OMNIQ Corp. (OMQS): BCG Matrix [Dec-2025 Updated]

You're looking for a clear map of OMNIQ Corp.'s post-divestiture business, and the BCG Matrix is defintely the right tool to simplify their strategic pivot to AI and automation. Honestly, the picture is complex: while new AI deployments are shining as Stars-pushing Q3 gross profit to $3.0 million-and established supply chain services act as reliable Cash Cows contributing $7.1 million to 9-month profit, the whole continuing operation is a Question Mark facing an $11.8 million working capital deficit. We'll break down how the sale of legacy Dogs helped slash 63% of debt, but the real question is whether the current revenue base of $8.8 million can support the necessary capital injection to turn those new AI bets into sustained winners.

Background of OMNIQ Corp. (OMQS)

You're looking at OMNIQ Corp. (OMQS) as of late 2025, which means we need to focus on the company's current structure following its major strategic shift this year. OMNIQ Corp. provides artificial intelligence-based solutions, specifically machine vision image processing technology. This tech is used for data collection, real-time surveillance, and monitoring across several key areas like supply chain management, homeland security, public safety, and traffic/parking management.

Honestly, the biggest news for OMNIQ Corp. this year was the sale of its legacy business unit back in July 2025. This move was designed to fully focus on the Smart Automation and AI segments while significantly cleaning up the balance sheet. The transaction was expected to generate an estimated gain of $35 million in fiscal year 2025 and eliminate approximately 63% of the company's total pre-sale debt.

This repositioning immediately showed up in the first half of 2025 results, where OMNIQ Corp. reported reducing its net loss to just $34,000 from $5.1 million the prior year. Plus, operating cash flow turned positive, showing a $9.68 million improvement. For the first quarter of 2025, revenue hit $19.9 million, which was an 8.7% jump year-over-year, even though the net loss remained steady at $2.1 million.

Looking closer at the third quarter ending September 30, 2025, revenue was $8.83 million, down from $9.45 million the year before. Management attributed this dip to prioritizing more profitable revenue streams over volume. Still, the focus on efficiency is clear: gross profit for Q3 rose to $3 million from $2 million year-over-year, and the loss from operations narrowed by 13.7% to $591 thousand.

Operationally, OMNIQ Corp. is landing new contracts that reflect demand for its AI access control and vehicle recognition tech. In Q3 2025, they secured a new university customer in Wisconsin for campus mobility and AI parking automation, and expanded services with a major medical center. They also deployed eight new Mobile License Plate Inventory (MLPI) vehicles, showing continued traction in their core markets.

OMNIQ Corp. (OMQS) - BCG Matrix: Stars

You're looking at the segment of OMNIQ Corp.'s business that shows strong momentum in expanding markets, which is exactly what you want to see in a Star. These are the areas where market share is being fought for, and while they consume cash to fuel that growth, they are the future Cash Cows if the market growth sustains or slows appropriately.

The AI-based Mobile License Plate Inventory (MLPI) deployments are a clear example of this Star behavior, securing traction in critical infrastructure like airports and healthcare systems. The overall market context for this technology is robust, suggesting a high-growth environment where OMNIQ Corp. is actively placing its solutions.

This technology transforms standard fleet vehicles into intelligent data-collection systems, enabling real-time permit validation and unauthorized vehicle detection.

The AI-driven access control solutions are also securing new contracts in the high-growth university sector. Securing a new public research university customer in Wisconsin highlights this market penetration, as these institutions are rapidly adopting automated systems for campus mobility and security.

• University Customer Size: Approximately 50,000 students
• University Customer Size: Approximately 27,000 faculty and staff
• Benefit: Automation reduces waiting times and eliminates costs associated with printed credentials

The focus on these high-growth areas is directly impacting the bottom line, even as the company navigates a portfolio optimization strategy. The high-margin revenue streams from these deployments are driving clear profitability improvements in the quarter.

For the third quarter of 2025, OMNIQ Corp. reported a Gross Profit of $3.0 million. This is a significant year-over-year increase when compared to the Gross Profit of $2.0 million reported in the three-month period for 2024. The Loss from Operations also narrowed to $591 thousand year-over-year from $787 thousand, which represents a 13.7% improvement.

