Ondas Holdings Inc Stock

Welcome to the Ondas Inc. Third Quarter 2026 Earnings and Business Update Conference Call. [Operator Instructions] Before we begin, the company would like to remind you that this call may contain forward-looking statements. While these forward-looking statements reflect Ondas' 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 Ondas' periodic SEC filings and in the earnings press release issued today, which are both available on the company's website. Ondas 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, Ondas 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 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 conference over to Eric Brock, Chairman and CEO. Please go ahead.

Thank you, operator, and good morning, everyone. We appreciate you joining us today and your continued interest in Ondas. I'm pleased to be joined this morning by key members of our leadership team. Neil Laird, our Chief Financial Officer and I will take you through the formal presentation this morning. Patrick Huston, Ondas COO and General Counsel; Oshri Lugassy, Co-CEO of Ondas Autonomous Systems; Meir Kliner, President of OAS; and Ryan Hartman, CEO of Ondas Sentinel, also joined us today and will be available during the Q&A.

We have a lot to cover today, so we will dive right in. Let's turn to today's agenda. I'll begin with a high-level review of our third quarter performance and the continued execution of our Core+ strategic growth plan. We will also share important context on Regna AI, the new initiative designed to capitalize on our growing expertise in building valuable software tools, leveraging sovereign AI capabilities on behalf of U.S. and allied defense ecosystem.

Neil will then review our third quarter financial results, balance sheet and the investments we are making to support the significant growth we expect for Q4 and throughout 2027. We will then provide a growth and operational update, including commercial momentum, major customer programs, expansion across our 4 strategic market segments and the continued scaling of our global operating platform. I'll close with our updated financial outlook and management priorities for the next phase of Ondas' growth.

We will then open the call for questions. If there are 3 key takeaways we want analysts and investors to leave this call with, they are: first, we are establishing a scaled global business with a strong foundation for sustained long-term organic growth. Second, we have multiple opportunities to drive outsized growth, including ULTRA, IonStrike, Regna AI and others with the potential to meaningfully accelerate our growth trajectory.

And third, we are laser-focused on rapidly scaling production and deployment capabilities to capitalize on accelerating demand for our solutions. And industry fundamentals continue to strengthen, creating what we believe is a compelling opportunity for Ondas investors. During the quarter, we expanded our capabilities across the value chain from complete autonomous systems to mission-critical components and enabling technologies.

The acquisitions of DZYNE and Cyberhawk strengthened our position in U.S. defense and critical infrastructure, adding important technologies, services, customer relationships and growth opportunities. Insignito, Ottopia and Caribou Labs added advanced acoustic sensing, resilient communications, remote operations and navigation capabilities for GPS-denied environments. The acquisition of GATE, together with the pending acquisitions of Stemme and ARAN is accelerating the expansion of our supply chain and production capacity.

Stemme adds airframe engineering and manufacturing. GATE adds mission-critical electronic fuzing and Safe & Arm technologies, and ARAN will add multidisciplinary engineering and high-volume manufacturing capabilities. By integrating these assets, we are addressing supply chain bottlenecks, reducing reliance on third parties and improving product performance, cost, margins and delivery.

We are focused on building the industrial capacity required to deliver for customers at scale and capture this market opportunity for our investors. Execution of our core and strategic growth plan is translating directly into results. Third quarter revenue reached a record $167.5 million, more than 16x the prior year period and nearly double Q2. We expect another significant sequential increase in Q4 with revenue above $250 million.

We are raising our full year 2026 target to at least $550 million and introducing a 2027 target of at least $1.1 billion. That outlook reflects broad-based growth across our core businesses, backlog conversion and emerging platforms moving into scale deployment. Order momentum remains strong. Backlog reached approximately $835 million at September 30, up 36% sequentially and more than 12x the Q4 2025 level, providing meaningful visibility across aerial security, persistent intelligence, precision strike and autonomous ground systems.

We continue to invest in the infrastructure needed to convert that demand into revenue. Q3 included approximately $37 million of discretionary growth investment across corporate development, Ondas Capital, Regna AI and the operating capabilities required to scale production, deployment, field support and sustainment. Importantly, growth OpEx is moderating as revenue and gross profit scale, supporting meaningful operating leverage. With approximately $820 million in cash, cash equivalents, restricted cash and short-term investments at quarter end, we remain well capitalized to execute.

Taken together, these results show that our strategy is working and position Ondas for continued growth through Q4 and into 2027. This chart provides a simple visual of the transformation underway in our financial performance.

As we have highlighted in the past, we believe this is what the early stages of an S-curve adoption cycle should look like. Technology adoption curves are generally not linear. Once platforms are validated, customer requirements are established and programs move from development and testing into scale deployment, revenue can accelerate rapidly.

Our strategy is designed around that dynamic. We are not only expanding the technology portfolio, we are building the production, supply chain, deployment, field support and sustaining capabilities required to support this growth at scale. Importantly, the growth shown here is not simply the result of acquisitions.

Our underlying businesses are also expanding rapidly within the Ondas platform. As the next slide demonstrates, strong organic growth remains a major driver of our financial model and the economic value we are creating. Organic growth at Ondas was 64% in Q3 on an apples-to-apples basis with the prior year. We believe very few companies in our sector are growing at this rate. Importantly, we expect organic growth to accelerate further in Q4, reaching at least 75% year-over-year on a pro forma basis based on our guidance.

Simply put, our model is working. The model begins with strong mission-ready technology platforms in markets with very significant customer demand. That technology and demand are supported by the operating platform Ondas is building, providing working capital, global customer relationships, expanded sales capabilities, production resources, supply chain support and field services. On the right, we show some recent key acquisitions that are growing faster now that they have the benefits of being integrated into the broader Ondas platform. Sentrycs continues to benefit from strong demand for its cyber over RF counter-UAS systems with Q3 pro forma revenue up more than 3.5x year-over-year.

We now expect to achieve our original 2027 bookings target in 2026, supported by strong counter drone demand and new distribution channels. 4M generated nearly 3x its prior year Q3 revenue and is positioned to outperform our original 2026 model by 2.3x, reflecting improved customer access, operating support and Ondas' international reach. Meanwhile, Rotron converted strong Q2 order growth into 250% year-over-year revenue growth in Q3, and Mistral began producing and shipping against the LUS IDIQ, driving 136% organic growth in Q3. We expect this momentum to continue into Q4 and 2027.

This performance is not isolated to one company or market segment. As the data continues to show, Ondas is seeing strong organic growth across multiple businesses, increasingly validating both our operating platform thesis and our execution. We are excited to share some details around Regna AI, our new sovereign artificial intelligence company founded by Ondas in response to one of the most important opportunities in defense technology. That is bringing advanced AI directly into mission-critical operations.

Regna AI develops mission specialized AI models that governments and defense partners can own, control and securely deploy. These models transform sensitive operational data into actionable intelligence, supporting ISR, threat detection, counter-UAS and autonomous mission orchestration. Our approach combines NVIDIA's open weight model ecosystem, providing the AI foundation along with Palantir software platforms, which enable secure integration, training and deployment.

To this, Ondas brings the operational advantage with deployed defense systems and mission expertise around multi-domain ISR, autonomy, sensor fusion and command and control. Our target customers include the U.S. Department of War, allied governments and defense companies seeking sovereign AI capabilities that operate securely across classified environments, sovereign clouds and the tactical edge. We believe Regna AI can be a significant value creator for Ondas' investors. First, Regna AI creates an opportunity to turn a development cost center into a valuable business by leveraging investments Ondas is already making in sovereign AI.

As Regna AI attracts customers and external support as a stand-alone company, we believe our ownership can become an important source of long-term value for Ondas shareholders. Second, Regna AI expands the commercial opportunity beyond Ondas' own platforms. These capabilities can serve governments, defense companies and other technology providers, opening new software and services revenue opportunities. External customer revenue and dedicated growth capital could support a broader development program without relying exclusively on Ondas to fund it.

Third, Regna AI strengthens the core Ondas portfolio. Our deployed systems and mission expertise provide a practical foundation for development, while Regna AI's mission specialized models can advance intelligence, autonomy and command and control across our ISR, counter-UAS and unmanned systems.

The objective is to create value in both directions, a growing AI business and more capable, differentiated Ondas solutions. Ultimately, we believe the future of defense belongs to companies that combine intelligent software with autonomous physical systems. Regna AI positions Ondas to lead in both and creates another powerful engine for long-term shareholder value. This concludes my introductory comments, and I will now hand the call over to Neil, who will review our third quarter financial performance and balance sheet.

Thank you, Eric. The third quarter showed record revenue and represented another important step forward in demonstrating the scalability of our financial model. Revenue increased to approximately $167.5 million, up 100% sequentially and more than 16x the prior year period. Importantly, this wasn't simply acquisition-driven. On a pro forma organic basis, assuming our current portfolio had been owned in both periods, revenue grew approximately 64% year-over-year, reflecting strong execution across our underlying businesses.

Combined with approximately $214 million of new orders during the quarter and $507 million in the first 9 months of the year, we believe these results demonstrate that customer demand remains exceptionally strong across our platform. Gross profit was $36.5 million, while adjusted gross margin, which excludes the noncash items of stock-based compensation expense, amortization of acquisition-related intangible assets, qualifying acquisition-related employee costs and inventory step-up was 34.8%.

As we previously communicated, we expected gross margin to decline sequentially in Q3, reflecting a higher concentration of revenue from lower-margin precision strike programs, including the LUS program at Mistral. Gross margin saw some modest further pressure from temporary factors, including production inefficiencies associated with scaling the LUS program as well as further swings in mix. Operating expenses increased to approximately $226 million from $199 million in the prior quarter.

To better understand the business, we encourage investors to look at our underlying adjusted cash operating expenses, which amounted to approximately $119 million, up from $88.8 million in the prior quarter. This includes normal operating expenses as well as discretionary growth investments to support the continued transformational growth curve we expect over the coming quarters and years. The third quarter saw a moderation in the growth of OpEx despite the addition of large acquisitions such as DZYNE.

In the third quarter, we continue to invest for growth with R&D expense of $61.6 million, up $30 million, sequentially driving future product innovation and integration. Adjusted EBITDA showed a loss of $59.7 million, increasing $13.4 million sequentially. Our OpEx was roughly in line with our expectations, and this higher loss was the result of our temporary gross margin impacts. We expect gross margins to remain in the mid-30% range in the Q4 period due to continued mix of lower-margin revenue.

That said, we expect to rebound to historical trends in 2027, as Eric will outline later in more detail in our outlook section, we believe the combination of higher revenue and improving gross margin and more modest OpEx growth will help us show meaningful operating leverage in future periods. Indeed, we expect a significant reduction in adjusted EBITDA losses in Q4 and a steady improvement going forward.

We have pulled forward our expectation for adjusted EBITDA breakeven on a company-wide basis to Q3 2027 from our prior assumption of Q4 2027 based on our expectations for revenue, gross profit and expense growth. To conclude, we believe we are executing well against our long-term business plan. Although adjusted EBITDA declined in the third quarter, we expect a significant improvement in the fourth quarter and believe we remain ahead of plan on our path to company-wide profitability in 2027.

Turning to the balance sheet, which remains strong and provides us with significant advantages. We ended the quarter with approximately $820 million in cash, cash equivalents, restricted cash and short-term investments compared to $616 million at the end of 2025 and approximately $1.4 billion at the end of Q2. Included in our total assets are investments in unaffiliated public and private companies totaling $65 million. These investments are aligned with our broader platform strategy.

They support key partners, enhance access to critical technologies, improve supply chain efficiency, and we believe will generate attractive returns over time. During the third quarter, we deployed approximately $431 million of cash to complete key acquisitions, which have added significant scale, technology capabilities, talent and growth opportunities and are important elements for our near-term and long-term growth outlook. Our balance sheet allows us to invest aggressively in our operating platform and support larger customer opportunities.

As an example, we saw inventory grow to $111 million from $59 million sequentially, again, to support our growing business. Last quarter, we highlighted that our confidence that the trajectory of the business has never been stronger, our performance in Q3 only enhanced that conviction.

Our focus now turns to capitalizing on the tremendous growth opportunities ahead of us, made possible by the exceptional work our team has done throughout the year to build the foundation, capabilities and market position needed to capture them. Looking ahead to Q4 and 2027, we expect substantial growth to continue with meaningful operating leverage emerging as we scale the business. With that, I'll turn it back to Eric.

Thank you, Neil. As Neil noted, adjusted cash operating expense increased to approximately $119 million in the third quarter, driven by 2 principal factors: First, our strategic M&A program added new businesses to the Ondas platform. These companies bring operating costs, but they also contribute meaningful revenue and gross profit, established customer relationships, contracted backlog and expanding pipelines. We believe these additions materially strengthen Ondas' earnings power and long-term growth potential and should be viewed as investments in scale, not incremental overhead.

Second, we continued investing in the growth platform at both Ondas Inc. and across our operating businesses. At Ondas Inc., in addition to our underlying finance, accounting and governance expenses, we invested $27.6 million in growth OpEx related to corporate development, Ondas Capital ecosystem and partner initiatives and the broader operating platform, including our work with Palantir and initial investments in Regna AI.

In aggregate, the investment in growth OpEx at the Ondas Inc. level was slightly lower than in the second quarter. At the operating platform level, growth OpEx for OAS leadership and infrastructure totaled $9.5 million, up from $6 million as we continued building the leadership and capabilities required to scale. In total, we classify approximately $37 million in Q3 OpEx related to growth initiatives.

These are deliberate, front-loaded investments designed to integrate acquisitions efficiently, expand our global commercial reach, scale supply chain and production and provide the field support, sustainment and services a much larger business requires. We are building the operating platform not for the Ondas of today, but for the significantly larger company we expect Ondas to become.

Apart from planned investment in Regna AI, we expect growth OpEx to continue to moderate in the fourth quarter and into 2027. Because much of this spending is discretionary, rising revenue and gross profit should create meaningful operating leverage as we scale. Let's now turn to our growth and operational update. I will review the continued expansion of our multi-domain platform, recent contract awards and the strong demand developing across our 4 strategic market segments.

We will also discuss the progress we are making to scale ULTRA and IonStrike, expand our supply chain and production capacity and build the global operating infrastructure required to deliver for customers at scale. Ondas has built a deep differentiated solutions portfolio across the 4 strategic market segments shown here: Aerial Security, ISR and Persistent Intelligence, Precision Strike, and Autonomous Ground Systems.

In Aerial Security, we provide technologies to detect, identify, track and defeat threats across the full counter-drone kill chain. Our ISR and Persistent Intelligence portfolio provides multilayer surveillance from the stratosphere through long endurance airborne platforms and down to the tactical edge. In Precision Strike, we are delivering affordable, autonomous launch effects aligned with the growing demand for scalable, mission-ready mass.

And in Autonomous Ground Systems, our portfolio includes robotic ground platforms supporting demining, engineering, logistics, border security and operations in contested environments. Supporting all 4 segments is an expanding portfolio of AI-enabled software and command and control capabilities, the unified command core connecting sensing, decision-making, autonomous operations and mission execution across domains. Across these 4 segments, we are increasingly focused on integrating our technologies and solutions while investing in internal development to expand our capabilities, enhance our offerings and create new opportunities for growth.

Each of these 4 segments addresses significant global markets, supporting a strong, sustainable organic growth trajectory with opportunities for outsized growth that could meaningfully accelerate our business beyond the core. We continue to show solid order activity, highlighted by some of the key awards we have received since June 30, shown on this slide.

This order activity is diversified across all 4 target market segments: aerial security, ISR and Persistent Intelligence, Precision Strike and autonomous ground systems. It also reflects a growing, increasingly diverse set of customers, geographies and mission requirements.

Our newly acquired businesses are contributing important contract wins as we expand their access to customer relationships, partners and sales channels across Ondas. Examples include U.S. Department of War activity involving ULTRA, Dronebuster, and IonStrike, together with significant orders for GATE and Bron.

These wins demonstrate the breadth of demand across both complete systems and mission-critical components. We are demonstrating increasing leverage from our expanded sales organization, customer access, partner network and commercial infrastructure. We are pleased with our progress and remain focused on achieving even greater results.

Our focus is sustaining and accelerating this order capture through the remainder of 2026 and beyond. Here, we highlight our backlog as well as the global nature of our current and future revenue outlook. Our backlog now stands at $835 million and is up 36% sequentially, reflecting both newly acquired businesses in the quarter and strong organic order capture across the Ondas portfolio. Our backlog is diversified across both market segments and geographies, providing meaningful revenue visibility and reducing dependence on any single product, customer, program or region.

That said, we have made it a point to grow the U.S. business given the large long-term domestic opportunity. And that focus is paying off as we highlight here that the U.S. represented more than 50% of total revenue in Q3. We expect to see a growing contribution from the U.S. However, it's worth highlighting that our customer base is more diversified globally than many peers, which provides stability during uncertain budget periods in the U.S.

It's also important to highlight that Ondas' backlog consists of customer orders and awarded programs rather than the broader unfunded opportunity pipeline. Our immediate priority is execution, delivering against this backlog, supporting customers and converting a meaningful portion of these orders into revenue during the fourth quarter of 2026. At the same time, we remain focused on replenishing and expanding the backlog organically through continued pipeline conversion. Despite a large revenue outlook for Q4, we continue to expect our backlog to grow as we exit 2026.

Let me now highlight 2 particularly significant growth opportunities that have emerged from our DZYNE acquisition. Of course, I am talking about the ULTRA and IonStrike platforms, both of which are seeing advancements in customer activities. ULTRA is a low-cost, long endurance intelligence, surveillance and reconnaissance, or ISR, platform that we believe is exceptionally well positioned to address a growing and urgent military requirement. Recent conflicts have exposed the vulnerability and high cost of traditional unmanned ISR platforms with significant aircraft losses, reinforcing the need for more affordable, attritable alternatives.

At the same time, the growing need to operate across greater distances is placing additional pressure on legacy ISR solutions. ULTRA addresses these challenges with approximately 3x the flight endurance at just 1/5 the cost of traditional platforms. Again, 3x the flight endurance at 1/5 the cost. This is compelling, particularly when higher cost legacy systems are seeing survivability issues that are driving the requirement for mixed fleet operations. Increased endurance means fewer aircraft are needed to maintain the same level of persistent surveillance.

Combined with significantly lower acquisition and operating costs, ULTRA offers a fundamentally more attractive economic model. To put that into perspective, at the bottom here on Slide 18, we illustrate the economics of maintaining a combat air patrol or CAP using legacy MQ-9 aircraft versus ULTRA. A traditional MQ-9 CAP requires nearly $200 million in upfront investment with annual operating costs exceeding $50 million. ULTRA can provide comparable ISR coverage for approximately $25 million upfront and $23 million in annual operating costs.

These are extraordinary economic advantages, particularly as the Department of War looks to rapidly replenish and expand ISR capacity while addressing the operational vulnerabilities of legacy systems. For Ondas, this represents a potentially transformative opportunity. We are already seeing demand signals for dozens of ULTRA aircraft with the potential to scale into a substantial installed base, supporting what we believe could ultimately become a $1 billion annual recurring service revenue opportunity. Given the significant opportunity ahead of us, we are taking decisive steps to scale production to meet anticipated demand.

Here, we highlight our recently announced definitive agreement to acquire Stemme, the German manufacturer of ULTRA's airframe and a critical component of the platform. Bringing Stemme in-house will give us greater control over our supply chain, production capacity and the pace of expansion, positioning us to execute against what we believe is a substantial long-term growth opportunity. Importantly, this vertical integration also provides an opportunity to further enhance ULTRA's already attractive margin profile by capturing more of the value within the manufacturing process.

Stemme's existing European manufacturing facility is currently operating at just 25% capacity utilization, providing room to increase production within our existing footprint. In addition, Stemme's type-certified aircraft and established manufacturing processes provide a strong foundation to accelerate production in the U.S., where we intend to establish up to 345,000 square feet of additional manufacturing capacity. We believe we are well capitalized to support this expansion, though may consider opportunities to access nondilutive sources of capital to help fund an accelerated production ramp.

Together, these initiatives position us to scale ULTRA production to as many as 10 aircraft per month by 2028, supporting what we believe could become one of the most significant growth opportunities in our portfolio. Let's turn to IonStrike, our cost-effective kinetic counter UAS interceptor designed to address one of the most urgent requirements in global defense. We continue to advance IonStrike with U.S. government customers, building on the important development and validation work completed with the U.S. Air Force. The market requirement is clear.

Adversaries are industrializing the production of increasingly capable Shahed-type drones-type drones, creating demand for defensive systems that can be deployed in very large quantities. As we have discussed previously, we are pursuing initial commercial orders and can now share that we have submitted a response to a $45 million sole-source RFP, reflecting progress toward operational use and scale deployment. While we are limited in the details we can share, we believe the requirement is urgent.

We are preparing our production base so that we can move quickly if awarded. In addition, IonStrike was recently selected for a $10 million integration order with a new U.S. government customer. This order is related to a new operational environment, and we look forward to sharing more on this as we can. Of course, the growing threat from Shahed-class drones creates an economic challenge as well as an operational one.

Customers need an interceptor that can defeat these threats without relying on weapons, costing hundreds of thousands of dollars per engagement. IonStrike is designed for that mission. It is a fire-and-forget system requires no operator after launch, can be deployed across land, maritime and airborne applications and has a targeted sales price below $50,000 per unit. Cost parity is critical here as is the ability to produce at scale. We are now preparing our production base for rapid scale.

We expect to reach hundreds of units per month early in 2027 and to expand towards thousands of units per month beginning in late 2027. We are also developing IonStrike as a family of interceptors and precision strike systems that can address multiple missions, launch configurations and operational environments, and we look forward to sharing more details on this road map over time. As IonStrike moves from integration into fielded deployment, we believe it can become a meaningful growth platform for Ondas and address a multibillion-dollar annual market opportunity.

Our focus is execution, completing customer integration, converting proposals into production orders and building the capacity required to meet global demand at scale. We have also continued to strengthen the Ondas platform through a series of targeted acquisitions that add important enabling technologies across our major market segments. This slide highlights 4 of those additions.

I want to focus first on GATE and Bron Technologies, which established a strong position for Ondas in the fast-growing electronic safe and arm devices or ESADs, and advanced electronic fusing for precision weapons, missiles and interceptors.

These are highly specialized safety-critical components and qualified production capacity is increasingly constrained across the global precision strike supply chain. Gate brings proven engineering, established customer relationships and a scalable international production footprint, including NATO-based non-ITAR manufacturing through Bron in Poland. Strategically, this acquisition does more than just add an attractive stand-alone business. With Gate, Ondas is now a leading supplier of high-quality and importantly, low-cost ESAD and kinetic systems.

This also ensures we have access to a critical component in a supply-constrained kinetic package and offers significant gross margin capture for Ondas' Precision Strike and Interceptor platforms. The other acquisitions shown here are also important building blocks. Caribou Labs adds resilient positioning, navigation and communications capabilities for GNSS-denied and contested environments. Insignito adds an AI-enabled acoustic sensing layer that can identify and track drones by their unique signatures, further strengthening our counter-UAS detection architecture.

And Ottopia adds proven teleoperation and autonomy software that we believe can accelerate the autonomy path for Ondas' unmanned ground vehicles and heavy combat machinery portfolio. We expect to share more about each of these capabilities in the coming quarters as we integrate them across the portfolio and convert their technology advantages into larger customer solutions and new revenue opportunities.

Before turning to the outlook, I want to highlight that we have established the Ondas Land Systems division within OAS to bring 5 companies together under one strategy with a clear focus on autonomous ground vehicles. The purpose is straightforward to put unmanned systems at the first point of contact, reducing personnel exposure while helping customers carry out demanding ground missions. This is our bots before boots vision and practice. By combining our capabilities in robotics, autonomy, platforms, protection and smart demining, we can deliver more complete solutions tailored to the customers' mission.

Shared engineering and coordinated operations will accelerate development, integration, manufacturing, deployment and support while capturing cost synergies through streamlined operations. This also positions us to compete for larger multiyear defense programs. We can bring a broader portfolio to each opportunity with one coordinated team accountable for delivery -- we are currently tracking approximately $3.25 billion of identified unweighted potential pipeline opportunities for Land Systems through 2031.

We are building this division to turn these opportunities into awarded programs and sustain growth. Let's now turn to our outlook for the fourth quarter and 2027. As we highlighted earlier, we expect a strong finish to a transformational year. We are targeting full year 2026 revenue of at least $550 million, including more than $250 million in the fourth quarter. We also expect order momentum to remain strong and to exit the year with backlog above the $835 million reported at September 30, providing substantial visibility into 2027.

That growth is supported by major programs already underway, including Mistral's lethal unmanned strike program, INDO Earth's combat engineering vehicles and continued global demand across our counter UAS portfolio. Indeed, we see organic growth continuing to be robust and expect at least 75% organic year-over-year growth on a same-store basis for Q4, higher than the 64% we saw in Q3. Looking to 2027, we expect ULTRA and IonStrike to become increasingly material contributors as customers advance and production scales. We are also focused on expanding recurring and repeat revenue across the platform through software, services, sustainment and longer duration customer programs.

Against that backdrop, we are initiating a 2027 revenue target of at least $1.1 billion. That outlook does not include potential acquisitions and assumes organic growth of more than 40%. As revenue and gross profit scale, we expect meaningful operating leverage. As mentioned, we continue to expect the operating platform to achieve adjusted EBITDA profitability in the fourth quarter of 2026. We are also pulling forward the profitability time line for Ondas Inc. and now expect company-wide adjusted EBITDA profitability in the third quarter of 2027, 1 quarter earlier than our previous target. Let me wrap up our prepared remarks before we open the call for questions.

We are seeing very strong demand across U.S. and allied defense and security markets. The capabilities represented across the Ondas portfolio are rapidly moving from development and evaluation into operational adoption. Indeed, they are increasingly essential to the modern mission. Our adversaries are innovating, deploying and industrializing autonomous aerial and ground systems, precision effects, sensing and mission software at scale. The United States and its allies cannot cede that advantage, and we do not believe they will.

Despite the political tensions we see in Washington, across Europe and in other allied capitals, we believe the need to invest in these capabilities has broad and durable support across aisles in Congress. This is a structural multiyear demand cycle supported by operational urgency and increasingly resilient procurement priorities. Ondas has been built specifically for this adoption curve. We have assembled a differentiated portfolio of software-enabled capabilities across aerial security, persistent intelligence, precision strike, autonomous ground systems and AI-enabled command and control.

We continue to deepen and integrate those capabilities while expanding the supply chain, manufacturing, field support and sustainment infrastructure required to deliver reliably at scale. These investments strengthen our position with customers and support the much larger company we are building. We also believe the platform company model is required for our industry to scale. Customers need integrated, mission-ready systems that can be delivered and supported across the operational life cycle. Investors need a financial model that deploys capital efficiently, generates operating leverage and supports sustained investment in innovation and growth.

That is the model we are building at Ondas, a diversified global business with multiple drivers of organic growth, an expanding base of recurring revenue and the scale to efficiently deploy capital and sustain investment in innovation. Importantly, we believe a growing portion of our business will be driven by recurring and repeat revenue streams. This includes software, services and sustainment as well as mission-critical components designed into customer platforms that generate repeat orders and are difficult to substitute.

Together, these revenue streams provide greater visibility, durability and predictability as our business scales. Our focus continues to be on execution, converting backlog, delivering on major programs, scaling production, integrating our technologies and demonstrating the profitable growth our platform model can generate. In closing, I want to restate the 3 main takeaways from today's call, which we mentioned at the outset of our call. First, Ondas is establishing a scaled global business with a strong foundation for sustained long-term organic growth.

Second, we have multiple opportunities to drive outsized growth, including ULTRA, IonStrike, Regna AI and others with the potential to meaningfully accelerate our growth trajectory. And thirdly, we are laser-focused on rapidly scaling production and deployment capabilities to capitalize on accelerating demand for our solutions.

We believe Ondas is positioned to become a global leader in autonomous defense and security technologies and to create substantial long-term value for our customers and shareholders. Thank you again for joining us today. Operator, we will now open the call for questions.

[Operator Instructions] Our first question today comes from Trevor Walsh from Citizens.

I wanted to talk a little bit about ULTRA, if I could. Eric, can you maybe unpack that $1 billion recurring revenue stat that you had on the slide that you talked about in the prepared remarks? And kind of what really does that consist of? And does that -- is that really a U.S. dependent type of number? Or is that broadly for the platform? Just a little bit more color there would be helpful.

Trevor, thank you for the question, and it's an important one. I want to ask Ryan to unpack that for us.

Yes. Thanks, Trevor. I appreciate the question. So if you look at just the global demand for combat air patrols or combat lines with the U.S. Air Force and our allied partners, there's approximately 110 combat air patrols that are deployed globally. And so what we see and what we're experiencing today is an increase in what is what we would call a mixed fleet of systems for combat air patrols. You saw Secretary Meink mention in his speech recently that they've deployed both Reapers and ULTRAs to great effect.

And what he's talking about is that mixed fleet for combat air patrol. And so in seeing that mixed fleet, we're seeing that there is operational utility of having both Reapers and ULTRAs in support of a combat air patrol. And so for Ondas, the ongoing annual cost of a combat air patrol or the revenue for combat air patrol is $23 million. So if you just extend that to less than half of the global combat air patrols, that gets us to $1 billion in sustained revenue on an annualized basis, not inclusive of the acquisition cost of the platform.

I will also add that, Trevor, that's a U.S. number.

Perfect. Yes, that makes sense. I appreciate the explanation. If I could just do one quick follow-up. I understand that the gross margin kind of outlook is kind of the pressure there is extending into Q4 and potentially into Q7. And it sounds like that's more a mix type of outcome that is somewhat out of your control because obviously, you want to just sell what you can get out the door.

But I'm just trying to bridge or marry you pulling forward the EBITDA -- adjusted EBITDA outlook a quarter forward next year. Should we expect gross margins to significantly kind of get back or abate the pressures there and get back to that 40-plus percent range to kind of meet that adjusted EBITDA goal? Is that sort of the best way to think about it as far as the timing of both sort of coming together? Or is there -- am I missing something there?

Yes, good question. So you're right. It was -- there's a combination of mix for sure, but some inefficiencies as we are ramping programs and driving scale. We think both will improve to the upside moving through into and through 2027. And we do have that longer-term target, I'd say, over the next 12 to 24 months to get that into the 45% to 50% range.

So as it relates to the expectations around profitability and being EBITDA positive on a consolidated level, we're just getting increased visibility around our -- the revenue ramp and the gross profit ramp vis-à-vis our operating expenses. So we think we're on track.

Our next question comes from Austin Bohlig from Needham & Company.

Congrats on the solid quarter and strong outlook. Maybe just one on that $1.1 billion guide -- with backlog expecting to grow in Q4, do you guys expect the majority of that to get filled in '27? And if that's true, it leaves like roughly a few hundred million dollars to hit that target. So the $1.1 billion feels conservative. So I'm curious on if you could lay out potential upside scenarios and what that might look like.

Austin, great question. And of course, we're still in 2026. So I want to be a little bit -- I want to defer getting into some more granular conversation around upside. $1.1 billion is a substantial step forward for us, and we do have quite a bit of visibility. And I think that is going to improve this quarter because we do see a strong pipeline and are optimistic about the bookings cadence as we're going through the quarter.

So we do endeavor to give targets that are conservative, and we're working very hard to establish that and sustain that track record of delivering for our investors. So I feel good about the $1.1 billion. And of course, we're going to work really hard to put a higher or to outperform that.

All right. Perfect. And then maybe just one more on the M&A front, but uniquely enough this morning, a public satellite company announced their first acquisition in like the unmanned ground space. And like the whole rationale is they believe space is becoming an important layer within this modern warfare domain. I'm just kind of curious, it feels like a natural extension for Ondas to kind of expand into the space domain. How do you guys view that? And like what would that maybe look like?

Yes. So I think for sure, and we're in the -- we describe our ISR business as multi-domain. And of course, that starts with the stratosphere for us where we bring unique capabilities. And that goes all the way down through, of course, the ULTRA platform, a group five long-endurance drone, group three, two, and one, both ISR and strike. We do have an interest in the space domain, but I do not think it is time for us to unpack that and give an outlook as to how we may approach it. I do not feel it is essential to us or that it is a gap, but it would be an opportunity.

Our next question comes from Jonathan Siegmann from Stifel.

A lot of good news in the quarter. Maybe talk a little bit about the ground vehicle opportunity. Now that it's entering production, can you talk a little bit about what's firmly ordered and the production rate supported in '27? And just how do you reserve for any contingencies related to that steep ramp that you have?

Yes, Jon. So we've got quite a bit going on in our Land Systems business. And as we said today, we've combined that under a single leadership team, and that includes 4M. It includes our Roboteam and Ottopia, Apeiro, as well as INDO Earth. As we're moving into Q4 in the first half of 2027, you're going to see the INDO Earth orders in program ship.

We think that has a possibility of expanding, actually, with additional orders. We see 4M continue to deliver on its land clearance activities, and we actually see opportunities there to have more follow-on orders around major cleanup programs that we've announced in Israel. We think that there's generally a strong demand. I'll add that the Iron-Wave systems have been deployed and have been well received, and we're expecting to grow that business into 2027 as well.

So I don't want to give a specific number on what that looks like for 2027, but I do think it's going to be a big chunk of the mix. And we did share what that looks like in terms of targets in our outlook for the land business.

And then I'll ask just one on budgets just because we're in such a dynamic environment and recognizing there's not a clean answer on some of these things. But just how much of your growth could be dampened if we don't are able to have an extended CR or not be able to pass reconciliation? And then over in Israel, can you give some context on what could change and not change if the U.S. stops supporting funds over there?

Okay. So I'll start with the latter on Israel, and then I'll ask Ryan to share more context on the U.S. market and some of those dynamics you're highlighting. So firstly, we have a very strong foundation in Israel. In fact, none of the business we have today has been funded or is expected to be funded by the U.S. government. So I feel like we have a very good position there. And of course, Israel has had an election and they're forming a new government. We think our business there is very strong.

We're going to continue to invest in Israel security. And Israel, like all the markets we're seeing is undergoing a shift towards unmanned systems, autonomy, robotics. And it's quite clear that Ondas is an important part of that market there. So we're going to continue to invest, and I don't see a significant impact on any pullback in funding from the United States, Israel impacting us. I do think of that as just opportunity.

Ryan, would you share some insight on the U.S. business and outlook? And I'll highlight before you do that the United States is now about half our business, and I think that's going to continue to be the biggest market for Ondas. So Ryan?

Yes. Thanks, Eric. And Jon, thank you for the question. For the work we're doing currently in the U.S., that -- all of that work is either currently in a 2026 budget, therefore, transitioning into a CR at current levels. In addition to that, a lot of the growth that we're seeing is supported by O&M budgets and not new starts. So we feel quite confident that we're isolated from a continuing resolution and that an extended CR is not going to impact the growth that we see in front of us.

I'll also highlight that in a CR, the offerings that we have, and I'll speak specifically to ULTRA, enable the U.S. Air Force to extend the combat air patrols and the combat lines on a global level at a lower cost to the U.S. government.

And so we believe that the O&M budgets will actually go further than they would have otherwise gone in being able to provide that very important capability around the world. And all of our other programs, like I said, are supported with current budgets and O&M.

Our next question comes from Tim Horan from Oppenheimer.

On IonStrike, going from hundreds to thousands in manufacturing, is that relatively linear that scale?

Sure. So we're today shipping against or preparing to ship against the orders that we described on the call, Tim, and those are low rate production. As we're moving into 2027, we have a plan to scale that production. And of course, we'll do that in concert with our customer as we're looking towards reorders. Ryan, would you add anything to that?

Yes. The only thing I'd add is that we have all of the manufacturing footprint that we need to scale it to the levels we're talking about in 2027. We're adding the people resources to be able to support that growth. And we're well aligned with our supply chain to be able to scale at the rates that we're talking about.

So we will spend some more time, Tim, going through the details of the expansion -- capacity expansion for IonStrike as we get more visibility into follow-on orders. So stay tuned.

I mean, can you talk about the demand for that qualitatively? I mean -- and I guess if the demand is there, you're talking about this being at least $1 billion run rate business in a year.

Well, yes, I mean, the demand is massive and there's a massive shortage in interceptors and it's a critical requirement. We know that's the case in Ukraine. We know that's the case in the Middle East as well and the case in Europe. So yes, I think we're in an environment where we're well positioned.

We've got the product that's meeting requirements for this next-generation Shahed, which is a menace in Ukraine and elsewhere. And I think we're actively working on this capacity expansion because we do expect this to become a significant business for us.

And just a follow-up on the ULTRA. I'm just trying to understand ultimately what the overall size of the market could be. I mean, do you think many, many more countries would adopt caps like this? And if you're going to be 1/4 of the total cost or much, much lower cost, do you think the U.S. would adopt a lot more?

We sure do. And Ryan, what would you add to this in terms of the international opportunity?

Yes. So everything that we've talked about thus far is specific to the U.S. We see growing demand in the Indo-Pacific region and in the European market. And the global demand or international demand is about 25% to 30% of the overall demand for combat air patrols. So that's a significant portion of what we see.

Our focus today is on responding to U.S. Air Force demand. And once that's satisfied and we're at a steady rate with the U.S. Air Force, we'll see steady growth in the international market.

Our next question comes from Michael Latimore from Northland Capital Markets.

Congrats on the strong growth here. With regard to Regna AI, can you talk a little bit more about the dynamics around that? What are the sales cycles like there, deployment time lines? And then how do you price it, gross margin, deal size? A little more detail on right now would be great.

All right. Great. Great question. And Ryan, you've been busy on this call. I'm going to ask you to expand on this.

Yes. Thank you. Great question. So I'll start with the sales cycle. What does that look like? So whenever a customer is deploying sovereign AI, there's really 2 elements that are important for them to be able to deploy. The first is the hardware layer. And this is whether it be on-prem or air-gapped sovereign AI.

And so we work with those customers to establish a sovereign hardware environment and then deploy the sovereign AI models, the open weight models on their hardware. So the sales cycle is pretty straightforward. This is mostly software sales with a little bit of hardware infrastructure. And so we expect sales cycles to be measured in single-digit months in most cases, within a quarter.

And then the overall deployment model is once hardware is identified or established for these customers, our job is to deploy engineers to design the overall model architecture for them and the post-training environment and then separately have the researchers that post-train and fine-tune the models based on their mission data. The revenue profile is the deployed engineers plus the researchers and then the compute and storage sales specific to operating their models.

Awesome. Great. And then Eric, you talked about one of the goals is growing the reoccurring revenue over time. Can you just bracket that a little bit more like in '27, what percent of revenue could that be or longer term?

Yes. I can't put any more precision on it today. It's the recurring and reoccurring revenue is a small piece of our revenue stream today. But as the installed base grows and we mature to more systems to systems and software-driven revenues, I think you can see it grow dramatically. So we'll be sharing more updates on that as we see that dynamic play through, but we're very optimistic about it.

Our next question comes from Clarke Jeffries from Piper Sandler.

I was just curious if you could remind us on any significant deliveries that were planned in the ISR segment for the second half of this year. I noticed it's the only category that didn't sequentially grow in the backlog, and it was one of those -- the target revenue expectation jumped to 27% in that category. Just any color on timing of revenue recognition and backlog to revenue transition in ISR specifically?

I think the ISR business is on plan. And I think the dynamic you're talking about is more of other parts of the business growing faster perhaps in terms of orders. As we've highlighted on the call, we're expecting a significant ramp in our ISR, specifically around ULTRA. And we do think the World View business is looking -- we've got significant pipeline opportunities into 2027.

Perfect. And then just talking about these adjusted EBITDA time lines and the ability to pull it forward here another quarter in terms of the overall corporate number. What's making the most difference there? It seems to be a very bullish tone in terms of the bookings and the growth outlook.

But curious maybe under the hood in terms of any kind of efficiency or operating expense management that you're seeing from any of those the Palantir partnership or otherwise, what's making the most difference here?

The biggest difference is just the revenue and gross profit expansion we're seeing in 2027 is significant. We're going from doing over $500 million in revenue this year, and we're funding that business so it can be $1 billion plus next year. So we've made a lot of investments in the last several quarters, specifically to scale the business to handle a much bigger revenue stream, not just in '27, but into 2028.

I'll also add that as we're giving the targets around profitability and EBITDA breakeven, we've been deliberately conservative because we want to get -- again, coming back to my earlier statement, it's important for us to deliver a track record of meeting expectations and even exceeding them. So I think we've got strong momentum into 2027.

We're going to be generating significantly higher levels of revenue and gross profit. And of course, that's what it takes to get the operating leverage, and that's what we've been signaling to bring us and to drive profitability in the business. So it's just that simple.

Our next question comes from Matthew Galinko from Maxim Group.

First question is on, I guess, can you expand a little bit on the funding concept for Regna and expectations for the time line to become a material revenue contributor? It sounds like you're not necessarily including it in your early '27 forecast, but just wanted to level set there.

Yes, sure. So we're not including the Regna financial outlook in our forecast today. So it would be upside. And as we've outlined or highlighted, Matt, we are pursuing Regna with financial partners. And I want to be -- I want to hold off on the details until we're able to complete the conversations with those investors but highlight that the conversations are advanced as with Tier 1 VCs with deep experience in building AI infrastructure and services businesses. And as we secure that funding, we're going to be able to share a lot more about the financial model looking into 2027 and beyond.

Great. My follow-up, I guess, is on working capital and inventory, had a pretty nice build in third quarter and obviously, a pretty significant revenue ramp for '27. I'm curious if you can maybe go into the working capital dynamics that we could expect to see into the fourth quarter and as you kind of pursue that ramp for 2027.

