creating more opportunities for them to really grow the business that they've worked so hard to create. So I think the talent that's coming on and the way we're motivating them.

Obviously, there's compensation plans that do that properly but it's an exciting place because we're putting together this go-to-market model that makes the original objectives from these leadership teams around building their businesses, everything.

We're just creating more opportunity for them. And I think that's just going to reinforce as we continue to deliver on the operating and financial plan we have shared with you today.

Great. And then just a follow-up question. On the systems and systems approach, can you talk about how much of that you think will come from Andy's internal systems? And how much would be third-party coordinations? So if you look at the internal or the core, as I describe it, that's going to continue to grow.

So as I said on the call, if you were with us 12 months ago, we were, of course, very focused on Optimus and iron drone. As we ended the year, we had built out a UGV portfolio. We've expanded our aero platforms in Canada Drone Systems, so that becomes the new core.

And then, of course, in the first quarter here, we've added even more exceptional platforms that do expand and they deepen and expand the systems and systems capabilities.

And Ryan shared a graphic there, which I thought was really important. It showed all the layers. And we're going to begin to pull them together. So I think you should expect us to add more layers, more valuable platforms that fit that model I shared around how they become very accretive to the operating plan, very accretive to customers, right?

Customers are looking for companies like Ondas and Palantir to bring this together to make it scalable and valuable -- so we'll continue on this path.

Our next question comes from Alex Latimore from Northland.

Great information here. Thanks for putting this together. This is very vivid. My question here was regarding the acquisition cadence. I was wondering if you could step through what the acquisition cadence will look like for this year and then potentially going forward and then which capabilities are the highest priority in that pipeline, whether it's hardware, software or different manufacturing assets.

Yes. Good question. I'll start with the latter, and then I'll get to the cadence. 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. So I'm expecting to be able to bring more of the table there as software enablement becomes even more valuable.

In terms of cadence, I don't -- March was an interesting month because we had a bunch of deals. Many of them had been started months before and came down and we were able to get into definitive agreements right around the same time.

So I don't -- I wouldn't measure 3 or 4 deals a month. At the same time, there is active in conversations. And they could be bunched. They could be sequenced with greater time in between. It just remains to be seen but we will continue to pursue the strategic program because it is so valuable.

Understood. And then regarding the C2 platform, I was wondering what your intentions are there? Are you planning to build or acquire a sort of single pane of glass C2 platform to connect all your systems? Or is that where Palantir comes in? And then what level of customer demand are you seeing for that.

Yes. So it's both. So clearly, if you think about the systems and then there's the systems of systems, each autonomous system has its own command to control because these can be deployed as infrastructure or for specific use cases by specific customers. .

We need to make those -- each system be able to be integrated with more -- with other systems, right? So we need to be able to plug into other command and control architectures and we're able to and then, of course, we're going through the Palantir activity, which is the broadest integration around system to system.

So you're going to start to see us -- it's really all of it. It's really at the system level, it's at, say, regional deployments and then there's the wider deployments like the Palantir Maven system that becomes really important. So there's internal development, and you'll also see us -- there's opportunities for us to bring in high-value capabilities around command and control.

And we'll see if that comes to fruition. But we don't -- we do have -- our systems are designed to be plugged and play by and large, with what the customer needs to deploy, right? So we can fit into their architecture. We can solve the problem for them or we can fit into what they need us to fit into.

And our next question comes from Matthew Galinko from Maxim Group.

Congrats on the results. Is the Amberg structure is something you can repeat in other regions? Or is it something you look to do elsewhere?

It's a good question. So yes, it's something we can repeat. I'm not sure if we will. Europe is -- was a particularly interesting opportunity for us because we have been building out our capabilities around systems, and you've heard us speak really strong about the need to be local.

And as we started to get to know Heidelberg, who is our partner and understand their capabilities, it really made a lot of sense for us to join forces. So could you see us do that in other markets?

I think so, but maybe we'll see how we proceed with Omberg first. I don't see another market with as the same significance to do a joint venture as we do with what we're doing with OBC.

0Got it. And my follow-up is, as we look towards 2028 for positive adjusted EBITDA. Can you kind of point to where we'll see OpEx leverage, kind of what line items? Like are we going to continue to see R&D kind of steady with integration and then program development or kind of where will we see the leverage hit? .

Great question, and it's going to be hard for me to be specific. I do think R&D, we're going to continue to invest there. And I don't have a target at the moment for what that is going to be as a percentage of revenue. I think we're going to get sales and marketing and supply chain leverage.

We're going to get gross margin leverage. So the thesis here, and I think we're demonstrating that if you look at the manufacturing partnerships and the relationships we're building, is that when you can -- we can bring multiple platforms in aerial ground platforms are really for a manufacturing partner and a component supplier very similar you get -- become more important to your component vendor, you become more important to your manufacturing partners.

And that -- in the scale you provide to them, they can turn back to you with better pricing and cost of goods sold and things like that. So I think the leverage comes in cost of goods sold. It's like -- it's going to come with sales and marketing because we're going to be getting larger deals, right, over time.

And then there's the field services as well when you have -- I'll take into earth as an example. Into [indiscernible] we have a robo team. We have apparel motion. We have now built a very serious ground portfolio, and we can have the synergies around how we support customers in the field, right?

We have folks out to service the dozers from into worth, they can be the same folks who can do that with UGVs, so I think that -- those are the sorts of things we'll look at for efficiencies around the financial model.

And with that, we've reached the end of today's question-and-answer session. I'd like to turn the floor back over to Eric Brock for closing remarks.

All right. Thank you, operator. And as we wrap the call, I want to say thank you again for spending time with us today. As we've discussed, we have had a strong start to and we're focused on sustaining that momentum throughout the year.

We look forward to providing you more updates along the way as we do, and we're going to get back to doing the work, and we look forward to speaking again soon. Have a great day.

And with that, ladies and gentlemen, we'll be concluding today's conference call and presentation. We thank you for joining. You may now disconnect your lines.

Welcome to the Ondas Holdings, Inc. OAS Investor Day. [Operator Instructions] Before we begin, the company would like to remind you that this call may contain forward-looking statements. While these forward-looking statements reflect Ondas' best current judgment, they are subject to risks and uncertainties that could cause actual results to differ materially from those implied by these forward-looking statements. These risk factors are discussed in Ondas' periodic SEC filings and in the earnings press release issued today, which are both available on the company's website.

Ondas undertakes no obligation to revise or update any forward-looking statements to reflect future events or circumstances, except as required by law. During this call, Ondas will refer to certain non-GAAP financial measures. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles. This non-GAAP information is provided as a supplement to, not as a substitute for or as superior to, measures of financial performance prepared in accordance with GAAP. However, Management believes these non-GAAP measures provide investors with valuable information on the underlying trends of our business. Please note, this event is being recorded.

I would now like to turn the presentation over to Eric Brock, Chairman and CEO. Please go ahead.

I want to get started by welcoming you to our OES Investor Day. We appreciate you joining us today and for your continued interest in Ondas. I'm happy to be joined today by key members of our leadership team, including Neil Laird, our CFO; and Pat Houston, our General Counsel, who was recently named our Chief Operating Officer.

From our OES business unit, we are joined by Oshri Lugassy, Co-CEO of OES; and Meir Kliner, President of Ondas Autonomous Systems, as well as Avshalom Amossi, our CRO, who joined us recently to help lead and drive revenue generation across our product companies. Mark Green, our Global Head of Corporate Development and M&A is also with us today to share important updates and context on the progress of our corporate development efforts.

As we get ready to dive deep into strategy, products and financial data, I want to briefly remind our investors who Ondas is and what fundamentally guides our mission. Ondas is built around a core principle, integrated autonomy that delivers real-world defense, security and intelligence outcomes. We are not a collection of point solutions or experimental technologies. We build and deploy operational systems designed to protect assets, infrastructure and populations in complex, regulated and often contested environments. Defense, security and intelligence are not separate markets for us, they're interconnected mission domains. Our customers are not buying individual drones, ground vehicles, sensors or software modules, they're buying outcomes, situational awareness, protection, resilience and operational continuity. That reality is what drives our systems of systems approach. Ondas designs, integrates and operates autonomous aerial platforms, ground robotics, sensors, communications, software and command and control as a unified operating architecture. Each layer is valuable on its own, but the real differentiation comes from how these capabilities work together, scale together and evolve together over time. And of course, this is not static. Our road map is intentionally structured around the continued evolution of the systems of systems, adding new platforms, effectors, sensing modalities, autonomy and software capabilities. We do this while maintaining interoperability, regulatory compliance and operational reliability. We are aggressively assembling the pieces to meet the rapidly evolving market requirements now. I want to emphasize this, the timeliness for customers is now. This integrated approach also enables our dual-use strategy. Many of the systems that secure military installations and borders can be deployed to protect critical infrastructure, industrial sites and public safety operations globally. That common architecture creates scale, resilience and long-term relevance across markets. As we walk through today's update, this frame is important. This is why we are -- we have changed the name of the company to Ondas, removing the holdings from our name. This name change to Ondas is official today. Ondas is not a hodgepodge collection of assets or a financial construct. Ondas isn't built around a single product cycle or a single procurement program, we are building a durable, scalable autonomous systems platform aligned with the long-term defense and security priorities of the United States and its allied nations. So that's the focus, integrated autonomy, systems of systems execution and mission-critical outcomes. This is what shaped our progress in 2025 and it also underpins the strategy, investments and financial outlook we will discuss for 2026 and beyond.

Let's now turn to the agenda. As a brief reminder, the focus on this call is to provide a comprehensive update on our OES business unit. In certain areas, we will share select financial data and where we do, that will be on a consolidated basis so it does include Ondas Networks. Our presentation today will start with a brief introduction to set the context for today's discussion and highlight what has changed meaningfully since our last update. From there, we'll walk through our technology capabilities, focusing on how our platforms are being deployed today and how they differentiate Ondas across defense, security and critical infrastructure markets. We'll then cover our go-to-market strategy and operating platform, including how we are scaling sales execution, customer delivery and operational infrastructure to support sustained growth. Next, we will provide an update on pipeline and business development, highlighting demand trends, customer engagement and program activity across our core markets. We'll then move into the strategic growth program, where we'll discuss how we are using disciplined investment in acquisition activity to accelerate platform depth, scale and long-term value creation. Following that, we will provide a brief update on Ondas capital, including its strategic objectives, progress to date and how it supports our broader ecosystem strategy. We'll then conclude the prepared remarks with our financial outlook, including our expectations for revenue growth, investment priorities and the path forward. Finally, we'll open the call for investor questions.

Let's transition now and reflect on 2025, which was truly a transformative year for Ondas. In fact, I believe that's an understatement. During 2025, we launched our core+ strategic growth plan, and I am proud to say we delivered against it. We evolve OAS from a set of strong but narrow autonomous drone systems into a multi-domain global autonomy platform. Of course, this shift matters because it meets our customers where they need technology and solution providers like Ondas. As Oshri highlighted recently, customers are no longer buying just products, they're buying integrated mission-critical systems that operate across air, ground and information domains. Operationally, we delivered. We achieved meaningful revenue growth, expanded our global business development footprint and converted pipeline into programs with defense and homeland security customers. At the same time, we invested ahead of near-term revenue to build the operating leverage required to scale. That includes manufacturing readiness, systems integration, field operations and program execution. Strategically, 2025 also marked the launch and execution of an accretive investment and acquisition program. We did this with an extremely disciplined capital deployment program. We have, for a long time, held the view that the unmanned and autonomous systems market was fragmented in subscale and would be to organize. In 2025, customers and vendors alike along with investors, have now begun to understand that time is now. And the evidence suggests that a major cycle has begun where scale systems and systems providers will emerge to drive the scale required to drive adoption in the massive end markets we address.

Equally important, we significantly strengthened our competitive position at Ondas through building a rock-solid balance sheet. That capital foundation allows OAS to operate from the position of strength supporting customers, executing customer programs and continuing to invest while many others in the sector are capital constrained. And believe me, there remains serious capital constraints in this sector outside a handful of well-funded competitors. This is, of course, the nexus of the significant opportunity for Ondas. The result is OAS exited 2025 fundamentally changed. We are now positioned as a high-growth global leader in defense and security, unmanned and autonomous systems with scale, capital and integrated capabilities required to win in the upcoming investment cycle.

In 2025, we also delivered on our operating and financial commitments to our investors. I am particularly proud of our team and our performance against our financial model, which significantly exceeded our prior expectations. As I share the numbers, I want to highlight that this financial data represents management's preliminary and unaudited estimates. It's also consolidated. So these financial figures include Ondas Networks, which despite making important strategic progress in 2025 did not produce meaningful revenue and fell short of our original goals for that business. With that said, I am pleased to share that Ondas expects to report very strong results for Q4 2025, achieving record levels of revenue and backlog with strong upside to prior targets. We also entered the year with an extremely strong balance sheet and liquidity position. We expect Q4 2025 revenue in the range of $27 million to $29 million. This represents 51% upside to our earlier target and a near sixfold increase from Q4 2024. For the full year, we expect to report revenue in the range of $47.6 million to $49.6 million. This represents 23% upside to our prior full year target and is also a near sixfold increase from fiscal 2024. Importantly, during 2025, we strengthened our relationships with customers in long-cycle markets and programs and grew our backlog significantly in both size and quality. We entered 2025 with an estimated backlog of more than $65 million, which was nearly triple the level at the end of the third quarter of 2025. The backlog has a more diverse mix of customers and products and is accompanied by a much larger and more mature customer pipeline. That backlog and pipeline strength provides strong visibility on growth and supports our confidence as we enter 2026.

Finally, we dramatically strengthened our liquidity position. Pro forma cash at year-end was over $1.5 billion, adjusted for last week's $1 billion equity offering. This is a transformational balance sheet for Ondas with this liquidity giving us the ability to accelerate both our core and strategic growth programs from a position of strength. Again, supporting customers, scaling operations and executing our corporate development and system and systems road map as we move into 2026. As I just outlined, the business strengthened significantly during 2025, and we entered 2026 from a position of real momentum in strength. Based on current visibility, we are targeting full year 2026 revenue of $170 million to $180 million, which includes a modest contribution for Ondas Networks. That represents approximately 3.5x our preliminary expected revenue for fiscal 2025 and reflects exceptional growth across our core platforms. This growth is being driven by strong adoption across our portfolio and is enabled by the technology, systems integration and service delivery platform we are building at OAS. That platform is designed to support scale deployments, long duration programs in multi-domain operations. Of course, we will walk through that maturation of the OAS operating platform in great detail today.

Importantly, the demand environment remains very strong, as we discussed over the last several quarters, we believe the unmanned and autonomous systems sector has entered a multiyear growth cycle driven by defense, security and infrastructure priorities globally. Within that environment, we see potential upside to our 2026 outlook. We think these targets are conservative. Our target markets are entering accelerated growth curves, we are pursuing large multiyear programs, including government to government opportunities. Further, we have robust strategic investment in acquisition pipeline that can further expand our platform. In short, we believe this will be a very strong year for our industry, and we expect Ondas to leverage these tailwinds as the investments we have made in technology and operations drive very strong growth in 2026.

Now let's spend a few moments to focus on what I think many of you may have been most interested in learning when tuning into this call. What is Ondas going to do with all that cash? This is an extremely important question, and I can assure you we feel a great responsibility to deploy this capital for its greatest impact for our investors. I want to reiterate that the balance sheet as well as the long-term liquidity we built with the business and our plan on extremely strong footing. We have more than $1.5 billion in on-balance sheet cash today. In addition, if we execute on our growth plan and our share price performs, we have the potential to access up to approximately $4.9 billion of additional capital through the investor warrants. Again, those warrants only come into the money if we perform. If the shares rise above $20 and $28 strike prices. And that creates a very strong alignment between our investors and the company. We are highly motivated to perform for our shareholders. If we execute well and unlock that additional capital, it provides even more fuel to support growth, scale and long-term value creation. Quite simply, this liquidity position is a significant competitive advantage. Customers prefer well-capitalized vendors who can support large programs over time. Partners prefer well-funded counterparties who can invest and scale alongside them. And talented people want to work for companies that are stable, ambitious in position to win. We fully intend to put this capital to work. Our objective is to accelerate our core+ strategic growth plan and to do so responsibly and purposefully. Accelerate is the theme for 2026. That means continuing to accelerate the building of our team, accelerating the maturity of our supply chain and customer delivery capabilities and strengthening the broader ecosystem that supports our platforms. It also means having the financial capacity to accelerate our strategic acquisition program, and Mark is going to provide more context on that a bit later. In short, we are capitalized to win, and we intend to use that capital for good by accelerating scale across every element of the business and delivering on the opportunity in front of us.

You may recognize this slide, we used it at our Investor Day last July. The reason it remains relevant is simple. The market has not changed its requirements. In fact, they become even more demanding. In defense and security autonomy, having excellent technology platforms is necessary. However, it is no longer sufficient. Again, technology is required, but not sufficient in of itself. Winning takes a lot more than just having the best platform. Customers expect proven, valuable mission-ready systems as a baseline, winning at scale requires something much harder. An integrated operating platform that can support large deployments, multiyear programs, global customers and sustained performance. That is the opportunity we outlined last summer. It is exactly what we've been executing against.

This slide captures the full scope of what it takes to be a scaled operator serving complex markets, delivering advanced technology capabilities in operating across sales, manufacturing, supply chain, regulatory, field services and sustainment, all supported by a strong financial platform. Today, our team will outline the progress we've made on this front, our road map ahead and the foundational operating infrastructure required to support a significantly larger and fast-growing revenue base.

Here's another schematic you've seen before. And we're using it again for a reason. It captures the scope and intent of our strategic growth program and the value we are building over time. At its core, the program is about accelerating our evolution into a true systems of systems provider with autonomy at the core. Around the wheel of the core capability areas, we are intentionally deepening current UAS, payloads, command and control or C2, autonomous platforms and communications. These are the building blocks that allow us to deliver integrated resilient and scalable defense and security solutions. Our strategic acquisition program is designed to add depth across these domains, extend our reach and amplify the value of the overall platform. The objective is faster growth, greater operating leverage and an accelerated path to profitability by integrating mission-critical capabilities rather than assembling point solutions. And then the team will provide an update on how this program performed in 2025, where we executed successfully in how those additions strengthen the platform. We'll also outline a road map to 2026, including how we intend to continue building scale, capability and differentiation through disciplined strategic investments.

With that comprehensive introduction, I will now turn the call to Meir, who will spend some time updating you on the new additions to our portfolio and how they are adding breadth and relevance to our systems of systems evolution. Meir?

Thank you, Eric. In the next following slides, I would like to capture the core of the Ondas strategy of integrating multi-domain technologies and the great market opportunity we are facing. Ondas is building a multi-domain defense and security platform by bringing together best-in-class product companies, each already winning independently in its own market and integrating them into a single scalable system of systems architecture. Currently, we are integrating technology companies across air, ground sensing, couter UAS and robotics. These platforms are proven operational and deployed today. What differentiates Ondas is the integration layer, unified software, shared command and control and coordinated mission across domains and different environments. This approach allows customers to start with a single capability and expand over time into a border multilayered solution. It increases mission effectiveness, expand deal size and drive recurring growth through land and expand adoption. By leveraging a common C2 backbone, shared data and cross-platform workflows. Ondas enables coordinated operations that individual point solutions simply cannot deliver on their own. The result is a highly scalable operating platform, addressing multiple large and growing markets, representing a multibillion-dollar opportunity across defense, homeland security and critical infrastructure. To understand the mutual potential of these technologies, I would like to qualify the scale of the opportunity we are addressing when looking at the potential of the segments of these technologies and the combined market size they are representing.

Based on independent research conducted by Frost & Sullivan and our internal market adjustments, Ondas core addressable market across counter UAS, unmanned aerial systems and unmanned ground vehicles represent a combined global TAM of approximately $117 billion over the 2025 to 2030 period. This reflects a conservative view of the opportunity, given the additional upside and new use cases created as these technologies are increasingly combined into integrated multilayered solution with capabilities that are not yet fully measured or reflected in traditional market research. We will elaborate on the integrated systems potential in the upcoming slides. The largest portion of this market is UAS and UAV platforms when looking at the focus areas [ of Ondas ], which are currently tactical drones up to Class III. This represents approximately $50 billion of cumulative market opportunity over the same period. This demand is driven by sustained global investment in unmanned systems across defense, homeland security and critical infrastructure, including ISR, resistant surveillance and loitering munition related procurement. Counter UAS represent a rapidly expanding priority market of approximately $50-plus billion over the 2025 to 2030 time frame as drone threats continue to proliferate across military-based borders, cities and sensitive infrastructure worldwide. We believe currently markets research materially understands the true scale and urgency of this demand as threat evolution and procurement cycles accelerate in practice. The UGV segment estimated at approximately $16 billion over the same period, supports multi-mission ground autonomy, including combat support, ISR, EOD, force protection and de-mining related operations. We will dedicate the time in the upcoming slides to explain this market opportunity in more details and outline why we believe it is already expanding into a meaningful and strategic segment across facilities, borders and compound environments.

In addition to the total addressable market, we have also defined a clear and disciplined view of our serviceable available market based on where Ondas is actively competing today and where we expect to deploy integrated solution over the near- to midterm. Based on company estimates, Ondas current serviceable available market is approximately $7.5 billion annually, reflecting the subset of the global market that align directly with our product maturity, certifications, manufacturing footprint and active customer engagement. Within this SAM, counter-UAS represent the largest component at approximately $5 billion, driven by immediate demand for protection of military bases, borders, airports ports and critical infrastructure, where Ondas Iron Drone and integrated CUAS capabilities are already operational or in advanced procurement discussions.

The UAS segment represent approximately $2 billion within our SAM, focused on autonomous tactical drone systems for ISR model security, persistent surveillance and mission-critical operations where our platforms are certified, deployed and scalable today.

The UGV segment represents approximately $500 million, reflecting early stage but rapidly growing demand for unmanned ground systems supporting border protection, force protection, EOD, de-mining and integrated air-ground defense architectures. Importantly, this SAM does not assume future platform classes or speculative use cases. It reflects markets we are actively addressing with existing and near-term capabilities and it provides a practical baseline for growth as customers increasingly adopt integrated air-ground solutions across those domains. I will start with counter-UAS, which is one of the fastest-growing and most urgent defense and homeland security priorities globally. The threat environment has changed fundamentally. Small, low-cost drones are now widely available and our win used for surveillance disruption and direct attacks against military forces, airports, critical infrastructure and population centers. What differentiates Ondas in CUAS is that we do not offer a single point solution. Instead, we deliver a complete layered counter-drone architecture that spans detection, identification tracking, soft mitigation and hard mitigation with very low collateral damage and very high level of autonomy, make our solutions to be effective available always and operating also in complex civil environments. Through our acquired technology companies, we bring together best-in-class capabilities across each stage of the kill chain, From RF-based detection and identification through cyber mitigation and autonomous interception with minimal collateral damage under single domain command and control integration. The counter-UAS sequence begin with detection. We apply Sentrycs advanced technology to identify aerial activity based on radio signals and back it with designated third-party radars at long range even in clutter environments such as airports or urban areas. This provides early awareness without relying on a single sensor type. Once detected, the system moved to identification, using RF intelligence and sensor fusion. The platform determines whether the object is cooperative, noncooperative or hostile and classifies the threats in real time. we are using our combination of Sentrycs capabilities and optical identification with Insights optical sensors. Following identification, the system enters the tracking phase. The target is continuously tracked while the system evaluates mitigation options. Soft mitigation is applied first when appropriate, including cyber-over-RF measures to take control of the hostile drone and land it to the ground without physical engagement or damage. If soft mitigation is ineffective or not suitable, the system escalates to hard mitigation. This is where the Iron Drone radar autonomously launches, intercepts the hostile in mid-air, capture it with the net and safely remove it from the airspace or parachutes it down with minimal collateral damage. All these steps detect, identify track soft mitigation and hard mitigation are coordinated through a unified command control layer, enabling automated rapid decision-making. Without operator overlay. What makes this solution unique, it's not any single component, but the orchestrated sequence of a closed loop. End-to-end counter-UAS system designed for a continuous real-world operations in high-risk environments.

Our CUAS system of systems is designed to operate together as a one coordinated solution, managed through a unified C2 layers and optimize for continuous real-world operations in complex environments such as airports, borders, military bases and urban areas. Sentrycs provides the soft-kill layer, delivering early detection, identification and control and radio-controlled drones through RF-based intelligence and mitigation. Iron Drone complements this with an autonomous hard-kill capability designed to intercept and safety neutralize any hostile drone, including fully autonomous systems that are immune to RF disruption. Together, these platforms create a closed-loop detect to the fleet architecture, coordinated through unified commanded control layer that manages sensing, decision logic and interception in real time. The result is low collateral non-kinetic solution that enables continuous operations in sensitive environments, such as airports, urban areas and critical infrastructure. This combination is what positions Ondas as one of the few companies capability of delivering a complete scalable and operationally proven CUAS system, not as individual products. but as a fully integrated defense capability.

I will now move to our UAS segment technologies and explain how our aerial platforms work together to address a wide range of missions. Ondas UAS portfolio is built around flexibility, resilience and autonomy. Each platform can support ISR, assault and additional mission profiles while operating as part of a broader integrated aerial ecosystem.

At the infrastructure level, the Optimus system is the backbone of our UAS offering. Optimus provides persistent 24/7 availability with a very short response time, enabling mission ranging from ISR and perimeter security to mapping, inspection, targeting support and other on-demand aerial applications. It's fully autonomous operation allow customers to deploy multi-mission aerial capability as a standing infrastructure rather than as a one-off assets.

Iron Drone add a highly adaptable tactical layer while it's widely known for interception missions. The platform itself is designed to be repurposed for additional area roles. We are already involved in several classified and sensitive programs that leverage Iron Drone's autonomous flight, AI decision-making and precision maneuvering for new mission sets behind counter-UAS. In parallel, we are advancing Wasp as a low-cost attacking drone, designed deliver robust performance at scale. Wasp is optimized for cost effectiveness, rapid deployment and integration into larger operational frameworks, making it suitable for both tactical and asymmetric use cases. A key enabler across these platforms is our in-house capability to manufacture highly reliable fiber optics pooling systems. These fiber optic drones are designed to operate in contested environments, overcoming communication jamming, electronic warfare and line of sight limitations. Importantly, these systems have been developed and validated under real-world combat conditions, providing a significant operational advantage. Together, these platforms from a complementary UAS portfolio combining infrastructure-based persistence, technical autonomy, low-cost attack capability and resilient communications, all designed to support multi-mission LVL operations across defense, homeland security and emerging mission requirements. We will keep developing next-generation of these systems with extend capabilities to address the need of defense and security markets and defense requirements of allied nations.

I will now turn to our UGV segment. Historically, the unmanned ground vehicle market has grown relatively slowly. Ground robots are typically adopted only when risk is high and human exposure is unexpectable. Over the last 2 years, that reality has changed significantly as combat intensity, urban warfare and public safety threats are all increased. As a result, the need for reliable, combat-proven ground robotics has become much more urgent. Through our acquisitions Ondas has assembled a broad and highly complementary UGV portfolio, spanning tactical frontline and infrastructure level ground operations. At the tactical end, we provide compact robots for EOD clearance, tactical bridging and underground first lead missions. These systems are designed for [ swarm ] team, special forces, EOD units operating in confined high-risk environments, including tunnels, buildings and complex urban terrain. For frontline and perimeter operations, we offer larger market platforms supporting force and border protection, combat support and transportation missions. These robots are capable of carrying multiple payloads, sensors and effectors operating of a rough terrain and supporting sustained operations alongside maneuver units. In parallel, we have added a unique and strategically important capability in de-mining and land clearance. Our robotic mine clearing platform enable large-scale clearance of mine fields and contaminated areas combining EVM heavy mechanical system with smart software-driven robotic tools. These positions Ondas to address complex land clearance and post-conflict recovery projects that few groups can execute end to end. Across all of these platforms, the common theme is modularity and cost efficiency. Our robots are designed to carry different payloads and sensors, adapt to multiple mission profiles and reduce risk to personnel while enhancing operational effectiveness. Taken together, this wide array of ground robotics capabilities opens a significant opportunity for Ondas, not only to support combat units, but also to and public safety organizations and homeland security process with scalable and cost-effective unmanned ground systems. Let's take a closer look at our acquired company, Roboteam. They are providing best-in-class tactical robotics portfolio built around combat proven platforms that are already deployed by leading military and security forces. And the compact end of the spectrum are the RT-2 and RT-20 platforms. These are first entry robots designed for rapid deployment in urban and confined environments. They are actively used by U.S. Department of War Organizations and the IDF for reconnaissance, intelligence scattering and first look missions where sending personnel will carry unacceptable risk. Moving up the scale, the RT-200 is a transportable and highly interruptible ground robot. It is deployed by the U.S. and NATO of forces for EOD operations, ISR missions and perimeter security. Its modular design allows it to carry a wide range of sensors, cameras and payloads. Make it into flexible tool across multiple mission profiles. At the heavy-duty level, we offered the RT-1000 and RT-2000 platforms. These systems are designed for logistics, evacuation force protection and frontline support. They can transport equipment, supplies and payloads over rough terrain, operate alongside maneuver units and support sustained operations in challenging environments.

In addition, the MTGR V5 represent a major validation point for our portfolio. It is a U.S. Marines program of record platform based on an advanced RT-200 configuration and reflects years of operational feedback and continuous improvement.

Program of record status underscores reliability, maturity and long-term adoption. Across this entire family of platforms the common teams are ruggedless, modularity and real-world operational use. These are not experimental system. There are proven tools that reduce risk to personnel while expanding the capabilities of military and security units. The footage on this slide shows our robots operating in real combat conditions, supporting ground units, both above ground and underground. These systems are deployed ahead of troops, performing reconnaissance, breaching, EOD and first entry emissions in some of the most complex and dangerous environments. This is the essence of our 'Bots Before Boots", vectoring using robots to go first, reduce uncertainty and protect human life. This combat experience has been instrumental in shaping robotic technology, continuous use in live operation has allow us to refine mobility, durability sensing and control under real fire, real terrain and real operational pressure. As a result, these platforms are not theoretical or experimental. They reflect years of direct feedback from soldiers in combat, translating into highly precise mission-ready capabilities that directly enhance unit effectiveness and survivability. Very few companies globally have this depth of operational experience embedded into their robotic systems. It is key differentiator for the Roboteam and Ondas as a whole. We are eager to bring these proven capabilities to Allied Nation and partners, enabling them to adopt combat validated robotic solutions that save lives and improve mission outcomes from day 1.

Roboteam has built a deep and trusted customer footprint with a strong presence in both the United States and Israel, while actively supporting customers across more than 30 countries worldwide. Roboteams platforms are used by leading military, defense and public safety organizations, including U.S. federal and military customers, Israel Defense Force and national police and security agencies. These customers operate in demanding environments and select suppliers based on performance, reliability and long-term support, non-experimentation. This customer base reflects several important attributes, exceptional resilience of the platforms, world-class product quality and a consistent commitment to service and life cycle support. Equally important, our systems are manufactured in the United States through military standards, providing supply chain confidence compliance with defense procurement requirements and scalability to support larger allied programs. Taken together, this combination of common validation, global adoption and U.S.-based manufacturing positions, Roboteam and Ondas as a trusted partner for Allied Nation, second proven deployable robotic capabilities. The next stage in Roboteam's evolution of robotic support and autonomy is ROBOX, a launch-ready robotic fleet designed to enable rapid deployment of multi-mission unmanned platforms, combining ground and real assets into a single integrated operational system. At its core, ROBOX is an air ground unmanned combat platform that allows forces to deploy robotic capabilities quickly wherever they are needed. The system is continuous enabling fast transport setup and launch in both fixed and expeditionary environments. ROBOX is a mission configured by design. The platform can be adapted for different operational needs. Included reconnaissance, force protection, perimeter control, logistics support and operations in [indiscernible] or integrated environments. In essence, ROBOX translates years of combat experience and robotic deployment into a scalable modular system that allows customers to deploy unmanned force rapidly, safely and with significantly reduced operational burden.

