Ondas Holdings Inc. (ONDS): Business Model Canvas [Dec-2025 Updated]

You're looking at Ondas Holdings Inc. right now, and honestly, the story is all about a massive pivot fueled by serious capital. After that big capital raise, they're sitting on a pro forma cash balance of about $840.4 million, which is the fuel for their aggressive shift into a defense-autonomy platform, moving beyond just the rail tech you might know. With a backlog already sitting at $23.3 million as of Q3 2025, the question isn't if they're changing, but how this M&A-heavy strategy will translate into sustainable revenue streams across defense and critical infrastructure. Dive into the full Business Model Canvas below to see exactly how they plan to deploy that cash and capture this new market.

Ondas Holdings Inc. (ONDS) - Canvas Business Model: Key Partnerships

You're looking at how Ondas Holdings Inc. is structuring its external relationships to scale its autonomous systems and wireless technology platforms as of late 2025. These partnerships are crucial because they directly support the company's reaffirmed full-year revenue goal of at least $25 million for 2025, with the Ondas Autonomous Systems (OAS) unit expected to drive over $20 million of that total.

The Key Partnerships block shows a clear strategy to secure capital, manufacturing, distribution, and technology integration across both the Ondas Networks and Ondas Autonomous Systems segments.

Here is a breakdown of the most significant alliances:

Partner	Focus Area	Key Detail / Metric
Klear, Inc.	Non-dilutive Working Capital Solutions	Preferred working capital finance partner for the platform, supporting M&A and growth without equity issuance. Announced July 7, 2025.
Siemens Mobility	Rail Control Systems Integration	Joint development for North American Rail Industry using FullMAX technology with ATCS protocol. Progress in 2025 includes a follow-on purchase order from Metra for dot16 compliant systems and a field trial expected to result in an order for 900 MHz equipment for an entire subdivision.
Mistral Inc.	Defense and Public Safety Customer Channels	Agreement focuses on joint marketing and sales of Optimus and Iron Drone Raider. Initial term is three years with an automatic renewal option and a structured success fee model based on realized sales. Announced June 24, 2025.
Detroit Manufacturing Systems (DMS)	NDAA-Compliant U.S. Production	Letter of Intent for DMS to serve as contract manufacturer and supply chain manager at the Kinetyc facility in Wixom, Michigan. Aims for NDAA-compliant, Made in America drones. Announced June 25, 2025.
Rift Dynamics AS	Wasp Munition Drone Distribution	Ondas Holdings made a strategic investment on August 8, 2025, gaining exclusive U.S. distribution rights for the Wåsp platform. The initial mention included an order for 500 Wåsp units. This was expanded in October 2025 to include Nammo for fully integrated munition payloads.

The strategic nature of these alliances is evident in how they address immediate operational needs:

• Access to capital without equity dilution via Klear, Inc.
• Scaling domestic manufacturing capacity with Detroit Manufacturing Systems to meet U.S. federal requirements.
• Accelerating sales into high-value U.S. defense and homeland security markets through Mistral Inc.'s established government network.
• Securing exclusive distribution rights for a NATO-interoperable combat drone platform, the Wåsp, following a strategic investment.
• Advancing the Ondas Networks segment with Siemens Mobility, targeting critical rail infrastructure upgrades like Metra's 900 MHz network migration.

The company's backlog stood at $22.0 million at the end of Q2 2025, a figure these partnerships are intended to convert and grow into 2026.

Ondas Holdings Inc. (ONDS) - Canvas Business Model: Key Activities

You're looking at the core engine driving Ondas Holdings Inc.'s growth right now, which is a mix of aggressive inorganic expansion and product execution across two distinct, yet increasingly integrated, domains: Autonomous Systems (OAS) and Networks.

Aggressive M&A to build a multi-domain autonomy platform

Ondas Holdings Inc. has been actively deploying capital to build out its multi-domain autonomy platform through a series of strategic acquisitions and investments throughout 2025.

