OMNIQ Corp. (OMQS): Business Model Canvas [Dec-2025 Updated]

You're digging into OMNIQ Corp. (OMQS) right after their big mid-2025 divestiture, and frankly, the new structure tells a clear story of focus: it's all about proprietary AI and machine vision now. This leaner model is already showing results, evidenced by a gross margin climbing to 26% in H1 2025, with Q3 continuing operations revenue hitting $8.8 million. I've mapped out the nine essential blocks-from their key R&D team in Israel to the recurring revenue from service agreements-so you can see exactly how OMNIQ Corp. (OMQS) is positioning its resources to capture that high-margin security and automation market. Dive in below to see the architecture of this pivot.

OMNIQ Corp. (OMQS) - Canvas Business Model: Key Partnerships

You're looking at the backbone of OMNIQ Corp.'s operations as of late 2025, which is heavily reliant on these external relationships to deliver its AI and automation solutions. Honestly, the numbers from the nine months ending September 30, 2025, show the core business is generating revenue of $24.2 million, with a gross profit of $7.1 million, which is what these partnerships are driving.

Strategic Alliance with Ingenico for Fintech Payment Solutions

The non-exclusive agreement with Ingenico, a global leader in seamless payment, was announced in August 2024 to bolster OMNIQ Corp.'s fintech offerings. This move is designed to integrate OMNIQ Corp.'s AI-driven fintech software with Ingenico's payment technologies across sectors like retail and healthcare. The company has plans to double fintech sales in Israel, with further market entry planned for Europe and the U.S.

Collaboration with NEC for Advanced Biometric Public Safety Solutions

OMNIQ Corp. continues its work with NEC, a leader in biometric information technology, to deploy advanced AI-based solutions for public safety. This involves combining OMNIQ Corp.'s machine vision technology with NEC's biometric capabilities to enhance security and operational efficiency in areas like law enforcement and transportation. While specific 2025 revenue from this is not broken out, OMNIQ Corp. is active in the Global Safe City sector, which was predicted to reach $67.1 billion by 2028.

Long-Term, Two-Decade Partnership with a Major 3PL Provider

This relationship is definitely a cornerstone of the Smart Supply division. OMNIQ Corp. secured a $1.4 million contract renewal in October 2024, continuing a partnership that spans nearly 20 years. This major 3PL giant, which has annual revenues exceeding $11 billion and a workforce of over 15,000, relies on OMNIQ Corp.'s technology for mission-critical logistics.

Here's a quick look at the scale of the work under this long-term agreement:

Suppliers for Android-based Rugged IoT Devices and Hardware Components

The ability to fulfill large-scale logistics modernization projects depends on reliable hardware supply. OMNIQ Corp. secured a project in 2024 exceeding $50 million to modernize a leading food and drug chain's logistics system, which involved deploying Android-based handheld IoT devices. This shows the volume OMNIQ Corp. moves through its supply chain partners.

The Q3 2025 results, showing revenue of $8.8 million and a gross profit of $3.0 million, are directly supported by the efficient sourcing of these components and devices.

System Integrators for Large-Scale Enterprise and Government Deployments

OMNIQ Corp. uses system integrators to deploy its AI and vehicle recognition technologies across complex environments like new university customers in Wisconsin and major medical centers. These deployments often involve integrating OMNIQ Corp.'s software with existing infrastructure for access control and parking automation.

The company's operational highlights in Q3 2025 included:

• Deployed eight additional mobile license plate inventory (MLPI) vehicles.
• Expanded presence at a major medical center with multiple campuses.
• Secured a new university customer in Wisconsin.

The focus on higher-margin revenue streams, which contributed to the gross profit margin improvement in Q3 2025, suggests that the terms with these integrators are structured to favor profitability over sheer volume, which is smart given the tight liquidity-cash was only $679 thousand as of September 30, 2025.

Finance: draft 13-week cash view by Friday.