Apeiro Motion specializes in agile, software-driven ground robotics tailored to frontline combat needs for operations in dense, complex and high-risk environments. These platforms were developed based on direct operational requirements from IDF combat units and are designed to operate where traditional vehicles and larger robots cannot. And the foundation of the Apeiro platforms is a modular payload agnostic architecture. This enables rapid integration of sensors and the effectors and allows operators to reconfigure the platform quickly as mission needs to evolve. These systems support a wide range of missions, including ISR, force protection, EOD and combat support. Payload operations includes EO/IR sensors, RF systems, jammers, or body cams and additional mission-specific payloads. Apeiro robotics Dog Scout is a backpackable, quadruped platform designed for high-mobility and autonomous ground operations. It is optimized for maneuvering to ruble,, urban terrain and confined spaces, making it highly effective for reconnaissance and first and remissions and defense and homeland security environment.

Apeiro Spyder is a combat platform, man-packable tracked robot built for obstacle navigation and confined area operations. It can be rapidly configured for ISR, OD and tactical support. And this is particularly for special forces and urban combat teams. A key advantage of Apeiro platforms is rapid reconfiguration and software-driven adaptability and threat operators can uptick payloads and mission logic without replacing the underlying platform, extending system life and reducing total cost of ownership. In addition to the robotic platforms, Apeiro has developed advanced payloads, including combat proven unique fiber optic spools for jam-resistant communications and robotic arms for EOD manipulations and bridging in a complex environment. Apeiro also advancing additional and classified capabilities under active programs, extending autonomy and mission effectiveness based on direct operational requirements.

Lastly, we want to elaborate about our 4M Defense, providing complete services and smart solutions for land clearance by integrated aerial and ground robotic platforms with powerful software tools. 4M has perfected the process of land mine clearance beginning with high resolution aerial mapping, using drone to ticketize mine affected terrain and create and an accurate data is then processed through AI-based land intelligence, which analyze patterns, detect anomalies and highlight suspected other zones that require further attention. That data is then processed through AI-based land intelligence, which analyze patterns and highlights suspected other zones that require further attention. Based on this intelligence, the system generates a software-defined clearance plan, replacing traditional manual and map-based workflows with precise data-driven tasking and progress tracking.

Finally, autonomous ground robotic platforms execute the clearance operations, operating with high accuracy while minimizing risk to human personnel. Together, this close look sequence transforms land clearance into a repeatable, scalable and digitally managed operation, improving safety, efficiency and accountability across large-scale land clearance projects. We see significant potential in 4M's capabilities in this domain as they complete our end-to-end offering for border security and land clearance operations both during active conflicts and in post-conflict environments.

By integrating air and ground systems under a single operational framework, we unlock entirely new mission capabilities, expand the role of robotics in defense operations and enable customers to deploy robot force and scale rather than as an isolated platforms. At the core of this approach, multiple robotic platforms operate together as a single network system, allowing emissions to be executed in a coordinated way rather than through isolated assets. A unified command and control layer, fuses sensors, effectors and data, [indiscernible] platforms, accelerating detection decision-making and respond in complex operational environments, reduce human risk while also lowering overall operational cost. We see a significant opportunity in the market to deliver new capabilities as a unified multilayered multi-domain robotic force.

By abstracting hardware into software, we create a scalable foundation that accelerates integration, unlock new mission capabilities and allows customers to deploy multilayered robotic force as one of system rather than disconnected platforms. This represents the future of Ondas and we have already begun deploying these capabilities across our customer domains. We are seeing strong demand for this integrated software-defined platforms and we are encouraged by the traction we are gaining with customers, seeking combat-proven multi-domain robotic solutions. As we continue to deploy and scale these capabilities we are excited to unlock additional opportunities across our existing customer base and expand into new mission areas. I will now pass the call back to Eric. Eric?

Thank you, Meir. Now we want to transition and update our investors on the build-out of our go-to-market plans and the scaling of our operating platform at OAS. Indeed, it is the operating platform that will ultimately hold the key to our success at Ondas. Building exceptional technology is required, but if you can't deliver at scale at an acceptable cost, you can't win. Since we intend to win, we are making these investments and it's centered around people, processes and infrastructure. I will now turn the call to Oshri, who will provide more context and details. Oshri?

Thank you, Eric. Our focus is on driving operating scale by integrating the OAS core with our acquisitions leadership and talent into a single unified operating platform. We are building the infrastructure for an operating platform that allows us to align global go-to-market execution across our sales teams, partners and customers, ensuring consistent execution as we scale across regions and markets. On top of that foundation, sits our go-to-market engine. This layer connects talent, technology partners, sales teams, customers, manufacturing, distribution and leadership in a single coordinated execution. The objective is to ensure that every capability we add can be commercialized efficiently and consistently across markets. By centralizing manufacturing, supply chain and distribution and by investing in leadership, systems and ecosystems partnership, we enable rapid integration and execution as new technologies and acquisitions are bought into the platform. This structure increases operating leverage as multiple platforms scale on shared infrastructure. It accelerates commercialization and monetization of acquired capabilities and over time, improves unit economics while lowering field support cost as our installed base expense. I will elaborate in the upcoming slides on how this operating model is a critical enabler of Ondas' ability to scale, turning innovation and acquisitions into repeatable execution and durable financial platforms.

We have designed a purpose-built leadership structure to support scale across revenue operations and execution as Ondas continues to grow. At the top, clear executive leadership we defined accountability while empowering each operating company to run their businesses with focus and speed. They are supported by highly experienced centralized functional leadership across corporate and growth functions. Our corporate and growth organization brings together finance revenue, marketing and product leadership. This structure enables as a unified go-to-market strategy, supports cross-selling across platforms and ensures consistent global customers' coverage.

Operations, manufacturing and people functions are centralized as shared service, including operations, HR and legal. These shared services model drivers efficiently supports scalability and reduces duplications across the organization. At the operating company level, platform CEOs remain fully accountable for executions with their domains while benefiting from the scaling structure and resources of the Ondas platform. We have built a highly effective advisory Board made up of the best-in-class leaders who directly reflect on the markets we operate and the customers we serve. These are former senior commanders, operational decision makers and technology leaders with deep experience across defense, homeland security, and government markets in the U.S., Israel and the allied countries. They understand how missions are executed and would drive adoptions at scale, the role of the Advisory Board is very practical. They help validate our product road maps and ensure that what we are building aligns with real operational needs, real budgets and real procurement processes, not theoretical requirements. From a market perspective, the Board gives us direct insight into how customers think, what problems are urgent, how buying decisions are made, how programs move from pilot to the deployment and how multi-domain systems are evaluated in contested environments. They also help us anticipate that where demand is growing across border security, force protections, counter UAS, ground robotics and post-conflict operations so we can position OAS ahead of the curve rather than react to it. They represent the customers' perspective across key dimensions, operational doctrine, mission requirements procurement cycle, regulatory constraints and coalition and allied environment. This ensures that our road map is driven by real-world demand rather than theoretical use cases. From a go-to-market standpoint, the advisory Board helps us align our offerings with how customers actually buy, what problems they prioritize, how they evaluate solutions and what drives adoptions and scale in defense and government market. Strategically, they act as an early symbol for budgets, threats and operational needs are moving, allowing owners to position its platforms ahead of demand and reduce execution risk as we scale. An important part of how we scale Ondas this is the ecosystem we are building around the platform. These partnerships are not only at the Ondas Holdings level as a prime contractor. They are deeply embedded in the product company level where each operating company works directly with the best-in-the-class partners to accelerate capability and deployment. Across the group, our ecosystem supports localized tactical integration, distributions, manufacturing in critical markets, whether it's manufacturing partners or system integrators, this relationship allow each product company to move faster and deliver more complete mission-ready solutions. At the Ondas level, this ecosystem gives us reach and scale at the product level, it gives our teams flexibility, allowing us to integrate with leading partners that already trusted by customers in their respective [indiscernible]. The result is networked model where innovation does not happen in isolations, capabilities are developed integrated and sustained locally while still benefiting from the unified operating platform and go-to-market structure. Our ecosystem approach is a key enabler of how we win, bringing together best-in-class technologies, proven partners and Ondas platforms to deliver completely scalable solutions. We are ramping up manufacturing across the Ondas platform to address the demand of our system with clear focus on localized supply chain, addressing the local needs of our major markets, starting with major focus on the U.S. market. In the U.S. working with Detroit manufacturing systems, we are manufacturing Optimus and Iron One drone systems for American robotics, supporting NDAA-compliant, Made in America productions at scale.

Also in the U.S. and Europe, Kitron supports electrical manufacturing and system assembly enabling us to scale production volumes while maintaining quality and supply chain resilience. At Ondas facilities in the U.S. we manufacture fiber optic pools and supporting components for American Robotics, which are critical for secure, resilience, communications in contested environments. With Mistral in the U.S., we support manufacturing of Roboteam ground platforms, including MTGR and other UGV systems, giving us scale in tactical ground robotics. In Israel, Tamuz and Flex support advanced manufacturing of Optimus and Iron Drone and centric systems, including integration and specialized assemblies, particularly for defense great platforms. We are preparing for additional European manufacturing capacity with Heidelberg which will further strengthen our regional production footprint. I will now hand the call back to Eric. Eric, please.

Thank you, Oshri. I would now like to hand the call over to Avshalom Amossi, our Chief Revenue Officer, to discuss our key customer activities across end markets and the different segments we are addressing. Amossi, please proceed.

Thank you, Eric, and thank you for having me here with you today. Ondas is currently engaged across multiple high-priority programs that reflect where real demand is forming across defense, homeland security and critical infrastructure markets. Counter-UAS remain one of the most active areas of engagement globally, driven by the rapid proliferation of hostile and unauthorized drones and operational urgency to neutralize them effectively and with minimal collateral impact. These programs are moving beyond trials into structural deployment, positioning our cutting solution as a core capability within evolving aerial defense architectures. In parallel, we are advancing autonomous CUAS programs, including coordinated drone swarms focused on border security and wide area surveillance where persistent coverage, rapid response and synchronized operation are becoming mission-critical. I will elaborate on these programs in the upcoming slides.

We are also seeing increasing demand to combine autonomous CUAS fleets with integrated counter UAS layers to protect military bases, borders and sensitive installations. Including multilayer capabilities that integrate ground and aerial robotic platforms with sensors and the effectors. We are also participating in national-level Defense initiative including drone dominance and advanced unmanned programs alongside classified activities supporting offensive and defensive drone operations.

In addition. de-mining programs in the Middle East continue to gain momentum as customers seek autonomous and remotely operated solution to accelerate clearance operations while reducing risk to personnel. Collectively, these activities underscore the shift we are seeing across our markets towards scalable, autonomous and integrated drone infrastructures, and they reinforce our strategy to address both UAS and counter-UAS requirements with a unified system-level approach. We are addressing the rapidly growing global demand for multi-layered aerial protection, driven by the increasing exposure of public venues, critical infrastructures, border and military assets to low-cost highly accessible drone threats.

In the United States, we have submitted for a department of Homeland Security grant tied to the security around the upcoming FIFA World Cup 2026 and related activities. These programs reflect our counter-UAS is becoming a core element of homeland security planning rather than an ad hoc capability.

In Europe, we are engaged in extensive deployments across airport environments where layer detection and interception capabilities are required to protect complex, high-traffic earth spaces while minimizing disruption to operations. These deployments, which generates over $60 million in orders last year with urgent requirements are expanding further as authorities move towards standardized infrastructure-based solutions.

We are also advancing projects focused on aerial protection of national borders and sensitive geographic corridors as well as strengthening protection programs around military bases. In this environment, customers are prioritizing systems that combine high autonomy, low collateral impact and seamless integration with existing detection and command and control architectures. Overall, our pipeline continues to expand across critical infrastructure sectors globally, and we are seeing accelerated momentum as customers transition from pilots and demonstrations into sustained deployment programs. This demand reinforces the role of Iron Drone, Sentrycs and our multilayer counter-UAS solution positioned for long-term growth. We are currently executing our first national level defense program as prime contractor, marking an important milestone for Ondas as we scale into larger long-term sovereign defense initiatives. This is a multilayer phased program with focus on deploying autonomous drone swarms along national border lines, designed to deliver persistent around-the-clock ISR coverage alongside rapid swarm-based response capabilities. The architecture enables wide area monitoring, faster decision cycles and coordinated action across extended and complex terrains. The program is structured for scale with planned deployment of thousands of autonomous drones over time, integrated into a centralized command and control framework. This systems of systems combines autonomous aerial platform, AI-driven mission management, advanced sensors and validated C2 infrastructures operating at national scale. Importantly, this program was awarded through a competitive governed evaluation process, validating both the maturity of our technology and our ability to deliver integrated autonomous solution as a prime. It reflects growing confidence from defense customer in Ondas capabilities to design, deploy and sustain mission-critical autonomous infrastructure over the long term. The initial program is structured as a 1- to 2-year national defense initiative, designed to move from development into large-scale operation deployment while continuously expanding scope and value. During this period, the program progresses through defined phases, beginning with system design and autonomy deployment, followed by full system integration and national level validation. These phases established the technical and operational foundation required to support live deployment along border lines. The program then transitions into operational rollout where autonomous drones swarms are deployed to deliver persistent around the clock ISR and rapid response capabilities. As deployment expands, the program scales through additional fleet deliveries, geographic expansions and continuous capability upgrades. Ongoing deployment, advanced autonomy features and life cycle support are built into program structure, allowing the system to evolve as operational requirements change. Across these phases, the initial program is expected to generate significant organic growth. With the combination of deployment, expansion and follow-on development supporting a cumulative opportunity that can reach more than $100 million over time. Beyond the initial national deployment, we see much larger opportunity to expand this technology globally with allied nations. Many allied countries face similar challenges in securing long and complex border lines and are actively seeking proven sovereign grade autonomous solutions. Once validated at national scale, this architecture can be replicated across multiple allied customers through multiyear programs, enabling large area border protection using autonomous drone swarms integrated with centralized command and control. As this model is adopted across multiple countries, the cumulative opportunity expands significantly with the potential to reach a multiple hundreds of millions of dollars over time.

We are actively participating in the Drone Dominance Program. A $1 billion Department of War initiative designed to rapidly fill the small one-way attack UAS at industrial scale. This program reflects a fundamental shift in how the U.S. military is approaching unmanned systems. Moving away from low-rate bespoke platforms toward mass production aligned with modern conflict realities. The objective is rapidly filled up to 340,000 low-cost attack drones over the next 2 years. While rebuilding structure domestic manufacturing capacity and strengthening the U.S. defense industrial base. The program prioritizes affordably simplicity, production speed and secure supply chains with a clear focus on the U.S. manufacturing and NDAA compliant components. Initial Department of Defense orders under this program could be placed as early as February 2026, underscoring the urgency and the scale of this initiative. American Robotics submitted the Wasp platform to the Drone Dominance Program in January 2026. Wasp is a purpose-built, low-cost rigidized small UAS engineered specifically for one-way attack missions. The platform has demonstration -- demonstrated both air-to-ground and air-to-air attack capabilities and is designed for high-volume manufacturing rather than customized low rate production. Wasp is manufactured in the United States in Pennsylvania using NDAA-compliant components. Its design aligns directly with the program requirements for scalable production, operational simplicity and rapid deployment, positioning American Robotics to compete effectively as the Department of War accelerates procurement under this initiative. This program represents a significant opportunity to participate in a large-scale multiyear defense procurement effort while further establishing Ondas and American Robotics as a trusted provider of mission-ready autonomous system built for modern warfare.

Success in the Drone Dominance Program is ultimately determined by supply chain integrity and the ability to manufacture at scale. And this is where Ondas is particularly well positioned. The Wasp platform was designed from the outset to meet NDAA compliance requirements with secure sourcing, traceable components and control electronics built into the architecture from day one. Initial production units have already been delivered from U.S.-based manufacturing, validating our Made in America execution and our ability to meet department of War expectations on compliance and security. Beyond compliance, our approach is built for scale rather than relying on subscale assembly operations. We have structured an industrial contract manufacturing model anchored by Kitron in Johnstown, Pennsylvania. This provides access to automated high throughput production lines, supported by defense grade quality and compliance systems. Without requiring Ondas to carry the capital burden of building and operating dedicated factories, this model gives us the ability to rapidly scale output and meet surge capacity requirements driven by conflict or accelerate procurement time lines. It also creates a structural advantage in programs like DDP, where volume, speed and consistently matter as much as platform performance. Importantly, we are aligned not just with the specification of the program, but with its intent. We are delivering a mission-ready platform through Wasp, paired with industrial scale U.S. manufacturing and the ability to support sustained high volume procurement. This integrated approach position Ondas to compete effectively in Gauntlet style evaluations, meeting aggressive delivery schedule and support long-term production programs. At the same time, this model supports the war fighter while strengthening the U.S. defense industrial base. which is a core objective of the Drone Dominance Program.

We are actively involved in advanced and in some cases, classified programs focused on ground robotic support for maneuvering forces and border protection missions. Unmanned ground vehicles are becoming essential for persistent border surveillance and autonomous patrol operations, operating independently and in coordination with aerial systems. These platforms enable early detection, continuous tracking and rapid response to incursion targeting military bases, border zones and critical assets while reducing risk to personnel. We are working closely with customers on full border life cycle operations, beginning with terrain preparation and clearances, followed by lower defense and long-term sustainment. This approach integrates ground robotics into ongoing security operation rather than treating them as isolated tactical assets. Our capabilities extend into autonomous mine clearance, explosive ordinance disposal and high-resolution terrain mapping supporting both force protection and operational mobility. In parallel, we support the secure installation of border infrastructures, including fences, sensors, communication networks and integrated security system, often operating in contested or high-risk environments. Together, these programs demonstrate how ground robotics are evolving into core component of modern border and force protection architectures. Operating as part of an integrated air and ground system designed to deliver persistent responsiveness and operational resilience at scale. We are seeing very strong demand across our markets for unified air ground protection, driven by customers who are dealing with increasingly complex and multi-domain threats. Military, home and security and civil authorities are looking to protect bases, compounds borders and critical infrastructure with solutions that operate as one integrated system rather than a collection of disconnected platforms. The requirement we hear consistently is for a single operation domain that connects aerial and ground sensors and effectors and enables faster, more coordinated decision-making. Our approach brings together UAS, counter-UAS and unmanned ground platforms into coordinated architectures that supports detection, tracking, command and control and response across both air and ground threats. This integration enables persistent surveillance, early warning and rapid engagement while simplifying the operations for the customers.

From a commercial perspective, these discussions are increasingly focused at full solutions rather than individual products. Customers are engaging with us on integrated air-ground architectures that can be deployed, expanded and sustained over time as the requirements evolve towards multi-domain defense. These conversations are active across multiple regions and customer segments and we expect to provide updates as these engagements progress into formal programs and operational deployments. I will now hand the call back to Eric. Eric?

Thank you, Amossi. Now we will turn to outline the strategic growth program. As we transition into the strategic growth program, it's important to step back and look at the structure of the market we're operating in. The unmanned and autonomous systems market remains highly fragmented and is dominated by subscale, undercapitalized single product vendors. That fragmentation will not persist indefinitely. Markets like this only organized once. When scaled operators emerge with capital, integrated platforms and execution capabilities, the leaders will become clear. Again, this only happens once and the rewards will compound from the leaders and their investors over the next 10, if not 20 years as the investment cycle booms. We believe that industry organization phase is beginning just now we are focused on positioning Ondas to be one of those winners. To execute that strategy, we've assembled an extremely experienced and dedicated team focused on strategic investments and acquisitions led by Mark Green, our Head of Corporate Development and M&A. Mark and his team are responsible for creating and implementing rigorous processes to identify, evaluate and execute transactions that strengthen our company and accelerate growth while maintaining capital discipline. We have the vision, the expertise, the capital and most importantly, an executable plan to lead and win in this market. With that, I'll turn it over to Mark to walk through the strategic growth program and how we're executing against it. Mark?

Thank you, Eric. I want to start by highlighting that our strategic growth program is off to a great start. We have structured our corporate development efforts with a cross-disciplined team governed by rigorous disciplined and thorough processes that are repeatable. This disciplined process is focused on accelerating our operating model to drive a high return financial model. Most importantly, this strategy is designed to deliver enhanced returns for our investors that are substantially accretive to our core growth plan.

We have a very specific filter for what we seek. Core alignment. We seek to acquire companies within our core domains and target markets. proven leadership, we look for market leaders and high-growth scalers with excellent management teams. Financial scale, we require customer-validated financial scale and clear operating synergies. Fast track access, we prioritize targets with critical partner and government relationships that provide immediate access to major programs. Our required outcomes are clear. a broader global portfolio, expanded supply chain scale and long-term recurring revenue from field support and lifecycle services.

Let's look at the target profile we use to vet these opportunities. We evaluate every deal across 4 strategic pillars. Strategic alignment. Our focus is on dual-use markets: defense; homeland security; public safety; and critical infrastructure in our core domains of autonomous platforms, counter UAS payloads, communications, C2 and sensors. By targeting these specific areas, we ensure interoperability. This isn't just a buzzword, it's a financial driver that expands our TAM and allows us to leverage supply chain efficiencies and manufacturing synergies immediately upon acquisition.

Financial profiles. We categorize targets from market dominators with global scale to strategic early-stage ventures that provide deep-tech. Each has its advantages that we can leverage to the maximum. Strategic footprint. We are building a globally scaled organization with localized service delivery across allied markets, prioritizing targets with key government and military relationships in the U.S., U.K., Europe, Israel and beyond.

Leadership excellence. We demand high-talent density, leaders, engineers and team members that share our innovative DNA and track record of combat proven capabilities and a proven ability to deliver for our customers. What does this look like technically? We are building a system of systems across 6 high-value categories that Eric referred to earlier.

These include, and I will try to be succinct, Autonomous Platforms, multi-domain robotics that would allow us to expand our aerial and ground portfolios for ISR and logistics while also maintaining long-term optionality with potential expansion into Unmanned Surface Vessels or USVs, counter-UAS, integrating soft kill, cyber protocol manipulation and electronic warfare jamming with hard kill kinetic and directed energy systems.

C2 and Comms. This is the systems of systems backbone and an important area of interest for Ondas, ranging from secure proprietary links and networks to swarm technologies for multi-platform orchestration. Sensors & Payloads, radar, imaging and loitering munitions also maintain relevance and interest for Ondas. In 2025, utilizing this scalable growth platform, we acquired 6 highly synergistic companies, transforming Ondas from a single domain aerial company into a high-growth multi-domain solutions provider.

This included Sentrycs where we added best-in-class cyber-over-RF counter-UAS, giving us the ability to detect and take over hostile drones non-kinetically. Roboteam and Apeiro Motion; these acquisitions gave us combat proven tactical ground robotics and advanced mobility for contested environments. 4M Smart Demining, this brought land intelligence and data-driven threat detection to our portfolio.

In line with our program, these companies gained expanded market access, a scaled operational platform and growth capital needed to scale their innovations, and they are set to soar. Looking to 2026 and beyond, our momentum is accelerating. Our goal is to drive faster revenue growth and deliver significant system complementarity and operating margin leverage across the platform to lead to higher levels of profitability. The pipeline is substantial.

We have over 20 targets in our M&A pipeline, of which at least 7 are currently in advanced activity. And we have a potential revenue pipeline from the 2026 strategic program, which exceeds $500 million. I want to add, and this is important, as Ondas has begun to execute its strategic acquisition program, we have begun to see a significant amount of inbound interest in defense and security technology providers interested in joining Ondas.

Of course, this is due to our growing credibility as a market leader, driven by a programmatic M&A process and a significant on-balance sheet financial resources. We are also seeing an increasingly mature set of acquisition candidates join the pipeline, characterized by larger revenue streams and in many cases, already profitable businesses, which are highly synergistic with Ondas. I expect this pipeline to continue to grow and mature substantially. But to be clear, we aren't necessarily optimizing for the size of the pipeline. We are optimizing for the quality of the technology, people and business.

Our goals are aggressive but calculated. We are adding and broadening our platforms globally to drive faster revenue growth and deliver significant operating margin leverage. We have the plan, the people and the pipeline, along with the capital to execute our program. This is a highly accretive and repeatable plan from a shareholder value creation perspective.

Thank you, Mark. We will now briefly transition to an update on Ondas Capital. We had intended to carve out a dedicated time in December with James Acuna in the Ondas Capital team for a deeper dive with investors. But given travel schedules and the substantial workloads related to advancing our investment program, which includes time on the ground in Ukraine, we are now targeting a focused session within the next 1 to 2 months.

We appreciate your patience. As a reminder, we launched Ondas Capital in the third quarter of 2025 as a strategic investment platform with up to $150 million earmarked for investment. Personally, I hope we have the wherewithal to do much more than $150 million here, but I think it's a good start. The focus of Ondas Capital in our investment program is on opening global markets for Ukrainian and Ukrainian-inspired entrepreneurs who are delivering combat-proven defense systems protecting Ukraine in the war against Russia.

By investing in and alongside these companies, we can build operating businesses around localizing these technologies into trusted U.S. and European production and deployment. Since launch, we've made considerable progress staffing and standing up the platform. The effort is led by James Acuna, a drone warfare expert based in our Estonia office, and the team is actively advancing opportunities aligned with our broader strategic growth objectives.

I'm very pleased with the progress Ondas Capital has made. Since the launch in September, we've built a highly capable team supported by an impactful global advisory board with deep expertise and strong influence across defense, security, finance and government. That foundation has allowed us to rapidly expand critical relationships across U.S. and NATO countries, ranging from government and defense organizations to supply chain and integration partners as well as like-minded financial firms and investors.

Similar ecosystem relationships are being established and advanced directly on the ground in Ukraine. As this ecosystem has come together, our investment pipeline has grown meaningfully and now translating into real actionable opportunities. We have over 300 companies we are tracking in our database and are in active diligence on 9 specific opportunities. We expect to fund our first investment in the first quarter of 2026.

A good example is our announced letter of intent with Drone Flight Group, where we intend to invest up to $11 million to help open U.S. and European Union markets for their platforms. In short, Ondas Capital has moved quickly from concept to execution. We have now established it as a credible transatlantic private-capital investor and integrator in critical defense and security markets, and we look forward to sharing more details with you soon.

Ondas has also built a portfolio of targeted strategic minority investments. This is a smaller component of our investment programs, but it's highly relevant, strategic and provides opportunities for meaningful financial gains. These investments are guided by clear criteria. We focus on strong strategic and mission alignment with our ecosystem, mature technologies that are relevant to near-term customer requirements and opportunities to enhance our platforms through collaboration or supply chain access.

Just as importantly, we require attractive entry valuations with meaningful risk-adjusted upside. The objectives are equally clear: build relationships supporting critical technologies and innovation roadmaps, strengthen strategic partnerships, preserve capital flexibility and generate significant financial returns. We believe Ondas has a unique advantage as an industry participant. Our operational and technical insight allows us to better understand both the risks and the upside of these opportunities and to structure investments that benefit from that knowledge.

That approach is already producing results. Since our initial investment in September, our publicly listed portfolio, which includes LightPath, Safe Pro AI and Kopin has generated an 85% unrealized gain, validating both our entry discipline and our understanding of the underlying business dynamics. We also made a larger investment in a private company, PDW based in Huntsville, Alabama. While private valuations are not marked in the same way, we believe PDW represents an excellent long-term opportunity with strong performance potential, and we will likely provide multiple avenues for strategic collaboration over time.

Overall, these minority investments complement our platform strategy, delivering financial upside while strengthening the ecosystem around Ondas and reinforcing our position as a scaled, informed and disciplined participant in this market. I want to now turn to the financial outlook. And as I do, I want to thank you again for being with us. We've covered a lot today, and this is the final section before we turn to investor Q&A.

As we outlined last July, and as we've discussed throughout today, we've made significant progress operationalizing the business at Ondas following an extended period of technology development. That transition is deliberate and foundational. For many years leading up to 2024, our focus was on platform and solutions development, commercialization and demonstrating product market fit.

A couple of years ago, we transitioned to the service delivery phase where we focus on advancing a scalable operating platform, building partner ecosystems and expanding into high-value use cases across the United States and Europe. As a result, we will continue to invest heavily in our operating platform. That means OpEx will remain elevated as we scale sales, production, integration, field services and support infrastructure.

Of course, with new financial resources in place, we have the ability and the intention to push harder on both our core and strategic growth levers. Ultimately, this investment phase is designed to position the expansion flywheel. We expect 2026 to be a strong year of execution and scaling with the flywheel accelerating meaningfully in 2027 and beyond as global operations expand and platform adoption broaden across defense, security and critical infrastructure markets globally.

We are on track with this plan and the progress we've made gives us confidence in the path ahead. This is where we want to be very clear and very direct. As we've said throughout our presentation, we expect 2026 to be a strong year for Ondas, and we expect to generate revenue in the range of $170 million to $180 million. That represents over 250% growth relative to expected 2025 revenue.

On a pro forma basis, which assumes a full 12 months of revenue from the companies we acquired in 2025, this represents growth of more than 75%, an exceptional growth curve by any standard, which we believe is just beginning. As we referenced earlier, our end markets remain strong and are still very early -- in the very early stages of a multiyear adoption cycle.

Demand across defense, homeland security and critical infrastructure continues to build, and we believe our current outlook may ultimately prove conservative. We also expect bookings to reach at least $300 million in 2026, which provides the opportunity to continue growing backlog and supports revenue visibility beyond the year. On the right, we're providing context on the expected revenue mix across our major markets today.

This is counter-UAS, ISR across air and ground and UGV platforms. This is a consolidated outlook across the company. We do expect Ondas Networks to begin showing growth, but we are intentionally keeping expectations low here until orders convert. I want to emphasize again, we believe we have high visibility into achieving these revenue and bookings goals. Do -- indeed, we believe the strength of our pipeline and end markets could make this outlook a conservative one.

Finally, it's important to emphasize this outlook does not reflect upside from our strategic acquisition program. We believe that disciplined, accretive M&A has the potential to materially enhance growth beyond what we are guiding to today. In short, we believe Ondas is entering a period of accelerated revenue growth with multiple layers -- levers to drive upside as we execute through 2026 and beyond. Here, we want to share a few additional data points that frame how we think about the financial model as the business scale.

We continue to expect gross margins of approximately 50% across the company. Over time, we believe margins can move higher as volume increases and our supply chain and production processes mature. Design for manufacturing, platform reuse and scale efficiencies are all expected to support margin expansion as the business grows. At this stage, we are not providing a fixed OpEx target for 2026. We are actively investing to scale the OAS operating platform across sales, service delivery, integration and support, and we believe these investments are necessary and appropriate to support a much higher structural growth rate.

We will look to share more context for our OpEx plans on our earnings call in March. I want to also add that we have arranged our production and supply chain infrastructure to support our current outlook, and we will continue to invest in this critical area as demand scales. This will be critically important. As always, we will be transparent as the model evolves and provide updates along the way. Now let's talk about operating leverage in our financial model. Delivering capital-efficient growth is a core priority for Ondas. The way we demonstrate that to investors is by clearly showing how our OpEx investments, of course, ranging across product development, sales and marketing, supply chain, production and field services translate into revenue and gross profit growth that outpaces expense growth over time.

Ultimately, we also need to absorb corporate overhead, including finance, administration and public company costs. The success of our model depends on accelerating revenue and gross profits well above our OpEx growth. We believe we will demonstrate that, and we want to help you understand how we think about it. Essentially, we are designing our OpEx model to support rapid growth with a path -- with a staged pathway to operating leverage across 3 stages of profitability.