• Ondas raised approximately $855 million in 2025 through four equity offerings and warrant and option exercises.
• The company announced five strategic acquisitions in total.
• Capital deployment highlights include investments in Sentrycs, Apeiro Motion, 4M Defense, and Rift Dynamics.
• The acquisition of Apeiro Motion Ltd. closed on August 31, 2025.
• Sentrycs, a global leader in Counter-UAS Cyber Technology, was acquired, closing on November 18, 2025.
• Ondas agreed to acquire Roboteam for $80 million.
• Ondas announced a $35 Million Strategic Investment in Performance Drone Works (PDW) on November 20, 2025.
• Ondas launched Ondas Capital Inc. with a multi-year initiative to deploy $150 million to advance a Technology Bridge strategy connecting dual-use, combat-proven unmanned and autonomous technologies originating in Ukraine to the United States and Europe.

Manufacturing and delivery of Iron Drone Raider and Optimus systems

The Ondas Autonomous Systems (OAS) unit is seeing significant top-line acceleration driven by deliveries of its core drone platforms.

Metric	Q3 2025 Value	Comparison/Context
OAS Revenue (Q3 2025)	$10.0 million	An eight-fold increase from Q3 2024.
Total Company Revenue (Q3 2025)	$10.1 million	A 582% increase year-over-year from $1.5 million in Q3 2024.
Consolidated Backlog (as of Sep 30, 2025)	$23.3 million	Up from $20.7 million at the end of Q2 2025.
Optimus Order Value (June 2025)	$14.3 million	Increased revenue backlog to $28.7 million from $10 million at the start of 2025.
FY 2025 Revenue Target (Raised)	At least $36 million	Implies a Q4 revenue target of more than $15 million.
FY 2026 Revenue Target (Preliminary)	At least $110 million	Represents a projected 3x year-over-year growth.

Revenue concentration remains high, with one customer representing 90% of Q3 2025 revenue, and Israel accounting for $9.36 million of that quarterly revenue.

Research and development (R&D) of Software-Defined Radio (SDR) technology

While direct R&D spending figures aren't isolated here, the development and deployment of the SDR technology, specifically the dot16 platform, is a core activity validated by industry adoption and infrastructure buildouts.

• The dot16 technology, pioneered by Ondas Networks, was selected by the Association of American Railroads (AAR) Wireless Communications Committee (WCC) in September 2025 as the upgrade path for the legacy 160 MHz LMR voice network.
• dot16 has already been formally adopted for the 900 MHz and 450 MHz networks.
• Ondas is focused on leveraging its standards-based (802.16t), multi-patented, software-defined radio FullMAX platform to enable Mission-Critical IoT (MC-IoT) applications.

Securing and executing government-led counter-UAS pilot programs

Ondas Autonomous Systems is securing significant government and defense contracts, particularly for its Iron Drone Raider system.

• Ondas completed multiple government-led counter-UAS pilot programs in Europe and Asia in Q3 2025.
• The company secured a $3.4 million order for Iron Drone Raider in Europe on April 28, 2025.
• Ondas secured an $8.2 million order from a major European security agency in November 2025 for deployment at one of Europe's largest airports.
• Ondas announced a second, repeat order of approximately $8.2 million from the same European security authority on December 1, 2025, for another international airport.
• OAS was selected as the prime contractor for a major multi-phase government program to develop and deploy an autonomous border-protection System-of-Systems, with an initial purchase order expected in January 2026, intended to culminate in the deployment of thousands of autonomous drones over a two-year span.

Developing and deploying dot16-enabled rail network applications

Ondas Networks is executing on the migration of Class I railroads to the new 900 MHz A Block spectrum using its dot16 technology.

• Ondas Networks completed the first buildout of its IEEE 802.16 ('dot16') technology operating on the new 900 MHz 'A Block' with a large Class I railroad in Chicago, announced July 24, 2025.
• This installation included upgrades to the railroad's core base station infrastructure.
• The deployment enables general-purpose network capabilities of dot16 to connect wayside devices such as hotbox detectors to the dot16 network.
• Ondas Networks is coordinating the use of the A Block spectrum to assist railroads with ongoing migrations from the legacy 900 MHz network which is being retired.
• Ondas Networks previously announced an upgrade of Metra's legacy 900 MHz system to an advanced, 802.16 network operating on the new A Block in Chicago.

Ondas Holdings Inc. (ONDS) - Canvas Business Model: Key Resources

You're looking at the core assets Ondas Holdings Inc. (ONDS) is leaning on to drive its aggressive growth plan through late 2025 and into 2026. These aren't just line items; they are the tangible and intangible foundations supporting their dual focus on private wireless and autonomous systems.