These successful deployments feed into the core Smart Automation and AI products, which represent the new strategic focus in a market that is undeniably large and expanding. The broader Intelligent Automation market provides the scale context for these Star products.

Here's the quick math on the market OMNIQ Corp. is targeting with its core AI and automation focus:

• Intelligent Process Automation Market Size (2024): Valued at $15.2 billion
• Intelligent Automation Market Size (2024): Valued at $16.3 billion
• Projected CAGR (2025-2034): 14.3%

If onboarding takes 14+ days, churn risk rises, but the current momentum in securing these high-value, high-growth contracts suggests OMNIQ Corp. is investing correctly in its Stars right now. Finance: draft 13-week cash view by Friday.

OMNIQ Corp. (OMQS) - BCG Matrix: Cash Cows

You're looking at the core engine of OMNIQ Corp. (OMQS) after the strategic pivot-the business units that generate more cash than they consume, even if the overall market they operate in isn't seeing explosive growth anymore. These are the established relationships that keep the lights on and fund the growth bets in other areas of the portfolio.

The primary indicator of this segment's performance is found in the continuing operations figures following the sale of the legacy division in mid-2025. This portion of OMNIQ Corp. (OMQS) is what management is now relying on for stable returns. Specifically, this segment contributed to the 9-month 2025 gross profit of $7.1 million, which is a solid number considering the company prioritized more profitable revenue streams. The focus on operational efficiency is clear; the gross margin for continuing operations improved to 71% (COGS 71%) for the nine months ended September 30, 2025, up from 77% the prior year.

These cash cows are characterized by established, recurring service revenue, often stemming from long-term contracts with major entities. While the search results confirm OMNIQ Corp. (OMQS) serves leading Fortune 500 companies across sectors like transportation, healthcare, and education, the specific dollar amount tied to recurring service revenue isn't broken out separately from the continuing operations total. However, the operating cash flow for these continuing operations improved significantly, generating $5.4 million in cash from operations for the nine months ending September 30, 2025. This positive cash generation is exactly what you want from a cash cow-it's funding the corporate overhead and debt service.

The business model here involves delivering integrated solutions to existing clients. These deployments require minimal new capital expenditure because they build upon established infrastructure, yet they yield that stable cash flow we discussed. While the prompt mentions legacy SCM software and support services, it's important to note that OMNIQ Corp. (OMQS) completed the sale of a portion of its U.S.-based legacy assets in mid-2025 to streamline operations. Therefore, the current cash cow profile is likely the stable, high-retention base of the remaining AI and smart automation services that support these long-term clients, which now operate with a leaner cost structure.

Here's a quick look at the financial performance anchoring this category as of the third quarter filing:

Companies are advised to invest just enough into cash cows to maintain their current productivity, or simply 'milk' the gains passively. For OMNIQ Corp. (OMQS), this means ensuring high retention and perhaps minor infrastructure investments that improve efficiency further, like the automation implemented at CMX Airport mentioned in Q3 2025 results.

The characteristics supporting the Cash Cow designation for the continuing operations include:

• Established customer base including Fortune 500 entities.
• Focus on integrated solutions for existing clients.
• Positive operating cash flow of $5.4 million YTD 9M 2025.
• Improved gross margin to 71% for continuing operations.
• Streamlined structure post-divestiture, reducing overhead.

Finance: draft 13-week cash view by Friday.

OMNIQ Corp. (OMQS) - BCG Matrix: Dogs

The Dogs quadrant represents business units with low market share in low-growth markets, which OMNIQ Corp. has actively sought to minimize through strategic divestiture. This strategy directly addresses the need to avoid expensive turn-around plans by eliminating cash traps.

The most significant action aligning with the Dogs strategy was the sale of a portion of OMNIQ Corp.'s U.S.-based legacy assets, completed in mid-2025. This transaction was pivotal for balance sheet repair, as it eliminated approximately 63% of the Company's total pre-sale debt. The divested segment was characterized as the low-margin, commoditized hardware resale business, which was not integrated with the core AI/computer vision platform.