OMNIQ Corp. (OMQS) - Canvas Business Model: Key Activities

You're looking at the core actions OMNIQ Corp. takes to deliver its value proposition, and the numbers from late 2025 definitely show a company focused on efficiency and targeted growth after a major restructuring.

Developing and refining proprietary AI and machine vision algorithms

The company's activities are set against a backdrop of significant market expansion for its core technology. The global license plate recognition market is forecast to grow from approximately $3.7 billion in 2024 to over $9 billion by 2034, driven by AI-powered analytics. OMNIQ Corp. is actively positioning its patented AI technology within this expanding space, focusing on practical problem-solving solutions.

The core technology development supports several key operational metrics:

• The MLPI platform transforms vehicles into intelligent data-collection systems.
• The technology enables real-time permit validation with over ninety-five percent accuracy.
• The company continues to engage with billion-dollar markets, including the Global Safe City market.

Deploying Mobile License Plate Inventory (MLPI) and access control systems

Deployment activity was a clear focus in the third quarter of 2025. OMNIQ Corp. added eight additional Mobile License Plate Inventory (MLPI) vehicles during Q3 2025. Furthermore, an announcement in October 2025 detailed the continued rollout of eight new AI-based MLPI deployments across airports, healthcare systems, and business complexes in 2025. These systems are deployed across various environments, including airport patrol fleets, campus parking teams, and security staff.

Here's a snapshot of the recent financial performance reflecting these activities:

Providing technical service, support, and maintenance for mission-critical systems

The ability to generate solid gross profit, even when revenue timing shifts, points to the value captured from service and support components of their contracts. For the third quarter of 2025, OMNIQ Corp. reported a gross profit of $3.0 million on total revenue of $8.8 million. This compares favorably to the prior year's Q3 gross profit of $2.0 million.

The nature of their recurring revenue streams is evidenced by the types of contracts secured:

• The company secured an ongoing contract with a multi-campus medical center in Q3 2025.
• Their principal solutions include hardware, software, communications, and automated management services, technical service, and support.
• The company's focus on more profitable revenue streams contributed to the margin improvement.

Streamlining operations and executing cost-reduction initiatives

Cost control is clearly a major operational activity, showing tangible results in the reported losses. In Q3 2025, the loss from operations narrowed to $591 thousand from $787 thousand year-over-year, which is a 13.7% improvement. This followed a 45 percent improvement in operating loss during Q1 2025, where the loss was $690 thousand compared to $1.3 million in Q1 2024.

The nine-month results further underscore this focus:

For the nine months ended September 30, 2025, the operating loss from continuing operations was $1.3 million, significantly reduced from $3.1 million a year ago. This efficiency drive was supported by a major corporate action: the sale of a division effective June 30, 2025, which generated aggregate consideration of approximately $45 million. This move helped shrink the stockholders' deficit to $13.1 million as of November 4, 2025, when shares outstanding were 11,602,930.

Securing new contracts in high-growth verticals like healthcare and education

OMNIQ Corp. is actively expanding its footprint in specific, high-demand sectors. In Q3 2025, this included adding a new university customer in Wisconsin and expanding deployments with a leading Texas medical center. These wins demonstrate commercial traction across education and healthcare, broadening the use cases for their vehicle recognition and access control solutions.

The company's customer diversification has also improved; no single customer accounted for more than 10% of total revenue in Q1 2025, a marked improvement from 2024 when one customer represented 23.7% of total revenue.

Key vertical wins mentioned include:

• A new public research university in Wisconsin for access control and parking automation.
• A leading medical center expanding deployments for access control and mobile vehicle recognition.
• MLPI deployments across healthcare systems and airports.

OMNIQ Corp. (OMQS) - Canvas Business Model: Key Resources

You're looking at the core assets OMNIQ Corp. (OMQS) relies on to deliver its machine vision and data intelligence solutions. These aren't just abstract concepts; they are tangible, patented items and specific financial figures that underpin the business right now.

