Odysight.ai Reports Full Year 2025 Results: Strategic Transformation and Substantial Market Progress

Key Financial and Strategic Highlights for Investors

Odysight.ai Inc. (NASDAQ: ODYS), a leader in AI-powered visual sensing and predictive maintenance (PdM) solutions for aerospace, defense, and industrial markets, has released its full year 2025 financial results and provided a comprehensive business update. The company, now fully focused on high-value industrial sectors after exiting its legacy medical business, reports a year of transformational change, significant market penetration, and robust backlog promising future growth.

Key Highlights of FY2025

• Vision-based PdM/CBM Revenue Growth: Revenues from Odysight.ai’s core vision-based predictive and condition-based monitoring platforms grew approximately 23% year-over-year, reflecting growing adoption by commercial aerospace and industrial customers.
• Backlog: The company reported a backlog of approximately \$13.8 million as of December 31, 2025. Monetization of this backlog began in 2025 and is expected to continue into subsequent years, providing revenue visibility and a foundation for expansion.
• Strong Cash Position and No Debt: Odysight.ai ended 2025 with a cash balance of approximately \$26 million and carries no debt, supporting ongoing deployments and growth initiatives.
• Major Aerospace and Defense Milestones:
  • Delivered first systems for UAVs under contract with a Top 25 global defense contractor.
  • Deployed vision-based monitoring system for Heron TP UAV, a strategic asset to the Israeli Ministry of Defense and Air Force.
  • Delivered critical milestones for the Israeli Air Force SH-60 program.
  • Successfully demonstrated technology on AW139 Leonardo helicopters with the Italian Air Force Flight Test Unit.
  • Showcased next-generation high-temperature optical sensors in OEM aerospace trials in South-East Asia.
  • Received pilot orders from a major defense customer for combat helicopter and airborne weapons monitoring (January 2026).
  • Partnered for first U.S. flight testing on the UH-60 Helicopter (January 2026).
• Expansion into Industrial Markets:
  • Received a commercial purchase order for 200 elevator predictive monitoring systems from a leading European provider.
  • Completed proof-of-concept work on heavy-duty mine trucks with a major international automotive OEM in South America.
  • Deployed systems in operational railway environments and advanced collaboration with Israel Railways for AI-powered derailment prevention.
• Global Expansion: Established a new U.S. commercial team, launched a European Union subsidiary, and appointed a Chief Business Officer to drive international growth.
• Capital Market Achievements:
  • Uplisted to the Nasdaq Capital Market in February 2025.
  • Completed a U.S. underwritten public offering, raising gross proceeds of approximately \$23.7 million.
  • Added to the Russell Microcap Index in July 2025.
• Potential Dual Listing on TASE: The Board is exploring a dual listing on the Tel Aviv Stock Exchange, which would expand access to Israeli and international investors and potentially increase share liquidity and value.

Detailed Financial Performance

• Total Revenues: \$3.0 million for FY2025, down from \$4.0 million in FY2024, reflecting the wind-down of legacy medical business. Nevertheless, core PdM/CBM revenues (excluding legacy) grew by 23%.
• Backlog: \$13.8 million as of year-end 2025, with monetization underway and expected to accelerate in 2026.
• Gross Profit: \$0.9 million (29% gross margin, consistent with prior year).
• Operating Expenses: \$19.0 million, up from \$13.7 million in 2024, driven by global expansion, product development, and one-time Nasdaq uplisting costs.
• Net Loss: \$17.0 million, compared to \$11.8 million in 2024, due to increased investment in R&D, market entry, and infrastructure.
• Cash and Equivalents: \$26.0 million at year-end, up from \$18.5 million in 2024, bolstered by the Nasdaq offering.

Strategic Commentary from Management

CEO Yehu Ofer emphasized that 2025 marked a transformative year, with the company now focused exclusively on aerospace, defense, and industrial markets—sectors where its AI-powered visual sensing technologies have proven highly versatile and impactful. Deployments and evaluations are underway across a range of demanding environments, including combat helicopters, UAV platforms, NASA space vehicles, railway infrastructure, elevator systems, and mining vehicles.

CFO Einav Brenner noted the year reflected a strategic investment in growth and infrastructure to deliver on the substantial backlog and support further commercialization. The company expects to continue monetizing the backlog and to actively pursue new contracts to expand the order book. The potential TASE dual listing is positioned to further diversify and broaden the investor base.

Potential Price-Sensitive Information for Shareholders

• Substantial Backlog: The \$13.8 million backlog represents significant revenue potential for 2026 and beyond, underlining strong demand and providing forward visibility.
• Expansion into New Markets: Successful penetration of high-volume industrial sectors, such as elevators, mining trucks, and railways, opens new addressable markets.
• Nasdaq Uplisting and Capital Raise: The February 2025 uplisting and \$23.7 million offering strengthen the balance sheet and may enhance stock liquidity and institutional interest.
• Potential Dual Listing on TASE: Could expand the shareholder base and increase trading volumes, possibly impacting share valuation.
• Ongoing Operating Losses and Increased Expenses: While growth investments are expected to yield long-term returns, shareholders should be aware of the current net losses and elevated spending related to R&D, market expansion, and public company requirements.
• Customer Concentration and Backlog Risk: The company notes risks associated with backlog conversion, customer delays, and cancellations, which could affect future revenues and profitability.

Outlook and Risks

Odysight.ai anticipates continued backlog monetization and further growth in aerospace, defense, and industrial markets. The company’s strong cash position supports ongoing investment and order fulfillment. However, investors should remain aware of risks including the company’s dependence on a limited number of customers, the unpredictability of sales cycles, backlog realization uncertainties, competitive pressures, regulatory changes, geopolitical instability (particularly in the Middle East), and the ongoing need for additional financing if growth investments continue at the current pace.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Forward-looking statements are subject to risks and uncertainties. Investors should consult official filings and perform independent due diligence before making investment decisions.

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