Executive Summary

Q3 2025 revenue was $8.8M, down vs $9.5M YoY, while gross profit rose to $3.0M from $2.0M, and loss from operations improved to $0.591M vs $0.787M YoY as the company prioritized more profitable revenue and continued cost-reduction initiatives .
Operational momentum included a new higher-education customer in Wisconsin, expansion at a major Texas medical center, eight new MLPI deployments across airports/healthcare/business complexes, and automation implemented at CMX Airport, broadening use cases for vehicle recognition and access control .
Strategic transformation continued: sale of legacy assets removed ~63% of total pre-sale debt, improved equity deficit by ~75% and supported positive operating cash flow in H1 2025; management emphasized a leaner, focused portfolio around AI and smart automation .
Guidance was not issued in the Q3 materials; Street consensus (S&P Global) was unavailable for revenue and EPS, limiting estimates-based comparison; near-term stock catalysts center on execution and contract wins in education, healthcare, and airports, plus ongoing margin improvement and balance sheet repair .

What Went Well and What Went Wrong

What Went Well

Gross profit expanded to $3.0M from $2.0M YoY, reflecting operational efficiency and margin focus; CEO highlighted “practical innovation” and thanked employees, customers, and investors for continued trust .
New wins and expansions: a Wisconsin public research university selected OMNIQ for advanced access control and parking automation; a leading Texas medical center expanded deployments for access control and mobile vehicle recognition .
Eight new MLPI deployments across airports, healthcare systems, and business complexes demonstrate growing demand for flexible, secure, AI-based enforcement and mobility analytics .

What Went Wrong

Revenue declined 7.4% YoY to $8.8M due to timing of orders and focus on higher-margin business, indicating top-line pressure amid portfolio optimization .
No EPS was disclosed for Q3 2025 in the press release; lack of formal guidance and absent Street consensus reduce external visibility and benchmarking for investors .
Despite improvement, operations remained loss-making with a $0.591M operating loss; continued execution is required to translate efficiency gains and divestiture benefits into sustained profitability .

Financial Results

Note: Some prior period figures were reclassified due to the sale of a legacy division and discontinued operations accounting; H1 2025 disclosures reflect adjusted/continuing operations, limiting direct comparability to pre-sale quarters .

Revenue, EPS, and Margins vs Prior Periods and Estimates

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025	Consensus (Q3 2025)
Revenue ($USD Millions)	$9.5	$19.9	N/A	$8.8	N/A*
Gross Profit ($USD Millions)	$2.0	N/A	N/A	$3.0	N/A*
Operating Income ($USD Millions)	-$0.787	-$0.690	N/A	-$0.591	N/A*
Diluted EPS (Continuing Ops, $)	N/A	N/A	N/A	N/A	N/A*

Values with asterisk are retrieved from S&P Global; consensus data was unavailable for OMQS.

Margin Metrics

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Gross Margin %	21.1% (calc: $2.0 / $9.5)	N/A	N/A	34.1% (calc: $3.0 / $8.8)
Operating Margin %	-8.3% (calc: -$0.787 / $9.5)	-3.5% (calc: -$0.690 / $19.9)	N/A	-6.7% (calc: -$0.591 / $8.8)

Segment/Vertical Activity (no revenue breakdown disclosed)

Segment/Vertical	Q3 2024	Q2 2025	Q3 2025
Higher Education	N/A	N/A	New Wisconsin university access-control project
Healthcare	N/A	N/A	Major Texas medical center expansion (access control + MLPR)
Airports	N/A	N/A	CMX Airport parking operations automated
MLPI Deployments	N/A	N/A	Eight additional MLPI deployments nationally

KPIs (operational)

KPI	Q3 2024	Q2 2025	Q3 2025
New MLPI Vehicles Deployed	N/A	N/A	8
Notable New/Expanded Customers	N/A	N/A	Wisconsin university; Texas medical center; CMX Airport

Guidance Changes

No formal quantitative guidance (revenue, margins, OpEx, OI&E, tax rate, or dividends) was provided in Q3 materials; management reiterated focus on cost reduction and margin performance .