Sure. So yes, we are building inventory and capacity in front of this very steep revenue curve. So we can deliver against that. And I'd expect to see us build inventory during this quarter to support a stronger growth in 2027 as well. And of course, Matt, and we switch to another question, we're working very hard on cash conversion cycles. It's a very big focus internally to ensure we're managing our working capital as efficiently as possible.

Our next question comes from Sameer Joshi from H.C. Wainwright.

I just wanted to understand the cash spend over the next 12 to 15 months. How should we look at it in terms of acquisition budget versus capital expenditures versus just operating costs?

Sure. So I think I'll start first with investing in the business. We have a significant opportunity to do that. And we've highlighted some of the things we're doing specifically on production capacity and supply chains. And I'm expecting us to continue to have that focus. So you'll probably see CapEx move higher, and I'll likely be in a position to give you more details on that as we're in 2027 and certainly by the time we report our Q4 results, but perhaps before that.

And so there is a significant opportunity for us around ULTRA, where we've acquired Stemme to onshore the production capacity in the U.S., which is critically important for the customer, but also in and around IonStrike, where we see, as we've discussed on the call, a dramatic opportunity here to really grow a big business and then IonStrike actually can be a family of systems. So we're exploring that, and I'm hopeful that we can share more details probably early in Q1 next year.

Otherwise, on the acquisition side, we still continue to see a very strong acquisition pipeline. I think our thesis around building operating platforms or having operating platforms be the right model to scale and deliver these unmanned and autonomous systems to the critical markets we're focused on. Our customers are showing there's value in this, the partners, the talent are and of course, the investors are.

So at the same time, thinking about the cash utilization and our acquisition program more broadly, we are going to be very financially disciplined. The cost of capital matters when we're thinking about acquisitions. They all have to be financially accretive to our investors. And that's the measuring stick, right? They have to be financially accretive. And we don't have to do anything today. We have a complete company. We're operational across 4 important domains. We now have a global footprint, and we have incredible talent.

And so we have more than enough internal opportunities coming back to that investment I was just referring to a moment ago to drive growth and operating leverage in the business. So I still believe that the core strategic plan works. But given where we are in this market environment, I think you can expect us to be more moderate and more deliberate in the acquisition program when you're thinking about our use of cash and use of capital.

Just a quick one on 4Q outlook. I think you beat your own guidance and consensus quite handsomely in 3Q. But the 4Q seems to be at the same or similar levels, the 250 plus, $255 around. Was there anything that was pulled from 4Q into 3Q that enabled the beat? Or is our 4Q guidance just being conservative?

So firstly, we didn't -- we don't pull anything forward, right? We have customers who provide orders, they need capabilities, and we deliver against our production time lines. And today is better than tomorrow. That's always going to be the case. And then if you're thinking into Q4, we're just giving a target that we think is achievable, if not beatable, and we think it's a strong performance.

Our next question comes from Max Michaelis from Lake Street.

Congrats on the quarter. Just one for me on IonStrike. Looking at the rest of the market, I know Anduril, Raytheon, Quantum Systems, in a similar space. I mean, can you help differentiate the technology at IonStrike versus these other guys? And then maybe help us out where that $50,000 per unit sits compared to the rest of the market?

Yes, sure. Ryan, I'm going to hand this to you.

Yes. Max, great question. So there's a couple of things that differentiate IonStrike, and I'll get to the price for the system here in a second. But from a capability point of view, IonStrike was designed to integrate with current C2 systems. And then in addition to that, it's not a fire-and-forget system, which is another key differentiator of the system. A customer can either abort or retarget the system to a higher priority target mid-flight using current command and control systems and targeting systems.

From a cost per kill point of view, this is a huge differentiator for IonStrike. The other systems that you talked about are still systems that are rather exquisite and measured in hundreds of thousands of dollars on a cost per system and therefore, a cost per kill basis, whereas IonStrike was designed from the very beginning to be -- to achieve cost parity against the target set.

And in this case, the Shahed 136 class systems. And so both from a capability point of view and from a price point of view, it's clearly differentiated, and we're seeing that in the demand that continues to grow for IonStrike.

And our next question comes from Jon Hickman from Ladenburg.

Nice quarter. Could you -- you just talked about all the acquisitions you've been making. Could you give us some indication of where you are in integrating those altogether and to a point that you'd be -- say you're finished with that?

Yes, sure. So we've made significant progress, and this is something that we work on every day. The key to getting this operating leverage and profitability is being able to deliver our capabilities to customers efficiently. So we're working really hard on building that operating platform.

We've pointed to the investments we've made. Of course, a big part of those investments are, firstly, in leadership where we've assembled an incredible team. And then also, there's the production and delivery capabilities, and we're spending a lot of time sharing with you how we're doing that, and we're going to continue to do that, drive scale in the supply chain, drive scale in the production, drive scale in the field services and sustainment, and that's going to be an ongoing basis. I feel like we're in a really good spot here. We highlighted today that we have created the land services business, so division or segment, and that's going to be where our ground capabilities are delivered.

At the same time, we're also a systems company. So our land groups are working and integrating technologies with other parts of Ondas, for example, the counter drone systems and the kinetic systems. So I think you should expect us to see -- to show you more of that, more of that organization of the company.

And I'll point to another place, Ondas Sentinel, right? We've got World View and now DZYNE under Ryan's leadership. We have an incredible leadership team there, and we're going to market as One Ondas. So again, we've made tremendous progress there. It's going to be a massive focus for us.

And with that, ladies and gentlemen, we'll be concluding today's question-and-answer session. I'd like to turn the floor back over to Eric Brock for any closing comments.

Okay. Thank you. So it was a great call today. We appreciate all the questions and engagement, and we appreciate you joining us. And thank you for your continued interest in Ondas. We're going to get back to work, and we look forward to updating you on our progress. Operator, we can conclude the call.

And with that, we will conclude today's conference call and presentation. We do thank you for joining. You may now disconnect your lines.

Welcome to the Ondas Inc. Second Quarter 2026 Earnings and Business Update Conference Call. [Operator Instructions] Before we begin, the company would like to remind you that this call may contain forward-looking statements. While these forward-looking statements reflect Ondas' best current judgment, they are subject to risks and uncertainties that can cause actual results to differ materially from those implied by these forward-looking statements. These risk factors are discussed in Ondas' periodic SEC filings and in earnings release issued today, which are both available on the company's website.

Ondas 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, Ondas 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 direct comparable GAAP measures is shown in our press release issued 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.

Thank you, operator, and good morning, everyone. We appreciate you joining us today and your continued interest in Ondas. I'm pleased to be joined this morning by key members of our leadership team. Neil Laird, our Chief Financial Officer and Treasurer; Oshri Lugassy, Co-CEO of Ondas Autonomous Systems, Meir Kliner, President of Ondas and Ryan Hartman, CEO of Ondas Sentinel. We have a lot to cover today, so we will dive right in.

Let's turn to today's agenda. I'll begin with a high-level review of our second quarter performance the continued execution of our core plus strategic growth plan and the progress we are making toward building One Ondas. Neil will then review our second quarter financial results, balance sheet and the investments supporting the significant growth we expect in the second half of 2026 and beyond. We will then provide a growth and operational update, including commercial momentum, major customer programs, expansion across our 4 strategic market segments and the continued scaling of our global operating platform.

We will also discuss the integration of our expanding technology portfolio and our progress toward delivering AI-enabled multi-domain systems of system solutions. I'll close with our updated financial outlook and management priorities for the next phase of Ondas' growth. We will then open the call for questions. Let me begin with the operating model behind our strategy.

Ondas continues to execute its core plus strategic growth plan. And to be clear, Ondas is not simply a collection of acquired companies. We are building and operating one integrated global platform, One Ondas. That means assembling mission-ready technologies, world-class engineering talent, experienced leadership teams, customer relationships and operational capabilities and then integrating those assets into a unified growth platform. The value of this model becomes most visible when we combine technologies across domains. We are connecting persistent multi-domain ISR capabilities to the complete detect, identify, track and defeat chain.

In Counter-UAS, for example, we are bringing customers a unique layered architecture that can include passive detection, cyber takeover, electronic warfare, interception and fully autonomous kinetic defeat. These integrated capabilities are designed to protect critical locations from hostile drones ranging from small FPV drones to larger, more sophisticated threats. We are integrating these capabilities through software-defined command and control, enabling customers to operate a coordinated system of systems rather than a collection of disconnected products.

But technology integration is only part of the equation. We are also integrating engineering resources, sales and marketing teams across more than 60 countries, production and supply chain capabilities, field support, training, sustainment and customer service. As we have said before, exceptional technology that is useful, built to customer requirements and operational in the field is essential. Developing that technology is extremely challenging, and we are proud to have operationalized the incredible portfolio we have at Ondas.

With that said, technology by itself is not sufficient to win. Customers in global defense, homeland security, public safety and critical infrastructure markets need partners that can deploy, support and sustain mission-critical systems at scale. That is what One Ondas is all about. It is how we create value for customers, employees, partners and shareholders. It is how we win. And Ondas is playing to win.

The execution of our strategy is increasingly reflected in our financial performance with these KPIs demonstrating the strength and momentum of our business. We delivered another quarter of record revenue, generating approximately $83.8 million in the second quarter. That represents more than 13-fold growth versus a year ago. We expect to sustain this momentum and deliver another significant revenue ramp in the second half of 2026. Based on our results, backlog and current visibility, we are also increasing our full year 2026 revenue target to a range of $525 million to $550 million.

The growth is broad-based across the portfolio, supported by continued strength in our core businesses, the conversion of large orders already in backlog and the transition of several emerging platforms from development and qualification into deployment. Our 2-year strategic program pipeline has expanded to more than $11 billion and our pro forma backlog now stands at approximately $757 million, including design and Cyber Hawk, growing more than 11x during 2026 and providing substantial revenue visibility.

Meanwhile, order momentum remains strong. We have already captured approximately $105 million of new orders quarter-to-date, further adding to backlog during this Q3. At the same time, we continue investing in the operating platform required to support this growth. Cash operating expenses were elevated in the quarter, reflecting the full quarter impact of businesses added earlier in the year, principally WorldView and Mistral as well as approximately $29 million of growth investment across corporate development, on-desk Capital, partner initiatives and the broader operating platform.

We made these investments ahead of the significant revenue and gross profit ramp we expect in the second half and beyond. We expect the growth in these OpEx investments to moderate from here, providing substantial operating leverage as revenue scales. We also remain very well capitalized. We ended June with approximately $1.4 billion in cash, cash equivalents, restricted cash and short-term investments. Even after deploying $325 million for new acquisitions in Q3, we retained significant financial flexibility to support organic growth, scale our operating platform and execute our strategic growth program.

This chart is a simple visual of the transformation underway in our financial performance. Quarterly revenue has grown from approximately $4.2 million in the first quarter of 2025 to $83.8 million in the second quarter of 2026. We believe this is what the early part of the S curve should look like. Technology adoption curves are generally not linear. They are exponential. Once platforms are validated, customer requirements are established, and programs move from testing into scale deployment, growth can accelerate rapidly. Our strategy is designed around that dynamic.

As we execute our core plus strategic growth plan, we are not only expanding the technology portfolio, but also building the operating platform required to support an exponential growth curve across production, supply chain, customer deployment, field support and sustainment. Importantly, the underlying core growth of our businesses remains a major driver of the financial model and the economic value we are creating.

On a pro forma basis, assuming our current portfolio companies had been owned throughout both periods Ondas generated approximately 85% organic revenue growth in the second quarter compared with Q2 2025. That is an important distinction. The growth reflected here is not simply the result of adding acquired revenue our underlying businesses are also expanding rapidly within the Ondas platform. Core organic growth is a theme we will return to throughout today's discussion.

We have strong momentum and are positioned for growth to accelerate further during the second half of 2026 and into 2027. This slide provides additional detail showing the growth model is working. The model begins with strong mission-ready technology platforms in markets with very significant customer demand. That technology and demand are supported by the operating platform Ondas is building, providing working capital, global customer relationships, expanded sales capabilities, production resources, supply chain support and field services.

As mentioned, on a pro forma basis, Ondas delivered approximately 85% organic year-over-year revenue growth during the second quarter. Backlog also continued to grow increasing approximately 33% sequentially from Q1 to Q2 on an organic basis. We continue to see a particularly strong organic ramp across the Ondas Autonomous Systems businesses, Centrix continues to see substantial demand for its cyber over RF counter-UAS systems, with second quarter pro forma revenue up approximately 298% year-over-year.

The Centrix team is performing extremely well, benefiting from the expanding global sales platform, customer access and operating resources available through Ondas. Our success at the FIFA World Cup and recent win with the Jacksonville Jaguars are early signs that Ondas is winning as the long-term investment cycle kicks into high gear. Airobotics also delivered very strong growth, with revenue up approximately 112% year-over-year. That growth was supported by Iron Drone continued customer demand for autonomous drone infrastructure and new integrated systems of systems customer engagements.

Similarly, 4M delivered approximately 258% year-over-year pro forma revenue growth with the capital, customer access, operating support and international reach of Ondas behind it, 4M is expanding its intelligent de-mining and land intelligence business into substantially larger programs. Rotron is proving to be another excellent addition to our portfolio. Rotron captured approximately $34.2 million in orders during the second quarter alone compared with approximately $25 million of expected 2026 revenue we underwrote in the acquisition.

Rotron's international pipeline outside the U.K. is also expanding under Ondas, and we believe its capabilities in Jet Propulsion, precision strike, UAV development and platform commercialization will be meaningful value creators over the coming years. This performance is not isolated to one company or market segment. We are seeing strong organic growth across multiple businesses and the data increasingly validates both our operating platform thesis and our execution.

I want to pause on this slide because it illustrates the Ondas does operating model. At the top is Ondas Inc responsible for capital allocation, corporate strategy, beyond as brand, investor engagement, governance and overall enterprise direction. Beneath that is our share operational platform. This layer provides capabilities across supply chain and production, field support and services, global sales and marketing, government affairs, finance and corporate infrastructure. These shared resources accelerate commercialization, improve execution and allow the specialized technology companies within Ondas to scale more efficiently.

Those specialized companies bring deep domain expertise differentiated intellectual property, exceptional engineering talent, established customer relationships and mission-ready products. We are integrating those capabilities across 4 major high-growth market segments, aerial security, ISR and persistent intelligence, precision strike and autonomous ground systems with AI software serving as a common enabling layer across the portfolio.

Exceptional technology is merely the starting point in these markets. Customers need complete solutions built to requirements, integrated, reliably delivered and supported across the mission life cycle. Partners need a platform to bring technologies to market and pursue larger global programs. Employees need the resources, infrastructure and capital to scale innovation and investors need this model, too. Our shared operating layer deploys capital more efficiently, accelerates revenue, reduces duplication and generates increasing P&L leverage as the platform scales leverage that is fundamental to sustained profitability and attractive long-term returns.

Oshri and Ryan will discuss this model in greater depth later including how we are integrating technologies, pursuing larger programs and scaling execution across the portfolio. As we deploy capital and scale Ondas. One of our most important responsibilities is ensuring we have the strongest, most capable leadership team possible. We have made tremendous progress. Across Ondas, we are assembling a mission-driven leadership team deeply committed to delivering robust operational autonomous capabilities to customers in defense, homeland security, public safety and critical infrastructure markets across the United States, Israel and Allied nations.

I am pleased to welcome David Barnea as President and Chairman of Ondas Defense Limited. David joins Ondas following a distinguished career serving the state of Israel most recently as Director of the Mossad. He brings nearly 3 decades of intelligence, national security and operational leadership experience and intimate knowledge of modern warfare and the current battlefield. David's mandate is to help lead our global expansion, strengthen our relationships with international defense and security customers and advances the integration and adoption of our AI-enabled multi-domain autonomous systems platform.

He will work closely with me, Oshri and the broader leadership team to maximize the impact of our technologies and services across our global customer base. To summarize, our plan is working, and I am extremely proud of our team's performance. We have had a very strong first half and believe we can accelerate this momentum through the remainder of the year. The revenue ramp we expect in the second half is significant and increasingly visible through our backlog, order book and deployment schedules.

Demand remains broad-based and we expect to benefit from major program deliveries and new product adoption cycles across each of our principal market segments. As we convert these orders into revenue, we are expanding production, supply chain, deployment and field support capacity to meet customer requirements efficiently and reliably. In aerial security and counter-UAS we continue to see strong global demand across the portfolio. We expect Centrix' cyber over RF platform to remain a key growth driver as customers increasingly adopt layered multisite counter drone infrastructure.

We also believe in Strike, which came to Ondas through our recent acquisition of Design, is positioned to begin receiving commercial volume orders and initial deliveries during the second half of the year. We see urgent demand for cost-effective kinetic solutions like Ion Strike, capable of defending against increasingly sophisticated Shahed-class drones and coordinated swarms. In precision strike, Mistral is positioned to begin deliveries against approximately $240 million of aggregated orders associated with the U.S. Army LUS IDIQ.

We also expect continued advancement on project break stop, while Rotron ramps production and deliveries against material orders and a growing international pipeline. Across ISR and persistent intelligence, our backlog and pipeline for both Ultra and Stratollite deployments continue to grow. We have been expanding production and operational capacity to support the launch of Ultra programs and the increased adoption of Stratollites for maritime domain awareness and other persistent ISR missions.

In autonomous ground systems, Indoor Earth is expected to begin deliveries during the fourth quarter on the combat machinery program, which has total program potential of approximately $140 million. These programs represent important customer adoption curves. As initial deployments move into larger-scale production and follow-on requirements, we believe they can support meaningful sustained growth across the platform. Our priorities remain clear.

Continue driving organic growth, convert backlog efficiently, leverage the investments we have made in our scalable operating platform and demonstrate the strength of the Ondas' financial model. That concludes my introductory comments. I will now hand the call over to Neil, who will review our second quarter financial performance. Neil?

Thank you, Eric. The second quarter showed record revenue and represented another important step forward in demonstrating the scalability of our financial model. Revenue increased to approximately $83.8 million, up 67% sequentially and more than 13x the prior year period. Importantly, this wasn't simply acquisition-driven. On a pro forma organic basis, assuming our current portfolio had been owned in both periods, revenue grew approximately 85% year-over-year, reflecting strong execution across our underlying businesses and proving out the power of our growth platform. .

With $175 million of new orders during the quarter and continued strength into Q3, we believe that customer demand remains exceptionally strong across our platform. Gross profit increased to approximately $36 million, while adjusted gross margin, a new metric, which excludes the noncash items of stock compensation expense and amortization of acquisition-related intangible assets was 50.4%, relatively stable from 51.5% in the prior quarter despite normal product mix variability.

As we've discussed previously, quarterly margins will fluctuate as delivery shift between programs. We expect some gross margin pressure in the second half due to mix on recently acquired Excess Capacity. However, our longer-term target remains to achieve gross margins in excess of 50%. And Operating expenses increased to approximately $199 million, but more than half of the total consisted of noncash or acquisition-related items such as stock compensation, contingent consideration, revaluation, amortization of intangible assets as well as $4.4 million in acquisition-related transaction costs.

To better understand the business, we encourage investors to look at our underlying adjusted cash operating expenses, which amounted to approximately $93 million during the quarter. This includes normal operating expenses as well as investments to support the integration of recently acquired businesses, continued deployment of Palantir Foundry and Warp Speed, commercialization activities and infrastructure required to support the significant revenue growth we expect over the coming quarters.

Second quarter represented a large increase as we invested ahead of and in support of a transformational growth curve. The important distinction is that the growth of our operating expense will normalize in the third quarter and beyond, while revenue and gross profit are expected to rise significantly, resulting in significant leverage in our model. Given these investments, which are occurring ahead of a broader revenue ramp, adjusted EBITDA was a loss of approximately $51 million during the quarter.

This result was consistent with our expectation that the second quarter would represent the peak in adjusted EBITDA losses. As revenue accelerates during the second half, we expect those investments to begin producing meaningful operating leverage.

Turning to the balance sheet, which remains strong and provides us with significant advantages. We ended the quarter with approximately $1.4 billion in cash, cash equivalents, restricted cash and short-term investments compared to $616 million at the end of 2025. Included in our total assets are investments in unaffiliated public and private companies totaling $70 million. These investments are aligned with our broader platform strategy. They support key partners, enhance access to critical technologies, improve supply chain efficiency, and we believe will generate attractive returns over time.

During the third quarter, we've already deployed approximately $325 million of cash to complete the design and Cyber Hawk acquisitions, both important elements for our near-term and long-term growth outlook. Our balance sheet allows us to invest aggressively in our operating platform, support larger customer opportunities and continue executing our disciplined acquisition strategy from a position of strength. If there's one message we'd like investors to take away from today's call, it's that our confidence in the trajectory of the business has never been stronger. We believe the first half of 2026 has validated the strategic investments we've made over the past year.

We entered the second half with record backlog, accelerating production, strong demand signals across a rapidly expanding product set, and exceptionally strong balance sheet and increasing confidence in our outlook. We believe the foundation is now in place for substantial growth and meaningful operating leverage over the coming quarters. With that, I'll turn it back to Eric.

As Neil noted, Adjusted cash operating expense increased significantly in the second quarter to approximately $93 million. There were 2 principal drivers of that increase. First, our strategic M&A program added new businesses to the Ondas platform. These come with operating costs but also bring meaningful revenue and gross profit, established customer relationships, contracted backlog and expanding pipelines. We believe these additions materially strengthen Ondas' earnings power and long-term growth potential and should be viewed as investments in scale, not incremental overhead.

Second, we continue to invest in the growth platform at both Ondas Inc. and across our operating platform. At the Ondas Inc. level, in addition to our underlying finance, accounting and governance expenses, we invested approximately $29 million in growth OpEx related to corporate development, Ondas Capital, ecosystem and partner initiatives and our operating platform, including our work with Palantir. At the operating platform level, growth OpEx in terms of OAS leadership and operating infrastructure totaled approximately $6 million.

These are deliberate front-loaded investments to ensure Ondas can integrate acquisitions efficiently expand its global sales and marketing reach, scale, supply chain and production and provide the field support, sustainment and services a much larger business requires. We are not building the operating platform for the Ondas of today. but for the significantly larger company, we expect Ondas to become. We believe we are well on our way driving substantial growth, generating increasing operating leverage and building a large and profitable global company over the next 12-plus months.

Much of our growth OpEx is discretionary, and we expect the rate of growth in these expenses to moderate from here as revenue and gross profit continue to scale. Let's now turn to our growth and operational update. Oshri and Ryan will cover our customer engagement, expanding pipeline and major programs, along with the continued integration of our businesses under the One Ondas' operating model. They'll also address the global scale we're building across sales, partnerships, supply chain and field support and the integrated multi-domain systems of systems platforms we're bringing to market where software-enabled integration is delivering broader, more valuable customer solutions.

Before I hand over to Oshri, I want to highlight an important addition to our advisory board, and that is General, Charlie Flynn, who joined the Ondas Advisory Board earlier this month. General, Flynn recently retired from the U.S. Army after 39 years of distinguished service. A 4-star general, he most recently served as Commanding General of U.S. Army Pacific and previously as the Army's Deputy Chief of Staff for operations, plans and training. General Flynn is well suited to help Ondas navigate the U.S. Department of War and Allied Ministries of Defense. Refine our multi-domain ISR and autonomous systems road map and position our platforms for broader operational adoption.

He brings exceptional experience, judgment and relationships to Ondas shares our mission and understands the urgency of delivering advanced autonomous capabilities to the United States and its allies. I'm grateful that Charlie has chosen to support Ondas, and we look forward to his contributions as we continue building and scaling the company. With that, I'll hand over to Oshri to discuss our growth and operational progress.

Thank you, Eric. Ondas has built a deep differentiated solutions portfolio across 4 strategic market segments: Aerial security, ISR and persistent intelligence precision strike and autonomous ground systems. In aerial security, we provide technologies to detect, identify, track and defeat threats across the full counter drone kill chain. Our ISR and persistent intelligence portfolio provides multilayer surveillance from the stratosphere through long endurance airborne platforms and down to the tactical edge.

In precision strike, we are delivering affordable autonomous launched effects aligned with the growing demand for scalable, mission-ready mass and in unmanned ground systems, our portfolio includes robotic ground platforms supporting, de mining, engineering, logistics, border security, and operations in contested environments. Supporting all 4 segments is an expanding portfolio of AI-enabled software and command and control capabilities, the unified command core, connecting sensing decision-making, autonomous operations and mission execution across domains.

This is central to our strategy. We are increasingly able to offer customers integrated systems of systems, solutions rather than stand-alone products. Our core technology platforms are mission-ready and operational and we are building increasingly mature customer relationships as we demonstrate both our technology road map and our ability to manufacture, deploy, sustain and support these systems in the field with excellence and its scale.

That operational credibility is reflected in the representative customer base on this slide. Across the United States, Ondas supports customers, including the U.S. Air Force, Army, Navy, Special Operations Command, Department of Homeland Security and NASA. Internationally, our customers include the Israel Defense Forces in MAFAT, the Australian defense forces, the Japan self-defense forces, the Royal Thai Army and the Dubai police, among others. We also serve major critical infrastructure and industrial customers, including PG and E, Southern California, Edison Shell, Chevron, National Grid and Reliance.

We have worked hard to earn this organization's trust, and we are extremely proud of these relationships. That trust is built through technology performance, operational reliability, successful delivery and support in demanding real-world environments. Our strategy is focused on increasing Ondas relevance and mind share within these customers expanding from individual technologies and initial deployments into broader, integrated long-duration programs.

We believe that will support an exceptional market position for Ondas as a trusted global solutions provider and lay the foundation for the large durable business we intend to build. Our expanding technology portfolio, broader customer access and increasing operational maturity are translating into a rapidly growing pipeline. Our 2-year strategic program pipeline now exceeds $11 billion, up more than 2.5x since our last update in May.

This pipeline includes many dozens of program submissions globally and is robust across the major geographic markets in which we operate. Recent acquisitions, particularly design contributed important new platforms, customer relationships and program opportunities to this pipeline. Equally important, the pipeline is also expanding organically on a same portfolio basis. That organic growth reflects the scaling of Ondas' direct sales and marketing organization deeper engagement with existing customers and the growing number of distribution and strategic partners, extending our reach.

Ryan will discuss that commercial infrastructure shortly. The size, breadth and geographic diversity demonstrate the expanding relevance of our portfolio and the scale of opportunity now available to Ondas, more important than pipeline size is our ability to convert opportunities into programs, which we are increasingly demonstrating the programs highlighted on this slide, span border security and smart mining, military engineering vehicles, lethal unmanned systems, autonomous UAV swarms, long-range precision strike, stratospheric maritime surveillance and contested logistics.

These are meaningful programs, some of which have potential values of upwards of $1 billion in size. Looking forward, we see a strong near-term capture pipeline and expect additional strategically important awards during the second half of 2026. Those opportunities include ISRT programs led by our ultra long endurance aircraft, kinetic counter UAS programs involving iron strike, persistent stratospheric ISR programs, and additional opportunities across our unmanned ground vehicle portfolio.

Another important example was the digital back program we announced this week, whereby Ondas is providing the Israeli MOD with a next-generation one-way attack system. As we deliver against our existing backlog and pursue these new programs, we are deepening critical relationships across the U.S. combatant commands, NATO and allied militaries and the Israel Defense Forces. These relationships are increasingly focused on broader mission requirements and integrated solutions not simply an individual platform purchase.

That shift positions on us to participate in larger longer-duration programs and deliver more value across the customer mission. To reinforce our ability to convert pipeline into orders, this slide highlights selected commercial activity since April 1. As demonstrated, we are seeing a strong order cadence with an increasing number of large deals, which have continued into Q3. This order activity is diversified across all 4 target market segments, real security, ISR and persistent intelligence, precision strike and autonomous ground systems.

It also reflects a growing increasingly diverse set of customers, geographies and mission requirements. This demonstrates the leverage we are beginning to realize from our expanded sales organization, customer access, partner network and commercial infrastructure. We are pleased with our progress and remain focused on achieving even greater results. Our focus is sustaining and accelerating this order capture through the remainder of 2026 and beyond.

Lastly, before I hand over to Ryan I want to provide more detail on our backlog. Our pro forma backlog at June 30 was $757 million. That represents an increase of approximately 66% sequentially from the $457 million of pro forma backlog at the end of the first quarter. The increase reflects both the newly acquired businesses and strong organic order capture across the existing Ondas portfolio. As Eric mentioned earlier, with over $100 million in orders Q3 to date, our backlog is continuing to grow as well.

Our backlog is diversified across our 4 market segments and geographically providing meaningful revenue visibility and shows demand is not dependent on a single product, customer program or region. Our immediate priority is execution delivering against this backlog, supporting customers and converting a meaningful portion of these orders into revenue during the second half of 2026. At the same time, we remain focused on replenishing and expanding the backlog organically through continued pipeline conversion. With that, I will hand over to Ryan.

Thank you, Oshri. Ondas has made tremendous progress building the global operating platform required to support our rapidly expanding business. As we scale, it is critical that we do so under a One Ondas strategy. We are not a collection of independent companies. We are integrating our talent, technologies, customer relationships, infrastructure, and operating capabilities to leverage the considerable resources we have assembled across the organization.

The benefits extend across every major aspect of our business, sales and marketing, supply chain and production field support, sustainment and services, engineering and product development, technology integration and finance and accounting. Today, Ondas operates in more than 60 countries through 25 physical locations with approximately 1,700 employees around the world. This footprint provides the local market knowledge and customer proximity to compete globally while letting our businesses draw on shared expertise and capabilities across the broader Ondas platform.

This scale strengthens our ability to pursue and deliver larger programs, expand production, deploy systems more rapidly and provide customers the reliable field support and service they require. Our footprint continues to grow, but scale itself is not the objective. The goal is to make every Ondas business more capable, more efficient and more valuable as part of an integrated global platform. We believe this One Ondas operating model will support faster growth, stronger customer outcomes and increasing operating leverage as the business scales.

Having significantly expanded our global footprint through both organic growth and strategic acquisitions, our focus is now on scaling the operating platform. We're building the infrastructure required to support a much larger enterprise across manufacturing, commercial operations, partner networks and global facilities we've substantially increased capacity and reach over the past year. We're deliberately building an organization that can support growth at scale.

We are creating the operational foundation needed to serve more customers, execute more programs and deliver across a broader set of mission requirements than ever before. That's where our Palantir partnership becomes especially important. Foundry is helping us establish a common operating framework that connects data, workflows and decision-making across the enterprise. It gives leadership real-time visibility into operations and lets teams coordinate across manufacturing, supply chain, flight operations and finance.

As we integrate acquired businesses and expand our capabilities, this infrastructure becomes a powerful force multiplier, helping us scale efficiently while improving execution across the enterprise. As we've been building the foundation, we're also accelerating integration and quickly realizing value. One of the biggest challenges in any acquisition strategy is integration. Historically bringing together systems, processes, operational data, supply chains and business functions can take years.

Our integration strategy, coupled with our Palantir partnership, fundamentally changes that dynamic. Foundry dramatically accelerates integration, allowing us to bring newly acquired organizations into the Ondas ecosystem in a fraction of the traditional time line. The impact extends beyond software deployment. Faster integration means faster visibility into operations, faster standardization of processes, faster collaboration between teams and ultimately, faster realization of the value from our acquisitions.

We believe this capability represents a meaningful competitive advantage, allowing us to rapidly transform acquired technologies, talent and operations into a unified enterprise platform capable of operating at significantly greater scale. Ultimately, Foundry is becoming the operating system that enables Ondas to move with speed while maintaining the agility to innovate and grow. We have made significant progress, translating capabilities and next-generation solutions as we operationalize our system of system strategy. First, our Iron Wave product line is not only operational but being fielded by a customer with very strong performance. Iron Wave provides forward-deployed aerial and ground-based ISR capabilities through an integrated platform architecture designed to support mission execution at the tactical edge. This is another important step in expanding our ability to deliver multi-domain solutions to customers.

Second, we're beginning to see the real benefits of combining the technologies acquired across the Ondas portfolio. A strong example is the effort combining design Sawtooth counter-UAS technology with Centric cyber over RF capabilities. This unified solution will soon enable a more complete detect, identify and defeat capability, bringing multiple layers of sensing, electronic effects and command and control into one platform.

We believe this integration can create a highly differentiated counter-UAS capability that addresses a rapidly growing market requirement and demonstrates the value of our systems of systems approach. Finally, I'd like to update you on SkyWeaver, our Edge AI platform being developed with Palantir. Last week, we successfully conducted both ground and aerial testing of the SkyWeaver platform validating key aspects of the architecture and providing a clear path toward final development and broader operational integration.

SkyWeaver is designed to serve as a unifying intelligence layer across the Ondas portfolio, enabling operators to ingest, process and act on information for multiple domains in real time. As it matures, we believe it will become a foundational capability supporting true system of systems operations across air, ground and future mission environments.

Taken together, these developments reflect our broader strategy, integrating advanced technologies, accelerating innovation through software and delivering multi-domain operational capabilities that help customers make better decisions when every second counts. With that, I'll turn the call back over to Eric.

Thank you, Ryan. The work Ryan just described, embedding AI-enabled command and control across our platforms is central to how we differentiate our systems of systems offerings as we scale. Let's now turn to our outlook for the second half of 2026 and the priorities guiding the next chapter of Ondas' growth. As highlighted throughout today's presentation, Ondas has transformed its business and build meaningful scale. At the same time, we're scaling the operating platform to commercialize and deliver these technologies, globally improving capital efficiency, strengthening unit economics, accelerating delivery and supporting the much larger programs we're now pursuing.

The opportunity ahead requires us to keep scaling and management is focused on 4 priorities: First, commercial scale, converting our backlog and pipeline, expanding our global reach and turning initial deployments into recurring long-duration programs; second, operational scale. Strengthening shared capabilities across the platform, expanding global manufacturing capacity and driving consistent execution as volumes increase. Third, AI and innovation, embedding agentic AI, autonomy and advanced software more deeply across the portfolio to deliver integrated software-defined multi-domain solutions rather than stand-alone products.

Fourth, corporate development, disciplined portfolio expansion through strategic acquisitions, technology partnerships, including our work with Palantir and further expansion into key global markets. These priorities reinforce one another converting the demand we're seeing into sustained revenue growth, stronger operating leverage and long-term value for our customers and shareholders. Against that backdrop, we are increasing our full year 2026 revenue target to between $525 million and $550 million. At the midpoint, this would represent more than 10x Ondas' 2025 revenue and greater than 30% organic growth on a year-over-year pro forma basis.

For the third quarter, we expect revenue of between $140 million and $155 million. At the midpoint, that represents approximately 73% sequential growth and greater than 30% organic growth year-over-year on a pro forma basis. Clearly, our outlook implies another significant sequential ramp in both the third and fourth quarters. We believe we have meaningful visibility into that ramp through our backlog and rapidly expanding pipeline.

Importantly, we expect growth to remain broad-based across market segments as depicted in this pie chart. Several major programs already in backlog are also expected to contribute meaningfully during the second half. We are beginning volume shipments against more than $240 million of orders captured under the U.S. Army's $982 million lethal unmanned strike IDIQ. We also expect growing contributions from Ultra and Iron Strike as those platforms begin their adoption curves and volume deliveries during the third and fourth quarters.

Similarly, Indo Earth is expected to begin delivering against the $140 million combat engineering vehicles program announced earlier this year. As Neil discussed, our first half cost structure reflected substantial front-loaded investment in the operating platform required to support this growth. As revenue and gross profit scale, we expect adjusted EBITDA losses to narrow in the second half beginning in the third quarter, while we continue investing in the opportunities ahead.

We see upside to our previously announced adjusted EBITDA profitability objectives and are pulling forward the time line by 1 quarter. We now expect our operating platform consisting of Ondas' Autonomous Systems and Ondas Sentinel to reach profitability in the fourth quarter of 2026. And for Ondas Inc., to reach company-wide adjusted EBITDA profitability in the fourth quarter of 2027. Finally, if we execute against the planned fourth quarter ramp, we expect to exit 2026 at $1 billion in annualized run rate revenue.

Indeed, we are tracking well ahead of our 2030 target of $1.5 billion in revenue by perhaps a couple of years. We have significant work ahead, but the strength of our backlog, the breadth of our pipeline and the increasing scale of the operating platform give us confidence we can sustain momentum through the balance of 2026 and into 2027. Let me wrap up our prepared remarks before we open the call for questions. We believe Ondas is positioned to win in large and expanding defense and security markets. We have built a differentiated portfolio across 4 strategic market segments, supported by growing backlog and commercial momentum, a global customer base, strategic partnerships and an increasingly integrated technology and operating platform.

Most importantly, we believe we have a clear path to profitable, scalable growth. and we plan to demonstrate that operating leverage as we move through 2026 into 2027. Our focus now is execution, converting backlog, delivering on major programs integrating our capabilities across the platform and realizing the operating leverage inherent in the model. We believe these assets, technologies and execution capabilities position Ondas to build the global leader in autonomous defense and security technologies and create substantial long-term value. Thank you again for joining us today. Operator, we will now open the call for questions.

[Operator Instructions] Our first question comes from Austin Bohlig with Needham.

Congrats on the great results and solid execution. I guess I just wanted to dig into the big uptick in kind of the pipeline opportunity you're going from about $4 billion to $11 billion. Was curious on if you could maybe elaborate on like what is included in the DZYNE acquisition, but then also what was new incremental organically? It looks like APAC saw a really big uptick in this pipeline.

Yes. Austin, thank you. So the uptick in our strategic pipeline is really broad-based across the 4 market segments we're active in. And as you can see, it is also a broad-based regionally design and certainly brought quite a bit on the ISR and counter drill systems in particular. In Europe, we're seeing strength across segments as well. I highlight what we're seeing with unprecision strike with Rotron and we think these are also very relevant. And we're seeing demand in Asia Pac as well. .

I do want to highlight, I'll come back to General Flynn has joined us. He is -- part of his mandate is to help us penetrate and serve the Asia Pacific region. So we think that's going to be supportive and that's pulling through this pipeline.

Awesome. Well, and then maybe just one quick follow-up. So I appreciate the color on kind of the pro forma organic revenue in the quarter, 85%. And I believe for the full year, you said it will imply around 30% organic growth. I'm just kind of curious if you can maybe -- is that an apples-to-apples comparison between the 2? Or does that 30% number imply something else?

Well, clearly, as we're moving through the year into 2027, the base we're comparing to is growing. So what I'm seeing from here is a 30% to 40% growth level across the portfolio. Of course, some of the systems in markets we're in will grow faster than others. But I think it's fair to say that we're seeing underlying demand in adoption curves across the board. And that's the context I can share. So if you're thinking about the 2027, there was an other metrics that would be...

Okay. Yes. And I guess as my quick follow-up was. So as we think about 2027 like, is this kind of 30% revenue CAGR something that's sustainable? Or how should we be thinking about growth as we enter next year?

I think it is sustainable. And I'd also add that we have some very significant platforms that are really just beginning their adoption curves. One thing you've seen it on us over the course of 2026 is that the frequency and size of the orders we're capturing has been growing. And I think that's going to be the case as we're moving over the next 3, 6 to 12 months. So the growth rates we're talking about, I think we're trying to achieve higher growth rates, but 30% to 40% would be very attractive and strong performance, all the same.

Next question comes from John Siegmann with Stifel. .

Congratulations on the backlog in revenue. Just maybe one question on the corporate investments. I know, Eric, you mentioned these are onetime in nature. Just -- and you're confident you're pulling forward the EBITDA targets next year. But -- are these -- it was unclear to us if these costs will scale down on a dollar basis or a percentage basis? Just maybe you can expand a little bit more on what you're actually investing given it diverges from your confidence next year?

Yes, sure. Thanks, Jon. So I think the level of spending on the Corp Dev and Ondas Capital or partner programs is probably a steady state, at least for the next 6 to 12 months. we may see that moderate -- we're certainly going to see it moderate and we potentially could see a decline into 2027. At the same time, we do believe we're going to grow -- we're growing a substantial business. And those investments are really designed to make sure that we're capturing market position in a market we think has a very strong growth curve over the next 5 to 10 years. So I think you're going to see the operating leverage from Ondas on strong revenue growth and gross profit generation.

The next question comes from Scott Searle with Roth Capital.

Congrats on the momentum that you continue to build with the M&A opportunities. Eric, this was sort of answered in the opening remarks. But I want to dive in a little bit more in terms of continuing to build the systems of systems and multidomain approach. Now that's been unified with the SkyWeaver platform. How is it really changing the level of engagement with government agencies and potential customers out there. What's built into the pipeline when you look at that huge $11 billion ramping up from $4 billion, I think, prior quarter.

And when do we start to see some of the conversion of these, I'll call them larger multi-diverse multi-domain sort of opportunities? When does that start to transition into the P&L? And then just a real quick one, follow-up on the financials and OpEx, given the time lines for the closure of design and Cyber Hawk, how should we be thinking about normalized OpEx as we're exiting the fourth quarter of this year?

Sure. So let me take the last one first. So clearly, adding design in the Q3 P&L will present a step-up in operating expenses. At the same time, that's coming with higher revenues and gross profit, and that's -- when we talk about our outlook for both the top line and the operating leverage that's reflected the expectations around design and the contribution to the P&L over the next 6-plus months is reflected in that outlook.

So we do expect operating leverage and designed to provide operating leverage on top of that. In terms of customer engagement, importing pipeline, we certainly see a lot of receptivity to the system of systems, but of course, it's not just that. Ondas and companies like Ondas becoming platform companies, where we can deliver the technologies and the road maps and start to add more and more autonomy to the unmanned operations. So when we're seeing customers, they really like our technology road map and capabilities, they're also very excited about the financial strength, the ability to energize supply chains and ability to deliver in the field and support and stay systems in the field.