The financial impact of streamlining operations and eliminating these legacy components is visible when comparing the third quarter results year-over-year, as the focus shifted to core, higher-margin AI and smart automation segments. The operational segments that were streamlined or eliminated contributed to the overall effort to reduce the Q3 2025 operating loss to $591 thousand.

The management of these lower-performing areas is further evidenced by the nine-month performance figures for continuing operations, which reflect the impact of the portfolio optimization.

• The divestiture of legacy assets, effective June 30, 2025, involved an aggregate consideration of approximately $45 million, which included the assumption of up to $55 million in specified liabilities and a $10 million 5% promissory note.
• The transaction produced a $34.7 million gain recorded to additional paid-in capital due to its related-party nature, shrinking the stockholders' deficit to $13.1 million.
• Remaining business lines that were not core AI/automation contributed to the overall financial picture, with revenue from continuing operations for the nine months ended September 30, 2025, declining by approximately 10% to USD 24.21 million.
• Operational segments were streamlined or eliminated, helping to reduce the nine-month operating loss from USD 3.1 million a year ago to USD 1.3 million for the nine months ended September 30, 2025, in continuing operations.

OMNIQ Corp. (OMQS) - BCG Matrix: Question Marks

You're looking at the most precarious quadrant for OMNIQ Corp. (OMQS) right now, the Question Marks. These are the areas with high market growth potential, but where the company hasn't yet secured a strong foothold. For OMNIQ Corp. (OMQS), this primarily centers on its new AI solutions targeting the public safety and homeland security sectors. The market itself is definitely growing; the AI for public security and safety market size is expected to surge to $21.33 billion in 2025, up from $16.45 billion in 2024, representing a compound annual growth rate of 29.7%. This high growth is the upside, but the low market share means these products are currently consuming cash without delivering the returns needed to become Stars.

The immediate financial reality for the continuing operation is stark. Management has disclosed substantial doubt about its ability to continue as a going concern due to persistent liquidity issues. This is the ultimate risk for any Question Mark-it needs investment to grow, but the current balance sheet may not support that investment. The core issue is the working capital deficit, which stood at $11.8 million as of September 30, 2025. That deficit is eating cash, which was only $679 thousand on the same date. You need to see rapid scaling of the AI offerings to close that gap quickly.

The pressure to scale is evident when you look at the recent top-line performance. For the third quarter ending September 30, 2025, OMNIQ Corp. (OMQS) reported revenue of only $8.8 million, which was a year-over-year decline from the $9.5 million reported in Q3 2024. While the company is focusing on more profitable revenue, this decline highlights the challenge: can the AI products gain traction fast enough to overcome the current revenue pressure and justify the heavy investment needed to build market share?

Here's a quick look at the financial context surrounding these high-potential, high-drain assets as of the end of Q3 2025:

The strategy for these Question Marks is binary: invest heavily to capture market share, or divest. The company has already taken a step toward streamlining by selling a legacy division, which generated a $34.7 million gain recorded to additional paid-in capital due to its related-party nature. This move was intended to reinforce the balance sheet, but the ongoing liquidity crunch means the AI segment must start delivering.

The operational wins show the market demand is there, which supports the argument for investment. OMNIQ Corp. (OMQS) is expanding its footprint in high-growth areas, which are the very definition of a Question Mark market:

• Expanded presence in higher education with a new university customer in Wisconsin for AI parking automation.
• Secured a new contract award from a major medical center for integrated parking, access, and facility management.
• Deployed eight additional mobile license plate inventory (MLPI) vehicles during the quarter.
• Implemented technology at CMX Airport to automate parking operations.

These deployments are critical because they represent the low-share, high-growth products needing market adoption. The company needs to translate these initial wins into a rapid increase in recurring revenue to quickly move these AI solutions out of the Question Mark quadrant and into the Star category. If they can't secure the capital to fuel this growth-especially given the $11.8 million working capital deficit-these promising AI ventures risk becoming Dogs as the market growth continues without them.