Ondas Holdings 2025 Q1 Earnings Misses Targets as Net Loss Widens 43.1%

Ondas Holdings (ONDS) reported its fiscal 2025 Q1 earnings on May 15th, 2025. Ondas Holdings fell short of revenue expectations, reporting $4.25 million against the anticipated $4.94 million. Despite this, the company reaffirmed its full-year revenue target of at least $25 million, driven largely by its Ondas Autonomous Systems unit. The guidance remains in-line with previous forecasts, reflecting confidence in meeting ambitious goals despite ongoing financial challenges.

Revenue
Ondas Holdings witnessed a notable upswing in its total revenue, rising 579.7% to $4.25 million in Q1 2025, compared to $625,009 in Q1 2024. This surge was largely driven by product revenue, which amounted to $3.22 million, complemented by service and subscription revenue at $808,841. Additionally, development revenue contributed $215,368 to the quarter.

Earnings/Net Income
Ondas Holdings narrowed its loss per share to $0.15 from $0.17 in Q1 2024, indicating an 11.8% improvement. However, the net loss widened significantly to $14.14 million, marking a 43.1% increase from the previous year's $9.88 million loss. The EPS remains a concern as losses continue.

Price Action
The stock price of Ondas Holdings has edged up 0.91% during the latest trading day, has jumped 8.32% during the most recent full trading week, and has dropped 6.30% month-to-date.

Post-Earnings Price Action Review
Ondas Holdings experienced a revenue miss in its first-quarter results, recording $4.25 million, below the expected $4.94 million. Despite this shortfall, the company shows positive momentum, particularly within its Ondas Autonomous Systems (OAS) segment. The strategic approach involves purchasing ONDS stock after the revenue miss and maintaining it for 30 days to leverage potential short-term gains as the company continues its upward trajectory. The OAS segment is expanding into defense and homeland security markets, showing robust growth potential. Analysts maintain an "Outperform" consensus, with a target price suggesting significant upside. By simulating historical stock data, investors can assess the strategy's return on investment compared to a standard buy-and-hold approach. This strategy aims to capitalize on Ondas's growth prospects and short-term price movements, while also considering broader market conditions and risks associated with holding stock post-revenue miss.

CEO Commentary
Ondas Holdings' CEO emphasized the company's "record revenue growth" driven by Ondas Autonomous Systems, showcasing an impressive revenue surge of over 500%, reaching $4.2 million in Q1 2025 compared to $0.6 million in Q1 2024. The CEO highlighted strategic partnerships, including collaborations with Palantir Technologies, and noted the expansion of the customer base in defense and homeland security sectors. Despite ongoing operating losses, there was a positive tone regarding improved cash efficiency and a significant reduction in convertible debt, which the CEO described as essential for sustaining growth initiatives.

Guidance
Ondas Holdings reaffirmed its full-year revenue target of at least $25 million for 2025, with expectations that at least $20 million will be generated from Ondas Autonomous Systems. The company anticipates continued revenue growth supported by a backlog increase to $16.8 million, driven by over $9 million in new orders. Additionally, the CEO expressed confidence in operational improvements and strategic market positioning as crucial elements for achieving these financial goals.

Additional News
Ondas Holdings is set to participate in Ladenburg Thalmann Innovation EXPO25 on May 21, 2025, in New York City, where CEO Eric Brock is scheduled to speak. The company has also announced its involvement with the Association of American Railroads, which selected Ondas Networks' dot16 wireless protocol for next-generation rail communications, a significant industry validation. Furthermore, Ondas has secured a $3.4 million order for its Iron Drone Raider system from a European defense contractor, marking a strategic expansion into international markets and enhancing its position in the defense technology sector.