So what I'm seeing is that we're bringing the talent together, we're able to bring the technologies together that the customers are very receptive to that because you're seeing a company like Ondas step up and be able to be a long-term partner in critical technologies that are really essential to securing our country. Ryan, can you add -- would you add anything to the systems system, SkyWeaver, in particular and how that's impacting conversations in terms of us growing.

Yes. Thanks, Eric, and thanks, Scott, for the question. I'd add 2 things. As it relates to the pipeline, how you view SkyWeaver in that pipeline. There's 2 things that I would add. First is through the addition of SkyWeaver into our platforms, we're increasing the probability of when for programs that need to be connected into the customer C2 systems and through the ability to do mission autonomy.

And then the second thing I would add is that it enables an increase in cross-selling. So when you have a stratospheric balloon with SkyWeaver, that can be connected to an Ultra in the Group 5 UAS space and they can be collaborating on a mission. It just increases the ability to sell stratelites where there are ultra customers or vice versa and in our customer engagements, those are exactly the kinds of things that they're looking for is the ability to autonomously connect our platforms and provide a greater level of mission autonomy. Operator?

Timothy your line may be muted.

I'm sorry, I didn't hear the question. I apologize for that. Eric, you've put together incredible world-class set of physical AI assets and software Board and management, the pipeline is kind of scared to execute on. And I know you're very focused on it. Ryan, you did touch on this, but on Slide 9, you talked about the operational platform. Can you give us -- and I know you're saying you're integrating these companies quickly than basically most kind of roll-ups to work. Can you elaborate on how you've built out operational platform? I know you said Palantir partnering there. What cloud are you using? How much is AI involved? How quickly can you kind of integrate these companies together? Any more color there would be very helpful.

Yes, sure. So just first, Tim, we're very deliberate in building out a scalable operating platform, and I do bristle a bit at the term roll-up because what we're doing is combining exceptional technologies, adding value across domains. And then we're doing that, we're investing in the operating platform which is, first and foremost, a people process, right? So we've added incredible leadership. You've seen over the past 12 months with Oshri Lugassy coming on in his critical role partner with Meir and many, many leaders inside of Ondas. More recently, Ryan Hartman and Matt McCue have joined, and they both have experienced leading large organizations. And of course, we've also added David Barnea to help us globalize the business.

So leadership is really, really essential. On the technology side, I will ask Ryan to expand upon what we're doing with Palantir. Maybe he can be more specific on some of the technical aspects of it as well. So Ryan.

Yes. Thanks for the question. So there's a couple of things we're doing. So a lot of the integration is built on Foundry and work speed. And so we have worked with Palantir to design AI agents, have rewrite capability into ERPs, into MRPs and material planning systems into inventory systems and financial systems. And ultimately, what that enables us to do is have a unified picture of the businesses and create efficiencies through supply chain and manufacturing processes and then even doing things like building AI agents to merge policies.

So we can merge a policy in a couple of minutes versus days and weeks or teams to write new policies or adopt policies. All of this that is built on DevCloud in Microsoft Azure. So we're staying compliant with our security requirements and legislation related to having our facility clearance licenses and CMMC Level 2s, et cetera. So yes, it's largely based on and the ability to use AI to create a common operating picture. And over time, we'll start to degrade or sunset some of the legacy systems in the background, but we won't have to have more of them because we've created a common operating picture built on balance foundries.

I mean, Ryan, how mature is this and how much better can you get? Like when did it really become operational?

So you did some of the first tools became operational about a week after WorldView was acquired by Ondas. So we started there. We built the infrastructure, the first thing we built was an inventory management tool than a supply chain tool and then started to build out some of the other tools. So all of the tools that I've mentioned are operational today. We're actively using them to integrate design and WorldView to start with. And then we'll be adding additional tools. But everything I've mentioned is already operational and has been for months.

So Eric, lastly, do you have a sense of how much you've improved revenue growth or margins for portfolio companies?

We've got underlying growth rates that are extremely high adoption -- multiyear adoption curves that are really just launching now. So I don't necessarily see us improving them as much as unlocking them, right? We're putting the infrastructure that can drive the adoption, support the adoption of it is a multiyear cycle on everything we have in our portfolio. So that's the context I would share.

The next question comes from Clarke Jeffries with Piper Sandler.

One thing that stands out is these comments around momentum accelerating in the second half of '26 as deliveries are ramping on counter drone, ISR, precision strike I wanted to ask what the expectations are on precision strike versus ISR in the second half and maybe specifically a little bit of color on what's organic in the sequential ramp in Q4. You called out some lease all unmanned systems deliveries in the second half and into starting in Q4, but wondering if you could put a little bit more color on maybe the shape of the curve for that lethal Unmanned Systems segment and if that's a big portion of the ramp to Q4? And then 1 follow-up.

Sure. So the less program was first captured by [indiscernible] late last year was the fourth quarter, I believe, and since that time, they've been preparing and energizing the supply chain and moving forward on production and the things they need to do to turn orders into deliveries and we feel like we've made quite a bit of progress on that. I'll point to just in the last week or so, a couple of weeks, I think it was, we saw an additional order on that IDIQ.

So clearly, the systems are in demand, and we're working through now, as I said, scaling production so we can begin commercial deliveries in Q3 and Q4 and I think we're going to see that program continue -- deliveries on that into 2027 as well. I don't want to put a number on it, and I also don't want to shape the quarters around it because as we're doing this, we can't -- putting a stick in the ground as to when we'll -- the deliveries come and what quarter they're in is hard to say at the moment.

At the same time, the demand here in our growth is broad. So we feel good about what we're talking about in the second half, but the less program will be a material part of it, of course.

Yes, certainly. It seems like the market is accelerating in some of these core programs and we're sort of gauging the ramp that's coming over the next 12 months. Just on...

I'll add to that. So clearly, on the counter drone and precise strike, the demand is significant, and I think this is going to be over really the foreseeable future. we came into -- or as you've seen with Epic Fury and the conflict in the Middle East and Italy and Ukraine strike and counter drone, they go hand in hand, and we just have not built enough inventories here. In fact, on a sustainable basis, we're going to have to have much larger inventories of these technologies. So we're getting ready, not just in the second half here, but in 2027 beyond these are important categories for onto. .

Yes, certainly. And that was my follow-up question. Just on the $105 million of orders quarter-to-date, there's even a mentioned $90 million of proposals on the loan insurance ISR segment and just appreciable to me that you have $300 million tied to Precision Strike $258 million tied to ISR, over 70% of backlog to these 2 categories. Is the order pipeline pretty similar to that? Is it consistent? Or are there any other segments that are disproportionately adding to the kind of the quarter-to-date volume of orders?

Yes. Clark, it really is broad. So it's I think, for our platform technologies, the underlying growth is just very strong. And it's not any single platform that's going to drive our success. .

The next question comes from Michael Latimore with Northland Capital Markets.

Great. So on the -- just on the supply chain, how is the health of the supply chain? Are there any constraints you're seeing in any categories? And then second, with Cyber Hawk buying into the kind of critical infrastructure space, commercial relative to defense. Is that something that you might expand on going forward, doing more acquisitions in the kind of the commercial space?

So supply chain and the industrial, let's start with industrial. Yes, we do see Cyber Hawk as a platform company that we can build around and we're seeing and they came with quite a bit of a pipeline in terms of strategic options or opportunities. And of course, Ondas has been active in these markets as well. So I do see the Industrial segment for us has been important to build and I see the opportunity is here.

On the supply chain, we were doing all the hard work to energize supply chains, particularly in the new programs that we're going to see options. So I highlight what we're seeing with long-endurance ISR as well as Counterstrike, with Design. We talked a bit about Mistral in their supply chain work and the production ramp they're preparing for, so we've got challenges as a question are not unique to Ondas, but we do think we've got -- we put the strategies and capacity to fulfill what we're trying to do over the course of the year into 2027 and Mike, I think we're going to have a regular conversation around this each quarter because the industry is growing a lot, Ondas is growing a lot.

And we have to, as an industry, build ecosystems around this and build scale. And we think that comes back to the thesis and the philosophy on how Ondas is building a scaled platform. We think we need more of this. And we also think we need that on the vendor side as well.

The next question comes from Amit Dayal with H.C. Wainwright.

The main question I guess I have right now, Eric, is just around what's driving the M&A strategy from this point forward? Are you still looking to fill maybe gaps in the portfolio or is it more revenue-oriented? Just any color on that would be helpful.

Sure. So firstly, I don't see gaps on our portfolio, but I do see quite a bit of opportunity to deepen each segment we're in. And the opportunity set for strategic acquisitions remain strong, disciplined. It's really important to drive our strategic program along with our financial model. These deals have to be accretive and they have to strengthen the operating platform in parallel and advance our objectives around profitability and growth and market position. So I think we disciplined in financial accretion, strategic operation that is really going to be the emphasis. .

Understood. And then just a follow-up with respect to the backlog. Has that number grows, how should we think about the backlog being filled within 1 or 2 quarters or maybe slightly longer, I guess, maybe 12-month time frame. Just any color on that?

Sure. So the pipeline is large and growing as we articulated. It's also maturing. I mentioned earlier, what we're seeing is opportunities to move our order size up on the cadence as well in terms of the velocity of order capture, now we have this global platform, right? We've got footprints in many markets and they're maturing. So I do believe that we have the wherewithal to continue to grow backlog as we're scaling the P&L, the revenue.

The next question comes from Max Michaelis with Lake Street Capital Markets.

Congrats on the quarter. I just want to go back to sort of the organic revenue growth of 85%. I think of the data as well around Centrix, Airobotics as well as 4 those segments seem to be kind of rolling hot here. Just curious to know, I know we're talking big growth rates of 85%. But is there any other segments of the business now that may not be performing to what you guys originally had expected and sort of what the game plan around that is to kind of get those segments of the business up and moving?

I can't highlight a segment that we're disappointed in. What I would say is that from a resource and capital allocation standpoint, where we're going to spend our time, we make decisions. So if we're seeing -- so we're seeing -- having particular success with 1 platform, a specific customer, we'll spend more time and attention to drive that. And sometimes that could be at the expense of attention on another platform.

So -- but I wouldn't say that, that's a weakness in the platform we're not focused on. It's just what we're trying to do is get the highest returns for our time and capital we're deploying on the OpEx side.

And then last follow-up for me. Can you touch on -- give a little bit more detail on sort of the digital ad program you guys announced the other day with Israel?

Yes, sure. That's a great program. We're really excited to support it. And Meir, I'll ask you to expand on it. .

So as we evolve in the announcement, we're going to manufacture and mass production of [indiscernible] the next generation is going to be in the battlefield. As Eric said, we are very happy about that and going to a big manufacturer sites, we have the ability to build mass production in the short term. And we are very excited about that, and we will take it to the next phase also more and more territories not only in Israel.

The next question comes from Matthew Galinko with Maxim Group.

And congrats on the results. With respect to the, I guess, pull forward on EBITDA positive for the -- on the corporate level. I'm just curious looking at year out, whether you can say, as you think about capital deployment at that point when you hit that milestone, do you expect to be more selective and how you might deploy towards acquisitions or how you'll make allocation decisions to maintain that positive EBITDA going forward? Or is it going to be just situational on kind of where the market opportunities are?

Well, it's a great question, Matt, and I believe we're very selective. But today, we're going to continue to be able come back to the discipline around the financial model and accretion. Of course, that does also means that we're very focused on demonstrating EBITDA leverage. In the near term, I'd say over the next 6 to 12 months, we want to demonstrate that EBITDA and operating leverage. At the same time, we'll be investing to ensure we're capturing as much market position as we can because as we've outlined in the past, we think this market is going to grow significantly. We're going to penetrate these unmanned autonomous sectors and it's going to also -- the value is going to accrue to platform companies and there's going to be fewer and fewer of them.

As such, what we're trying to really do is capture market capitalization for our investors. So -- but when thinking about those investments, that's on OpEx, ensure we have the right operating infrastructure to win and support and drive bigger and faster growth. That's not OpEx. So -- that's not OpEx related to the M&A program. The M&A program comes in with companies that we've modeled, we see significant revenue opportunity gross profit, and we expect them all to be very highly accretive.

And as we're spreading that gross profit and operating income across this incorporated in the growth platform we have at the holding company.

Got it. And just as a follow-up. Iron Wave, I think you mentioned you had a successful deployment there. I'm just wondering if it moves the needle for other potential customers?

Absolutely. We were seeing a tremendous feedback. And in fact, as we're thinking -- if you look at our pipeline, and how we're expecting the cadence of orders in the coming months and quarters, we do think iron wave will be very material. But we think we can expand firstly with our current customer and the success there should open other markets for us. And there is interest globally and Iron Wave day long.

This concludes our question-and-answer session. I would like to turn the conference back over to Eric Brock for any closing remarks.

Okay. Thank you, operator. Also as we wrap the call, I want to thank you again for spending time with us this morning. As we outlined, we are very pleased with where the business is, and we do expect a strong second half of 2026, we're focused on execution in sustaining this momentum into 2027. We look forward to providing more updates in the coming weeks and months. So we'll go back now to the important work of building the company, and we hope you have a great day. Thank you.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Welcome to the Ondas Inc. Investor Event Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Eric Brock, Chairman and CEO. Please go ahead.

Good morning, everyone, and thank you for joining us. Today marks an important milestone for Ondas. We are extremely pleased to announce the acquisition of DZYNE Technologies, a company we believe is one of the most innovative autonomous defense businesses built over the past decade. Today's events are about much more than a transaction. It's a significant advancement in Ondas, creating a company with greater scale, greater technology depth and a dramatically expanded customer footprint. And now Ondas is positioned with one of the broadest autonomous defense portfolios in the industry.

Today, we'll introduce DZYNE, explain why this combination is so compelling, discuss the market opportunity and show why we believe this positions Ondas to become a category leader during what we believe will be one of the largest defense modernization cycles in decades.

Before we begin, please take a moment to review the forward-looking statements and other disclosures contained in today's presentation. We'll be discussing future expectations, financial outlooks and market opportunities that involve risks and uncertainties. Additional information regarding those risks can be found in our SEC filings. With that, let's begin.

So again, welcome, everyone, to today's very important call. This is a tremendously exciting day for everyone associated with Ondas. We're incredibly proud to introduce DZYNE Technologies to our shareholders, our customers, our partners and the broader Ondas ecosystem. Over the past several years, we've worked to build Ondas into a leader in autonomous systems through disciplined technology and market development, along with ecosystem development and, of course, via a well-developed and executed acquisition program.

DZYNE represents the next major step in that strategy. This is an exceptional company. Its products are operational today. Its technology has been proven in demanding defense environments. Its engineering organization is world-class. Its customer relationships span the U.S. Department of War, allied militaries and leading defense and security organizations around the world. Most importantly, DZYNE shares our vision. Both companies believe that the future of defense belongs to autonomous systems, software-defined warfare, affordable mass and persistent intelligence. Together, we are creating a platform capable of delivering those capabilities on a meaningful scale.

This transaction expands Ondas from a collection of outstanding technology businesses into a far more complete autonomous defense enterprise with leadership positions across persistent ISR, aerial security, counter-drone systems, autonomous effects and AI-enabled mission intelligence. We believe this combination fundamentally changes the trajectory of our company.

Before we begin, I'd like to introduce today's speakers. I'm joined by Ryan Hartman, Founder and CEO of World View and now Chief Executive Officer of our newly formed Ondas Sentinel division. Ryan brings decades of aerospace and defense leadership across persistent ISR, autonomous aviation and mission systems. Also joining us is Matt McCue, Founder and CEO of DZYNE Technologies, who will become Chief Technology Officer of Ondas Sentinel. It is a real pleasure to welcome Matt to Ondas. Matt has spent more than 2 decades designing and delivering advanced autonomous systems for some of the most demanding customers in the world. He is not only an exceptional engineer, but an outstanding entrepreneur and business leader who has built DZYNE into one of the premier autonomous defense companies in the United States. Matt, we're honored to have you and your entire team joining Ondas.

The combination of our organizations creates something much larger than either company could have built independently, and we're all incredibly excited about what lies ahead. Let me begin with a brief overview of the transaction. Today, Ondas announced the acquisition of DZYNE Technologies in a transaction valued at approximately $875 million. The consideration consists of $200 million in cash and approximately $675 million in Ondas equity. Importantly, the transaction aligns both organizations for long-term value creation. The DZYNE shareholders, led by majority owner Highlander Partners, are now one of our largest stockholders, a fact that underscores their confidence in the combined company and our shared vision for the future.

In fact, Highlander has locked up more than half the shares received in the transaction for a 6-month period. This is not a financial acquisition. It is a strategic combination designed to create a larger, stronger and more competitive autonomous defense company. It's also important to highlight that DZYNE significantly enhances the financial model for Ondas, creating a larger and faster-growing revenue and gross profit pool to help support the OpEx and infrastructure investments Ondas is making to capture value and market capitalization in the rapidly growing unmanned and autonomous systems market.

DZYNE is expected to generate more than $300 million of revenue in 2027 with expanding EBITDA margins and exceptional growth characteristics. We believe this transaction is highly accretive to Ondas investors today. And given DZYNE's product portfolio, customers, operating scale, talent, U.S. footprint and strong growth profile, that accretion will compound over time. The acquisition closed concurrently with signing on July 2, allowing us to begin integration immediately and accelerate execution from day 1. This acquisition is transformational. It establishes what we believe is the leading independent autonomous defense and security platform focused on delivering for the next generation of warfare. Why? Because DZYNE dramatically strengthens every major component of our business.

First, it immediately expands our U.S. operating platform. Combined with World View, we are creating Ondas Sentinel, a scaled U.S. defense organization with engineering, manufacturing, deployment and sustaining capabilities that very few emerging defense companies possess. Second, we gained extraordinary talent with nearly 120 engineers, deep manufacturing expertise and outstanding operational leadership and an organization that knows how to move products from development into production and into the field for customers.

Third, DZYNE brings exceptional customer relationships. The company has earned trust across the Department of War, Air Force Research Labs, every combatant command and numerous allied defense organizations. Those relationships are difficult to build. They represent years of successful execution and become an invaluable asset for the combined company. Fourth, DZYNE significantly expands our technology portfolio: persistent ISR, long-endurance autonomous aircraft, counter-drone systems, autonomous interceptors, launched effects. Together with the existing Ondas portfolio, we now address many of the fastest-growing areas of defense modernization across the world with a deep portfolio of solutions and an extreme level of talent.

Finally, this dramatically strengthens our financial model. We add substantial revenue, positive EBITDA, expanding operating leverage and a clear path towards scaled profitability. This will enhance our investment flywheel and propel Ondas market capture opportunities on day 1. Before we continue, we'd like to show a short video introducing the outstanding technology portfolio DZYNE is bringing into Ondas. Let's take a look.

[Presentation]

The acquisition of DZYNE isn't simply about adding products. It's about responding to a fundamental change occurring across modern warfare. The battlefield has changed. Victory increasingly belongs to the side capable of deploying autonomous systems rapidly, affordably and at scale. For decades, military advantage centered around exquisite platforms purchased in relatively small quantities over long procurement cycles. That model is changing. Ukraine, Israel and increasingly, the Indo-Pacific all demonstrate that autonomy, software-defined systems and affordable mass are redefining military capability.

A similar transition is occurring inside our industry. Autonomous technology has matured beyond experimentation. The challenge today is industrialization. Governments no longer need isolated demonstrations. They need companies capable of designing, manufacturing, deploying and sustaining autonomous systems at scale. That requires engineering, manufacturing, supply chains. It requires software, robust and scalable operations. And above all, it requires financial strength. These strengths form the core of durable, long-term trusted customer relationships. This is exactly why Ondas and DZYNE belong together.

Our mission is straightforward. To help our customers achieve decisive operational advantage through multi-domain autonomy, persistent intelligence, software-defined warfare and affordable autonomous effects. We believe this combination positions us exceptionally well to meet that mission. So why now? Because we believe the timing could not be better. For years, both Ondas and DZYNE have invested in developing mission-ready autonomous technologies while building trusted relationships with defense and security customers.

Today, those investments are converging with an extraordinary shift in demand. The conflicts in Ukraine and Israel have fundamentally reshaped military thinking. Autonomous systems are no longer experimental. They are becoming central to modern force structure. Defense budgets are shifting accordingly. Governments are accelerating procurement. Affordable mass, autonomous effects, persistent ISR and counter-drone systems are moving from emerging technologies to strategic priorities. At exactly the same time, Ondas and DZYNE have reached the scale where combining creates immediate competitive advantages. Our technologies fit together naturally. Our customer relationships are complementary. Our engineering organizations strengthen one another and our manufacturing platforms scale together. And our financial model becomes substantially more powerful.

Most importantly, we believe there is a first-mover opportunity. The category of scaled autonomous defense companies is only beginning to emerge. And of course, our objective is not simply to participate in that transition. Our objective is to lead it. We believe DZYNE has earned a reputation as one of America's next-generation autonomous defense companies. The company has developed a portfolio of highly differentiated autonomous platforms that are operational today and aligned with the fastest-growing defense priorities. Its business spans 3 core franchises with a suite of systems that are mission-ready and operational today. And I want to highlight that over $500 million has been invested in R&D to support this broad portfolio.

The first segment DZYNE plays in is long-endurance ISR. Here, DZYNE offers ULTRA and LEAP, highly capable autonomous aircraft designed to deliver persistent intelligence at dramatically lower acquisition and operating costs. ULTRA, in particular, is emerging as an extremely compelling complement to the MQ-9 Reaper, providing persistent ISR at substantially lower cost while supporting a broad range of mission payloads.

Second is aerial security and counter-UAS. In counter-UAS, IonStrike is a remarkable product, a fully autonomous kinetic interceptor purpose-built to defeat next-generation threats such as Shahed-class attack drones. Alongside IonStrike sits Dronebuster, which we believe is one of the world's most widely deployed handheld counter-drone systems and the only U.S. manufactured solution utilizing GNSS spoofing technology.

The third franchise is autonomous effects. Products such as Blitz and Grasshopper address the rapidly growing affordable mass and launched effects markets, supporting distributed operations and swarm concepts that are becoming central to modern military doctrine.

Financially, DZYNE is equally impressive. We expect approximately $191 million of revenue during 2026 and greater than $300 million in 2027, driving a 3-year CAGR of over 80%. The business growth is supported by a significant backlog and a large and visible pipeline.

Clearly, DZYNE is at a pivotal inflection point in its growth, and Ondas provides the scale, infrastructure and operating platform to help accelerate its next phase. It's a playbook we have executed successfully time and again through our strategic growth initiatives.

What gives us tremendous confidence in DZYNE is that this isn't a company built around future concepts. It is a company delivering product and services today. Its systems have been deployed globally across every U.S. combatant command and numerous allied defense organizations. Its customers include the U.S. Air Force, Army, SOCOM, Homeland Security, AFRL, NASA, NGA and multiple allied militaries. And given DZYNE's pipeline, aligned with Ondas' relationships, is likely to see this customer list deepen and broaden from here. Those relationships were earned through performance.

Operationally, the company is equally impressive. DZYNE operates a mature U.S.-based manufacturing and supply chain, supported by more than 145,000 square feet of production capacity. Its products are supported by established customer training, field service and sustainment organizations. One area I want to emphasize is ULTRA. We believe ULTRA is approaching a significant inflection point as it transitions toward a major program of record. Again, this is a high-performing system built for purpose for extremely long endurance with payload diversity, which is much lower cost relative to legacy UAV platforms.

Much like World View, DZYNE's revenue model will leverage delivering ISR capability through GOCO and increasingly COCO or government-owned company-operated and contractor-owned contractor-operated service models. That recurring services approach improves customer flexibility while creating attractive long-term revenue visibility for the company.

This slide illustrates another important advantage created by the transaction, scale. Moving the unmanned sector across the adoption S-curve will require companies like Ondas to position for exponential growth. Production capacity is a critical enabler for us to do just that. DZYNE operates 6 facilities across the United States, anchored by its headquarters in Irvine, California, with additional operations supporting engineering, manufacturing and customer engagement.

Importantly, DZYNE contributes approximately 145,000 square feet of U.S.-based manufacturing capacity. Combined with our existing operations, Ondas now has more than 330,000 square feet of manufacturing space across the United States. This puts Ondas in a very strong position competitively and with customers. As demand accelerates, our customers need partners capable not only of innovating, but of delivering. This footprint provides the production capacity, engineering resources and operational infrastructure necessary to support that growth.

With this introduction and overview, I will now hand the call to Ryan Hartman, who will add additional context around DZYNE's capabilities and the strategic and operational fit for the combined DZYNE and Ondas.

Thank you, Eric. We are genuinely excited to welcome DZYNE to Ondas. This is a company I've followed since its inception. I have tremendous respect for Matt McCue, who I've worked with for more than 20 years, and I recognize the depth of talent inside DZYNE and their ability to help us realize the full vision for Ondas. As we've previously shared, Ondas' strategy is to build a multi-domain business that delivers our customers' capabilities ranging from the surface to the stratosphere unified by a common tasking, collection, processing, exploitation and dissemination architecture.

We've been very active executing against that strategy. In 2026 alone, we completed acquisitions and partnerships, including BIRD Aerosystems, Rotron Aerospace and the Palantir partnership in March, Mistral and World View in April, and Omnisys in May. As you'll note from the portfolio map on the screen, a clear gap remained between our low altitude unmanned systems and our stratospheric assets, specifically in the Group 4 and Group 5 long-endurance UAS category. DZYNE fits nicely in between the stratosphere and the assets we already have in the portfolio for multi-rotor UAVs and Group 1 and Group 2 UAS. It is a precise purpose-built complement to what Ondas has already built, and it gives us coverage from surface to stratosphere with no gaps.

With SkyWeaver as our mission layer and Palantir's Warp Speed and Foundry as our operations layer, the addition of DZYNE completes a cohesive architecture across land, air and stratospheric domains. With the systems already in our portfolio, Ondas had the ability to address a meaningful portion of the global TAM. With DZYNE's addition bringing launched effects, additional counter-UAS technologies and Group 4 and Group 5 UAS, we significantly expand the addressable market available to Ondas.

What you're looking at here are 3 of the fastest-growing segments in defense: persistent long-endurance ISR-T in contested airspace, a counter-UAS market where spend is migrating from detection to low-cost autonomous defeat and a $15 billion-plus Department of War push into low-cost launched effects. Each segment carries attractive compounded annual growth rates. We look forward to maturing and evolving these platforms, so we have a right to win in each and to capturing an outsized portion of these markets over the next 4 years.

Ondas has been focused on 4 specific verticals where defense modernization spend is accelerating, aerial security, ISR and persistent intelligence, precision strike and autonomous ground systems. DZYNE represents a transformational step forward in 3 of these 4 areas. It strengthens our aerial security posture with Sawtooth and Dronebuster. It deepens ISR with ULTRA and LEAP, and it expands precision strike with IonStrike. These are complementary, not redundant additions to capabilities we already operate.

With that foundation in place, I'd like to turn it over to Matt, who will walk through the core DZYNE franchises joining the Ondas portfolio and how they strengthen our position across long-endurance ISR, counter-UAS and precision effects. Matt, over to you.

Thank you, Ryan. It's an honor to join forces with you and Eric and the entire Ondas team, and we're excited about what DZYNE and Ondas can build together. I'd like to start with our marquee long-endurance ISR platforms, ULTRA and LEAP. ULTRA delivers over 3 days of endurance at over 25,000 feet altitude with modular payload support for EO/IR, targeting, radar, SIGINT and communications relay. It fits squarely into the Group 4 and Group 5 mission set for the Department of War and allied nations.

LEAP complements ULTRA with over a day of endurance at 17,000 feet at an even more cost-effective price point. Why this matters is that persistent ISR is seeing surging demand across every modern conflict. What we've learned in recent operations Epic Fury and Operation Absolute Resolve in Venezuela is that sortie count, cost and risk to crews matter more today than they ever have. We designed both platforms to support modular payloads truly multi-mission, directly aligned with combatant command surveillance gaps. And we designed them from day 1 to reduce acquisition and operational cost to a threshold where they are considered attritable assets, meaning they can fly one-way missions when the mission requires it at an operational cost lower than similarly capable systems. Both ULTRA and LEAP are in operational use today with U.S. and allied partners around the world. Their capabilities complement Ondas' stratospheric assets, and SkyWeaver will make them even more capable by enabling mission autonomy.

The second DZYNE franchise we are emphasizing here is counter-UAS, centered on kinetic kill with IonStrike. In a 6-month period, our team went from concept to a demonstrated capability specifically designed to address the Shahed-136 threat. We're seeing significant demand because the drone threat is at an all-time high. What we learned in both Ukraine and Epic Fury is that the ability to engage targets like the Shahed-136 is an absolute requirement and an urgent one for the U.S. Department of War and allied nations.

Beyond IonStrike, DZYNE brings the handheld Dronebuster and the Sawtooth system, both designed as disruptive soft kill solutions against a broad set of UAS threats. True to DZYNE's history of innovation, we're always advancing to address new threats. In the near term, we'll be releasing a long-range electronic attack solution and a LiDAR detection capability to augment the already significant counter-UAS portfolio we have in the market today.

To round out the overview of DZYNE's portfolio, we want to highlight the precision strike and autonomous effects capabilities brings to the market. This portfolio includes our low-cost, fully autonomous, swarm-capable Group 1 UAS Blitz. Blitz delivers a 150-kilometer range and a true multi-mission capability. The system is modular by design, configurable in the field for a range of missions and built to be assembled by soldiers operating in an expeditionary environment.

In addition, we bring Grasshopper, an autonomous, expendable glider, capable of delivering substantial payload into contested or denied environments. We're excited about the unique mission profiles this enables, including pairing Grasshopper with the stratospheric balloon for battlefield delivery, and we look forward to bringing these capabilities forward under Ondas.

Ryan, back to you.

Thank you, Matt. I want to congratulate you and the DZYNE team on the success you've achieved and reiterate how excited we are to bring those capabilities into Ondas. One of the most important things Ondas does is create platforms for unique companies to build a business around. Over the years, significant investment has been put into specific technologies. What's necessary to scale those businesses is a structure that lets us continue to innovate and manufacture at a scale that meets customer demand.

With that, we are pleased to announce the creation of Ondas Sentinel, a dedicated operating platform that reflects Ondas' mission to help customers see more, perceive faster and act with confidence, turning persistent and intelligent sensing into decisive advantage. I am honored and excited to partner with Matt to bring Ondas Sentinel to life unifying DZYNE and World View under one dedicated operating platform to accelerate momentum. Together, this combined organization includes 8 U.S. facilities, more than 330,000 square feet of manufacturing capacity, 500 employees and more than 140 engineers.

As I opened, we've been on a mission to build a multi-domain ISR architecture. DZYNE clearly fills the gap that existed within that architecture and gives us a set of solutions that delivers a uniquely complete capability to customers globally. At the same time, the stratospheric layer is moving from an emerging capability to a required element in modern ISR planning, particularly as customers design integrated multi-domain operating concepts. To make all of this work together, we previously announced our partnership with Palantir.

There are 2 elements investors should understand. First, the operations layer built on Warp Speed and Foundry. With Palantir, we can rapidly integrate supply chain, inventory management, manufacturing, engineering and financial reporting, so integration of our companies happens much sooner than would otherwise be possible. Second, the mission layer SkyWeaver, which provides adaptive, agentic AI and inferencing at the edge to deliver mission autonomy. SkyWeaver is what converts the portfolio from a collection of capable platforms into an integrated intelligent system. It fuses data from stratospheric, aerial and ground-based assets, reasons across those domains and delivers correlated decision-ready intelligence to the customer.

For example, a Stratollite can provide wide area surveillance and task fixed-wing UAVs like ULTRA and LEAP to track and target items of interest in a customer's area of responsibility without an operator engaging until an effect needs to be delivered. The result is faster decisions, more engagements and fewer assets required to execute the mission. We believe we are the only provider offering persistent ISR across all 3 layers: stratosphere, air and surface in one portfolio. We do.

I'd like to double down on what Matt shared about ULTRA and LEAP. What we've learned in recent conflicts is that combat air patrols require a new generation of affordable and attritable multi-mission ISR and targeting solutions. Long-endurance ISR represents a multibillion-dollar annual Department of War spend. In Epic Fury alone, the U.S. and partners lost more than $1 billion of ISR drones, making the legacy approach economically unsustainable. What's needed is for combat air patrols to be augmented with attritable systems that can operate in contested environments without giving the adversary a meaningful economic advantage. If we lose an ULTRA in a contested environment, we can rapidly replace it without creating a disproportionate cost burden on the Department of War.

ULTRA and LEAP deliver not just persistent ISR, but also targeting at dramatically lower cost. That enables the Department of War to put more aircraft in more locations, conducting more missions than would otherwise have been possible. Ondas already had a very impressive counter-UAS portfolio. When you put counter-UAS on a spectrum, capabilities range from detection of a UAS threat all the way through engaging and eliminating it. With the addition of DZYNE's Dronebuster, Sawtooth and IonStrike, we now have the full spectrum of counter-UAS technologies under one roof. Coupled with our AI-enabled software and the mobilization layer for deploying these systems in theater, we believe no other company can offer the full suite of counter-UAS technologies that Ondas can.

I want to spend a moment specifically on IonStrike. The fundamental problem we face today is that the cost exchange ratio is broken. It costs the U.S. and allied forces 2 to 3x more to eliminate a threat than the threat itself cost to produce. IonStrike changes the math. It delivers a capability that is on cost parity with the threat, meaning the cost to intercept and eliminate is now equivalent rather than asymmetric in the adversary's favor. What DZYNE has built is the lowest cost, most capable effector in the market today, purpose-built to address Shahed-136 class threats with approximately 360 miles per hour closing speed and approximately 40 kilometers engagement envelope, and 2 to 5x lower cost per kill than alternatives.

It is now our responsibility to rapidly scale this capability and evolve it into a family of low-cost interceptors that addresses not just the Shahed-136 threat, but every Group 3+ threat category where the cost exchange ratio is broken. We are excited to bring this into the portfolio, excited to expand it from a single effector into a family of low-cost intercept solutions and excited about the substantial addressable market this opens for Ondas.

With that, I'll turn it back over to Eric.

Thank you, Ryan. Now let's talk about what this means to Ondas from a financial standpoint. This acquisition isn't simply adding another revenue stream. It fundamentally changes the scale and earnings profile of Ondas. DZYNE is expected to generate approximately $190 million of revenue during 2026 and more than $300 million in 2027, providing a significant impact to Ondas' growth while providing meaningful operating margin leverage to the consolidated financial model.

Looking beyond this year, we expect DZYNE to deliver more than 80% compounded annual revenue growth from 2025 through 2028, making it one of the fastest-growing businesses in our industry. There is significant visibility in these revenue targets provided by the robust $111 million in backlog and an active and growing pipeline currently measured at north of $1.5 billion. We believe this substantial growth will be driven primarily by 2 major product franchises.

First is ULTRA. ULTRA is emerging as one of the most compelling long-endurance ISR platforms in the market. It offers customers persistent intelligence at dramatically lower acquisition and operating costs than legacy systems, and we believe it is exceptionally well positioned as a complement to the MQ-9 Reaper, which has a massive installed base and future combat air patrol architectures.

The second hero system for DZYNE is the IonStrike, a next-generation interceptor. We continue to believe IonStrike represents one of the most important new counter-drone products entering the market. Modern warfare has made clear that defending against mass drone attacks requires autonomous interceptors capable of defeating threats at cost parity. IonStrike was purpose-built to solve exactly that problem.

Beyond these flagship programs, DZYNE's broader counter-UAS portfolio provides recurring and highly visible revenue opportunities across handheld systems, including the Dronebuster, which is the only U.S.-made GNSS spoofing system, vehicle-mounted systems, fixed-site protection and open mission software. Importantly, this growth is supported by a substantial backlog and the $1.5 billion customer pipeline, which provides us excellent visibility into what we believe will be a multiyear expansion cycle.

Operationally, we have clear milestones ahead. ULTRA deployments continue to expand. COCO ISR service offerings begin contributing meaningful recurring revenue. IonStrike production scales significantly as customer demand accelerates, manufacturing capacity expands. And finally, we will implement Palantir, Warp Speed and Foundry across the organization to improve production planning, supply chain management and operational efficiency as we scale. Taken together, these milestones position the combined company for a very meaningful period of growth and a more robust outlook for long-term profitability.

Of course, the acquisition of DZYNE also changes the outlook for Ondas. Based on our current operating plans, we are raising our 2026 revenue target to more than $525 million versus the $390 million target we announced in May. This includes contributions from both DZYNE and Omnisys, the acquisition of which closed in May. I am very happy with the revenue and financial performance at Ondas. Our Core+ Strategic Growth model is being executed by our operating teams extremely well, and those teams are getting stronger.

As we've said repeatedly, our strategy has never been to assemble technologies for the sake of acquisition. Our objective has been to build a larger autonomous systems company operating across operational domains and capable of winning larger programs, serving larger customers and competing against much larger defense contractors. Scale matters. Scale enables investment and scale improves manufacturing efficiency. Scale strengthens customer confidence and scale creates better financial outcomes. Importantly, our backlog continues to expand and support the strong growth curve we are targeting. We entered the second quarter with approximately $457 million in pro forma backlog.

During the quarter, we announced more than $150 million of additional orders. DZYNE will add an additional $111 million in backlog, and our recent acquisitions continue to strengthen long-term revenue visibility with high-growth technology platforms. We also expect our backlog to expand by $95 million upon closing the Cyberhawk acquisition, which we expect in Q3. Just as important, we continue to focus on expanding across 5 dimensions simultaneously. We're focused on capturing more and larger programs and serving more customers. We will continue to expand our strategic partner ecosystem and increasing our operational scale. And we're going to continue to drive post-merger integrations to leverage the substantial global footprint we have built across Ondas.

To that point, our strategic acquisition program has been very successful and has clearly advanced our operational and financial models. I am particularly pleased to now have the strong U.S. footprint in place, which is essential to our success. We are well positioned to win with our customers. I expect us to moderate the acquisition pace in the second half and focus on driving growth and operating leverage across the company. We will provide more context on this during our Q2 conference call in August.

To wrap the outlook, we believe Ondas has become one of the very few scaled independent autonomous defense companies in the industry. This is an incredibly valuable position, and we will continue to leverage that for the benefits of our customers, partners, employees and of course, especially on behalf of our investors.

I'll close today's presentation where we began. This transaction is about much more than acquiring another company. It represents another major step toward building what we believe will become one of the defining autonomous defense companies in the marketplace. Together, Ondas now possesses leadership positions across 4 of the fastest-growing mission areas in defense: persistent ISR, aerial security and counter-UAS, autonomous effects and precision strike, and unmanned ground vehicles.

Across those mission areas, we now deliver an integrated architecture capable of helping our customers detect, understand and defeat threats across multiple operational domains. We combine persistent sensing with intelligent software. We combine autonomous aircraft with autonomous effects. We combine electronic warfare with kinetic defeat, and we increasingly combine all of those capabilities into software-defined mission systems enabled by AI. We believe that architecture closely reflects where military doctrine is heading.

Looking forward, our priorities are straightforward: execute, integrate DZYNE successfully, continue delivering for our customers, scale manufacturing, expand recurring revenue and continue investing in technologies that strengthen our competitive advantage. We believe the autonomous defense industry is entering one of the most significant growth cycles in decades. Ondas intends to be one of the companies that defines that future. I'd like to thank everyone who made this transaction possible, especially the outstanding teams at DZYNE and Ondas, whose dedication made today's announcement a reality.

With that, we'd be happy to open the call for questions.

[Operator Instructions] The first question comes from Sydney Freedberg with Breaking Defense.

It sounds like you've been on a bit of an acquisition spree that's now wrapping up, if I understand correctly. And you talk about not just acquiring more stuff, but actually putting it together in a coherent integrated architecture. So let me ask, a, am I understanding correctly that this is sort of the time you're winding down the merger and acquisitions? And b, how technically you're able to make everything work together and exchange data, pass things seamlessly from one company's product to another to, for example, Palantir, your partner, that's in widespread use across the COCOMs?

Okay. Sydney, thank you for your question. So firstly, we are in the early stages of a massive adoption cycle around unmanned and autonomous systems. And we -- our thesis is that the market needs platforms, operating platforms to deliver battle-proven and mission-ready technologies. And those platforms need to be well capitalized. And the operating leverage I talked about, of course, is across the supply chain. It's the field services and support and sustainment, and it is across the integration of the technologies, as you've described.

So there's still quite a bit to do. The point we're making around the moderation of our M&A plan is specifically towards demonstrating that these systems can be integrated in the field and are being integrated with customers and that we are supporting them with a very robust operating platform, specifically around supply chain, production and field support.

Ryan, I'll ask you to expand a bit more on what we're doing on the software to integrate the systems and make them even more valuable in terms of solutions for customers.

Yes. Thanks, Eric. And Sydney, thank you for your question. As you mentioned, Palantir is in wide use within the Department of War. I think what we learned in Epic Fury and other conflicts around the world that most wars are run on Palantir Maven. Our approach is to design a new solution that we call SkyWeaver. What SkyWeaver is designed to do is create mission autonomy. What that means is creating platform autonomy and the command and control architecture that connects platforms so that we can be doing collections and tasking of those platforms through a software-defined architecture.

Ultimately, what that means is the ability to detect something and then task another platform in the Ondas portfolio to either refine that surveillance of that target or ultimately deliver an effect. And that's where mission autonomy becomes key to the Ondas' overall strategy. SkyWeaver will be very different than any other AI-enabled agentic AI-enabled autonomy solution that exists today. And we're hard at work in bringing SkyWeaver to life. And with DZYNE, we're going to accelerate that work. We've got demonstrations that are upcoming, and then we're going to be doing an Ondas-wide rollout of SkyWeaver before the end of the year.

