Executive Summary

Q1 revenue surged to $2.07M, up from $0.19M a year ago, driven by ~$1.7M recognized from fulfilling a Fortune 500 medical contract; gross margin was 26% and net loss widened to $4.27M .
Versus S&P Global consensus, revenue massively beat ($2.07M vs $0.30M*), while EPS missed (−$0.29* vs −$0.12*), reflecting a mix of one-time revenue recognition and elevated operating costs tied to scaling and uplisting .
Balance sheet strengthened post-Nasdaq uplisting and offering: cash was ~$37.2M at March 31, 2025; backlog stood at ~$14.8M supporting forward visibility .
Narrative pivot continues from Medical to Aerospace/Industry 4.0 with new commercial achievements (Israel Railways, EU industrial PO), but management highlights customer concentration risk and the transitory nature of backlog as caution flags .

What Went Well and What Went Wrong

What Went Well
- Revenue inflection: Q1 revenues of $2.07M, largely from full recognition of ~$1.7M tied to a Fortune 500 medical company, lifting gross profit to $0.54M and gross margin to 26% .
- Commercial traction: partnerships and POs in transportation/industrial applications (Israel Railways; European industrial monitoring solution) support diversification beyond the legacy medical base .
- Strong liquidity amid uplisting: Uplisted to Nasdaq; completed a $23.7M gross offering; cash balance ~$37.2M at quarter-end enhances capacity to invest in growth .
- Quote: “We’re making important strides in building the technological and operational foundations that will support our long-term growth… Our successful uplisting to Nasdaq and recent capital raise mark major milestones…” — Einav Brenner, CFO .
What Went Wrong
- Profitability: Net loss widened to $4.27M (vs $3.16M Q1’24) with operating expenses up to $5.1M on expansion and uplisting-related one-time costs .
- Inventory impairment and COGS: Cost of revenues included ~$1.0M related to the medical contract and a $0.2M inventory impairment, capping gross margin at 26% .
- Concentration risk: Risk factors emphasize reliance on a single customer for a substantial portion of revenues, underscoring potential volatility in quarterly results .

Financial Results

P&L and Key Metrics by Quarter

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($)	$1.29M*	$1.30M*	$2.07M
Gross Margin (%)	31.35%*	35.35%*	26.05%
Operating Loss ($)	$(3.02)M*	$(3.76)M*	$(4.56)M
Net Loss ($)	$(2.87)M*	$(3.56)M*	$(4.27)M
Diluted EPS ($)	$(0.23)*	$(0.28)*	$(0.29)*
Cash & Equivalents ($)	$20.91M*	$18.16M	$36.88M

Values with an asterisk are retrieved from S&P Global and may reflect standardized definitions; see disclaimer at end.

Q1 2025 vs Prior Year (YoY) and Prior Quarter (QoQ)

Metric	Q1 2024	Q4 2024	Q1 2025
Revenue ($)	$0.19M*	$1.30M*	$2.07M
Net Loss ($)	$(3.16)M*	$(3.56)M*	$(4.27)M
Diluted EPS ($)	$(0.30)*	$(0.28)*	$(0.29)*
Gross Margin (%)	n/a	35.35%*	26.05%

Values with an asterisk are retrieved from S&P Global; see disclaimer at end.

Q1 2025 Actuals vs S&P Global Consensus

Metric	Consensus	Actual	Surprise
Revenue ($)	$0.30M*	$2.07M	+$1.77M / +588%
Diluted EPS ($)	$(0.12)*	$(0.29)*	−$0.17

Values with an asterisk are retrieved from S&P Global; see disclaimer at end.

Additional KPIs and Costs (Q1 2025)

Backlog: ~$14.8M as of March 31, 2025 .
Operating expenses: $5.1M (R&D $2.49M; S&M $0.40M; G&A $2.22M) .
Cost of revenues: $1.53M, including ~$1.0M related to medical contract and $0.2M inventory impairment .
Cash balance: ~$37.2M at March 31, 2025 .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Company guidance	2025/Q2 onward	Not provided	Not provided	n/a

Management did not provide quantitative guidance; commentary focused on commercial progress, backlog, and investments in growth .