We see our product company layer as turning EBITDA positive first. These are the entities that develop, produce, deploy and service systems directly for our customers. As scale builds and margins mature, we expect our product company layer to turn EBITDA positive first, again, and we are targeting that by the third quarter of 2026 this year. Once the product companies are profitable, continued sustained revenue growth and higher levels of gross profit will allow us to absorb OpEx at the OAS operating platform.

In essence, OAS is our centralized operating platform where we invest in integration, shared services, systems and scale to efficiently support higher levels of growth for our product companies. We are targeting reaching EBITDA positive results at the OAS layer by the third quarter of 2027, and we believe that could come sooner if we are able to accelerate revenue growth above our current expectations.

Finally, we need to cover the OpEx for the parent company, Ondas Inc. This includes public company costs, the remaining investment phase at Ondas Networks as we manage expenses ahead of their revenue inflection and the costs associated with Ondas Capital. Importantly, Ondas Capital is designed to generate equity gains that help offset its costs by also creating ecosystem value for the core businesses.

We are targeting being EBITDA positive at the current parent company level by the first quarter of 2028. Of course, as with the other layers, we will work to accelerate that time line through execution and growth. Taken together, this layered structure is how we think about operating leverage. As revenue scales, each layer is absorbed in sequence, creating a clear and disciplined path to profitability while continuing to support high growth and leadership.

As we prepare to wrap up our prepared remarks, again, thank you for sticking with us this long. I want to step back and frame the opportunity we see in front of Ondas in the context of market outcomes. What we are seeing is a generational opportunity in the sector which we compete, and we firmly believe that after an extended period of technology development and maturation, we will see the market organized to create large-scaled players.

Indeed, the dynamics are clear. Adoption of autonomous systems at scale requires strong, well-capitalized and operationally mature providers. Fragmented subscale vendors cannot meet the requirements of global defense, security and critical infrastructure customers. Meanwhile, the total addressable markets are large and growing, yet current market penetration remains low. As a result, today's equity capitalization across the sector is modest relative to the opportunity. That sets the stage for what comes next and of course, is a massive opportunity for investors.

Over the next decade, we see significant TAM penetration and concurrent substantial increases in sector market capitalization as high-return technology-enabled markets mature and meaningful consolidation occurs. The number of competitors will shrink and market value expansion will increasingly accrue to the leaders. That process has begun and market leaders are being identified now.

Ondas is positioning itself to be one of those leaders. We are investing ahead of the curve, building scale, strengthening our operating platform and consolidating capabilities while many others remain capital constrained. We believe this investment cycle will create a small number of very large and valuable companies, and we intend to be among them. This is why we have emphasized execution, capital discipline and long-term platform building throughout today's presentation.

We believe decisions we are making now will define outcomes not just for the next few quarters, but the next 10 years and beyond. For our final remarks, I want to step back and frame the 5-year opportunity to help you understand what we are building toward. We shared a similar slide at our Investor Day last July. At that time, we were just launching our core plus strategic growth plan. We have conviction, but we were not yet fully capitalized to win. Today, that has changed.

We now have the balance sheet, the operating momentum and the strategic clarity to pursue this opportunity with much greater ambition, and we believe that ambition is entirely achievable. Back in July, our expectation was to reach $100 million revenue run rate by the end of 2026. Today, we are guiding to a revenue range of $170 million to $180 million for 2026. That's 70% to 80% above our prior ambitions just 6 months ago.

We believe that the outlook is conservative given the demand environment and the platform we have built. Looking further out in 2030, we previously believed we could generate more than $300 million in revenue. With our operating plan now in motion and our balance sheet significantly strengthened, we believe a much larger outcome is possible. Based on what we see today, we believe achieving $1.5 billion or more in revenue within 5 years is an achievable goal. As we scale, profitability follows.

The model we've outlined supports strong margins, meaningful operating leverage and the transition to a highly profitable global business. When you combine that growth profile with durable platforms, global scale and leadership in large and expanding markets, we believe a $15 billion or greater market capitalization is well within our reach. Of course, none of this is guaranteed. We have a lot of work ahead, and ultimately, it comes down to execution. The market is there for us.

The responsibility is on our management team to deliver. To that point, I want to be very clear. Our management team is all in. We are fully committed to capitalizing on the exceptional opportunities we've created, executing with discipline and building the important, durable and valuable company we believe Ondas can become.

With that, thank you for your time and your support. We will now turn to questions. Operator?

[Operator Instructions] And our first question today comes from Amit Dayal from HCW.

Just in the context of the acquisitions that have taken place over the last year and acquisitions coming in 2026, how much of that product portfolio is commercial ready? And what are the plans for R&D spend over the next, say, 1 or 2 years?

Yes, great question. And I think what Mark was emphasizing is what I'll emphasize is we're focused in our strategic acquisition program on mature technologies and not just mature technologies that have been validated as operational and valuable in the field by customers. And it goes further, we also have the -- in our diligence, have the understanding that the customers intend to expand their business and deployments of the technologies.

So we're not, by and large, interested in early-stage or pre-commercial technology platforms. That's not our growth model. In terms of R&D, I think you'll see us focus more on advancing the platforms and their capabilities as well as focusing on the integration activities that Meir spent a lot of time talking about in the systems and systems architectures where we're deploying the solutions we're developing for customers.

Understood. The outlook, Eric, for 2026, is that spread across multiple deals? Or is there any concentration in that outlook right now?

No, there's not a significant amount of concentration there. We do now have a broad breadth of platform technologies. I think you're going to see us, for sure, do very well in the counter growth space with both the Iron Drone and Sentrycs portfolios. But you're also going to see us do very well.

We've got quite a bit of momentum in product and end market and customer maturity with the ground robots as well, the UGVs with both Roboteam and Apeiro. And 4M is going to have a very good year as the demining operations start to grow. And we think that's going to be -- just specific to that, we think that's a long-term opportunity that could be quite substantial. So I see there's a diverse pipeline that we're executing against. I see growth across the entire platform.

Our next question comes from Timothy Horan from Oppenheimer.

I have about 10, but I'm going to focus on 2. It seems like the defense industry is absolutely getting turned on its head. And I guess we can say the same for physical security and monitoring and on and on. Your platform, will all of your offerings be accessible from one platform? Are they very interoperable at this point?

Great question, and they're very interoperable, not just within our architecture. So for example, we can deliver Iron Drone or Sentrycs separately and deliver them integrated. We are working on integrating our drones, including the counter drone systems with our ground vehicles. At the same time, our systems are modular, and that is a very important market requirement, which -- that means is if we're deploying them, very often, we have to integrate with other systems that the customers either prefer or already have installed and operational.

So for example, when we're deploying Iron Drone, if the customer has a detection tool, that's typically going to be radar or some other sensor, acoustics, optical, et cetera, to detect the threat of a hostile drone, we can plug into that detection tool or system and then be able to mitigate the threat with the information that, that system provides us. So it's both internal that we're interoperable in expanding that, of course, but it's also with the rest of the market.

And in that point, how interoperable would it be for like a defense company or sorry, agency or Army, how hard would it be for them to interoperate -- integrate this with their Command & Control systems or existing intelligence systems?

Let's see -- Meir, can you add a little bit more color to that?

Sure. Again. So we have a data platform and unique -- unified command-and-control. We can integrate with the command-and-control of the client through API, SDK and so. And of course, we can integrate whatever is out there in the market from the detection through the effectors, soft kill, hard kill, but also drones, UAV and UGV. We have our own brand and a unified C2, but we can integrate it with whatever the client needs from us.

Eric, is there -- it's pretty crazy what's going on right now, obviously. But is there any technology platform or business model or company that you're trying to emulate or look for, for guidance that's happened historically?

Yes, there are. I mean I do learn from others and other even technology adoption cycles as to how these develop and strategies you can deploy, both operationally and financially. Maybe I'll say this first, Tim. Most of the drone companies or robotics companies in the market today are sort of on that path of maturity that you've seen us on up until recently.

That means they're engineering-led, smaller subscale, but they are poised to see adoption. The problem is they don't have the operating platform, and they don't have the balance sheet. That's an issue for them. That's an issue for customers, and it's not a small issue. Now we see -- of course, you know a lot about our model. We see others trying to adopt similar operating and financial models. The marketplace has begun to refer to these companies as [ near ] prime.

So I don't want to maybe highlight any one of them. But there's a handful. And there's a bit of a race here, I think, to do this because, as I said earlier, this is a generational opportunity to organize the market. So I think at the end of the day, we're going to see this happen at an accelerated pace over the next several years. And we're going to be on the path to that small number of players.

And I'd say it's unlikely that a new player emerges with some new mousetrap or even a financial model because to build this isn't just about money, and it's not just about technology and your engineering team because all of this stuff takes a long time, not just to develop, but to integrate and to mature and bring to the market. So the platform we're building in Ondas is sort of on the cutting edge here I think of this opportunity.

Our next question comes from Michael Latimore from Northland Capital Markets.

Excellent. Congrats on the good year and outlook. I guess, Eric, on the guidance for the year, $170 million to $180 million, I think that's up from $140 million roughly. Does that assume any new acquisitions? Or is that just based on your current product portfolio?

That's just based on our current product portfolio and the momentum we see in the business.

Great. And then the expectation of $300 million in bookings, is that over -- is that like a multiyear bookings? Or what kind of time frame should we think that reflects?

That's -- those are the bookings we're expecting and targeting this year. And of course, we do want to beat that. So -- but we think it's a good starting point. For some context, I think it's fair to say that the counter drone market is really poised for an exceptional year. And this is really the first year, right? This is only in the last couple of years that we've seen the requirement to protect the lower skies emerge.

So -- and the demand curve we see here is global. There's a lot of focus, particularly in the U.S. market and with you as investors on what's going on with homeland security and the FIFA World Cup. And of course, that's very important. There's other activities inside of the Department of War and the Armed Services branches. But I also would add that the urgency in Europe amongst NATO countries is just as acute and if not more, because they're sitting on the doorstep, of course, of the Ukrainian and Russian conflict.

So I think it's there. I also think that the work we're doing with the Roboteam, for example, they've done that foundational work. They've been working with customers for a while now to advance and broaden their capabilities. So -- and they're touched on how that market now is seeing some urgency in and around urban conflicts in preparation for those sorts of conflicts.

So -- and I'd highlight that ROBOX, you're going to hear a lot more about that platform, which is in and of itself an exceptional integrated solution. So -- and with portability. So we see that bookings is going to be broad, and it's visible. And this is really just -- in terms of our markets, the adoption curve are really just starting off a small base. So the growth rates are going to be very high.

Yes. And you expect to recognize that -- those bookings over what time frame?

This year, that's a 2026 bookings target. So we'll be building backlog through the year as well.

Got it, okay. And then the swarming technology, is that your own? Or is that third party? It sounds like that's increasingly important.

Yes, it is important. And Meir, do you want to shed some light on that?

Sure. We are working on that in the last 2 years to make sure that we have the [indiscernible] system. We already deployed around the world with this system, and now we're working on the swarm capabilities. Everything is our own, the software, the brain. Of course, we use subcontractors for different feature, but most of it is our own production. And of course, for now, we operated as a combat proven with some of these capabilities around the world.

Our next question comes from Jonathan Siegmann from Stifel.

So part of the company's ecosystem is a third-party contract manufacturing capacity, and you've disclosed line of sight of $170 million to $180 million of revenue this year. You mentioned the pending addition of Europe. Are there other gaps that need to be filled? And how would you suggest we think about the company's current revenue capacity as we think about $1.5 billion of revenue in 2030?

Good question. So in terms of our current capacity, we can meet our revenue outlook for sure. So we feel very comfortable with that. And Jon, I'm sorry, what was the front end of that? You wanted some context around the global capabilities and the flexibility or...

Just how much more partnerships and expansion of that third-party contract manufacturing do you need?

Great question. I think with this lineup, we're going to be -- that you see on one of the slides we showed, I think we're going to be in good shape. At the same time, what we're seeing is a lot more interest from the ecosystem of folks who want to support us. So I do believe that we're going to -- you should expect us to add additional manufacturing partners. I'll come back to that point in just a moment.

I want to highlight Heidelberg. We did make the announcement in December that Heidelberg was going to be an important partner for us in Europe, and they're very capable on the manufacturing side as well as supporting customers in the field and helping support even the sales and marketing efforts in Europe. So we're excited about that. And we -- you should expect to hear a lot more about that. We're working hard with them to put some more structure around that announcement.

At the same time, one of the fascinating things here is, and you've heard us talk about it, is the industrial base, both here in the United States as well as in Europe is an issue from a national security standpoint, and it's something that the authorities are clearly trying to stimulate and fix from a policy standpoint. And we want to be part of that, of course. Now folks are doing this all different ways and every -- all of them are valuable in their own right.

You're seeing a bunch of folks go and build vertically integrated production capabilities, right? So they own factories, and they're doing it themselves. And I think that's great. You're going to see us do that in certain places as well. At the same time, I think what's underappreciated because it does seem to be like just a daunting task, how do we rebuild this industrial base.

And I think one of the unsung heroes here will be the contract manufacturing community because this is what they do. One of the challenges, however, is the big CMs of the world, and we have some of the logos on one of the slides. Kitron is another good example. They can't support a cottage industry, right? So if you're the CEO of the Board of a major global contract manufacturer and you talk to the Department of War and you say, "Hey, we need you to build drones." They say, we'd love to do that, right? The Board and CEO say that. And then they'll say, okay, well, they'll tell the business development folks, okay, we're good.

We'll go build the drones, and we'll tell the drone companies, and it will be all set. And the BD folks say, okay, well, there's 300 drone companies. They all want us to build 100 drones every 6 months, which ones do we work with? And that's a problem. And what I'm seeing here as we literally in just the last 6 months is that the ecosystem around supply chain and production is watching what we're doing and saying, wow, this is very interesting because Ondas is building a portfolio of capabilities.

And of course, they're in the air, in the ground, and we're going to continue to broaden those platforms. Basically, we're presenting ourselves as a company that they can scale with. And I think that's really important. So I think the velocity of all this over the next 2 or 3 years is actually going to work to accelerate that maturation or the rebuilding of our industrial base. And that's the thesis, but I can tell you just anecdotally early on here, that does seem to be the case. So we're really excited to see that.

Our next question comes from Maxwell Michaelis from Lake Street Capital Markets.

A lot of information to digest here, but I kind of wanted to go back to Project Hives and sort of the time line around that. I see that there's kind of a larger long-term potential with allied nations. Maybe starting out in the development phase right now, I believe -- and then scaling up further down the road, I mean once you're kind of done with this first initial program, do you need to go through this whole development integration deployment phase? Or does it become more plug-and-play with other allied nations, I guess?

Okay. So a couple of things. This program is expected to be 1 to 2 years, and we're going to do our best to accelerate that because it is of critical importance to the customer as well as to Ondas, of course. And then I would say that as we're thinking about taking this globally, you may see in different countries because -- well, first, I think the demand there is the requirement here for autonomous loitering munitions infrastructure, which we call the hives.

We do think it's a global requirement. So the market should be there. And as we go into other markets, you may see some modifications required to meet local requirements. But I'll get back to what I -- the point we made earlier in a similar question, but difference is that these systems are modular. They are designed to be in interoperable, and we would be able to integrate this system that we're developing with other technology providers in other markets. I'll ask Meir again. Meir, would you add anything to that?

No, I totally agree with you, Eric. Everything will be in the future plug-and-play for future clients, of course, and it will be ready during the year.

Perfect. And just my follow-up question. When we look at that -- I know it's a ways away. It includes quite a few acquisitions, I assume that $1.5 billion of revenue. But is there an organic revenue growth rate assumption there for management? And I don't think you shared one in the presentation, but is there something you can help us understand kind of what you're thinking from an organic growth standpoint for 2030 or through 2030?

Yes, I will. And as I do that, I think one thing I'll highlight is that we have won that program, but we haven't gotten the first order yet, and we are expecting it soon. So I want to -- the reason I'm saying that is it's not in our backlog. So to that point. In terms of organic growth rates over the next 1 or 2 years, they're going to be just incredibly high. And the growth rates themselves will look -- off a small base, it's just going to be massive.

Now if I took a 3- to 5-year view, I mean, I think the underlying growth rates here from specifically what we're doing around unmanned and autonomous systems is going to be easily 50% to 75% and in some markets and products would be higher. It's -- we're basically just seeing the turn of an industry that we've been -- we, I'd say, collectively, not just Ondas, but many of our peers have been building foundational technology for a decade or more. So it's going to be a very strong growth environment.

Our next question comes from Matthew Galinko from Maxim Group.

Appreciate all the time you put into this. First, just on the 2026 revenue guidance, I'm wondering if there's any linearity we should think about and how that lands for the year, just given how we should be thinking now about 4Q and kind of that bump in '25? And I guess, secondly, on that revenue, is there any networks assumed in the 2026 revenue guide?

Any networks? Yes. So firstly, there is a little bit of Ondas Networks in there. Yes, I'd put it kind of $5 million into the Ondas Networks side of things because, again, this presentation was designed around what we're doing in the OAS businesses. They are making progress, and there is opportunities for -- to book significantly more orders and network build-out visibility this year for sure.

But as we have been, we're going to be waiting to make that assumption before we put it into our outlook in any meaningful way. So it is -- there could be an inflection point there. In terms of -- we're not going to get right now into the quarterly cadence here. We'll give you some -- I think we'll be able to give you a better feel for that when we report the fourth quarter in March.

And maybe just kind of an oddball question for you. But obviously, we're seeing some rumblings on the consumer side that the large AI adoption and investment cycles are kind of siphoning up some components. I'm wondering how that impacts or if it impacts your plans to scale up production and meet kind of those revenue targets. Is there any risk of component sourcing just given some of the major macro story?

I don't -- so I can't say no. But I think the visibility we have at the moment, we feel good about. The other thing I'll say is outside of the [ LAS, ] what we're building and deploying is not the mass affordable systems, right? We're building and deploying systems and their autonomous systems with higher price points. So it's not a volume game. I think some of those pressures will be felt more on the volume side.

And at the same time, one of the -- if you think about that specific to what the Department of War is doing drone dominance, I think it's fascinating and actually very extremely healthy for the market. What they're trying to do is not necessarily just find the best drone, best performing drone because I think relative to requirements, there's probably going to be a bunch of folks who can do that. What they're really trying to do is identify those who can produce at scale and -- scale, quality, volumes, et cetera, right?

All these critical things you need to do. This cottage industry is not acceptable because it's the opposite of resilience. So through this work, we're going to find pretty quickly the companies that have the best capability and the strongest financial position and in many ways, is going to be a key determinant of that.

And what that's going to do is also you're going to see some of that supply chain for sure, but it's going to be self-reinforcing because this cottage industry as it matures, the supply chain is going to be able to respond much more efficiently to the growth of these markets. And I think we're going to try to do everything we can do to be a contributor to that maturation.

Our next question comes from Mike Legg from Ladenburg Thalmann.

On the acquisition pipeline, could you talk a little bit about the competition for those acquisitions and then also how you're valuing those acquisitions?

Sure. So firstly, I'll come back to what I said earlier, and it's a really important point vis-a-vis the competition is the vast bulk of this sector, the unmanned and autonomous sector is fragmented, right? It's small companies. And the vast majority of them outside of a handful of well-funded competitors are extremely capital constrained. And that's the market that we're seeing opportunity in.

Now in that market, you're going to be careful because fully funded companies oftentimes have challenges at maturing their technology, capturing customers. But there's so many of them, and we do have that expertise that simply just a financial buyer wouldn't have. I would submit to identify the technology platforms, the teams and the customer opportunities in our diligence. So I think where we're fishing, there's extreme capital constraints. And then I'll come back to that point about the financial buyers and the investors in those companies is to do what we're doing, you have to make that investment that we've described in OAS.

You have to have that relevance to the customers or the confidence of the customers that you can be the scaled mature provider of a platform that they're going to adopt for a decade or longer, right? You have to go and convince the supply chain that you should be at the top of the line because you're going to be the partner they want to bet on over the next coming 3, 5 and 10 years.

And I think what we're seeing is that there's not a lot of folks who can create that confidence, so there's not a lot -- so in any event, I don't want to say there's no competition, but I think we are very well positioned here to execute this plan. And we'll see how that changes. But coming back to the question that Tim had, we do see there's a handful of folks who are beginning to get the scale, and I think we'll see them in the market. But there's -- my take is that there's so much to do here today that I think the market is going to be very rational for the foreseeable future.

Okay. And how do you value them?

There's -- it's not science. We look at every company. We do extensive diligence, which includes financial diligence. We create financial models. And then we look at that and put a valuation on it and negotiate it. And I think I've been pleased with the way the team has been able to do that from the shareholder perspective of Ondas. But I guess, Mike, just to be frank, it's -- we're not -- this is a very traditional approach to making acquisitions.

Okay. Great. And then on the targets, are they interested in taking stock? And would you use equity? Or is -- you obviously have a strong cash balance? Do you think these all will be cash balances?

For sure. I think we're likely in most cases, to see a mixture. I think as long as our shares are at the proper level, we would prefer to use the cash for growth, so as growth capital to drive the business expansion. And we also see the benefit of using equity to align interest of the acquired companies, right?

So what we're asking is for the investors, but especially the management teams to go on this journey with us to build a big company together. And I see a lot of receptivity amongst the folks we talk to about these things. So that's some context. Every deal is different and unique. And the mixture of stock versus cash obviously has some relevance for valuation structures, et cetera. So that's just a bit of context.

Okay. Great. And then just one last question. On the backlog, you gave us guidance for -- I'm sorry, not backlog on the up -- yes, building up the backlog of $300 million in '26. What's the time to bring that revenue -- the bookings, yes, I'm sorry?

So that -- yes, I would say that the bulk of those bookings would be -- if they're not realized during this year, it would be next year in 2027.

When you book something, does it take 3 months for the revenue to come in and then the 12-month revenue time line?

It depends. And I don't want to get more specific than this, but we do have some higher velocity products that can be ordered and within a short period of time, certainly a quarter can become revenue and others are longer duration. And some of that will be determined by the visibility we have and our ability to -- or choices we make in and around inventory, right?

If we're highly confident, we may build in front of demand. And by the way, we're doing that. So that's some context. Some of the smaller drones we can build them faster than, say, the docking stations. So it kind of depends.

Okay. Great. And then just one last. On the $15 billion valuation goal, is that based upon the 2030 metrics you gave out?

Yes. I think it's our goal that I think is achievable. And I'd say it's -- I don't want to put a time frame on that, but I do think if you look at our 5-year plan, you see -- if you -- we're able to create confidence around that, I think we can achieve that more.

Our next question comes from Austin Bohlig from Needham.

Congrats on the solid Q4 execution. And just kind of wanted to start there. Can you guys point to anything specific that drove that strong upside?

I can't talk to it and point to anything specific other than the strong demand and us being in a position now to capture it and provide for it, right, to be able to build and deliver systems. I think I did mention as part of the prepared remarks that we did see strength across the platform. I do think the counter drone markets with Sentrycs and Iron Drone will continue to be particularly strong and be the biggest part of the mix, and we showed you a pie chart on that.

But the ground vehicles and the land intelligence are also very strong. So that's the context. I mean if I look at in the year going into '26, we do think that's sort of a similar dynamic. And on both bookings and revenues, if there's going to be that significant upside, which is possible. I think I would point to the counter market to be a particularly opportunistic thing or where that opportunity could come.

Okay. Perfect. And you may have just answered my next question. But so just like thinking about back your Q3 earnings call, you gave $110 million target and with Roboteam added $30 million, so $140 million. But it definitely seems like there's a clear acceleration in some of your business segments. So like what's driving this kind of incremental $30 million to $40 million new in probably just even like the last couple of months?

So -- and I do think we're still being conservative, right, because the demand -- the tailwinds are strong. But I think we are conservative then. So that's one thing. And then secondly, I just come back to the same answer where we're seeing the upside.

Okay. Perfect. And then a quick one. That 50% gross margin target, is that for '26?

Yes.

And with that, we'll be concluding today's question-and-answer session. I'd like to turn the floor back over to Eric for any closing remarks.

Sure. And I'll be succinct. Firstly, thank you to the operator. As we wrap the call, I want to thank you again for spending the time with us today. As we outlined, we do expect a very strong year in 2026, and we're leveraging that strong finish we had to 2025.

And we're going to be, as always, communicative, and we're going to give you more updates along the way as this year progresses. So we hope you enjoy the rest of the day. We're going to get back to the important work of building the company. And again, thank you for attending.

And ladies and gentlemen, with that, we'll be concluding today's conference call and presentation. We do thank you for joining. You may now disconnect your lines.

Good day, and welcome to the Ondas Holdings, Inc. Third Quarter 2025 Conference Call. [Operator Instructions]

Before we begin, the company would like to remind you that this call may contain forward-looking statements. While these forward-looking statements reflect Ondas' best current judgment, they are subject to risks and uncertainties that could cause actual results to differ materially from those implied by these forward-looking statements. These risk factors are discussed in Ondas' periodic SEC filings and in the earnings press release issued today, which are both available on the company's website. Ondas undertakes no obligation to revise or update any forward-looking statements to reflect future events or circumstances, except as required by law.

During this call, Ondas will refer to certain non-GAAP financial measures. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is shown in our press release issued earlier today, which is available at the Investor Relations section of our website. This non-GAAP information is provided as a supplement to, not as a substitute for or as superior to, measures of financial performance prepared in accordance with GAAP. However, management believes these non-GAAP measures provide investors with valuable information on the underlying trends of our business. Please note, this event is being recorded.

I would now like to turn the presentation over to Eric Brock, Chairman and CEO. Please go ahead.

Well, thank you, operator, and good morning. I want to get started by welcoming everyone to our quarterly conference call. We appreciate you joining us today and for your continued interest in Ondas. I'm happy to be joined this morning by key members of our leadership team, including Neil Laird CFO; Oshri Lugassy, the Co-CEO of Ondas Autonomous Systems; Meir Kliner, President of OAS and the Founder of Aerobotics; and Markus Nottelmann, the CEO of Ondas Networks.

So let's turn to the agenda. We'll begin the call with a review of our key highlights from the third quarter of 2025. Then I'll hand the call to Neil for a financial review of our Q3 2025 results. After that, we'll provide business updates for our OES and Ondas Networks business units, while I'll ask Oshri and Meir to share commentary on current business activity and progress against our plans. During our OES business review, we will also share some context on the progress of our strategic acquisition program. And we will also hear from Tal Cohen, the Founder and General Manager of Sentrycs, who is joining the call to share some insight into the Sentrycs technology platform and business as well as a strategic fit with Ondas. After the operational updates, I will share an outlook for the remainder of 2025 and beyond, and as we continue to see strong execution on our growth strategy and further momentum into 2026. Then we will wrap the call and open the floor for investor questions.

Let's start by setting the stage for today's discussion. Simply put, Ondas is positioned for success. That position wasn't luck. It's the result of years of hard work, discipline and planning. We earned it as of our investors. We've built a strong foundation through talent and perseverance and again, through the support of our investors. And now we find ourselves at the heart of an industry-wide transition. The autonomous and unmanned systems, defense and security markets have reached an inflection point, moving from technology development to platform adoption. As we said many times, the market from here will be defined by scaled operating companies not by those simply introducing new technology platforms. Innovation and technological advancement remains critical, but they're not sufficient on their own to create high returns on capital and equity value. The orders from this point forward will be those who can leverage the extraordinary advancements in autonomy, unmanned systems and physical AI to build durable, efficient and scaled businesses.

And that's exactly what we're doing at Ondas. We're demonstrating platform adoption and validation across both our Optimus and Iron Drone systems and with the new technology platforms we are layering in at OAS. We're benefiting from strong market demand. while seeing firsthand at the beginning what we believe is a major counter UAS boom, where Ondas is extremely well positioned to win. In July, we laid out our core strategic growth plan, and the response has been tremendous. Truly a mandate from our investors to execute. We've immediately demonstrated execution on that plan. We are doing what we said we would do because we've been planning for this transition for years. This plan creates value across the board for our customers, partners and the incredible talent driving Ondas' growth. And, of course, it creates opportunity and long-term value for our investors.

A key enabler of that success will be our balance sheet strength. We've raised approximately $855 million since June to support our growth plan. We believe Ondas now has one of the strongest balance sheets in the industry, giving us access to a deep capital pool and a meaningful cost of capital advantage. Access to low-cost capital is the foundation of a true competitive advantage, one that allows us to move decisively, scale efficiently and lead confidently in the fast-growing markets we are attacking. To support the coming boom and autonomous unmanned technologies, the industry needs scaled leaders, companies capable of operationalizing the technologies that have been validated in the field, Ondas is focused on that exactly and again, deliberately executing the growth plan that we laid out in July.

Now let's turn to the overview. Momentum continues to build at Ondas, and I'm very pleased to report that we delivered another record quarter, not just financially, but also operationally. In the third quarter, we generated $10.1 million of revenue, a more than sixfold increase year-over-year and up nearly 60% sequentially from Q2. Our consolidated backlog log grew to $23.3 million, more than double where we started the year, and that number reaches over $40 million when including another $18 million related to acquisitions that have closed or pending closure in the fourth quarter. We expect our backlog to grow through the end of 2025 as our pipeline matures, given the strengthened visibility on customer order plans. Given the strength of our execution and our expectations for strong market demand, we are raising our full year 2025 revenue target to at least $36 million, which means we expect to generate more than $15 million in revenue for Q4. We are also establishing a goal for at least $110 million in revenue for 2026.

The outlook for Q4 in 2026 is being driven primarily by OAS, where we continue to expand with existing customers and add new ones. Our customer pipeline is expanding and maturing, and we expect a strong end to 2025 from an order standpoint, which supports our outlook for significant ongoing growth in 2026. The OAS team is building the operating infrastructure to support a multiyear growth outlook where scaling production, fuel services and sustaining capabilities to meet accelerating global demand for our autonomous and unmanned systems. Oshri and Meir will share more details on the investments we are making in scaling operations.

At the same time, our strategic growth program is accelerating. This is the evolution we've been planning moving from stand-alone technology platforms towards a system of systems model that unites air, ground sensing and communications into an integrated autonomy ecosystem. The evolution enables a faster path to operational maturity and we believe unlocks significant upside to both revenue and profitability. To further maximize the opportunity ahead of us, we establish Ondas Capital, which we launched in the third quarter. Ondas Capital is building a technology bridge from Ukraine to the United States and Allied European nations, focused on scaling combat proven unmanned and dual-use technologies into production and commercialization. This initiative broadens our reach, strengthens our industrial base and supports the growing alignment between innovation, security and economic resilience.

Meanwhile, Ondas Networks continues the hard work to drive adoption of its dot16 wireless connectivity platform. As Markus will share the AAR's wireless communications committee formally selected dot16 as a wireless road map standard for all AAR-owned frequencies, including the 900, 450 and now 160 megahertz networks. While the hard work will continue, this formal designation validates our long-term strategy and continues to position Ondas Networks at the center as a generational upgrade cycle for railroad communications across North America. Finally, from a financial standpoint, the company remains exceptionally well capitalized. We raised approximately $855 million in equity in 2025, providing the capital strength to support our business plan, including both our core operations and our strategic initiatives. We are investing this capital to accelerate growth and shareholder value creation as we said we would.

To summarize, Ondas is positioned for continued record growth through the balance of 2025 and into 2026, and we continue to build what we believe is an important and valuable defense and security technology company.

I want to now provide some context for the critical objectives defined within our long-term business planning. What you see here is a continuation of the strategic road map we've been building over the past year and road map that's now delivering real tangible results. Ondas today is no longer just a developer of market-leading technologies. We are building a scaled operating platform that connects world-class talent and technology along with partners and customers into a unified growth engine. At the center of this effort is Ondas Autonomous Systems where we continue to build the core OAS operational platform. Under Oshri leadership, that platform is scaling rapidly, supported by seasoned executives, and impactful cross-functional Advisory Board and a growing ecosystem of partners across technology, sales and production. Oshri and Meir will share more details on the operational infrastructure we are building later in the call. Over the last several months, we've expanded the scope of our capabilities through strategic acquisitions and investments that strengthen our operating foundation and extend our reach across multiple domains.