Understood. And will that work with partner companies and with other people's products? Because the defense department is very big on avoiding vendor lock, avoiding proprietary systems that talk within a company's products portfolio, but don't talk with other companies. Big problems those have been in the past. Are you going to try to avoid that?

Yes, that's a great point, Sydney. And the intent with SkyWeaver is for it to not be a proprietary solution within Ondas, but rather be a solution that can both ingest data from other platforms and provide tasking to other platforms. The last thing we want to do is to create a proprietary closed architecture that doesn't enable the Department of War to leverage all of the assets within their portfolio.

The next question comes from Austin Bohlig with Needham.

Congrats on the acquisition. So first, guys, I just wanted to dive into this $1.5 billion pipeline related to DZYNE. Could you maybe just like walk through, one, is this more just like U.S. driven, or is this including like international opportunity? And then second, like when you guys have a sense of like how quickly this pipeline could be converted into backlog/revenues? Is this a year, 2-year type of horizon?

Thank you, Austin. And clearly, we're seeing an adoption curve beginning with both ULTRA and IonStrike and that pipeline also reflects the other platforms we discussed during the presentation. Ryan, I'll ask you and/or Matt to expand on the pipeline and what the cadence is in terms of capture.

Yes, Austin, thanks for the question. So the pipeline that exists today is certainly largely driven by U.S. Department of War. And as Eric mentioned, we expect significant growth in IonStrike and ULTRA. And to answer your question specifically on time to convert, we expect to see a significant growth in the backlog for both IonStrike and ULTRA through the remainder of this year that fuels the greater than $300 million in revenue that we expect in 2027.

Beyond IonStrike and ULTRA, we do see demand across the entire DZYNE portfolio and bringing that in with the World View pipeline and backlog, we expect to see not just growth in the U.S. but globally. Allied nations, they see the same problem that we see within the Department of War. Attritable mass, affordable mass and the ability to deliver multi-domain ISR is an absolute requirement. And so although it's largely anchored in U.S. Department of War, we see growth in the Indo-Pacific market, the European market, especially on the Eastern Flank. And then we expect to see additional growth in the Middle East.

Awesome. And then maybe like one follow-up here. If I remember correctly, I think on your guys' Q1 earnings call, you guys talked about getting to the OAS business profitability in Q1 of next year. With obviously, Cyberhawk being adjusted EBITDA positive, this acquisition, obviously adjusted EBITDA positive, how should we be thinking about time line? Could that be pulled in Q4 of this year? Or should we still be kind of expecting kind of Q1 of '27 as when we hit that adjusted EBITDA milestone?

Yes. So clearly, this does improve our financial profile and is going to provide quite a bit of operating leverage to the financial model. I think I'll defer being more specific until our Q2 call, which we'll have in the first half of August, where we will lay out our objectives around the path to profitability at OAS and of course, for the whole company.

The next question comes from Timothy Horan with Oppenheimer.

Eric, congratulations and best of luck for all of you. I got about a dozen questions, and I'm not even really sure where to start. But just maybe at a really, really high level, can you talk about your autonomous or your AI capabilities? How much are you developing in-house? And how much are you relying on like Palantir? And just out of curiosity, the Palantir relationship, is that like an equity joint venture or are you just paying them for services? Or how is that structured?

Very good. So we'll talk about SkyWeaver and -- LADOS first, but then SkyWeaver, and I'll defer to -- I'll ask Ryan to dig in a bit more on SkyWeaver and Palantir and the development process. So you think about our command and control capabilities at both the platform level and the integrated systems level at Ondas, vis-a-vis the mission autonomy where autonomous platforms of Ondas and third-party vendors are integrated in the field around mission autonomy again.

As it relates to platform autonomy, all of our autonomous systems have a command and control capability. We describe that as LADOS, L-A-D-O-S. And so for example there, we'll deploy an Optimus or deploy Iron Drone or we'll deploy Sentrycs, and those systems can be remotely operated and controlled with this software architecture infrastructure. Then as we're bringing, say, Iron Drone and Sentrycs on to, say, a ground vehicle from Roboteam, we begin to drive scale and those systems can work in tandem, again, with this LADOS command and control software. And then, of course, Palantir, the work we're doing with Palantir on top of that with SkyWeaver just expands that more broadly. And Ryan, do you want to describe the development work there?

Yes, happy to. Timothy, thanks for the question. So SkyWeaver is a joint development program between Ondas and Palantir. The way to think about it is we have all of the command and control architecture on the Ondas side, and we're focusing on evolving that command and control architecture to enable both platform autonomy and mission autonomy. And what Palantir brings to the table is the ability to connect this to Palantir ontologies and to their agentic AI capabilities to better deploy platform autonomy to create mission autonomy.

On the Ondas side, we're responsible for both the hardware development and the command and control architecture, whereas Palantir is bringing the ontology and the connections to Warp Speed, Foundry and ultimately, the ability to integrate with Maven. As I mentioned earlier, we're in the process of pulling the hardware and software together to start demonstrations here in the coming months. And then later in the year, we'll start rolling out SkyWeaver across the Ondas portfolio.

SkyWeaver is more than just software. It includes hardware. So think of it as an agentic AI appliance to be deployed and integrated on Ondas platforms that runs both the platform autonomy and the mission autonomy for our overall strategy of connecting all of our systems to Department of War and allied nations command and control architectures and ultimately bringing to life what I mentioned, mission autonomy.

And on revenue share?

Yes. So yes, I want to talk about Palantir, but also I want to ask a question or have Ryan address what I think you're going to ask next, Tim, around the revenue model, which specific to SkyWeaver, but of course, it's integrated with the platforms we're delivering at scale. So -- but coming back to Palantir, this -- the relationship we have with them is substantial and it's really across 3 dimensions. So we have access to that full suite of Palantir's what they call AIP, the Artificial Intelligence Platform, and that ranges from the Warp Speed-type application, the other software development work we're doing on top of Foundry.

And in that work, Palantir is sending those forward-deployed engineers because there's a really deep dive and substantial collaboration with both our engineering teams and the experts at Palantir. So again, we have, firstly, full access to the entire suite of Palantir's AIP. Palantir is also supporting with Ondas in many instances, the revenue capture, program capture, so engaging customers, which, of course, is really important.

And then there's a strategic road map. And Palantir is very bullish and the reason we first met World View and Ryan via Palantir because Palantir shared our view that we need to build -- bring scale to these -- across domains to these subscale companies who are doing incredible work in developing the unmanned systems, developing the autonomy. But when you're going to deliver these technology platforms at scale, you need this integration, you need a scaled operating platform and a financial platform as well. And of course, Ondas is building that. So that's the Palantir. It's across technologies, across revenue and business capture, and it's a strategic road map where we're mapping the acquisition programs to fill domains and integrate solutions. Ryan, talk a bit about, if you would, on the revenue models and business models that we're engaging with SkyWeaver.

Yes, happy to, Eric. So in the ISR market, there's a significant push for what we call GOCO and COCO, government-owned contractor-operated ISR platforms and then company-owned company-operated ISR platforms. What's important to understand is, especially in the COCO model, it gives us the ability to introduce new technologies on a very rapid basis. And that's one of the ways that we're going to be introducing SkyWeaver is through the COCO ISR services business model.

But in addition to that, as I mentioned, SkyWeaver is both hardware and software, and it gives us the ability to create recurring software revenues through the deployment of SkyWeaver on both Ondas platforms, but also on other companies' platforms as well. We recognize that SkyWeaver will be a very unique set of AI capabilities that enable other platforms to realize mission autonomy like we will at Ondas. And so beyond the GOCO and COCO, we'll be expanding our product offerings to the overall ISR market and offering software services as well.

And so what's the model look like with Palantir? Is it a revenue share? Or do they help you with the go-to-market? Yes.

It's more of a go-to-market. So we're funding the development of SkyWeaver. And therefore, it's 100% an Ondas product and a software suite. And -- but as Eric mentioned earlier, they're very bullish on the work that we're doing and are enabling a lot of the go-to-market activities through customer relationships and by ensuring that our platforms connect to how wars are run today. As I mentioned earlier, especially Epic Fury was run on Maven. And so the ability to ensure that our platforms are fully integrated with Maven and leverage the ability to exploit ISR and targeting capabilities on Maven through SkyWeaver is a very important point. And Palantir has been fantastic in just ensuring that the go-to-market strategy is one, sound, but two, highly executable.

And just a quick question maybe on the Blitz swarm technology in the box. So these drones, can they communicate with each other and share data? Can they act like a true swarm? Or how far away are you from that capability?

Yes. I'll turn it over to Matt McCue to answer that question.

Yes, absolutely. The Blitz product does run an autonomy layer on the vehicle and also back on the C2 system back through it. The current way that's employed is commonly through the ATAK system that's widely adopted by the Department of War for the -- on the edge at the ground level deployed unit piece of autonomy interface. And so the Blitz system operates a multi-mission capability where they can do heterogeneous swarms and various mission effects to make a more complex effect with a very scalable, simple product.

The next question comes from Jon Siegmann with Stifel.

Question on ULTRA. You did mention it could be at an inflection point on a program of record. Can you talk a little bit about the advantages relative to the Reaper? Is it just -- is it more -- actually more survivable? Or is it just the lower cost that makes us able to afford to lose those? And what's the timing and potential size of that program?

All right, Ryan. Thanks, Jon. Ryan, you can take this.

Yes, Jon, thanks for the question. So as compared to a Reaper, the way that ULTRA is positioned is to be complementary to Reaper. So it provides a very similar ISR capability, but with much greater endurance. As we mentioned earlier, it provides 3-plus days of endurance. So what that ultimately means is fewer aircraft to operate within a combat air patrol and fewer aircraft in an overall sortie infrastructure. And so what we're seeing, and Epic Fury was a great example of this, is that what the Department of War needs is something that is affordable and attritable.

And so when you look at both the acquisition cost and the operational cost of an ULTRA, it is a small fraction of the cost of current Group 4, Group 5 assets. And so the transition to a program of record is happening now. We'll be sharing details around that over the rest of the year. But it's really about being an augmentation to an overall combat air patrol to deliver a Group 5 ISR capability plus targeting. And to answer your question of is the advantage its comparison to Reaper or is it just the attritable nature of it? The answer is both.

Obviously, we would want all ISR platforms to be survivable in the airspace. But in a contested environment, especially in the early days of a conflict, there has to be an economic approach that makes ISR sustainable until you get to a point of airspace superiority. And so ULTRA provides both the marquee ISR capability while also providing an attritable asset that makes the economics of ISR more sustainable.

That's great. And then maybe on launched effects, is that a near-term programs that we can track? Or is that something that needs to be defined by the customer and how they buy some of that? You mentioned a potential family of programs there.

Yes. Eric, I'll take that one, too, if you want.

Sure. Yes, please do.

Yes. So launched effects, it's the franchise program. The hero program is IonStrike. There are requirements today that require an affordable launched effect, specifically against the Shahed class of threats. And so it's something that you can track over the rest of the year. There are requirements today. And as Matt mentioned in his portion of the presentation, DZYNE went from concept to a demonstratable product in 6 months. And so now we're responding to a significant number of RFIs, RFPs to field that capability. So I encourage you to watch as we grow that platform and -- or grow that capability and start fielding that system in the very near future.

The next question comes from Max Michaelis with Lake Street.

Congrats on the acquisition. Just 2 from me. First one, with ULTRA and IonStrike scaling up next year, I mean, can you help us give us an idea of what you expect revenue mix between the 2 business segments would be and then as well as their margin profiles?

Sure. We're not giving that level of detail today on mix between IonStrike or ULTRA. And remember, we've got other systems as part of that revenue outlook as well, including the counter-drone systems such as Dronebuster. In terms of margin profile, what we're seeing is the 40% to 50% on the gross margins. And of course, we'll be working to scale those up to the extent we can. So that's the answer. And we'll give more details on not just the margins here, but of course, across the company when we meet in August for the Q2 call.

Okay. And then last one for me, and maybe I missed it, but given IonStrike, it's more of the cost, it comes at a better price than sort of a Patriot or the main SAM's intercept units. Can you kind of help me understand sort of what that cost difference is...

Yes. So it's -- what we're talking about is cost parity vis-a-vis the threat, and that threat is the next-generation Shahed, also known as the 136. Jet powered, moves very fast. And what you're trying to do is level the playing field vis-a-vis the adversary with a defense that is at cost parity and can perform, and that's what we have built here with IonStrike. Ryan, would you add anything to that?

Yes, I think that's exactly right. I mean the foot stomp here is cost parity to threat. And as we build out a family of systems built around the IonStrike, that will always be the focus is creating low-cost effects with a focus on parity or greater, greater meaning that the intercept is less than the cost of the threat.

The next question comes from Matthew Galinko with Maxim Group.

Really was just curious about whether this was a competitive process. And I guess, for DZYNE, why now is the right time to go this route and I guess, why Ondas?

Sure. So yes, there was a process here, and it was competitive. At the same time, I think it's fair to say that Ondas brought a lot to the table that made us particularly competitive as an acquirer of the company. As you can see through the conversation today that DZYNE has built an exceptional business, technology talent, the go-to-market capability, the work they've done to start to build a scalable supply chain and production capability. And I think like -- so Jeff Hull, who's the President and CEO of Highlander, as you looked at the outlook here, I think he, like many folks in our industry, are looking at how this industry is going to evolve.

And I think it's fair to say that we're seeing that platform companies like Ondas that can bring capital and scale across multiple domains, which, of course, feeds into a competitive advantage vis-a-vis supply chain relevance, customer relevance, the ability to support the field. I think it's very compelling. As we mentioned in our -- and it was in the press release, the Highlander folks are very bullish on the combination. They really like what they've done in DZYNE. They see a very strong ramp there. And I think that's going to have a very strong impact on the combined company at Ondas. So they're very happy to be shareholders and continue to participate in the upside.

So I think, Matt, that's the way you're going to see this market evolve. There's been an incredible amount of work in terms of developing technology platforms that have extreme relevance. They're now operational. They're hardened. They're very incredibly useful. And in fact, even more so, they're essential and how we deliver these technologies is going to be very important. And I think doing -- pursuing the scaled operating platform that Ondas is really made us a compelling partner for Highlander and the management team at DZYNE.

This concludes our question-and-answer session. I would like to turn the conference back over to Eric Brock for any closing remarks.

Sure. Thank you, operator. I'll try to be brief. But to wrap up, I want to say that acquiring DZYNE is about much more than just adding another product line or 2 or 3. It's really about positioning and continuing to advance the position of Ondas at the center of a massive and what is ultimately going to be a once-in-a-generational technology transformation across global defense. We're combining persistent intelligence, autonomous aerial systems, counter-drone platforms, precision strike.

And of course, we're layering in AI-enabled mission software. We're bringing this in a single platform and as we layer these essential capabilities. And our job here today, of course, now is to execute, support our customers and continue to build a platform that creates long-term value for both national security across our allied nations. But of course, with the shareholders front and center as well. So that's what we're going to do. Thank you again for joining us. We're going to go back to work, and I hope you have a great day.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Welcome to the Ondas Inc. First Quarter 2026 Earnings and Business Update Conference Call. [Operator Instructions] Before we begin, the company would like to remind you that this call may contain forward-looking statements. While these forward-looking statements reflect Ondas' best current judgment, they are subject to risks and uncertainties that can cause actual results to differ materially from those implied by these forward-looking statements. These risks are discussed in Ondas' periodic SEC filings and in the earnings press release issued today, which are both available on the company's website.

Ondas 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, Ondas 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 as shown in our press release issued today, which is available at the Investor Relations section of our website. This non-GAAP information is provided as a supplement, not as a substitute for or 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, sir.

Thank you, operator, and good morning, everyone. We appreciate you joining us today and your continued interest in Ondas. Before we begin, I want to thank [ Think Reel ] for allowing us to share his Systems of Systems music video ahead of the formal program. He is an Ondas investor and a talented creator active on X. We are grateful for his support, appreciate his creativity and look forward to seeing more of his work.

With that, let me set the stage for today's discussion. Our plan is working. Over the past year, we laid out a Core + Strategic Growth strategy to build Ondas into a scaled global operating platform for unmanned and autonomous systems, serving defense, security, industrial and critical infrastructure markets. We believe our results in today's update increasingly validate that strategy. We are building a world-class Systems of Systems portfolio across air, ground and now the Stratosphere.

Through internal innovation, disciplined execution and strategic acquisitions, we continue to add differentiated capabilities across multiple operational layers. At the same time, we are executing against our operating plan and capturing growth synergies across the Ondas platform. We are leveraging shared customer relationships, expanding go-to-market reach and building a broader global footprint to scale efficiently. We are also expanding our global market opportunity as reflected in growing customer traction, strategic partnerships, major program opportunities and a larger backlog.

All of this continues to support what we believe is a powerful financial model driven by strong market tailwinds, operating leverage, scalable infrastructure and attractive long-term returns on capital. We believe the strategy is sound, execution is improving quarter-by-quarter, and the market is increasingly recognizing the value of what we are building, as shown by growing support from customers, strategic partners and institutional investors. Today, we look forward to updating you on our progress and explaining why we remain highly optimistic about Ondas' future.

Let's turn to today's agenda. This morning, we will outline how the business is scaling across our technology portfolio, operating platform, go-to-market capabilities and financial model. I'll begin with key first quarter 2026 highlights and our progress against our strategic objectives. Neil will then review our Q1 financial results. Next, we will provide an operational update on customer momentum, global expansion and progress across our product, solutions and go-to-market road maps. We will also take a closer look at World View our multi-domain ISR road map and our work with Palantir to advance mission autonomy and layered ISR capabilities for defense and security customers. We'll close with an updated 2026 outlook and then open the call for questions.

I'm also pleased to be joined this morning by key members of our leadership team. Joining me today are Neil Laird, our Chief Financial Officer; Oshri Lugassy, Co-CEO of Ondas Autonomous Systems; and Meir Kliner, President of OAS, all of whom are well known to many of our investors and stakeholders. We are also joined by Ryan Hartman, President and CEO of World View who will provide additional insight into our multi-domain ISR capabilities and long-term strategic road map.

Neil and I will lead today's presentation and we'll aim to be efficient with your time while providing meaningful detail on the progress we are making across the business. Oshri will provide the operational update for OAS.

Let's now turn to some of the key takeaways from the start of 2026. We began the year with tremendous momentum, which we have sustained. I'm extremely proud of our performance and want to recognize our employees, partners and customers for their exceptional efforts and support. We believe we have built a highly talented and mission-driven organization at Ondas and that team is executing at a very high level.

In the first quarter, we generated more than $50.1 million in revenue, representing tenfold growth year-over-year and over 25% above the high end of our prior target. To put that into perspective, our Q1 revenue alone was approximately equal to all of the revenue Ondas generated during full year 2025. We believe that clearly demonstrates the pace at which we are scaling the business and expanding our financial model.

Revenue growth during the quarter was driven by strong performance across our counter-drone and defense-related markets, with particularly strong contributions from our Cyber-over-RF platform and our Iron Drone interceptor systems. We also saw upside contribution from BIRD Aerosystems, where demand for airborne missile defense and protection systems continues to strengthen as threats to both military and commercial aircraft increasingly evolve.

Importantly, we achieved product company level EBITDA profitability during the first quarter, approximately 2 quarters ahead of our internal plan. We believe this is another important validation point for the operating and financial model we have been building. At the same time, it is important to recognize that we continue to make substantial investments across the organization, including leadership expansion, operational infrastructure, global go-to-market capabilities and strategic growth initiatives designed to support the next phase of scale.

So while we are pleased to reach this milestone ahead of schedule, we also believe there remains significant operating leverage ahead of us as the platform continues to mature. As Neil will discuss in greater detail, our strengthening financial profile is also reflected in the continued expansion of our backlog and the strength of our balance sheet.

Following the closing of the World View and Mistral acquisitions in April, backlog increased to more than $450 million, providing significant visibility into our 2026 outlook and beyond. Our focus now is on efficiently converting that backlog into customer deliveries, revenue growth and cash flow generation. Our balance sheet also remains a major strategic advantage.

With approximately $1.4 billion in cash and short-term investments, we have substantial financial flexibility to continue investing in the business, supporting organic growth initiatives and advancing our strategic growth program. We believe that capital position gives Ondas a meaningful competitive advantage as we continue to scale the platform and pursue additional accretive opportunities. Finally, based on the strength we are seeing across the business, we are pleased to raise our full year 2026 revenue outlook to at least $390 million.

In summary, 2026 is off to a terrific start and we are demonstrating our ability to execute against our long-term objectives and financial model, which we believe is allowing us to create substantial shareholder value. Over the past year, Ondas has transformed from a small unmanned systems developer into a growing global enterprise with increasing operational scale across markets and geographies.

As shown on this slide, we now operate across 15 offices in key regions supporting engineering, manufacturing, business development, customer operations and field support worldwide. Our customer footprint is also expanding with active deployments in more than 45 countries across defense, homeland security, critical infrastructure and public safety markets. This expansion is not just geographic. It reflects the build-out of a scalable operating platform for large customers, complex deployments and long-term strategic programs worldwide. Ondas now has more than 1,000 employees globally, supporting operations, engineering, manufacturing, integration and customer delivery, positioning us to meet growing demand and keep scaling.

In unmanned and autonomous systems, leadership requires more than strong technology. It requires an integrated operating platform that can deliver mission-critical systems at scale across engineering, manufacturing, deployment, training and global support. That is what we are building at Ondas, by expanding not only our technology base, but also our operations and go-to-market capabilities. In recent months, we have significantly expanded our U.S. market reach, production infrastructure and strategic ecosystem through the April acquisitions of World View and Mistral. We believe both businesses filled key strategic gaps and accelerate the scaling of our platform, while adding differentiated technology, customer relationships, leadership, engineering talent, and operational capabilities to support growth in 2026 and beyond.

We also announced a strategic partnership with Palantir, which we see as strong validation of Ondas' capabilities and growth strategy. The partnership gives us access to Palantir's AIP stack and operational software, helping us scale internally while advancing mission autonomy and multi-domain ISR solutions. It also aligns both companies on customer opportunities, go-to-market initiatives and long-term road map development.

During the quarter, we also launched ONBERG, our Germany-based joint venture with Heidelberg, initially focused on Germany and Ukraine with broader European expansion over time. As defense and security markets increasingly require localized manufacturing, sovereign alignment and regional operating capabilities, we believe ONBERG strengthens our position in the European defense modernization cycle and across EU and NATO markets. As our global operating platform grows, so do our customer reach, talent base and ability to deliver integrated Systems of Systems solutions at scale.

In the last 12 months, Ondas has significantly expanded its opportunity set and addressable and obtainable markets. We are now positioned across 4 major defense technology verticals, including Counter-UAS and Aerial Security, ISR and Surveillance systems, Loitering Munitions and Autonomous Strike systems and Unmanned Ground Robotics. Within our Aerial Security and Counter-UAS vertical, our portfolio now includes the Sentrycs Cyber-over-RF platform, the Iron Drone Raider interception system, [ InSightSense EOIR ] sensing technologies and BIRD Aerosystems Airborne Missile Defense and Protection systems.

Our ISR portfolio includes World View Stratollites, the Optimus Autonomous Drone platform and Rotron UAV systems, providing capabilities spanning tactical to high altitude persistent intelligence and surveillance operations. In Loitering Munitions and Autonomous Strike systems, we now include the Rotron's SkyLance and Defender platforms, the Rift Dynamics WASP system and related border security and autonomous response infrastructure capabilities. Of course, Mistral is additive here with a broad lineup of both ISR and strike capabilities being deployed with U.S. defense customers.

In ground robotics, our portfolio includes Roboteam and Apeiro Motion UGV platforms, INDO Earth's Heavy Military Engineering and Support capabilities and 4M's de-mining and land intelligence operations. These markets are huge and global and rapidly growing, and Ondas is building a very impressive set of capabilities to deliver effective and mission-ready capabilities, satisfying our customer road maps.

What is important here is not simply the expansion of the portfolio itself, but the evolution of Ondas into a broader multi-domain autonomous systems platform. We will be introducing new Systems of Systems capabilities over the course of 2026. This includes our newly introduced IRON-WAVE platform, which I will highlight in just a moment.

As I mentioned, we are increasingly integrating our technologies into Systems of Systems deployments aimed at some of the fastest-growing segments of the global defense and security market. This includes a range of new platforms that connect aerial and ground domains with integrated sensors and AI-enabled command and control capabilities. We have a number of these platforms underway, and we will share updates as development progresses through 2026.

One example is IRON-WAVE, a newly introduced Systems of Systems platform featured in this video. IRON-WAVE is a combat-proven multilayered robotic solution built around a mobile UGV platform that integrates multiple autonomous systems to support maneuvering forces in complex operational environments. It includes a mobile containerized unit for remote operations, enabling rapid deployment and sustained frontline support while bringing multiple Ondas technologies together in a unified operational system. The platform provides both aerial defense and offensive support, combining CUAS detection and neutralization against multiple drone threats with both ground and aerial assault effectors.

IRON-WAVE is powered by an AI-assisted mobile command and control center with secure communications, onboard power and advanced operational management software for coordinated multi-domain missions. The UGV can also deploy smaller robotic systems to investigate confined spaces in complex environments more safely for reconnaissance and operational control. Ondas provided the initial IRON-WAVE systems to combat units during the first quarter, and they are now operational with multiple military units in active combat environments. The system has received strong feedback for improving mission effectiveness, enhancing force protection and helping protect troops during combat operations. We are very happy with this introduction and think IRON-WAVE and our Systems of Systems pipeline is both differentiating Ondas and expanding our addressable markets.

That concludes our introductory comments. I will now hand the call to Neil to provide a detailed financial update.

Thank you, Eric. We are pleased to report strong first quarter 2026 results that mark an inflection point in the growth of the business, both organically and through our strategic growth program. These results validate our strategy, demonstrate the strength of our core business and highlight the scalability of our operating model as we prepare for a significantly larger phase of growth.

Revenue in the first quarter was $50.1 million, a tenfold increase year-over-year and up 66% sequentially from the fourth quarter 2025. This performance was 25% above the high end of our prior Q1 targets and reflects strong demand across our Ondas Autonomous Systems segment. Gross profit was $24.7 million, representing a 49% gross margin, a significant improvement from 35% in the prior year and 42% in the fourth quarter 2025. This reflects both favorable product mix and the benefits of scaling revenue across our cost base.

Operating expenses increased to $67.3 million, driven primarily by investments in personnel and infrastructure to support the scaling of our operating platform as well as increased activity related to our acquisition program. We view these investments as both intentional and necessary to support the significant revenue growth we expect in 2026 and beyond. Let me briefly address the movement in other expenses during the quarter, which was primarily driven by noncash accounting items.

As a result of the structure of the October 2025 and January 2026 financings, certain warrants are required to be classified as a liability and a mark-to-market each reporting period using a Black-Scholes valuation methodology. In the first quarter, this resulted in a noncash gain of approximately $389.5 million, which is reflected in other income. As a reminder, this charge is purely accounting-driven and does not impact our cash position, operations or the underlying economics of the business. We expect this line item will continue to result in variability in our reported earnings going forward.

We also had several other noncash items, including a $51.5 million accounting gain on the deconsolidation of Ondas Networks due to the capital restructuring of that company in January of 2026. Other key items to note in other income include $12 million in interest generated primarily by interest earned on our cash balances following our recent capital raises and a $46.2 million noncash charge to adjust the value of an acquired variable interest entity. We believe it is important for investors to focus on the underlying operating performance of the business, where we are seeing strong revenue growth, significant backlog expansion and continued execution of our strategic plan.

Cash operating expenses were $36.9 million. A summary of cash operating expenses was included as a table in our earnings release and as an appendix to this presentation. Net income for the quarter was $362.9 million, driven by the $389.5 million noncash gain related to warrants discussed above. Adjusted EBITDA was a loss of $10.9 million compared to a loss of $7.5 million in the prior year.

Overall, the financial results reflect a business that is scaling rapidly, investing ahead of growth and beginning to demonstrate the operating leverage embedded in our model. This level of growth reflects the high demand signal from customers, strong execution in our core business and the early impact of our strategic growth program.

Now turning to our cash flow and capital position. We ended the first quarter with $1.48 billion in cash, cash equivalents, restricted cash and short-term investments compared to $616.1 million at the end of 2025. In addition, the company holds long-term investments of $42.3 million, up from $35.6 million at the end of 2025. We believe this large cash balance provides us with significant financial flexibility to execute our growth strategy.

Cash used in operating activities for the first quarter was $51.3 million compared to $6.7 million in the first quarter 2025. This includes approximately a $47 million increase in working capital to support expected revenue growth. Cash used in investing activities was $474.2 million, the majority of which approximately $429.1 million was for the purchase of short-term investments net of maturities and another $31.8 million deployed into acquisitions as part of our strategic growth program.

In addition, we invested $5 million in the quarter in long-term equity investments. Our short- and long-term investments are aligned with our broader platform strategy. They support key partners, enhance access to critical technologies, improve supply chain efficiency, and we believe will generate attractive returns over time. Cash provided by financing activities was $968.5 million, primarily from our January equity offering throughout the year, along with proceeds from warrant and option exercises.

Looking ahead, we expect cash efficiency to improve over the course of 2026 as revenue and gross profit scale. We continue to expect higher cash usage in the upcoming quarter, reflecting continued investment ahead of growth. In particular, the second quarter will have a step-up in spending related to the acquisitions that occurred year-to-date, many of which only closed late in Q1 or early in Q2. As we move through the second half, we expect to see meaningful improvement in adjusted EBITDA losses driven by operating leverage, particularly within our OAS segment.

Turning to the balance sheet. We believe Ondas now has one of the strongest balance sheets in the sector, and this is a key competitive advantage as we scale the business. We ended the quarter with $1.48 billion in cash, cash equivalents, restricted cash and short-term investments. This provides us with significant financial capacity to execute on both our organic growth and strategic initiatives. At the same time, the company carries virtually no debt. The previously discussed warrant liability was recorded at $1.1 billion at quarter end. And again, we expect our warrant liability will continue to result in variability in our reported earnings going forward.

Quarterly changes in this measure will result in noncash impacts on our GAAP net income. As a result of all the factors discussed, our shareholders' equity has increased to approximately $1.078 billion compared to $441.8 million at the end of 2025. So overall, we've significantly improved both the scale and the quality of the balance sheet, positioning the company with financial flexibility and cost of capital advantage to support our growth strategy. With that, I'll turn the call back over to Eric.

Thank you, Neil. As we execute our Core + Strategic Growth Program, we are seeing our financial model scale very quickly. As the P&L matures, it's important for Onda' to be transparent and communicative about how we are prioritizing our OpEx investments. I choose the phrase OpEx investments very carefully because that is exactly the way we look at our OAS and Ondas Inc. level growth OpEx. These are investments designed to support a much larger enterprise.

The build-out of our OAS leadership team and growth infrastructure and the similar investment in the corporate development effort at Ondas Inc., the parent company serves to dramatically increase the scope of our business and position Ondas in leadership positions in large, rapidly growing markets. Of course, this means we can create a much larger business today and allow us to access growth tailwinds across the unmanned and autonomous systems sector globally. To provide insight into core profitability and our discretionary OpEx growth investments, we have provided the analysis here.

You can see the Ondas Inc. level OpEx, which includes traditional public company costs as well as the investments we make in corporate development and Ondas Capital. At the OAS level, we highlight product company OpEx along with the OAS leadership and infrastructure layer, which drives the global market penetration and efficient delivery of technology and services via marketing, supply chain and production and field support and services. Our commitment to you is to continue to manage these OpEx investments aggressively and focus on maximizing our ability to capture strong market positions in the segments we compete and to drive operating scale and efficiently maximize our returns on investment and profitability.

I will now turn the call to Oshri, who will provide a more detailed look at the progress we made in Q1, emphasizing how we have captured business, grown our customer and program pipeline and matured our operating footprint. Oshri?

Thank you, Eric. We have had a strong start to 2026 from a program and order capture, and we will share these details with our investors over the next few slides, starting with an emphasis on our global sales and marketing operations.

As Ondas continues to scale globally, we are significantly expanding our marketing, business development and operational infrastructure across key international markets. Today, Ondas is building a growing global presence with offices, local partners, agents and operational representatives across more than 45 countries worldwide. Of course, the addition of Mistral and World View, along with our ONBERG joint venture in Germany are very important examples of this.

Our expanding infrastructure enables us to support customers more effectively, accelerate market penetration and establish stronger relationships with defense organizations, homeland security agencies, system integrators and strategic industrial partners. Our strategy is focused on building localized market access while leveraging Ondas' integrated global operating platform. This approach allows us to accelerate deployments, support regional operational requirements and pursue larger strategic programs across multiple domains and geographies.

We believe this growing international presence is becoming a significant competitive advantage as demand for autonomous defense and security technologies continues to expand globally. This quarter demonstrates the strength of Ondas' integrated operating platform and our ability to accelerate growth across the technologies within the group. As we outlined in our last call, our operating model is structured to plug in operational and mission-ready technologies for rapid mobilization and order capture. We are demonstrating that acquired companies grow faster as part of Ondas post-acquisition, which is a powerful source of accretion in the Ondas growth model. We are now able to demonstrate evidence of this value creation with hard data.

During Q1, Airobotics delivered approximately 260% year-over-year revenue growth driven by expanded Iron Drone and Optimus deliveries and our new border infrastructure program. And Sentrycs had a very strong start to 2026, capturing $36 million in orders through April 1. That was more than the $30 million in revenue that Sentrycs generated in all of 2025. We will continue to invest in Sentrycs Cyber-over-RF solutions to capture the substantial C-UAS market opportunities in front of us.

Lastly, I will highlight 4M Defense, which after generating just $8 million in revenue in 2025, captured $80 million in tender awards with $25.8 million of initial orders against those tenders. With Ondas, 4M is able to invest in its operating footprint, which is driving the market expansion we see for their intelligent demining solutions. The key takeaway here is that Ondas operating platform enables cross-selling, integrated program capture, supply chain leverage and faster market expansion across defense, homeland security, and critical infrastructure markets. The data here is early evidence that Ondas Core + Strategic Growth Program is working to compound shareholder value creation.

We have had a strong start to 2026 from a program and order capture standpoint, which I will share some details on, starting with backlog. Our growing backlog of approximately $457 million reflects the increasing global demand for Ondas technologies across multiple operational domains and strategic regions. What is especially important is the diversification of this backlog across several key technology segments demonstrating the strength of our integrated defense tech strategy and the expanding relevance of our platforms to modern defense and security requirements.

In aerial security, we are seeing strong momentum driven by airport protection programs, critical infrastructure security and emerging anti-missile initiatives. These opportunities are increasingly focused on integrated multilayered defense architectures, combining sensors, AI, autonomous platforms and defectors. Within ISR, our backlog growth is being driven by military base protection, public safety deployments and high altitude and stratospheric intelligence solutions. We continue to see growing demand for persistent autonomous intelligence and surveillance capabilities across both defense and homeland security markets.

In the UGV segment, we are advancing opportunities around smart demining, engineering vehicles and multi-robotic operational systems. As we discussed earlier with IRON-WAVE, militaries are increasingly looking for integrated robotic solutions capable of operating in complex frontline environments. In the LMS segment, backlog growth is supported by border security, drone programs and advanced autonomous mission systems, including opportunities connected to programs such as LASSO. Geographically, the backlog is supported by strong expansion in the United States, the Middle East and additional international markets across Europe and Asia.

We believe this regional diversification positions Ondas well to continue scaling globally while supporting long-term strategic growth across our core technology segments. Ondas has won and positioned itself within several key strategic programs, representing a combined program potential of more than $1.6 billion. Here, we highlight some of the notable program wins we are delivering against. These programs position Ondas for continued expansion across defense, homeland security, border security, and autonomous warfare markets worldwide with significant long-term growth potential across multiple operational domains.

These programs demonstrate our ability to compete for and support large-scale defense and homeland security initiatives requiring advanced autonomous technologies, robotics, ISR and strike capabilities. In the UGV domain, we are supporting opportunities related to smart demining and engineering vehicle programs, including border security barrier projects and military engineering platforms. These programs represent growing demand for autonomous robotic systems capable of operating in high-risk and contested environments while improving force protection and operational efficiency.

Within the LMS segment, we are advancing several major autonomous drone and strike infrastructure opportunities. This includes participation in the U.S. [ LASSO ] program focused on low altitude stalking and strike ordinance capabilities, where the total program potential is estimated at nearly $1 billion. We are also pursuing border protection initiatives, leveraging autonomous drone swarm infrastructure and long-range autonomous strike platform opportunities connected to NATO Eastern flank defense requirements.

These programs reflect the increasing global demand for scalable autonomous systems capable of persistent surveillance, coordinated operations and long-range mission execution. Looking ahead, Ondas is continuing to build a strong global pipeline of strategic programs and tenders across multiple operational domains. Today, our active pipeline represents approximately $4.3 billion in opportunities across more than 45 submissions globally, reflecting the increasing demand for autonomous defense, security, ISR and robotic technologies. We believe this pipeline positions Ondas for significant long-term expansion over the coming years.

Regionally, the United States and Europe represent the largest portions of the pipeline with approximately $1.8 billion and more than $2 billion in active opportunities, respectively. We are also advancing multiple strategic programs in Israel and additional international markets. Overall, we believe this pipeline reflects the growing relevance of Ondas' technologies across modern defense and homeland security markets while demonstrating our ability to compete for large-scale global programs across multiple operational domains, and we are working hard to maximize our win rate. I will now turn the call back to Eric.

Thank you, Oshri. Let me now turn to World View and our broader multi-domain ISR strategy. As you know, we introduced World View on our last conference call and completed the acquisition on April 1. Combined with Mistral, these acquisitions have significantly expanded our U.S. market presence and strengthened our operational and commercial scale across defense, homeland security, public safety and critical infrastructure markets. Importantly, World View has accelerated our multi-domain ISR road map, particularly in combination with our strategic partnership with Palantir. I'd now like to hand the call over to Ryan Hartman, who will discuss our ISR strategy, the World View platform and how Adaptive Agentic AI and mission autonomy are shaping the next phase of the Ondas platform. Ryan?

Thank you, Eric. As technology and use cases mature, we have seen the stratosphere has quickly evolved from interesting to required in modern ISR planning, especially when customers are building integrated multi-domain concepts. World View is seeing that shift show up as pull, not push. In practical terms, recent mission performance is converting into real account expansion and a higher volume of active RFPs and late-stage contracting conversations.

The Department of War is the hardest customer set to break into for a reason. The bar is operational credibility, endurance, reliability and mission integration. This is exactly the bar we designed Stratollites to clear, and we are now clearing it in ways customers can validate. Two examples. First, UNITAS in fall 2025. We demonstrated a stratosphere of persistence in a maritime operating context for Smartronix and 4th Fleet under the Marlins contract. The result is ongoing engagement tied to potential follow-on support for hybrid autonomous U.S. maritime efforts against narcotics trafficking and illegal fishing.

That matters because success in that problem set tends to become programmatic and durable. Second, Dorado in spring 2026. A 39-day mission in the Atlantic moved quickly from prove it to contract it. That performance has directly translated into advanced contracting discussions and several active RFPs for World View to be a long-term high altitude balloon provider for SATCOM and CENTCOM AORs. World View has also been down selected by both U.S. and international defense ministries for advanced sensor development and flight testing for missile defense applications.

Beyond these initial programs, we're seeing the opportunity set broaden significantly. Interest and meaningful engagement in stratospheric ISR has been growing throughout the Department of War across all key combatant commands and military branches alongside increasing engagement for major defense primes as they've designed integrated multi-domain solutions. In parallel, allied foreign Ministries of Defense across Australia, Canada, Mexico, Peru, Ecuador, Guatemala, Saudi Arabia, Indonesia and others are actively exploring how Stratollites can provide persistent advantage.

These opportunities are concentrating around contested maritime environments such as the Gulf of America, the Eastern Pacific and the INDOPACOM region as well as global hot zones like the Middle East. Collectively, this reflects a growing recognition that stratospheric persistence is becoming a foundational layer in modern defense architectures. As customers seek a unified intelligence ecosystem, the stratospheric layer is increasingly being specified as part of that design.

Now I want to build on what Eric framed and give investors a precise understanding of why SkyWeaver is a portfolio level asset, not a platform-specific one. That comes down to a critical distinction, platform autonomy versus mission autonomy. Platform autonomy lives at the vehicle level. It's about flying itself, managing faults and staying on station without a pilot. That work is essential, but it's table stakes. It's fundamentally a cost and reliability story and every serious defense platform is pursuing it.

Mission autonomy lives at the intelligence layer. It's the ability to perceive the operational environment, reason over what matters, coordinate action across platforms and deliver finished intelligence without waiting for a human to close every loop. That's not a cost story. That's a strategic outcome story, and it's what customers are demanding. The key insight is this. Platform autonomy is locked to the platform. Mission autonomy is not. It lives in software. And because it lives in software, it can run across every platform in the Ondas portfolio. That is the architectural significance of SkyWeaver.

SkyWeaver is Palantir's artificial intelligence platform deployed at the edge as an intelligence operating layer. It sits above our stratospheric platforms, our aerial systems and our ground systems, ingesting what they observe, reasoning over it in real time and coordinating action across the fleet. Consider the breadth of that fleet. Ondas operates stratospheric balloon platforms through World View. We operate fixed wing and rotary unmanned aerial systems through Ondas autonomous systems. We operate ground-based counter-UAS and surveillance systems. Each of these platforms collects data in a different domain at different altitudes with different sensor modalities.

