Ondas Holdings Inc.

and welcome to the ONDIS Holdings Inc third quarter 2025 conference call all participants will be in listen only mode should you need assistance please signal a conference specialist by pressing the star key followed by zero after today's presentation there will be an opportunity to ask questions to ask a question you may press star then one on your telephone keypad to withdraw your question please press star then two Before we begin, the company would like to remind you that this call may contain forward-looking statements. While these forward-looking statements reflect ONDIS's 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 ONDIS's periodic SEC filings and in the earnings press release issued today, which are both available on the company's website. ONDIS 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, ONDIS 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 OnDust. I'm happy to be joined this morning by key members of our leadership team, including Neil Laird, our CFO, Oshu Legassi, the co-CEO of Andes Autonomous Systems, Mayor Kleiner, president of OAS and the founder of Aerobotics, and Marcus Nadelman, the CEO of Andes 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 OAS and Andes Networks business units, where I'll ask Oshree, Mayer, and Marcus to share commentary on current business activity and progress against our plans. During our OAS 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 Centrix, who is joining the call to share some insight into the Centrix technology platform and business, as well as the strategic fit with ONDOS. After the operational updates, I will share an outlook for the remainder of 2025 and beyond 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, Andas is positioned for success. That position wasn't luck. It's the results of years of hard work, discipline, and planning. We've earned it, as have 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 you 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 remain critical, but they're not sufficient on their own to create high returns on capital and equity value. The winners 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 ONDOS. 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 the beginning of what we believe is a major counter-UAS boom, where ONDOS is extremely well positioned to win. In July, we laid out our core plus 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 on this as 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 OnDesk now has one of the strongest balance sheets in the industry, giving us access to a deep capital pool and a meaningful cost-to-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 in 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've delivered another record quarter. not just financially, but also operationally. In the third quarter, we generated $10.1 million in revenue, a more than six-fold increase year over year, and up nearly 60% sequentially from Q2. Our consolidated backlog grew to $23.3 million, more than double what we started the year, and that number reaches over $40 million, including another $18 million related to acquisitions that are closed or pending closure in the fourth quarter. We expect our backlog to grow through the end of 2025 as our pipeline matures, giving a strengthening visibility on customer order plans. Given the strength of our execution in 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 multi-year growth outlook. We're scaling production, fuel services, and sustainment capabilities to meet accelerating global demand for our autonomous and unmanned systems. Oshrey and Mayer 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 standalone 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 established OnDesk Capital, which we launched in the third quarter. On this capital is building a technology bridge from Ukraine to the United States and allied European nations focused on stealing combat proven unmanned and dual use technologies into production in commercialization. This initiative broadens our reach strengthens our industrial base is supports the growing alignment between innovation, security and economic resilience. Meanwhile, OnDisk Networks continues the hard work to drive adoption of its .16 wireless connectivity platform. As Marcus will share, the AAR's Wireless Communications Committee formally selected .16 as a wireless roadmap standard for all AAR-owned frequencies, including the 900, 450, and now 160 MHz networks. While the hard work will continue, this formal designation validates our long-term strategy and continues to position OnDesk Networks at the center of 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, OnDesk 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 roadmap we've been building over the past year, a roadmap that's now delivering real, tangible results. Andes 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 Andes Autonomous Systems, where we continue to build the core OAS operational platform. Under OSHRI leadership, that platform is scaling rapidly, supported by seasoned executives, an impactful cross-functional advisory board, and a growing ecosystem of partners across technology, sales, and production. OSHRI and Merrill 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 Centrix, which will bring advanced cyber over RF drone detection and mitigation to complement our iron drone radar. We added apparel 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's autonomy portfolio. Other smaller yet strategic acquisitions that contribute engineering, AI, and optics expertise were added, and that includes SPO, Zikl Engineering, and Insight Intelligent Sensors. At the same time, we formed a strategic partnership and made a minority investment in Rift 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 OnBus 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 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 in our path to profitability. We're building a stronger, more diversified OnDust, one capable of sustained performance, multi-domain leadership, and meaningful long-term value creation. Now let's turn to Andes Capital. We are very excited to have formally launched Andes Capital, which represents a powerful new strategic growth platform for the company. Andes Capital is a multi-year 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 and unmanned systems, AI, and do-it-yourself innovation that are already validated in the field and ready for production, whereby ONDAF 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, honest 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 honest 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, Tallinn, 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-driven 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 OnDesk Capital will become a cornerstone for strategic growth, international collaboration, and industrial resilience while creating new pathways for financial and operational expansion across the OnDesk 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 OnDesk 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 Andes 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 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 apparel ground robots related services under contracts from 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 shifts 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 increase 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 non-cash items. Cash operating expenses, which exclude non-cash 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 similar on-bus holdings, similarly at on-bus holdings, to 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 the 30th, 2025. compared to $30 million as of September the 31st, 2024. Cash used in operations for the first nine months remained relatively flat at $26 million, compared to $25.4 million for the first nine months of 2024. Cash used in investing activities for the first nine months of 2025 included 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 RIF previously. As it relates to investments in companies such as Lightpath, Copin, and SafePro, 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 nine 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 Clear, 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 at $433.4 million as of September the 30th, 2025, compared to $30 million as of September the 31st, 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 the 30th, 2025 was $487.2 million compared to $16.6 million as of September the 31st, 2024. Furthermore, on those 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 the 7th, 2025, and before cash used for operations and to finance acquisitions and investments in the fourth quarter. I'll hand it back to you now, Eric.