The most immediate and impactful resource is the capital base, which has been transformed by recent equity activity. Following the October 7, 2025, equity offering, the company reports a pro forma cash balance of approximately $840.4 million. This massive liquidity injection, which followed a total of approximately $855 million raised in 2025 through equity offerings and warrant exercises, gives Ondas Holdings significant firepower for scaling production and funding its M&A strategy. Honestly, that kind of cash position fundamentally changes the near-term risk profile.

On the operational front, the order book provides a clear near-term revenue visibility. As of the end of Q3 2025, the consolidated backlog stood at $23.3 million. Management noted that this figure was supported by results to date, with an additional amount, over $40 million including acquisitions closed or pending in Q4, giving them even greater visibility. Here's the quick math: the Q3 backlog alone represents about two quarters of the raised 2025 revenue guidance of at least $36 million.

The intellectual property portfolio is centered around two distinct technology pillars:

• The FullMAX Software-Defined Radio (SDR) intellectual property (IP), which forms the basis of the Ondas Networks division, providing long-range, high-bandwidth broadband for critical infrastructure like rail.
• The autonomous systems technology, which is now significantly bolstered by recent strategic additions.

Ondas Holdings has been actively deploying capital to acquire and integrate key technologies, which are now core resources for the Ondas Autonomous Systems (OAS) unit. These acquisitions are building out a 'Systems of Systems' approach.

The table below summarizes the key technology platform assets:

Technology Platform	Business Unit/Focus	Status/Detail
FullMAX SDR IP	Ondas Networks	Proprietary long-range, high-bandwidth broadband network.
Sentrycs	OAS / Counter-UAS	Acquired platform specializing in airspace security, including Cyber-over-RF (CoRF).
Apeiro Motion	OAS / Ground Robotics	Acquired technology platform for ground robotics.
Optimus System	OAS / Autonomous Drones	FAA Type Certified uncrewed aerial vehicle for security and inspection.

A critical regulatory asset supporting the drone business is the FAA Beyond Visual Line of Sight (BVLOS) waiver for autonomous drone operations, secured by the American Robotics subsidiary in early 2025. This waiver allows the Optimus System to conduct true BVLOS operations, including flights over people and moving vehicles, managed remotely from the Baltimore Global Operations Control Center (OCC). This regulatory clearance is a testament to the technology's safety profile and is key to scaling services for defense and infrastructure customers.

Finance: draft 13-week cash view by Friday.

Ondas Holdings Inc. (ONDS) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Ondas Holdings Inc. (ONDS) right now, late in 2025. It's a story of dual focus: high-end defense autonomy and essential industrial connectivity. The numbers show where the market is placing its bets.

Integrated, multi-domain autonomous systems for defense and security

Ondas Autonomous Systems (OAS) is the primary engine here, delivering platforms that integrate aerial and ground intelligence for defense and security needs. The market validation is clear in the financials; OAS generated approximately $10.0 million in revenue in the third quarter of 2025, which is more than an eight-fold increase from the same period in 2024. This segment is driving the overall corporate outlook, which was raised to at least $36 million in revenue for the full 2025 fiscal year.

The pipeline reflects high-value commitments. The consolidated backlog stood at $23.3 million as of September 30, 2025. Specifically for the defense side, you see major contract wins supporting this value proposition:

• Secured a $14.3 million order for the Optimus drone system, the largest single Optimus order in the Company's history (Q2 2025 data).
• Announced a second major counter-UAS order of $8.2 million from a European security authority for Iron Drone Raider deployment.
• Completed multiple government-led counter-UAS pilot programs in Europe and Asia validating the Iron Drone Raider.

NDAA-compliant, U.S.-produced drone and counter-UAS solutions

For defense and security customers, compliance is a non-negotiable value driver, especially as NATO and the U.S. work to remove non-compliant Chinese systems. Ondas Holdings Inc. offers a distinct advantage here, boasting 5-plus drone systems that are all NDAA-compliant. This compliance is actively being recognized by key bodies.