Without SkyWeaver, each of those platforms produces a data stream that requires a human analyst to synthesize, interpret and act on. With SkyWeaver, those data streams are fused automatically. The system reasons across domains simultaneously. A stratospheric platform identifies an area of interest. SkyWeaver tasks the UAS for a closer look without waiting for a ground operator to make that connection. The UAS data refines the picture. SkyWeaver updates the intelligence product and delivers it to the customer's Palantir Foundry environment already correlated and contextualized.

This is the difference between a portfolio of platforms and an integrated intelligence system. SkyWeaver is what makes Ondas the latter. What differentiates SkyWeaver is Adaptive Agentic AI. The term agentic AI is in wide use right now. So let me be specific about what it means in our context. This is not a system that generates an answer and stops. Agentic models and our architecture run continuously and operate on 5 principles. They perceive, reason, plan, act and adapt. It uses real tools, it takes real actions, it does not wait to be prompted.

Let me explain these 5 principles. First, perceive. SkyWeaver ingests sensor data continuously from every connected platform across all domains simultaneously. Stratospheric long dwell collection, aerial close look, ground-based perimeter monitoring, it holds all of that in one common operational picture.

Next, reason. Palantir's AI models evaluate what is observed against mission parameters, known patterns of life and threat indicators. They score significance across the full multi-domain picture, not just what any signal platform can see.

Next plan. The system autonomously optimizes collection strategy across the fleet. Which platforms reposition, which sensors should retask, which domain requires increased coverage. These decisions are made against the mission objective, not against platform health alone.

Next is ACT. SkyWeaver executes cross-platform tasking, generates geospatial intelligence products, triggers alerts and populates the customer's Palantir Foundry environment with finished correlated intelligence ready for analyst consumption.

Last is adapt. When the environment shifts, when a platform goes offline, when a new area of interest emerges, SkyWeaver reoptimizes across the remaining fleet in real time without requiring operator intervention. This is the capability that matters most when communications are degraded and human reaction time is too slow. Defense and intelligence customers execute every ISR platform using the TCPED cycle: tasking, collecting, processing, exploiting and disseminating. The question they are always asking is how much of that cycle requires human labor and how fast can it execute under operational stress.

Legacy ISR architectures automate collection and stop there. Everything downstream of collection still requires human operators pulling data to the ground, running it through exploitation tools and manually producing finished products for analysts. This is a slow, people-intensive process. It is the exact latency that adversaries are designed to exploit. SkyWeaver automates the full TCPED chain across the Ondas fleet: tasking, collection, processing, exploitation and dissemination, all run through a shared intelligence layer.

Instead of raw feeds and delayed analysis, customers receive correlated decision-ready intelligence, always multi-domain and always current. No single platform ISR provider can offer that. This is the structural advantage of having an AI intelligence layer that spans the portfolio. The commercial implications of this architecture are significant, and I want to be direct about them. First, SkyWeaver changes how we price. Platform autonomy is priced on hardware and flight hours. Mission autonomy is priced on intelligence outcomes delivered. That shift from a hardware and services model to an outcomes and software model compresses the cost curve while expanding revenue per mission significantly.

Second, SkyWeaver scales with the portfolio. Every new platform Ondas brings to the market is a new node in the intelligence network. The value of the network grows with each addition. This is a compounding dynamic that a single platform competitor cannot replicate. Third, SkyWeaver creates switching costs. Once a customer's operational architecture is built around Palantir Foundry and led by SkyWeaver-enabled Ondas platforms, the intelligence products, the workflows and the analytical infrastructure are all integrated. This is not a program. This is an operational dependency.

SkyWeaver is the reason our platforms become more valuable together than they are separately and more valuable to the customer over time as the fleet grows. Initial integrations across the Ondas portfolio are targeted for the fourth quarter of 2026. We are on plan, and we expect to share program-specific milestones as we progress.

The fastest way to build a defensible advantage in this market is execution velocity, and the Palantir partnership is increasing our speed on multiple fronts at the same time. First, we are building a suite of AIP applications that connect how we plan missions, manage programs and operate fleets. The work is already improving operating cadence because teams are moving through shared auditable workflows instead of stitching together disconnected tools.

Just as important, through our deployment of Warp Speed, we are enhancing efficiencies and scalability across critical operations, which will ultimately be deployed across Ondas. These AIP applications developed via Warp Speed will also enable us to integrate acquired companies faster. With Palantir, we have built agents that integrate ERPs, MRPs, engineering workflows and financial workflows. This means within days of closing an acquisition, we can deploy agents and start realizing efficiencies and synergies within weeks.

Second, we are pairing build with capture. We are coordinating joint customer engagement and program pursuits, so the platform story shows up consistently in how we qualify opportunities, share requirements and compete. That matters because integrated ISR programs are won as architectures and operating concepts, not as one-off payload demonstrations.

Third, we are coordinating strategic growth. The partnership is helping us define repeatable integration patterns that make future acquisitions easier to absorb into a common operating layer faster and at lower friction. The important point is the time line. We only started working with Palantir in January, and we have already moved from road map to deployed capability in a matter of weeks. Each release improves internal efficiency, strengthens our data foundation and accelerates the next release. That compounding cycle creates a moat. It is difficult to replicate quickly because it combines software, workflows and operational learning, all tied into real missions and real customer needs.

Eric, I'll hand it back to you. Thank you.

Thank you, Ryan, for providing the deep insight into our software and AI development. As Ryan outlined, Adaptive Agentic AI will be a force multiplier to transform autonomous ISR platforms into autonomous intelligence systems with massive benefits to efficient decision-making and superior outcomes. I am happy Ryan was able to share this update and encourage our investors to watch where we take this capability going forward.

Let's now turn to our outlook for the balance of 2026. I will start with providing an update on our strategic growth program. We will touch on our capital allocation priorities and then provide an updated outlook for our P&L targets. So far in 2026, we have closed 5 important transactions, and our pipeline remains highly active with multiple opportunities in advanced stages of diligence and negotiation.

As shown on this slide, the current pipeline represents more than $500 million in potential annualized revenue opportunity. Importantly, we believe our strategic growth program is highly accretive to shareholder value. This is not simply about adding revenue. We are acquiring differentiated technologies, strong leadership teams, customer relationships and operational capabilities that strengthen the broader Ondas platform. As we integrate these businesses, we believe we create what we have described as a double dip of value creation, benefiting from the acquired company itself purchased at an attractive valuation while also accelerating growth through the scale and reach of the Ondas operating platform.

I also want to address a narrative we occasionally see suggesting Ondas is simply buying revenue and the acquisitions are financially oriented and dilutive without creating economic value. We fundamentally disagree with that narrative, which we think demonstrates highly superficial analysis. It totally disregards the technology platforms, the operating scale and ecosystem development and the financial outcomes inherent in our strategy.

In my opinion, the economic value we are creating is significant and compounds over time in a very powerful manner. We believe we are demonstrating that. And of course, we need to continue to demonstrate that to you, and I believe we will. It's only been a few quarters since we launched our strategic growth program, and the data suggests we have the right strategy and financial model.

Looking ahead, the pipeline continues to mature significantly, particularly in the United States. The additions of Mistral and World View have materially strengthened our ability to pursue larger and more strategic opportunities tied to our multi-domain ISR road map and broader Systems of Systems strategy. As we evaluate opportunities going forward, we remain disciplined and focused on transactions that expand our operating scale, strengthen our technology leadership and deepen the strategic value of the Ondas platform. In short, we believe our Core + Strategic Growth strategy remains a powerful driver of long-term shareholder value creation, and we are highly confident in the direction of the business as we continue to scale.

I want to spend a few minutes discussing our capital allocation strategy and why we believe our balance sheet represents a significant competitive advantage for Ondas. As we have discussed throughout this presentation, exceptional technology is essential to winning in our markets, but technology alone is not enough. Customers increasingly require scaled operating platforms capable of delivering, supporting and sustaining mission-critical systems globally.

At the end of the day, we believe the companies that win in defense and security markets will be those that combine differentiated technology with strong go-to-market infrastructure, operational scale and efficient access to capital. Building that type of platform requires substantial resources and long-term investment capacity. We view our balance sheet as a strategic asset and a powerful lever for growth. It is highly valued by customers, employees and strategic partners, and it is increasingly opening larger and more impactful opportunities for Ondas across the market. Importantly, we intend to put this capital to work thoughtfully and strategically on behalf of shareholders.

First, we will continue investing in the operating platform to support growth and scale the business efficiently. Second, we will continue executing our strategic growth program. Based on our current capital position, we estimate that Ondas has the capacity to support more than $4.2 billion of M&A activity, assuming an approximate 2:1 equity to cash structure. Using target acquisition multiples of approximately 2.5 to 4x projected 2027 revenue, that translates into the potential to add between $1 billion and $1.8 billion of incremental annualized revenue as our M&A capacity is deployed.

Importantly, this strategic growth opportunity will be incremental to the large and rapidly growing business we have already built today. We believe this demonstrates the scale of the opportunity in front of Ondas and our ability to accelerate our leadership position across critical defense, security and autonomous systems markets while continuing to build a powerful financial model. At the same time, we will remain disciplined. Maintaining a strong balance sheet is integral to our strategy, our credibility and our long-term success, and we believe it will continue to be highly valued by customers, partners and investors alike.

Let me now turn to our updated outlook for 2026. Based on the strong start to the year and the momentum we are seeing across the business, we are increasing our 2026 revenue target to at least $390 million, up from the $375 million outlook we shared just 7 weeks ago. We believe we have strong visibility into this target, supported by our backlog of over $450 million and a growing global customer pipeline. We also expect our strategic growth program to be meaningfully additive to the outlook during the second half of 2026.

As shown on the chart to the right, we expect revenue contributions across all of our major platforms and market verticals. We currently expect aerial security and ground systems to represent the largest contributions, though we continue to see strong demand trends across the broader systems of systems portfolio. As many of you know, building a strong long-term financial model is critically important to us. We believe shareholder value creation ultimately requires not only rapid growth, but also substantial profitability and strong returns on capital over time.

At the same time, we are operating in very large and rapidly expanding markets, and we believe it is important to continue investing aggressively in the growth opportunity in front of us. As we discussed earlier, we are very pleased to have achieved EBITDA profitability at the product company level 2 quarters ahead of our prior expectations. We currently expect product company profitability to continue through 2026 and beyond, although quarterly results may fluctuate based on product mix and investment priorities.

Importantly, this progress allows us to accelerate our expectations for profitability at the broader OAS level as well. We now expect OAS to achieve EBITDA profitability in the first quarter of 2027, 6 months ahead of our prior target. At the Ondas Inc. and OAS levels, we do expect operating expenses to continue increasing during the first half of 2026, as we invest in leadership, infrastructure, systems integration and operational scale to support a much larger enterprise. We believe these investments are essential and will drive meaningful operating leverage as revenue continues to scale.

Overall, we believe our outlook reflects a business with strong visibility, accelerating momentum, improving financial performance and multiple opportunities for upside through 2026 and beyond. More broadly, we believe the unmanned systems and autonomy markets are transitioning from development to scale deployment while still remaining early in what we expect to be a long-term global adoption cycle. We believe that creates a generational opportunity for leaders in the space and reinforces our conviction in the Core + Strategic Growth strategy we are executing today. With that said, I want to thank you again for spending the time with us.

Operator, we will now move to take investor questions.

[Operator Instructions]

And our first question for today will come from Austin Bohlig with Needham.

Congrats on the solid results. Eric, I just first had a question regarding the organic growth rate. Really strong growth in the Airobotics business, 260% year-over-year. Is that how we should think about organic growth rate? Or how do you guys think about it?

Austin, thanks for the question. So the way I'm thinking about it is core growth is very strong, and I think we're going to be able to show you metrics like that as we're moving through the year. Another metric I'll share, which we didn't put into the prepared remarks was our sequential growth.

And I highlight that because in Q1, we were comping against a portfolio that included new companies such as Sentrycs and the sequential growth was 32.8% Q1 versus Q4. Some more context is, I'll recall, we may have discussed this on our last call that the pro forma revenue for all the companies we owned at the end of 2025 as if we -- pro forma as if we owned them on day 1, so for the full year, it was $90 million. And if you remember, at our analyst meeting in January, we had an initial guidance for $175 million on the year. We're outperforming that. So you can kind of think of core growth as 100% starting in the year. And like I said, we're trying to do better. So that's the way I would look at it, Austin.

All right. And then I guess just my follow-up is, looking at the larger backlog number, kind of one, how should we think about that translating into revenues this year? And then secondly, it seems like a big bulk of that backlog number is related to the Mistral acquisition and the sizable UVision contract you guys have. How do you guys think about that big almost $1 billion contract translating over the next couple of years?

So that remains to be seen, of course, but we do think that is a well-funded program and the customer has need for reorders. I think if you look at our guidance here or the targets, I should say, we plan conservatively there. And then specific to Mistral, and I'd also add that the quarterly cadence here, I think we'll see strong sequential growth quarter-over-quarter for Q2, Q3 and Q4. At the moment, it's really hard to be precise about that.

The next question will come from Amit Dayal with H.C. Wainwright.

Congrats on all the progress. Amazing to see so many things coming together for you guys. One question on the gross margin strength, Eric. Is the gross margin strength in the business model coming from being able to sort of customize each solution for the customer versus just having sort of a standard set of features?

Yes, for sure. I think that's part of it. At the same time, let me just also add firstly that we're still expecting gross margins to be volatile quarter-to-quarter. And that is based on mix and the need for us to still drive scale across the company and efficiencies. So we're seeing that. We had a good quarter for sure on the margin side, and we expect that our targets we've shared with you previously for better than 50% gross margins, hopefully trending higher towards 60% as we do scale, we can achieve.

But I do -- I'd also add that in your question as we're bringing Systems of Systems together in these total solutions, that is valuable, and that does allow us to drive margins higher over time. So I think that's going to be part of the equation. And we certainly endeavor to add more software to our portfolio, and that will help as well.

Just a follow-up, I guess, is, are you targeting a certain percentage of revenues as your adjusted EBITDA results going forward? I mean, I know things are still in motion and you are still sort of normalizing operations, et cetera, and that could take time. But is there sort of a target range where you might want to come out over the next few years with your adjusted EBITDA expectations?

Yes, for sure. I think we're all day long, still focused on getting those to the 25% to 30% level. And of course, we have to drive scale and efficiencies across the business. So -- but at the same time, we've been quite clear that we're investing in the business and the infrastructure and the growth platform to capture markets, and we think the reward to do that is significant because there's a massive market to penetrate and there's some big companies and big important companies to build, we endeavor to be one of those.

So I think in the near term, at least, and we'll keep giving you updates on this, of course, the objective is not to show massive profitability. The objective is to capture those markets. And as we do, that's going to lead to a much larger enterprise and a much more profitable company as we -- as the markets grow and mature.

The next question will come from Jonathan Siegmann with Stifel.

Since the last update in early February, we've had some developments in the Middle East. It's an important region for you. Could you maybe talk a little bit about some of the push-pull of creating new urgent demands and replenishment and potentially customers over there being distracted? Does that slow thing down? And any kind of operational difficulties of the team operating during an active war zone?

Yes. So great question, and I'll start with the last part of it. Clearly, there's operational challenges. It's not just about producing and delivering what we do. Our employees are often called to serve when conflicts heat up. So that's a challenge. At the same time, we are a mission-driven company, and I'm really proud of how our team can rally around this and support each other and still drive the business forward because it's critical to what we do. And I'd also add, and again, this is not easy, but this is not a new environment for us. So we're used to working under this pressure. And again, I'm really proud of the team.

In terms of demand, we've certainly seen demand strength and opportunities in the Middle East and Israel. And I think that's not necessarily adding to the near-term revenue. I think what you'll see us continue to do as appropriate is to prioritize these urgent needs for the customers who are faced with conflict in securing their countries and their population. So that's how some of those dynamics are playing out.

And then maybe over here in the U.S. with Mistral now in the fold, congratulations for that. Maybe can you provide a sense of what existing Ondas products could be produced there? And what's the sense of -- what does 46,000 square feet give you in terms of revenue capacity at that facility?

Yes. Great question, John. And I don't have that number in terms of capacity other than I'd say we certainly could fill it, and we're going to be looking to potentially expand that capacity with Mistral. And of course, we're also using other partners and supply chain folks to help support our growth. I think for Mistral, when we're talking about localizing the technologies at Ondas that have been developed and matured in Israel, we're really focused on probably out of the gates here, the counter-drone systems and some of the ground robotic systems we have.

The next question will come from Max Michaelis with Lake Street Capital Markets.

Great quarter. First one for me. You went over in the presentation, I think it was 45 programs for a potential program revenue of $4.3 billion. Can you help give us a sense of sort of what the internal expectations in terms of like a win rate around those programs are? I'm sure you guys are a good fit for all of them, but sort of give us an idea on what we could expect or what you guys are expecting out of those 45 programs.

Yes, Max, it's a good question, and it's really hard to be precise because it is a diversified target list there. And each one has a different PWin, as you know. I think what we'd like to do is, as we're moving through the year, give you a little bit more granular detail on that as we're progressing and maturing the companies that are joining our portfolio.

Okay. Perfect. And then just with Mistral and that closing, can you kind of give us an idea on how some of the conversations with the DoW and then special operations have evolved since you guys completed that merger?

Yes, sure. I think this is just business as usual, firstly. And secondly, what we communicate to customers and partners is that Mistral is now an even better partner with more resources, and we're investing in outcomes with these customers. So I think the feedback and the response we're getting from the marketplace has been very strong.

The next question will come from Mike Latimore with Northland Capital Markets.

The SkyWeaver program is very interesting. Can you help clarify a little bit how that relates to like Maven? It feels like Maven is part of mission autonomy as well. So just kind of maybe think of how SkyWeaver would relate to a Maven platform. And then as you talk about charging for outcomes versus maybe the traditional point product route, how much do deal sizes expanding?

That's great, and I'll ask Ryan to answer that.

Yes, great question. So when we think about SkyWeaver and how it relates to Maven, what we're focused on is creating an agentic AI solution, specifically in the intelligent surveillance and reconnaissance space and ultimately takes advantage of the Maven architecture for disseminating that integrated intelligence product. So if you think about the Ondas portfolio and having multiple domains collecting intelligence and applying agentic AI, we're producing a fully integrated and reasoned intelligence product that ultimately can be delivered fast and exactly to the right person via Maven. So when I think about it, SkyWeaver can't operate without Maven and Maven ultimately benefits from the existence of SkyWeaver.

Great. And then just charging on outcomes versus the traditional route, how much do deal sizes potentially expand?

So yes, Ryan, I'd just say -- I'd like you to expand on the business model in and around the ISR as a service. But I don't think it's necessarily outcome where we provide certain intelligence and they pay us more, right? So -- but Ryan, can you add to this?

Yes. So today, for a good majority of the ISR that's collected, especially in conflict, it's done through a COCO ISR services model, a contractor-owned, contractor-operated ISR systems. And so what we see as the opportunity is by having an integrated and multi-domain ISR solution, we can ultimately offer multiple domains via a single contract. So instead of having to contract for just stratospheric balloon ISR or tactical UAS ISR, we can offer a full domain solution or a multi-domain solution and have it fully integrated via SkyWeaver and leverage common operators, common sensors, common field support, which decreases cost, ultimately decreases price, but for us, also increases margins. So I expect that as we continue to roll out our multi-domain ISR capability, deal sizes will go up.

The next question will come from Matthew Galinko with Maxim Group.

Maybe just following up on a prior question. Eric, I think you mentioned trying to expand software content in your mix. Can you maybe go a little bit further into how you get there?

Well, for sure. And I'll ask Ryan to support this because a lot of this is in and around the ISR. But more broadly, you've seen us both internally developed software on command and control and the integration of our systems. We showed one of those systems, the IRON-WAVE in a video. And there you saw us combining our ground capabilities with aerial and counter-drone capabilities. So as we're doing that, the C2 around that becomes critically important. So -- and we're doing that in a variety of ways. Ryan, can you expand on that as it relates to SkyWeaver.

Yes. So SkyWeaver is both a product that will be deployed on Ondas platforms, but it's also a set of solutions that can be deployed on other platforms. So it creates a software product along with software licenses that increases the software revenue that will be available to us. In addition to that, we see it as one of those solutions where it's an additional item in our bill of materials that will benefit from licenses as we deploy our systems to customers and specifically through those COCO ISR services contracts. So there will be a continued set of features that are added to SkyWeaver that create additional software licenses and therefore, software gross margins through a lot of those contracts.

And Matt, I'll add that you'll hear more about this as we're moving through the year. And also in our strategic growth pipeline, we have some interesting things that we're looking at that are software related.

And then I guess my follow-up would be on IRON-WAVE. I was hoping you could -- and maybe you covered this, but is the development of that and subsequent systems sort of more reactive to customer demands? Or are you proactive? Just trying to skate to where the puck is going.

We're absolutely proactive. And we think we're -- we have opportunities to define and really lead the integration of these various domains. I'll ask Meir Kliner to share more context as to how the IRON-WAVE and other elements of this are coming together because it's not just IRON-WAVE, we have more in the pipeline to share as we're moving through the year in terms of Systems of Systems and integrated solutions. Meir?

Yes, sure. So we took most of our tech companies' technology and combined everything together under one roof. So here, as Eric mentioned, Systems of Systems, if you're talking about IRON-WAVE, so we're talking about counter-UAS -- mobile counter-UAS that integrate together, C2 as a brain...

Did we lose Meir?

Pardon me, I think we lost Meir.

Okay. All right. So I guess I'll just try to piggyback and we did talk about this a bunch, and you'll hear more. But the critical part of this is integrating them on the hardware level in a system in form factor that's effective and can be deployed. But as I started to talk about, you hear more about this OS and brain that we're creating that can be interoperable with many of the edge technologies we have. So we lost Meir, and I'm sure we'll have an opportunity to talk about this in greater detail as we're moving through the year.

And this will conclude our question-and-answer session. I would like to turn the conference back over to Mr. Eric Brock for any closing remarks. Please go ahead.

Okay. Well, thank you, operator. And as we wrap the call, I want to thank you again for spending time with us today. 2026 is off to a great start, and we are focused on sustaining that momentum throughout the year, and we look forward to providing more updates along the way. Also, as a reminder, if you're a stockholder as of April 9, the record date, please cast your vote for the annual meeting. Your vote is important, and we appreciate your continued support. Our team is now going to go back to the important work of building the company. We hope you have a great day. Thank you.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Thanks, everybody.

Welcome to the Ondas Inc Fourth Quarter and Fiscal Year 2025 Conference Call [Operator Instructions] Before we begin, the company would like to remind you that this call may contain forward-looking statements. While these forward-looking statements reflect Ondas 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 on this Periodic SEC filings and in the earnings press release issued on Monday, which are both available on the company's website. Ondas 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, Ondas 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 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. A 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 Ondas. Let me start by setting the stage for today's discussion. Simply put, Ondas is delivering a whole 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 buildout 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 as a company where strategy is translating into 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, [ Omberg ] 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 Ondas Networks and then focus on Ondas 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; Oshri Lugassy, Co-CEO of Ondas Autonomous Systems and Meir Kliner, President of OAS, all of whom are quite familiar to you.

Neil and I will lead today's presentation, and we'll aim to be efficient with your time. Oshri and Meir 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 2020, and 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 5 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 road map, and we are carrying that momentum into 2026 with a high degree of confidence. I'm excited to introduce [ Amberg, ] our European joint venture with Heidelberg, a key step in Ondas 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. [ Amberg ] is our answer to this market need. This joint venture with Heidelberg, a leading German industrial platform provides local manufacturing, engineering and life cycle support that meet European sovereignty requirements.

Heidelberg's established relationships with government and defense procurement channels across Germany and NATO align customers further strengthen our position. By combining Ondas 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. [ Amberg ] has already identified strong demand for OAS platforms, particularly in Germany and Ukraine where requirements for autonomous systems are immediate.

Strategically, [ Omberg ] enables us to participate directly in European programs as a localized provider critical to winning in this market. Financially, [ Omberg ] represents significant upside. While our current European business is growing, our forecast do not yet include new incremental revenue from Amberg. As [ Amberg ] becomes operational in the coming months, we expect it to drive meaningful growth beyond our existing targets.

Ondas holds a 51% controlling interest in Omberg ensuring we capture the value as the platform scales. So overall, Amberg is an important extension of our global strategy. Localizing our platform, expanding our addressable market and positioning Ondas 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 this 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 Andes 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 or 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 World View. The entire Ondas' leadership team, including Oshri and myself, is excited to partner with Ryan and the WorldView team as we accelerate our systems of systems road map.

Ryan is a true industry pioneer with critical experience across Raytheon and in [indiscernible] as well as serving as the UAS representative on the FAA NextGen Advisory Committee and on the FA 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 [indiscernible] 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 Ondas and excited about working closely with you and the entire leadership team across Ondas and OES. 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 World view, 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 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 Stride Spirit platforms that can remain over an area of interest for 30 days or more. We do that by using the 4 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 stratelites. Stratelites 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. Stratellites fill the gap between those 2 domains. They can deliver high 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 stratelites 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 electrooptical 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. For 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 $1 trillion golden Dome system.

We are also actively preparing for the inclusion of our technology in support of active U.S. Department of or 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 Ondas recognized independently and early. World View's vision has been to move beyond a single domain sensing company and build toward a broader, integrated multi-domain AI-powered ISR architecture. Ondas has been pursuing a highly complementary 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 road map. It is the combination of 2 companies that we're moving toward the same future from different points of strength. WorldView brings the stratospheric layer and a heritage of persistent sensing, Ondas brings complementary 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 time lines.

Customers are left stitching together fragments just to understand what is happening, let alone act on it. The operator should not have to carry which domain the data came from. The operator should care whether the decision is right fast and accountable. By joining forces with Ondas and through our recently announced partnership with Palantir, we are building a true system of systems, unified intelligence with 1 operational picture.

That means 1 workflow language and 1 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 that allows the portfolio of 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 1 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, Ondas brings complementary autonomous systems and power 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.

I will now hand the call to Neil to provide a detailed financial update.

Thank you, Eric. We are pleased to report strong fourth quarter and full year results, which we believe represent an inflection point in the growth of the business, both organically and through our strategic growth program. .

We believe these results validate both the strength of our core business and the scalability of our operating model as we move into a significantly larger phase of growth. Revenue in the fourth quarter was $30.1 million up 629% year-over-year and nearly 200% sequentially from the third quarter. This performance was at the high end of our preliminary guidance and reflects strong demand across our Ondas Autonomous Systems segment. Importantly, organic revenue growth was also strong, increasing 63% year-over-year, driven by continued deliveries of iron drone and Optima systems.

Gross profit was $12.7 million, representing a 42% gross margin, a significant improvement from 21% in the prior year and 26% in the third quarter. This reflects both favorable product mix and the benefits of scaling revenue across our cost base. Operating expenses increased to $36.1 million, driven primarily by investments in personnel and infrastructure to support the scaling of our operating platform as well as increased activity related to our acquisition program.

We view these investments as intentional and necessary to support the significant revenue growth we expect in 2026 and beyond. Let me briefly address the movement in other expenses during the quarter, which was primarily driven by a noncash accounting item related to our October 2025 financing.

As a result of the structure of that financing, Certain warrants are required to be classified as a liability and mark-to-market each reporting period using a Black Scholes valuation methodology. In the fourth quarter, this resulted in a noncash charge of approximately $82.2 million, which is reflected in other expenses. Importantly, this charge is purely accounting-driven and does not impact our cash position, operations or the underlying economics of the business.

The valuation of these warrants can fluctuate meaningfully from period to period based on factors such as our stock price, volatility assumptions and time to maturity. And as a result, we expect this line item to introduce variability into our reported earnings going forward.

We believe it is important for investors to focus on the underlying operating performance of the business, where we are seeing strong revenue growth, expanding backlog and continued execution of our strategic plan. I also note that this noncash charge was partially offset by approximately $10.7 million of other income, primarily driven by interest earned on our cash balances following our recent capital raises.

Cash operating expenses were $23.6 million. A summary of cash operating expenses was included as a table in our earnings release and as an appendix to this presentation. Net loss for the quarter was $101 million driven by the $82.2 million noncash charge related to warrants discussed above. Adjusted EBITDA was a loss of $9.9 million compared to $7 million in the prior year.

Overall, the financial results reflect a business that is scaling rapidly, investing ahead of growth and beginning to demonstrate the operating leverage embedded in our model. Turning to our full year results. For 2025, we generated $50.7 million in revenue, representing 605% growth compared to $7.2 million in 2024 and at the high end of our previously issued guidance range.

This level of growth reflects both strong execution in our core business and the early impact of our strategic growth program. Full year gross margin improved significantly to 40% compared to 5% in the prior year, driven by higher volumes and improved product mix, particularly in the fourth quarter. For the full year, other expense was primarily driven by the previously discussed noncash warrant revaluation related to our October 2025 financing, resulting in an $82.2 million charge for the year.

As noted, this is a mark-to-market accounting adjustment with no impact on our cash operations or underlying business performance and may introduce variability in reported results going forward. This noncash expense was partially offset by approximately $7.7 million of other income, primarily from interest earned on our cash balances.

Cash operating expenses were $53 million, net loss for the year was $133.4 million with the warrant accounting and other noncash expenses being major contributors to the increase year-over-year. Adjusted EBITDA for the full year was a loss of $31.3 million compared to a loss of $28.5 million in 2024, reflecting increased investment in personnel, infrastructure and integration to support the next phase of growth.

Now turning to our cash flow and capital position. We ended the year with $594 million in cash, cash equivalents and restricted cash compared to $30 million at the end of 2024. As Eric noted earlier, following our recent capital raise, our pro forma cash balance is over $1.5 billion providing significant financial flexibility to execute our growth strategy.

Cash used in operating activities for the full year was $38.7 million compared to $33.5 million in 2024. This includes approximately a $10.7 million increase in accounts receivable in line with revenue growth. Cash used in investing activities was $260 million, the majority of which approximately $207 million was deployed into acquisitions as part of our strategic growth program.

In addition, we invested approximately $51 million into short- and long-term investments including a number of strategic investments. These investments are aligned with our broader platform strategy. They support key partners enhance access to critical technologies improve supply chain efficiency, and we believe will generate attractive returns over time.

Cash provided by financing activities was $863 million, primarily from our equity offerings throughout the year. along with proceeds from warrant and option exercises. Looking ahead, we expect cash efficiency to improve over the course of 2026 as revenue and gross profit scale. We do expect higher cash usage in the first half of the year, reflecting continued investment ahead of growth.

However, as we move through the second half, we expect to see meaningful improvement driven by operating leverage particularly within our OAS segment. Turning to the balance sheet. We believe Ondas now has one of the strongest balance sheets in the sector and a key competitive advantage as we scale the business. We ended the year with $594 million in cash and following our January equity raise, our pro forma cash position increased to approximately $1.5 billion.

This provides us with significant financial capacity to execute on both our organic growth and strategic initiatives. At the same time, the balance sheet was further strengthened by reducing debt by approximately $41.7 million during the year, leaving only a modest debt profile at year-end held by certain subsidiaries, including Ondas networks. The previously discussed warrant liability was recorded at $489 million at year-end.

And again, this liability is expected to fluctuate higher and lower perhaps significantly quarter-to-quarter based upon Ondas share price and other value is relevant for Black Scholes valuation and quarterly changes in this measure will result in noncash impacts on our GAAP net income. As a result, our shareholders' equity has increased to approximately $441 million compared to just $17 million at the end of 2024.

So overall, we've significantly improved both the scale and the quality of the balance sheet, positioning the company with a capital flexibility and cost of capital advantage to support our growth strategy.

With that, I'll turn the call back over to Eric.

Thank you, Neil. I want to take a moment to expand on what Neil discussed regarding our balance sheet and liquidity because we believe this is a key differentiator for Ondas. We are benefiting from strong and growing investor support. That support is reflected not only in the strength of our balance sheet, but also in our continued access to capital and a clear cost of capital advantage relative to many subscale competitors in our sector.

Since June of 2025, we have raised approximately $1.8 billion. including the $1 billion financing we completed in January of this year. That January financing was led by a large U.S.-based institutional investor who knows the Ondas business well and has been a long-time supporter of the company. Importantly, the prefunded warrants associated with that financing have been fully exercised and are in the share count, and we believe the investor currently holds less than 5% of our outstanding shares.

More broadly, we are seeing continued growth in our institutional ownership base. Based on Capital IQ data, institutions now hold approximately 33% of our shares. We are actively working to further broaden that base. And we believe Andes is well positioned for inclusion in additional indices, including the Russell 2000 as we move through 2026.

So overall, we see our capital position and investor support as a meaningful competitive advantage, one that enables us to execute our strategy at scale. Let me briefly touch on Ondas' networks. 2025 was an important year for Ondas Networks, highlighted by the formal adoption of our IEEE802.16 or .16, technology by the Association of American Railroads, as the communications protocol for the next-generation head of train end of train standard.

This is a significant milestone and reflects years of development and validation, including our ongoing collaboration with MXP Rail. More broadly, the AAR has now signaled its intent to adopt .16 across all of its communications networks, which we believe confirms Ondas Networks position as a foundational technology provider for next-generation rail communications.

This is a very important development given the large total addressable market with the Class 1 rails in North America and underpins what we believe is substantial value underlying Ondas' networks software-defined networking capability and the network upgrade opportunity that will eventually accrue to Ondas shareholders.

From a commercial perspective, we are seeing continued progress with interest in 160 megahertz accelerating from many parts of the industry. We are now engaged with all Class 1 railroads and are advancing multiple infield proof-of-concept deployments particularly around 160 megahertz network applications.

These efforts are generating strong feedback, and we expect to begin converting these into commercial opportunities in the second half of 2026. At the same time, radios for Amtrak are now in production with initial deliveries expected to be completed in the first half of the year. While we are disappointed in the time lines with respect to driving network deployments with our rail customers, we continue to see meaningful long-term value in the Ondas Networks business.

As adoption of .16 expands and commercial deployments begin to scale. Of course, we are working to realize that value for our investors, and we think we will make measurable progress in 2026. Let me now turn back to Ondas Autonomous Systems and the broader platform. As we outlined at our Investor Day in January, we are executing against a clear plan across both our core business and our strategic growth program and we are making strong progress.

We've already covered our 2025 performance at the OAS Investor Day in January. So rather than revisit that, I want to focus today on how the business has evolved and transformed in the last few months. Specifically, I want to walk you through how we've expanded our technology and capabilities, how we are now positioned across multiple high-value market segments and how we have significantly broadened our operating platform.

What you'll see in the next few slides is the result of that transformation, how Ondas is evolving into a scaled multi-domain autonomy platform with the ability to deliver integrated solutions at a global level. This is where the strategy becomes visible in the platform we've built. As depicted on this slide, Andes has undergone a significant transformation in just the last 9 months.

I want to highlight the 5 new acquisitions from Q1 2026, Rotron, Mistral, Bird, Indo Earth and now World View, which have materially expanded both the scope and scale of our platform. Ryan Hartman and I shared details regarding WorldView and the strategic fit and road map earlier. We will also provide some context for the other acquired companies a bit later on the call.

But make no mistake, these acquisitions are not just additive. They are highly strategic. We are adding mission-ready technologies, established customer relationships and exceptional talent across multiple domains. This is accelerating the build-out of our systems of systems architecture and expanding our ability to deliver integrated solutions at scale as these companies are also accelerating the scaling of our operating platform.

At the same time, this transformation is having a direct impact on our financial model. We are building a significantly larger backlog, increasing our revenue base and expanding our gross profit pool, all of which support operating leverage as we scale and that operating leverage is what ultimately drives our path to profitability.

So this is not just about growth. It's about building a platform that can scale efficiently and generate strong financial outcomes over time. This is a step change in the scale and maturity of the Ondas operating and financial platform. Just 12 months ago, Ondas Autonomous Systems was primarily focused on 2 markets: ISR and counter UAS with 2 core platforms: the Optimus system and iron drone rater.

Today, that has changed significantly. Our market opportunity set has been transformed. We are now positioned across 4 high-value defense technology verticals, including Counter-UAS, ISR, loitering munitions and one-way attack systems and unmanned ground vehicles. And with the addition of World view, we've extended that capability even further into the Stratosphere, adding an entirely new domain to our aerial and ground capabilities.

So what you're seeing is a substantial expansion, not only in our technology base but also in the financial opportunities available for Ondas. We've moved from a focused set of capabilities into a broad multi-domain platform positioned to compete across some of the fastest-growing segments in the global defense market. This slide brings together visually everything we've been discussing.

Here, you can see the breadth of our aerial and ground-based platforms, combined with the software-enabled command and control layer and AI-driven applications that sit on top. What makes this powerful is not just the individual systems, it's the integration. We are building a unified platform where sensors, effectors and autonomous systems are connected through a common C2 and software layer, enabling coordinated real-time operations across multiple domains.

And with our partnership with Palantir, we are able to take that integration even further, deploying these capabilities into broader mission level systems with advanced data fusion, AI-driven analytics and decision support. So rather than offering stand-alone products, we are delivering an integrated operational capability, one that allows customers and partners like Palantir to move from data to decisions faster and to execute missions more effectively.

With that foundation in place, let me now turn to how we are scaling this platform through our strategic growth program. Over the past several months, we've announced a series of strategic acquisitions that are expanding both our capabilities and our market access. These businesses play very specific roles within the OAS platform, enhancing our technology stack strengthening our go-to-market capabilities and accelerating our ability to deliver integrated solutions at scale.

I covered WorldView with Ryan earlier in the call. Here, I want to walk through Mistral, Rotron Bird and Indo worth. And highlight how these transactions are contributing to the evolution of our financial model, adding revenue, expanding our gross profit pool and supporting operating leverage.

Importantly, we view these acquisitions as highly accretive, not only to our financial profile, but to the long-term enterprise value of Ondas as we continue to scale. Let me start with Mistral which has been a partner of Ondas since the second quarter of last year and is one of our most strategically important acquisitions. Mistral is a direct accelerant for our U.S. market expansion. It enables Ondas to operate as a prime contractor. Significantly expanding our access to major U.S. defense programs while also adding critical manufacturing and program execution capabilities. Mitral also brings meaningful market experience and customer access across UAVs and loitering munitions and ground robotics, aligning closely with the core segments of our platform.

The company has already captured programs in excess of $1 billion. which we expect to generate significant pull-through revenue. We also expect Mistral to contribute meaningful backlog to Ondas upon closing, which we anticipate in the second quarter.

Just as importantly, the straw brings deep U.S. market development expertise, helping us localize our Israeli developed platforms for U.S. requirements and accelerate adoption across defense and security customers. We expect Micrel to be a meaningful driver of revenue growth and EBITDA leverage beginning in the second quarter of 2026 and continuing as we scale our presence in the U.S. market.

Next, let me highlight Rotron Aerospace. Rotron significantly expands our aerial capabilities, adding long-range UAV platforms in the Talend platform, autonomous strike systems with the Defender and Stratos platforms and advanced propulsion technologies. This is particularly important as modern defense strategies continue to shift toward low-cost attritable mass scale autonomous systems that can be deployed efficiently and cost effectively in contested environments.

With Rotron, we are extending our platform beyond ISR into a more complete strike and effector layer. Strengthening our overall multi-domain architecture. In addition, Rotron provides a strong local presence in the United Kingdom, where it is competing for programs, including the project break stop, a one-way effector or OWE program. Rotron positions Andes to engage directly with U.K. and broader NATO rearmament programs, which are seeing significant acceleration.

So strategically, Rotron enhances both our technology stack and our geographic reach while positioning Ondas to participate in the next generation of autonomous defense systems, where scale, autonomy and affordability are critical.

Next, Bird Aerosystems. Bird adds a critical airborne protection layer to our platform with advanced ISR and counter UAS capabilities designed to protect both manned and unmanned systems. This is particularly important in today's environment. where the increasing lethality and proliferation of low-cost UAS and loitering munitions is driving strong demand for effective airborne protection solutions across both military and security applications.

At the core, our proven mission-critical technologies, including laser-based Dicom systems, which autonomously detect, track and defeat incoming missile threats in real time, providing active protection in highly contested environments. Importantly, Bird brings access to long cycle program of record defense budgets, supporting more predictable and recurring revenue streams, along with high-margin systems already deployed on leading global platforms.

Strategically, Bird strengthens our ability to deliver integrated ground to air defense architectures while contributing meaningful backlog, revenue and EBITDA as we scale the business. Finally, Indo Earth. Indoor Earth expands our ground system strategy into military engineering vehicles, providing entry into large-scale defense procurement programs with immediate revenue contribution.

This adds a scalable platform in heavy ground equipment with strong visibility into revenue and gross profit, supported by active programs and customer demand. Importantly, Indo Earth also provides a funded services platform in Israel, which we expect will support the broader OES business and drive meaningful operating expense leverage as we continue to scale our operations in the region.

Strategically, this is an important step in broadening our systems of systems architecture into the heavy grad segment, complementing our aerial and ISR capabilities. Over time, we see a clear opportunity to integrate autonomy and advanced technologies into these platforms, creating next-generation robotic engineering systems. Indoorth is a great business and financial opportunity for Ondas it not only contributes near-term revenue and backlog, but also establishes a foundation for long-term growth in autonomous ground systems.

Let me bring this all together. We believe these acquisitions significantly accelerate our systems of system strategy while driving meaningful scale in our financial model. This is exactly how we designed our strategy from the outset. The key takeaway here is the level of accretion we are generating both to our financial model and to our enterprise value.

Across these 5 acquisitions, we will deploy approximately $550 million of capital and based on our current estimates, these businesses are expected to generate approximately $230 million of revenue in 2026. We view that as a very attractive entry point, particularly given the growth profiles of these businesses and the operating leverage we expect to achieve as they are integrated into the Ondas platform.