We entered into a definitive agreement with Sentrycs, which will bring advanced cyber over RF throw detection and mitigation to complement our Iron Drone Raider. We added a payroll motion, which expands us into unmanned ground systems, robotics and fiber optic communications, and we acquired Forum Defense, a leader in subsurface intelligence and demining robotics that brings a new dimension to OAS' autonomy portfolio. Other small yet strategic acquisitions that contribute engineering, AI and optics expertise were added, and that includes nickel engineering and Insight Intelligence sensors. At the same time, we formed a strategic partnership and made a minority investment in Risk Dynamics, whose attributable drone platform and leadership in European defense markets, position us perfectly to capture new opportunities in Allied regions.

Taken together, these additions create a growing portfolio of capabilities that make Ondas a more complete and competitive company. spending air ground sensing and communications technologies. And as we expand this platform, we're also expanding our talent base, customer reach and partner ecosystem, each one reinforcing the other. This creates true operating leverage, which we believe will drive faster growth, stronger margins and higher profitability as we scale. And the speed at which we do this is very important. The key message here is that is this is not just a compilation of technologies and corporate entities. We are building a scalable unified service delivery platform designed to service demanding customers and use cases and importantly, accelerate revenue growth and our path to profitability. We're building a stronger, more diversified Ondas, one capable of sustained performance, multi-domain leadership and meaningful long-term value creation.

Now let's turn to Ondas Capital. We are very excited to have formally launched Ondas Capital, which represents a powerful new strategic growth platform for the company. Ondas Capital is a multiyear initiative designed to deploy up to $150 million to accelerate the transition of battle-tested unmanned and dual-use technologies from Ukraine and other allied nations into trusted U.S. and European production. The mission is straightforward, to scale proven technologies in unmanned systems, AI, and dual-use innovation that are already validated in the field and ready for production whereby Ondas and our partner ecosystem can drive faster, more cost-effective deployment across the major defense and security markets in the U.S. and Europe.

This effort is not just about capital. It's about building an industrial bridge between innovation and deployment. By integrating investment, production and market access, Ondas Capital will help drive commercialization of critical defense and security technologies strengthen the Allied industrial ecosystem and create meaningful long-term value for our shareholders. A major strategic benefit of Ondas Capital is its global footprint. We are anchored here in the United States, but we now have forward offices in key Allied innovation in financial corridors, including Boston, New York, Kiev, Talen, London and Frankfurt. Being on the ground in Eastern Europe and Ukraine is a critical advantage. It allows us to directly access cutting-edge combat moving technologies while working side by side with our partners and allies at the front line of innovation. This complements our deep operating experience in Israel where we've demonstrated how to take advanced defense technologies and scale them successfully through production, global partnerships and commercialization.

We believe Ondas Capital will become a cornerstone for strategic growth, international collaboration and industrial resilience while creating new pathways for financial and operational expansion across the Ondas Group. And finally, in the interest of time today, I'm keeping my comments brief, but I'm pleased to share that we plan to host a dedicated Ondas Capital investor call in December. James Acuna, who is leading this initiative, will join me, along with our leadership team to provide a deep dive into the opportunity, business model and financial plan for Ondas Capital. We're incredibly proud of the progress to date, and I look forward to sharing much more very soon.

I will now hand the call to Neil to provide a detailed financial update. Neil?

Thank you, Eric. As I get started, I wanted to remind our investors that our financial statements reflect the early stage of platform adoption for our products and the initial success of our acquisition program. We expect to demonstrate a significant revenue increase over the next few quarters, both from organic growth and from our acquisition pipeline.

Revenues increased over 580% to $10.1 million in the third quarter, up from $1.5 million in the third quarter of last year. This increase was driven by OAS revenues, which were $10 million compared to $1.0 million a year ago. It reflects the ongoing deliveries of Iron Drone and Optimus Systems and contributions from a pair of ground robots related services under contract for military and public safety customers. Gross profit was $2.6 million, representing a 26% gross margin in the third quarter as compared to a gross profit of $0.05 million in Q3 of 2024. The increase in gross profit year-over-year results from increased higher-margin product revenue at OAS compared to lower margin service and subscription revenue in Q3 of 2024. Gross margins can be volatile on a quarter-to-quarter basis due to revenue levels that reflect the early stages of platform adoption, certain fixed service costs reflected in our cost of goods sold and shift in revenue mix between product development and services revenue.

Operating expenses increased to $18.1 million for Q3 of 2025 as compared to $8.7 million in Q3 of 2024, an increase of $9.4 million. Our operating expenses increased primarily due to an increase in personnel costs as we are investing in leadership to support our business growth and strategic initiatives. Those operating expenses include an increase of $5 million of noncash items. Cash operating expenses, which exclude noncash items such as stock-based compensation, depreciation and amortization were $11.6 million in the third quarter of 2025 compared to $7.2 million in Q3 of 2024, an increase of $4.4 million. The increase in cash operating expenses is due primarily to higher personnel costs, particularly with the OAS operating infrastructure build-out and similarly at Ondas Holdings, the support expected business expansion in the coming quarters and the company's strategic growth plan. Adjusted EBITDA loss increased $1.7 million to a loss of $8.8 million for the current quarter. The operating loss was $15.5 million compared to $8.7 million in the third quarter of last year.

Now let's turn to the cash flow statement. We had cash of $433 million as of September 30, 2025 compared to $30 million as of September 31, 2024. Cash used in operations for the first 9 months remained relatively flat at $26 million compared to $25.4 million for the first 9 months of 2024. Cash used in investing activities for the first 9 months of 2025, including a handful of strategic investments, as indicated on the slide. We find these investments as a good use of cash and expect much higher returns than money market investments. We have discussed in detail the strategic relationship with [ RIP ] previously. As it relates to investments in companies such as LightPath, Kopin and Safe Pro, we believe we have unique expertise to evaluate the opportunity for financial returns. And these companies also offer strategic business relationships within our partner ecosystem.

We generated cash from financing activities of $448.2 million during the first 9 months of 2025. The majority of this came from the equity offerings in June, August and September. In addition to $24.7 million from the exercise of warrants and stock options. We expect operating cash utilization to continue to improve in the coming quarters. Improved cash efficiency comes from operating expense leverage at our OAS business unit, given our expectation of increased revenue and gross profit growth over the course of 2025 and into 2026. Further, our partnership with Klear, which we expanded in July, will support our revenue growth, including for revenue streams we add through our strategic acquisition program. This working capital is non-dilutive credit facilities to fund certain inventory and accounts receivable balances.

Again, we held cash of $433.4 million as of September 30, 2025 compared to $30 million as of September 31, 2024. We are pleased with the results of our program to improve the structure of the balance sheet by raising cash and converting debt. Shareholder equity as of September 30, 2025 was $487.2 million compared to $16.6 million as of September 31, 2024. Furthermore, Ondas' pro forma cash balances were $840.4 million, and stockholders' equity was $894 million, adjusted for the $407 million in net proceeds raised in an equity offering on October 7, 2025. And be forecast used for operations and to finance acquisitions and investments in the fourth quarter.

And I'll hand it back to you now, Eric.

Now when we transition to a review of our business units and ask Markus, Oshri and Meir to provide -- to share updates on business development activity and operations at Ondas Networks and OAS. Let's start first with Markus who is moving on to networks in our 16 platform deeper into the railroad operating groups, which will eventually have its rewards. Markus?

Thank you, Eric. It's great to be here and to update you on some of our key initiatives and developments in Q3.

To pick up from our last earnings call, support throughout the rail sector continues to build around dot16 key the IEEE standard that Ondas has pioneered and continues to support in advance. In September, the wireless communications committee, a specialized working group within the Association of American railroads, announced that it has selected dot16 for all new developments in the AAR on frequencies. This represents the AAR's commitment to dot16, not only on the 900 and 450, but also on the 160 megahertz network. Again, this means that all of the AAR on frequencies are destined to adopt dot16 [indiscernible] platform.

As outlined in the Q2 earnings call, the 160 megahertz network have characteristics that make it a compelling case for railroad investments. Specifically, the 160 megahertz network is ubiquitous. Where there is rail, there's 160 megahertz coverage. This is the frequency where the railroads through the AAR own and operate 1.3 megahertz of spectrum, making it ideal for larger data-intensive IoT applications. Of the railroad on spectrum, the 160 megahertz frequency also has the best propagation characteristics, making it ideal for difficult terrain and dark territory. Addressing dark territory applications by providing connectivity for railroad applications and staff represents a substantial opportunity for Ondas networks.

I would like to highlight how quickly momentum is building around dot16 on the 160 megahertz network. In Q4 and early next year, we are running several separate field trials on Class 1 and other railroads. Three railroads that in aggregate address long-term industry needs in significant markets. Specifically, these POCs address telecommunications signaling in connected wayside topics as well as general connectivity topics for connected railroad workforce. This is significant as it moves Ondas networks from engaging with railroads on individual use cases to implement dot16 general-purpose networks in which adding safety and operation enhancing applications becomes plug-and-play.

On the revenue front, we will be shipping the first Northeast Corridor access production units at the end of Q4 with further deliveries in 2026. We take pride in the fact that our products will be used for a safety-critical positive train control application in the Northeast corridor on track. Our joint development program with Siemens Mobility India for Head of Train Radios has also progressed to deliveries and revenue within the next several months. As many of you may be aware, in July, the Cybersecurity and Infrastructure Security Agency, also known as CESA, issued a notification related to the security issues with the current generation Head-of-Train and End-of-Train communications protocol. This has given railroads a significant reason to accelerate the finalization of the HoT generation 4.0 specifications. Given that the dot16 protocol that Ondas networks developed, for NGHE addresses those relevant security issues.

In September, the wireless communications committee announced that the NGHE specifications will be completed in 2026. We continue to engage with the HoT and EoT manufacturers on design product development tasks to take advantage of the updated WCC time line. We also continue to engage with the railroad and specific 900 megahertz applications, though time lines of large network deployments remain uncertain. The 900 megahertz time lines are frustrating, though we are creating even more compelling opportunities in addition to the 900 megahertz network with the railroads and believe the market international opportunity for our dot16 technology remains significant. Overall, we are pleased with the commitment the industry is making to the adoption of dot16. Our direct engagement with railroads and vendors of wayside and telematics devices is accelerating the build-out of the dot16 ecosystem, which we expect will lead to accelerated commercialization and believe we will be able to demonstrate beginning of the adoption curve in 2026.

I will now hand the call back to Eric.

Thank you, Markus. I will now ask Oshri Lugassy to take the floor and provide a business update for our OES business unit. Meir Kliner will also share some context on the progress of the build-out of the OS operating platform. We will also be joined by Tal Cohen, the Founder, General Manager of Sentrycs, who will introduce the company, its technology platform and the strategic fit with Ondas in our Iron Drone platform.

Oshri, please proceed.

Thank you, Eric. During Q3, we made a huge leap forward in building Ondas Autonomous System into a true defense tech and security film. We are working relentlessly toward our vision of delivering next-generation autonomous and connected solutions for defense, homeland security and critical missions. OAS is shifting rapidly. We are dramatically expanding our talent base, our partnerships, our customer reach and our technological capabilities. In the upcoming slides, we will elaborate on how these elements are driving our growth. Our vision is to integrate advanced technology resilience and scale to create autonomous infrastructure that nations and industry will rely on. Our goal is bold global to build a powerful global leader that deliver a complete portfolio of defense and security capabilities to the most important customers tasked with keeping the world safe.

We are particularly focused on protecting from the surge interests cost by drones. We are prioritizing combining sensors that can detect and track threats from small UAVs to large ones with factors capable of neutralizing them safely, protecting the world's most critical assets. We aim to reinforce national borders and forces with cutting-edge technology, enhancing surveillance and intelligence capabilities, protecting civilians in cities and securing essential infrastructure that sustain modern life. Across all our systems, we integrate advanced AI at multiple levels of autonomy from assisted to fully autonomous, powered by some of the most sophisticated robotic technologies in the world. As we promised in our last meeting, we've built real momentum and equipped OAS with much stronger commercial, operational and technological muscles.

During the quarter, we delivered record high revenues of approximately $10 million, marking the strongest performance in our history. Our backlog grew to $22.2 million at OAS as of September 30 and was more than $40 million when including the announced acquisitions. Further, our customer pipeline remains robust, and we expect to close the year strongly with further backlog expansion. Indeed, we are tracking significant pipeline activity that we hope to share in the near term. This will support accelerating growth momentum into 2026. We advanced our M&A and strategic growth program and completed the multiple strategic acquisitions, which are adding immediate operational and financial value to Ondas. We established new partnerships and onboard top talent to strengthen and expand OAS' operational influence structure. We achieved several important milestones across our portfolio. Optimus was officially listed on the green UAS framework with inclusion on the Blue UAS list spending with a U.S. DoD.

At the same time, we continued to expand our global pipeline for the Iron Drone Raider, strengthening our position in the fast-growing counter U.S. market. We successfully executed multiple counter U.S. pilots in the U.S., Europe and Asia, demonstrating interoperability across our systems. Iron Drone Raider was showcased at the [indiscernible] counter U.S., ICE 2025 exercise in San Diego, drawing strong interest from both U.S. and international agencies. We have performed several similar demonstrations for U.S. customers which have been well received. Our Iron Drone Raider was also selected by Security Germany, a leading integration partner to the German [ arm ] forces and other critical security operators following successful system integration and demonstrations conducted in Germany by robotics. We expect this hard work to turn into demand in the coming months given the urgent need to protect critical infrastructure and borders in Europe, and we believe Ondas is positioned to lead here.

Of course, our market position in even stronger with addition to Sentrycs, which opens a tremendous opportunity to market a layered counter U.S. solution suite. Similarly, our U.S. pipeline continues to mature, in lined with a growing demand for advanced defense and security solutions. Our marketing partner, Mistral, is helping support a growing and maturing set of pipeline opportunities with defense and homeland security customers. We formed the partnership and made a strategic investment with lift dynamics, including an initial order for the West [indiscernible] is making impressive progress in Europe with [indiscernible] and we are excited to support the global success, of course, including in the U.S. On the production side, we launched NDAA compliant made in U.S. fiber optic poles at American robotics, strengthening our domestic production base. We have also advanced the required work to prepare the U.S. supply chain for Optimus and Iron Drone and expect to have U.S. built systems available in Q1 2026.

Finally, we continued scaling our operating platform through key leadership additions, most notably the appointment earlier this week of Major General retired Yoav Har-Even, former CEO of Rafael Advanced Defense Systems to our advisory board. His experience and insight we significantly enhance our strategic debt as we continue expanding OIS globally.

I will now pass the call to Meir Kliner, who will share an update on the M&A program and the operational scaling activities at OAS. Meir?

Thank you, Oshri. During the quarter, we accelerated the execution of our strategic growth program, which drives value creation through accelerated cost and a clear path to profitability. The first start after outlining the plan for investor in July, leveraging the work and the preparation we began earlier in the year. Our acquisition program is off to a fast start after outlining the plan for investors just last July, which is leveraging the work and the preparation we began earlier in the year.

Our M&A strategy remains highly focused and disciplined targeting companies and technologies that expand OAS' commercial reach and strengthen our product ecosystem. Each acquisition we made contribute a unique capability within our multi-domain architecture, allowing us to integrate aerial, ground and other critical elements and systems into a unified system of systems. This integration merges ISR counter UAS robotics, communications and sensing technologies under 1 [ interporable ] platform. Synergies accelerate customer solution delivery enhanced revenue growth and increased operation leverage through OAS' scaled infrastructure and position OAS as a next-generation multi-domain defense and security leader. We are building a scaled and intraporable platform by bringing together a group of highly complementary companies, with representing a critical pillar of defense autonomy.

In the last several months, we made significant progress in expanding the OAS platform through strategic acquisitions, adding 5 new companies that bring critical capabilities, technologies and customer relationships to our group. These acquisitions strengthen OAS across critical operational domains, including air, ground and cyber while expanding our global footprint with Tier 1 defense and security customers. With SPO, we are now engaged in critical components for missiles and advanced drone systems, reinforcing our access to the defense supply chain. Apeiro Motion marks our entry into ground robotics and payload systems, a key capability for border defense and maneuver in forces operating in complex terrain. Foreign defense expands our subground and engineering platforms, enabling OAS to participate in land clearance and de-mining operations, which are essential to modern defense missions.

In the counter UAS domain, our primary focus area we added inside intelligent sensors, which delivers electrooptical and AI-driven identification of [indiscernible] drones. And Sentrycs, which we are have entered into a definitive agreement with cyber over RF technology provides one of the most effective and precise counter UAS solution available, capable of neutralizing threats with minimal collateral impact. And with [ Tickle ], which we acquired in July, we have further strengthened our elite engineering team, adding important capabilities valued by our defense customers. Together, this company significantly enhanced OAS technological debt operational diversity and customer reach, solidifying our position as a next-generation multi-domain defense technology leader. We don't have time on a quarterly call to do a deep dive into the recently acquired companies. But will expand on the Sentrycs and ask Tal Cohen, Sentrycs Founder and General Manager, to share some thoughts in a few moments.

As we continue to scale on the autonomous systems, we are building a strong operational infrastructure that connects all elements of our business from our core operations and acquired companies to new talent and an expanding partner ecosystem. Our goal is to create a fully integrated operating platform that supports growth accelerates execution and enhance efficiency across the group. This integration is being supported by the establishment of a senior leadership player at OAS, which will manage the integration and growth of the acquired businesses. The expanding OAS leadership runs across the critical disciplines, including sales and marketing, supply chain and field support, HR, legal and finance and accounting. We are expanding our go-to-market capabilities, lining our global sales teams, partners and customer networks under one commercial framework.

On the same time, we are strengthening our operational backbone, unifying, manufacturing, distribution and technology resources to support higher production capacity and faster deployment cycles. We also brought a new leadership and advisory talent to help guide execution and drive collaboration across all subsidiaries. Finally, by connecting our technology platforms, talent and ecosystem partners, we are establishing the foundation for sustainable scale and long-term value creation as a multi-domain defense and security leader. The integrated structure is transforming OAS into a true multi-domain defense network, where each company strengthens and amplifies the others. Emerging aerial, ground, sensing and cyber capabilities into one [indiscernible] scalable and autonomous system of systems. Our counter UAS segment, a key area of focus and growth will be anchored by the integration of Iron Drone and Sentrycs together, delivering a complete hard and soft skill capabilities under a unified combining control architecture.

This system of system framework is now coming together with each company contributing a critical capability to the border OAS defense technology ecosystem. And as we move forward, we will continue adding companies and technologies to complete our portfolio and further strengthen OAS position as a next-generation defense and security leader. I would like to take a moment to focus on Sentrycs. Sentrycs will expand OAS' global reach to Tier 1 defense public safety and security agencies. Organizations actively protecting critical infrastructure across more than 25 countries. Sentrycs cyber over RF technology represents one of the most advanced counters solutions in the market today, enabling safe, precise and regulation compliant on neutralizing without gemini or collateral interference. Sentrycs Technology is already field-proven, deployed globally across airports, defense facilities and public safety operations, demonstrating extended range multi-targeting engagement and adaptability to involving larger technologies. This acquisition will position OAS with a unique software capability, perfectly complementing Iron Drone [indiscernible] system. And together, they create comprehensive counter U.S. architecture unmatched in the market.

I will now hand the call over to Tal Cohen, General Manager of Sentrycs to review the company and this market of counter-UAS. Tal?

Thank you, Meir, and thank you for having me today. At Sentrycs, we are truly excited to join on us. We believe this partnership will create a significant opportunity to deliver together with Ondas the ideal solution to the evolving run trade that has rapidly emerged over the past few years. I'm pleased to highlight how Sentrycs is driving a major advancement in our CUS or counter-unmanned area systems capability through our proprietary cyber over RF technology or [indiscernible] works differently from a traditional gaming or kinetic solutions rather than broadly disrupting signals or deploying interceptors, Sentrycs system interacts directly with a drone communication protocol the language between the drone and its controller, enabling us to detect, identify track and then assume control of erosion in seconds.

Some of the operational advantages stand out. Rapid deployment and simplicity. Sentrycs system can be deployed in minutes, in a signal [indiscernible], precision and safety, CoRF ensures 0 interference with [indiscernible] nearby communication systems, enabling safe mitigation in civilian critical infrastructure and defense environments alike. Proven Global performance. Sentrycs is already trusted by defense, public safety and infrastructure agencies in more than 25 countries. By integrating Sentrycs into the OAS architecture alongside our IL platforms, ground systems and sensor networks, we will be delivering a complete detect to the fit CUS ecosystem.

Sentrycs brings the soft layer of precise cyber protocol takeover, which cars organically with our kinetic platforms for hard [ killer ] response. As [indiscernible] become more agile, more numerous and more diverse across borders, critical infrastructure and contested environments, the CoRF capability give us the scalability, agility and compliance required for today's multi-domain defense posture. In short, we center some board, we are not just reacting to drone. We will be proactively controlling them safely, reliably and at scale. Sentrycs global footprint is growing rapidly. We have now successfully deployed our solution in more than 25 countries, demonstrating the strong demand and the proven value of our technology for customers across the defense, security and public safety sectors. Sentrycs has reached more than 200 global deployments, reflecting strong and accelerating international adaptation among Tier 1 defense and security agencies worldwide.

In Europe, we are active in 13 countries with 74 deployments, achieving 24% year-to-date growth. In Asia, we have expanded expose 6 countries with 82 deployments growing 32% year-to-date. And in North America, we have seen the fastest growth, 21% year-to-date with 34 deployments across 3 countries. We are also extending our presence in Africa, South America and Australia through new multi-agencies programs that help highlight the scalability and versatility of our CoRF counter U.S. technology. Altogether, this demonstrates not only the global scalability and operational readiness of Sentrycs, but also how this capability will reinforce OAS' position as a trusted provider of field-proven multilayer CUS solution for difference and critical infrastructure protection.

A combined solution will allow detection, mitigation and situational awareness under one coordinated architecture. We start with Sentrycs, which provides the first line of defense through its Cyber-over-RF technology. It delivers long change detection, tracking and identification of drones and enables safe cyber-based mitigation, taking control of the [indiscernible] and lending it without gaming or collateral interference. This also gives us critical intelligence, real-time insights into the dance identity behavior and even its operators location.

Next, we add the iron drone river, Ondas autonomous kinetic interception system is designed to automatically intercept and defeat any drone threat, including those that operate without radio controller GPS, completing the full spectrum protection layer. Finally, both systems feed into a unified situational awareness interface, where data from Sentrycs and Iron Drone are fused into a single automated operational picture. This integration allows operators to detect, track and neutralize [indiscernible] in real time while reducing the workload and improving decision-making accuracy. Together, these capabilities will deliver comprehensive country U.S. architecture, one that covers every thread type across every environment with precision, safety and automation.

When we look at the broader counter U.S. market, the opportunity ahead of us is extremely significant. Global demand for [indiscernible] technologies is projected to grow from roughly $2.4 billion in 2024 to over $10.5 billion by 2030, representing a 27% compound annual growth rate. This growth is driven by the rapid escalation of drone threats across defense, homeland security and critical infrastructure sectors. And by increasing government funding and regulation worldwide as we are seeing strong momentum across all regions. Sentrycs is already well positioned in each of these markets, with active deployments and a proven track record supporting Tier 1 defense and security agencies.

If we move to the revenue outlook, Sentrycs continued to demonstrate exceptional growth maintaining a triple digit compound annual growth rate with bookings expected to more than triple over the next few years. The company also sustains a strong gross margin in the upper 70% range underscoring the scalability and efficiency of its technology platform. Demand continues to increase across Europe, the United States and Southeast Asia, fueled by both the raising number of drone incidents and the urgent need for compliant, effective and automated defense solutions. Our Cyber-over-RF approach provides exactly that. a simple, safe and proven method to detect, identify and naturalized tons without causing collateral interference, positioning Sentrycs and OAS to capture a meaningful share of this rapidly expanding $10 billion market.

That will conclude my remarks. Thank you for having me here today. We are excited about what's ahead of us and look forward to sharing more great news with you soon. With that, I'll hand the call back over to Eric. Eric?

Thank you, Tal. As you know, we are thrilled to have Sentrycs join the Ondas team. We see exceptional talent as Sentrycs combined with market-leading technology, which we believe is extremely well positioned for the massive addressable market opportunity we have outlined. We believe Ondas is building a very strong position in front of a coming boom in CUS infrastructure deployments globally.

We'll now turn to the outlook for Q4 and take a quick look into 2026 as well. As we highlighted throughout the year, our programmatic M&A effort remains very productive, and we believe it will continue to be highly accretive for our investors. We'll continue to build our corporate development team. And as we expand our capabilities, we're seeing the pipeline mature rapidly. Just as importantly, we're seeing significant inbound interest from potential partners, investors and acquisition candidates who view Ondas as a strategic home for their technologies and businesses.

The pipeline isn't just maturing, it's broadening. We're now seeing more established and operationally mature companies emerge as relevant targets, and that's exciting. It speaks to the strength of our reputation and the scale of opportunity we're creating for 2026 and beyond. At present, we have over 20 companies in the active M&A pipeline with advanced activity with 7 potential targets. Collectively, these opportunities represent more than $500 million in potential additional revenue, highlighting the material impact our strategic growth program to have as we continue to execute. We believe this momentum positions us for a very strong 2026 and one where our acquisitions and partnerships will not only add scale and capability, but also drives higher operating leverage, faster growth and sustained profitability.

Ondas is building a platform design for expansion. And we are confident that the next phase of our M&A program will continue to strengthen both our business and long-term shareholder value.

Let's turn to the financial and operational outlook. As we have highlighted, Ondas continues to build momentum, and we expect to see strong growth across all areas of business led by OAS as we move through the balance of 2025 and into 2026. We believe we can comfortably meet the financial and operational objectives we outlined earlier this year. And today, we're updating those targets to reflect our progress and visibility. For the full year 2025, we're now raising our revenue target to at least $36 million, which puts our Q4 revenue target north of $15 million. Looking ahead, we've also -- we're also providing our first formal view into 2026. Based on the visibility we have today, we are targeting at least $110 million of revenue for 2026. And I would note that this number may in fact prove conservative given our expanding customer base, backlog and maturing customer pipeline as well as our expanded M&A opportunity sales.

We also expect to announce additional acquisitions during Q4, continuing to execute our strategic growth program. As we stated previously, we continue to target the addition of a U.S. DoD or DHS customer 2025, which will represent another major milestone for the company. Of course, new acquisitions would be accretive to our 2026 outlook. As it relates to Ondas Networks, we are heartened by the AAR's expanding commitment to dot16, with 3 major private wireless networks have now been formally designated for upgrade with dot16 technology. We do believe we will see meaningful adoption by the railroads in 2026, and this will help reward our investors for the strategic value we are creating with Ondas Networks. However, Until we see the orders, our outlook today reflects only modest revenue expectations from Ondas Networks relative to the OAS business.

We will also continue to be as communicative as possible with our investors. To that front, we plan to host 2 dedicated events. In Ondas Capital Investor Day in December, we will dive into that business unit strategy and investment road map. In an OAS Investor Day in January, which will update our business plan from last July and focus on our plans to scale our operating platform, capture new customers as well as share our technology road map in a detailed financial plan for 2026. In summary, Ondas is executing on all fronts. We're growing, scaling and expanding strategically. We built an exceptionally strong foundation and we're positioned to deliver a record year in 2025, while setting the stage for even greater performance in 2026.

Before we wrap the call and take investor questions, I want to briefly revisit how our financial and operating models are designed to accelerate shareholder value creation. Of course, that's the bottom line for me and our leadership team and also the bottom line for you. The formula here is straightforward and it's working. Our core growth plan is delivering momentum in massive end markets that are still in the early stages of a 10-plus year adoption cycle. We're driving revenue acceleration. And as we continue to scale, we're generating operating leverage across the platform. That combination with sustained growth and capital efficiency gives us capability into increasingly profitable growth over time, which we believe will support a premium valuation for Ondas.

Layered on top of that is our strategic growth plan, which amplifies those returns, leveraging our access to low-cost capital. With a premium-valued operating platform, we're able to acquire premium capabilities and do so in a way that's highly accretive to both earnings and long-term value. Together, these models, our core operations and strategic expansion create a powerful cycle. We deploy growth capital, we drive operating scale and we expand platform sources that open new customer and market opportunities. This is how we intend to continue building shareholder value through execution, scalability and disciplined capital deployment that compounds over time. I'm really excited to wrap up 2025 strongly and are further excited to continue to leverage our momentum into 2026.

With that said, operator, we will now move to take investor questions.

[Operator Instructions] And the first question will come from Amit Dayal from H.C. Wainwright.

Eric, very impressive, the spirit which you are executing. Just along those lines, you highlighted that you are pursuing 7 deals that you are at advanced stages from an M&A perspective. Just to clarify, if you do close all those 7 deals, are you saying annual revenues or at least the run rate could exceed $500 million per year?

No, I'm not saying that specifically to the 7 targets, we're talking more broadly about the pipeline we outlined. Let me just add, that's incremental to -- it is incremental to the revenue targets we gave for 2026.

Okay. So that's where potential upside could come from outside of any other organic developments for you?

Right. We think it's going to be both paths.

Understood. And then as we think about future OAS revenues, how should we think about onetime product to system sales versus any recurring revenue components from those sales?

I think you're going to see the bulk of what we're doing in the next 12 to 18 months be the platform sales, so system sales and infrastructure build-outs. As we outlined in the July Investor Day, that's going to look and feel like recurring revenue because we've got this 10-year cycle. And as we build that installed base, we'll be increasingly putting services behind that.

I'd also add that early here, we're seeing significant demand from defense markets. Those tend to be purchases. As you see us build the pipeline and start to pull that through on the commercial side, that lends itself to as drone and data as a service model. So you'll see that mix start to shift as well when commercial starts to grow.

Got it. Just one more for me and then I'll get back in queue. With all of this M&A activity, how quickly can you eliminate sort of overlapping overheads from these recent acquisitions?

Well, we really took some great pains today to outline the leadership team and the OES operating platform layer that we're establishing. And that's going to be a significant leverage point for us. At the same time, the companies we're acquiring are growing quite a bit themselves. So what we're hoping to do and we believe we can do with this operating platform, where I described it accelerates revenue growth, but also the capital efficiency. And I don't think that means that we're going to have to be reducing costs with acquired companies. We're bringing that talent, and I think we're going to be growing that talent as well.

The next question will be from Mike Latimore from Northland Capital Markets.

All right, great. Yes. Congrats. Many exciting developments here. I guess as you look at the guidance for '26, does that get you to EBITDA positive?

We still believe that the operating businesses will be EBITDA positive by the second half of next year. And I think that case is even stronger as we're building the scale through the revenue additions. Let's stay tuned. We did say we're going to have a conference call in the first half of January to lay out the business plan and the financial model for 2026, and there will give you a sense as to when we can cover the holding company costs.

Got it. And then the Sentrycs acquisition sounds very positive. I guess, as you think about the counter U.S. or kind of grown market, do you expect most of your prospects to buy both Sentrycs and Iron Drone, is that going to be a logical fail? Or would you have a big tranche in one category versus the other?

I think it depends on where these systems are to be deployed as these are layered technologies. In many places, having the soft and hard pill will be appropriate in certain locations having one may be more appropriate. So we'll have to see how that plays out. So -- but we do feel like we're in a very strong position as subject matter experts and the technology we can bring that are operational, best-in-class that we can have a great deal of efficiency and guiding -- and value and guiding customers to what that way those layers look at, look like at specific locations.

Okay. Got it. And just last for me. In terms of the U.S. market, which sort of product categories seem most promising for the U.S. and maybe which type of government or government agencies see most promising?

