Good day and welcome to the Ondas Holdings Inc. Third Quarter 2025 Conference Call. All participants will be in listen-only mode. After today's presentation, 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 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, our CFO, Oshri Lugasi, the Co-CEO of Ondas Autonomous Systems, Meir Kliner, President of OAS and the Founder of Aerobotics, and Markus Nottelmann, the CEO of Vantas Networks. So let's turn to the agenda. We'll begin the call with a review of our key highlights from 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 OAS and Ondas Networks business units, we'll ask Oshri, Meir, and Markus to share commentary on current business activity and progress against our plans. During our OAS 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 Centrix, who's joining the call to share some insight into the Centrix 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 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 positioning wasn't luck. It's the result of years of hard work, discipline, and planning. We've earned it, as have our investors. We've built a strong foundation through talent and perseverance and again, through the support of…

We

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, we now have forward offices and key allied innovation in financial quarters, including Boston, New York, Kiev, Tallinn, 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-proven technologies while working side by side with our partners and allies at the frontline 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, 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?

Thanks. 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 million a year ago. It reflects the ongoing deliveries of Iron Drone and Optimus Systems, and contributions from Apero ground robots related services. Under contracts from 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 $50,000 in 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 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 shifts in revenue mix between product development, product development, and services revenue. Operating expenses increased to $18.1 million for 2025 as compared to $8.7 million in 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 non-cash items such as stock-based compensation, depreciation, and amortization, were $11.6 million in 2025. Compared to…

Now when we transition to a review of our business units and ask Markus, Oshri, and Meir to provide updates on business development activity and operations at OAS. Start first with Markus who is moving OAS on our DOT 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 DOT 16 P, 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 DOT 16 for all new developments in the AAR-owned frequencies. This represents the AAR's commitment to 16 not only on the 900 and 450 but also on the 160 megahertz network. Again, this means that all of the AAR-owned frequencies are destined to adopt DOT 16, the DOT 16 wireless platform. As outlined in the Q2 earnings call, the 160 MHz network has characteristics that make it a compelling case for railroad investment. Specifically, the 160 megahertz network is ubiquitous. Where there is rail, there is 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-owned 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 DOT 16 on the 160 megahertz network. In Q4 and early next year, we are running several separate field trials on Class I and other railroads. Three railroads that in aggregate address long-term industry needs in significant markets. Specifically, these POCs address clear communications, signaling, and connected wayside topics. As well as general connectivity topics for connected…

Thank you, Markus. I will now ask Oshri Lugasi to take the floor and provide a business update for the OAS business unit. Meir Kliner will also share some context on the progress of the build-out of the OAS operating platform. We will also be joined by Tal Cohen, the Founder and General Manager of Centrix, who will introduce the company, its technology platform, and the strategic fit with Ondas in our IronDrone platform. Oshri, please proceed. Thank you, Eric. During Q3, we made a huge leap forward

in building Ondas Autonomous Systems into a true defense tech and security firm. 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 the autonomous infrastructure that nations and industry will rely on. Our goal is bold and global, to build a powerful global leader that delivers 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 in threats posed by drones. We are prioritizing combining sensors that can detect and track threats from small UAVs to large ones with effectors 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 sustains modern life. Across all our systems, we integrate advanced AI at multiple levels of autonomy. From prompt-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…

Thank you, Oshri. During the quarter, we accelerated the execution of our strategic growth program, which drives value creation through accelerated growth and a clear path to profitability. The first start after outlining the plan for investors 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 contributes a unique 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 one interoperable platform. Synergies accelerate customer solution delivery, enhance revenue growth, and increase operational leverage through OAS' scaled infrastructure and position OAS as a next-generation multi-domain defense and security leader. We are building a scaled and interoperable platform by bringing together a group of highly complementary companies, each 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 five new companies and bringing 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 one 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. Vampiro Motion marks our entry into ground robotics and payload systems, a key capability for border defense and maneuvering forces…

