Odysight.ai Inc.

What they do

Odysight.ai develops and markets an AI-driven visual monitoring platform that uses small visual sensors to monitor critical safety components in hard-to-reach or harsh environments. Its solution streams visual data to an in-platform AI/ML computer, analyzes it on a secure cloud, and provides real-time failure detection and predictive maintenance alerts. The company operates in both civil and defense sectors and counts the Israeli Air Force, Israeli Ministry of Defense, NASA, Boeing, Honeywell Aerospace, and Israel Railways as customers. Historically, its revenue came mainly from the medical sector, but it has shifted focus to aerospace, defense, and industrial applications.

Revenue drivers

• Aerospace and Defense OEM orders — Growth driven by direct purchase orders from Boeing (received August 2026) and a Honeywell Aerospace APU proof-of-concept, with revenue recognized as program milestones are met.
• Defense ministry and military contracts — Ongoing orders from Elbit Systems on behalf of the Israeli Ministry of Defense and prior work with the Israeli Air Force; deployed solutions for defense platforms provide contracted project revenue.
• Government and research agreements — CRADA with the U.S. Navy's NAWCAD and prior NASA projects (e.g., Robotic Refueling Mission RRM3) generate development funding and validation contracts.
• Industrial and infrastructure customers — Commercial deployments with Israel Railways and a leading European elevator monitoring provider, representing smaller, recurring or one-off project revenue.

Recent performance

For the first half of 2026, Odysight.ai reported revenue of $0.5 million and a net loss of $9.5 million. Quarterly revenue in the first half of 2026 was $82,000 (Q1) and $420,000 (Q2), up from $149,000 and $439,000 in the prior two quarters. The company ended Q2 2026 with approximately $17.6 million in cash and no debt. Annual revenue declined from $4.0 million in 2024 to $3.0 million in 2025, while net loss widened from $11.8 million to $17.0 million.

Strategy

Management is focused on converting high-profile pilots and proof-of-concept orders into broader, multi-platform OEM relationships, particularly with Boeing and Honeywell. The company is expanding into U.S. defense through CRADA partnerships and test flights on U.S. platforms like the UH-60 Black Hawk. It continues to build commercial presence in U.S. and European markets, investing in deliveries and commercial activities. Management also cited implementing efficiency steps starting in Q1 2026 to offset currency exchange rate effects. The company listed on the Nasdaq Capital Market (February 2025) and the Tel Aviv Stock Exchange (April 2026) to broaden access to capital.

Risks

• Customer concentration — Revenue is tied to a small number of customers (Israeli Air Force, defense ministries, OEMs), and a loss of any one could materially impact results.
• Long sales cycles — The company's own disclosures highlight long and unpredictable sales cycles, which can delay revenue recognition and cause quarterly volatility.
• Geopolitical and regional exposure — Operations are substantially based in Israel, and the ongoing war in the Middle East, despite an October 2025 framework, poses risks to operations and timelines.
• Limited cash runway — With $17.6 million cash and operating cash burn of $13.7 million in 2025, the company may require additional capital before achieving meaningful revenue scale.

Outlook

Backlog increased to $16.45 million as of the August 2026 earnings release, up from $14.1 million at June 30, 2026. Management expects first-half 2026 revenue was timing-related and expects second-half revenue to be weighted heavier as existing orders convert to deliveries. Boeing order revenue is expected to be recognized over the next twelve months as milestones are met. The company expects to deliver the NAWCAD CRADA project in the coming months with potential expansion into additional platforms.