Now we'll transition to a review of our business units and ask Marcus, Oshree, and Mair to share updates on business development activity and operations at Andes Networks and OAS. Let's start first with Marcus, who is moving Andes Networks and our .16 platform deeper into the railroad operating groups, which will eventually have its rewards. Marcus?

Thank you, Eric. 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 DOT16T, the IEEE standard that ONDOS 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 DOT16T for all new developments in the AAR-owned 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-owned frequencies are destined to adopt DOT16, the DOT16-Moyales platform. As outlined in the Q2 earnings call, The 160 megahertz network has characteristics that make it a compelling case for railroad investment. Specifically, the 160 megahertz network is ubiquitous. Where there is rail, there is 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-owned 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 on-dose networks. I would like to highlight how quickly momentum is building around DOT16 on the 160 MHz network. In Q4 and early next year, we are running several separate field trials on Class I and other railroads, three railroads that in aggregate address long-term industry needs in significant markets. Specifically, these POCs address communications, signaling, and connected wayside topics, as well as general connectivity topics for connected railroad workforce. This is significant as it moves on those networks from engaging with railroads on individual use cases to implement true dot 16 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 Amtrak. 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 CISA, 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-EOT generation 4.0 specifications, given that the DOT16 protocol that OnList Networks developed for NGAG 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 and product development tasks to take advantage of the updated WCC timeline. We also continue to engage with the railroads on specific 900 MHz applications, though timelines of large network deployments remain uncertain. The 900 megahertz timelines are frustrating, though we are creating even more compelling opportunities in addition to the 900 megahertz network with the railroads, and believe the market and financial opportunity for our DOT16 technology remain 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 the beginning of the adoption curve in 2026. I will now hand the call back to Eric.