I'd say they're all promising for sure. We do see quite a demand signal here from the Department of Defense as well as DHS in critical infrastructure markets even for -- in public safety for the counter drone. So as looking into 2026, we expect the counter drone to likely lead the charge. However, we're going to see growth really across the board.

And the next question is from Tim Horan from Oppenheimer.

I got about 20 questions, but I'll keep it to 3. Eric, it doesn't seem like Europe has much in the way of near air defense at this point, but it sounds like it has been deployed in a few locations. But is that pretty accurate? And I guess do you have the platform now to kind of go protect -- will sense and protect the [indiscernible] nuclear facilities and other facilities coming can that be up and running relatively quickly?

So yes, you're right. I think you're -- and it's really true globally. The counter drone infrastructure build-out really is just in its -- batters just coming from the first pitch. So we see a lot of greenfield here. And at the same time, Europe is likely uniquely pressured here because the war Ukraine is on their doorstep, and you're seeing many reports, consistently, drone threats emerging in Europe. So we think the urgency across Europe to protect critical infrastructure. You mentioned power plants for sure, airports, other critical assets bases, borders, we see a significant demand there. So I do think this is going to be a place that's going to be very fruitful for us.

And it sounds like Sentrycs is deployed in a bunch of locations. Is there any evidence that their technology works to protect these locations?

Yes. yes, there's tons of evidence, and you can see it in the customer expansion. So this is a very robust proven technology and capability. And we think that curve, that growth curve is going to be sustained.

So on Mike's question of integrating [indiscernible] Sentrycs. When will that actually accomplish? And when can you start to deploy platform yet?

Let's -- I'm going to defer that to our call in January. I don't want to put the time lines on that. I will add that the detection piece of what Sentrycs does, it is critical for the hard kill. You have to identify the threat to go mitigate. In Iron Drone, we have been integrating many different detection technology platforms and we think that's going to be pretty straightforward for us to do with Sentrycs as well. But we'll give more specifics on that in January.

Great. So I guess, lastly, how much does it cost to protect an airport or a site? Do you think both the upfront cost for the customer and the ongoing annual cost?

Like always, it depends, Tim. It depends on how many -- are they deploying a detection technology? Are they doing the soft kill or are they adding hard kill. So it depends, but it can run into the millions of dollars per airport for sure.

And is that an annual recurring fee, do you think? Or how is it compare like the [indiscernible] currently?

There are recurring fees on that. But yes, it's -- again, it depends on what's being deployed, and I think we'll be able to lay that out in January, the financial models around this.

And the next question is from Austin Bohlig from Needham.

Congrats on the great results. First question guides is kind of on the new 2025 guide. The $11 million in uptick. It sounds like is some of this organic success that's higher than your expectations? Or is the majority of this uptick coming from the recent acquisitions?

It's both. I mean we're going to be -- just to be clear, we run the businesses that OAS is 1 unit, and we have 2 business units on this networks and OAS. So that's what we're going to be presenting to you on a go-forward basis. But at the -- from the acquisitions in terms of contribution in Q3, we did highlight that Apparel was additive, but we're seeing strength in the core business as well.

Okay. And then looking at kind of your guidance 2026 guide, how much additional M&A is baked into that $110 million number?

There's no additional M&A. It's only the acquisitions we have announced. It does include the Sentrycs acquisition, which we expect to close soon.

Okay. Okay. And then last question, like understanding gross margins can kind of bounce quarter-to-quarter, but maybe like on an annual basis, how are you guys thinking about those trending next year? Obviously, with the Sentrycs 70%, that's going to be very accretive, but just trying to get a sense from a modeling perspective.

Yes. So you'll see gross margins improve, certainly into 2026. We've talked about 50% as our target. I still want to keep it there. However, let's see when we meet in January. We'll have more precise outlook on that. But I do think 50% is a very comfortable number. And from there, I think we can see upside.

And the next question will come from Glenn Mattson from Ladenburg.

Another one on Sentrycs for me, if you don't mind. Can you just talk about the -- obviously, there's capabilities because you can integrate it with all the other counter UAS and technology that you have. But can you help us understand how unique it is versus what other people have out there in terms of other soft kill solutions or drone capture takeover, just kind of help us understand that a little bit?

Sure. Maybe I'll ask Meir or Tal to how you're probably [indiscernible] to take this?

So just to make sure I understood the question correctly was what is the difference between general or additional or other effect also soft scale capabilities to [indiscernible] capability? Is that the question?

Yes.

So our question is based rent during the presentation on the cost side over capability, meaning we can first detect and track and identify that one in a passive manner. So we are not [ omitting ] or any trading an interference whatsoever. And I think the most important part is for the mitigation. We have some control over that on with starting to communicate while communicating with the drone and not by doing any jamming on fixing any other communication collateral damage. So it's a very short, very safe, very limited and precise surgical and soft skill technology.

Appreciate that. And to your knowledge, is no one else doing something similar in terms of being able to do drone capture like that interferon with other communication technologies?

There are other capabilities that are doing -- trying to do the same or to use the same technology. But currently, the technology is quite well and very effective.

I'll add Glenn, if I could say, in our assessment of the market, the Sentrycs solution was hands down the most robust. And I'd also contrast this just to make sure it's clear. We're not talking about gaming or spoofing radio wings for GPS. We're talking about the Cyber-over-RF, which has significant benefits in performance. This is taken control of the drone and then landing it. So it's the threat is mitigated.

Very helpful. The last question I have is just on the guidance for '26. You talked about margins a little bit. That must give you some sense of like the mix that you anticipate from all these different products that you now have. Can you just give us a sense of like the confidence level in that mix and in that guidance, just kind of -- I think you talked about tracking the pipeline activity. Just is it a portfolio of various...

Yes. On the margin side, I get the question on the margin side, we're quite confident that margins will trend higher from these levels in '26 as we get scale and the mix certainly is going to improve as well.

And the next question is from Matthew Galinko from Maxim Group.

Congratulations on the quarter. I wanted to ask about is working capital, particularly inventory as we kind of see revenue scale pretty quickly. Is there -- should we expect a pretty significant buildup in inventory and critical components? And maybe as a follow-up to that, just how you feel on production capacity and any bottlenecks there that could limit the ramp.

Right. So I'll take the latter first. We believe we have ample capacity to meet this plan and our planning. So I'm not too concerned about that. Of course, it's going to be hard work. Oshri did highlight that we're making a lot of progress in the U.S. in terms of production on the drone platforms on drone in Optimus. So we do believe that in Q1, we'll start to add systems here, and that's going to be able to meet demand we see here. So I feel pretty good about it.

In terms of working capital, we'll probably be building a bit of inventory, but I don't find that too challenging. And obviously, we're well capitalized. We will focus at the same time on our cash conversion cycle. So we're probably able to give you more details at that meeting in January.

And the next question is from Jonathan Sigman from Stifel.

Congratulations on all the progress. Just the operating platform that you're putting together is really pretty unique. And I don't recall anyone having so much rapid success with acquiring businesses in a new industry like you are. I would love to hear how you're thinking about putting in incentive systems for your teams. Understand you'll give us more metrics in January, I just would like to hear a little bit about how you're thinking about the philosophy and how you measure performance and balancing the individual units and driving towards success for the integrated hole.

Yes. Thanks, Jon. So you firstly mentioned that the speed of the M&A, and that is -- I think that observation is spot on. we've articulated this really is an opportunity, probably a once-in-generation opportunity to provide a scaled platform for these board technologies, and they won't belabor that. But yes, we're moving fast and putting together the leadership team and incentivizing that team is really critical. And I think what we're doing is building a situation where we all participate in the upside. So as we grow the business, certainly going to be able to increase cash compensation. But at the same time, we're also using equity incentives, and we find those to be very, very successful.

The teams that we're putting together believe in the mission. There's a lot of excitement about the success we're having. So that certainly helps reinforce the performance even in our productivity. So I like that flywheel and I guess that's really the answer. It's -- we're not doing anything unique on that front, I would say. But I think our team and I think the perspective of management teams that we're talking to on the M&A side. We're excited about building a big company because, of course, they will see that as an opportunity to build a substantial equity value. So I think that's going to work out well for us.

And ladies and gentlemen, this concludes today's question-and-answer session. I would like to turn the call back to Eric Brock for any closing remarks.

Okay. Well, thank you, operator. As we wrap the call, I want to thank you again for spending time with us today. As we outlined, we're expecting a strong finish to 2025, and we're focused on sustaining that momentum into 2026. We, as always, look forward to providing more updates along the way, and I think that's probably going to be sooner rather than later. We do have a lot going on. And from here. Enjoy the rest of the day, we're going to get back to the important work of building the company. So thank you for attending.

And thank you, sir. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Welcome to the Ondas Holdings, Inc. Second Quarter 2025 Conference Call. [Operator Instructions] Before we begin, the company would like to remind you that this call may contain forward-looking statements. While these forward-looking statements reflect Ondas' best current judgment, they are subject to risks and uncertainties that could cause actual results to differ materially from those implied by these forward-looking statements. These risk factors are discussed in Ondas' periodic SEC filings and in the earnings press release issued today, which are both available on the company's website.

Ondas undertakes no obligation to revise or update any forward-looking statements to reflect future events or circumstances, except as required by law. During this call, Ondas will refer to certain non-GAAP financial measures. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is shown in our press release issued earlier today, which is available at the company -- at the Investor Relations section of our website.

This non-GAAP information is provided as a supplement to, not as a substitute for or as superior to measures of financial performance prepared in accordance with GAAP. However, management believes that these non-GAAP measures provide investors with valuable information on the underlying trends of our business. Please note, this event is being recorded.

I would now like to turn the presentation over to Eric Brock, Chairman and CEO. Please go ahead.

Well, thank you, operator, and good morning. I want to get started by welcoming you to our quarterly conference call. We appreciate you joining us today and for your continued interest in Ondas. I am happy to be joined today by key members of our leadership team, including Neil Laird, our CFO; Oshri Lugassy, the Co-CEO of Ondas Autonomous Systems; Meir Kliner, the President of OAS and Founder of Airobotics; and Markus Nottelmann, the CEO of Ondas Networks.

Let's now turn to the agenda. I will begin with a review of our key highlights from the second quarter of 2025. I will then hand the call to Neil for a financial review of our Q2 2025 results. We will then provide a business update for our OAS and Ondas Networks businesses, where I will ask our business unit leaders, Oshri, Meir and Markus, to provide commentary around current business activity and the progress we are making on our business plans. I will then provide an outlook for the remainder of 2025, where we continue to anticipate a record year of revenue growth, primarily driven by OAS. We will wrap the call and open the floor for investor questions.

Now we met for an OAS-specific Investor Day about a month ago and shared a lot of detail on our plan, progress and outlook. So, we will try to be succinct today. But at the same time, we do have quite a bit to discuss, so we're going to jump right into it now.

I'll start by saying that Q2 was another step forward for Ondas. We executed well, sustained momentum and delivered a quarter that reflects both growth and operational progress. We are demonstrating that our multiyear growth plan is firmly on track, supported by the growing global tailwinds and demand for our autonomous drone platforms.

We generated record quarterly revenue of $6.3 million, a more than sixfold increase over the same period last year and up 50% sequentially. This performance was driven by disciplined execution at OAS, where we are delivering against existing programs, expanding with existing -- with current customers and capturing new programs with new customers across the world.

With this momentum and a growing order pipeline, we are reaffirming our full year revenue target of at least $25 million in 2025, with more than $20 million to be generated by OAS. Our customer pipeline is both growing and maturing, and we expect to secure significant strategically important orders from new customers in the second half of 2025. This will enable us to meet our revenue goals for the year, while building backlog to support continued rapid growth into 2026.

From an execution standpoint, OAS continues to expand its footprint in defense and homeland security markets in Europe, the Middle East and the United States. Our Iron Drone Radar system is combat proven with a leading military customer and now new customers, and that real-world validation is fueling a global marketing push. Since February, our dedicated iron drone demonstration team has been engaging customers worldwide, driving strong interest in generating new demand.

Similarly, we are executing and expanding major programs for Optimus System, where we see a growing and maturing pipeline as well. Collectively, this quarter, we deployed Iron Drone under a NATO governmental order at an international airport in Europe. We believe this may have been the first mitigation or in sector CUAS layer at a location like this in the world, and we expect these sorts of critical locations to be a large market for Ondas.

We also completed a successful homeland security pilot in Asia that we expect will convert into a multiyear program. On the Optimus side, our UAE drone box fleet continues to expand for public safety missions in urban environments, and we expect additional growth this year from both existing and new customers, including important opportunities here in the United States. And we have generated additional defense and homeland security opportunities, at least several that we anticipate will close before year-end.

At Ondas Networks, we advanced our long-term strategy with meaningful milestones. The Association of American Railroads formally selected our dot16 protocol for the next-generation head of Train end-of-train system, validating years of strategic development work. We delivered our new 220-megahertz ACSES radios to Amtrak, marking the start of a commercial rollout. We continued migration activity in Chicago's 900 megahertz A-Block and saw increased field activity for broader dot16 applications. Overall, we are executing our plan, scaling production and service capabilities, deepening customer relationships and positioning Ondas for sustained growth into 2026.

Let's take a closer look at the business metrics behind that momentum. In the last 12 months, OAS has secured over $39 million in orders, and our backlog has grown to $22 million at the end of Q2, up from $10 million at the year-end 2024. This backlog growth is translating into revenue and our operational footprint in U.S. and Europe is expanding to support scaled adoption of our platforms.

Our balance sheet is the strongest -- in the strongest position ever. We ended Q2 with $68.6 million in cash. And in July, we fully retired the remaining balance of Ondas Holdings convertible notes through equity conversion. With no holding company debt outstanding, we have the financial flexibility to execute our growth plan. Strategically, we continue to expand our ecosystem, as we will explain in more detail during this call.

The Mistral partnership is poised to accelerate U.S. government adoption of Iron Drone and Optimus. Our production partnership with Detroit Manufacturing Systems strengthens U.S. supply chain resiliency and cost efficiency. We launched our strategic M&A program, and our strategic pipeline is both growing and maturing. In short, we are currently on track to build a scalable, well-capitalized operating platform, converting backlog into revenue and creating visibility for continued growth into 2026.

I want to highlight a powerful moment for Ondas last week. As we shared in some detail at our OAS Investor Day in July, the drone sector is benefiting from significant policy tailwinds. We highlight some of them here on this slide. Ondas was thrilled to see the FAA in response to President Trump's executive order, which is awesomely entitled, Unleashing American Drone Dominance, announced the launch of new FAA rule-making process to enable BB loss drone operations nationwide.

This was a huge moment for the drone sector, and Ondas, along with other industry leaders have been working hard to get to this point. At the FAA's press conference in Washington, where Transportation Secretary, Sean Duffy, announced the rulemaking, 2 of the 3 drone systems on display front and center were ours, the Optimus system on the left-hand side and the Iron Drone Radar in the middle, right under the podium. This visibility at such a pivotal policy announcement underscores our leadership in autonomous aerial systems, the dual-use markets we address and the role we at Ondas are playing in shaping the future of drone operations here in the United States.

Let me be very clear, we do believe our business will be a significant beneficiary of these regulatory advances and the strengthening demand and policy tailwinds outlined here. Let's take a moment now to talk about our big news from Friday, where we announced our partnership and investment with Rift Dynamics. Rift is led by drone and defense industry pioneer, Knut Roar Wiig. Knut is a long-time friend to me and our team at Ondas.

He and his team bring tremendous pedigrees in the defense and aerospace sectors with deep operational experience and trusted relationships across Europe's drone and defense ecosystem. As we discussed at our recent Investor Day, building a successful defense and security technology company will require localization in all major theaters. Together, Ondas and Rift can help with those localization efforts and the formalization of our relationship with Rift is synergistic with the relationships we are building with other defense partners in Europe and our broader on the ground efforts on the continent.

Rift's Wasp platform is a highly capable, low-cost attributable drone designed for scale. It's ideally suited for reconnaissance, strike and other critical missions where affordability, reliability and mass production are paramount. As Rift has outlined, the Wasp is cheap to use and cheap to lose, and this aligns squarely with the U.S. DoD's priorities and Secretary, Pete Hegseth called for mass lethality to equip our war fighters at scale.

Rift is doing the right things out of the gates. They have used a clean sheet in the design of the Wasp. This means they can start with high-quality, NDA-compliant components on day 1, meeting the very specific DoD requirements for a low-cost, mass producible attributable drone platform.

Further, the system has extreme modularity and this flexibility will allow for segmentation based upon DoD requirements today and as they evolve in the future. One of Rift's greatest strengths is the meticulous supply chain preparation they've put in place, positioning them to deliver in volume at a critical go-to-market advantage in this space. That supply chain relies on contract manufacturers, and we, along with Rift, have identified very capable global contract manufacturers with facilities in Europe and the U.S. to produce significant volumes with very reasonable timelines.

Of course, we believe there is a significant revenue opportunity in the United States here. The spending on one-way attributable drones as laid out in the One Big Beautiful Bill was north of $1 billion, and that is in addition to the DoD budgeted spending on ISR-type drones, which is a segment that Wasp addresses as well.

As part of this partnership and our investment, I plan to join Rift's Board to help support their growth, and Ondas will benefit from their success. We intend to strongly support their efforts, and I believe this relationship has some exciting avenues to grow from here.

I will now hand the call to Neil to provide a detailed financial update. Neil?

Thank you, Eric. As I get started, I want to remind our investors that our financial statements reflect the early stage of platform adoption for both Ondas Networks and OAS. We expect to demonstrate significant operating leverage in the next 12 months as revenues grow, though today's revenue levels do not yet cover our operating expenses. For Ondas Networks, revenues will fluctuate from quarter-to-quarter given the uncertainty around the timing of customer activity in front of the targeted commercial rollouts in the 900 megahertz network, the development programs underway with Siemens and MxV Rail, Amtrak and Northeast corridor deliveries, as well as the ongoing work on additional rail networks beyond 900 megahertz and new applications being developed with customers.

Similarly, revenues at OAS are expected to vary from quarter-to-quarter and to normalize into a more predictable pattern as we grow our customer base and more of these customers enter fleet programs and recurring service agreements. Revenues increased over 500% to $6.3 million in the second quarter from $1 million in the second quarter of last year. This increase was driven by OAS revenues, which were $6.1 million compared to $0.3 million a year ago. This reflects the shipment of products and services from the orders received over the past 12 months and specifically to defense and homeland security customers in Israel, United Arab Emirates and Europe.

Gross profit was $3.3 million, representing a 53% gross margin in the second quarter as compared to a gross loss of $0.2 million in Q2 2024. The increase in gross margins year-over-year results from increased higher-margin products revenue at OAS compared to the lower margin service and subscription revenue in the second quarter of 2024.

Our gross margins can be volatile on a quarter-to-quarter basis due to the revenue levels that reflect the early stages of platform adoption, certain fixed service costs reflected in our cost of goods sold and shifts in the revenue mix between product, development and services revenue.

Operating expenses increased to $12.6 million for the second quarter of 2025 as opposed to $8.1 million in Q2 2024, an increase of $4.5 million. Our operating expenses increased primarily due to an increase in human resource costs to support our business growth and strategic initiatives. These operating expenses include noncash items and our noncash items were higher year-over-year.

Cash operating expenses, which exclude noncash items such as stock-based compensation, depreciation and amortization were $9.4 million in Q2 2025 compared to $6.6 million in Q2 2024, an increase of $2.8 million. The increase in cash operating expenses include approximately $1 million in holding company and other strategic costs to implement our M&A program, restructure the balance sheet and establish internal processes to facilitate further growth.

Employee costs were approximately $2 million higher because of salaries and for additional headcount and bonuses at OAS in line with the increased revenue. Additionally, stock-based compensation included in operating expenses increased by $1.6 million because of stock options and RSUs issued to hire and retain employees and advisers.

Adjusted EBITDA improved from $6.7 million loss to a loss of $5.8 million. This reflects the increase in gross margin of $3.5 million, exceeding the increase in cash operating expenses of $2.8 million. The operating loss was $9.2 million in Q2 2025 compared to $8.3 million in Q2 2024. Other expense was $1.5 million higher, primarily because of additional interest expense, which included the faster amortization of debt issuance costs because of the accelerated conversion of debt.

So now let's turn our attention to the cash flow statement. We held cash of $68.6 million as of June 30, 2025, compared to $30 million as of December 31, 2024. Cash used in operations for the first 6 months decreased slightly to $15.1 million, compared to $16.3 million for the first 6 months of 2024, very much in line with the improvement in EBITDA.

We also had cash from financing activities of $53.9 million in the first half of 2025. This includes $42.7 million net of expenses from the equity offering in June and $10 million from the exercise of warrants. We expect cash utilization to continue to improve throughout 2025. Improved efficiency comes from operating expense leverage at our OAS business unit given our expectation of increased revenue and gross profit growth over the course of 2025.

Further, our expanded partnership with KLEAR, which we expanded in July, will support our revenue growth, including for revenue streams we have through our strategic acquisition program. This working capital support is non-dilutive credit facilities to fund certain inventory and accounts receivable balances.

On the balance sheet, again, we held $68.6 million of cash as of June 30, 2025, compared to $30.0 million as of December 31, 2024. Ondas Holdings had $5.2 million in convertible debt outstanding, down from $44.6 million at the end of 2024, reflecting a significant conversion of our outstanding convertible notes into equity. The remaining balance was converted in July, and the holding company's convertible debt is now 0.

We are pleased with the results of our program to improve the structure of the balance sheet by raising cash and converting debt. Shareholders' equity as of June 30, 2025, was $90.8 million compared to $16.6 million as of December 31, 2024. And perhaps now a little bit more on our capitalization.

We have approximately 219.2 million shares outstanding as of today, which is an increase from the 137.4 million shares outstanding on our quarterly first quarter investor call in May. As outlined here, this increase is primarily related to the complete elimination of the convertible debt at Ondas Holdings and the June equity offering, as well as the exercise of warrants by investors with a de minimis amount of employee stock options and RSUs.

Of course, Ondas has benefited from a dramatic improvement in balance sheet health by the elimination of the convertible debt and the more than $54.4 million cash infusion, both of which positions us well to execute our growth plan.

And with that, I will now hand the call back to Eric.

Thank you, Neil. I want to take a moment to emphasize 2 things that Neil has communicated in his financial review. Firstly, we believe our strong balance sheet is a massive competitive advantage for Ondas, as we execute our core and strategic growth plan from a position of strength. Further, we intend to sustain Ondas' strong capitalization profile and use it to the maximum benefit for our investors.

Secondly, our share count has risen through the support of our investors, including new institutional holders who believe in our technology and end markets, but are also backing our vision and support our core+ strategic growth plan. We have a mandate to win in the AI-enabled and autonomy-driven global defense and security markets we are targeting. From here, I believe the combination of the core platform expansion and our M&A program will allow us to reward our investors for the significant contributions they have made to help position -- to help us position the company for the success we see in the coming quarters and years ahead.

Now we will transition to a review of our business units and ask Markus, Oshri and Meir to share updates on the business development activity and operations at Ondas Networks and OAS. Markus will start with Ondas Networks. Markus?

Thank you, Eric. We have been very busy at Ondas Networks, and it's great to be here and update you on our progress. I will start by highlighting that during the second quarter, the IEEE formally ratified the 802.16t wireless standard. As you are well aware, this dot16t standard was pioneered by Ondas and over the last 4 years, we have worked tirelessly with the industry to prepare for formal adoption. Advancements like this are contributing to a broadening acceptance of our dot16 platform across the North American rail industry.

Indeed, the selection of dot16 as the wireless backbone for the 450 megahertz NGHE network by the AAR on April 11 was another important validation of Ondas' technology. This is not only an important milestone in the development of the NGHE 4.0 specification, but also a significant endorsement of 802.16 technology and the railroad operating environment and has helped accelerate discussions across all the rail frequencies.

While we are establishing live networks supporting centralized train control via the ATCS product lines with Siemens, we are also progressing additional 900 megahertz field trials with multiple Class 1s and regional railroads alongside these full-scale deployments. These activities and Class 1 pilots are testing new use cases that showcase the value of dot16 as a true multipurpose network.

Importantly, we are now seeing broadening awareness within the industry on how dot16 can be applied across the critical wireless railroad networks where the massive capacity increases in data capacity and flexibility for the new IP-based use cases are extremely valuable. As we show here, the capacity increases across all railroad private networks are material. For example, in the 220 megahertz spectrum, where the critical positive train control safety application resides, dot16 can increase network capacity by 5x. This would help the railroads avoid costly spectrum purchases.

And the 160 megahertz network, the largest single spectrum block owned by the railroads, represents a significant new opportunity, transforming legacy voice networks into high-capacity VoIP-enabled data systems. I will discuss this in more detail on the next slide and note that the 160 network is the largest rail network as measured by channel capacity and is ubiquitous, covering every mile of track across North America.

Meanwhile, legacy voice or land mobile radio technology is utilizing less than 10% of this capacity. As we will discuss next, the prospect of converting 160 megahertz from a legacy LMR network to a hybrid data and voice over IP network is a significant opportunity for railroad customers and Ondas.

As noted, there is strong interest in deploying dot16 over 160 megahertz networks, and we're demonstrating how this can connect multiple applications, including mission-critical voice over a single IP network. Our field trials are showing wayside systems tied directly into the back office, new operational applications and high-quality voice over IP communications that can meaningfully improve railroad safety and efficiency.

Given the 160 megahertz system-wide coverage and channel capacity, the potential to convert these networks to dot16 is driving the creation of a growing ecosystem of rail applications. We plan to expand these demonstrations to a Class 1 railroad in the first half of next year. Despite the lack of wide-scale commercial network build-outs to date, momentum in rail around Ondas and our dot16 capabilities continue to build. We're supporting ongoing 900 megahertz deployments, progressing A-Block migrations to primary network use and positioning 900 megahertz as an alternative path for certain 220 megahertz applications.

As we have discussed in recent investor calls, the new 900 megahertz A-Block is being positioned as both the primary network for CTC, as well as a secondary network for both CTC and PTC. We are also working on integrating multiple new applications on the new 900 megahertz network. We are demonstrating how the railroads can upgrade from outdated legacy single-purpose networks to modern and secure IP-based systems that enable new data-intensive applications to support efficient train operations and safety tools.

We are field testing the 900 megahertz in dark territory for a Class 1 operator, while our 220 megahertz PTC data radio program with Amtrak remains on track, with deliveries starting this quarter. We're also in discussions with other Northeast corridor operators for additional deployments.

On the NGHE front, MxV Rail is finalizing the 4.0 standard by year-end, and we're engaging with HOT and EOT vendors to commercialize the next generation of products. As data-intensive IoT solutions are becoming more prominent on Class 1 railroads, the need for timely data transmission increases significantly. Ondas Networks is engaging with several Class 1s on solving long-standing data transmission needs. We continue to engage with the railroad community on the significant value of dot16 enabled networks and the many applications they enable. By building out an ecosystem of dot16 applications, we will continue to drive the commercialization of the Ondas technology platform.

I will now hand the call back to Eric.

Thank you, Markus. I will now ask Oshri Lugassy to take the floor and provide a business update for our OAS business unit. Meir Kliner and I will also weigh in on the progress of the OAS business expansion. Oshri, please proceed.

Thank you, Eric. Ondas Autonomous System maintained strong momentum during Q2 2025, particularly in the defense and homeland security sectors, generating approximately $6.1 million in revenue, a more than sixfold increase from the same period in 2024. OAS has captured $23.3 million in orders year-to-date, driving backlog growth, which reflected continued strong global demand for the Optimus and Iron Drone platforms.

At the start of Q2, we announced a $3.2 million follow-on order from a governmental entity in the UAE to extend the Optimus drone network supporting public safety operations. This order expanded by $600,000 to $3.8 million when fleet support services were later added. Later in the quarters, Airobotics secured a $14.3 million order from a major defense customer, primarily for our Optimus drone system, the largest single Optimus covered in the company's history, significantly extending our presence in the global defense sector.

During Q2, we secured and executed strategically important orders for new defense and homeland security customers for Iron Drone. The first was a $3.4 million order from a European governmental defense agency in a NATO member country, successfully executed the system first operational development in Europe. Second was a $1.7 million order from a governmental agency in Asia for homeland security operations with potential for future expansion, the order was delivered, and we look forward to receiving a follow-up order.

In the U.S. market, American Robotics secured a purchase order from a major U.S. human public safety agency for the Casa rail system, an advanced drone detection and counter-UAS platform. Our work through of the Iron drone radar systems continued through Q2, showcasing the radar's unmatched autonomous counter-UAS capabilities and building trust through high-impact demonstrations. During this demo, we engaged directly with top-tier defense and public safety stakeholders. This has already resulted in 2 new Iron drone customers in Europe and Asia in Q2 2025 with additional customers and orders in progress.

More stops are planned in the U.S. and Europe over the coming months. Each event is designed to turn pipeline opportunities into active programs and programs into long-term expansion. Recently and over a period of months, we participated in Project Vanaheim, a joint U.S. and U.K. initiative created to shape the future of counter-UAS capabilities. The Iron Drone's high level of autonomy, collateral design and usability offer a unique value proposition for sustained high-frequency operations in next-generation military and homeland security missions.

We will continue to promote it through participation in upcoming projects. Another key outcomes of our global tour is integration with new local detection system and C2 platforms. In Q2, we successfully completed integrations with multiple third-party detection and C2 systems. Each completed integration proves the robustness of the Iron Drone Radar system and creates more opportunities for expansion as the system becomes a true plug-and-play component for key defense and homeland security contractor and end users. We plan to continue our work to with demo, [indiscernible] and pilot programs in Europe and Asia to accelerate expansion.

Recall, our strategy is to engage with larger customers for initial pilot programs, which we then work to transition to multiyear infrastructure program buildouts. In the UAS, we plan to demonstrate our Counter-UAS capabilities through the NYPD and with distribution and partners to multiple U.S. DoD services branches during Q3. The New York Post highlighted that NYPD was seeking expanded authority to utilize Counter-UAS tools and specifically highlighted their interest in deploying American Robotics Iron Drone platform.

We have other demonstrations with important partners and customers in the United States, which includes our participation in the Interpol San Diego Border Counter-UAS Expo in September. I will hand the call now to Meir, where we will discuss our operating platform expansion. Meir?

Thank you, Oshri. As part of our rapid expansion plan, we are building OAS as a full operating platform, not just great products, but the service delivery infrastructure to deploy them at scale. This includes sales and marketing, supply chain and production, field services and sustainment, finance and administration, legal, regulatory and government affairs.

Our customers, ranging from defense ministries to online security and first responders need more than innovation. They need trusted, responsive partners who can deliver consistent results. During Q2, we established a new advisory board for OAS to support our global expansion and leadership focusing on autonomous drone and AI-powered intelligence, surveillance and reconnaissance or ISR platforms for the defense and homeland security markets.

We also announced that Brigadier General, Yaniv Rotem was our first appointee to a newly formed advisory Board. Mr. Rotem brings decades of leadership experience in Israel defense R&D, weapon system innovation and business development, leveraging his deep leadership experience as formal Head of R&D at the Israeli Ministry of Defense. His guidelines will help shape OAS' strategies direction in emerging technology and global defense partnerships. We will announce new high-impact advisory Board members in coming weeks.

We are investing in our internal leadership, while simultaneously expanding through partnerships, especially for integration, distribution and field services, and you will learn more about the talent we are adding in the coming months. Of course, this activity is also supporting the M&A program we laid out at the OAS Investor Day in July. Our M&A program is progressing nicely.

Recently, we acquired Zickel Engineering, an Israeli firm specializing in defense industry engineering projects. This small multi-disciplinary team delivers rapid high-quality solutions, enhancing our capabilities in advanced run and defense system development and strengthening our strategic relationships with military customers and vendors. We closed on this strategic acquisition in July and believe Zickel's business can grow significantly under Ondas umbrella.