The Optimus drone platform has achieved significant regulatory milestones that directly translate to market access:

System/Certification	Status/Impact	Relevant Metric
Optimus Drone	Secured GreenUAS Cleared List certification	Positions system for Department of War Blue List inclusion
NDAA Compliance	Advantage against non-compliant systems	Moat against foreign-made drone competition

Mission-critical private wireless networks (MC-IoT) for industrial clients

The Ondas Networks unit provides the FullMAX Software Defined Radio (SDR) platform, which is designed for Mission-Critical IoT (MC-IoT) applications where legacy licensed wireless networks fall short on bandwidth. This targets essential sectors like rail and energy. While the Autonomous Systems unit is the current revenue star, the Networks division is building foundational traction for long-term, recurring revenue.

You see this traction in active engagements and standards adoption:

• Multiple Class 1 railroads are engaging to develop in-field pilots for new critical applications as of late 2025.
• The FullMAX platform is standards-based on the IEEE 802.16 standard.
• The company's dot16 technology was selected by the Association of American Railroads (AAR) for next-generation rail communications.

Fully autonomous, drone-in-a-box systems with FAA BVLOS waiver

The ability to operate drones remotely and at scale is a massive operational efficiency proposition, and this is underpinned by regulatory success. The Optimus System is notable as the only FAA Type Certified uncrewed aerial vehicle (UAV) specifically developed for security and inspection applications.

The key enabler here is the regulatory clearance:

The American Robotics subsidiary secured an additional Federal Aviation Administration (FAA) Beyond Visual Line of Sight (BVLOS) waiver, which permits flights over people and moving vehicles, all managed remotely from their Baltimore Global Operations Control Center (OCC). This waiver allows one Remote Pilot in Command (RPIC) to oversee multiple UAS, which is defintely the path to scalability.

Enhanced operational efficiency and security for critical infrastructure

The combined effect of these technologies is a tangible improvement in security posture and operational throughput for customers, which is reflected in the company's own financial acceleration. The total company revenue target for 2025 was raised to at least $36 million, up from an earlier target of $25 million.

The third quarter of 2025 demonstrated this execution:

The company reported total quarterly revenue of $10.1 million, representing a massive 582% increase year-over-year. The gross profit for that quarter reached $2.6 million, yielding a gross profit margin of 26%, a significant improvement from the 3% margin in Q3 2024. To support this growth and acquisitions, Ondas Holdings raised approximately $855 million in equity during 2025, resulting in a pro forma cash balance of approximately $840.4 million as of Q3 2025.

Ondas Holdings Inc. (ONDS) - Canvas Business Model: Customer Relationships

High-touch, long-cycle sales to government and defense agencies are evidenced by specific contract values. Ondas Autonomous Systems (OAS) secured a $14.3 million order from a major defense customer for the Optimus drone system in Q2 2025. This division also received follow-on orders of $3.8 million from the Government of Dubai in Q2 2025. In Q1 2025, OAS booked over $9.0 million in new orders for its Iron Drone and Optimus platforms across multiple regions. The company fulfilled a $10 million backlog from 2024 in the first quarter of 2025. OAS generated $6.1 million in revenue in the second quarter of 2025, a more than 6-fold increase from the same period in 2024.

Strategic, collaborative development with Class 1 railroads and utilities is ongoing, though network deployment ramp is modest. Ondas Networks' FullMAX platform uses the IEEE 802.16t standard for mission-critical IoT applications. The Association of American Railroads (AAR) selected the dot16 technology as the upgrade path for the legacy 160 MHz network for the Next-Generation Head-of-Train/End-of-Train (NGHE) system. Revenue expectations for Ondas Networks are modest given the delayed ramp in network deployments from the Class I Railroads.

Dedicated customer support and maintenance for mission-critical systems underpin the Robot-as-a-Service (RAAS) model for drone platforms. The Optimus System is marketed as a turnkey data solution service. The OAS backlog reached $20.7 million as of June 30, 2025.

Direct enterprise sales support large-scale, multi-year platform adoption, particularly in defense. The consolidated backlog for Ondas Holdings stood at $23.3 million at the end of Q3 2025. The company increased its 2025 revenue target to at least $36 million, up from a prior target of at least $25 million.

Investor relations focus heavily on communicating rapid growth and capital deployment. Ondas Holdings raised approximately $855 million in 2025 through four equity offerings and warrant/option exercises. The pro-forma cash balance ended Q3 2025 at $840.4 million. Total shareholders' equity grew to $487.2 million as of September 30, 2025, from $16.6 million on December 31, 2024. Ondas Capital was launched to deploy $150 million in capital for its Technology Bridge strategy. The preliminary revenue target for 2026 is set at least $110 million.

