Ondas Inc

Welcome to the ONDIS Inc. Fourth Quarter and Fiscal Year 2025 Conference Call. All participants will be in a 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 and then one on your touchtone telephone. To withdraw your questions, you may press star and 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 periodic SEC filings and in the earnings press release issued on Monday, 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, Anders will refer to certain non-GAAP financial measures. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles. 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. 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 ONDIS. Let me start by setting the stage for today's discussion. Simply put, ONDIS is delivering on the core and 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 build out 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 is a company where strategy is translating into execution, 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, Anberg 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 Andas Networks and then focus on Andas 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, Ashri Lugasi, co-CEO of Andes Autonomous Systems, and Mayor Kleiner, president of OAS, all of whom are quite familiar to you. Neil and I will lead today's presentation and will aim to be efficient with your time. Ashri and Mayor 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 2026, 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 five 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 roadmap. And we are carrying that momentum into 2026 with a high degree of confidence. I'm excited to introduce ONBURG, our European joint venture with Heidelberg, a key step in ONDIS's 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. Anberg is our answer to this market need. This joint venture with Heidelberg, a leading German industrial platform, provides local manufacturing, engineering, and lifecycle support that meet European sovereignty requirements. Heidelberg's established relationships with government and defense procurement channels across Germany and NATO-aligned customers further strengthen our position. By combining Andes' 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. Anberg has already identified strong demand for OAS platforms, particularly in Germany and Ukraine, where requirements for autonomous systems are immediate. Strategically, Anberg enables us to participate directly in European programs as a localized provider critical to winning in this market. Financially, Anberg represents significant upside. While our current European business is growing, our forecasts do not yet include new incremental revenue from Anberg. As ONBURG becomes operational in the coming months, we expect it to drive meaningful growth beyond our existing targets. ONDOZ holds a 51% controlling interest in ONBURG, ensuring we capture the value as the platform scales. So overall, ONBURG is an important extension of our global strategy, localizing our platform, expanding our addressable market, and positioning ONDOZ 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 the 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 Ondas 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 where 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 Worldview. The entire ONDA's leadership team, including Ashri and myself, is excited to partner with Ryan and the Worldview team as we accelerate our systems of systems roadmap. Ryan is a true industry pioneer with critical experience across Raytheon and in situ, as well as serving as the UAS representative on the FAA NextGen Advisory Committee and on the FAA 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 Stratolite 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 ONDOS and excited about working closely with you and the entire leadership team across ONDOS and OAS. 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 Worldview, 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 it 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 stratospheric platforms that can remain over an area of interest for 30 days or more. We do that by using the four 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 stratalites. Stratalites 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. Stratolites fill the gap between those two domains. They can deliver higher 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 stratalites 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 electro-optical 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, from 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 trillion dollar Golden Dome system. We are also actively preparing for the inclusion of our technology in support of active U.S. Department of War 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 ONDOS recognized independently and early. Worldview's vision has been to move beyond a single domain sensing company and build toward a broader integrated multi-domain AI powered ISR architecture. ONDOS has been pursuing a highly complimentary 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 roadmap. It is the combination of two companies that were moving toward the same future from different points of strength. Worldview brings the stratospheric layer and a heritage of persistent sensing. ONDOS brings complimentary 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 timelines. Customers are left stitching together fragments just to understand what is happening, let alone act on it. The operator should not have to care which domain the data came from. The operator should care whether the decision is right, fast, and accountable. By joining forces with ONDOS and through our recently announced partnership with Palantir, we are building a true system of systems, unified intelligence with one operational picture. That means one workflow language and one 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. It allows the portfolio 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 one 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 on DOS brings complimentary autonomous systems and pal tier 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.