Thank you, Meir, and thank you for having me today. At SentriX, we are truly excited to join Ondas. We believe this partnership will create a significant opportunity to deliver together with Ondas the ideal solution to the evolving drone threat that has rapidly emerged over the past few years. I am pleased to highlight how SentriX is driving a major advancement in our Counter Unmanned Aerial Systems capability through our proprietary CyberOver RF technology or COF in short. COF works differently from a traditional jamming or kinetic solution. Rather than broadly disrupting signals or deploying interceptors, SentriX's 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 a hostile drone in seconds. Some of the operational advantages stand out. Rapid deployment and simplicity. SentriX system can be deployed in minutes, in a single Pelican case or mobile. Precision and safety. COF ensures zero interference with authorized drones, GPS, or nearby communication systems. Enabling safe mitigation in civilian, critical infrastructure, and defense environments alike. Proven global performance. SentriX is already trusted by 25 countries. By integrating SentriX into the OAS architecture, alongside our aerial platforms, ground systems, and sensor networks, we will be delivering a complete detect-to-defeat CUES ecosystem. SentriX brings the software layer of precise, cyber protocol takeover, which pairs organically with our Kinetic Platforms for hard kill response. As drone threats become more agile, more numerous, and more diverse across borders, critical infrastructure, and contested environments, the COF capability gives us the scalability, agility, and compliance required for today's multi-domain defense posture. In short, with SentriX on board, we are not just reacting to drone threats. We will be proactively controlling them. Safely, reliably, and at scale. SentriX's global footprint is…

Thank you, Tal. As you know, we are thrilled to have SentriX join the Ondas team. We see exceptional talent at SentriX 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 CUES 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 seven potential targets. Collectively, these opportunities represent more than $500 million in potential additional revenue, highlighting the material impact our strategic growth program can have as we continue to execute. We believe this momentum positions us for a very strong 2026, one where our acquisitions and partnerships will not only add scale and capability but also drive higher operating leverage, faster growth, and sustained profitability. Ondas is building a platform designed for expansion. We are confident that the next phase of our M&A program will continue to strengthen both our business…

However,

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. 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 two dedicated events: an Ondas Capital Investor Day in December, where we will dive into that business unit's strategy and investment roadmap, and 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 roadmap and 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 year in 2025, 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 ten-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 visibility into increasingly profitable growth over time, which we believe will support a premium valuation for Ondas. 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 solutions that open new customer and market opportunities. This is how we intend to continue building shareholder value. Execution, scalability, and disciplined capital deployment that compounds over time. I'm really excited to wrap up 2025 strongly and further excited to continue to leverage our momentum into 2026. With that said, operator, we will now move to take investor questions.

Thank you. We will now begin the question and answer session. And the first question will come from Amit Dayal from H. C. Wainwright. Please go ahead.

Good morning, everyone. Thank you for taking my questions. Eric, very impressive, the speed at which you are executing. Just along those lines, you highlighted that you are pursuing seven deals that you are at advanced stages from an M&A perspective. Just to clarify, if you do close all those seven deals, are you saying annual revenues at least the run rate could exceed $500 million per year?

No, I'm not saying that. Specifically to the seven targets. We're talking more broadly about the pipeline we outlined.

Okay. Understood. And then

let me just add that 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 one-time 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 twelve to eighteen 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 ten-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 see that mix start to shift as well when commercial starts to grow.

Got it. Thank you. 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 that leadership team and that OAS 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 believe we can do with this operating platform layer I described is accelerate 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 on talent I think we're going to be growing that talent as well. Got it. That's all I have there. Thank you so much.

Sure.

And the next question will be from Mike Latimore from Northland Capital Markets. Please go ahead.

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. And 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 then the financial model for 2026. And there, we'll give you a sense as to when we can cover the holding company costs.

Got it. And then the SentriX acquisition sounds very positive. I guess as you think about the counter-UAS or counter-drone market, do you expect most of your prospects to buy both SentriX 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 going to be deployed. As you know, these are layered technologies. In many places, having the soft and hard kill will be appropriate. In certain locations, having one may be more appropriate. So we'll have to see how that plays out. 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 guidance value in guiding our customers to what those layers look like at specific locations.

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 seem 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. A critical infrastructure market even for in public safety, for the counter-drone. So as we look into 2026, we expect the counter-drone to likely lead the charge. However, we're going to see growth really across the board.

Okay, great. Thanks a lot. All right, great. Thanks, Mike.

And the next question is from Tim Horan from Oppenheimer. Please go ahead.

Thanks. I got about 20 questions, but I'll keep it to three. Eric, it doesn't seem like Europe has much in the way of near air defenses at this point, but it sounds like it has been deployed in the locations. But is that pretty accurate? And I guess do you have the platform now to kind of go protect or sense and protect the nuclear facilities and other facilities coming? Can that be up and running relatively quickly?

So, yes, you're right. I think Europe and it's really true globally that the counter-drone infrastructure build-out really is just in its infancy. The batter is just coming for the first pitch. So we see a lot of greenfield here. At the same time, Europe is likely uniquely pressured here because of the war in Ukraine is on their doorstep, and you're seeing many reports consistently of drone threats emerging in Europe. So we think there's 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 SentriX is deployed in a bunch of locations. Is there any evidence that their technology works to protect these locations? Yes.

