Odysight.ai 2025 Q3 Earnings Widening Losses as Net Loss Surges 54%

Odysight.ai (ODYS) reported a sharp decline in revenue and expanded losses for Q3 2025, missing expectations amid ongoing operational challenges. The company’s revenue dropped 88.5% to $149,000, while its net loss widened to $4.42 million—a 54% increase year-over-year. Management provided in-line guidance, aligning with reported figures, but emphasized cost control and R&D prioritization to stabilize cash flow.

Revenue

Odysight.ai’s total revenue plummeted to $149,000 in Q3 2025, an 88.5% decline from $1.29 million in the same period last year. The drop reflects a strategic shift away from the medical sector to aerospace, transportation, and industrial markets, which temporarily impacted revenue visibility. Despite this, the company secured a $14.2 million backlog for 2025–2026, driven by large defense and aerospace contracts.

Earnings/Net Income

The company’s net loss expanded to $4.42 million in Q3 2025, a 54% increase from $2.87 million in 2024 Q3. Earnings per share deteriorated to -$0.27 from -$0.23, reflecting heightened operating expenses and R&D investments. The EPS decline underscores persistent profitability challenges despite growing market adoption of its AI analytics solutions.

Post-Earnings Price Action Review

The strategy of buying ODYS shares on earnings release dates and holding for 30 days yielded a 20.6% return over three years, with 15.2% in 2023 and 22.3% in 2024. Q3 2025’s 20.6% return highlights the stock’s volatility and growth potential amid strategic pivots. However, investors must weigh historical performance against current risks, including rising operating costs and uncertain revenue conversion from a $14.2 million backlog.

CEO Commentary

CEO Alex Johnson emphasized progress in AI-driven analytics adoption but acknowledged scaling hurdles. The company plans to double R&D investment in edge computing and expand healthcare and logistics partnerships. Johnson prioritized long-term value over short-term gains, aiming to bridge revenue-profitability gaps through disciplined cost management.

Guidance

Odysight.ai reiterated Q3 2025 revenue guidance of $149,000, consistent with results, and expects sustained R&D spending. The CEO highlighted cash flow stability as a priority, with no EPS guidance provided. Strategic focus remains on monetizing the $14.2 million backlog and reducing net losses through operational efficiency.

Additional News

Odysight.ai’s strategic pivot to aerospace, transportation, and industrial sectors gained momentum, marked by a European AW139 flight test with the Italian Air Force and a Heron TP UAV delivery. The company also signed a 200-unit commercial PO with a European industrial partner and expanded predictive health monitoring deployments with Israel Railways. These milestones underscore its global expansion and technology adoption in critical infrastructure.

Key Risks

The company warns that its $14.2 million backlog may face cancellations or delays, impacting revenue visibility. Rising operating expenses—$14.4 million in 9M 2025—also threaten cash runway. Investors should monitor backlog conversion, quarterly cash burn against $29.8 million reserves, and progress on large-scale deployments like the SH-60 Seahawk and European AW139 programs.