We are building our platform, and we are confident our transition to scaled operating company will create lasting strategic advantages. During Q2 and into 2025, we are expanding our technical and field operation infrastructure to support higher production capacity, more field deployments and long-term scaling of programs for defense and homeland security markets. We continue developing and integrating advanced physical AI features for mission autonomy, including AI-driven mission planning, target detection and identification and other real-time engagement capabilities across both the Optimus and Iron Drone platforms.

In the first half of the year, our R&D and integration teams successfully integrated the Iron Drone with leading cutting-edge drone detection systems and widely deployed C2 systems used by NATO allied end users. We see our integration capabilities as a key driver of our product distribution strategy and go-to-market plans. We expect to announce more partnerships and integrations during the second half of the year.

I will now hand the call to Eric to discuss U.S. activity at OAS. Eric?

Thank you, Meir, and also to you, Oshri and Markus. Let's turn our focus to American Robotics in the U.S. markets. On the regulatory front, Optimus is making substantial progress towards inclusion on the Green UAS list, and Iron Drone is slated for submission in Q3. Effective July 2025, I want to note, all Green UAS platforms are automatically added to the Blue UAS cleared list. Of course, Blue UAS certifications are critical for DoD adoption at scale for systems such as Optimus and Iron Drone. I believe we can and will share more details on this progress soon.

Operationally, we're accelerating our U.S. expansion and announced key partnerships with immediate engagement during Q2, supporting a much larger go-to-market strategy with America Robotics in the United States. Our partnership with Mistral gives us strategic access to federal procurement channel backed by over 30 years of DoD and DHS contact tracking experience. Mistral is actively driving business development for both Optimus and Iron Drone Radar with a goal of securing at least one DoD order by year-end.

We believe this is a modest goal based on the demand environment, our platform maturity and our customer pipeline development activity. On the production side, Detroit Manufacturing System will support NDA-compliant Made in USA manufacturing at its Kinetyc facility in Michigan. This partnership strengthens our supply chain resilience, reduces costs, shortens delivery time lines and improves gross margin profile through design for manufacture at scale. This work was started immediately when we announced the partnership.

Lastly, I want to highlight that we are actively pursuing opportunities under the Replicator-2 DoD initiatives while building a U.S. pipeline that includes major urban critical infrastructure programs, fleet expansions with existing utility customers, initial Optimus deployments at a U.S. military base in the second half of 2025 and campus security programs with a Fortune 100 customer. Of course, our partnership with Rift is going to be part of the American Robotics story in the coming quarters as well.

Let's now transition to our outlook for the second half of 2025, starting with a status update on our strategic growth program. At our OAS Investor Day earlier this year, we laid out a clear opportunity to build a scaled AI-enabled and autonomous systems defense and security platform that can deliver advanced technology, integrated solutions and high-value services to customers globally. We've been methodical in advancing that plan. Our strategy is to layer in and finance the advancement of mature field-proven technology platforms, while making targeted investments in talent and ecosystem partnerships to strengthen both our global and localized go-to-market capabilities.

This approach allows us to address an increasingly broad technology, solutions and services offering to the emerging AI-enabled and autonomous systems markets and build our capabilities in defense, security and critical infrastructure markets, which are poised for strong growth in the years ahead. We are deliberately building an operating platform that goes beyond individual products, integrating capabilities across autonomous ISR, counter-UAS, mission planning and real-time engagement to deliver comprehensive solutions aligned with the operational priorities of defense, home and security and critical infrastructure customers worldwide.

Our M&A pipeline is robust, diverse and maturing. We've identified multiple targets that can accelerate our road map for mature, mission-ready technology platforms that expand our solutions offering to service and integration partners that strengthen customer adoption. We have highlighted today the Rift transaction and Zickel Engineering, which are both highly strategic. While most strategic investments will be for control positions, Rift is a situation where we are cementing the partnership with a small investment.

Rift's business is capital-light, a necessity for developing low-cost attributable drones, and the company, frankly, didn't need our capital. Rather, Rift was attracted to Ondas for the global operating platform we are scaling. We will provide more detail on the revenue potential at Rift as our marketing efforts mature in the coming months. Meir also discussed the Zickel Engineering acquisition. This was an opportunity for us to bring an elite engineering team into our OAS business. Zickel expands our capabilities and helps support an even deeper relationship with defense customers and partners in Israel. We expect Zickel to generate revenue and positively contribute to cash flow at OAS and help Ondas to generate new program and partnering opportunities in Israel. We are actively pursuing new contracts with the Zickel team.

We are on track to execute a number of what we believe will be strategically important and financially valuable strategic acquisitions in the second half of 2025. These acquisitions will not only expand our capabilities and market reach, but also enhance our revenue mix, margin profile and recurring revenue streams, creating durable shareholder value as we scale into 2026 and beyond.

Let's now turn to our outlook. As we said at the outset, this is an exciting and pivotal time for Ondas. We are executing against a clearly defined multiyear growth plan, and our record first half confirms that the foundational work we've done across OAS and Ondas Networks is converting into measurable and accelerating business momentum. We continue to believe 2025 will deliver accelerated growth, leveraging the order activity, operational readiness and market traction we've created over the last several quarters.

At OAS, our key objectives remain driving growth through the expansion of our ongoing Optimus and Iron Drone programs with current military and public safety customers, ensuring successful deployments, operational impact and further adoption. We are also focused on adding new customer programs, particularly in the defense and homeland security sectors, targeting wins through both government and government channels and direct engagements.

On our last call, we increased our goal to capture at to at least 4 new defense or homeland security customers this year, and we believe that remains very achievable. Growing our partner ecosystem remains a critical enabler, not only for global sales and marketing, but also for field support, sustainment, supply chain and production. Localizing our business with the right partners is integral to scaling globally. We are seeing growing engagement from major defense and homeland security vendors that want to work collaboratively with Ondas and OAS to help support customers with integrated solutions and field support.

We are meeting our goal of establishing new impactful industry partnerships to complement those already announced and look forward to sharing more details over the course of the second half of 2025.

Financially, the maturing of our platforms and operational plans is producing results. The growth we're sharing here reflects both business units with the bulk of the near-term acceleration coming from OAS. We are reaffirming our revenue target again of at least -- excuse me, at least $25 million with OAS expected to contribute more than $20 million this year. This visibility is supported by a backlog that now stands at $22 million in a robust maturing pipeline across both units. We expect backlog to grow further in the second half alongside strong revenue conversion. We believe our bookings in the second half of 2025 should exceed the $23 million we achieved in the first half, again, setting us up for a strong start to 2026.

Lastly, we believe we can execute at least 2 strategic acquisitions in the second half of 2025, and our visibility on the strategic pipeline is very strong. To sum it up, we are delivering on our vision to scale Ondas. We have the leadership team, the platforms and the strategy in place, and I continue to believe 2025 is being defined as a breakout year for our company.

Operator, we will now move to take investor questions.

The first question comes from Mike Latimore with Northland Capital Markets.

Great results and the list of accomplishments is impressive here this year.

Thank you, Mike.

Eric, just on that last slide, I guess, you talked about $23 million plus of bookings. It seems like demand is very diverse, and you could kind of hit that or exceed that in several ways. But are there 1 to 2 big deals that you're expecting here? Or maybe just clarify kind of the source of those bookings confidence and a little bit more international versus U.S., Optimus versus Iron Drone. A little clarity on that because that's a strong number.

Yes, sure. So I'll refer back to our OAS Investor Day when I outlined our marketing program and how we're generating programs with customers. And typically, you'll see us capture a new customer with a POC type of small order. And of course, we deliver on that, and then we aim to expand those to infrastructure buildouts, and that's when the orders get larger. We have a few of these programs now in motion, and we do believe that the -- we will continue to capture new pilots, but also convert the pilots.

So, what you'll see is just increasingly large orders as we're moving through the next 6, 12, 18 months. And at that point, there's clearly things in our pipeline where we can be capturing orders in the tens of millions of dollars. But of course, we want to put them into the outlook here in a formal way when they're more visible. But I can tell you that's the sort of scale that we do see in front of us. So, I think the guidance could be quite conservative, and I think that's a good place to be for the moment.

Yes, for sure. Sounds good. And then you mentioned 2 control acquisitions. Is that in addition to the small one you just referenced today? And then I assume would that be upside to revenue?

Absolutely. Yes. So, it is -- that's in addition to the transaction with Zickel and Rift. And yes, absolutely, these will be revenue-generating companies that we're acquiring. And the pipeline is quite robust.

Excellent. And just last one for me. The gross margin was really good in the quarter. Is that a good sort of reflection of what your OAS business looks like kind of at scale?

Yes, for sure. And I do think that over time, we can do better, right? So -- and that comes from both volume, right, and design for manufacturing that we're going to do on both platforms. So, I think we have opportunities to do better. At the same time, I will caution, we're still not at scale. So it will likely be volatile from quarter-to-quarter. But the 50% target, I think, is a good one for now.

The next question comes from Maxwell Michaelis with Lake Street Capital Markets.

Just kind of want to go back to the 2 acquisitions and maybe how that ties in with 2026. So, if I look back at the Investor Day, I think you guys talked of $40 million for 2026 of OAS revenue. I mean, was that always thought to be organic? Or did this $40 million target always kind of include these 2 potential acquisitions in the second half of 2025?

Right. So that outlook for 2026 is entirely organic. So, these acquisitions will be accretive to the 2026 outlook, as well as well as the second half of 2025.

Okay. And then maybe if we go kind of say state side here, and we look at the Kestrel win with the -- I believe it was the Urban Public Safety Agency. Maybe can you offer up a little bit more detail around that win and maybe what you're doing, the use case around that?

Yes, sure. So that was the first order we've captured for the Kestrel system, which is a airspace awareness tool. The bulk of our activity with Kestrel is really to bundle that at a system level with the Optimus as we deploy the Optimus infrastructure. But at the same time, we're seeing quite a bit of demand for all things counter-UAS. And when we think about that layered security, the Kestrel is part of that initial layer of detection. So, we'll see. I think with this customer, we have delivered the system, the Kestrel. And I think that's an area that we could see engagement on Optimus, for example. So that's some context around the Kestrel order.

All right. And then just last one for me. I know you guys highlighted the New York Post and how they -- the NYPD had mentioned you guys. I mean is there any other police departments around the United States? You can't obviously probably say their name, but are you guys working with additional police departments around the U.S.?

So, I'll say, firstly, the interest globally and in the United States in counter drone technologies is just up and to the right, and it's really, really intense. At the same time, there's a lot of activity where the ministries of defense, homeland security officials, major urban public safety groups are doing the work to explore capabilities, how these layers are integrated and et cetera. In parallel, where there's activities on the regulatory side to allow more permissions for folks like NYPD to deploy these technologies. So, I don't want to talk about any other public safety organizations. There's just a very significant amount of customers who are interested and they're big. But at the same time, I want to point to those regulations that are evolving and will be allowing more permissions for deploying our drone across, say, DoD, homeland security and major public safety organizations like NYPD.

The next question comes from Timothy Horan with Oppenheimer.

Eric, on Ondas Networks, I mean, qualitatively, it seems like we've broken the ice here, and it feels like we're seeing more momentum, I think, than we've seen in a few years. But what are your thoughts on what's going on there?

So, firstly, I agree with you. The engagement with the railroads is both broadening and deepening. And as you know, Tim, you've been following us for a long time, a lot of the early work with the railroads was really centered on validating the technology, and that was principally led by the Wireless Comms Committee, the Wireless Communications Committee, which is a centralized group that AR oversees, right? So all the railroads participate in that.

At the same time, that WCC is really kind of focused on the network experts. And what we've seen over the last, I'd say, 12 months, and that's particularly accelerating with Markus Nottelmann joining as the CEO, we're getting deeper and deeper into each of the rail organizations and really in the field, validating capabilities, validating performance and also working on new applications. As you know, we're moving from the siloed networks, the legacy networks that are built for a single purpose to a general IP network where we can do multiple applications. And as we prove that, the conversations are getting more and more productive.

So, at this point, where we started with the railroads is 900 megahertz, and that's still in play. We have seen the AAR announce that the 450 megahertz network, which is a Head-of-Train/End-of-Train network has been -- the dot16t technology has been selected there. And as Markus outlined, we're seeing interest in 160. So, Markus, I don't know if you can add a bit more context to this, but I think it's clear that we are in the road map. And we're trying to get -- I'll just say this, we're still trying to get that inflection to when the first network gets built. But as I'm looking into 2026, I feel very strongly that both 900 megahertz and 400 megahertz -- or 450 megahertz with that End-of-Train application will be revenue generating.

But Markus, would you add anything?

Yes. So, it's quite similar to what you described with OAS. You start with a proof of concept, you build confidence and then you build out from there, right? So that's really what we've been focusing on in the first half of 2025. We continue that -- continue with those efforts. We start with small-scale efforts that ultimately lead to bigger deployments. So, building momentum there with all the Class 1s, that's right on track.

And then switching over to OAS. I guess it's only been 2 months or a little bit more since Ukraine attacked the planes on Russian soil. And it seems like that was the catalyst to wake up the world that you need some defense measures here. And I know your Analyst Day was only a month ago, but can you give us maybe just a sense of what's going on with the pipeline at this point? Yes.

Yes, sure. So, the pipeline is growing, and it's also advancing. We've been doing a lot of work and started in Europe back in February. And we -- so you've seen that we did secure the customer firstly at the airport. We think that program will expand. And we've been doing other work on the ground with various, I'll say, homeland security organizations and militaries in Europe.

I'll also highlight, Tim, that there was a high-profile event connected to Project Vanaheim. This was actually sponsored by the U.S. Army -- the U.S. Army called it Project Fly Trap, and there were some demonstrations in Poland just a couple of weeks ago, and we participated in that. And as Oshri said in his earlier remarks, that was that Vanaheim and which is a joint project with U.K. and the U.S. DoDs, that's been a multi-month project. So, the customers and the industry, the partners are learning a lot, and I think that is going to be transitioning towards infrastructure deployments, and it will be multilayered. We've had the great benefit as we're doing that work to integrate the Iron Drone platform with various detection technologies, principally radar and C2 capabilities. And those are generally going to be capabilities that are brought by major defense vendors.

And of course, those are our partners. So, I think collectively, when you look at the customer activity, the partner activity, I think we set up a really robust pipeline, and we're going to look to convert that over the next 3, 6, 12 months. Specifically on the U.S., a lot of engagement, as I just described in Europe actually coming from the U.S. And we did engage in Mistral back in May to start to jump start our penetration here, and we're very happy with the traction we're getting. So, it's a big focus.

If you look inside the One Big Beautiful Bill and the DoD budgets and the programs, you know that there is a big focus on spending on counter drone technologies, and we do believe we're going to be part of that.

And lastly, do you know of anyone else that's trying to pursue a platform strategy for OAS like you are? And maybe you can elaborate a little bit more on what the strategy is for that platform. I know you just talked about integrating drone with radar. That would seem to be you need kind of a neutral platform that multiple sales channels, multiple manufacturers, multiple technologies. And I guess, for example, can Rift tie into that type of platform and can others also?

It does. Yes, absolutely. So, if I think of it in 2 levels, Tim, there's technology platforms, which Iron Drone or Optimus are. So, and we're integrating the autonomous systems and the capabilities that enable that. And very often, we're going to engage partners, as I've described. The systems are modular, right? And that enables us to work in all sorts of environments. So when you come to the United States, there's going to be preferred radar vendors, for example, for detection. And there's multiple. And we know a bunch of them. And if we don't know all of them yet, we will, but I'm really happy with the traction we're getting. So that's an example of technology platforms.

At the same time, what we're really transitioning and focusing our business model and strategy is on becoming an operating platform, right? And that's a much different. That lends itself to the second half of your observation where you have to address customers, right, you need that whole suite of scaled operations. And if you have a single platform, it's very difficult to do that, single revenue stream. It's very difficult to build that sophisticated sales and marketing capability to field support and sustainment really, really hard and costly on a single revenue stream. And it's also hard to do it globally. And if you're making these investments, you have leading technology, you want to be able to deploy these defense and security platforms across all allied nations. And the way you do that is localization.

So, if I think of Rift, it does add our capability, right? So, we're getting more scale from our sales and marketing if we can add that third, that fourth, that fifth platform to market. It also gives us more scale on supply chain, right, because we're more relevant to the folks like Detroit manufacturing systems and the component providers thereof. And then if I also go say, you think about Rift and it's a partnership, it's not just about the distribution here, which I do believe is going to be a major contributor. But it's also giving us relationships, strengthening relationships that we can build around in Europe because they've done that heavy work.

So, I really think of us as we're delivering technology platforms that is required for success. If you don't have that, you have nothing. But to be able to deliver those at scale, that's where it gets really interesting for investors where you can do that using your operating capital and your financial capital really, really efficiently.

The next question comes from Glenn Mattson with Ladenburg.

Congrats on the results. Curious, the -- obviously, it's quite clear from everything you laid out today that the company is set to ramp significantly in terms of the scale in OAS. Curious about the operational infrastructure that's in place, either capacity-wise. I don't know -- I know you've got this relationship now with Detroit Manufacturing Systems and other things in place. But can you maybe just broadly give us a sense of if you need to make any more big investments or new partnerships to meet -- to have the kind of capacity you need to deliver these systems. But then secondly, operationally, just do you have the infrastructure within the OpEx. Obviously, OpEx is going to grow with revenues. But is there anything you need to put in place like systems or that kind of thing to really to support this ramp?

Yes. Terrific question. It's really important, Glenn. So Oshri joined us formally in March as the Co-CEO of OAS. And that -- this has been a major focus of his to be able to build the leadership team and the partnerships and the ecosystem to help support the scaling that we're talking about here today, and we have been and what we've been demonstrating. So, what we've done is, we are layering in a leadership team at OAS who is -- it's just another layer that's going to help us scale in all these important -- the aspects of the business, again, sales and marketing, the field support, supply chain and really critical things like that.

We're also going to continue to build our advisory board, and that's going to be very impactful. We're not just putting people that look good in the deck, these are folks who are going to make a real impact on the business and be very accretive. And then I also point to leveraging the partnerships in the ecosystem. So, we're going to build our internal capabilities and our OpEx spend, and we're going to try to do that with our revenue growth in a way that we get positive operating leverage and get that path to profitability. So, one of the ways that we do that is by engaging these vendors around -- when we're integrating with them, for example, on the C2 or radar, that's also an opportunity for us to jointly market the systems to their customers.

So that's the context around how I'm looking at that. So we're going to be building this company for many years. I'll also add this, Glenn, is when we see -- when you look at our pipeline and the folks that we strategically aligning with in and around acquisitions and partnerships, we're not just acquiring technologies. We're acquiring people and experts. And we need that expertise. We need that scale. So that's part of the transaction, and we provide for that in our financial analysis, valuation work, et cetera.

Very helpful and I was late in the call, but one more quick one. You mentioned winning the DoD contract before the end of the year. You seem to have high confidence in that. You may have said you could win multiple. I'm not sure, but do you have multiple DoD potential large contracts in the pipeline? Could you win more than one? Is it the programs of record? Just a little bit more flesh that out a little bit, if you could, would be great.

Yes. So, I just kind of want to leave at that. I think we're very happy with how the pipeline is developing and advancing. We are in a strong demand environment. Our partners at Mistral are very experienced. And I think I'm optimistic, I'll say that. And then, of course, a lot of these things get the timing. So if we do 1 or 2 or 3, do we do it by year-end? I'm not sure. So, what I would just like to do is set that expectation for at least 1, and then we'll try to beat it.

This concludes our question-and-answer session. I would like to turn the conference back over to Eric Brock for any closing remarks.

Okay. Thank you, operator. So, as we wrap the call, I want to thank you again for spending time with us today. As we outlined, 2025 is off to a great start. We're going to be focused on sustaining the momentum through the end of 2025 and into 2026. And of course, we look forward to providing you more updates along the way. So, the team will go back to the important work of building the company, and we hope you have a great day. So, thanks again.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Good day. Welcome to the OAS Virtual Investor Day. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Eric Brock, Chairman and CEO of Ondas Holdings. Please go ahead, sir.

Well, thank you, operator. I want to start by welcoming everyone to the Ondas Autonomous Systems or OAS Investor Day. This presentation will be a deep dive into our OAS business, and we will get right to it. We start, like always, by highlighting our standard legal disclaimer. We will be making forward-looking statements during the course of our presentation today. Of course, those forward-looking statements are based upon our assumptions about the future, and there can be no assurances that those assumptions or financial results will not differ materially from these expectations.

We will also share non-GAAP financial metrics such as EBITDA. Ondas uses non-GAAP financial metrics to highlight operational performance and believes that this financial data is helpful for our investors. Of course, additional details are available in our SEC filings.

Let's now turn to the agenda. I will once again thank you for attending our Investor Day today. This presentation, again, will be a deep dive into our business. We'll be sharing a comprehensive business and financial plan that reflects both the opportunities ahead and the strong conviction we have in Ondas' leadership position in the markets we target. We will start this afternoon with an introduction and corporate overview to set the context. From there, we're going to cover our core technologies and solutions platforms, followed by an in-depth review of our go-to-market strategy and execution framework. We'll then review our financial strategy and model and provide insight into our financial targets for both the near and long term.

Throughout the presentation today, we will be emphasizing how we're deploying growth capital with a disciplined and scalable operating and financial model. At the end, we'll close with a strategic road map for value creation and leave time for Q&A, so we can hear directly from you, our shareholders. We appreciate your time and interest and are excited to share what we believe is a compelling story with significant upside potential for our investors.

Before we dive in, I'd like to briefly introduce the leadership team that's with me here today. Many of you are already familiar with this group, so I'll be brief. Before I do, I want to emphasize that we are extremely busy at Ondas, which, of course, is a good thing. Our team is spread in different locations for the call. So we decided to deliver this presentation via the audio-only format. With that said, I'm joined by Neil Laird, the CFO of Ondas Holdings as well as Oshri Lugassy, the Co-CEO of Ondas Autonomous Systems. From Airobotics, we have Meir Kliner, the Founder and CEO of Airobotics; and Eitan Rotberg, our Senior Vice President of Product and Marketing; as well as Tim Tenne, the CEO of American Robotics, who's here to update us on the activity with AR and our expansion plans in the United States.

Lastly, I want to introduce Roni Kanelbaum, our Vice President of Corporate Development at OAS. Roni joined us earlier in the year, and you will hear from her towards the end of the call, where she will provide details on our strategic growth initiatives. This team brings decades of proven execution and expertise across defense, security and aerospace sectors as well as with commercial and financial operations. We have organized the company and our leadership team to execute a high-growth plan across geographies and market verticals. And of course, you're going to hear from each of us throughout the presentation today.

Let's begin with a snapshot of OAS and how we're positioned in the market. We operate with headquarters in Baltimore, Maryland; and Petah Tikva, Israel to support global sales and customer engagement. We also have commercial locations in Dubai and Singapore to support localized customer engagements in those markets. Across the company, we have 117 employees and have invested over $165 million to build what we believe are amongst the most advanced autonomous drone platforms in the market, serving military, homeland security, public safety and critical infrastructure customers. Our flagship platforms include the Iron Drone Raider, a counter-UAS system designed to secure critical locations and population centers from the growing threat of intruder drones and the Optimus system, which delivers autonomous aerial security, inspection and emergency response.

These are proven scalable platforms with active deployments. Our growing operational footprint includes deployments for military and homeland security forces, true Drone as First Responder or DFR use cases in urban environments and Data-as-a-Service infrastructure protection as we show here. We have a growing list of global reference customers and operational momentum. And as you are learning, we are positioned to lead what we believe will be a decade-long investment cycle in delivering new AI-enabled defense and security technologies to extremely large and critical end markets. At the core of everything we do at Ondas Autonomous Systems is a simple but powerful mission to protect and secure critical assets, infrastructure and most importantly, people.

Our platforms are designed to deliver aerial intelligence, security and data on demand at scale and with military-grade reliability. This is about more than just impressive technology. It's about enabling safe operations in some of the world's most complex and high-risk environments. Our customers include defense ministries, public safety agencies, critical infrastructure operators and industrial enterprises, all of whom require real-time intelligence and protection capabilities that are autonomous, precise and persistent. With our dual-use platforms, we're not only supporting military operations, we're also enabling a safer, more secure future for civilian populations, governments and private industry across the globe. And as you'll see throughout this presentation, the mission is now being realized in the field every single day.

The last 12 months have been truly transformational for Ondas, driven by success at OAS. We are successfully making the shift from a technology development company to a growth stage operator, and our systems have been validated in real-world deployments, delivered results and proven value for customers. Our technology platforms, Iron Drone and Optimus, are no longer development systems. They are combat-ready, field tested and operational today. And just as importantly, the market is ready. Procurement cycles are accelerating, budgets are expanding and the demand for scalable autonomous systems has never been higher. From a financial perspective, we strengthened the balance sheet significantly. We derisked the balance sheet, reduced debt and built a strong cash runway. This sets us up to deploy growth capital with confidence.

Our financial model now supports scalability, and that allows us to build an institutional investor base to support what we believe will be a leading and extremely valuable defense and security company. Let's take a look at our current financial position, which I believe is one of the strongest indicators of our transformation into a high-growth operator. Here, we are presenting consolidated financial -- both OAS and Ondas Networks as we expect to report $6 million in revenue for Q2 2025 when we report earnings in August. This represents a more than sixfold increase from last year's second quarter and was driven primarily by expanding customer adoption and order fulfillment at OAS.

Our backlog has grown significantly from approximately $10 million at the end of 2024 to an estimated $22.8 million today after removing the expected revenue to be recognized in Q2. For the full year, we are maintaining our guidance of $25 million in total revenue with at least $20 million coming from the OAS business. We believe this guidance remains conservative given the strength of our backlog, pipeline visibility and recent momentum. On the balance sheet, we've also made tremendous progress. We've reduced our outstanding convertible notes at the holding company from over $46 million at the end of 2024 to just $5.4 million as of June 30. Most importantly, we now have a strong liquidity position with over $67 million in cash as of the end of Q2.

In short, we are now well capitalized with the resources and flexibility to execute our growth plan in the second half of 2025 and beyond. At the heart of Ondas Autonomous Systems is a multi-platform portfolio built for autonomy, mission readiness and reliability. Our 2 core systems, the Iron Drone Raider and the Optimus system are both fully autonomous, military-grade aerial platforms designed to support 24/7 deployment in complex and high-risk environments. This is drone infrastructure. You are well familiar with these systems, and we will do a proper technology review and update a bit later, here, I will simply emphasize that these are not just drones. They are full stack end-to-end autonomous systems that include embedded AI, integrated software, command and control infrastructure and seamless operational workflows.

And again, both platforms are field tested, scalable and operational today and backed by reference customers in some of the world's most demanding environments. Now I want to zoom out and look at the key investment highlights that define our opportunity at OAS. First, we have a portfolio of dual-use mission-critical platforms that are already deployed with military and public safety customers worldwide. Second, we've demonstrated clear commercial traction through multiple programs with prominent customers. Those programs are expanding and new programs are being captured in the United States, Europe, the Middle East and now Asia. Thirdly, Iron Drone Raider is emerging as a potential category-defining solution in the counter drone space. We see surging demand for effective counter drone tools that are both nonlethal with low collateral effect and reusable, which serves to lower costs.

Clearly, Iron Drone stands out in addressing these requirements. Fourth, we are building scalable go-to-market infrastructure in the United States and Europe, both internally and through key partnerships that enhance our reach and operating leverage.

In addition, we have launched a strategic M&A program to accelerate growth. We're targeting high-quality and synergistic businesses that will deepen our technology portfolio and expand our market presence, and you're going to learn a lot more about our M&A program today. Lastly, we feel we are doing this from a position of strength with solid financial foundation, an experienced team and a vision that is aligned with massive macro and policy tailwinds supporting a strong demand environment for OAS.

We are moving forward at OAS with a clear focus on scalability. Everything we've built from our technology to our go-to-market strategy to our financial model is being designed to support high-growth operations at global scale. The schematic you see here represents our framework. You'll see this several times throughout this presentation because we're executing across 4 integrated layers. It starts with markets and customers. We're focused on high-value sectors like defense, home and security, public safety and critical infrastructure. These are large and growing markets with urgent needs. Technology capabilities. Our Optimus and Iron Drone platforms are modular, upgradable and built with embedded AI to meet mission-specific requirements. We will expand on this.

Our success at Ondas will boil down to our operating platform and execution across critical operating functions, including sales, marketing, supply chain, field services, regulatory and compliance and more. We're building this platform in region, and we'll have localized efforts in major markets, including the United States, Europe and the Middle East to deliver at the speed and reliability our customers expect. Our financial platform. We have a strong balance sheet, and we'll deploy a disciplined investment plan to accelerate growth, drive operating leverage for profitability with a focus on building long-term value. Ultimately, success in our sector will be determined not by technology alone, but by who can deploy and support these systems at scale. And that capability around scale is exactly what we're building at Ondas.

Now let's talk about the macro environment and highlight why this investment climate is one of the most supportive we've seen in decades for a company like Ondas. Around the world, governments are facing new security threats and making major strategic shifts in how they allocate defense budgets across allied nations. In short, NATO is lined up to massively grow its defense and security posture. Just recently, non-U.S. NATO members have committed to increasing defense and related infrastructure spending to 5% of GDP by 2035. To put that in perspective, that means over the next 10 years, annual defense spending across ex-U.S. NATO countries will grow by our estimates from about $440 billion today to over $1.2 trillion.

That's more than $700 billion in new annual defense outlays and more than 2.5x current levels of spend. This is a seismic shift and a huge tailwind for Ondas and our industry. These dollars are not just going to traditional weapon systems. Nations are fast-tracking investment in AI-enabled autonomy, airspace security and counter drone protections. Our platforms, Optimus and Iron Drone are aligned precisely for these requirements. We believe this trend will drive significant growth for Ondas, not just over the next year or 2, but likely for the decade ahead. On the domestic front, the White House and DoD are taking bold action to ensure that the United States drone sector can retain global leadership in drone and autonomy technologies. In June, the Trump administration issued 2 executive orders that mark a step change in federal drone policy.

These EOs provide critical regulatory clarity and will enable scaled drone adoption in both military and civilian sectors. We emphasize some key highlights here. FAA BVLOS rulemaking Part 108 regulations, for example, are finally moving forward. We believe this is critically important to reducing hurdles for nationwide autonomous drone operations. Section 2209 will give critical infrastructure operators virtually exclusive airspace over critical infrastructure, allowing commercial DSPs like American Robotics to fly where others cannot. And of course, federal investment in counter drone infrastructure is surging, and Iron Drone Raider is directly aligned with these priorities.

And then there's The Big, Beautiful Bill, which was signed into law just last week and is allocating over $21 billion across programs that directly support Ondas' business. That includes over $4.2 billion for drones and counter drone capabilities, nearly $1.7 billion for autonomy and ISR and $2.9 billion for border security. This is the strongest policy tailwind we've ever had and is sure to accelerate demand for secure American-made NDA compliant platforms like ours. In short, the skies are opening, and we are ready to capitalize on these tailwinds.

Let's now dive into the technology, and we'll go back one more, just as an intro. Starting with what we call the Full-Stack Physical AI, which enables the intelligence, autonomy and reliability of our platforms. In a moment, I'm going to ask Eitan Rotberg, our Head of Product Management and Marketing, to help cover these important topics. But first, a few things. We are not simply building drones. We are engineering and deploying vertically integrated mission-ready systems. Our Physical AI Full Stack spans every layer, edge devices and onboard compute for real-time mission execution. Multi-sensor fusion, whereby EO/IR, RF and micro radar sensors are integrated with embedded AI models at the edge, all supporting autonomous decision-making. There's Insightful, our analytics portal, which turns raw data collected with payload sensors into actionable intelligence.