The foundation of OMNIQ Corp.'s offering is its patented and proprietary Artificial Intelligence (AI) technology. The company protects its core engine with nine patents covering its technology. This AI, which uses a neural network model complimented by machine learning, is deployed through systems like Q Shield™, which has seen over 20,000 cameras deployed globally, capturing millions of vehicles for analysis. This technology is the engine that allows for automated identification and detection of objects in real-time across their target markets.

The intellectual horsepower comes from the core R&D team based in Israel for computer vision and data intelligence. This team is described as outstanding and is responsible for developing the proprietary AI capabilities. While the exact headcount isn't public, the expertise residing in Israel is a critical, non-physical resource driving the innovation behind their machine vision solutions.

For the physical assets, OMNIQ Corp. deploys rugged IoT hardware and specialized data collection devices. This includes rugged handheld mobile computers, barcode scanners, printers, and RFID devices designed for demanding environments like warehouses and distribution centers. The demand for this durable hardware is current; for instance, in March 2025, OMNIQ secured a $\$4.4$ million purchase order from a major logistics provider specifically for these ruggedized handheld mobile computers.

Here's a quick look at the balance sheet strength, as of the end of the third quarter of 2025, following the recent strategic moves:

The legacy asset sale, effective June 30, 2025, was key to improving the equity position. Still, you should note the working capital deficit was $\$11.8$ million as of that same date, which points to ongoing liquidity pressure despite the cash infusion from the sale.

Finally, the company relies on long-standing customer relationships with Fortune 500 companies. OMNIQ Corp. maintains a solid base of Fortune 500 customers across sectors like manufacturing, retail, and logistics. Furthermore, the partnership with a key retail partner is noted as a decade-long collaboration, showing the stickiness of their enterprise mobility solutions. These relationships provide a base for recurring revenue streams, which the CEO has highlighted as a strategic focus moving into 2025.

Finance: draft 13-week cash view by Friday.

OMNIQ Corp. (OMQS) - Canvas Business Model: Value Propositions

You're looking at the core benefits OMNIQ Corp. (OMQS) delivers to its customers, which is all about using smart technology to make complex environments safer and more efficient. This isn't just about selling a box; it's about providing a complete system that works right out of the gate.

The primary value is centered around AI-driven automation for secure, real-time access control and monitoring. This technology is deployed across diverse, high-stakes environments.

• AI-based computer vision and data intelligence.
• Real-time surveillance and monitoring capabilities.
• Solutions for homeland security and safe city applications.

This translates directly into enhanced operational efficiency and security for complex campuses and logistics. Think about major clients like a leading Texas medical center or a Wisconsin public research university; they need seamless, automated control over who and what moves through their facilities.

The focus on high-margin, recurring-revenue business lines is clearly driving financial improvements. The stated value proposition includes an improved gross margin to 26% in H1 2025, reflecting this focus on profitable solutions. To be fair, the latest nine-month data shows even better performance on the cost side, which is what you want to see.

Another major value driver is streamlined traffic flow and public safety via advanced vehicle recognition. This is where their Mobile License Plate Inventory (MLPI) deployments come into play. For instance, the company deployed eight new MLPI vehicles during Q3 2025 across airports, healthcare systems, and business complexes, showing growing demand for automated data collection for enforcement and mobility analytics.

The offering is designed as an end-to-end solution combining hardware, software, and ongoing service. This holistic approach means customers get integrated systems for things like parking automation, which was implemented at CMX Airport to enhance traffic flow and operational accuracy, rather than piecing together disparate components.

Here's a quick look at the sectors benefiting from this integrated approach:

• Transportation and Logistics
• Healthcare systems
• Education (e.g., university access control)
• Municipal operations
• Airport parking management

If onboarding takes 14+ days, customer satisfaction risk rises, so the end-to-end nature helps speed deployment.

Finance: draft 13-week cash view by Friday.

OMNIQ Corp. (OMQS) - Canvas Business Model: Customer Relationships

You're looking at how OMNIQ Corp. manages its relationships with clients, which is clearly leaning heavily on deep, long-term engagements rather than transactional sales, especially given the nature of their AI and computer vision deployments.