Earnings Call Themes & Trends

No earnings call transcript was available for Q1 2025 in our document set. The following synthesis uses recent company press materials.

Topic	Previous Mentions (Q3 2024)	Previous Mentions (Q4 2024)	Current Period (Q1 2025)	Trend
Vertical shift to Aerospace/Industry 4.0	Highlighted large UAV agreement; backlog ~$16M .	Emphasized successful transition to Aerospace; planning SaaS model .	Continued traction; Israel Railways partnership; EU industrial PO .	Positive, expanding use-cases
Backlog	Record ~$16M at 9/30/24 .	~$15M at 12/31/24 .	~$14.8M at 3/31/25 .	Elevated, modestly lower q/q
Revenue drivers	Fortune 500 medical + Industry 4.0 .	Industry 4.0 cited for FY growth .	~$1.7M recognition from medical contract; Industry 4.0 contributions .	Mixed: one-time medical recognition plus ongoing I4.0
Liquidity/capital markets	July 2024 private placement $10.3M .	Cash $18.5M at YE; noted Feb 2025 offering .	Nasdaq uplisting; $23.7M gross raise; cash ~$37.2M .	Stronger balance sheet
Profitability/margins	Gross profit positive in 9M .	FY gross margin 29% .	GM 26% with inventory impairment and contract COGS .	Variable; investment phase
Risk/compliance/macro	Customer concentration; Israel geopolitical risks .	Similar risk set .	Similar; single-customer reliance; geopolitical/macro .	Risks persistent

Management Commentary

Strategic posture: “We’re making important strides in building the technological and operational foundations that will support our long-term growth… These achievements not only strengthen our balance sheet, but also enhance our visibility, credibility and access to global customers and investors.” — Einav Brenner, CFO .
Sector focus: “Our successful shift from the medical sector to the high-value aerospace sector is already yielding positive results… Our next step is to offer… on a SaaS model.” — Yehu Ofer, CEO (FY24 release, contextual to Q1 trajectory) .

Q&A Highlights

We did not locate a Q1 2025 earnings call transcript in the document set; no Q&A highlights are available from a call. Key clarifications instead came from the press release (one-time revenue recognition; operating expense drivers; cash position) .

Estimates Context

Coverage was thin: 1 estimate each for revenue and EPS in Q1 2025; actuals vs consensus were mixed — revenue beat ($2.07M vs $0.30M*), EPS missed (−$0.29* vs −$0.12*) as higher operating expenses and one-time costs outweighed revenue upside .
Implications: Models likely need to reflect volatility from customer concentration and contract timing; backlog supports medium-term visibility but is not a direct proxy for revenue timing .

Values marked with an asterisk are retrieved from S&P Global.

Key Takeaways for Investors

Revenue acceleration was largely one-time in nature (medical contract recognition), while core Industry 4.0/Aerospace execution continues to build commercial proof points .
EPS missed consensus despite the top-line beat due to elevated operating expenses (growth investments, uplisting costs) and inventory impairment; profitability remains a medium-term objective .
Liquidity is a clear strength post-uplisting, providing runway for product development, market entry, and potential SaaS transition .
Backlog remains sizable (~$14.8M), but management cautions backlog is not a profitability or timing measure; cancellations/delays are possible .
Concentration risk is material; diversification efforts (railways, industrial, aerospace programs) are strategically important to smooth revenue cadence .
With limited Street coverage (single estimate), prints can be volatile; near-term stock reactions likely hinge on incremental contracts/backlog conversion and margin trajectory disclosures .

References and data sources:

Q1 2025 Form 8-K press release and financial statements .
FY 2024 Form 8-K press release .
9M 2024 Form 8-K press release .

S&P Global disclaimer: Values marked with an asterisk (*) are retrieved from S&P Global consensus/standardized datasets (GetEstimates/GetFinancials) and may reflect standardized definitions that differ from company-reported presentations.

Odysight.ai Inc. (ODYS)·Q1 2025 Earnings Summary