So what does a Full-Stack Physical AI look like in practice? We'll turn the slide. First, it starts with a world-class engineering team. We have experts across robotics, aerospace, AI, autonomy and systems integration. Then we combine that talent with differentiated core capabilities. Of course, we are talking about full autonomy at scale. Our platforms don't require human pilots for navigation. Edge AI, real-time decision-making. Our systems can classify threats, make navigation decisions and adapt in real time and often under high pressure at high speeds.

Autonomous infrastructure, we have docking stations and command and control or C2 software, which allow for consistent always-on operations, whether we're securing an oil refinery, protecting a military base or border or responding to a drone incursion in a dense urban zone, our systems are built for mission-critical performance and rapid deployment. That's what physical AI enables, and it's at the heart of everything we're doing at OAS. I'm going to hand the call to Eitan, who will dig a bit more deeply into our technology and capabilities. You're also going to hear from Tim Tenne and Meir Kliner before coming back to me. Eitan, the floor is yours.

Thank you, Eric. What I would like to do now is to show how all of this come together in the real world, what we call physical AI deployed. These are not only theoretical systems. Iron Drone and Optimus are in the field today executing real missions under real operational demands. Iron Drone Raider is deployed for 24/7 counter drone protection, tracking and intercepting hostile drone autonomously with minimal collateral risk. While Optimus is delivering on-demand ISR in both civilian and defense environments with field-proven reliability and full mission automation.

Together, these platforms provide persistence, airspace awareness, rapid incident response and seamless data delivery, exactly what modern security and defense operators need. We take intelligence and precision of AI and embed it with physical systems that protect people, infrastructure and national interests. That is what physical AI deployed look like, and that's what Ondas is delivering. On this slide, we have visualized the architecture of full stack physical AI, which is the embodiment of deep technology powering both Optimus and Iron Drone Raider at the edge.

Physical AI is the complex integration and commercialization of high integrated software and hardware into intelligent systems that can navigate autonomously, collect and provide mission-critical intelligence. The hardware and the software stacks spans from edge devices to onboard computers to decision intelligence and mission execution. This includes the sensors, EO and IR cameras, micro radars and communications models that feeds data into our onboard AI processors, enabling real-time multi-sensor fusion. The data is then processed through our decision intelligence layer, this is where machine learning models classify threats, analyze mission data and generate autonomous flight decisions in real time.

The system includes mission execution layer, which includes autonomous flight control, ISR collection, interception protocols and flight path optimization. The entire system is connected to our cloud-enabled local insightful intelligence portal, where data is aggregated, visualized and turned into operational intelligence for the end users. This architecture is not just powerful. It's modular, secure, scalable. It allows us to rapidly deploy into new use case, upgrade platforms in the field and deliver seamless experience from edge to command centers.

Now let's look at how the stack is deployed in our field-proven drone systems. Physical AI stack is reflected in end-to-end platforms, and we have designed both Optimus and Iron Drone as modular rock and mission-ready platforms. These are not drones that just fly once a day or require operators to be on standby. These are autonomous infrastructure assets built for 24/7 ISR and counter drone operations. Of course, both platforms are built to meet the most demanding operational requirements of military, homeland security and public safety customers and are fully NDA compliant, which is increasingly important in government procurement.

Further, these platforms are intelligent, adaptable and fully autonomous. And because we have expertise across the stack, we can scale and iterate faster and deliver more value to customers over time. This slide shows what the performance of our systems looks like in the real world deployed in mission-critical environments. On the left, you can see the Iron Drone Raider performing a live interception, autonomously identifying and neutralizing the hostile drone with 0 human piloting. On the right, we share the Optimus DFR network, whereby drone infrastructure deployed through major urban cities for public safety missions. The KPIs show the value and performance of this critical use case.

As we show on the bottom right, we have now logged over 8 years of autonomous flight operations across a range of environments, including dense urban zones, sensitive infrastructure sites and desert installations. These deployments are not trials. They are not POCs. They are active real-world security and intelligence operations, and they are driving recurring business for -- from our customers. The result is clear. Autonomy isn't coming, it's here, and Ondas is leading the way by delivering operational performance, reliability and scale that in today's defense and public safety missions demand.

Let's now take a closer look at the software stack that powers our autonomous platforms. Our systems build on a tightly integrated suite of applications that manage the entire mission life cycle from autonomous flight to data processing and insight delivery. First, we have Insightful, our secure cloud and on-prem data portal. This is where drone sensor data is ingested, organized, visualized and shared. This includes Orthophotos, 3D models, Point Clouds and real-time video, all processed automatically. Then there is the Primus, our command and control software. The software manages autonomous flight operations, docking, payload handling, scheduling and remote intervention when needed.

Powering our autonomy layer is the Iron Drone DeepStream, our proprietary AI engine that enables object detection, classification and PASS planning even in GPS denied or RF limited environments. We will highlight DeepStream in more detail in a moment. Together, these systems make our drone infrastructure intelligent, mission adaptive and highly scalable. Whether you are securing a base, inspecting a power plant or intercepting an intruder drone, the entire workflow is automated, secure and built for compliance in high-security environments. This is the insightful platform, our central hub for drone collected data. It's more than just a repository. Insightful is a fully featured geospatial intelligence platform that enables users to make sense of complex drone data in real time. Operators can view live video feeds from the UAV camera or explore historical missions from secured video archive.

The system supports 3D modeling, orthophotos, point clouds and annotations with ability to extract detailed measurements directly from the interface. Built-in tools allow teams to collaborate, tag, comment and export insights to our systems. For enterprise and government customers, this portal become a mission command interface, allowing multiple users to view assets and act on the drone intelligence from any location. Insightful is fully secure, scalable and ready to support recurring SaaS revenue as we grow our installed base of Optimus and Iron Drone Raider systems. As we continue discussing our software architecture, let's take a closer look at the Primus, the core command and control interface that powers autonomous operations across the Optimus drone fleet.

Primus is engineered as a C4ISR, enabling platform, providing users the tools of command and control, communicate and coordinate autonomous aerial missions in real time. With integrated video feeds, mission planning, camera control and fleet oversight, operators can manage multiple assets seamlessly through a single pane of glass. Accessible on both desktop and mobile tablets, Primus supports flexible operations across centralized command centers and forward deployed on field teams. Built with security at its core, Primus is a VPN-enabled and deployable on private air gap networks, ensuring operational resilience in limited or classified environments. Behind mission execution, Primus supports advanced video management, incident response, coordination and situational awareness overlays, making it a true tactical interface for multi-mission environments.

In short, Primus is more than an autonomy-enabled drone controller. It's a modular, scalable C4ISR interface designed to evolve alongside to our platforms and meet the complex need of defense, home security and critical infrastructure operators. Now let's come back to the AI engine that gives Iron Drone Raider its edge, the Iron Drone DeepStream. This is our proprietary computer vision-based flight control and threat classification engine, which enables the Iron Drone to detect, identify, track and engage with hostile drones in real time and everything is fully autonomous. The system includes high-frequency flight control algorithms for ultra-responsive maneuvering, AI object detection and tracking trained on large data sets of aerial threats, multimodal sensor fusion, including EO and IR cameras and micro radar, embedded capabilities to operate in GPS-denied and hygienic environments where traditional systems usually fail.

What makes Iron Drone DeepStream special is that it's not just guiding the drone, it's making tactical decision in real time under limited aerospace conditions. This is a core differentiator that positions Iron Drone Raider as a leading counter drone platform capable of defending high-value targets with unmatched reliability and low collateral risk. Sticking with the Iron Drone, we will take a closer look at the system and its capabilities. Iron Drone is purpose-built to intercept and neutralize hostile drones in real time, autonomously, safely and persistently. Unlike traditional C-UAS system, they rely on jamming or kinetic destruction, Iron Drone uses low collateral net capture, which can be supported by parachute. This is especially important in dense and sensitive environment like military bases, airports and other urban centers.

It's also modular and upgradable, enabling configuration of alternative mission types, including kinetic payloads, loitering munitions and extended range interceptions. Simply, this is not just a drone. It's an integrated aerial defense system, and it's being adopted by leading defense and homeland security organizations globally these days. The system is designed for 24/7 deployment with 0 human piloting. It detects, tracks and locks onto intruding drones, launches autonomously, intercepts the target and then capture it mid-air.

Now let's take a look at the full radar architecture. The system starts with a fully automated drone pad, a docking station designed to house and recharge up to 3 interceptor drones in a ready-to-launch configuration. The docking system is built for speed and scale. Once a threat is detected, Iron Drone will autonomously launch, track and engage with no manual intervention. Each interceptor is equipped with an AI-powered onboard computer for autonomous flight, a high-speed camera and sensor suite, a net launcher for safe interception and parachute recovery system. That can be added and returned and intercept the drone to the ground, further minimizing the collateral damage.

What makes this system so powerful is that when the drone is chasing one threat, it's multilayered persistent aerial security system. It reduces cost per interception through drone reusability, speeds up threat response and provides a round-the-clock protection with 0 human piloting. We will now show a brief video of the Iron Drone in action for the benefit of those who maybe didn't see this thing in the past.

[Presentation]

This slide illustrates the full mission flow of the Iron Drone Raider system from detection through capture and recovery just as you just saw in this video. The sequence begins when hostile drone is detected by integrated external sensor, this could be an RF detection radar or vision-based systems. Once a threat is identified, the command and control system activates autonomously. The Iron Drone interceptor is launched with predefined flight path and engages the target with no human piloting required. The onboard AI continually adjust the drone trajectory in real time using its visual radar sensors even when there is no GPS available.

Upon closing in, the drone deploys a capture net, capturing the intruder. A parachute system is automatically deployed to bring the capture drone saver to the ground while the interceptor drone is landing nearby. This approach allows for nondestructive interception, which is crucial in civil and sensitive military zones. The entire process from detection to recovery is completed in 3 minutes or less, offering a fully autonomous C-UAS capability that's scalable, safe and operationally proven. Now let's shift gears to the Optimus system, our fully autonomous drone-in-the-box system designed for persistent AISR and data delivery missions. Optimus is rugged and modular built for Tier 1 enterprise and government customers, designed to operate 24/7 in complex environments.

The system includes fully automated base station with integrated battery and payload swapping, climate control, backup system and high-bandwidth communications. Each drone flight is autonomous from launch to landing, Optimus can be deployed for security patrols, threat detection, infrastructure inspection and emergency response. With dual EO and IR sensors, LiDAR and mapping payloads, the Optimus platform deliver reach actionable data faster and safer than many alternatives. It's also NDA compliant, which is critical for U.S. government and defense customers. Again, Optimus is more than a drone. It's autonomous infrastructure solution for high-stack operational environments.

On this slide, we feature a video that brings the Optimus system to life. You will see complete mission cycle in action from autonomous launch, real-time surveillance and flight routing to landing battery and payload swapping and data delivery. This is a demonstration of what's possible in the future. This is what Optimus is doing today, every day in the field. It is enabling critical infrastructure operators to monitor facilities remotely, giving public safety agencies new response capability to helping defense and homeland security customers scale ISR without needing additional personnel. As you watch, keep in mind that every part of this workflow is automated, secure and compliant. This is what drone infrastructure looks like when it's mature, ready to deploy, scale, deliver value every day. Let's play the video.

[Presentation]

Let's dive into the versatility of the Optimus platform and the wide range of mission use cases it supports. At its core, Optimus is a modular payload agnostic system designed for nonstop operations across multiple sectors. The platform supports dual EO IR video for perimeter security, threat detection and DFR, Drone as First Responder, missions. 2D, 3D modeling using a full frame sensor for risk assessment, construction monitoring and planning, LiDAR for volumetric measurements and environmental modeling, offering sub-centimeter accuracy, aerial delivery, capabilities for logistics, maintenance tools or emergency supplies. The mission flow is fully autonomous.

The user requests a mission and selects the payload, the drone autonomously launches and flies on a preplanned route. It transmits live data and captures the necessary intelligence. Upon return, automatically lands, swaps battery and payload and offloads the data. The proceed outputs are delivered via the insightful portal. This end-to-end capability enables true unattended operation with swappable payloads designed to support diverse high-value use cases in both governmental and commercial markets. One of the most powerful advantages of the Optimus is how it scales. Each Optimus base station can autonomously cover an area of up to 30 square miles, providing persistent ISR security and emergency response capabilities. But it doesn't stop there.

These stations can be networked together, enabling regional, national or even international grids of autonomous drone infrastructure. This creates a [ match ] of airspace awareness and intelligence, ideal for border monitoring, utility inspection, smart city applications and disaster response. For example, in a major metropolitan area, you could position several Optimus stations as a key infrastructure nodes, power stations, transit hubs, ports and have a real-time autonomous surveillance feeding into the central operational center. This is how we think about drone as a sensor infrastructure, fully automated, real-time, multisite coverage that delivers continuous operational value. And as you will see later in this presentation, this model positions Optimus for scalable revenue growth as customers build out their own autonomous drone networks.

I will hand the call now to Tim Tenne, American Robotics CEO, who will discuss Kestrel, an important new platform in our portfolio. Tim?

Thank you, Eitan. Let's turn to airspace security and traffic management and our Kestrel system, which is critical to enabling scalable beyond visual line of sight drone operations. Kestrel is Ondas' integrated detect and avoid and airspace awareness platform. Kestrel provides the foundational layer for true autonomy. It enables drones like Optimus and Iron Drone to operate safely, persistently and without visual observers in full compliance with evolving Federal Aviation Administration and NATO airspace regulations.

The system leverages active radar and passive sensors to detect, track and assess all cooperative and noncooperative aerial traffic in the area. At its core, Kestrel is a full spectrum universal traffic management solution that delivers real-time airspace deconfliction, collision avoidance and air risk mitigation. And note that we also offer Kestrel as a stand-alone system where we see demand for counter-UAS airspace awareness from many customers. And I highlight a few weeks back, we announced that a major police department in Florida has purchased a system for that very purpose.

Let me walk you through what makes Kestrel so powerful. It supports autonomous airspace mitigation, when fully integrated can deconflict drones and manned aircraft in accordance with regulatory requirements without human intervention. It interfaces, fuses multisource real-time data to calculate both air and ground risks, which unlocks autonomous missions at scale. This system simultaneously tracks a multitude of air and ground targets up to 15 kilometers in range using passive, cooperative and noncooperative sensors. It includes perimeter and ground surveillance capabilities tracking vehicles and people over 5 to 6 miles. As mentioned earlier, Kestrel also supports a counter-UAS function, adding another layer to our Iron Drone deployments.

All of this makes Kestrel a next-generation air traffic management solution built for the autonomy era. It is a critical component of our broader drone infrastructure strategy and is already being deployed alongside Optimus to enable BVLOS flight in complex high-risk environments. This slide brings it all together, the complete OAS autonomous ecosystem. At the center is the Optimus system, providing 24/7 aerial intelligence and security. Supporting Optimus is Kestrel, delivering the airspace management and DAA infrastructure needed to operate safety under regulatory frameworks like pending FAA Part 108. And overseeing it all is the Operational Control Center, a remote real-time control room that allows a single operator to manage multiple Optimus systems across regions and missions from anywhere in the world.

This is what true autonomy looks like, one remote pilot in the loop managing multiple drones, no visual observers or on-site personnel necessary, flight over nonparticipating people in moving vehicles anywhere, anytime, a professional aviation center that is secure, compliant and intelligent aerial infrastructure, delivering mission-critical data and protection around the clock. We have also reprioritized the process of Green UAS certification, which will further position Optimus for adoption across defense and public safety use cases in the United States. We do expect to complete this within 2025. This architecture, fully integrated, modular and compliant is a key driver of our competitive advantage and growth trajectory in 2025 and beyond.

I will now hand the call to Meir Kliner, Airobotics' Chief Executive Officer. Off to you, Meir.

Thank you, Tim, and nice to be with all of you today. Let's shift focus on our product development road map and what is next on our platforms. The headline is simple. We are not starting from scratch. We are not investing in speculative new platforms. Instead, we are laser focused on scaling existing systems. We are extending their capabilities and responding directly to customer requirements. We can't share everything for competitive reasons, but we want you to see the progress we are making and the growth behind our platform expansion.

Two key initiatives we would like to highlight. Firstly, Project X, which is focused on expanding Iron Drone capabilities to include new mission types, especially in loitering munition, defense and high mobility ground deployments. This will increase relevant in fast evolving battlefield environments. Project Z is tailoring the Optimus platform for extend network deployments that introduces lower-cost and lower-power variant for broader rollout in urban and remote geographies. Both initiative leverage our modular platform design and field-proven architecture, allowing for faster time to field and limited development risk.

Our goal is to expand TAM and depend customer stickiness without taking on greenfield platform technology development risk. We are investing where customer demand is clear, urgent and profitable. I will have more share with you later regarding our customer and marketing activities, but we'll now hand it back to Eric to introduce our go-to-market and operating plans. Eric?

Well, thank you, Meir. Now let's talk about our go-to-market strategy and how we're bringing these platforms to market and executing at scale. As you're hearing today, the technology is real, the markets are ready and the regulatory tailwinds are strong. But none of that matters unless we can reach customers, capture programs and deliver operational results. Our go-to-market strategy is designed to do just that. It's focused, layered and built for capital efficiency.

Over the next few slides, we'll walk through how we are prioritizing the right markets at the right time, sequencing product adoption in line with customer and regulatory readiness, leveraging partnerships to accelerate reach and reduce overhead and building a scalable operating platform that supports repeatable growth. This is not just a sales plan. It's a full-funnel, end-to-end approach to capturing and expanding long-term programs and driving sustained value across global defense, security and infrastructure markets.

Everything we do at Ondas will be anchored in our commitment to scalable growth. This slide reflects the operating foundation we've been building to support that growth efficiently, strategically and with global reach. Our model is built around several key elements. First, we're targeting multiyear customer programs in defense, homeland security and infrastructure, programs that offer recurring revenue and expansion opportunity. Second, we're deploying dual-use platforms that can serve both military and commercial markets, allowing for efficient resource utilization across a larger opportunity set.

Thirdly, we're investing in our internal leadership while simultaneously expanding through partnerships, especially for integration, distribution and field services. Finally, we are localizing execution in major theaters, the United States, Europe and the Middle East with physical presence, regulatory alignment and customer support.

This platform allows us to scale faster, serve customers better and maximize return on deployed operating capital. The long-term winners in this market will not be just those with the best products. They will be the ones who can execute at scale. That's the platform we're building, and we're confident it gives us a lasting strategic advantage.

I'm going to now turn the call back to Eitan, who will outline the markets we are addressing in our marketing strategies. Eitan?

Thank you, Eric. Let's now map our 2 core platforms, Optimus and Iron Drone Raider, against these market phases. In Phase 1, both platforms are already active. Iron Drone is deployed for military base protection, border defense and critical government site security. Optimus is being used in drone as first responder programs and public safety ISR missions. In Phase 2, both platforms will expand into infrastructure protection, airports, ports, utilities, oil and gas facilities and semiconductor fabs. These customers need persistent aerial surveillance and CUAS protection, which both platform provide.

Phase 3 unlocks broader adoption. Optimus will deploy for construction, insurance and industrial inspections. Iron Drone will begin enter large event security, stadiums and smart city public safety environments. Our GTM metrics ensures cross-platform value and opens the door for customers to expand with us, whether they start with Iron Drone, Optimus or both.

The total addressable market for both Optimus and Iron Drone Raider are massive and accelerating. Let's start with the Optimus. The drone-in-a-box market is projected to grow from $1.5 billion in 2025 to more than $3.5 billion by 2030 according to Fortune Business Insights. This growth is fueled by increased demand for remote perimeter security, first responders as well as industrial inspection and smart infrastructure. These are not speculative markets. They are validated by urgent need, policy tailwinds and growing customer budgets.

Meanwhile, the TAM of Iron Drone Raider is also large and now growing very rapidly. The counter-UAS market is already valued at approximately $3 billion today and expected to reach over $10 billion by 2030 according to Grand View Research. This market is being driven by rising global drone threats, regulatory support for counter-drone adoption and defense of public safety investment worldwide. And we believe Ondas is positioned to capture early leadership in both drone-in-a-box and counter-drone markets.

Let's drill down into specific addressable markets and relevant use cases for Iron Drone Raider. But first, the counter-UAS value chain is multilayered and includes detection systems like radar, RF sensors and cameras in addition to interception systems, which can range from jamming and spoofing to physical engagement. Iron Drone sits in that interceptor layer, but what makes it special is that it offers low collateral and it's reusable autonomous alternative to traditional kinetic or electronic warfare system. In this way, it's built for purpose for populated areas as well as bases in borders.

Our immediate focus with Iron Drone is on military and homeland security missions, protecting bases, borders and national assets. These customers are actively buying and deploying solutions, and our pipeline is very large, and customer and partner engagement is growing rapidly. With that said, we believe that nonmilitary market, like public safety, critical infrastructure, event security is likely even larger and currently unserved. Today, deployment outside of military use cases is limited by regulatory constraints, but that is changing quickly.

With the Trump executive orders and rising interest from public safety agencies like NYPD and others, we expect commercial CUAS adoption to accelerate much faster than previously modeled. This presents a unique opportunity for Iron Drone Raider to become the category-defining CUAS platform across both defense and civilian markets.

Here, we present our bottom up to market sizing for Iron Drone Raider in defense and homeland security applications. Based on internal estimations, we see an immediate serviceable and available market, what we call SAM, for overall $2.1 billion across 4 core military and security use cases.

Military bases. We estimate deployment of potential across the [ list ] 20% of 491 relevant bases globally with 2.5 systems per base. Combat vehicles. Protection for more mobile asset using 1:20 system-to-vehicle ratio across 118,000 vehicles. Naval vessels. 1 system per ship on approximately 30% of 22,800 vessels. National border, counter-UAS system deployed every 5 kilometer along critical segments, representing 5% of 22,000 kilometers of borderlines.

Importantly, this pie chart on the left does not include nonmilitary markets, which are significant and expanding quickly as we just mentioned. Places like airports, stadiums, data centers, refineries and large government facilities all face the same threat landscape, and Iron Drone Raider provides a safe, autonomous and NDAA-compliant defense solution. And as we said earlier, recent executive orders and agency activity point to accelerated adoption in public safety and critical infrastructure. We look forward to updating you on these markets later this year.

Now turning to Optimus, which we show SAM here for military and HLS next to the Iron Drone calculation. For those military and HLS use cases, our estimations show $3.2 billion serviceable available market, what we call SAM, for Optimus. These numbers reflect global demand, scalable ISR and aerial security solutions across multiple segments, border protection, military bases and critical HLS facility.

These deployments represent both initial entry points and long-term expansion opportunities. Importantly, these SAM numbers are only for defense and homeland security. The commercial opportunity includes oil and gas, power, airports and smart cities is even larger, will be addressed through a phased go-to-market model. Together, Iron Drone and Optimus represent $5.3 billion combined SAM with both platform positioned for early, sustained leadership.

Let's now combine the 2 platforms and map out the market penetration we are targeting. The table at the top shows across allied nations, including U.S., NATO members and regional security partners. We estimate that the combination of SAM of $5.3 billion will access this market via G2G opportunity as well as with partners like Mistral and other indirect marketing.

From that, we have defined near-term serviceable obtainable market or SOM of $1.4 billion, $600 million for Iron Drone Raider, $800 million for Optimus. Again, this is across allied nations only. And to drill down actively with our major military customer in the Middle East, we continue to target $120 million in SOM in short term with what we believe is a very significant long-term upside behind that.

These are not theoretical opportunities. This SOM is built from active customer engagement, including opportunities that exist via programs of record with military and homeland security agencies, government-to-government sales pipeline, partnership with major defense integrators. We have already booked $30 million in orders since the second half of 2024, including major $14.3 million expansion order in June 2025.

The foundation is laid. Now it's about executing, expanding and replicating these programs across geographies and sectors. Remember, the drone as an infrastructure build-out cycle is really just the beginning across these major markets and across the world.

Our marketing strategy is multipronged, operationally aligned and built for scale. We focus on 3 core channels to capture the growth in high-value programs. First is the government to government, G2G, leveraging existing customer networks and bilateral relationships to drive defense and homeland security sales. Channel-led partnerships, utilizing agents, defense [indiscernible] and integration partners to expand reach in new geographies and verticals.

Direct engagement, participating in strategic expos, live demonstrations and digital campaigns to attract inbound interest and build brand authority. Our marketing engine is tightly in line with the sales, product and regulatory teams, ensuring that each customer iteration translates into long-term opportunity. Importantly, we prioritize program capture over single unit sales. Once we win a program, we expand it across sites, mission sets and use repeatable business and revenue streams.

I will hand the call now to Meir Kliner, who will share some of the details of the Iron Drone marketing and the expanding partnership strategy we are pursuing.

Thank you, Eitan. Iron Drone Raider World Tour, this is a global demo campaign designed to showcase Raider's unmatched autonomous counter-UAS capabilities, build trust through live, high-impact demonstrations, engage directly with top-tier defense and public safety stakeholders. These events are accelerators. They have already led 2 new Iron Drone customers in Q2 2025 with additional customers and orders in motion.

Iron Drone low collateral, reusable design give it a unique value proposition for sustained high-frequency operations. And with the counter-UAS market projected to reach over $10 billion by 2030, this too position us as a first mover and category leader in autonomous drone interception. Most are planned in the U.S. and Europe over the coming months. Each one is designed to convert pipeline into programs and programs into expansion.

As we have highlighted, partnership are key to helping us grow. We are building a localized global ecosystem that accelerates our ability to sell, deploy and support our platform across key regions. This includes sales and marketing partners who help us across difficult-to-reach customer segments, field service and sustainment providers who ensure long-term operational readiness and service delivery, integration partners who align our system with existing command and control infrastructure.

Our goal is to be globally present and locally enabled with the speed, flexibility and trust that customers require. And we are just getting started. We have established new strategic relationship in the U.S., Europe and the Middle East. Some of the names and logos you see here haven't been officially announced yet. We will share more details about them soon as we can. These partners will help us scale faster while preventing capital efficiency, which is critical element in our growth model.

I will now hand the floor to Tim to highlight recent developments at American Robotics as we prepare for strong growth in the U.S. market. Tim?

Thank you, Meir. We are making rapid progress in building out our operating footprint in the United States. One of the most important pieces of that footprint is domestic manufacturing, and that's where our partnership with Detroit Manufacturing Systems and their state-of-the-art subsidiary, Kinetyc, comes in. Through this relationship, we've established an NDAA-compliant, Michigan-based manufacturing platform to support Optimus, Iron Drone Raider and future products.

This partnership gives us U.S.-based, NDAA-compliant production critical for defense and public sector customers, opportunity for reduced unit costs through scale and design for manufacturing, shorter delivery time lines and improved supply chain resilience. This is a strategic differentiator for Ondas. It ensures we can meet the needs of customers who prioritize made-in-America solutions, and it positions us to move rapidly when large federal programs come online. DMS is more than a vendor. They're a strategic enabler of our scale-up plan in the United States.

Next slide. There we go. Thank you, Meir. There's a lot of activity at American Robotics, and a bit later, we'll discuss the customer pipeline. Another key partner we've mentioned earlier we're excited to highlight is Mistral, a proven leader in U.S. government sales and contracting. Mistral has over 30 years of experience supporting defense, homeland security and public safety agencies. They bring the relationships, contracting know-how and credibility that can accelerate Ondas' penetration of federal markets.

We are working closely with Mistral to identify near-term opportunities within DoD, DHS and public safety customers with a goal to capture our first major federal U.S. order in 2025. Combined with our internal resources at American Robotics, this partnership gives us a scalable, high-credibility presence in the largest defense and security market in the world.

I will now hand the call back to Eric, where he will discuss our financial outlook. Eric?

Thank you, Tim. And I want to also say thank you to Meir and Eitan, and I actually want to especially highlight Eitan, who's carried a significant part of the day so far. But of course, we do have more to share. Now we've covered the platforms, the markets and the go-to-market strategy. Let's talk about what all that means from a financial perspective.

At Ondas, we believe the companies that win in this market will do so not just because they have great products, because they build and execute upon a disciplined, scalable financial model. That financial model must prioritize capital efficiency, deliver strong gross margins and operating leverage through scaled service delivery, support repeatable growth through expansion of programs and ultimately lead to sustainable profitability and free cash flow generation.

Over the next several slides, we'll talk through how we're building that model from unit economics and production scalability to revenue forecast and capital planning. Our goal is to show you how Ondas, and Ondas Autonomous Systems more specifically, is not just a defense and security technology company, but a high-growth operating company with the financial discipline to create long-term value for our shareholders.

The foundation of our financial model is our multiyear customer program strategy. This is a strategy built around capturing, expanding and sustaining drone infrastructure build-out. This gives us high revenue visibility with repeatable ARR-type revenue and allows for the ability to reinvest in growth with discipline. We are focused on maintaining strong unit economics supported by pricing power for differentiated capabilities, economies of scale through production and supply chain optimization and capital-light partnerships for go-to-market support.

Our operating platform is built to drive leverage over time, meaning that as revenue grows, we believe operating margins will expand and capital efficiency will improve. The winning defense and security tech companies will be those that can combine deep technology with an efficient operating model, which we are building.

Our investors have seen our go-to-market and investment plan evolve over 3 distinct phases. Through 2024, that focus was on building the platforms, developing our technology, validating product market fit, improving our capabilities in the field. Over the last couple of years, we have advanced our service delivery capabilities, focused on scaling operations, activating partnerships and executing programs across our target markets. We are focused on vertical-specific solutions and on building the scalable infrastructure that supports repeatable growth.

As we scale our operating platform, we envision an expansion flywheel by 2027, which can sustain, support -- and support high growth with internally generated funding. Again, this is a long-term, capital-efficient growth strategy. And I am happy to say that we're already seeing early stages of Phase 3 begin to take shape today.

With that said, I'm going to hand the call to Oshri Lugassy to share details on our customer and program capture pipeline and also ask Tim Tenne to weigh in on the progress AR is making in the United States. And then Neil Laird will -- our CFO, is going to share some specifics on our financial model. Oshri, let me hand the floor to you.

Thank you, Eric. Let's look at our customer pipeline, but before we do that, I want to highlight Ondas' marketing strategies. We are focused on capturing and expanding programs. In other words, we are not necessarily optimizing for the size of the customers' pipeline. That means we are targeting customers who can move the fastest towards multiyear infrastructure deployments, [indiscernible] that these customers take decided resources for closing deals and delivering the systems. A focus on capturing and delivering these programs locks in long-term revenue visibility. We need to scale our service delivery capabilities in concert with pipeline growth, and we are doing that.

With that said, we are tracking a quite large global customers pipeline. This pipeline is at least $430 million across our Optimus and Iron Drone Raider platforms. The majority of this opportunity currently sits outside the U.S., reflecting strong traction in the Middle East, Europe and Asia. The U.S. pipeline is growing rapidly, and I expect that continue, especially with the support of Mistral and our expanding domestic partnerships. Tim will share more on this activity with Mistral. He will also share the traction we see with Optimus with public safety agencies, utilities and infrastructure operators.

Of course, Iron Drone is being activity evaluated by the DoD, DHS and NATO-allied militaries. Several customers are already in the buying phase. And as we close more programs, we expect this pipeline to both mature and expand over the next 12 months.

Program expansions opportunities. Since Q3 2024, we have received over $39 million in total purchase order, including 2 new Iron Drone customers secured in Q2 2025 alone. One of these was a NATO-member military customers we deployed the Iron Drone Raider and at a major international airport in Europe. This order had an urgent deployment requirement. That system is already operational as of June and is now securing the critical airspace today.

The other customers announced in Q2 is a major governmental homeland security agency. They are running a pilot project expected to be completed in Q3. These new HLS customers were secured through government-to-government channels. This will bring additional similar opportunities. These new Iron Drone customers are not one-off sale. We believe they will both convert into multiyear infrastructure programs. The expansions budgets are already being discussed.