Dedicated account management for long-term, mission-critical partnerships.

OMNIQ Corp. solidifies its role as a trusted, long-term partner in mission-critical environments. This is evidenced by the continuation of multi-year relationships. For instance, a major logistics provider, with operations across 13 states, is in a six-year collaboration with OMNIQ Corp.. This partnership recently resulted in a $4.4 million purchase order announced in March 2025 for ruggedized mobile computers. Furthermore, another long-term partner in logistics and manufacturing placed new purchase orders totaling $1 million in January 2025, reinforcing the commitment to these key accounts. The company's focus on customer diversification shows progress; in Q1 2025, no single customer accounted for more than 10 percent of total revenue, a significant shift from the full year 2024 when one customer represented 23.7 percent of total revenue.

High-touch, consultative sales and integration support for complex deployments.

The nature of OMNIQ Corp.'s AI automation and computer vision solutions necessitates a high-touch approach. Deployments often involve complex integration into existing enterprise infrastructure. For example, the $4.4 million order for ruggedized computers was specifically intended to provide frontline workers with real-time data access, workflow automation, and seamless system integration capabilities. In Q3 2025, OMNIQ Corp. secured an ongoing contract award from a leading medical center with multiple campuses, supporting long-term operational efficiency through integrated solutions for parking and access. The company also expanded its footprint by signing a new customer in Wisconsin, a public research university, for advanced access control and parking automation.

Service agreements providing ongoing support and enhanced functionality.

Recurring revenue streams through service agreements are a clear component of relationship management. The $1 million purchase order from the logistics and manufacturing partner in January 2025 explicitly included service agreements designed to contribute recurring revenue, supporting OMNIQ Corp.'s long-term growth strategy. The company's Q1 2025 strategy included offering new services aligned with customer needs to maintain momentum on long-term projects.

Direct engagement to ensure seamless integration with enterprise systems.

Direct engagement focuses on making sure the hardware and software work perfectly within the client's existing ecosystem. OMNIQ Corp.'s proprietary AI-driven solutions enable seamless integration of hardware and software for logistics and manufacturing clients. The company's Q1 2025 efforts included actively working on improving integrations for current customers. This focus is critical for clients like the major logistics provider operating across 13 states, who rely on OMNIQ Corp. for optimizing fleet management and LTL (less-than-truckload) operations.

Here's a quick look at some recent contract activity that reflects these relationship types:

The company serves a diverse clientele, including government agencies and leading Fortune 500 companies across transportation, healthcare, education, and municipal operations.

OMNIQ Corp. (OMQS) - Canvas Business Model: Channels

You're mapping out OMNIQ Corp.'s go-to-market strategy as of late 2025, focusing on how they get their AI and computer vision solutions into the hands of customers. The approach is clearly segmented, leaning heavily on direct engagement for complex sales cycles.

Direct sales force targeting large enterprises and government agencies remains a core channel. OMNIQ Corp. serves a diverse clientele that includes government agencies and leading Fortune 500 companies across sectors like transportation, healthcare, and education. For instance, a recent operational highlight involved securing a new customer, a Wisconsin public research university, for access control and parking automation. This direct approach is necessary for landing deals in markets they target, such as the Global Smart City & Public Safety markets, which are characterized as billion-dollar markets with double-digit growth potential. A concrete example of a direct sale channel success is the $1.4 million contract renewal with a top-tier transportation and logistics giant, which underscores the trust built over nearly two decades of direct support.

The professional services team for direct system installation and deployment acts as a critical extension of the sales effort. When OMNIQ Corp. secures a deal, this team handles the physical integration. The $1.4 million renewal mentioned above explicitly included supplying advanced Android-based rugged IoT devices, which requires on-site deployment and integration services. Furthermore, the company is focused on expanding existing partnerships, such as the deployment expansion at a major Texas medical center, which requires direct, hands-on system installation and integration work by their technical staff.