Importantly, many of these businesses, particularly Mistral, Bird and Indo Earth have contracted revenue and/or a significant backlog, a steep revenue growth curve supported by strong industry tailwinds. And meaningful expected EBITDA generation over the next 12 to 18 months.

At the same time, Rotron and WorldView represent technology-driven platform businesses. with strong long-term growth potential as adoption of their capabilities accelerates, aided by the integration with the Ondas operating platform. So this is not just about adding revenue, it's about expanding our gross profit pool driving operating leverage and enhancing the overall quality of our earnings over time.

And importantly, we believe this model is repeatable. We are building a disciplined, programmatic M&A capability that allows us to acquire strategic assets at attractive valuations, integrate them into our platform and drive both growth and margin expansion. We look forward to demonstrating that value creation over time but we believe these transactions are already meaningfully accretive and will become increasingly so as we scale.

Let me take a moment to step back and explain how this model works and why we believe it is both highly accretive and repeatable. It starts with identifying and acquiring customer validated technology and services platforms operating in markets and categories with strong secular growth tailwinds.

In many cases, these businesses are capital constrained. They have strong products and market demand but lack the capital and infrastructure to fully scale making Ondas as an attractive partner to support the next leg of business growth and value creation that allows us to acquire them at attractive entry valuations.

At the same time, Ondas benefits from a premium valuation supported by the operating platform we've built and the capital our investors have provided. That creates a favorable dynamic where we can acquire high-quality assets at attractive valuations and integrate them into a scaled platform.

That's what we refer to as day one value creation but the more powerful part of the model is what happens after the acquisition. We see what we call a growth double dip.

First, these businesses benefit from the underlying growth in their markets. And second, they grow faster as part of the Andes platform through our go-to-market capabilities, operational infrastructure and access to capital. We are already seeing this in practice. Companies like Centrix and 4M, for example, are outperforming the assumptions we made when underwriting the acquisitions. The upside is driven by our growth double dip by virtue of their integration into the OAS platform.

And beyond the individual businesses, there is also a portfolio effect. As we integrate these platforms into a system of systems architecture and go to market with more complete multi-domain solutions, we create greater value for customers, which we believe will drive higher revenue and improve margins over time.

So overall, this is not just a series of acquisitions or a portfolio of capabilities. Our operating and financial models drive a compounding value creation flywheel, and we believe this strategic growth program will be a major driver of shareholder value in both the near and long term. Let me now turn to how this translates into our outlook. Here, we will focus on our key operating priorities and provide context on the M&A pipeline as well as update our financial targets.

Let me firstly touch on our key operating priorities as we move through 2026. At the core, we remain focused on driving order growth, expanding our backlog and delivering continued revenue growth across the business while leveraging the expanded technology base we've built. We are also continuing to invest in and advance our manufacturing capabilities to support scale and meet increasing demand.

On the technology road map, advancing the autonomous border protection infrastructure program remains a major focus. This has significant strategic and financial potential, and we expect it to be an important driver for the business as it progresses. In addition, we are rapidly developing what we refer to as a shared killer interceptor, and we are optimistic about our ability to field the competitive system in what is becoming a very important market segment.

Beyond our core road map, we have also established several new growth platforms that we believe offer meaningful upside to our current financial outlook. Importantly, we have not yet incorporated material contributions from some of these initiatives into our forecast. That includes the layered ISR go-to-market efforts with Palantir, where we are seeing encouraging early engagement and believe this could become a meaningful growth driver as programs develop.

Similarly, Amberg is actively pursuing opportunities in Germany and Ukraine. While we have not yet included revenue from this joint venture in our outlook, we are optimistic about its potential as visibility improves. So overall, we see multiple avenues for upside beyond our current plan as these platforms begin to convert into orders and revenue over time.

We will surely keep you updated on this progress. Let me spend a moment on our strategic growth program and M&A pipeline. Our programmatic M&A effort, led by Mark Green continues to be highly productive. We've built a disciplined team and process that spans technical, market, financial and legal expertise, along with dedicated post-merger integration processes to ensure we can efficiently scale these businesses once acquired.

As we continue to demonstrate execution, we are seeing increasing inbound interest, including from larger and more mature companies and their investors. We view this as strong validation of our platform and strategy. We believe our ability to source, execute and integrate acquisitions is becoming a core competitive advantage for Ondas. Our pipeline remains robust with over $500 million of potential revenue across active opportunities.

That said, our focus is not on driving the size of the pipeline, it's on quality. We are highly selective and prioritize targets that are strategically aligned, financially accretive and that enhance our systems of systems road map.

The opportunity set is much larger, and we are careful on how we prioritize and sequence our M&A activity. In terms of capital allocation, we've utilized equity in recent transactions as a way to align with sellers and reflect the value of the platform we are building. At the same time, we remain flexible.

We will deploy both equity and cash as appropriate, while maintaining a strong balance sheet. And finally, on the topic of dilution versus accretion, our focus is always on value creation. When we issue equity, the key question is what we are acquiring in return. As we've outlined, we believe these transactions are highly accretive and and we will continue to demonstrate that through our results over time. Let me now turn to our updated financial outlook.

We are increasing our 2026 revenue target to at least $375 million which represents more than a doubling of the outlook we provided at our Investor Day in January. This increase reflects upside across both our core business and the contribution from the acquisitions we have announced in the first quarter.

For the first quarter, we expect revenue in the range of $38 million to $40 million, representing strong year-over-year growth. The full impact of these acquisitions will build over time. In Q1, Bird is the only newly acquired company expected to contribute meaningfully with the majority of revenue from acquisitions ramping from Q2 through the rest of the year.

We also expect backlog to increase significantly in the first quarter, driven by continued order momentum in the core business as well as the addition of backlog from the newly acquired companies.

From an investment perspective, we will see increased operating expenses at both Ondas Inc. and OAS in the first and second quarter of 2026, as we continue to build out the team and infrastructure required to support a much larger enterprise. We view these investments as essential to enabling the next phase of growth, and we expect them to drive meaningful operating leverage over time as revenue scales.

Importantly, we are maintaining our path to profitability. We expect our product companies to reach positive EBITDA in the third quarter of 2026, followed by OAS in the third quarter of 2027 and Ondas Inc. in the first quarter of 2028. And as we begin to integrate our recent acquisitions and realize the benefits of scale, we believe there is potential to accelerate these time lines.

So overall, we believe our outlook reflects a business that is scaling rapidly with strong visibility, increasing momentum and multiple opportunities for upside as we move through 2026 and beyond. Finally, the unmanned and autonomy sectors are transitioning from development to deployment with end markets still early in a 10-plus year adoption cycle and increasing urgency for industry maturity.

This creates a generational opportunity for leaders like Andes, reinforcing our focus on executing the core and strategic growth plan. With that said, I want to thank you again for spending the time with us.

Operator will now move to take investor questions.

quarter

[Operator Instructions] Our first question today comes from Austin Bohlig from Needham.

Congrats on all the solid results. The first question I had is just given kind of the increasing conflict we're seeing in the Middle East, how has the business may have progressed or order flow or interest since that conflict began?

Austin, thank you. So without a doubt, that is driving more activity. So we're seeing more demand, more RFP, more urgency. And of course, that's also supporting the long-term thesis we have around how we're building our business and the markets and capabilities we're focused on. I'll ask Meir Kleiner maybe to give some more texture to that answer. However, Meir?

Sure. We believe we have the right products at the right time through our tech companies we are well positioned in both ISR and counter UES, which are the 2 of the most critical capabilities in today operational environment.

We have seen a very strong demand right now, particularly for the system that we are already proven and deployed around the world. By the way, looking ahead, we don't see this as a short-term dynamic.

If anything, once the corn conflicts and there will be a border recognition that these threats are not going away. So the budget for the government and defense organization is going to increase dramatically, and hopefully, we will be there to supply our capabilities with our tech companies. Thank you.

All right. And I guess just one follow-up for you guys. Really appreciate the color on kind of the revenue contribution from these recent and sizable acquisitions. For that kind of number you guys provided in the deck. Should we assume that's what's going to be recognized? Or is that kind of like a pro forma revenue number?

So we've given you the target of at least $375 million. We have quite a bit of visibility we did share some details around what I do believe and I was emphasizing our conservative outlook that we underwrote for the acquired companies in Q1 and I'd highlight that those numbers are full year outlooks. So you got to consider the fact that we're going to only be consolidating the bulk of them over the last 3 quarters of the year. So that's the way to think about the math there.

Our next question comes from Jon Siegmann from Stifel.

So the multilayered ISR, I appreciate all the details on worldview. It's been a challenge for the military and industry, just a sticky single pair of these sensors together. Can you comment a bit on how the customers are going to procure this ambitious capability? And is it possible we'll see some near-term contracts? Or is this something that on those my participators a prime? Or is this as a sub to Palantir or somebody else?

All right. Great question, John, and I'm going to ask Ryan to provide some context. Ryan?

Yes. John, great question. So in the near term, we expect contracts for the single domains and procuring intelligence surveillance and reconnaissance as a service from those domains. The strategy that we have for a service or a system of systems, will ultimately give us the ability to contract for multi-domain with single customers.

So we're seeing movement in the customer base to procure multi-domain through single sources. And the partnership with Palantir enables us to provide a portal for customers to be able to access that multi-domain ISR. So it will take some time to build out the Palantir layer of the technology. But once that's built out, we'll be able to start offering multi-domain ISR as a service to specific customers.

All right. And I'd emphasize that the state it in the Stratosphere that's operational today, and it is leveraging some of the work that WorldView has done with Palantir so we're demonstrating the value and we do believe that we're going to be able to integrate it into other layers that Ondas has and will have in the future. .

And then maybe just one on straw, great acquisition there. I think most of those are familiar with the HERO system. But our sense is it's more diversified than just that product line. You mentioned $1 billion IDIQ, which is the hero. Just can you talk a bit more about the other products they produce.

Yes, Jon, that's a great point. The Hero is an important product line and program from straw, but they do have a bunch of other active systems that they're selling and quite a lot of capabilities around that. So Mark, can you provide some more context around the other things that Mistral is bringing.

So it was hard to hear. Can you repeat on the question?

Yes. So the question there is on the straw in addition to the loading munitions, the Hero systems. The other revenue-generating platforms.

Yes, they have not only a lot ammunition, also ISR and also ground vehicle I think that we talked about it before that we work in this trial in all portfolio companies, also in the UTV and ISR done and can Worth. .

So I think it's the oral system. And this is specific in the segments that we are working. And this was one of our interest when we're talking about Yes. And now the baton not only [indiscernible]

Our next question comes from Timothy Horan from Oppenheimer.

Eric, can you give us a sense of these acquisitions, what you think the organic growth rate is? And also, can you just talk about the bottlenecks to growth? Is it go-to-market? Is it your manufacturing capacity? Is it just getting yes, any color around that? And then lastly, you have some revenue targets out there for 2030. It seems like you're kind of well ahead of schedule there? Just any thoughts on that revenue target?

Yes. So I'll start with the last observation, and I agree with that. So we are quite confident with the businesses that we've put together here, the momentum we have, the success we think we're demonstrating with the model that, that $1.5 billion target is very visible. .

So coming back to the first question, we did -- if you look at Ondas in the core as it was ending the full year pro forma revenue would have been in the $90 million to $95 million range. So clearly, we were looking for significant growth when we started the year, and we shared that $175 million target at our OES Investor Day in January. And I would say that in our increase here to 3.75, we see that core growth even stronger.

So we feel really good with our visibility, and we think the growth is going to remain significant going into '27 for shore and beyond.

And what's the bottleneck to growth? Is it -- I mean, do you have the manufacturing capacity? Do you have the salespeople? .

Yes, I don't -- I mean, there's no bottlenecks to what we've laid out. But of course, we're going to have to continue -- because we have the capacity identified and we have been building aggressively the OAS platform, which we've emphasized on this call today, and we're going to continue to do that.

We're also investing in integration so that the acquired companies can leverage the OAS platform out of the gates to its greatest extent. So at the same time, of course, this is quite a significant revenue ramp in business opportunities. So we're going to have to build the manufacturing capacity in partners as we're going forward.

We'll keep you posted on how we're doing that. But I don't think we have any unique bottlenecks, and we can deliver what we're targeting for the year for sure.

And just lastly on WorldView. Are we talking thousands of balloons in the stratosphere, ultimately, our tens of thousands, hundreds of thousands, I mean, how are you thinking about this? And can you create a cellular network off of these stratosphere filing?

Yes. Great. So Ryan, maybe you could share a couple of things a bit about the as-a-service element of this and then add some details around the various payloads that we see customers engaging in and how the markets may open further for other use cases.

Yes, happy to. Thanks for the question. So the way we operate today is we provide data and intelligence as a service. And so essentially, the way that I've looked at it in the past is data is the new oil, the more data you produce and process, the more customers you can create on a per-flight basis. .

So when we're looking at the market, we're seeing some great movement in the U.S. Air Force moving towards a program of record. We've seen stated demand that would equate to 250 flights per year just for that 1 customer. In addition to that, we're seeing movement on gold and gone where the Stratosphere is an important layer to the overall Golden Dome architecture. Our assessment is that golden done will make up hundreds of flights per year. for that specific capability.

And then when we think about kind of the broader market, those 2 specific customers would make up upwards of 450 flights per year. we see equivalent capabilities necessary for Australia, Canada and other allied partners around the world. And then we're building out a commercial capability as well. where our technology can be used for things like oil and gas pipeline monitoring, where we can be detecting methane.

And we see use cases for monitoring railways and power lines. anything that's long linear infrastructure, the Stratosphere has a unique advantage of being able to see a significant amount of that infrastructure in a single image.

And having the right sensors gives us the ability to turn the status here into a very useful asset for, like I mentioned, detecting things like methane, obstructions on railway fall in power lines or foliage encroachment on power lines, things like that.

And then on the communications question, yes, absolutely. We can provide a unique mesh networking and/or 4G, 5G connectivity from our platforms. So as we start to build out the commercial side, we'll leverage the size, weight and power of the stratelite to be able to carry multiple sensors or multiple capabilities on a single flight that ultimately increases the gross margin per flight and produces significant revenue on a single flight.

So we're quite excited about the number of use cases, excited about the growth and not just the defense market, but the commercial market as well. So to answer your question specifically, are we talking hundreds, thousands or tens of thousands, I believe that scale, we'll be operating thousands of flights per year. and something on the order of 50% gross margin on a per flight basis.

Our next question comes from Max Michaelis from Lake Street Capital Markets.

If we go back to the core business, Iron Drone and Optibet, I know you gave out guidance. I think it was last fall or summer. You talked about a $25 million and $45 million in 2025. I was curious if you can kind of update us on what that looks like now. I know just with -- I just kind of want to get an idea of sort of the organic growth rate of the original core business.

I think the -- what I'll say, Max, is that the growth rate there is similar to what I've outlined by giving the tools with the 90 to 95 core, which is essentially doubling this year. And what I'll add is that we're seeing particular strength on the counter drove side with both Iron Drone and Centrix and that's going to be growing faster than Optimis. .

Okay. And that kind of leads into my next question. I was just hoping you can kind of call out maybe some of the 2025 acquisitions, ones that are sort of outperforming your original expectations is probably just soon to calling you out on acquisitions, but anything that helps kind of around the 2025 acquisitions.

It's a good question. I think I can say we're very happy with all the companies and how they're performing. I did highlight in the prepared remarks, Centrix and Form and I've done that because those are some deals that we've announced recently during the fourth quarter. With that said, Robo team is seeing significant demand in apparel motion as well. So I'm expecting that we'll be able to demonstrate that they're outperforming as well to you this year. So we're pretty happy with the portfolio we've put together.

Our next question comes from Michael Legg from Ladenburg.

Congrats on all the success to date. Can you talk a little bit about the integration of all these acquisitions and how you're doing that internally, keeping management, et cetera? .

Yes, sure. So we have established at both OAS and the onus level, what we call PMI activity. So it's the post merger integration activities. And that's a very important part of the story there. It's making sure communications across the companies and up and down, right?

So we can get that operating leverage is optimized. So we're going to continue to invest in that PMI activity because it's critical otherwise, we're very happy with retention, and that's something we're obviously sizing up before we enter into acquisitions.

I think what we see from the companies we acquire is that there's a lot of excitement to join on to us because we're creating more opportunities for them to really grow the business that they've worked so hard to create. So I think the talent that's coming on and the way we're motivating them.

Obviously, there's compensation plans that do that properly but it's an exciting place because we're putting together this go-to-market model that makes the original objectives from these leadership teams around building their businesses, everything.

We're just creating more opportunity for them. And I think that's just going to reinforce as we continue to deliver on the operating and financial plan we have shared with you today.

Great. And then just a follow-up question. On the systems and systems approach, can you talk about how much of that you think will come from Andy's internal systems? And how much would be third-party coordinations? So if you look at the internal or the core, as I describe it, that's going to continue to grow.

So as I said on the call, if you were with us 12 months ago, we were, of course, very focused on Optimus and iron drone. As we ended the year, we had built out a UGV portfolio. We've expanded our aero platforms in Canada Drone Systems, so that becomes the new core.

And then, of course, in the first quarter here, we've added even more exceptional platforms that do expand and they deepen and expand the systems and systems capabilities.

And Ryan shared a graphic there, which I thought was really important. It showed all the layers. And we're going to begin to pull them together. So I think you should expect us to add more layers, more valuable platforms that fit that model I shared around how they become very accretive to the operating plan, very accretive to customers, right?

Customers are looking for companies like Ondas and Palantir to bring this together to make it scalable and valuable -- so we'll continue on this path.

Our next question comes from Alex Latimore from Northland.

Great information here. Thanks for putting this together. This is very vivid. My question here was regarding the acquisition cadence. I was wondering if you could step through what the acquisition cadence will look like for this year and then potentially going forward and then which capabilities are the highest priority in that pipeline, whether it's hardware, software or different manufacturing assets.

Yes. Good question. I'll start with the latter, and then I'll get to the cadence. So I think it's pretty straightforward. We're going to continue to deepen the aerial and ground capabilities.

You do bring up a good point, the C2, the command and control capabilities is another in sensors at the edge, you also see that in our strategic pipeline. So I'm expecting to be able to bring more of the table there as software enablement becomes even more valuable.

In terms of cadence, I don't -- March was an interesting month because we had a bunch of deals. Many of them had been started months before and came down and we were able to get into definitive agreements right around the same time.

So I don't -- I wouldn't measure 3 or 4 deals a month. At the same time, there is active in conversations. And they could be bunched. They could be sequenced with greater time in between. It just remains to be seen but we will continue to pursue the strategic program because it is so valuable.

Understood. And then regarding the C2 platform, I was wondering what your intentions are there? Are you planning to build or acquire a sort of single pane of glass C2 platform to connect all your systems? Or is that where Palantir comes in? And then what level of customer demand are you seeing for that.

Yes. So it's both. So clearly, if you think about the systems and then there's the systems of systems, each autonomous system has its own command to control because these can be deployed as infrastructure or for specific use cases by specific customers. .

We need to make those -- each system be able to be integrated with more -- with other systems, right? So we need to be able to plug into other command and control architectures and we're able to and then, of course, we're going through the Palantir activity, which is the broadest integration around system to system.

So you're going to start to see us -- it's really all of it. It's really at the system level, it's at, say, regional deployments and then there's the wider deployments like the Palantir Maven system that becomes really important. So there's internal development, and you'll also see us -- there's opportunities for us to bring in high-value capabilities around command and control.

And we'll see if that comes to fruition. But we don't -- we do have -- our systems are designed to be plugged and play by and large, with what the customer needs to deploy, right? So we can fit into their architecture. We can solve the problem for them or we can fit into what they need us to fit into.

And our next question comes from Matthew Galinko from Maxim Group.

Congrats on the results. Is the Amberg structure is something you can repeat in other regions? Or is it something you look to do elsewhere?

It's a good question. So yes, it's something we can repeat. I'm not sure if we will. Europe is -- was a particularly interesting opportunity for us because we have been building out our capabilities around systems, and you've heard us speak really strong about the need to be local.

And as we started to get to know Heidelberg, who is our partner and understand their capabilities, it really made a lot of sense for us to join forces. So could you see us do that in other markets?

I think so, but maybe we'll see how we proceed with Omberg first. I don't see another market with as the same significance to do a joint venture as we do with what we're doing with OBC.

0Got it. And my follow-up is, as we look towards 2028 for positive adjusted EBITDA. Can you kind of point to where we'll see OpEx leverage, kind of what line items? Like are we going to continue to see R&D kind of steady with integration and then program development or kind of where will we see the leverage hit? .

Great question, and it's going to be hard for me to be specific. I do think R&D, we're going to continue to invest there. And I don't have a target at the moment for what that is going to be as a percentage of revenue. I think we're going to get sales and marketing and supply chain leverage.

We're going to get gross margin leverage. So the thesis here, and I think we're demonstrating that if you look at the manufacturing partnerships and the relationships we're building, is that when you can -- we can bring multiple platforms in aerial ground platforms are really for a manufacturing partner and a component supplier very similar you get -- become more important to your component vendor, you become more important to your manufacturing partners.

And that -- in the scale you provide to them, they can turn back to you with better pricing and cost of goods sold and things like that. So I think the leverage comes in cost of goods sold. It's like -- it's going to come with sales and marketing because we're going to be getting larger deals, right, over time.

And then there's the field services as well when you have -- I'll take into earth as an example. Into [indiscernible] we have a robo team. We have apparel motion. We have now built a very serious ground portfolio, and we can have the synergies around how we support customers in the field, right?

We have folks out to service the dozers from into worth, they can be the same folks who can do that with UGVs, so I think that -- those are the sorts of things we'll look at for efficiencies around the financial model.

And with that, we've reached the end of today's question-and-answer session. I'd like to turn the floor back over to Eric Brock for closing remarks.

All right. Thank you, operator. And as we wrap the call, I want to say thank you again for spending time with us today. As we've discussed, we have had a strong start to and we're focused on sustaining that momentum throughout the year.

We look forward to providing you more updates along the way as we do, and we're going to get back to doing the work, and we look forward to speaking again soon. Have a great day.

And with that, ladies and gentlemen, we'll be concluding today's conference call and presentation. We thank you for joining. You may now disconnect your lines.

Welcome to the Ondas Holdings, Inc. OAS Investor Day. [Operator Instructions] Before we begin, the company would like to remind you that this call may contain forward-looking statements. While these forward-looking statements reflect Ondas' 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 Ondas' periodic SEC filings and in the earnings press release issued today, which are both available on the company's website.

Ondas 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, Ondas will refer to certain non-GAAP financial measures. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles. 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.

I want to get started by welcoming you to our OES Investor Day. We appreciate you joining us today and for your continued interest in Ondas. I'm happy to be joined today by key members of our leadership team, including Neil Laird, our CFO; and Pat Houston, our General Counsel, who was recently named our Chief Operating Officer.

From our OES business unit, we are joined by Oshri Lugassy, Co-CEO of OES; and Meir Kliner, President of Ondas Autonomous Systems, as well as Avshalom Amossi, our CRO, who joined us recently to help lead and drive revenue generation across our product companies. Mark Green, our Global Head of Corporate Development and M&A is also with us today to share important updates and context on the progress of our corporate development efforts.

As we get ready to dive deep into strategy, products and financial data, I want to briefly remind our investors who Ondas is and what fundamentally guides our mission. Ondas is built around a core principle, integrated autonomy that delivers real-world defense, security and intelligence outcomes. We are not a collection of point solutions or experimental technologies. We build and deploy operational systems designed to protect assets, infrastructure and populations in complex, regulated and often contested environments. Defense, security and intelligence are not separate markets for us, they're interconnected mission domains. Our customers are not buying individual drones, ground vehicles, sensors or software modules, they're buying outcomes, situational awareness, protection, resilience and operational continuity. That reality is what drives our systems of systems approach. Ondas designs, integrates and operates autonomous aerial platforms, ground robotics, sensors, communications, software and command and control as a unified operating architecture. Each layer is valuable on its own, but the real differentiation comes from how these capabilities work together, scale together and evolve together over time. And of course, this is not static. Our road map is intentionally structured around the continued evolution of the systems of systems, adding new platforms, effectors, sensing modalities, autonomy and software capabilities. We do this while maintaining interoperability, regulatory compliance and operational reliability. We are aggressively assembling the pieces to meet the rapidly evolving market requirements now. I want to emphasize this, the timeliness for customers is now. This integrated approach also enables our dual-use strategy. Many of the systems that secure military installations and borders can be deployed to protect critical infrastructure, industrial sites and public safety operations globally. That common architecture creates scale, resilience and long-term relevance across markets. As we walk through today's update, this frame is important. This is why we are -- we have changed the name of the company to Ondas, removing the holdings from our name. This name change to Ondas is official today. Ondas is not a hodgepodge collection of assets or a financial construct. Ondas isn't built around a single product cycle or a single procurement program, we are building a durable, scalable autonomous systems platform aligned with the long-term defense and security priorities of the United States and its allied nations. So that's the focus, integrated autonomy, systems of systems execution and mission-critical outcomes. This is what shaped our progress in 2025 and it also underpins the strategy, investments and financial outlook we will discuss for 2026 and beyond.

Let's now turn to the agenda. As a brief reminder, the focus on this call is to provide a comprehensive update on our OES business unit. In certain areas, we will share select financial data and where we do, that will be on a consolidated basis so it does include Ondas Networks. Our presentation today will start with a brief introduction to set the context for today's discussion and highlight what has changed meaningfully since our last update. From there, we'll walk through our technology capabilities, focusing on how our platforms are being deployed today and how they differentiate Ondas across defense, security and critical infrastructure markets. We'll then cover our go-to-market strategy and operating platform, including how we are scaling sales execution, customer delivery and operational infrastructure to support sustained growth. Next, we will provide an update on pipeline and business development, highlighting demand trends, customer engagement and program activity across our core markets. We'll then move into the strategic growth program, where we'll discuss how we are using disciplined investment in acquisition activity to accelerate platform depth, scale and long-term value creation. Following that, we will provide a brief update on Ondas capital, including its strategic objectives, progress to date and how it supports our broader ecosystem strategy. We'll then conclude the prepared remarks with our financial outlook, including our expectations for revenue growth, investment priorities and the path forward. Finally, we'll open the call for investor questions.

Let's transition now and reflect on 2025, which was truly a transformative year for Ondas. In fact, I believe that's an understatement. During 2025, we launched our core+ strategic growth plan, and I am proud to say we delivered against it. We evolve OAS from a set of strong but narrow autonomous drone systems into a multi-domain global autonomy platform. Of course, this shift matters because it meets our customers where they need technology and solution providers like Ondas. As Oshri highlighted recently, customers are no longer buying just products, they're buying integrated mission-critical systems that operate across air, ground and information domains. Operationally, we delivered. We achieved meaningful revenue growth, expanded our global business development footprint and converted pipeline into programs with defense and homeland security customers. At the same time, we invested ahead of near-term revenue to build the operating leverage required to scale. That includes manufacturing readiness, systems integration, field operations and program execution. Strategically, 2025 also marked the launch and execution of an accretive investment and acquisition program. We did this with an extremely disciplined capital deployment program. We have, for a long time, held the view that the unmanned and autonomous systems market was fragmented in subscale and would be to organize. In 2025, customers and vendors alike along with investors, have now begun to understand that time is now. And the evidence suggests that a major cycle has begun where scale systems and systems providers will emerge to drive the scale required to drive adoption in the massive end markets we address.

Equally important, we significantly strengthened our competitive position at Ondas through building a rock-solid balance sheet. That capital foundation allows OAS to operate from the position of strength supporting customers, executing customer programs and continuing to invest while many others in the sector are capital constrained. And believe me, there remains serious capital constraints in this sector outside a handful of well-funded competitors. This is, of course, the nexus of the significant opportunity for Ondas. The result is OAS exited 2025 fundamentally changed. We are now positioned as a high-growth global leader in defense and security, unmanned and autonomous systems with scale, capital and integrated capabilities required to win in the upcoming investment cycle.

In 2025, we also delivered on our operating and financial commitments to our investors. I am particularly proud of our team and our performance against our financial model, which significantly exceeded our prior expectations. As I share the numbers, I want to highlight that this financial data represents management's preliminary and unaudited estimates. It's also consolidated. So these financial figures include Ondas Networks, which despite making important strategic progress in 2025 did not produce meaningful revenue and fell short of our original goals for that business. With that said, I am pleased to share that Ondas expects to report very strong results for Q4 2025, achieving record levels of revenue and backlog with strong upside to prior targets. We also entered the year with an extremely strong balance sheet and liquidity position. We expect Q4 2025 revenue in the range of $27 million to $29 million. This represents 51% upside to our earlier target and a near sixfold increase from Q4 2024. For the full year, we expect to report revenue in the range of $47.6 million to $49.6 million. This represents 23% upside to our prior full year target and is also a near sixfold increase from fiscal 2024. Importantly, during 2025, we strengthened our relationships with customers in long-cycle markets and programs and grew our backlog significantly in both size and quality. We entered 2025 with an estimated backlog of more than $65 million, which was nearly triple the level at the end of the third quarter of 2025. The backlog has a more diverse mix of customers and products and is accompanied by a much larger and more mature customer pipeline. That backlog and pipeline strength provides strong visibility on growth and supports our confidence as we enter 2026.

Finally, we dramatically strengthened our liquidity position. Pro forma cash at year-end was over $1.5 billion, adjusted for last week's $1 billion equity offering. This is a transformational balance sheet for Ondas with this liquidity giving us the ability to accelerate both our core and strategic growth programs from a position of strength. Again, supporting customers, scaling operations and executing our corporate development and system and systems road map as we move into 2026. As I just outlined, the business strengthened significantly during 2025, and we entered 2026 from a position of real momentum in strength. Based on current visibility, we are targeting full year 2026 revenue of $170 million to $180 million, which includes a modest contribution for Ondas Networks. That represents approximately 3.5x our preliminary expected revenue for fiscal 2025 and reflects exceptional growth across our core platforms. This growth is being driven by strong adoption across our portfolio and is enabled by the technology, systems integration and service delivery platform we are building at OAS. That platform is designed to support scale deployments, long duration programs in multi-domain operations. Of course, we will walk through that maturation of the OAS operating platform in great detail today.

Importantly, the demand environment remains very strong, as we discussed over the last several quarters, we believe the unmanned and autonomous systems sector has entered a multiyear growth cycle driven by defense, security and infrastructure priorities globally. Within that environment, we see potential upside to our 2026 outlook. We think these targets are conservative. Our target markets are entering accelerated growth curves, we are pursuing large multiyear programs, including government to government opportunities. Further, we have robust strategic investment in acquisition pipeline that can further expand our platform. In short, we believe this will be a very strong year for our industry, and we expect Ondas to leverage these tailwinds as the investments we have made in technology and operations drive very strong growth in 2026.

Now let's spend a few moments to focus on what I think many of you may have been most interested in learning when tuning into this call. What is Ondas going to do with all that cash? This is an extremely important question, and I can assure you we feel a great responsibility to deploy this capital for its greatest impact for our investors. I want to reiterate that the balance sheet as well as the long-term liquidity we built with the business and our plan on extremely strong footing. We have more than $1.5 billion in on-balance sheet cash today. In addition, if we execute on our growth plan and our share price performs, we have the potential to access up to approximately $4.9 billion of additional capital through the investor warrants. Again, those warrants only come into the money if we perform. If the shares rise above $20 and $28 strike prices. And that creates a very strong alignment between our investors and the company. We are highly motivated to perform for our shareholders. If we execute well and unlock that additional capital, it provides even more fuel to support growth, scale and long-term value creation. Quite simply, this liquidity position is a significant competitive advantage. Customers prefer well-capitalized vendors who can support large programs over time. Partners prefer well-funded counterparties who can invest and scale alongside them. And talented people want to work for companies that are stable, ambitious in position to win. We fully intend to put this capital to work. Our objective is to accelerate our core+ strategic growth plan and to do so responsibly and purposefully. Accelerate is the theme for 2026. That means continuing to accelerate the building of our team, accelerating the maturity of our supply chain and customer delivery capabilities and strengthening the broader ecosystem that supports our platforms. It also means having the financial capacity to accelerate our strategic acquisition program, and Mark is going to provide more context on that a bit later. In short, we are capitalized to win, and we intend to use that capital for good by accelerating scale across every element of the business and delivering on the opportunity in front of us.

You may recognize this slide, we used it at our Investor Day last July. The reason it remains relevant is simple. The market has not changed its requirements. In fact, they become even more demanding. In defense and security autonomy, having excellent technology platforms is necessary. However, it is no longer sufficient. Again, technology is required, but not sufficient in of itself. Winning takes a lot more than just having the best platform. Customers expect proven, valuable mission-ready systems as a baseline, winning at scale requires something much harder. An integrated operating platform that can support large deployments, multiyear programs, global customers and sustained performance. That is the opportunity we outlined last summer. It is exactly what we've been executing against.

This slide captures the full scope of what it takes to be a scaled operator serving complex markets, delivering advanced technology capabilities in operating across sales, manufacturing, supply chain, regulatory, field services and sustainment, all supported by a strong financial platform. Today, our team will outline the progress we've made on this front, our road map ahead and the foundational operating infrastructure required to support a significantly larger and fast-growing revenue base.

Here's another schematic you've seen before. And we're using it again for a reason. It captures the scope and intent of our strategic growth program and the value we are building over time. At its core, the program is about accelerating our evolution into a true systems of systems provider with autonomy at the core. Around the wheel of the core capability areas, we are intentionally deepening current UAS, payloads, command and control or C2, autonomous platforms and communications. These are the building blocks that allow us to deliver integrated resilient and scalable defense and security solutions. Our strategic acquisition program is designed to add depth across these domains, extend our reach and amplify the value of the overall platform. The objective is faster growth, greater operating leverage and an accelerated path to profitability by integrating mission-critical capabilities rather than assembling point solutions. And then the team will provide an update on how this program performed in 2025, where we executed successfully in how those additions strengthen the platform. We'll also outline a road map to 2026, including how we intend to continue building scale, capability and differentiation through disciplined strategic investments.

With that comprehensive introduction, I will now turn the call to Meir, who will spend some time updating you on the new additions to our portfolio and how they are adding breadth and relevance to our systems of systems evolution. Meir?

Thank you, Eric. In the next following slides, I would like to capture the core of the Ondas strategy of integrating multi-domain technologies and the great market opportunity we are facing. Ondas is building a multi-domain defense and security platform by bringing together best-in-class product companies, each already winning independently in its own market and integrating them into a single scalable system of systems architecture. Currently, we are integrating technology companies across air, ground sensing, couter UAS and robotics. These platforms are proven operational and deployed today. What differentiates Ondas is the integration layer, unified software, shared command and control and coordinated mission across domains and different environments. This approach allows customers to start with a single capability and expand over time into a border multilayered solution. It increases mission effectiveness, expand deal size and drive recurring growth through land and expand adoption. By leveraging a common C2 backbone, shared data and cross-platform workflows. Ondas enables coordinated operations that individual point solutions simply cannot deliver on their own. The result is a highly scalable operating platform, addressing multiple large and growing markets, representing a multibillion-dollar opportunity across defense, homeland security and critical infrastructure. To understand the mutual potential of these technologies, I would like to qualify the scale of the opportunity we are addressing when looking at the potential of the segments of these technologies and the combined market size they are representing.

Based on independent research conducted by Frost & Sullivan and our internal market adjustments, Ondas core addressable market across counter UAS, unmanned aerial systems and unmanned ground vehicles represent a combined global TAM of approximately $117 billion over the 2025 to 2030 period. This reflects a conservative view of the opportunity, given the additional upside and new use cases created as these technologies are increasingly combined into integrated multilayered solution with capabilities that are not yet fully measured or reflected in traditional market research. We will elaborate on the integrated systems potential in the upcoming slides. The largest portion of this market is UAS and UAV platforms when looking at the focus areas [ of Ondas ], which are currently tactical drones up to Class III. This represents approximately $50 billion of cumulative market opportunity over the same period. This demand is driven by sustained global investment in unmanned systems across defense, homeland security and critical infrastructure, including ISR, resistant surveillance and loitering munition related procurement. Counter UAS represent a rapidly expanding priority market of approximately $50-plus billion over the 2025 to 2030 time frame as drone threats continue to proliferate across military-based borders, cities and sensitive infrastructure worldwide. We believe currently markets research materially understands the true scale and urgency of this demand as threat evolution and procurement cycles accelerate in practice. The UGV segment estimated at approximately $16 billion over the same period, supports multi-mission ground autonomy, including combat support, ISR, EOD, force protection and de-mining related operations. We will dedicate the time in the upcoming slides to explain this market opportunity in more details and outline why we believe it is already expanding into a meaningful and strategic segment across facilities, borders and compound environments.

In addition to the total addressable market, we have also defined a clear and disciplined view of our serviceable available market based on where Ondas is actively competing today and where we expect to deploy integrated solution over the near- to midterm. Based on company estimates, Ondas current serviceable available market is approximately $7.5 billion annually, reflecting the subset of the global market that align directly with our product maturity, certifications, manufacturing footprint and active customer engagement. Within this SAM, counter-UAS represent the largest component at approximately $5 billion, driven by immediate demand for protection of military bases, borders, airports ports and critical infrastructure, where Ondas Iron Drone and integrated CUAS capabilities are already operational or in advanced procurement discussions.

The UAS segment represent approximately $2 billion within our SAM, focused on autonomous tactical drone systems for ISR model security, persistent surveillance and mission-critical operations where our platforms are certified, deployed and scalable today.

The UGV segment represents approximately $500 million, reflecting early stage but rapidly growing demand for unmanned ground systems supporting border protection, force protection, EOD, de-mining and integrated air-ground defense architectures. Importantly, this SAM does not assume future platform classes or speculative use cases. It reflects markets we are actively addressing with existing and near-term capabilities and it provides a practical baseline for growth as customers increasingly adopt integrated air-ground solutions across those domains. I will start with counter-UAS, which is one of the fastest-growing and most urgent defense and homeland security priorities globally. The threat environment has changed fundamentally. Small, low-cost drones are now widely available and our win used for surveillance disruption and direct attacks against military forces, airports, critical infrastructure and population centers. What differentiates Ondas in CUAS is that we do not offer a single point solution. Instead, we deliver a complete layered counter-drone architecture that spans detection, identification tracking, soft mitigation and hard mitigation with very low collateral damage and very high level of autonomy, make our solutions to be effective available always and operating also in complex civil environments. Through our acquired technology companies, we bring together best-in-class capabilities across each stage of the kill chain, From RF-based detection and identification through cyber mitigation and autonomous interception with minimal collateral damage under single domain command and control integration. The counter-UAS sequence begin with detection. We apply Sentrycs advanced technology to identify aerial activity based on radio signals and back it with designated third-party radars at long range even in clutter environments such as airports or urban areas. This provides early awareness without relying on a single sensor type. Once detected, the system moved to identification, using RF intelligence and sensor fusion. The platform determines whether the object is cooperative, noncooperative or hostile and classifies the threats in real time. we are using our combination of Sentrycs capabilities and optical identification with Insights optical sensors. Following identification, the system enters the tracking phase. The target is continuously tracked while the system evaluates mitigation options. Soft mitigation is applied first when appropriate, including cyber-over-RF measures to take control of the hostile drone and land it to the ground without physical engagement or damage. If soft mitigation is ineffective or not suitable, the system escalates to hard mitigation. This is where the Iron Drone radar autonomously launches, intercepts the hostile in mid-air, capture it with the net and safely remove it from the airspace or parachutes it down with minimal collateral damage. All these steps detect, identify track soft mitigation and hard mitigation are coordinated through a unified command control layer, enabling automated rapid decision-making. Without operator overlay. What makes this solution unique, it's not any single component, but the orchestrated sequence of a closed loop. End-to-end counter-UAS system designed for a continuous real-world operations in high-risk environments.

Our CUAS system of systems is designed to operate together as a one coordinated solution, managed through a unified C2 layers and optimize for continuous real-world operations in complex environments such as airports, borders, military bases and urban areas. Sentrycs provides the soft-kill layer, delivering early detection, identification and control and radio-controlled drones through RF-based intelligence and mitigation. Iron Drone complements this with an autonomous hard-kill capability designed to intercept and safety neutralize any hostile drone, including fully autonomous systems that are immune to RF disruption. Together, these platforms create a closed-loop detect to the fleet architecture, coordinated through unified commanded control layer that manages sensing, decision logic and interception in real time. The result is low collateral non-kinetic solution that enables continuous operations in sensitive environments, such as airports, urban areas and critical infrastructure. This combination is what positions Ondas as one of the few companies capability of delivering a complete scalable and operationally proven CUAS system, not as individual products. but as a fully integrated defense capability.

I will now move to our UAS segment technologies and explain how our aerial platforms work together to address a wide range of missions. Ondas UAS portfolio is built around flexibility, resilience and autonomy. Each platform can support ISR, assault and additional mission profiles while operating as part of a broader integrated aerial ecosystem.

At the infrastructure level, the Optimus system is the backbone of our UAS offering. Optimus provides persistent 24/7 availability with a very short response time, enabling mission ranging from ISR and perimeter security to mapping, inspection, targeting support and other on-demand aerial applications. It's fully autonomous operation allow customers to deploy multi-mission aerial capability as a standing infrastructure rather than as a one-off assets.