Thank you, Marcus. I will now ask Oshri Lagasse to take the floor and provide a business update for our OAS business unit. Mayor Kleiner will also share some context on the progress of the build-out of the OAS operating platform. We will also be joined by Tal Cohen, the founder and general manager of Centrix, 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 firm. We are working relentlessly toward our vision of delivering next generation autonomous and connected solutions for defense, homeland security, and critical missions. OS 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 the autonomous infrastructure that nations and industries will rely on. Our goal is both the global to build a powerful global leader that delivers 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 in threats posed by drones. We are prioritizing combining sensors that can detect and track threats from small UAVs to large ones with effectors 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 OS 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 at 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 multiple strategic acquisitions, which are adding immediate operational and financial value to UNDAS. We established new partnerships and onboard top talent to strengthen and expand OAS's operational infrastructure. We achieved several important milestones across our portfolio. Optimus was officially listed on the green UAS framework with inclusion on the blue UAS list pending with a U.S. DoD. At the same time, we continued to expand our global pipeline for the Iron Drone radar, strengthening our position in the fast-growing counter-US market. We successfully executed multiple counter-US pilots in the US, Europe, and Asia, demonstrating interoperability across our systems. Iron One Radar was showcased at the Interpon Counter U.S. IDICE 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 radar was also selected by Securitum Germany, a leading integration partner to the German armed 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 UNDAS is positioned to lead here. Of course, our market position is even stronger with the addition of Centrix, which opens a tremendous opportunity to market a layered counter-US solution suite. Similarly, our US pipeline continues to mature, aligned 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 a partnership and made a strategic investment with Rift Dynamics, including an initial order for the WASP FVP drone. Rift is making impressive progress in Europe with the WASP, and we are excited to support the global success, of course, including in the US. On the production side, we launched NDAA compliant made in U.S. fiber optics pools 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 Areven, former CEO of Rafael Advanced Defense Systems, to our advisory board. His experience and insight will significantly enhance our strategic depth as we continue expanding OAS globally. I will now pass the call to Mayor Kleiner, who will share an update on the M&A program and the operational scaling activities at OAS. Mayor?

Thank you, Ashri. During the quarter, we accelerated the execution of our strategic growth program, which drives value creation through accelerated growth and a clear path to profitability. The first start after outlining the plan for investors 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's commercial reach and strengthen our product ecosystem. Each acquisition we made contributes 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 one interoperable platform. Synergies accelerate customer solution delivery, enhance revenue growth, and increase operation leverage through OAS's scaled infrastructure and position OAS as a next-generation multi-domain defense and security leader. We are building a scaled and interoperable platform by bringing together a group of highly complementary companies each 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 five 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. Ampero Motion marks our entry into ground robotics and payload systems, a key capability for border defense and maneuvering forces operating in complex terrain. ForumDefense expands our subground and engineering platforms, enabling OAS to participate in land clearance and deep mining operations, which are essential to modern defense missions. In the Counter-UAS domain, our primary focus area we added Insight Intelligence Sensors, which delivers electro-optical and AI-driven identification of hostile drones. Encentrix, which we have entered into a definitive agreement with, whose cyber-over-RF technology provides one of the most effective and precise counter-UAS solutions available, capable of neutralizing threats with minimal collateral impact. And with Zickel, which we acquired in July, we have further strengthened our elite engineering team, adding important capabilities valued by our defense customers. Together, these companies significantly enhance OAS's technological depth, 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 we'll expand on the Centrix and ask Tal Cohen, Centrix founder and general manager, to share some thoughts in a few moments. As we continue to scale Ondas Autonomous Systems, we are building a strong operational infrastructure that connects all elements of our business, from our corporations 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 enhances efficiency across the group. This integration is being supported by the establishment of a senior leadership layer 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, aligning our global sales teams, partners, and customer networks under one commercial framework. At 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 in 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. merging aerial, ground, sensing and cyber capabilities into one interoperable, scalable and autonomous system of systems. Our Counter-UAS segment, a key area of focus and growth, will be anchored by the integration of Iron1 and Centrix, together delivering complete hard and soft-kill capabilities under a unified command and control architecture. This system of systems 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's position as a next-generation defense and security leader. I would like to take a moment to focus on Centrix. Centrix will expand OAS's global reach to Tier 1 defense, public safety, and security agencies, organizations actively protecting critical infrastructure across more than 25 countries. Centrix Cyber over RF technology represents one of the most advanced counter-OAS solutions in the market today, enabling safe, precise, and regulation-compliant drone neutralizing without jamming or collateral interference. Centrix technology is already field-proven, deployed globally across airports, defense facilities, and public safety operations, demonstrating extended range, multi-target engagement, and adaptability to involving radio technologies. This acquisition will position OAS with a unique soft-kill capability, perfectly complementing Iron One's hard-kill system. and together they create comprehensive Counter UAS architecture unmatched in the market. I will now end the call over to Tal Cohen, General Manager of Centrix, to review the company and this market of Counter UAS. Tal?