Here's a quick look at the key financial and order metrics through Q3 2025:

Metric	Value/Amount	Date/Period End
Total Capital Raised in 2025	$855 million	2025
Pro-Forma Cash Balance	$840.4 million	Q3 2025
Consolidated Backlog	$23.3 million	Q3 2025
OAS Backlog	$20.7 million	Q2 2025
Largest Single Defense Order (Optimus)	$14.3 million	Q2 2025
2025 Revenue Target (Updated)	At least $36 million	Q3 2025
2026 Revenue Target (Preliminary)	At least $110 million	Q3 2025

The company's Q3 2025 gross profit margin reached 26%, up from 3% in Q3 2024.

Customer relationship touchpoints include:

• Securing major defense orders like the $14.3 million Optimus system contract.
• Advancing key programs in Israel and the UAE with successful platform deployments.
• Engaging multiple Class 1 railroads for in-field pilots on new critical applications.
• Establishing a manufacturing partnership with Detroit Manufacturing Systems (DMS) for U.S. production.
• Executing on strategic investments, such as the $8.0 million investment in LightPath Technologies, Inc.

Ondas Holdings Inc. (ONDS) - Canvas Business Model: Channels

You're looking at how Ondas Holdings Inc. gets its specialized technology-private wireless networks and autonomous drone solutions-into the hands of its key customers. The Channels block here is less about off-the-shelf retail and more about deep, relationship-driven sales into defense, public safety, and critical infrastructure sectors. It's a multi-pronged approach that relies heavily on direct engagement and strategic intermediaries, which is typical when selling complex, mission-critical hardware and software.

The company's updated FY2025 revenue target is now at least $36 million, up from the prior $25 million target, showing that these channels are starting to convert significant demand into recognized revenue. The Ondas Autonomous Systems (OAS) division is the primary driver, with a preliminary 2026 revenue target set at at least $110 million.

Direct Engagement and Partner Networks

Ondas Holdings Inc. uses a combination of its own specialized teams and established third parties to navigate complex procurement processes. The reliance on partners is clear, especially in the U.S. defense space.

The strategic partner network is key for accessing government buyers:

• The partnership with Mistral Inc. is set for an initial term of three years with automatic renewal.
• Mistral leverages its relationships with U.S. governmental buyers, including federal, state, local law enforcement, military, and homeland security entities.
• Mistral brings over 35 years of experience in defense technology business development to the table.
• This collaboration is designed to accelerate sales of the Optimus drone system and Iron Drone Raider.

The direct sales effort, while not quantified by team size, is clearly focused on expanding its footprint, as evidenced by the goal to secure four new military or homeland security customers for FY2025, up from an initial goal of two.

Railroad Technical Committee Engagement

For the Ondas Networks segment, the channel is deeply technical, involving direct engagement with standards bodies and the engineering committees of major rail operators. This is about getting their technology, IEEE 802.16 (dot16), adopted as the industry standard, which creates a massive, long-term deployment cycle.

Here's a look at the validation and direct engagement points:

Engagement Point	Status/Metric as of Late 2025	Impact/Context
AAR NGHE Selection	Formally selected in Q2 2025.	Validates dot16 technology for Next-Generation Head-of-Train/End-of-Train systems.
Legacy 900 MHz Retirement	Legacy band retirement deadline set for September 2025.	Creates a mandatory migration window for Class 1 railroads to adopt new spectrum solutions like dot16.
Class 1 Railroad Deployment	Completed first buildout on the new 900 MHz 'A Block' with a large Class I railroad in Chicago.	Demonstrates maturity and readiness in complex urban rail environments.
Board Advisor Appointment	Veteran rail executive Brent Laing joined the board on December 2, 2025.	Designed to accelerate industry-wide adoption of dot16 protocol.

The company is actively working with multiple Class 1 railroads on field trials to expand dot16 applications beyond the NGHE requirement and into broader operational domains. Revenue expectations for Ondas Networks are currently modest due to the delayed ramp in these network deployments.

Global Commercial Locations and Acquired Channels

Ondas Holdings Inc. is clearly pushing for global commercial adoption, particularly for its OAS products, which secured significant international orders. While the specific operational scale of the Dubai and Singapore locations isn't detailed with financial figures, the geographic success points to their importance in localized support.