Iron Drone add a highly adaptable tactical layer while it's widely known for interception missions. The platform itself is designed to be repurposed for additional area roles. We are already involved in several classified and sensitive programs that leverage Iron Drone's autonomous flight, AI decision-making and precision maneuvering for new mission sets behind counter-UAS. In parallel, we are advancing Wasp as a low-cost attacking drone, designed deliver robust performance at scale. Wasp is optimized for cost effectiveness, rapid deployment and integration into larger operational frameworks, making it suitable for both tactical and asymmetric use cases. A key enabler across these platforms is our in-house capability to manufacture highly reliable fiber optics pooling systems. These fiber optic drones are designed to operate in contested environments, overcoming communication jamming, electronic warfare and line of sight limitations. Importantly, these systems have been developed and validated under real-world combat conditions, providing a significant operational advantage. Together, these platforms from a complementary UAS portfolio combining infrastructure-based persistence, technical autonomy, low-cost attack capability and resilient communications, all designed to support multi-mission LVL operations across defense, homeland security and emerging mission requirements. We will keep developing next-generation of these systems with extend capabilities to address the need of defense and security markets and defense requirements of allied nations.

I will now turn to our UGV segment. Historically, the unmanned ground vehicle market has grown relatively slowly. Ground robots are typically adopted only when risk is high and human exposure is unexpectable. Over the last 2 years, that reality has changed significantly as combat intensity, urban warfare and public safety threats are all increased. As a result, the need for reliable, combat-proven ground robotics has become much more urgent. Through our acquisitions Ondas has assembled a broad and highly complementary UGV portfolio, spanning tactical frontline and infrastructure level ground operations. At the tactical end, we provide compact robots for EOD clearance, tactical bridging and underground first lead missions. These systems are designed for [ swarm ] team, special forces, EOD units operating in confined high-risk environments, including tunnels, buildings and complex urban terrain. For frontline and perimeter operations, we offer larger market platforms supporting force and border protection, combat support and transportation missions. These robots are capable of carrying multiple payloads, sensors and effectors operating of a rough terrain and supporting sustained operations alongside maneuver units. In parallel, we have added a unique and strategically important capability in de-mining and land clearance. Our robotic mine clearing platform enable large-scale clearance of mine fields and contaminated areas combining EVM heavy mechanical system with smart software-driven robotic tools. These positions Ondas to address complex land clearance and post-conflict recovery projects that few groups can execute end to end. Across all of these platforms, the common theme is modularity and cost efficiency. Our robots are designed to carry different payloads and sensors, adapt to multiple mission profiles and reduce risk to personnel while enhancing operational effectiveness. Taken together, this wide array of ground robotics capabilities opens a significant opportunity for Ondas, not only to support combat units, but also to and public safety organizations and homeland security process with scalable and cost-effective unmanned ground systems. Let's take a closer look at our acquired company, Roboteam. They are providing best-in-class tactical robotics portfolio built around combat proven platforms that are already deployed by leading military and security forces. And the compact end of the spectrum are the RT-2 and RT-20 platforms. These are first entry robots designed for rapid deployment in urban and confined environments. They are actively used by U.S. Department of War Organizations and the IDF for reconnaissance, intelligence scattering and first look missions where sending personnel will carry unacceptable risk. Moving up the scale, the RT-200 is a transportable and highly interruptible ground robot. It is deployed by the U.S. and NATO of forces for EOD operations, ISR missions and perimeter security. Its modular design allows it to carry a wide range of sensors, cameras and payloads. Make it into flexible tool across multiple mission profiles. At the heavy-duty level, we offered the RT-1000 and RT-2000 platforms. These systems are designed for logistics, evacuation force protection and frontline support. They can transport equipment, supplies and payloads over rough terrain, operate alongside maneuver units and support sustained operations in challenging environments.

In addition, the MTGR V5 represent a major validation point for our portfolio. It is a U.S. Marines program of record platform based on an advanced RT-200 configuration and reflects years of operational feedback and continuous improvement.

Program of record status underscores reliability, maturity and long-term adoption. Across this entire family of platforms the common teams are ruggedless, modularity and real-world operational use. These are not experimental system. There are proven tools that reduce risk to personnel while expanding the capabilities of military and security units. The footage on this slide shows our robots operating in real combat conditions, supporting ground units, both above ground and underground. These systems are deployed ahead of troops, performing reconnaissance, breaching, EOD and first entry emissions in some of the most complex and dangerous environments. This is the essence of our 'Bots Before Boots", vectoring using robots to go first, reduce uncertainty and protect human life. This combat experience has been instrumental in shaping robotic technology, continuous use in live operation has allow us to refine mobility, durability sensing and control under real fire, real terrain and real operational pressure. As a result, these platforms are not theoretical or experimental. They reflect years of direct feedback from soldiers in combat, translating into highly precise mission-ready capabilities that directly enhance unit effectiveness and survivability. Very few companies globally have this depth of operational experience embedded into their robotic systems. It is key differentiator for the Roboteam and Ondas as a whole. We are eager to bring these proven capabilities to Allied Nation and partners, enabling them to adopt combat validated robotic solutions that save lives and improve mission outcomes from day 1.

Roboteam has built a deep and trusted customer footprint with a strong presence in both the United States and Israel, while actively supporting customers across more than 30 countries worldwide. Roboteams platforms are used by leading military, defense and public safety organizations, including U.S. federal and military customers, Israel Defense Force and national police and security agencies. These customers operate in demanding environments and select suppliers based on performance, reliability and long-term support, non-experimentation. This customer base reflects several important attributes, exceptional resilience of the platforms, world-class product quality and a consistent commitment to service and life cycle support. Equally important, our systems are manufactured in the United States through military standards, providing supply chain confidence compliance with defense procurement requirements and scalability to support larger allied programs. Taken together, this combination of common validation, global adoption and U.S.-based manufacturing positions, Roboteam and Ondas as a trusted partner for Allied Nation, second proven deployable robotic capabilities. The next stage in Roboteam's evolution of robotic support and autonomy is ROBOX, a launch-ready robotic fleet designed to enable rapid deployment of multi-mission unmanned platforms, combining ground and real assets into a single integrated operational system. At its core, ROBOX is an air ground unmanned combat platform that allows forces to deploy robotic capabilities quickly wherever they are needed. The system is continuous enabling fast transport setup and launch in both fixed and expeditionary environments. ROBOX is a mission configured by design. The platform can be adapted for different operational needs. Included reconnaissance, force protection, perimeter control, logistics support and operations in [indiscernible] or integrated environments. In essence, ROBOX translates years of combat experience and robotic deployment into a scalable modular system that allows customers to deploy unmanned force rapidly, safely and with significantly reduced operational burden.

Apeiro Motion specializes in agile, software-driven ground robotics tailored to frontline combat needs for operations in dense, complex and high-risk environments. These platforms were developed based on direct operational requirements from IDF combat units and are designed to operate where traditional vehicles and larger robots cannot. And the foundation of the Apeiro platforms is a modular payload agnostic architecture. This enables rapid integration of sensors and the effectors and allows operators to reconfigure the platform quickly as mission needs to evolve. These systems support a wide range of missions, including ISR, force protection, EOD and combat support. Payload operations includes EO/IR sensors, RF systems, jammers, or body cams and additional mission-specific payloads. Apeiro robotics Dog Scout is a backpackable, quadruped platform designed for high-mobility and autonomous ground operations. It is optimized for maneuvering to ruble,, urban terrain and confined spaces, making it highly effective for reconnaissance and first and remissions and defense and homeland security environment.

Apeiro Spyder is a combat platform, man-packable tracked robot built for obstacle navigation and confined area operations. It can be rapidly configured for ISR, OD and tactical support. And this is particularly for special forces and urban combat teams. A key advantage of Apeiro platforms is rapid reconfiguration and software-driven adaptability and threat operators can uptick payloads and mission logic without replacing the underlying platform, extending system life and reducing total cost of ownership. In addition to the robotic platforms, Apeiro has developed advanced payloads, including combat proven unique fiber optic spools for jam-resistant communications and robotic arms for EOD manipulations and bridging in a complex environment. Apeiro also advancing additional and classified capabilities under active programs, extending autonomy and mission effectiveness based on direct operational requirements.

Lastly, we want to elaborate about our 4M Defense, providing complete services and smart solutions for land clearance by integrated aerial and ground robotic platforms with powerful software tools. 4M has perfected the process of land mine clearance beginning with high resolution aerial mapping, using drone to ticketize mine affected terrain and create and an accurate data is then processed through AI-based land intelligence, which analyze patterns, detect anomalies and highlight suspected other zones that require further attention. That data is then processed through AI-based land intelligence, which analyze patterns and highlights suspected other zones that require further attention. Based on this intelligence, the system generates a software-defined clearance plan, replacing traditional manual and map-based workflows with precise data-driven tasking and progress tracking.

Finally, autonomous ground robotic platforms execute the clearance operations, operating with high accuracy while minimizing risk to human personnel. Together, this close look sequence transforms land clearance into a repeatable, scalable and digitally managed operation, improving safety, efficiency and accountability across large-scale land clearance projects. We see significant potential in 4M's capabilities in this domain as they complete our end-to-end offering for border security and land clearance operations both during active conflicts and in post-conflict environments.

By integrating air and ground systems under a single operational framework, we unlock entirely new mission capabilities, expand the role of robotics in defense operations and enable customers to deploy robot force and scale rather than as an isolated platforms. At the core of this approach, multiple robotic platforms operate together as a single network system, allowing emissions to be executed in a coordinated way rather than through isolated assets. A unified command and control layer, fuses sensors, effectors and data, [indiscernible] platforms, accelerating detection decision-making and respond in complex operational environments, reduce human risk while also lowering overall operational cost. We see a significant opportunity in the market to deliver new capabilities as a unified multilayered multi-domain robotic force.

By abstracting hardware into software, we create a scalable foundation that accelerates integration, unlock new mission capabilities and allows customers to deploy multilayered robotic force as one of system rather than disconnected platforms. This represents the future of Ondas and we have already begun deploying these capabilities across our customer domains. We are seeing strong demand for this integrated software-defined platforms and we are encouraged by the traction we are gaining with customers, seeking combat-proven multi-domain robotic solutions. As we continue to deploy and scale these capabilities we are excited to unlock additional opportunities across our existing customer base and expand into new mission areas. I will now pass the call back to Eric. Eric?

Thank you, Meir. Now we want to transition and update our investors on the build-out of our go-to-market plans and the scaling of our operating platform at OAS. Indeed, it is the operating platform that will ultimately hold the key to our success at Ondas. Building exceptional technology is required, but if you can't deliver at scale at an acceptable cost, you can't win. Since we intend to win, we are making these investments and it's centered around people, processes and infrastructure. I will now turn the call to Oshri, who will provide more context and details. Oshri?

Thank you, Eric. Our focus is on driving operating scale by integrating the OAS core with our acquisitions leadership and talent into a single unified operating platform. We are building the infrastructure for an operating platform that allows us to align global go-to-market execution across our sales teams, partners and customers, ensuring consistent execution as we scale across regions and markets. On top of that foundation, sits our go-to-market engine. This layer connects talent, technology partners, sales teams, customers, manufacturing, distribution and leadership in a single coordinated execution. The objective is to ensure that every capability we add can be commercialized efficiently and consistently across markets. By centralizing manufacturing, supply chain and distribution and by investing in leadership, systems and ecosystems partnership, we enable rapid integration and execution as new technologies and acquisitions are bought into the platform. This structure increases operating leverage as multiple platforms scale on shared infrastructure. It accelerates commercialization and monetization of acquired capabilities and over time, improves unit economics while lowering field support cost as our installed base expense. I will elaborate in the upcoming slides on how this operating model is a critical enabler of Ondas' ability to scale, turning innovation and acquisitions into repeatable execution and durable financial platforms.

We have designed a purpose-built leadership structure to support scale across revenue operations and execution as Ondas continues to grow. At the top, clear executive leadership we defined accountability while empowering each operating company to run their businesses with focus and speed. They are supported by highly experienced centralized functional leadership across corporate and growth functions. Our corporate and growth organization brings together finance revenue, marketing and product leadership. This structure enables as a unified go-to-market strategy, supports cross-selling across platforms and ensures consistent global customers' coverage.

Operations, manufacturing and people functions are centralized as shared service, including operations, HR and legal. These shared services model drivers efficiently supports scalability and reduces duplications across the organization. At the operating company level, platform CEOs remain fully accountable for executions with their domains while benefiting from the scaling structure and resources of the Ondas platform. We have built a highly effective advisory Board made up of the best-in-class leaders who directly reflect on the markets we operate and the customers we serve. These are former senior commanders, operational decision makers and technology leaders with deep experience across defense, homeland security, and government markets in the U.S., Israel and the allied countries. They understand how missions are executed and would drive adoptions at scale, the role of the Advisory Board is very practical. They help validate our product road maps and ensure that what we are building aligns with real operational needs, real budgets and real procurement processes, not theoretical requirements. From a market perspective, the Board gives us direct insight into how customers think, what problems are urgent, how buying decisions are made, how programs move from pilot to the deployment and how multi-domain systems are evaluated in contested environments. They also help us anticipate that where demand is growing across border security, force protections, counter UAS, ground robotics and post-conflict operations so we can position OAS ahead of the curve rather than react to it. They represent the customers' perspective across key dimensions, operational doctrine, mission requirements procurement cycle, regulatory constraints and coalition and allied environment. This ensures that our road map is driven by real-world demand rather than theoretical use cases. From a go-to-market standpoint, the advisory Board helps us align our offerings with how customers actually buy, what problems they prioritize, how they evaluate solutions and what drives adoptions and scale in defense and government market. Strategically, they act as an early symbol for budgets, threats and operational needs are moving, allowing owners to position its platforms ahead of demand and reduce execution risk as we scale. An important part of how we scale Ondas this is the ecosystem we are building around the platform. These partnerships are not only at the Ondas Holdings level as a prime contractor. They are deeply embedded in the product company level where each operating company works directly with the best-in-the-class partners to accelerate capability and deployment. Across the group, our ecosystem supports localized tactical integration, distributions, manufacturing in critical markets, whether it's manufacturing partners or system integrators, this relationship allow each product company to move faster and deliver more complete mission-ready solutions. At the Ondas level, this ecosystem gives us reach and scale at the product level, it gives our teams flexibility, allowing us to integrate with leading partners that already trusted by customers in their respective [indiscernible]. The result is networked model where innovation does not happen in isolations, capabilities are developed integrated and sustained locally while still benefiting from the unified operating platform and go-to-market structure. Our ecosystem approach is a key enabler of how we win, bringing together best-in-class technologies, proven partners and Ondas platforms to deliver completely scalable solutions. We are ramping up manufacturing across the Ondas platform to address the demand of our system with clear focus on localized supply chain, addressing the local needs of our major markets, starting with major focus on the U.S. market. In the U.S. working with Detroit manufacturing systems, we are manufacturing Optimus and Iron One drone systems for American robotics, supporting NDAA-compliant, Made in America productions at scale.

Also in the U.S. and Europe, Kitron supports electrical manufacturing and system assembly enabling us to scale production volumes while maintaining quality and supply chain resilience. At Ondas facilities in the U.S. we manufacture fiber optic pools and supporting components for American Robotics, which are critical for secure, resilience, communications in contested environments. With Mistral in the U.S., we support manufacturing of Roboteam ground platforms, including MTGR and other UGV systems, giving us scale in tactical ground robotics. In Israel, Tamuz and Flex support advanced manufacturing of Optimus and Iron Drone and centric systems, including integration and specialized assemblies, particularly for defense great platforms. We are preparing for additional European manufacturing capacity with Heidelberg which will further strengthen our regional production footprint. I will now hand the call back to Eric. Eric, please.

Thank you, Oshri. I would now like to hand the call over to Avshalom Amossi, our Chief Revenue Officer, to discuss our key customer activities across end markets and the different segments we are addressing. Amossi, please proceed.

Thank you, Eric, and thank you for having me here with you today. Ondas is currently engaged across multiple high-priority programs that reflect where real demand is forming across defense, homeland security and critical infrastructure markets. Counter-UAS remain one of the most active areas of engagement globally, driven by the rapid proliferation of hostile and unauthorized drones and operational urgency to neutralize them effectively and with minimal collateral impact. These programs are moving beyond trials into structural deployment, positioning our cutting solution as a core capability within evolving aerial defense architectures. In parallel, we are advancing autonomous CUAS programs, including coordinated drone swarms focused on border security and wide area surveillance where persistent coverage, rapid response and synchronized operation are becoming mission-critical. I will elaborate on these programs in the upcoming slides.

We are also seeing increasing demand to combine autonomous CUAS fleets with integrated counter UAS layers to protect military bases, borders and sensitive installations. Including multilayer capabilities that integrate ground and aerial robotic platforms with sensors and the effectors. We are also participating in national-level Defense initiative including drone dominance and advanced unmanned programs alongside classified activities supporting offensive and defensive drone operations.

In addition. de-mining programs in the Middle East continue to gain momentum as customers seek autonomous and remotely operated solution to accelerate clearance operations while reducing risk to personnel. Collectively, these activities underscore the shift we are seeing across our markets towards scalable, autonomous and integrated drone infrastructures, and they reinforce our strategy to address both UAS and counter-UAS requirements with a unified system-level approach. We are addressing the rapidly growing global demand for multi-layered aerial protection, driven by the increasing exposure of public venues, critical infrastructures, border and military assets to low-cost highly accessible drone threats.

In the United States, we have submitted for a department of Homeland Security grant tied to the security around the upcoming FIFA World Cup 2026 and related activities. These programs reflect our counter-UAS is becoming a core element of homeland security planning rather than an ad hoc capability.

In Europe, we are engaged in extensive deployments across airport environments where layer detection and interception capabilities are required to protect complex, high-traffic earth spaces while minimizing disruption to operations. These deployments, which generates over $60 million in orders last year with urgent requirements are expanding further as authorities move towards standardized infrastructure-based solutions.

We are also advancing projects focused on aerial protection of national borders and sensitive geographic corridors as well as strengthening protection programs around military bases. In this environment, customers are prioritizing systems that combine high autonomy, low collateral impact and seamless integration with existing detection and command and control architectures. Overall, our pipeline continues to expand across critical infrastructure sectors globally, and we are seeing accelerated momentum as customers transition from pilots and demonstrations into sustained deployment programs. This demand reinforces the role of Iron Drone, Sentrycs and our multilayer counter-UAS solution positioned for long-term growth. We are currently executing our first national level defense program as prime contractor, marking an important milestone for Ondas as we scale into larger long-term sovereign defense initiatives. This is a multilayer phased program with focus on deploying autonomous drone swarms along national border lines, designed to deliver persistent around-the-clock ISR coverage alongside rapid swarm-based response capabilities. The architecture enables wide area monitoring, faster decision cycles and coordinated action across extended and complex terrains. The program is structured for scale with planned deployment of thousands of autonomous drones over time, integrated into a centralized command and control framework. This systems of systems combines autonomous aerial platform, AI-driven mission management, advanced sensors and validated C2 infrastructures operating at national scale. Importantly, this program was awarded through a competitive governed evaluation process, validating both the maturity of our technology and our ability to deliver integrated autonomous solution as a prime. It reflects growing confidence from defense customer in Ondas capabilities to design, deploy and sustain mission-critical autonomous infrastructure over the long term. The initial program is structured as a 1- to 2-year national defense initiative, designed to move from development into large-scale operation deployment while continuously expanding scope and value. During this period, the program progresses through defined phases, beginning with system design and autonomy deployment, followed by full system integration and national level validation. These phases established the technical and operational foundation required to support live deployment along border lines. The program then transitions into operational rollout where autonomous drones swarms are deployed to deliver persistent around the clock ISR and rapid response capabilities. As deployment expands, the program scales through additional fleet deliveries, geographic expansions and continuous capability upgrades. Ongoing deployment, advanced autonomy features and life cycle support are built into program structure, allowing the system to evolve as operational requirements change. Across these phases, the initial program is expected to generate significant organic growth. With the combination of deployment, expansion and follow-on development supporting a cumulative opportunity that can reach more than $100 million over time. Beyond the initial national deployment, we see much larger opportunity to expand this technology globally with allied nations. Many allied countries face similar challenges in securing long and complex border lines and are actively seeking proven sovereign grade autonomous solutions. Once validated at national scale, this architecture can be replicated across multiple allied customers through multiyear programs, enabling large area border protection using autonomous drone swarms integrated with centralized command and control. As this model is adopted across multiple countries, the cumulative opportunity expands significantly with the potential to reach a multiple hundreds of millions of dollars over time.

We are actively participating in the Drone Dominance Program. A $1 billion Department of War initiative designed to rapidly fill the small one-way attack UAS at industrial scale. This program reflects a fundamental shift in how the U.S. military is approaching unmanned systems. Moving away from low-rate bespoke platforms toward mass production aligned with modern conflict realities. The objective is rapidly filled up to 340,000 low-cost attack drones over the next 2 years. While rebuilding structure domestic manufacturing capacity and strengthening the U.S. defense industrial base. The program prioritizes affordably simplicity, production speed and secure supply chains with a clear focus on the U.S. manufacturing and NDAA compliant components. Initial Department of Defense orders under this program could be placed as early as February 2026, underscoring the urgency and the scale of this initiative. American Robotics submitted the Wasp platform to the Drone Dominance Program in January 2026. Wasp is a purpose-built, low-cost rigidized small UAS engineered specifically for one-way attack missions. The platform has demonstration -- demonstrated both air-to-ground and air-to-air attack capabilities and is designed for high-volume manufacturing rather than customized low rate production. Wasp is manufactured in the United States in Pennsylvania using NDAA-compliant components. Its design aligns directly with the program requirements for scalable production, operational simplicity and rapid deployment, positioning American Robotics to compete effectively as the Department of War accelerates procurement under this initiative. This program represents a significant opportunity to participate in a large-scale multiyear defense procurement effort while further establishing Ondas and American Robotics as a trusted provider of mission-ready autonomous system built for modern warfare.

Success in the Drone Dominance Program is ultimately determined by supply chain integrity and the ability to manufacture at scale. And this is where Ondas is particularly well positioned. The Wasp platform was designed from the outset to meet NDAA compliance requirements with secure sourcing, traceable components and control electronics built into the architecture from day one. Initial production units have already been delivered from U.S.-based manufacturing, validating our Made in America execution and our ability to meet department of War expectations on compliance and security. Beyond compliance, our approach is built for scale rather than relying on subscale assembly operations. We have structured an industrial contract manufacturing model anchored by Kitron in Johnstown, Pennsylvania. This provides access to automated high throughput production lines, supported by defense grade quality and compliance systems. Without requiring Ondas to carry the capital burden of building and operating dedicated factories, this model gives us the ability to rapidly scale output and meet surge capacity requirements driven by conflict or accelerate procurement time lines. It also creates a structural advantage in programs like DDP, where volume, speed and consistently matter as much as platform performance. Importantly, we are aligned not just with the specification of the program, but with its intent. We are delivering a mission-ready platform through Wasp, paired with industrial scale U.S. manufacturing and the ability to support sustained high volume procurement. This integrated approach position Ondas to compete effectively in Gauntlet style evaluations, meeting aggressive delivery schedule and support long-term production programs. At the same time, this model supports the war fighter while strengthening the U.S. defense industrial base. which is a core objective of the Drone Dominance Program.

We are actively involved in advanced and in some cases, classified programs focused on ground robotic support for maneuvering forces and border protection missions. Unmanned ground vehicles are becoming essential for persistent border surveillance and autonomous patrol operations, operating independently and in coordination with aerial systems. These platforms enable early detection, continuous tracking and rapid response to incursion targeting military bases, border zones and critical assets while reducing risk to personnel. We are working closely with customers on full border life cycle operations, beginning with terrain preparation and clearances, followed by lower defense and long-term sustainment. This approach integrates ground robotics into ongoing security operation rather than treating them as isolated tactical assets. Our capabilities extend into autonomous mine clearance, explosive ordinance disposal and high-resolution terrain mapping supporting both force protection and operational mobility. In parallel, we support the secure installation of border infrastructures, including fences, sensors, communication networks and integrated security system, often operating in contested or high-risk environments. Together, these programs demonstrate how ground robotics are evolving into core component of modern border and force protection architectures. Operating as part of an integrated air and ground system designed to deliver persistent responsiveness and operational resilience at scale. We are seeing very strong demand across our markets for unified air ground protection, driven by customers who are dealing with increasingly complex and multi-domain threats. Military, home and security and civil authorities are looking to protect bases, compounds borders and critical infrastructure with solutions that operate as one integrated system rather than a collection of disconnected platforms. The requirement we hear consistently is for a single operation domain that connects aerial and ground sensors and effectors and enables faster, more coordinated decision-making. Our approach brings together UAS, counter-UAS and unmanned ground platforms into coordinated architectures that supports detection, tracking, command and control and response across both air and ground threats. This integration enables persistent surveillance, early warning and rapid engagement while simplifying the operations for the customers.

From a commercial perspective, these discussions are increasingly focused at full solutions rather than individual products. Customers are engaging with us on integrated air-ground architectures that can be deployed, expanded and sustained over time as the requirements evolve towards multi-domain defense. These conversations are active across multiple regions and customer segments and we expect to provide updates as these engagements progress into formal programs and operational deployments. I will now hand the call back to Eric. Eric?

Thank you, Amossi. Now we will turn to outline the strategic growth program. As we transition into the strategic growth program, it's important to step back and look at the structure of the market we're operating in. The unmanned and autonomous systems market remains highly fragmented and is dominated by subscale, undercapitalized single product vendors. That fragmentation will not persist indefinitely. Markets like this only organized once. When scaled operators emerge with capital, integrated platforms and execution capabilities, the leaders will become clear. Again, this only happens once and the rewards will compound from the leaders and their investors over the next 10, if not 20 years as the investment cycle booms. We believe that industry organization phase is beginning just now we are focused on positioning Ondas to be one of those winners. To execute that strategy, we've assembled an extremely experienced and dedicated team focused on strategic investments and acquisitions led by Mark Green, our Head of Corporate Development and M&A. Mark and his team are responsible for creating and implementing rigorous processes to identify, evaluate and execute transactions that strengthen our company and accelerate growth while maintaining capital discipline. We have the vision, the expertise, the capital and most importantly, an executable plan to lead and win in this market. With that, I'll turn it over to Mark to walk through the strategic growth program and how we're executing against it. Mark?

Thank you, Eric. I want to start by highlighting that our strategic growth program is off to a great start. We have structured our corporate development efforts with a cross-disciplined team governed by rigorous disciplined and thorough processes that are repeatable. This disciplined process is focused on accelerating our operating model to drive a high return financial model. Most importantly, this strategy is designed to deliver enhanced returns for our investors that are substantially accretive to our core growth plan.

We have a very specific filter for what we seek. Core alignment. We seek to acquire companies within our core domains and target markets. proven leadership, we look for market leaders and high-growth scalers with excellent management teams. Financial scale, we require customer-validated financial scale and clear operating synergies. Fast track access, we prioritize targets with critical partner and government relationships that provide immediate access to major programs. Our required outcomes are clear. a broader global portfolio, expanded supply chain scale and long-term recurring revenue from field support and lifecycle services.

Let's look at the target profile we use to vet these opportunities. We evaluate every deal across 4 strategic pillars. Strategic alignment. Our focus is on dual-use markets: defense; homeland security; public safety; and critical infrastructure in our core domains of autonomous platforms, counter UAS payloads, communications, C2 and sensors. By targeting these specific areas, we ensure interoperability. This isn't just a buzzword, it's a financial driver that expands our TAM and allows us to leverage supply chain efficiencies and manufacturing synergies immediately upon acquisition.

Financial profiles. We categorize targets from market dominators with global scale to strategic early-stage ventures that provide deep-tech. Each has its advantages that we can leverage to the maximum. Strategic footprint. We are building a globally scaled organization with localized service delivery across allied markets, prioritizing targets with key government and military relationships in the U.S., U.K., Europe, Israel and beyond.

Leadership excellence. We demand high-talent density, leaders, engineers and team members that share our innovative DNA and track record of combat proven capabilities and a proven ability to deliver for our customers. What does this look like technically? We are building a system of systems across 6 high-value categories that Eric referred to earlier.

These include, and I will try to be succinct, Autonomous Platforms, multi-domain robotics that would allow us to expand our aerial and ground portfolios for ISR and logistics while also maintaining long-term optionality with potential expansion into Unmanned Surface Vessels or USVs, counter-UAS, integrating soft kill, cyber protocol manipulation and electronic warfare jamming with hard kill kinetic and directed energy systems.

C2 and Comms. This is the systems of systems backbone and an important area of interest for Ondas, ranging from secure proprietary links and networks to swarm technologies for multi-platform orchestration. Sensors & Payloads, radar, imaging and loitering munitions also maintain relevance and interest for Ondas. In 2025, utilizing this scalable growth platform, we acquired 6 highly synergistic companies, transforming Ondas from a single domain aerial company into a high-growth multi-domain solutions provider.

This included Sentrycs where we added best-in-class cyber-over-RF counter-UAS, giving us the ability to detect and take over hostile drones non-kinetically. Roboteam and Apeiro Motion; these acquisitions gave us combat proven tactical ground robotics and advanced mobility for contested environments. 4M Smart Demining, this brought land intelligence and data-driven threat detection to our portfolio.

In line with our program, these companies gained expanded market access, a scaled operational platform and growth capital needed to scale their innovations, and they are set to soar. Looking to 2026 and beyond, our momentum is accelerating. Our goal is to drive faster revenue growth and deliver significant system complementarity and operating margin leverage across the platform to lead to higher levels of profitability. The pipeline is substantial.

We have over 20 targets in our M&A pipeline, of which at least 7 are currently in advanced activity. And we have a potential revenue pipeline from the 2026 strategic program, which exceeds $500 million. I want to add, and this is important, as Ondas has begun to execute its strategic acquisition program, we have begun to see a significant amount of inbound interest in defense and security technology providers interested in joining Ondas.

Of course, this is due to our growing credibility as a market leader, driven by a programmatic M&A process and a significant on-balance sheet financial resources. We are also seeing an increasingly mature set of acquisition candidates join the pipeline, characterized by larger revenue streams and in many cases, already profitable businesses, which are highly synergistic with Ondas. I expect this pipeline to continue to grow and mature substantially. But to be clear, we aren't necessarily optimizing for the size of the pipeline. We are optimizing for the quality of the technology, people and business.

Our goals are aggressive but calculated. We are adding and broadening our platforms globally to drive faster revenue growth and deliver significant operating margin leverage. We have the plan, the people and the pipeline, along with the capital to execute our program. This is a highly accretive and repeatable plan from a shareholder value creation perspective.

Thank you, Mark. We will now briefly transition to an update on Ondas Capital. We had intended to carve out a dedicated time in December with James Acuna in the Ondas Capital team for a deeper dive with investors. But given travel schedules and the substantial workloads related to advancing our investment program, which includes time on the ground in Ukraine, we are now targeting a focused session within the next 1 to 2 months.

We appreciate your patience. As a reminder, we launched Ondas Capital in the third quarter of 2025 as a strategic investment platform with up to $150 million earmarked for investment. Personally, I hope we have the wherewithal to do much more than $150 million here, but I think it's a good start. The focus of Ondas Capital in our investment program is on opening global markets for Ukrainian and Ukrainian-inspired entrepreneurs who are delivering combat-proven defense systems protecting Ukraine in the war against Russia.

By investing in and alongside these companies, we can build operating businesses around localizing these technologies into trusted U.S. and European production and deployment. Since launch, we've made considerable progress staffing and standing up the platform. The effort is led by James Acuna, a drone warfare expert based in our Estonia office, and the team is actively advancing opportunities aligned with our broader strategic growth objectives.

I'm very pleased with the progress Ondas Capital has made. Since the launch in September, we've built a highly capable team supported by an impactful global advisory board with deep expertise and strong influence across defense, security, finance and government. That foundation has allowed us to rapidly expand critical relationships across U.S. and NATO countries, ranging from government and defense organizations to supply chain and integration partners as well as like-minded financial firms and investors.

Similar ecosystem relationships are being established and advanced directly on the ground in Ukraine. As this ecosystem has come together, our investment pipeline has grown meaningfully and now translating into real actionable opportunities. We have over 300 companies we are tracking in our database and are in active diligence on 9 specific opportunities. We expect to fund our first investment in the first quarter of 2026.

A good example is our announced letter of intent with Drone Flight Group, where we intend to invest up to $11 million to help open U.S. and European Union markets for their platforms. In short, Ondas Capital has moved quickly from concept to execution. We have now established it as a credible transatlantic private-capital investor and integrator in critical defense and security markets, and we look forward to sharing more details with you soon.

Ondas has also built a portfolio of targeted strategic minority investments. This is a smaller component of our investment programs, but it's highly relevant, strategic and provides opportunities for meaningful financial gains. These investments are guided by clear criteria. We focus on strong strategic and mission alignment with our ecosystem, mature technologies that are relevant to near-term customer requirements and opportunities to enhance our platforms through collaboration or supply chain access.

Just as importantly, we require attractive entry valuations with meaningful risk-adjusted upside. The objectives are equally clear: build relationships supporting critical technologies and innovation roadmaps, strengthen strategic partnerships, preserve capital flexibility and generate significant financial returns. We believe Ondas has a unique advantage as an industry participant. Our operational and technical insight allows us to better understand both the risks and the upside of these opportunities and to structure investments that benefit from that knowledge.

That approach is already producing results. Since our initial investment in September, our publicly listed portfolio, which includes LightPath, Safe Pro AI and Kopin has generated an 85% unrealized gain, validating both our entry discipline and our understanding of the underlying business dynamics. We also made a larger investment in a private company, PDW based in Huntsville, Alabama. While private valuations are not marked in the same way, we believe PDW represents an excellent long-term opportunity with strong performance potential, and we will likely provide multiple avenues for strategic collaboration over time.

Overall, these minority investments complement our platform strategy, delivering financial upside while strengthening the ecosystem around Ondas and reinforcing our position as a scaled, informed and disciplined participant in this market. I want to now turn to the financial outlook. And as I do, I want to thank you again for being with us. We've covered a lot today, and this is the final section before we turn to investor Q&A.

As we outlined last July, and as we've discussed throughout today, we've made significant progress operationalizing the business at Ondas following an extended period of technology development. That transition is deliberate and foundational. For many years leading up to 2024, our focus was on platform and solutions development, commercialization and demonstrating product market fit.

A couple of years ago, we transitioned to the service delivery phase where we focus on advancing a scalable operating platform, building partner ecosystems and expanding into high-value use cases across the United States and Europe. As a result, we will continue to invest heavily in our operating platform. That means OpEx will remain elevated as we scale sales, production, integration, field services and support infrastructure.

Of course, with new financial resources in place, we have the ability and the intention to push harder on both our core and strategic growth levers. Ultimately, this investment phase is designed to position the expansion flywheel. We expect 2026 to be a strong year of execution and scaling with the flywheel accelerating meaningfully in 2027 and beyond as global operations expand and platform adoption broaden across defense, security and critical infrastructure markets globally.

We are on track with this plan and the progress we've made gives us confidence in the path ahead. This is where we want to be very clear and very direct. As we've said throughout our presentation, we expect 2026 to be a strong year for Ondas, and we expect to generate revenue in the range of $170 million to $180 million. That represents over 250% growth relative to expected 2025 revenue.

On a pro forma basis, which assumes a full 12 months of revenue from the companies we acquired in 2025, this represents growth of more than 75%, an exceptional growth curve by any standard, which we believe is just beginning. As we referenced earlier, our end markets remain strong and are still very early -- in the very early stages of a multiyear adoption cycle.

Demand across defense, homeland security and critical infrastructure continues to build, and we believe our current outlook may ultimately prove conservative. We also expect bookings to reach at least $300 million in 2026, which provides the opportunity to continue growing backlog and supports revenue visibility beyond the year. On the right, we're providing context on the expected revenue mix across our major markets today.

This is counter-UAS, ISR across air and ground and UGV platforms. This is a consolidated outlook across the company. We do expect Ondas Networks to begin showing growth, but we are intentionally keeping expectations low here until orders convert. I want to emphasize again, we believe we have high visibility into achieving these revenue and bookings goals. Do -- indeed, we believe the strength of our pipeline and end markets could make this outlook a conservative one.

Finally, it's important to emphasize this outlook does not reflect upside from our strategic acquisition program. We believe that disciplined, accretive M&A has the potential to materially enhance growth beyond what we are guiding to today. In short, we believe Ondas is entering a period of accelerated revenue growth with multiple layers -- levers to drive upside as we execute through 2026 and beyond. Here, we want to share a few additional data points that frame how we think about the financial model as the business scale.

We continue to expect gross margins of approximately 50% across the company. Over time, we believe margins can move higher as volume increases and our supply chain and production processes mature. Design for manufacturing, platform reuse and scale efficiencies are all expected to support margin expansion as the business grows. At this stage, we are not providing a fixed OpEx target for 2026. We are actively investing to scale the OAS operating platform across sales, service delivery, integration and support, and we believe these investments are necessary and appropriate to support a much higher structural growth rate.

We will look to share more context for our OpEx plans on our earnings call in March. I want to also add that we have arranged our production and supply chain infrastructure to support our current outlook, and we will continue to invest in this critical area as demand scales. This will be critically important. As always, we will be transparent as the model evolves and provide updates along the way. Now let's talk about operating leverage in our financial model. Delivering capital-efficient growth is a core priority for Ondas. The way we demonstrate that to investors is by clearly showing how our OpEx investments, of course, ranging across product development, sales and marketing, supply chain, production and field services translate into revenue and gross profit growth that outpaces expense growth over time.

Ultimately, we also need to absorb corporate overhead, including finance, administration and public company costs. The success of our model depends on accelerating revenue and gross profits well above our OpEx growth. We believe we will demonstrate that, and we want to help you understand how we think about it. Essentially, we are designing our OpEx model to support rapid growth with a path -- with a staged pathway to operating leverage across 3 stages of profitability.

We see our product company layer as turning EBITDA positive first. These are the entities that develop, produce, deploy and service systems directly for our customers. As scale builds and margins mature, we expect our product company layer to turn EBITDA positive first, again, and we are targeting that by the third quarter of 2026 this year. Once the product companies are profitable, continued sustained revenue growth and higher levels of gross profit will allow us to absorb OpEx at the OAS operating platform.

In essence, OAS is our centralized operating platform where we invest in integration, shared services, systems and scale to efficiently support higher levels of growth for our product companies. We are targeting reaching EBITDA positive results at the OAS layer by the third quarter of 2027, and we believe that could come sooner if we are able to accelerate revenue growth above our current expectations.

Finally, we need to cover the OpEx for the parent company, Ondas Inc. This includes public company costs, the remaining investment phase at Ondas Networks as we manage expenses ahead of their revenue inflection and the costs associated with Ondas Capital. Importantly, Ondas Capital is designed to generate equity gains that help offset its costs by also creating ecosystem value for the core businesses.

We are targeting being EBITDA positive at the current parent company level by the first quarter of 2028. Of course, as with the other layers, we will work to accelerate that time line through execution and growth. Taken together, this layered structure is how we think about operating leverage. As revenue scales, each layer is absorbed in sequence, creating a clear and disciplined path to profitability while continuing to support high growth and leadership.

As we prepare to wrap up our prepared remarks, again, thank you for sticking with us this long. I want to step back and frame the opportunity we see in front of Ondas in the context of market outcomes. What we are seeing is a generational opportunity in the sector which we compete, and we firmly believe that after an extended period of technology development and maturation, we will see the market organized to create large-scaled players.

Indeed, the dynamics are clear. Adoption of autonomous systems at scale requires strong, well-capitalized and operationally mature providers. Fragmented subscale vendors cannot meet the requirements of global defense, security and critical infrastructure customers. Meanwhile, the total addressable markets are large and growing, yet current market penetration remains low. As a result, today's equity capitalization across the sector is modest relative to the opportunity. That sets the stage for what comes next and of course, is a massive opportunity for investors.

Over the next decade, we see significant TAM penetration and concurrent substantial increases in sector market capitalization as high-return technology-enabled markets mature and meaningful consolidation occurs. The number of competitors will shrink and market value expansion will increasingly accrue to the leaders. That process has begun and market leaders are being identified now.

Ondas is positioning itself to be one of those leaders. We are investing ahead of the curve, building scale, strengthening our operating platform and consolidating capabilities while many others remain capital constrained. We believe this investment cycle will create a small number of very large and valuable companies, and we intend to be among them. This is why we have emphasized execution, capital discipline and long-term platform building throughout today's presentation.

We believe decisions we are making now will define outcomes not just for the next few quarters, but the next 10 years and beyond. For our final remarks, I want to step back and frame the 5-year opportunity to help you understand what we are building toward. We shared a similar slide at our Investor Day last July. At that time, we were just launching our core plus strategic growth plan. We have conviction, but we were not yet fully capitalized to win. Today, that has changed.

We now have the balance sheet, the operating momentum and the strategic clarity to pursue this opportunity with much greater ambition, and we believe that ambition is entirely achievable. Back in July, our expectation was to reach $100 million revenue run rate by the end of 2026. Today, we are guiding to a revenue range of $170 million to $180 million for 2026. That's 70% to 80% above our prior ambitions just 6 months ago.

We believe that the outlook is conservative given the demand environment and the platform we have built. Looking further out in 2030, we previously believed we could generate more than $300 million in revenue. With our operating plan now in motion and our balance sheet significantly strengthened, we believe a much larger outcome is possible. Based on what we see today, we believe achieving $1.5 billion or more in revenue within 5 years is an achievable goal. As we scale, profitability follows.

The model we've outlined supports strong margins, meaningful operating leverage and the transition to a highly profitable global business. When you combine that growth profile with durable platforms, global scale and leadership in large and expanding markets, we believe a $15 billion or greater market capitalization is well within our reach. Of course, none of this is guaranteed. We have a lot of work ahead, and ultimately, it comes down to execution. The market is there for us.