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	Q4 2025 / FY 2025	None disclosed	None disclosed	Maintained (no guidance)
Gross Margin	Q4 2025 / FY 2025	None disclosed	None disclosed	Maintained (no guidance)
OpEx	Q4 2025 / FY 2025	None disclosed	Continued cost-reduction focus	Maintained qualitative focus
Dividends	FY 2025	None disclosed	None disclosed	Maintained (no guidance)

Earnings Call Themes & Trends

No Q3 2025 earnings call transcript was found in the document catalog; themes below reflect disclosures across Q1–Q3 press releases .

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q3 2025)	Trend
AI/Technology initiatives	Emphasis on smart automation and AI-driven products; divestiture sharpened focus	New AI access-control and MLPI deployments across education, healthcare, airports	Strengthening adoption and use cases
Cost structure & margins	SG&A down 31%; gross margin to 26%; H1 2025 turnaround	Gross profit up YoY; continued margin/efficiency focus	Ongoing improvement
Balance sheet & debt	Legacy asset sale eliminated ~63% debt; APIC treatment of gain; equity deficit down ~75%	Continued narrative of improved financial strength; operations more efficient	More resilient balance sheet
End-market diversification	Q1 noted traction across transportation, healthcare, education, municipal	Wins in university, medical center, rural airport; MLPI across multiple sectors	Broader customer base
Discontinued operations	H1 reclassification following asset sale; positive operating cash flow	Not directly reiterated in Q3 PR; still a backdrop for comparability	Reclassification effects linger

Management Commentary

“I am proud of our team for their continued effort and discipline throughout the quarter… introducing new use cases… focusing on practical innovation that brings measurable value” — Shai Lustgarten, CEO .
“We’ve reshaped omniQ into a stronger, more focused business… balance sheet is healthier, core operations are profitable… solid foundation for responsible growth” — Shai Lustgarten, CEO (H1/Q2 update) .
“This transaction is a transformative step forward… focus on Smart Automation and AI… strengthening our financial position…” — Shai Lustgarten, CEO (legacy asset sale) .

Q&A Highlights

No Q3 2025 earnings call transcript or Q&A was available in the catalog; therefore, no Q&A highlights or clarifications could be extracted [Search attempt showed no transcript].

Estimates Context

S&P Global consensus estimates for Q3 2025 were unavailable for OMQS (both revenue and EPS). Values retrieved from S&P Global.

Metric	Q3 2025 Consensus
Revenue ($USD Millions)	N/A*
Primary EPS ($)	N/A*
Primary EPS – # of Estimates	N/A*
Revenue – # of Estimates	N/A*

Values retrieved from S&P Global.

Key Takeaways for Investors

Margin and efficiency execution is showing up in results: gross profit up YoY and operating loss narrowed, despite a smaller, more profitable revenue mix .
Commercial traction across education, healthcare, and airports demonstrates broad applicability and growing demand for OMNIQ’s AI access control and mobile recognition solutions .
The legacy asset sale and debt elimination materially improved the balance sheet and equity position, supporting future investment in core AI and automation segments .
Limited external visibility: lack of formal guidance and unavailable consensus estimates constrain benchmarking; monitoring contract flow and margin trends is key in the near term .
Operational deployments (eight MLPI vehicles, new university and medical center projects) are tangible growth drivers that can support recurring revenue and services penetration over time .
Comparability caveat: H1 2025 figures were adjusted due to discontinued operations; investors should normalize analyses for post-divestiture continuing operations .
Near-term focus: sustained margin improvement, disciplined cost management, and converting the expanding installed base into higher-quality, recurring revenue streams; medium-term thesis rests on scaled adoption of AI-driven access control and mobility analytics .

OMNIQ Corp. (OMQS)·Q3 2025 Earnings Summary