Evidence of global channel success includes:

• Secured key program milestones in Israel and the UAE during Q2 2025.
• Recorded a $3.8 million follow-on order from Dubai in Q2 2025.
• Recorded a $3.8 million expansion of the Optimus Drone Network in the UAE in Q2 2025.
• The company is actively expanding into Japan, Latin America, and NATO-aligned countries.

The company's strategy involves leveraging acquisitions to immediately integrate established distribution and sales channels, as seen with the recent addition of businesses like Apeiro Motion, which contributed to the Q3 2025 revenue of $10.1 million.

Finance: draft Q4 2025 cash flow projection incorporating the $407.0 million in net proceeds raised in October by Friday.

Ondas Holdings Inc. (ONDS) - Canvas Business Model: Customer Segments

You're looking at the customer base for Ondas Holdings Inc. as of late 2025, which is heavily weighted toward high-value, mission-critical sectors, primarily driven by the Ondas Autonomous Systems (OAS) division.

The customer segments Ondas Holdings Inc. targets are diverse, spanning defense, critical infrastructure networking, and specialized industrial applications. The company's 2025 revenue guidance was raised to at least $36 million for the full year, with the OAS unit expected to be the primary contributor, aiming for over $20 million of that total initially.

The customer base is segmented as follows:

• Global defense and military organizations (major revenue driver)
• Public safety and homeland security agencies (e.g., airport security)
• Class 1 railroads and large freight operators in North America
• Energy, oil and gas, and utility companies (critical infrastructure)
• Bulk materials and industrial stockpile management firms

The defense and public safety segments are currently generating the most visible revenue, as evidenced by recent contract awards. For instance, the largest single Optimus drone system order secured in the company's history was $14.3 million from a major defense customer.

Here's a look at how the revenue and backlog figures from the first three quarters of 2025 map against the business focus, keeping in mind that the rail segment revenue ramp is currently modest:

Customer Segment Focus Area	Associated 2025 Financial Data Point	Amount/Value
Global Defense/Military (OAS)	Largest Single Optimus Order Secured (Q2 2025)	$14.3 million
Public Safety/Homeland Security (OAS)	Dubai Follow-on Order for Drone Network Expansion (Q3 2025)	$3.8 million
Defense/Ground Robotics (OAS - Apeiro Acquisition)	Defense Deal for Unmanned Ground Vehicles (Q3 2025)	$3.5 million
Defense/Counter-UAS (OAS - Iron Drone)	European Governmental Defense Contract (Q3 2025)	$3.4 million
Ondas Autonomous Systems (OAS)	Revenue Generated in Q3 2025	Approximately $10.0 million
Consolidated Business	Total Revenue Guidance for Full Year 2025	At least $36 million
Consolidated Business	Consolidated Backlog as of September 30, 2025	$23.3 million

The Class 1 railroads segment, served by Ondas Networks, has seen validation but not immediate large revenue conversion. The company's dot16 wireless industrial networking technology was selected for the Next Generation High-Bandwidth Train Communications (NGHE) technology by the Association of American Railroads (AAR). Revenue expectations for Ondas Networks remain modest due to the delayed ramp in network buildouts from these Class I Railroads.

For the energy, oil and gas, utility companies, and bulk materials/industrial stockpile management firms, these represent the company's historical focus for its private wireless networks, but specific 2025 financial figures tied directly to these industrial verticals are not explicitly broken out from the overall Ondas Networks revenue, which is currently overshadowed by the OAS segment's growth.

The OAS division's backlog reached $22.2 million as of September 30, 2025, showing strong forward visibility primarily from defense and public safety customers.

Ondas Holdings Inc. (ONDS) - Canvas Business Model: Cost Structure

You're looking at the cost side of the Ondas Holdings Inc. equation as they scale their Autonomous Systems (OAS) and integrate recent buys. The spending reflects aggressive investment for future revenue targets.

High operating expenses reached $18.1 million in the third quarter of 2025. This was a significant jump, up $9.4 million from the $8.7 million reported in the third quarter of 2024. This total figure includes non-cash charges, which were substantial.

