Odysight.ai Reports 77% Revenue Growth to $2.427 Million in Latest 10-Q Filing

Odysight.ai Inc. reported significant financial developments in its latest 10-Q filing for the six months ending June 30, 2025. The company generated revenues of $2.427 million, marking a 77% increase from $1.368 million in the same period last year. This growth was primarily attributed to the derecognition of a contract liability associated with a Fortune 500 medical company, which amounted to $1.690 million, and an increase in revenues from its vision-based platform solutions for predictive maintenance and condition-based monitoring. However, the company also faced challenges, including a decrease in unit sales to the aforementioned medical client due to the absence of a purchase order for 2025.

The cost of revenues rose to $1.756 million, a 63% increase from $1.077 million in the prior year, largely due to the derecognition of a fulfillment asset and an inventory impairment of $203,000. As a result, gross profit for the period was $671,000, reflecting a 131% increase compared to $291,000 in the previous year. Despite this improvement in gross profit, Odysight.ai reported an operating loss of $8.998 million, up 57% from a loss of $5.728 million in the same period last year, driven by increased research and development, sales and marketing, and general administrative expenses.

Operationally, the company has been expanding its workforce and investing in research and development, with expenses in this area rising to $4.843 million, a 63% increase from $2.975 million in the previous year. Sales and marketing expenses also surged by 123% to $1.024 million, reflecting efforts to penetrate new markets and enhance product visibility. General and administrative expenses increased by 47% to $3.802 million, driven by higher payroll costs and expenses related to the company's recent public offering and Nasdaq listing.

As of June 30, 2025, Odysight.ai reported total assets of $36.559 million, up from $23.679 million at the end of 2024, primarily due to increased cash and cash equivalents, which rose to $32.910 million from $18.164 million. The company’s accumulated deficit also increased to $54.314 million from $45.974 million. The backlog of orders stood at approximately $14.4 million, indicating a stable demand for its products, although this was a slight decrease from $15.0 million at the end of 2024.

Looking ahead, Odysight.ai anticipates continued investment in research and development and marketing efforts, which may lead to increased expenses. The company believes its current cash reserves will support operations for at least the next 12 months, but it may need to seek additional funding to sustain growth and achieve profitability. The ongoing geopolitical situation in Israel has not materially impacted operations, although it has caused some minor disruptions. The company remains optimistic about the potential for increased interest in its technology from Israeli clients, particularly in the defense sector, as a result of heightened military activity.