For the recurring revenue from software subscriptions and service agreements, the model is shifting toward more predictable streams. While a specific recurring revenue percentage for 2025 isn't public, the structure of recent deals points to this focus. The transportation and logistics renewal, for example, specifically included software subscriptions and robust maintenance services alongside the hardware. This aligns with management's stated focus on prioritizing more profitable revenue, which often means locking in long-term service contracts over one-time hardware sales. This strategic shift was supported by the July 2025 sale of legacy assets, allowing OMNIQ Corp. to sharpen its focus on AI and smart automation products, which typically carry higher-margin, recurring components.

Lead generation and market visibility are supported by participation in key industry events. OMNIQ Corp. utilized the industry conferences and presentations channel by having Chairman and CEO Shai Lustgarten present at the ThinkEquity Conference on October 30, 2025, in New York, NY. This platform is used to discuss growth strategy and advancements with institutional investors and analysts. To give you some context on the scale of these events, the prior year's ThinkEquity Conference featured over 80 public and private company presentations and facilitated over 750 one-on-one investor meetings.

Here is a snapshot of the financial and customer metrics relevant to these channels as of late 2025:

The direct sales efforts are focused on specific, high-value customer profiles, which you can see reflected in their recent customer engagement strategy:

• Expansion at a major Texas medical center.
• New customer win in Wisconsin higher-education for access control.
• Eight new MLPI deployments across airports, healthcare, and business complexes.
• Continued support for a leading Fortune 500 transportation/logistics client.
• Focus on key verticals including transportation, healthcare, education, and municipal operations.

The company's ability to secure multi-million dollar deals, such as the $1.4 million renewal, demonstrates the effectiveness of their direct sales and service teams in converting large enterprise and government interest into realized revenue.

OMNIQ Corp. (OMQS) - Canvas Business Model: Customer Segments

You're looking at where OMNIQ Corp. is placing its AI and machine vision bets as of late 2025. The strategy is clearly focused on high-value, complex environments where automated identification and data collection drive significant operational changes. Honestly, the shift away from legacy assets, which saw the sale of a portion of U.S.-based legacy assets, is meant to sharpen the focus on these growth areas and improve the balance sheet; the equity deficit improved by about 75% post-sale.

The company's customer base has become more diversified, which is a key strategic win. For the first quarter of 2025, OMNIQ Corp. reported that no single customer accounted for more than 10% of total revenue, a big step up from the 23.7% one customer represented for the full year 2024. This diversification supports the overall revenue of $19.9 million reported in Q1 2025.

Here's a look at the key customer groups OMNIQ Corp. is targeting and securing business with:

• Higher Education institutions: OMNIQ Corp. expanded its footprint by signing a new university customer in Wisconsin for campus mobility and AI parking automation.
• Healthcare systems and major medical centers: A major medical institution in Texas is expanding its deployment of OMNIQ's AI-based Access Control solutions. This center supports more than 1.5 million outpatient visits annually.
• Transportation and Logistics companies: OMNIQ Corp. continues to serve a major 3PL provider, which has annual revenues exceeding $11 billion and a workforce of over 15,000.
• Municipalities and Public Safety agencies: Demand for real-time enforcement and data is leading to new deployments, including eight new Mobile License Plate Inventory (MLPI) vehicles in Q3 2025 across various sites. The company addresses the billion-dollar Global Smart City & Public Safety markets.
• Fortune 500 companies in manufacturing, retail, and distribution: OMNIQ Corp. has a robust track record here, securing a $3.6 million purchase order in Q4 2024 from a leading retail company. The company's customers also include government agencies and Fortune 500 companies across manufacturing, retail, and distribution.

The recent contract activity shows concrete dollar values tied to these segments, which is what really matters for your analysis. Here's the quick math on some of the recent, high-profile awards:

To be fair, the Q3 2025 revenue was $8.8 million, down from $9.5 million year-over-year, which the company attributed to focusing on more profitable revenue and order timing. Still, the gross profit improved to $3 million from $2 million in Q3 2024, showing that the customer mix is moving toward higher-margin engagements. The operational loss also improved by 13.7% year-over-year in Q3 2025, falling to $591 thousand.

