Ondas Holdings Reports $38M Net Loss for Fiscal Year 2024, Revenue Declines to $7.2M

Ondas Holdings Inc. reported a net loss of $38.0 million for the fiscal year ending December 31, 2024, a decrease of 15% from the previous year's loss of $44.8 million. The company's revenue for the year was $7.2 million, down from $15.7 million in 2023, reflecting a significant decline in product sales and service revenue. The operating loss also improved by 13%, decreasing from $39.7 million in 2023 to $34.6 million in 2024, primarily due to a 24% reduction in operating expenses, which totaled $35.0 million.

The decrease in operating expenses was attributed to several factors, including a reduction in human resource costs by approximately $1.8 million, largely due to headcount reductions and synergies from the integration of American Robotics and Airobotics. Additionally, professional fees and consulting costs decreased by about $1.2 million, and long-term asset impairment charges fell by approximately $3.9 million. However, the company also noted a decrease in revenue and gross margin, which contributed to the overall financial performance.

Strategically, Ondas Holdings has made significant organizational changes, including the acquisition of Airobotics in January 2023 and the formation of Ondas Autonomous Systems Inc. (OAS) as a subsidiary. The company has also expanded its product offerings, focusing on drone-based solutions and private wireless connectivity. As of December 31, 2024, Ondas reported total assets of $109.6 million, an increase from $92.2 million in 2023, driven by cash and inventory growth.

Operationally, Ondas has seen a shift in its business model, moving from service revenue to product revenue, particularly with the sale of its Optimus System™ and Iron Drone Raider™. The company reported a significant increase in inventory, which rose to $9.8 million from $2.2 million in the previous year. The total employee headcount has also decreased, reflecting the company's efforts to streamline operations and reduce costs.

Looking ahead, Ondas Holdings anticipates funding its operations through existing cash reserves, proceeds from recent financing activities, and potential revenue growth. However, the company has expressed substantial doubt about its ability to continue as a going concern for the next twelve months, citing the need for additional financing to support its operations and growth initiatives. The management plans to explore various funding options, including equity or debt offerings, to ensure the company's sustainability and growth in the competitive market landscape.