Thank you, Mer, and thank you for having me today. At Centrix, we are truly excited to join ONDAS. We believe this partnership will create a significant opportunity to deliver together with ONDAS the ideal solution to the evolving drone threat that has rapidly emerged over the past few years. I am pleased to highlight how Centrix is driving a major advancement in our CUAS, or Counter Unmanned Aerial Systems, capability through our proprietary Cyber-Over-RF technology, or CORF in short. CORF works differently from traditional jamming or kinetic solutions. Rather than broadly disrupting signals or deploying interceptors, Centrix 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 a hosted drone in seconds. Some of the operational advantages stand out. Rapid deployment and simplicity. Centrix system can be deployed in minutes, in a signal, pelican case, or mobile kit. Precision and safety. Co-op ensures zero interference with authorized drones, GNSS, or nearby communication systems, enabling safe mitigation in civilian, critical infrastructure, and defense environments alike. Proven global performance. Centrix is already trusted by defense, public safety, and infrastructure agencies in more than 25 countries. By integrating Centrix into the OAS architecture alongside our REL platforms, ground systems, and sensor networks, we will be delivering a complete detect-to-defeat CUS ecosystem. Centrix brings the soft kill layer of precise cyber protocol takeover, which pairs organically with our kinetic platforms for hard kill response. As drone turrets become more agile, more numerous, and more diverse across borders, critical infrastructure, and contested environments, the CORF capability gives us the scalability, agility, and compliance required for today's multi-domain defense posture. In short, with Centrix on board, we are not just reacting to drone turrets. We will be proactively controlling them safely, reliably, and at a scale. Centrix's 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. Centrix 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 across six 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 three countries, We are also extending our presence in Africa, South America, and Australia through new multi-agency programs that highlight the scalability and versatility of our core counter-US technology. Altogether, this demonstrates not only the global scalability and operational readiness of Centrix, but also how this capability will reinforce OAS's position as a trusted provider of field-proven, multi-layered CUIS solution for defense and critical infrastructure protection. A combined solution will allow detection, mitigation, and situational awareness under one coordinated architecture. We start with Centrix, which provides the first line of defense through its Cyber over RF technology. It delivers long-range detection, tracking, and identification of drones and enables safe cyber-based mitigation, taking control of the hostile drone and landing it without jamming or collateral interference. This also gives us critical intelligence real-time insights into the drone's identity, behavior, and even its operator's location. Next, we add the Iron Drone Rider, Ondas' autonomous kinetic interception system. It's designed to automatically intercept and defeat any drone threat, including those that operate without radio control or GPS, completing the full-spectrum protection layer. Finally, both systems feed into a unified situational awareness interface. where data from Cetrix and IronDron are fused into a single automated operational picture. This integration allows operators to detect, track, and utilize threat in real time, while reducing the workload and improving decision-making accuracy. Together, these capabilities will deliver comprehensive country-US architecture, one that covers every threat type across every environment with precision, safety, and automation. When we look at the broader counter-US market, the opportunity ahead of us is extremely significant. Global demand for counter-drone 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. Centrix is already well positioned in each of these markets with active deployments and a proven track record supporting tier one defense and security agencies. If we move to the revenue outlook, Centrix 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 rising 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 naturalize drones without causing collateral interference. positioning Centrix 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 Centrix join the OnBus team. We see exceptional talent at Centrix 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're continuing 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 OnDOS 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 seven potential targets. Collectively, these opportunities represent more than $500 million in potential additional revenue, highlighting the material impact our strategic growth program can have as we continue to execute. We believe this momentum positions us for a very strong 2026, one where our acquisitions and partnerships will not only add scale and capability, but also drive higher operating leverage, faster growth, and sustained profitability. Honest is building a platform designed 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, OnDesk continues to build momentum, and we expect to see strong growth across all areas of the 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're also providing our first formal view into 2026. Based on the visibility we have today, we are targeting at least $110 million in 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 set. 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 in 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 on-desk networks, we are heartened by the AAR's expanding commitment to DOT16, where three 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 on-desk networks. However, Until we see the orders, our outlook today reflects only modest revenue expectations from Andes 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 two dedicated events. In Andes Capital Investor Day in December, we will dive into that business unit strategy and investment roadmap today. and 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 roadmap and a detailed financial plan for 2026. In summary, Otis is executing on all fronts. We're growing, scaling, and expanding strategically. We've 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 visibility into increasingly profitable growth over time, which we believe will support a premium valuation for ONDOPS. 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 accreted 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 solutions 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 further excited to continue to leverage our momentum into 2026. With that said, operator, we will now move to take investor questions.

Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your touchtone phone. To withdraw your question, please press star then two. And at this time, we will pause momentarily to assemble our roster. And the first question will come from Amit Dayal from HC Wainwright. Please go ahead.

Good morning, everyone. Thank you for taking my questions. Eric, very impressive, you know, the spirit which you are executing. Just along those lines, you know, you highlighted that you are pursuing seven deals that you are at advanced stages from an M&A perspective. Just to clarify, you know, if you do close all those seven 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 seven targets, we're talking more broadly about the pipeline we outlined. Okay, understood. Thank you for that. And then... Let me just add that 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, and we think it's going to be both paths. Understood.

And then as we think about future OAS revenues, how should we think about one-time product or 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 that 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 a pipeline and start to pull that through on the commercial side, that lends itself to 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. Thank you. 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 that leadership team and that OAS 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 – are growing quite a bit themselves. So what we're hoping to do and believe we can do with this operating platform layer I described is accelerate the 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 on talent, and I think we're going to be growing that talent as well. Got it. That's all I have, Dave. Thank you so much.

And the next question will be from Mike Lattimore from Northland Capital Markets. Please go ahead.

All right, great. Yeah, 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. And, you know, 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 we'll give you a sense as to when we can cover the holding company costs.

And then the centric acquisition sounds interesting. very positive. I guess if you think about the counter U.S. or counter drone market, do you expect most of your prospects to buy both Centrix 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 going to be deployed. As you know, these are layered technologies. In many places, having the soft and hard kill will be appropriate. In certain locations, having one may be more appropriate. So we'll have to see how that plays out. 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. you know, that we can have a great deal of efficiency and value in guiding our customers to what those layers look like at specific locations.

And just last for me, in terms of the U.S. market, which sort of product category is the most promising for the U.S.? And maybe which, you know, type of government or government agency is the 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 and critical infrastructure markets even for public safety for the counter drones. So as we look into 2026, we expect the counter drone to likely lead the charge. However, we're going to see growth really across the board.

Okay, great. Thanks a lot.

All right, great. Thanks, Mike.

And the next question is from Tim Horan from Oppenheimer. Please go ahead.

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

So, yeah, you're right. I think Europe, and it's really true globally, the counter-drone infrastructure build-out really is just in its, you know, the batter's just coming, you know, for the first pitch. So we see a lot of greenfield here. At the same time, Europe is likely uniquely pressured here because the war in Ukraine is on their doorstep and you're seeing many reports consistently of drone threats emerging in Europe. We think there's urgency across the earth 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 Centrix is deployed in a bunch of locations. You know, is there any evidence that their technology works to protect these locations? Yes.

Oh, yeah, 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 IonTron with Centrix, when will that actually be accomplished? When can you start deploying the platform yet?

I'm going to defer that to our call in January. I don't want to put the timelines on that. I will add that the detection piece of what Centrix 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 Centrix as well. 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 you know, the upfront cost for the customer and the ongoing annual cost, yeah.

You know, like always, it depends, Tim. It depends on how many, you know, are they deploying a detection technology? Are they doing the soft kill? 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, you know, how does it compare, like, the upfront versus the annual recurring?

There are recurring fees on that. But, yeah, 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. Thank you. Thank you.

And the next question is from Austin Dalhague from Needham. Please go ahead.