Breaking down the third quarter of 2025 spending shows that total operating expenses of $18.1 million included approximately $5.0 million related to non-cash stock compensation expenses. This leaves the cash operating expenses at $11.6 million for Q3 2025, compared to $7.2 million in Q3 2024, an increase of $4.4 million.

The cost structure is heavily weighted toward scaling the business, which you can see reflected in the cash burn.

Metric	Q3 2025 Amount	Q3 2024 Amount	Year-over-Year Change
Total Operating Expenses	$18.1 million	$8.7 million	Up $9.4 million
Cash Operating Expenses	$11.6 million	$7.2 million	Up $4.4 million
Non-Cash Stock Compensation (Approximate)	~$5.0 million	Not explicitly detailed as a separate line item in the same way	Contributed to the OpEx increase
Adjusted EBITDA Loss	Loss of $8.8 million	Loss of $7.1 million (Q3 2024)	Wider loss by $1.7 million

The increase in cash operating expenses is defintely tied to building out the infrastructure to support the growth Ondas Holdings is projecting. Here's the quick math on the drivers:

• Higher personnel costs, particularly with the OAS operating infrastructure build-out.
• Costs associated with integrating recent acquisitions like Sentrycs, Apeiro Motion, 4M Defense, and Rift Dynamics.
• Additional operating costs related to strategic partnerships, such as the Palantir partnership mentioned in Q2 2025 results.
• Other Research and Development (R&D) expenses necessary for platform advancement.

Looking back at the second quarter of 2025, operating expenses were $12.6 million, with an increase of approximately $3.6 million related to human resource costs, including stock-based compensation, to support business growth. Cash operating expenses in Q2 2025 were $9.4 million.

Capital expenditure for manufacturing and production capacity expansion is a planned use of the strengthened balance sheet, which held approximately $433.4 million in cash as of September 30, 2025. Costs related to regulatory compliance, especially FAA and NDAA standards, are embedded within the operating expenses as the company secures certifications like GreenUAS for its Optimus platform to improve U.S. DoD positioning.

Ondas Holdings Inc. (ONDS) - Canvas Business Model: Revenue Streams

You're looking at Ondas Holdings Inc. (ONDS) revenue streams as of late 2025, and the picture is clearly shifting toward product delivery scale. The core driver right now is the Ondas Autonomous Systems (OAS) unit. For the third quarter of 2025, the product sales of autonomous systems, specifically the Iron Drone and Optimus platforms, to defense and public safety customers generated $10.0 million. This strong quarterly performance allowed the company to raise its full-year 2025 revenue guidance to at least $36 million, up from a prior target of at least $25 million.

To give you a clearer snapshot of where the money is coming from and where it's headed, here's a quick look at the key figures we are tracking:

Revenue Component	Latest Reported Figure / Target	Timeframe / Context
Q3 2025 Autonomous System Sales (OAS)	$10.0 million	Third Quarter of 2025
Full-Year 2025 Revenue Target	At least $36 million	Revised Guidance for FY2025
Consolidated Backlog for Conversion	$23.3 million	As of September 30, 2025
Preliminary 2026 Revenue Target	At least $110 million	Set for Fiscal Year 2026

Now, let's talk about the other side of the house, Ondas Networks. Honestly, revenue from their private wireless solutions for the rail industry is currently described as modest. This is due to the delayed ramp in network deployments with the Class I Railroads. Still, the technology selection for next-generation rail communications provides a foundation for future, albeit slower-burning, revenue from development programs and system sales.

The long-term potential for Ondas Holdings Inc. is heavily weighted toward recurring revenue, which is the sweet spot for valuation multiples. We are looking for the transition to Robotics-as-a-Service (RaaS) models. This shift from pure system sales to long-term service and subscription revenue streams will be key to smoothing out the lumpy nature of defense system deliveries. It's a classic move for hardware-heavy businesses aiming for predictable cash flow.

The immediate opportunity to realize revenue sits within the existing order book. Converting that backlog into recognized sales is the primary near-term action item for the management team. You should watch these figures closely:

• Converting the $23.3 million consolidated backlog into deliveries.
• The OAS backlog alone stood at $22.2 million at the end of Q3 2025.
• The total backlog, including pending acquisitions, reached $40 million.
• The company expects to end 2025 with a record backlog, positioning them for the $110 million target in 2026.

Finance: draft the Q4 2025 revenue projection based on backlog conversion rate by next Tuesday.