The responsibility is on our management team to deliver. To that point, I want to be very clear. Our management team is all in. We are fully committed to capitalizing on the exceptional opportunities we've created, executing with discipline and building the important, durable and valuable company we believe Ondas can become.

With that, thank you for your time and your support. We will now turn to questions. Operator?

[Operator Instructions] And our first question today comes from Amit Dayal from HCW.

Just in the context of the acquisitions that have taken place over the last year and acquisitions coming in 2026, how much of that product portfolio is commercial ready? And what are the plans for R&D spend over the next, say, 1 or 2 years?

Yes, great question. And I think what Mark was emphasizing is what I'll emphasize is we're focused in our strategic acquisition program on mature technologies and not just mature technologies that have been validated as operational and valuable in the field by customers. And it goes further, we also have the -- in our diligence, have the understanding that the customers intend to expand their business and deployments of the technologies.

So we're not, by and large, interested in early-stage or pre-commercial technology platforms. That's not our growth model. In terms of R&D, I think you'll see us focus more on advancing the platforms and their capabilities as well as focusing on the integration activities that Meir spent a lot of time talking about in the systems and systems architectures where we're deploying the solutions we're developing for customers.

Understood. The outlook, Eric, for 2026, is that spread across multiple deals? Or is there any concentration in that outlook right now?

No, there's not a significant amount of concentration there. We do now have a broad breadth of platform technologies. I think you're going to see us, for sure, do very well in the counter growth space with both the Iron Drone and Sentrycs portfolios. But you're also going to see us do very well.

We've got quite a bit of momentum in product and end market and customer maturity with the ground robots as well, the UGVs with both Roboteam and Apeiro. And 4M is going to have a very good year as the demining operations start to grow. And we think that's going to be -- just specific to that, we think that's a long-term opportunity that could be quite substantial. So I see there's a diverse pipeline that we're executing against. I see growth across the entire platform.

Our next question comes from Timothy Horan from Oppenheimer.

I have about 10, but I'm going to focus on 2. It seems like the defense industry is absolutely getting turned on its head. And I guess we can say the same for physical security and monitoring and on and on. Your platform, will all of your offerings be accessible from one platform? Are they very interoperable at this point?

Great question, and they're very interoperable, not just within our architecture. So for example, we can deliver Iron Drone or Sentrycs separately and deliver them integrated. We are working on integrating our drones, including the counter drone systems with our ground vehicles. At the same time, our systems are modular, and that is a very important market requirement, which -- that means is if we're deploying them, very often, we have to integrate with other systems that the customers either prefer or already have installed and operational.

So for example, when we're deploying Iron Drone, if the customer has a detection tool, that's typically going to be radar or some other sensor, acoustics, optical, et cetera, to detect the threat of a hostile drone, we can plug into that detection tool or system and then be able to mitigate the threat with the information that, that system provides us. So it's both internal that we're interoperable in expanding that, of course, but it's also with the rest of the market.

And in that point, how interoperable would it be for like a defense company or sorry, agency or Army, how hard would it be for them to interoperate -- integrate this with their Command & Control systems or existing intelligence systems?

Let's see -- Meir, can you add a little bit more color to that?

Sure. Again. So we have a data platform and unique -- unified command-and-control. We can integrate with the command-and-control of the client through API, SDK and so. And of course, we can integrate whatever is out there in the market from the detection through the effectors, soft kill, hard kill, but also drones, UAV and UGV. We have our own brand and a unified C2, but we can integrate it with whatever the client needs from us.

Eric, is there -- it's pretty crazy what's going on right now, obviously. But is there any technology platform or business model or company that you're trying to emulate or look for, for guidance that's happened historically?

Yes, there are. I mean I do learn from others and other even technology adoption cycles as to how these develop and strategies you can deploy, both operationally and financially. Maybe I'll say this first, Tim. Most of the drone companies or robotics companies in the market today are sort of on that path of maturity that you've seen us on up until recently.

That means they're engineering-led, smaller subscale, but they are poised to see adoption. The problem is they don't have the operating platform, and they don't have the balance sheet. That's an issue for them. That's an issue for customers, and it's not a small issue. Now we see -- of course, you know a lot about our model. We see others trying to adopt similar operating and financial models. The marketplace has begun to refer to these companies as [ near ] prime.

So I don't want to maybe highlight any one of them. But there's a handful. And there's a bit of a race here, I think, to do this because, as I said earlier, this is a generational opportunity to organize the market. So I think at the end of the day, we're going to see this happen at an accelerated pace over the next several years. And we're going to be on the path to that small number of players.

And I'd say it's unlikely that a new player emerges with some new mousetrap or even a financial model because to build this isn't just about money, and it's not just about technology and your engineering team because all of this stuff takes a long time, not just to develop, but to integrate and to mature and bring to the market. So the platform we're building in Ondas is sort of on the cutting edge here I think of this opportunity.

Our next question comes from Michael Latimore from Northland Capital Markets.

Excellent. Congrats on the good year and outlook. I guess, Eric, on the guidance for the year, $170 million to $180 million, I think that's up from $140 million roughly. Does that assume any new acquisitions? Or is that just based on your current product portfolio?

That's just based on our current product portfolio and the momentum we see in the business.

Great. And then the expectation of $300 million in bookings, is that over -- is that like a multiyear bookings? Or what kind of time frame should we think that reflects?

That's -- those are the bookings we're expecting and targeting this year. And of course, we do want to beat that. So -- but we think it's a good starting point. For some context, I think it's fair to say that the counter drone market is really poised for an exceptional year. And this is really the first year, right? This is only in the last couple of years that we've seen the requirement to protect the lower skies emerge.

So -- and the demand curve we see here is global. There's a lot of focus, particularly in the U.S. market and with you as investors on what's going on with homeland security and the FIFA World Cup. And of course, that's very important. There's other activities inside of the Department of War and the Armed Services branches. But I also would add that the urgency in Europe amongst NATO countries is just as acute and if not more, because they're sitting on the doorstep, of course, of the Ukrainian and Russian conflict.

So I think it's there. I also think that the work we're doing with the Roboteam, for example, they've done that foundational work. They've been working with customers for a while now to advance and broaden their capabilities. So -- and they're touched on how that market now is seeing some urgency in and around urban conflicts in preparation for those sorts of conflicts.

So -- and I'd highlight that ROBOX, you're going to hear a lot more about that platform, which is in and of itself an exceptional integrated solution. So -- and with portability. So we see that bookings is going to be broad, and it's visible. And this is really just -- in terms of our markets, the adoption curve are really just starting off a small base. So the growth rates are going to be very high.

Yes. And you expect to recognize that -- those bookings over what time frame?

This year, that's a 2026 bookings target. So we'll be building backlog through the year as well.

Got it, okay. And then the swarming technology, is that your own? Or is that third party? It sounds like that's increasingly important.

Yes, it is important. And Meir, do you want to shed some light on that?

Sure. We are working on that in the last 2 years to make sure that we have the [indiscernible] system. We already deployed around the world with this system, and now we're working on the swarm capabilities. Everything is our own, the software, the brain. Of course, we use subcontractors for different feature, but most of it is our own production. And of course, for now, we operated as a combat proven with some of these capabilities around the world.

Our next question comes from Jonathan Siegmann from Stifel.

So part of the company's ecosystem is a third-party contract manufacturing capacity, and you've disclosed line of sight of $170 million to $180 million of revenue this year. You mentioned the pending addition of Europe. Are there other gaps that need to be filled? And how would you suggest we think about the company's current revenue capacity as we think about $1.5 billion of revenue in 2030?

Good question. So in terms of our current capacity, we can meet our revenue outlook for sure. So we feel very comfortable with that. And Jon, I'm sorry, what was the front end of that? You wanted some context around the global capabilities and the flexibility or...

Just how much more partnerships and expansion of that third-party contract manufacturing do you need?

Great question. I think with this lineup, we're going to be -- that you see on one of the slides we showed, I think we're going to be in good shape. At the same time, what we're seeing is a lot more interest from the ecosystem of folks who want to support us. So I do believe that we're going to -- you should expect us to add additional manufacturing partners. I'll come back to that point in just a moment.

I want to highlight Heidelberg. We did make the announcement in December that Heidelberg was going to be an important partner for us in Europe, and they're very capable on the manufacturing side as well as supporting customers in the field and helping support even the sales and marketing efforts in Europe. So we're excited about that. And we -- you should expect to hear a lot more about that. We're working hard with them to put some more structure around that announcement.

At the same time, one of the fascinating things here is, and you've heard us talk about it, is the industrial base, both here in the United States as well as in Europe is an issue from a national security standpoint, and it's something that the authorities are clearly trying to stimulate and fix from a policy standpoint. And we want to be part of that, of course. Now folks are doing this all different ways and every -- all of them are valuable in their own right.

You're seeing a bunch of folks go and build vertically integrated production capabilities, right? So they own factories, and they're doing it themselves. And I think that's great. You're going to see us do that in certain places as well. At the same time, I think what's underappreciated because it does seem to be like just a daunting task, how do we rebuild this industrial base.

And I think one of the unsung heroes here will be the contract manufacturing community because this is what they do. One of the challenges, however, is the big CMs of the world, and we have some of the logos on one of the slides. Kitron is another good example. They can't support a cottage industry, right? So if you're the CEO of the Board of a major global contract manufacturer and you talk to the Department of War and you say, "Hey, we need you to build drones." They say, we'd love to do that, right? The Board and CEO say that. And then they'll say, okay, well, they'll tell the business development folks, okay, we're good.

We'll go build the drones, and we'll tell the drone companies, and it will be all set. And the BD folks say, okay, well, there's 300 drone companies. They all want us to build 100 drones every 6 months, which ones do we work with? And that's a problem. And what I'm seeing here as we literally in just the last 6 months is that the ecosystem around supply chain and production is watching what we're doing and saying, wow, this is very interesting because Ondas is building a portfolio of capabilities.

And of course, they're in the air, in the ground, and we're going to continue to broaden those platforms. Basically, we're presenting ourselves as a company that they can scale with. And I think that's really important. So I think the velocity of all this over the next 2 or 3 years is actually going to work to accelerate that maturation or the rebuilding of our industrial base. And that's the thesis, but I can tell you just anecdotally early on here, that does seem to be the case. So we're really excited to see that.

Our next question comes from Maxwell Michaelis from Lake Street Capital Markets.

A lot of information to digest here, but I kind of wanted to go back to Project Hives and sort of the time line around that. I see that there's kind of a larger long-term potential with allied nations. Maybe starting out in the development phase right now, I believe -- and then scaling up further down the road, I mean once you're kind of done with this first initial program, do you need to go through this whole development integration deployment phase? Or does it become more plug-and-play with other allied nations, I guess?

Okay. So a couple of things. This program is expected to be 1 to 2 years, and we're going to do our best to accelerate that because it is of critical importance to the customer as well as to Ondas, of course. And then I would say that as we're thinking about taking this globally, you may see in different countries because -- well, first, I think the demand there is the requirement here for autonomous loitering munitions infrastructure, which we call the hives.

We do think it's a global requirement. So the market should be there. And as we go into other markets, you may see some modifications required to meet local requirements. But I'll get back to what I -- the point we made earlier in a similar question, but difference is that these systems are modular. They are designed to be in interoperable, and we would be able to integrate this system that we're developing with other technology providers in other markets. I'll ask Meir again. Meir, would you add anything to that?

No, I totally agree with you, Eric. Everything will be in the future plug-and-play for future clients, of course, and it will be ready during the year.

Perfect. And just my follow-up question. When we look at that -- I know it's a ways away. It includes quite a few acquisitions, I assume that $1.5 billion of revenue. But is there an organic revenue growth rate assumption there for management? And I don't think you shared one in the presentation, but is there something you can help us understand kind of what you're thinking from an organic growth standpoint for 2030 or through 2030?

Yes, I will. And as I do that, I think one thing I'll highlight is that we have won that program, but we haven't gotten the first order yet, and we are expecting it soon. So I want to -- the reason I'm saying that is it's not in our backlog. So to that point. In terms of organic growth rates over the next 1 or 2 years, they're going to be just incredibly high. And the growth rates themselves will look -- off a small base, it's just going to be massive.

Now if I took a 3- to 5-year view, I mean, I think the underlying growth rates here from specifically what we're doing around unmanned and autonomous systems is going to be easily 50% to 75% and in some markets and products would be higher. It's -- we're basically just seeing the turn of an industry that we've been -- we, I'd say, collectively, not just Ondas, but many of our peers have been building foundational technology for a decade or more. So it's going to be a very strong growth environment.

Our next question comes from Matthew Galinko from Maxim Group.

Appreciate all the time you put into this. First, just on the 2026 revenue guidance, I'm wondering if there's any linearity we should think about and how that lands for the year, just given how we should be thinking now about 4Q and kind of that bump in '25? And I guess, secondly, on that revenue, is there any networks assumed in the 2026 revenue guide?

Any networks? Yes. So firstly, there is a little bit of Ondas Networks in there. Yes, I'd put it kind of $5 million into the Ondas Networks side of things because, again, this presentation was designed around what we're doing in the OAS businesses. They are making progress, and there is opportunities for -- to book significantly more orders and network build-out visibility this year for sure.

But as we have been, we're going to be waiting to make that assumption before we put it into our outlook in any meaningful way. So it is -- there could be an inflection point there. In terms of -- we're not going to get right now into the quarterly cadence here. We'll give you some -- I think we'll be able to give you a better feel for that when we report the fourth quarter in March.

And maybe just kind of an oddball question for you. But obviously, we're seeing some rumblings on the consumer side that the large AI adoption and investment cycles are kind of siphoning up some components. I'm wondering how that impacts or if it impacts your plans to scale up production and meet kind of those revenue targets. Is there any risk of component sourcing just given some of the major macro story?

I don't -- so I can't say no. But I think the visibility we have at the moment, we feel good about. The other thing I'll say is outside of the [ LAS, ] what we're building and deploying is not the mass affordable systems, right? We're building and deploying systems and their autonomous systems with higher price points. So it's not a volume game. I think some of those pressures will be felt more on the volume side.

And at the same time, one of the -- if you think about that specific to what the Department of War is doing drone dominance, I think it's fascinating and actually very extremely healthy for the market. What they're trying to do is not necessarily just find the best drone, best performing drone because I think relative to requirements, there's probably going to be a bunch of folks who can do that. What they're really trying to do is identify those who can produce at scale and -- scale, quality, volumes, et cetera, right?

All these critical things you need to do. This cottage industry is not acceptable because it's the opposite of resilience. So through this work, we're going to find pretty quickly the companies that have the best capability and the strongest financial position and in many ways, is going to be a key determinant of that.

And what that's going to do is also you're going to see some of that supply chain for sure, but it's going to be self-reinforcing because this cottage industry as it matures, the supply chain is going to be able to respond much more efficiently to the growth of these markets. And I think we're going to try to do everything we can do to be a contributor to that maturation.

Our next question comes from Mike Legg from Ladenburg Thalmann.

On the acquisition pipeline, could you talk a little bit about the competition for those acquisitions and then also how you're valuing those acquisitions?

Sure. So firstly, I'll come back to what I said earlier, and it's a really important point vis-a-vis the competition is the vast bulk of this sector, the unmanned and autonomous sector is fragmented, right? It's small companies. And the vast majority of them outside of a handful of well-funded competitors are extremely capital constrained. And that's the market that we're seeing opportunity in.

Now in that market, you're going to be careful because fully funded companies oftentimes have challenges at maturing their technology, capturing customers. But there's so many of them, and we do have that expertise that simply just a financial buyer wouldn't have. I would submit to identify the technology platforms, the teams and the customer opportunities in our diligence. So I think where we're fishing, there's extreme capital constraints. And then I'll come back to that point about the financial buyers and the investors in those companies is to do what we're doing, you have to make that investment that we've described in OAS.

You have to have that relevance to the customers or the confidence of the customers that you can be the scaled mature provider of a platform that they're going to adopt for a decade or longer, right? You have to go and convince the supply chain that you should be at the top of the line because you're going to be the partner they want to bet on over the next coming 3, 5 and 10 years.

And I think what we're seeing is that there's not a lot of folks who can create that confidence, so there's not a lot -- so in any event, I don't want to say there's no competition, but I think we are very well positioned here to execute this plan. And we'll see how that changes. But coming back to the question that Tim had, we do see there's a handful of folks who are beginning to get the scale, and I think we'll see them in the market. But there's -- my take is that there's so much to do here today that I think the market is going to be very rational for the foreseeable future.

Okay. And how do you value them?

There's -- it's not science. We look at every company. We do extensive diligence, which includes financial diligence. We create financial models. And then we look at that and put a valuation on it and negotiate it. And I think I've been pleased with the way the team has been able to do that from the shareholder perspective of Ondas. But I guess, Mike, just to be frank, it's -- we're not -- this is a very traditional approach to making acquisitions.

Okay. Great. And then on the targets, are they interested in taking stock? And would you use equity? Or is -- you obviously have a strong cash balance? Do you think these all will be cash balances?

For sure. I think we're likely in most cases, to see a mixture. I think as long as our shares are at the proper level, we would prefer to use the cash for growth, so as growth capital to drive the business expansion. And we also see the benefit of using equity to align interest of the acquired companies, right?

So what we're asking is for the investors, but especially the management teams to go on this journey with us to build a big company together. And I see a lot of receptivity amongst the folks we talk to about these things. So that's some context. Every deal is different and unique. And the mixture of stock versus cash obviously has some relevance for valuation structures, et cetera. So that's just a bit of context.

Okay. Great. And then just one last question. On the backlog, you gave us guidance for -- I'm sorry, not backlog on the up -- yes, building up the backlog of $300 million in '26. What's the time to bring that revenue -- the bookings, yes, I'm sorry?

So that -- yes, I would say that the bulk of those bookings would be -- if they're not realized during this year, it would be next year in 2027.

When you book something, does it take 3 months for the revenue to come in and then the 12-month revenue time line?

It depends. And I don't want to get more specific than this, but we do have some higher velocity products that can be ordered and within a short period of time, certainly a quarter can become revenue and others are longer duration. And some of that will be determined by the visibility we have and our ability to -- or choices we make in and around inventory, right?

If we're highly confident, we may build in front of demand. And by the way, we're doing that. So that's some context. Some of the smaller drones we can build them faster than, say, the docking stations. So it kind of depends.

Okay. Great. And then just one last. On the $15 billion valuation goal, is that based upon the 2030 metrics you gave out?

Yes. I think it's our goal that I think is achievable. And I'd say it's -- I don't want to put a time frame on that, but I do think if you look at our 5-year plan, you see -- if you -- we're able to create confidence around that, I think we can achieve that more.

Our next question comes from Austin Bohlig from Needham.

Congrats on the solid Q4 execution. And just kind of wanted to start there. Can you guys point to anything specific that drove that strong upside?

I can't talk to it and point to anything specific other than the strong demand and us being in a position now to capture it and provide for it, right, to be able to build and deliver systems. I think I did mention as part of the prepared remarks that we did see strength across the platform. I do think the counter drone markets with Sentrycs and Iron Drone will continue to be particularly strong and be the biggest part of the mix, and we showed you a pie chart on that.

But the ground vehicles and the land intelligence are also very strong. So that's the context. I mean if I look at in the year going into '26, we do think that's sort of a similar dynamic. And on both bookings and revenues, if there's going to be that significant upside, which is possible. I think I would point to the counter market to be a particularly opportunistic thing or where that opportunity could come.

Okay. Perfect. And you may have just answered my next question. But so just like thinking about back your Q3 earnings call, you gave $110 million target and with Roboteam added $30 million, so $140 million. But it definitely seems like there's a clear acceleration in some of your business segments. So like what's driving this kind of incremental $30 million to $40 million new in probably just even like the last couple of months?

So -- and I do think we're still being conservative, right, because the demand -- the tailwinds are strong. But I think we are conservative then. So that's one thing. And then secondly, I just come back to the same answer where we're seeing the upside.

Okay. Perfect. And then a quick one. That 50% gross margin target, is that for '26?

Yes.

And with that, we'll be concluding today's question-and-answer session. I'd like to turn the floor back over to Eric for any closing remarks.

Sure. And I'll be succinct. Firstly, thank you to the operator. As we wrap the call, I want to thank you again for spending the time with us today. As we outlined, we do expect a very strong year in 2026, and we're leveraging that strong finish we had to 2025.

And we're going to be, as always, communicative, and we're going to give you more updates along the way as this year progresses. So we hope you enjoy the rest of the day. We're going to get back to the important work of building the company. And again, thank you for attending.

And ladies and gentlemen, with that, we'll be concluding today's conference call and presentation. We do thank you for joining. You may now disconnect your lines.

Good day, and welcome to the Ondas Holdings, Inc. Third Quarter 2025 Conference Call. [Operator Instructions]

Before we begin, the company would like to remind you that this call may contain forward-looking statements. While these forward-looking statements reflect Ondas' 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 Ondas' periodic SEC filings and in the earnings press release issued today, which are both available on the company's website. Ondas 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, Ondas 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 Ondas. I'm happy to be joined this morning by key members of our leadership team, including Neil Laird CFO; Oshri Lugassy, the Co-CEO of Ondas Autonomous Systems; Meir Kliner, President of OAS and the Founder of Aerobotics; and Markus Nottelmann, the CEO of Ondas 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 OES and Ondas Networks business units, while I'll ask Oshri and Meir to share commentary on current business activity and progress against our plans. During our OES 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 Sentrycs, who is joining the call to share some insight into the Sentrycs technology platform and business as well as a strategic fit with Ondas. After the operational updates, I will share an outlook for the remainder of 2025 and beyond, and 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, Ondas is positioned for success. That position wasn't luck. It's the result of years of hard work, discipline and planning. We earned it as of 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 we 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 remains critical, but they're not sufficient on their own to create high returns on capital and equity value. The orders 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 Ondas. 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 at the beginning what we believe is a major counter UAS boom, where Ondas is extremely well positioned to win. In July, we laid out our core 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 Ondas' 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 Ondas now has one of the strongest balance sheets in the industry, giving us access to a deep capital pool and a meaningful cost of 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 and 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 delivered another record quarter, not just financially, but also operationally. In the third quarter, we generated $10.1 million of revenue, a more than sixfold increase year-over-year and up nearly 60% sequentially from Q2. Our consolidated backlog log grew to $23.3 million, more than double where we started the year, and that number reaches over $40 million when including another $18 million related to acquisitions that have closed or pending closure in the fourth quarter. We expect our backlog to grow through the end of 2025 as our pipeline matures, given the strengthened visibility on customer order plans. Given the strength of our execution and 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 multiyear growth outlook where scaling production, fuel services and sustaining capabilities to meet accelerating global demand for our autonomous and unmanned systems. Oshri and Meir 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 stand-alone 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 establish Ondas Capital, which we launched in the third quarter. Ondas Capital is building a technology bridge from Ukraine to the United States and Allied European nations, focused on scaling combat proven unmanned and dual-use technologies into production and commercialization. This initiative broadens our reach, strengthens our industrial base and supports the growing alignment between innovation, security and economic resilience.

Meanwhile, Ondas Networks continues the hard work to drive adoption of its dot16 wireless connectivity platform. As Markus will share the AAR's wireless communications committee formally selected dot16 as a wireless road map standard for all AAR-owned frequencies, including the 900, 450 and now 160 megahertz networks. While the hard work will continue, this formal designation validates our long-term strategy and continues to position Ondas Networks at the center as 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, Ondas 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 road map we've been building over the past year and road map that's now delivering real tangible results. Ondas 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 Ondas Autonomous Systems where we continue to build the core OAS operational platform. Under Oshri leadership, that platform is scaling rapidly, supported by seasoned executives, and impactful cross-functional Advisory Board and a growing ecosystem of partners across technology, sales and production. Oshri and Meir will 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 Sentrycs, which will bring advanced cyber over RF throw detection and mitigation to complement our Iron Drone Raider. We added a payroll 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' autonomy portfolio. Other small yet strategic acquisitions that contribute engineering, AI and optics expertise were added, and that includes nickel engineering and Insight Intelligence sensors. At the same time, we formed a strategic partnership and made a minority investment in Risk 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 Ondas 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 is 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 and our path to profitability. We're building a stronger, more diversified Ondas, one capable of sustained performance, multi-domain leadership and meaningful long-term value creation.

Now let's turn to Ondas Capital. We are very excited to have formally launched Ondas Capital, which represents a powerful new strategic growth platform for the company. Ondas Capital is a multiyear 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 in unmanned systems, AI, and dual-use innovation that are already validated in the field and ready for production whereby Ondas 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, Ondas 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 Ondas 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, Talen, 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 moving 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 Ondas Capital will become a cornerstone for strategic growth, international collaboration and industrial resilience while creating new pathways for financial and operational expansion across the Ondas 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 Ondas 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 Ondas 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 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 a pair of ground robots related services under contract for 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 shift 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 increased 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 noncash items. Cash operating expenses, which exclude noncash 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 similarly at Ondas Holdings, the 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 30, 2025 compared to $30 million as of September 31, 2024. Cash used in operations for the first 9 months remained relatively flat at $26 million compared to $25.4 million for the first 9 months of 2024. Cash used in investing activities for the first 9 months of 2025, including 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 [ RIP ] previously. As it relates to investments in companies such as LightPath, Kopin and Safe Pro, 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 9 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 Klear, 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 of $433.4 million as of September 30, 2025 compared to $30 million as of September 31, 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 30, 2025 was $487.2 million compared to $16.6 million as of September 31, 2024. Furthermore, Ondas' 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 7, 2025. And be forecast used for operations and to finance acquisitions and investments in the fourth quarter.

And I'll hand it back to you now, Eric.

Now when we transition to a review of our business units and ask Markus, Oshri and Meir to provide -- to share updates on business development activity and operations at Ondas Networks and OAS. Let's start first with Markus who is moving on to networks in our 16 platform deeper into the railroad operating groups, which will eventually have its rewards. Markus?

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 dot16 key the IEEE standard that Ondas 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 dot16 for all new developments in the AAR on 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 on frequencies are destined to adopt dot16 [indiscernible] platform.

As outlined in the Q2 earnings call, the 160 megahertz network have characteristics that make it a compelling case for railroad investments. Specifically, the 160 megahertz network is ubiquitous. Where there is rail, there's 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 on 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 Ondas networks.

I would like to highlight how quickly momentum is building around dot16 on the 160 megahertz network. In Q4 and early next year, we are running several separate field trials on Class 1 and other railroads. Three railroads that in aggregate address long-term industry needs in significant markets. Specifically, these POCs address telecommunications signaling in connected wayside topics as well as general connectivity topics for connected railroad workforce. This is significant as it moves Ondas networks from engaging with railroads on individual use cases to implement dot16 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 track. 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 CESA, 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 generation 4.0 specifications. Given that the dot16 protocol that Ondas networks developed, for NGHE 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 product development tasks to take advantage of the updated WCC time line. We also continue to engage with the railroad and specific 900 megahertz applications, though time lines of large network deployments remain uncertain. The 900 megahertz time lines are frustrating, though we are creating even more compelling opportunities in addition to the 900 megahertz network with the railroads and believe the market international opportunity for our dot16 technology remains 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 beginning of the adoption curve in 2026.

I will now hand the call back to Eric.

Thank you, Markus. I will now ask Oshri Lugassy to take the floor and provide a business update for our OES business unit. Meir Kliner will also share some context on the progress of the build-out of the OS operating platform. We will also be joined by Tal Cohen, the Founder, General Manager of Sentrycs, 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 film. We are working relentlessly toward our vision of delivering next-generation autonomous and connected solutions for defense, homeland security and critical missions. OAS 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 autonomous infrastructure that nations and industry will rely on. Our goal is bold global to build a powerful global leader that deliver 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 interests cost by drones. We are prioritizing combining sensors that can detect and track threats from small UAVs to large ones with factors 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 OAS 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 as of 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 the multiple strategic acquisitions, which are adding immediate operational and financial value to Ondas. We established new partnerships and onboard top talent to strengthen and expand OAS' operational influence structure. We achieved several important milestones across our portfolio. Optimus was officially listed on the green UAS framework with inclusion on the Blue UAS list spending with a U.S. DoD.

At the same time, we continued to expand our global pipeline for the Iron Drone Raider, strengthening our position in the fast-growing counter U.S. market. We successfully executed multiple counter U.S. pilots in the U.S., Europe and Asia, demonstrating interoperability across our systems. Iron Drone Raider was showcased at the [indiscernible] counter U.S., ICE 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 Raider was also selected by Security Germany, a leading integration partner to the German [ arm ] 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 Ondas is positioned to lead here.

Of course, our market position in even stronger with addition to Sentrycs, which opens a tremendous opportunity to market a layered counter U.S. solution suite. Similarly, our U.S. pipeline continues to mature, in lined 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 the partnership and made a strategic investment with lift dynamics, including an initial order for the West [indiscernible] is making impressive progress in Europe with [indiscernible] and we are excited to support the global success, of course, including in the U.S. On the production side, we launched NDAA compliant made in U.S. fiber optic poles 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 Har-Even, former CEO of Rafael Advanced Defense Systems to our advisory board. His experience and insight we significantly enhance our strategic debt as we continue expanding OIS globally.

I will now pass the call to Meir Kliner, who will share an update on the M&A program and the operational scaling activities at OAS. Meir?

Thank you, Oshri. During the quarter, we accelerated the execution of our strategic growth program, which drives value creation through accelerated cost and a clear path to profitability. The first start after outlining the plan for investor 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' commercial reach and strengthen our product ecosystem. Each acquisition we made contribute 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 1 [ interporable ] platform. Synergies accelerate customer solution delivery enhanced revenue growth and increased operation leverage through OAS' scaled infrastructure and position OAS as a next-generation multi-domain defense and security leader. We are building a scaled and intraporable platform by bringing together a group of highly complementary companies, with 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 5 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. Apeiro Motion marks our entry into ground robotics and payload systems, a key capability for border defense and maneuver in forces operating in complex terrain. Foreign defense expands our subground and engineering platforms, enabling OAS to participate in land clearance and de-mining operations, which are essential to modern defense missions.

In the counter UAS domain, our primary focus area we added inside intelligent sensors, which delivers electrooptical and AI-driven identification of [indiscernible] drones. And Sentrycs, which we are have entered into a definitive agreement with cyber over RF technology provides one of the most effective and precise counter UAS solution available, capable of neutralizing threats with minimal collateral impact. And with [ Tickle ], which we acquired in July, we have further strengthened our elite engineering team, adding important capabilities valued by our defense customers. Together, this company significantly enhanced OAS technological debt 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 will expand on the Sentrycs and ask Tal Cohen, Sentrycs Founder and General Manager, to share some thoughts in a few moments.

As we continue to scale on the autonomous systems, we are building a strong operational infrastructure that connects all elements of our business from our core operations 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 enhance efficiency across the group. This integration is being supported by the establishment of a senior leadership player 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, lining our global sales teams, partners and customer networks under one commercial framework.

On 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 a 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. Emerging aerial, ground, sensing and cyber capabilities into one [indiscernible] scalable and autonomous system of systems. Our counter UAS segment, a key area of focus and growth will be anchored by the integration of Iron Drone and Sentrycs together, delivering a complete hard and soft skill capabilities under a unified combining control architecture.

This system of system 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 position as a next-generation defense and security leader. I would like to take a moment to focus on Sentrycs. Sentrycs will expand OAS' global reach to Tier 1 defense public safety and security agencies. Organizations actively protecting critical infrastructure across more than 25 countries. Sentrycs cyber over RF technology represents one of the most advanced counters solutions in the market today, enabling safe, precise and regulation compliant on neutralizing without gemini or collateral interference. Sentrycs Technology is already field-proven, deployed globally across airports, defense facilities and public safety operations, demonstrating extended range multi-targeting engagement and adaptability to involving larger technologies. This acquisition will position OAS with a unique software capability, perfectly complementing Iron Drone [indiscernible] system. And together, they create comprehensive counter U.S. architecture unmatched in the market.

I will now hand the call over to Tal Cohen, General Manager of Sentrycs to review the company and this market of counter-UAS. Tal?

Thank you, Meir, and thank you for having me today. At Sentrycs, we are truly excited to join on us. We believe this partnership will create a significant opportunity to deliver together with Ondas the ideal solution to the evolving run trade that has rapidly emerged over the past few years. I'm pleased to highlight how Sentrycs is driving a major advancement in our CUS or counter-unmanned area systems capability through our proprietary cyber over RF technology or [indiscernible] works differently from a traditional gaming or kinetic solutions rather than broadly disrupting signals or deploying interceptors, Sentrycs 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 erosion in seconds.

Some of the operational advantages stand out. Rapid deployment and simplicity. Sentrycs system can be deployed in minutes, in a signal [indiscernible], precision and safety, CoRF ensures 0 interference with [indiscernible] nearby communication systems, enabling safe mitigation in civilian critical infrastructure and defense environments alike. Proven Global performance. Sentrycs is already trusted by defense, public safety and infrastructure agencies in more than 25 countries. By integrating Sentrycs into the OAS architecture alongside our IL platforms, ground systems and sensor networks, we will be delivering a complete detect to the fit CUS ecosystem.

Sentrycs brings the soft layer of precise cyber protocol takeover, which cars organically with our kinetic platforms for hard [ killer ] response. As [indiscernible] become more agile, more numerous and more diverse across borders, critical infrastructure and contested environments, the CoRF capability give us the scalability, agility and compliance required for today's multi-domain defense posture. In short, we center some board, we are not just reacting to drone. We will be proactively controlling them safely, reliably and at scale. Sentrycs 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. Sentrycs 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 expose 6 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 3 countries. We are also extending our presence in Africa, South America and Australia through new multi-agencies programs that help highlight the scalability and versatility of our CoRF counter U.S. technology. Altogether, this demonstrates not only the global scalability and operational readiness of Sentrycs, but also how this capability will reinforce OAS' position as a trusted provider of field-proven multilayer CUS solution for difference and critical infrastructure protection.

A combined solution will allow detection, mitigation and situational awareness under one coordinated architecture. We start with Sentrycs, which provides the first line of defense through its Cyber-over-RF technology. It delivers long change detection, tracking and identification of drones and enables safe cyber-based mitigation, taking control of the [indiscernible] and lending it without gaming or collateral interference. This also gives us critical intelligence, real-time insights into the dance identity behavior and even its operators location.

Next, we add the iron drone river, Ondas autonomous kinetic interception system is designed to automatically intercept and defeat any drone threat, including those that operate without radio controller GPS, completing the full spectrum protection layer. Finally, both systems feed into a unified situational awareness interface, where data from Sentrycs and Iron Drone are fused into a single automated operational picture. This integration allows operators to detect, track and neutralize [indiscernible] in real time while reducing the workload and improving decision-making accuracy. Together, these capabilities will deliver comprehensive country U.S. architecture, one that covers every thread type across every environment with precision, safety and automation.

When we look at the broader counter U.S. market, the opportunity ahead of us is extremely significant. Global demand for [indiscernible] 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. Sentrycs is already well positioned in each of these markets, with active deployments and a proven track record supporting Tier 1 defense and security agencies.

If we move to the revenue outlook, Sentrycs 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 raising 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 naturalized tons without causing collateral interference, positioning Sentrycs 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 Sentrycs join the Ondas team. We see exceptional talent as Sentrycs 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'll continue 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 Ondas 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 7 potential targets. Collectively, these opportunities represent more than $500 million in potential additional revenue, highlighting the material impact our strategic growth program to have as we continue to execute. We believe this momentum positions us for a very strong 2026 and one where our acquisitions and partnerships will not only add scale and capability, but also drives higher operating leverage, faster growth and sustained profitability.

Ondas is building a platform design 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, Ondas continues to build momentum, and we expect to see strong growth across all areas of 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've also -- we're also providing our first formal view into 2026. Based on the visibility we have today, we are targeting at least $110 million of 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 sales.

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 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 Ondas Networks, we are heartened by the AAR's expanding commitment to dot16, with 3 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 Ondas Networks. However, Until we see the orders, our outlook today reflects only modest revenue expectations from Ondas 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 2 dedicated events. In Ondas Capital Investor Day in December, we will dive into that business unit strategy and investment road map. In 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 road map in a detailed financial plan for 2026. In summary, Ondas is executing on all fronts. We're growing, scaling and expanding strategically. We 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 capability into increasingly profitable growth over time, which we believe will support a premium valuation for Ondas.

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 accretive 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 sources 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 are further excited to continue to leverage our momentum into 2026.

With that said, operator, we will now move to take investor questions.

[Operator Instructions] And the first question will come from Amit Dayal from H.C. Wainwright.

Eric, very impressive, the spirit which you are executing. Just along those lines, you highlighted that you are pursuing 7 deals that you are at advanced stages from an M&A perspective. Just to clarify, if you do close all those 7 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 7 targets, we're talking more broadly about the pipeline we outlined. Let me just add, 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. We think it's going to be both paths.

Understood. And then as we think about future OAS revenues, how should we think about onetime product to 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 the 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 the pipeline and start to pull that through on the commercial side, that lends itself to as 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. 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 the leadership team and the OES 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 growing quite a bit themselves. So what we're hoping to do and we believe we can do with this operating platform, where I described it accelerates 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 that talent, and I think we're going to be growing that talent as well.

The next question will be from Mike Latimore from Northland Capital Markets.

All right, great. Yes. 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. 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 will give you a sense as to when we can cover the holding company costs.

Got it. And then the Sentrycs acquisition sounds very positive. I guess, as you think about the counter U.S. or kind of grown market, do you expect most of your prospects to buy both Sentrycs 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 to be deployed as these are layered technologies. In many places, having the soft and hard pill will be appropriate in certain locations having one may be more appropriate. So we'll have to see how that plays out. So -- 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 that we can have a great deal of efficiency and guiding -- and value and guiding customers to what that way those layers look at, look like at specific locations.

Okay. Got it. And just last for me. In terms of the U.S. market, which sort of product categories seem most promising for the U.S. and maybe which type of government or government agencies see 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 in critical infrastructure markets even for -- in public safety for the counter drone. So as looking into 2026, we expect the counter drone to likely lead the charge. However, we're going to see growth really across the board.

And the next question is from Tim Horan from Oppenheimer.

I got about 20 questions, but I'll keep it to 3. Eric, it doesn't seem like Europe has much in the way of near air defense at this point, but it sounds like it has been deployed in a few locations. But is that pretty accurate? And I guess do you have the platform now to kind of go protect -- will sense and protect the [indiscernible] nuclear facilities and other facilities coming can that be up and running relatively quickly?

So yes, you're right. I think you're -- and it's really true globally. The counter drone infrastructure build-out really is just in its -- batters just coming from the first pitch. So we see a lot of greenfield here. And at the same time, Europe is likely uniquely pressured here because the war Ukraine is on their doorstep, and you're seeing many reports, consistently, drone threats emerging in Europe. So we think the urgency across Europe 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 Sentrycs is deployed in a bunch of locations. Is there any evidence that their technology works to protect these locations?

Yes. yes, 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 [indiscernible] Sentrycs. When will that actually accomplish? And when can you start to deploy platform yet?

Let's -- I'm going to defer that to our call in January. I don't want to put the time lines on that. I will add that the detection piece of what Sentrycs 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 Sentrycs as well. But 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 the upfront cost for the customer and the ongoing annual cost?

Like always, it depends, Tim. It depends on how many -- are they deploying a detection technology? Are they doing the soft kill or 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 how is it compare like the [indiscernible] currently?

There are recurring fees on that. But yes, it's -- 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.

And the next question is from Austin Bohlig from Needham.

Congrats on the great results. First question guides 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 that OAS is 1 unit, and we have 2 business units on this networks and OAS. So that's what we're going to be presenting to you on a go-forward basis. But at the -- from the acquisitions in terms of contribution in 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 guidance 2026 guide, how much additional M&A is baked into that $110 million number?

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

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

And the next question will come from Glenn Mattson from Ladenburg.

Another one on Sentrycs for me, if you don't mind. Can you just talk about the -- obviously, there's 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 bit?

Sure. Maybe I'll ask Meir or Tal to how you're probably [indiscernible] to take this?

So just to make sure I understood the question correctly was what is the difference between general or additional or other effect also soft scale capabilities to [indiscernible] capability? Is that the question?

Yes.

So our question is based rent during the presentation on the cost side over capability, meaning we can first detect and track and identify that one in a passive manner. So we are not [ omitting ] or any trading an interference whatsoever. And I think the most important part is for the mitigation. We have some control over that on with starting to communicate while communicating with the drone and not by doing any jamming on fixing any other communication collateral damage. So it's a very short, very safe, very limited and precise surgical and soft skill technology.

Appreciate that. And to your knowledge, is no one else doing something similar in terms of being able to do drone capture like that interferon with other communication technologies?

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

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

Yes. On the margin side, 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 and the mix certainly is going to improve as well.

And the next question is from Matthew Galinko from Maxim Group.

Congratulations on the quarter. I wanted to ask about is working capital, particularly inventory as we kind of see revenue scale pretty quickly. Is there -- 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 limit the ramp.

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

And the next question is from Jonathan Sigman from Stifel.

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. 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 and how you measure performance and balancing the individual units and driving towards success for the integrated hole.

Yes. Thanks, Jon. So you firstly mentioned that the speed of the M&A, and that is -- I think that observation is spot on. we've articulated this really is an opportunity, probably a once-in-generation opportunity to provide a scaled platform for these board technologies, and they won't belabor that. But yes, 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 all participate in the upside. So as we grow the business, 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 teams that we're putting together believe 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 I guess that's really the answer. It's -- we're not doing anything unique on that front, I would say. But I think our team and I think the perspective of management teams that we're talking to on the M&A side. We're excited about building a big company because, of course, they will see that as an opportunity to build a substantial equity value. So I think that's going to work out well for us.

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.