Oh, yeah. 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 growth curve is going to be sustained.

So on Mike's question of integrating Iron Drone with SentriX, when will that actually be accomplished? When can you start deploying the platform, yeah?

Let's I'm going to defer that to our call in January. I don't want to put the timelines on that. I will add that the detection piece of what SentriX does 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 SentriX 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, you know, are they deploying a detection technology? Are they doing the soft kill? Are they adding hard kill, so it depends. But it can run into the millions of dollars per airport, sure.

And is that an annual recurring fee, do you think? Or how does it come about like the upfront for annual recurring?

There are recurring fees on that, but yes, it again depends on what's being deployed. And I think we'll be able to lay that out in January, the financial models around this.

Thank you.

Thank you.

And the next question is from Austin Delhaig from Needham. Please go ahead.

Hey guys, thanks for taking my question and congrats on the great results. First question, guys, is kind of on the new 2025 guide. The $11 million in uptick, it sounds like 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, run the businesses that OAS is one unit and we have two business units on this that works in OAS. And that's what we're going to be presenting to you on a go-forward basis. But the from the acquisitions, and the core business as well. In terms of contribution in Q3, we did highlight that Apero was additive, but we're seeing strength.

Okay. And then looking at kind of your guys' 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 SentriX 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 SentriX 70%, that's 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 a more precise outlook on that. But I do think 50% is a very comfortable number. And from there, I think we can see upside.

All righty. Well, thank you guys again and keep up all the great work.

Great. Thanks, Austin.

And the next question will come from Glenn Mattson from Ladenburg. Please go ahead.

Yes. Hi. Thanks for taking my call. Another one on SentriX. For me, you don't mind. Can you just talk about the obviously, there's EV capabilities because it 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, Tal you're probably equipped to take this.

I'm trying to assist. So just to make sure I understood the question correctly was what is the difference between general or additional or other effect also soft capabilities to temporary capability?

Yeah, the correct What was the question?

Yes. So our question is based is excellent during the presentation on the cost Cyber Overhead capability. Meaning we can first detect and track and identify the drone in a passive manner. So we are not emitting or creating any interference whatsoever. And I think the most important part is for the mitigation we assume control over the drone with starting to communicate quite fine while communicating with the drone and not by doing any jamming or inflicting any other communication collateral damage. So it's a very short, very safe, very limited, and precise surgical and soft kill technology.

Appreciate that. And to your knowledge, there's no one else doing something similar in terms of being able to do drone capture such as like that without interfering with other communication technologies.

Yeah. Our other capabilities that are doing and that are trying to do the same or to use the same technology. But currently, the technology is quite rare and very effective.

Great. Very I'll add I'll add, Glenn, if I

if I could say in our assessment of the market, the SentriX solution was hands down the most robust. And I'd also contrast this just to be make sure it's clear. We're not talking about jamming or spoofing radio links or GPS, we're talking about the cyber over RF. Which has significant benefits in performance. This is the taking control of the drone and then landing it. So it's the threat to mitigate it.

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 some 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 various Yes. On the margin side,

yes, I get the question. On the margin side, we're quite confident that margins will trend higher from these levels in 2026 as we get scale and the mix certainly is going to improve as well.

Great. Okay. Thanks, guys.

Thanks, Glenn.

And the next question is from Matthew Galinko from Maxim Group. Please go ahead.

Hey, thanks for taking my question and congratulations on the quarter. I wanted to ask about just 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? Thanks.

All right. So I'll take the latter first. We believe we have ample capacity to meet this plan in 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 platform. Platforms, IronDrone and 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. Obviously, we're well-capitalized. We will focus at the same time on our cash conversion cycle. So we'll probably be able to give you more details on at that meeting in January.

Great. Thank you.

Sure. Thanks, Matt.

And the next question is from Jonathan Sigman from Stifel. Please go ahead.

Good morning, Ondas team. Thank you for taking my question. And 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. 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 the integrated whole. Thank you.

Yes. Thanks, John. So you first mentioned that the speed of the M&A, and that is I think that observation is spot on. We've articulated this really as an opportunity, probably a once-in-a-generation opportunity to provide a scaled platform for these important technologies, and I 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'll 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 incentives, and we find those to be very, very successful. The team that we're putting together believes 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, would say. But I think our team and I think the perspective management teams that we're talking to on the M&A side are excited about building a big company because, of course, they're looking at it as an opportunity to build substantial equity value. So I think that's kind of worked out well for us.

Thank you.

Thanks, John.

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.

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