The company's solutions are designed for mission-critical applications, which helps secure these long-term relationships. For instance, the logistics renewal mentioned above is part of a nearly two-decade partnership. This focus on deep integration within large organizations is a clear indicator of their customer segment strategy-land and expand within established, large-scale enterprise environments.

Finance: draft 13-week cash view by Friday.

OMNIQ Corp. (OMQS) - Canvas Business Model: Cost Structure

You're looking at OMNIQ Corp.'s cost base as of late 2025, post-divestiture, which shows a clear focus on controlling overhead while managing the costs tied to its remaining AI and computer vision operations.

The Cost of Goods Sold (COGS) for the nine months ended September 30, 2025, for continuing operations, can be derived from the reported revenue of $24.2 million and gross profit of $7.1 million, resulting in an approximate cost of sales of $17.1 million. The search results do not provide a specific breakdown between hardware and software licensing components of this COGS figure, but they do note that the gross margin improved compared to the previous year's 77% cost of sales.

Research and Development (R&D) expenses specific to AI and computer vision aren't explicitly itemized in the latest reports, but the overall operational cost control is evident. For the six months ended June 30, 2025, total operating expenses were $4,842 thousand, down from $6,396 thousand the prior year.

Selling, General, and Administrative (SG&A) expenses saw material reduction. For the six months ended June 30, 2025, SG&A was reported at $3,369 thousand, compared to $4,883 thousand for the same period in 2024, representing a reduction of approximately 31%, as you noted.

Personnel costs for specialized R&D and technical service teams are embedded within the operating expenses, which saw a significant year-over-year reduction for the first half of 2025. The company's headcount structure is a key driver of the reduced SG&A.

Interest expense on remaining debt for the six months ended June 30, 2025, was reported as $(403 thousand). This is set against a backdrop of tight liquidity, with a reported working capital deficit of $11.8 million as of September 30, 2025.

Here's a quick look at the key cost-related metrics from the latest available filings:

The cost structure reflects a leaner operation focused on core technology, but the working capital deficit signals ongoing pressure on short-term obligations. The reduction in SG&A is defintely a major factor in the improved operating loss.

• Operating Loss Reduction (9M 2025 vs 9M 2024): From $3.1 million to $1.3 million.
• Cash and Cash Equivalents (Sept 30, 2025): $679 thousand.
• Related-Party Promissory Note Interest Rate: 5%.

Finance: draft 13-week cash view by Friday.

OMNIQ Corp. (OMQS) - Canvas Business Model: Revenue Streams

OMNIQ Corp. generates revenue through several distinct channels, reflecting its focus on high-growth AI and automation segments following its strategic transformation.

The primary revenue sources are:

• Sales of AI-based access control and vehicle recognition systems.
• Recurring revenue from software subscriptions and service agreements.
• Sales of advanced IoT devices and related hardware.

The company emphasizes converting its expanding installed base into higher-quality, recurring revenue streams as a near-term focus. OMNIQ deploys its proprietary PERCS™ (Permitting, Enforcement, Revenue and Collection) Software, which represents a Software as a Service (SaaS) recurring Revenue model. Furthermore, contract renewals explicitly include the supply of software subscriptions and robust maintenance services alongside hardware.

Sales of AI-based systems include its QShield AI-Based Vehicle Recognition Technology and machine vision solutions used for real-time surveillance, monitoring, and access control across sectors like homeland security, public safety, and traffic/parking management. The hardware component involves supplying advanced Android-based rugged IoT devices and mobile computerized IoT equipment for supply chain and logistics operations.

Here are the latest reported revenue figures from continuing operations for OMNIQ Corp. as of late 2025:

The company's focus on more profitable revenue streams led to a gross profit rise in Q3 2025, despite a year-over-year revenue decline for that quarter.