Hey, guys, thanks for taking my question, and congrats on the great results. First question, guys, 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 at OAS as one unit, and we have two business units on this network in OAS, and that's That's what we're going to be presenting to you on a go-forward basis. But from the acquisitions in terms of contribution 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 guys' 2026 guide, how much additional M&A is baked into that 110 number?

There's no additional M&A. It's only the acquisitions we have announced. It does include the Centrix 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 Centrix 70%, that's going to be very accretive, but just trying to get a sense from a modeling perspective.

Yeah, 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, you know, let's see when we meet in January. We'll have a more precise outlook on that. But I do think 50% is a very comfortable number. And from there, I think we can see upside.

All righty. Well, thank you guys again. Keep up all the great work. Great. Thanks, Austin.

And the next question will come from Glenn Mattson from Radenburg. Please go ahead.

Yeah, hi. Thanks for taking my call. Another one on Centrix for me, if you don't mind. Can you just talk about the – obviously, there's unique 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 better?

Sure. Maybe I'll ask Mayor Tal to – Tal, you're probably equipped to take this.

Hi. So just to make sure I understood the question correctly, what is the difference between general or additional or other effectors of soft skill capabilities to template capability?

Yeah, correct.

That was the question?

Yes.

So our question is based, as we explained during the presentation, on the COF, cyber-over-RF capability, meaning we can first detect and track and identify the drone in a passive manner. So we are not emitting or creating any interference whatsoever. And I think the most important part is for the mitigation, we assume control over the drone with starting to communicate while communicating with the drone and not by doing any jamming or inflicting any other communication collateral damage. So it's a very short, very safe, very limited and precise surgical soft skill technology.

I appreciate that. And to your knowledge, is no one else doing something similar in terms of being able to do drone capture like that without interfering with other communication technologies?

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

Great. Very helpful.

I'll add, Glenn, if I could say in our assessment of the market, the Centrix 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 jamming or spoofing radio links or GPS. We're talking about the cyber over RF, which has significant benefits in performance. This is taking control of the drone and then landing it. So it's, you know, 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 the mix that you anticipate from all these different products that you now have. Can you just give us some sense of the confidence level in that mix and in that guidance? I think you talked about tracking the pipeline activity Just, you know, is it a portfolio of various?

Yeah, on the margin side, yeah, 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 in the mix. It certainly is going to improve as well.

Great. Okay, thanks, guys.

Thanks, Flynn.

Okay, the next question is from Matthew Galinko from Maxim Group. Please go ahead.

Hey, thanks for taking my question, and congratulations on the corner. I wanted to ask about just working capital, particularly inventory, as we kind of see revenue scale pretty quickly. Is there, you know, 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, you know, limit the ramp. Thanks.

All right. So I'll take the latter first. We believe we have ample capacity to meet this plan or planning. So I'm not too concerned about that. Of course, it's going to be hard work. OSHA did highlight that we're making a lot of progress in the U.S., in terms of production on the drone platforms, Iron Drone and 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. Obviously, we're well capitalized. we will focus at the same time on our cash conversion cycle. So, you know, we'll probably be able to give you more details at that meeting in January. Great. Thank you.

Sure. Thanks, Matt.

And the next question is from Jonathan Siegman from Stiefel. Please go ahead.

Good morning, Anas team. Thank you for taking my question. And 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. I 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 in how you measure performance and balancing the individual units and driving towards success for the integrated whole. Thank you.

Yeah, thanks, John. So you firstly mentioned the speed of the M&A, and, you know, that is – I think that observation is spot on. We've articulated this really as an opportunity, probably a once-in-a-generation opportunity to provide a scaled platform for these important technologies, and I won't belabor that. But yeah, 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'll participate in the upside. So as we grow the business, it's 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 team that we're putting together believes 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, you know, I guess that's really the answer. We're not doing anything unique on that front, I would say. But, you know, I think our team and I think the prospective management teams that we're talking to on the M&A side are excited about building a big company because, of course, they're looking at it as an opportunity to build substantial equity value. So, you know, I think that's going to work out well for us.

Thank you.

Thanks, Sean.

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.