Odysight.ai Reports 1,004% Revenue Growth to $2.065 Million in Latest Quarter

Odysight.ai Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending March 31, 2025. The company generated revenues of $2.065 million, marking a substantial increase of 1,004% compared to $187,000 in the same period last year. This surge in revenue was primarily attributed to the derecognition of a contract liability associated with a Fortune 500 medical company, which amounted to $1.690 million, as well as increased sales from its vision-based platform solutions for predictive maintenance and condition-based monitoring.

Despite the revenue growth, Odysight.ai experienced an operating loss of $4.560 million, which represents a 36% increase from the operating loss of $3.364 million reported in the first quarter of 2024. The rise in operating loss was driven by increased expenses across several categories, including research and development, sales and marketing, and general and administrative costs. Research and development expenses rose by 59% to $2.487 million, reflecting the company's ongoing investment in product development and recruitment of new personnel. General and administrative expenses also increased by 65% to $2.215 million, largely due to hiring a new CFO and costs associated with the company's recent public offering.

In terms of operational metrics, Odysight.ai's backlog as of March 31, 2025, was approximately $14.8 million, slightly down from $15.0 million at the end of 2024. The company reported a cash and cash equivalents balance of $37.207 million, a significant increase from $18.164 million at the end of the previous fiscal year. This increase was largely due to a public offering completed in February 2025, which raised approximately $23.7 million in gross proceeds. The company’s employee headcount has also grown, reflecting its expansion efforts and increased operational capacity.

Strategically, Odysight.ai has made notable organizational changes, including the incorporation of a new subsidiary in Italy and the establishment of a local representative in Israel to enhance its presence in the defense market. The company’s common stock began trading on the Nasdaq Capital Market under the symbol "ODYS" in February 2025, transitioning from the OTCQB market. These developments are part of Odysight.ai's broader strategy to penetrate new markets and enhance its product visibility, particularly in the aerospace and medical sectors.

Looking ahead, Odysight.ai anticipates continued investment in research and development, which may lead to increased expenses as the company scales its operations and develops new products. Management believes that the existing cash resources will support operations for at least the next 12 months, although additional funding may be necessary to sustain growth and achieve profitability. The company remains optimistic about its market position and the potential for increased demand for its innovative solutions, particularly in light of heightened interest from Israeli government agencies and defense sectors due to ongoing geopolitical developments.