And the activity doesn't stop. We are advancing multiple new military and public safety engagement across the U.S., Europe, Middle East and Asia. The takeaway here is clear: our installed base in growing our execution, in accelerating and our customers' relationships are deepening.

Tim, I will now hand the floor to you. Tim?

Thank you, Oshri. As previewed, American Robotics is gaining traction in the large U.S. markets with pipeline momentum accelerating across public safety, infrastructure and industrial sectors where we are seeing strong demand for the Optimus drone-in-a-box capabilities. Selected key developments include a new order in Q2 from a major mid-Atlantic water utility, validating our partnership with E2E, Ceragon, where we see much more potential. We also see a significant pipeline opportunity with a major U.S. city in the Northeast focused on DFR and critical infrastructure security.

As an aside, I would like to highlight the picture to the right is our Optimus UAV flying high above Central Park, where we spent the month of February in a successful pilot project. I also highlight interest from a Fortune 100 customer for Optimus deployment to secure large campus-like facilities. Lastly, we also anticipate an initial deployment of Optimus at a major U.S. military base as soon as this quarter, which is an important strategic win we hope to share more details on later this year.

In parallel, we're focused on securing Green UAS certification, which will position us for broader public safety and defense adoption in the United States. Of course, I believe the Mistral partnership will be highly impactful. And again, our goal is to secure our first U.S. federal order by the end of this year. With Detroit Manufacturing Kinetyc now producing systems, we have the supply chain in place to support a growing order book through 2026 and beyond.

I will hand the call to our CFO, Neil Laird. Neil?

Thank you, Tim. Let's turn to some details about our financial model. The graphic you see here illustrates how our revenue scales as we capture and expand programs, what we call the infrastructure program flywheel. We begin by capturing a program with up to a handful of systems or locations. Once deployed and operational, our customers generally intend to expand the infrastructure build-out, adding more systems, more sites and deeper integration. That expansion leads to system placements as well as additional services, including training, field support and mission-specific upgrades.

The flywheel effect takes over. What starts as a small order of up to a few million dollars grows into a multiyear high-margin engagement with growing and repeatable revenue and long-term visibility. Importantly, our operating platform has been built to support this growth. The more we scale, the more efficient we become on both revenue and the cost side. And while this model is powerful on its own, it's further amplified when we layer in strategic M&A and broader platform integration, which we'll get to shortly. This is the blueprint for building a high-growth, high-margin and highly valuable defense and security company.

So now let's talk about the unit economics and financial profile that support this growth trajectory. At scale, we're targeting gross margins of around 50% for Optimus and 70% for Iron Drone Raider. Why the difference? Iron Drone has a simpler architecture, fewer payload variations and strong pricing power as a low-collateral CUAS solution. Optimus has a higher price point, reflecting both the ruggedness, complexity of the system, its persistent availability in the vast number of use cases and environments it has relevance. We believe both systems will benefit from improving unit production scale economies and planned design for manufacturing programs.

On the operating expense side, we're maintaining discipline and leveraging strategic partnerships to capture and deliver for customers. We're also leveraging partners like Klear to support working capital and accelerate our cash conversion cycle, helping us to scale faster without excessive equity dilution. Reiterate our goal -- reiterating our goal for positive EBITDA in the second half of 2026 with scalable growth thereafter. The bottom line is this is a disciplined, margin-focused operating model designed to deliver profitability by late 2026 and generate meaningful cash flow beyond that.

I will now hand the call back to Eric to discuss our financial outlook. Eric?

Thank you, Neil. Now turning to our revenue outlook. Here's how we're thinking about the next 18 months. For 2025, we continue to guide to $25 million in consolidated revenue with at least $20 million coming from OAS. Looking ahead to 2026, we expect to double revenue to at least $40 million supported by program expansion from existing customers, new wins in U.S. federal markets and continued momentum in Europe and the Middle East.

We believe these forecasts, including 2025, remain conservative. They are based only on known opportunities in active engagements and supported by a growing backlog, which we expect to sustain through the end of 2025. Importantly, we are not yet modeling in these near-term revenue outlooks upside from major DoD wins, full-scale NATO deployments or additional G2G programs still in development. This gives us multiple layers of upside optionality while maintaining near-term visibility and execution confidence.

Let's look at our capital requirements and how we're funding growth. For the second half of 2025, we expect to deploy $7 million to $8 million in growth capital to support order fulfillment, field services, manufacturing scale-up. For 2026, we expect capital needs of $14 million to $15 million, primarily tied to working capital and supporting our path to profitability. We will look to leverage our partnership with Klear for nondilutive working capital financing to further improve capital efficiency.

In short, we have a clear path to profitability and self-funding. We believe our current resources, including the $67 million of cash at Ondas Holdings held at the end of June, is more than sufficient to fund our growth plan. We are well capitalized with minimal debt overhang and are positioned to fund both organic growth and early-stage M&A without overreliance on the capital markets. This is a healthy, scalable and investor-friendly capital plan.

Let's zoom out and look at where all this leads to. By the second half of '26, we expect to reach EBITDA positive with revenue of at least $40 million. From there, we see a flywheel effect taking hold driven by platform expansion, repeatable customer growth and operating leverage. By 2030, we believe OAS can generate $140 million to $150 million in revenue with $40 million to $45 million in EBITDA. These numbers reflect the core business alone without factoring in strategic M&A. That's a 3 to 4x growth in revenue and significant margin expansion, which is highly achievable based on current customer demand, platform readiness and is also supported by strong end-market growth.

We view these numbers as conservative and believe the actual opportunity is larger, especially as policy tailwinds, regulatory progress and capital investment accelerate adoption globally. This is our base case, and it represents a compelling financial outcome in what we believe is a generational market opportunity.

Now let's turn to the strategic growth opportunity we see through our programmatic M&A efforts. Everything we've discussed so far, our technology platforms, go-to-market strategy and financial model, is designed to scale organically, but we also see a unique opportunity to accelerate that growth through strategic acquisitions, which can leverage the same operating infrastructure we are building.

Our approach to M&A is programmatic, not opportunistic. We're building a pipeline of high-quality targets that we will describe in a moment. In short, the purpose of our M&A program is simple. We want to fuel our operational flywheel, accelerate the availability of critical defense and security capabilities for our customers and most importantly, deliver enhanced returns for investors above and beyond our core growth plan.

Here's how we are executing on that strategy. We're targeting companies that have mature, customer-validated technology that has been commercially derisked. These are not early-stage technology plays. They are proven systems and capabilities with existing backlog and revenue streams. Our M&A strategy will accelerate our time to market, deepen our capabilities, expand global operations and improve capital efficiency, which we will do through shared infrastructure and supply chain leverage.

With each acquisition, we will ask, does this make our core platform stronger for customers? Does it improve customer experience and expand our TAMs and obtainable markets? And does it create meaningful shareholder value in both the short and long term? If the answer is yes, we move forward with discipline, structure and the support of a robust internal corporate development process.

So why do we do this? It's simple. We believe the potential rewards are substantial. This slide captures the core philosophy behind everything we're building. The market opportunity is massive with TAMs in the tens of billions of dollars across defense, public safety and infrastructure. The growth cycle is just beginning. The S-curve of adoption is launching now, and customers are looking for trusted, scaled providers. Meanwhile, most competitors are small, undercapitalized, and with single platform capabilities, they have narrow revenue streams.

Ondas is positioned differently. We have defense and security platforms that are scalable today. We have the partnerships and ecosystem in motion, and we have the strategy to lead, and we also have the financial model. We are designing Ondas to be the operating company that investors, partners and most importantly, customers can rely on. Our opportunity is to build the platform of record to deliver solutions at scale across global markets with high returns on capital. This is a moment to lead, and we believe we are ready.

One of the core insights driving our strategy is this. The defense and security sectors are fragmented, undercapitalized and characterized by subscale companies. There are hundreds, thousands of firms with strong technology but no path to scale. They can't build global distribution or field services, and they struggle with supply chain and manufacturing capacity, and they often have significant financial pressures. This poses a real challenge for customers who are tasked with securing nations, borders, cities and critical infrastructure. What they need is a scaled provider of autonomous systems, a company that can deliver repeatable, compliant solutions across geographies, and that's what we're building.

The valley of death is the gap between technology development and commercial scale. In our space, with most autonomy companies, they're engineering-led, single platform ventures with limited revenue streams. They're stuck in R&D and endless pilot cycles. They're reliant on venture capital to survive.

Many of them, after substantial efforts, have built valuable technology platforms but have no scalable path to market and no operating model to support growth. Ondas is crossing that valley, and we're doing it with purpose. We built the platforms and are now executing on that repeatable, capital-efficient growth model. The transition is hard, and that's why a few companies will make it. Ondas is presenting a win-win model that can reward the target investors along with our shareholders. We believe this plan supported by our public market investors positions Ondas to be in a unique position to be the consolidator and clear market leader in autonomous drone systems and aerial intelligence with additional complementary capabilities.

To support our M&A strategy, we've built a highly capable corporate development team. This team brings together deep expertise in defense technology, government procurement, strategic finance and more. Key members include myself, who -- I'm overseeing strategy and Board and investor alignment; Oshri Lugassy, who's leveraging his operational expertise in Israeli market leadership; Ron Stern, who's advising on deal execution and investment structure; Neil Laird, who's driving financial modeling and capital planning; and lastly, Roni Kanelbaum, who I want to highlight briefly. Roni is leading M&A program management. She is our process and deal quarterback and brings tremendous defense technology and military expertise as well as financial and related investment experience.

And of course, in addition to this team, we're supported by the broader leadership teams across Airobotics and American Robotics. And their technical and market knowledge are an invaluable advantage for us versus financial investors. We are maintaining a structured and disciplined approach that includes sourcing and qualification, diligence and investment committee review, Board-level governance, integration planning and post-close value realization. This is a repeatable, scalable M&A engine, and I believe you will be impressed by the actionable opportunities we have in front of us.

In a moment, I'm going to ask Roni, our corporate development quarterback, to run through some important messages about our strategic plan. But first, I want to briefly highlight our plans to assemble a high-impact advisory board to further strengthen our execution. This Board will support strategic growth initiatives, product and technology road map alignment, government relations and procurement strategy. The advisory board will be active and engaged, serving as a strategic force multiplier across our businesses. This is an impressive group representing a strong coalition, which is building to support Ondas, American Robotics and Airobotics across the world, and we look forward to sharing more details on this impactful strategy over the next few months.

Roni, I'm going to now hand the call to you.

Well, thank you, Eric. It's a pleasure to join the investor call today. As Eric shared, I'm the Vice President of Corporate Development at OAS. As a way of background, I have 2 decades of experience in the defense sector with a technology and strategic focus. I have also spent time in the investment side of the table in venture and PE settings. I'm excited to join the Ondas team and believe that we will significantly -- add significant value via the strategic growth of initiatives we are sharing with you today.

So how do we go from where we are today to build a high-growth leading provider of autonomous defense and security capabilities globally? It starts with building the full operating platform, not just great products, but the infrastructure to deploy them at scale. This includes sales and marketing; supply chain and production; field services and sustainment; finance and administration; and, of course, legal, regulatory and government affairs.

Our customers, ranging from defense ministries to HLS and first responders, need more than innovation. They need trusted, responsive partners who can deliver consistent results. By continuing to scale this operation foundation, we position Ondas to deliver mission-critical autonomy at a global scale and to do so in a way that rewards capital providers with exceptional returns.

Let's talk about the target pipeline and deal flow. Our team has cataloged over 300 potential acquisition target across the U.S., Israel and Europe. Of those, we have actively engaged in the last quarter with 25 companies, and we currently have active diligence activity with 4 potential targets. These targets fall under 5 categories, which we outlined in the next slide, including multidomain ISR and counter-drone capabilities, integrated data and AI solutions such as mission control analytics in situ, field services and sustainment providers to scale operational support, proven Israeli defense tech with export potential and field validation. We are not looking for speculative R&D initiatives. We are focused on mature, customer-validated platform with real revenue and growth potential.

Finally, here are the criteria we use to qualify and prioritize acquisition targets. Operating criteria we are prioritizing are strong leadership in technical teams, proven platform or service with operational traction, visible revenue ramp and customer stickiness in alignment with defense, security or critical infrastructure markets. Important financial criteria include revenue in the range of $5 million up to $20 million, at least 50% of next 12 months revenue already booked; projected at least 50% year-over-year growth; and clear path to EBITDA profitability.

Each acquisition must be accretive operationally but also financially and strategically. This is critical to us. We are looking for companies that will accelerate our growth at the scale of our platform, enhance capital efficiency and drive shareholder value right out of the gates. Our bar is high, but the opportunity set is strong. And I want to highlight that we are actively engaged with a short list of priority transactions today.

I will now turn the call back over to you, Eric. Eric?

Well, thank you, Roni. Well done. Now let's look at the targeted financial outcomes from our combined core growth plan and strategic M&A strategy. By the end of 2026, our goal is to reach $100 million annual revenue on a run rate basis. This will be driven by core business momentum across Optimus and Iron Drone, program expansion with existing customers and initial contributions from the acquired companies we will bring under the Ondas [ tent ]. By 2030, with continued execution on both fronts, we target revenue of $300 million or more.

On the margin side, we expect to reach $90 million in EBITDA by 2030, targeting 30% EBITDA margins through a combination of product margin discipline, operating leverage from our scaled and shared operating platform and the strategic use of capital across integrated entities. This financial model supports substantial value creation, and we believe we have the operational and strategic road map to achieve it. The goal is not just to grow, it's to build a scaled, profitable and sustainable technology leader in the global defense, security and intelligence markets.

Now let's talk about the 5x goal and what all of this means for our investors. Today, Ondas trades with a market cap of approximately $350 million. Based on our road map, organic growth, program capture, operational scale and selective M&A, we believe we can build a company valued at $2 billion or more within the next 3 years. That's a 5x increase in our market capitalization, which will be driven by strong and ongoing revenue growth, operating margin expansion, improved capital efficiency and strategic positioning in a generational market cycle. This isn't just a vision. It's a targeted execution plan.

Further, this is not just about market cap growth. We believe we can execute this core plus strategic growth plan to create substantial upside for our investors reflected in a much higher stock price. Our conviction is high, and we believe we have the team and road map to deliver these outcomes, and we'll be focused on working to achieve these targets.

So let me summarize. Ondas plans to build the most complete, scalable and investor-aligned platform in the emerging autonomy-driven defense and security industry. We've transitioned from R&D to commercial scale. We validated our platforms in the field. We've secured reference customers in defense, homeland security, public safety and critical infrastructure. Our regulatory and policy tailwinds are strong. Our capital position is healthy, and our financial model is built to scale efficiently. Add to that a growing M&A engine and an advisory coalition, we believe Ondas is uniquely positioned to lead this market as it enters a hyper-growth phase. We're excited about the journey ahead, and we thank you for your continued support and partnership.

With that, we'll now open it to Q&A. Operator?

[Operator Instructions] The first question comes from Glenn Mattson with Ladenburg Thalmann.

Thanks for this presentation today and the detailed road map that you laid out. A question first on the M&A opportunity. Can you just talk about -- there's a lot of money chase in this space right now. Could you talk about maybe just the competition that you're seeing for the deals that you're going after and just -- what kind of green space is there versus other people trying to go after the same type of targets.

Yes. Sure, Glenn. Thanks for the question. It's a good one and an important one. We are seeing a significant surge in investment in our sector. However, I don't think that investment is directed towards consolidation, right? And I think while a lot of people have a vision around M&A and really the requirement and imperative for us to build scale in our industry, in practice, it's very difficult. So if you're a venture-backed, for example, you want to do the strategy, it's a bigger challenge, right? It's because the investment you're making is not in the -- just in operating capital. It's also in the acquisition capital, as I call it. And your cost of capital is very important.

I think we have a unique position where we're backed, again, by supportive investors. I believe that 100%. And I think we're going to have a very strong currency to execute this plan, and I think that's unique. So again, you're right, there's a ton of investment coming into our sector, but the M&A strategy is not easy. And I'd also say, and I made this point on the call, I think we have a huge advantage. We have technical and market expertise that financial investors don't have. And I think many people are going to make the choice to back us because we can execute a strong plan.

Yes. It makes a ton of sense. And then I just had a question on the U.S. expansion plans. Obviously, you're ramping up capabilities with some of the partnerships you've announced lately. There was this article in the New York Post, I don't -- for those who didn't see it, highlighting how the NYPD was testing out Optimus and things like that. Can you just talk about maybe the progress you've made in public safety and whether or not you expect to see maybe some actual -- some real orders from that sector in the -- over the medium term?

Yes. Well -- so I'll talk about public safety from both an Optimus and Iron Drone standpoint, and I may ask Tim to weigh in. So firstly, the demand cycle or the DFR investment cycle is very strong, coming off many years of public safety organizations working with drones, gaining experience in drones and really learning how to harness the power of drones. Specifically or particularly for emergency response, and that's where Optimus comes in, we did highlight that we spent the month of February in Central Park in New York, working in New York Police, and we had a great experience there. And we are very excited about the opportunity that we see in New York. And we did reference activities with a major city in the U.S in the Northeast, I should say.

At the same time, the NYPD did highlight the Iron Drone, and they highlighted more broadly the need for public safety organizations to be able to deploy counter-drone technologies, right? And they are one of many public safety organizations and critical infrastructure operators that are calling for this requirement because there's a serious need to protect populations and citizens and critical infrastructure. So we are engaged, and I don't want to give too many details prematurely, but I will say that NYPD is a leader hands down. And they're leading both in DFR and in the harnessing of the counter-drone technologies. And I think they're doing a great service to the industry by doing this.

At the same time, I want to highlight that the executive orders that were promulgated by President Trump and his administration back in early June are providing road maps so that public safety organizations can deploy these tools. Tim, I'm going to ask you, would you add anything to that conversation?

Yes. I think the only thing that I'd add is that we're seeing customers come to American Robotics and Ondas for 3 key priorities. Number one, they're looking at the leadership to make sure that we're going to deliver these critical programs and systems to them. That's one reason we're getting those inbound calls. The second is our products work. And when we show up and tell them that they're going to be autonomous and that we're going to be able to integrate within their DFR program, they know we're going to show up and do it. And lastly, they understand that our professionals on our teams understand the complicated regulatory environment, and it's not going to slow them down. And so with those 3 critical pieces, those are the reasons we're getting phones and inbound calls on a daily basis.

The next question comes from Mike Latimore with Northland Capital Markets.

So on the topic of fully autonomous, can you elaborate on that a little bit more? Maybe is there some metric that you can provide, I don't know, percent of flights completed without a remote control or something? And then sort of elaborate on that a little bit as it relates to the competition. Are you more autonomous? Or just sort of how do you define that autonomy relative to the competition?

Okay. So let's talk about both systems. So we install both of these platforms as infrastructure. Starting with Optimus, I guess, I'll highlight that we have now for several years been expanding a fleet in Dubai with our governmental public safety customer. And the performance of our Optimus drone infrastructure has been incredible in terms of reliability. They are now -- they've got 8 systems installed. They've added systems this year and are installing more, and we expect them to continue to expand their fleet. And they're operating all of these systems from a single remote operating center. So nobody is touching these drones at all. So at the end of the day, you can't get more autonomous than this.

And then -- and before -- I'll turn to Iron Drone, but I'll ask Eitan to shed any more light on that if we need to. And then secondly, on Iron Drone, the autonomy on Iron Drone is off the charts. Again, installed as drone infrastructure. The system is connected to ground radar, which detects the threat from a distance away. The drone is deployed instantly to react to that threat. And then mid-flight, we have onboard intelligence. This is the Deepstream technology we emphasized earlier where you've got a capability of computer vision fused with sensor technologies onboard, where real time, we're hunting for the threat in space and we lock on it and then we, of course, make the move to capture it and mitigate the threat. So the autonomy is not just in navigation. It's actually in the hunting of the target itself and the security that we're providing.

Eitan, would you add anything to that?

Yes, Eric. So as you just said, Iron Drone is really the state of the art. It's really the newest thing in the market, and it's combat-proven. And that's also a very significant fact about this drone. Iron Drone, you can't fly it by remote control. It's completely autonomous. So once you launch it, just watch it works, and that's the amazing part of it. It's completely autonomous. It's using the state-of-the-art algorithms, and it's just working in a very impressive way.

Yes. And let me just add, relative to competition -- I mean, there's some serious companies out here that we do compete with. But at the same time, I do believe strongly that the proven reliability we have in and around our autonomy, and Tim touched on this just a moment ago, I still submit that it's not -- it's unparalleled.

Okay. Great. And then just on the topic of a potential U.S. federal program this year, maybe can you elaborate a little bit on that? Which agency maybe or the use case, the potential volumes involved? Is it a new program? Or are you going to replace -- try to replace somebody that's already in a program. A little more clarity on that would be great.

Yes. Mike, I'm going to defer that question to a later date. There is a vast -- there's a surge in programs that are available across both platforms. And I think there's any number of them that will turn out to be platforms that we can capture. So -- or programs we can capture. So let's hold off on giving some details around that.

The next question comes from Max Michaelis with Lake Street Capital Markets.

I felt the conversation -- or the presentation was really interesting around the tech. Just one quick question for me. This is around 2026. Looking at one of your slides, you note that your 2026 outlook of $40 million from the OAS segment could potentially be conservative. This is due in part to military orders and U.S. DoD orders. What are your internal estimates right now around 2026, I mean, if things are your bull case, your best case scenario? There's a lot of money flying around right now with some of the executive orders and spending bills. So maybe give us an idea of what 2026 could look like maybe from your internal estimates if things go how you expect them to go, maybe not on your conservative estimate, but maybe your bull case.

Okay. I'm going to on that one also kind of defer to be specific, but I will highlight that many of the customers that we're working with, when you think about the size of the infrastructure -- potential infrastructure build-out, whether you're looking at the number of border miles that need to be protected, the number of military bases, the number of cities and how dense we will be building these networks, the numbers can get very, very large. So I think -- the bottom line is I think that what we've underwritten here for the base plan gives us a lot of cushion, and we'll take it higher as the opportunities exist.

I mean we do want to build the credibility with our investors around delivering what we promise. And I think what we'll be doing over time, I really believe, is we'll be able to deliver or even overdeliver what we talked about here. So I'll leave it at that.

Okay. Maybe I'll ask one more follow-up here. This is just around municipalities. I know you mentioned the city in the Northeast. Is there any other municipalities around the United States maybe you guys are in conversations with? Maybe not the same size of potential order, but maybe are you guys increasing your discussions with other municipalities around the United States?

Yes, we are, for sure. And a little more context around that is we have been building the pipeline in the United States now for a couple of years. However, I will say that we have been resource constrained. And those resource constraints were firstly financial, just to be candid, and that's not news to our investors. But also we were doing the real hard work in the midst of a war in Israel in advancing the Iron Drone system, which, of course, the geopolitical climate, as we say, has been a huge boon for our business. But there was a period of time where it was really all hands on deck to service that very important demand to support our customer there and to advance Iron Drone.

As you sit today, we've been -- now we've got a maturing pipeline. It is likely to present upside to the models we're sharing with you today. And now we've got Mistral, which is going to be helping us leverage the even larger DoD, homeland security and large state and local governments as well. So I guess that's some context as to where we're at, but it's much -- there's much more going on than the very large opportunity we have with this Northeast city.

The next question comes from John Roy with Water Tower Research.

I had one curious question, which is with the drone as a first responder. Obviously, this question has been solved, but how exactly do you guys handle the liability on that? Is that something that you have insurance for? Is that something that the clients handle? I'm really just curious.

Yes. Good question, John. Tim, I'll let you handle that.

Sure, absolutely. So from a product manufacturing OEM standpoint, of course, we're responsible for the product operating as its intended use. So -- but just like Boeing selling aircraft to Delta Air Lines, once that product transfers over to the operator, whether it would be a police force for DFR operations, et cetera, they have to follow our OEM manuals. And again, the Optimus went through an FAA Type Certification, one of the only companies in the world that achieved that, to have the maintenance manuals, the training manuals. So the actual operator is required to follow all of those things. And if they don't and something happens, then that liability would, of course, shift to the user.

But more importantly, once it's being used and how it's being used, they have to maintain and make sure it's being operated to that intended use. So from a legal standpoint, it's no different than if we sold a different type of product. It just so happens it's an aircraft. So we take great care in detail to make sure we're manufacturing it to those standards that we say we're doing it. Did that answer your question?

Yes. No, no, it does. It really does. And on a more, let's say, analyst-type questions was, could you give us maybe some high-level milestones -- key milestones that we could look for in the drone, the anti-drone and then the M&A kind of business lines that you have? Just curious if you could just give us some high-level things we should watch for?

I think it's pretty simple, John. We're going to be building our backlog through orders and pulling those orders through to revenue. And I think that's the most important thing. That's our focus. We did highlight what the programmatic M&A opportunity is, and we shared some insight as to how that -- those opportunities are progressing. And I think you have to just look at those deal by deal. I don't think we're going to say, we have to do anything, right? It's always going to be -- our timing around that will be kind of when the deals are right for us to execute. But we do think there's going to be quite a bit of potential in the coming months and quarters there to kick it off in a really strong way.

The next question comes from [ Don Dubler ] with [ Everly Capital ].

Just want to congratulate you guys on everything you've been doing. Your progress is just really showing through the last couple of years. I've been following you guys a lot, very bullish, I know. My questions revolve around a bit of the customers, your products and kind of the financial model. Do you feel your customers view you as a true platform company or as a product and like a solution -- like product solutions company?

Thank you, [ Don ]. And great question. So I believe the customers look at us as a platform provider. What we're bringing is drone infrastructure. It's complex, it's highly regulated, and they need our expertise. It's that simple.

Yes. As a follow-up to that, I would ask when I look at your financial model and your products, how much of your revenue comes from, if any, a recurring service, like you locking them into recurring service contracts going forward versus just the systems and the [indiscernible] systems?

Great question. Okay. So -- yes. So the -- so there's really 2 models. We'll sell our platforms, our systems as infrastructure. And that is -- that's a sale. And then we have recurring maintenance and warranties on top of that. And that's typically going to be 12% to 15% on an -- annually on an installed base that is growing. As I made -- as you pointed out, we are targeting customers that are building fleets essentially, right, drone infrastructure. So while not technically recurring, we do think there's quite a lot of visibility on what I would call repeatable revenue.

At the same time, there's a large market. And let me just dissect the market a little bit. Typically, that sale, right, the sale will be to militaries, homeland security officials, large customers, they are state and local, who are providing security to populations. And they, for a lot of reasons, firstly, they have the expertise and the scale to operate these systems themselves. So -- and because of compliance and privacy and all sorts of things that are true to homeland security and activities like that, they need to have total control of the system.

At the same time, the -- I would say the commercial markets, in particular, they're going to look to increasingly adopt the system, the Optimus System, as a service model. So we'll deploy the system with them. We very often will even operate them from a remote operating center. And so we're just providing the data and the intelligence. So they might get the live video feed. They may get the data analytics if we're providing inspection services. So there's really going to be both models.

Is there a way or a thought of a way to try and enhance those services even if they want 100% control of a system, how you could be charging more on the units that are out there and for the platform that they have access to?

Yes, sure. And we've demonstrated this. So the systems are used for security and intelligence. And as we deploy them, the customers utilize them, they're increasingly -- or over time, our experience has been they want more intelligence. And of course, that gives us opportunities to enhance payloads and to bring data analytics. So machine learning, computer vision models, for example, more AI capabilities. And of course, those services can be material as our installed base grows.

The next question comes from [ Seth Wolfish ] with [ Arc ].

To as much as a degree as you could answer, I'm just curious specifically to the NYPD, the potential customer. But -- I guess it could be asked in a greater scale, but in their case, in particular, do you anticipate like any challenges to winning a deal like that when you factor in a potential new mayor with a different attitude per se towards the NYPD? And again, if that's something that you evaluate as you're building these relationships in general. That's all.

Yes. [ Seth ], I wish I could give more details, and I'm not quite sure my analysis of the political situation and what it means for any vendors to NYPD or the city of New York is kind of -- I don't have a unique insight. But -- and at the same time, I think we want to be -- let's just hold off a little bit. I think we want to continue our work there. And I think we've shared all the details that we're kind of able to at the moment.

The next question comes from Jared Berlin with Thames Capital Management.

I'm sorry if this was in part addressed earlier. I was just hoping you could -- I guess, a 2-part question. Can you just lead me through the changes in your capital structure just in terms of -- clearly, you've fortified it quite a bit with cash on the balance sheet. The convertible debt obligations have come down. You have an ATM with which you're going to the market. Just if you could just give me a brief summation of what -- where the capital structure was, where we are today.

And then the second part is clearly, in your deck, M&A is a big part of the strategy going forward. And how do you see that unfolding, both from the perspective of capital to fuel that part of the strategy and the multiples that you anticipate paying, the range of multiples on a revenue basis or whatever basis makes the most sense? That would be quite helpful.

All right. Great. Thanks, Jared, and nice to meet you. So firstly, we do not have an ATM in place. Now just some context as to where we sit today from a balance sheet perspective. I'll compare it to the beginning of the year because there has been this transformation. So including principal and accrued interest, unamortized debt discounts, all that fancy stuff on our convertible note, we had over $50 million of convertible debt at the holding company at the end of the year. And that was held by a single investor, supportive investor, but a single investor. And that had been an overhang on the shares.

However, as you've seen, we are demonstrating growth in the business and a very strong outlook. And I think that, along with a very strong end market and expectations of a very big investment cycle here on the drone side, both commercial and military, so dual use, that's really helped bring awareness to our company. And we've attracted a lot of investment, which is great. That has allowed us to delever. So that investor converted the bulk of those notes over the first couple of quarters. And today, that is just a little over $5 million, as we disclosed.

We also were able to raise capital early in June. We had a $46 million equity offering, straight equity, and that was, again, in early June. And we have had some further, I'd say, capital structure cleanup with some warrants that have been exercised over the last few weeks. So we have $67 million in cash at the end of the quarter. And we are well capitalized, as I outlined.

As it relates to M&A, I guess I'm not -- I think on the multiples, the short answer is it's going to depend and vary. However, I think we have a significant opportunity for what I would refer to as arbitrage. In our markets, there's a number of -- and we talked about our pipeline, but there's a large number of companies who are doing extremely good work, difficult work to build autonomous systems, right, special capabilities. And to do these AI-enabled systems, this deep technology, the integration of hardware and software, it's not something you can go from PowerPoint to operational system in a year. It takes many years, often 10 years, okay?

So that time, of course, is money. And what we've been able to see over time is that the companies that have made those investments been able to get into the field with customers and be able to get to product market fit and acceptance, they're starting to come out the end, right? And Airobotics and Iron Drone are great examples of that.

So those companies are coming out. However, they don't -- they were venture-backed 5, 7, 10 years ago, and those investors are tired and can't make that transition to building an operating company, right, all that investment of operating capital that we just described. And what I'm telling you is because of that, the multiples are going to be low, I'll just say that, low relative to where we're going to trade because we've made those hard investments. Our investors have supported that. And now we have that operating flywheel going.

So I think we're going to have an opportunity to create tremendous value in these acquisitions. And then when we acquire the companies, we're going to grow them faster because we have this operational capability than they would have been able to grow in and of themselves. So I think this is a win-win scenario. It's a win for the investors, the management teams that we're going to take on, and it's also a win for our investors.

This concludes our question-and-answer session. I would like to turn the conference back over to Mr. Eric Brock for closing remarks.

Okay. Well, thank you, operator. And as we wrap the call, I want to thank you again for spending time with us today. As we outlined, we have huge momentum in the business. And we're not content with just a linear curve in this booming industry. We're mission driven. We have an opportunity to build an important and valuable company, and that is what our business plan is poised to deliver. We're going to work extremely hard to ensure success. And I look forward to sharing more updates on our progress in the weeks, months and quarters ahead. I want to thank you again for attending, and have a great afternoon.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.