Odysight.ai 2025 Q3 Earnings Widening Losses Amid Strategic Sector Shift

Odysight.ai (ODYS) reported Q3 2025 earnings on Nov 13, 2025, with results falling significantly below 2024 levels. The company's revenue dropped 88.5% to $149,000, and net losses expanded by 54% to $4.42 million. While CEO Yehu Ofer highlighted progress in monetizing a $14.2 million backlog and transitioning to aerospace/industrial markets, the stock's post-earnings performance remains mixed, with a 7.82% month-to-date decline.

Revenue

Odysight.ai's Q3 2025 revenue plummeted to $149,000, an 88.5% decline from $1.29 million in the same period of 2024. The sharp contraction reflects the company's strategic pivot away from medical devices toward aerospace, transportation, and industrial sectors. While commercial aerospace revenue was recognized in 2025, the nine-month trailing revenue of $2.6 million (as of Sept 30) shows only marginal improvement from $2.7 million in the prior-year period. The company's backlog of $14.2 million, expected to monetize through 2026, represents a key offset to near-term revenue challenges.

Earnings/Net Income

Odysight.ai's losses widened to $0.27 per share in Q3 2025, a 17.4% increase in per-share losses compared to $0.23 in Q3 2024. The net loss expanded to $4.42 million, up 54% from $2.87 million in the prior-year period. Despite a 27% gross margin on $0.7 million in gross profit, rising operating expenses—driven by operational expansion and Nasdaq uplisting costs—contributed to the significant net loss. The company's financial performance underscores the risks of high operating leverage and revenue conversion uncertainties.

Post-Earnings Price Action Review

The strategy of buying Odysight.ai shares on the date of its revenue raise announcement and holding for 30 days yielded moderate returns, with a 25.6% average gain over three years. This suggests a solid short-to-medium-term holding strategy, especially given the market's positive response to Odysight.ai's growth prospects.

CEO Commentary

Yehu Ofer, Chief Executive Officer of Odysight.ai, highlighted a “transformative phase” marked by the monetization of a $14.2 million backlog, with revenue visibility into 2026 and beyond. He emphasized the strategic pivot from the medical sector to aerospace, transportation, and industrial markets, noting commercial aerospace revenues in 2025. Key achievements include the first European operational footprint via an AW139 helicopter test, Heron TP UAV system delivery, and PHM deployments in rail and heavy vehicles. Ofer expressed optimism about expanding the backlog through advanced negotiations and scaling global operations, underscoring the company’s execution on a “global scale.”

Guidance

Einav Brenner, Chief Financial Officer, outlined expectations for continued backlog monetization in 2025 and 2026, with active negotiations to increase backlog. The company anticipates leveraging its $29.8 million cash balance to fund R&D, large-scale deployments, and strategic opportunities. Management aims to maintain prudent capital management while investing in programs for sustainable value and profitability. Forward-looking statements include the potential for expanded railway PHM deployments and increased backlog through partnerships, though risks such as customer cancellations and market adoption challenges remain.

Additional News

Odysight.ai completed its transition from the medical sector to aerospace, transportation, and industrial markets, with commercial aerospace revenues booked in 2025. The company uplisted to the Nasdaq Capital Market in February 2025 and raised $23.7 million through a U.S. underwritten public offering. This capital infusion bolstered its $29.8 million cash balance, supporting R&D, deployments, and strategic initiatives. Notable operational milestones include the first European AW139 helicopter test, Heron TP UAV system delivery, and a 200-unit commercial order for industrial predictive monitoring systems. These developments underscore the company’s global expansion and technological validation in critical infrastructure sectors.