Odysightai (ODYS) AI Stock Analysis

• Market Cap: $80.48M
• Dividend Yield: N/A
• Average Volume (3M): 18.14K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.34
• Revenue Growth: -15.76%
• EPS Growth: -25.27%
• Country: US
• Employees: 61
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.27
• Shares Outstanding: 16,357,327
• 10 Day Avg. Volume: 36,627
• 30 Day Avg. Volume: 18,142
• PEG Ratio: 4.08
• Price to Book (P/B): 5.37
• Price to Sales (P/S): 24.73
• P/FCF Ratio: -11.85
• Enterprise Value/Market Cap: 0.66
• Enterprise Value/Revenue: 13.59
• Enterprise Value/Gross Profit: 45.66
• Enterprise Value/Ebitda: -3.04
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.43
• Revenue Forecast (FY): $4.00M

• Rating: 52 Neutral
• Price Target: $6.50 ▲(71.05% Upside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

The score is held back primarily by weak financial performance—declining TTM revenue, very large losses, and ongoing cash burn—despite a low-debt balance sheet. Technicals are a meaningful positive with strong trend momentum, though currently overextended. Corporate events add support via improved liquidity and contract traction, while valuation remains unfavorable due to negative earnings.

Positive Factors

Low leverage and recent capital raise

A sizable $23.7M raise that left Odysightai debt-free with ~ $26M in cash materially improves financial flexibility. Low leverage reduces refinancing risk, supports continued product development and long sales cycles, and provides a runway to execute strategy without immediate dilution.

Contract traction in defense and aerospace

Meaningful signed contracts and repeat government/defense deployments evidence durable demand and credibility. Large, multi-year defense/space contracts support long-term revenue visibility, referenceability for new markets, and higher barriers to entry versus one-off commercial deals.

Diversified recurring and services revenue model

A mixed model of subscriptions plus project-based consulting and partner integrations yields recurring revenue while allowing high-margin custom work. Diversification across defense, industrial and transportation reduces end-market concentration and supports cross-sell over multi-quarter sales cycles.

Negative Factors

Declining revenue and sizable net losses

Falling revenue coupled with outsized net losses indicate the business has not yet achieved sustainable unit economics. Persistent negative profitability limits reinvestment capacity, increases reliance on external funding, and undermines long-term margin improvement absent structural cost or revenue inflection.

Persistent negative operating and free cash flow

Consistent cash burn of ~ $12M TTM erodes runway even after the recent raise. Negative FCF forces choices between aggressive fundraising, cost cuts, or slower growth; each option can impair execution or dilute shareholders, making cash generation improvement essential for durable viability.

Lengthy aerospace/defense sales cycles and execution risk

Long, complex defense and aerospace procurement cycles delay revenue recognition and require sustained investment in sales and product certification. This structural timing mismatch raises execution risk, increases working capital needs, and can lengthen the path to scalable margins.

Odysightai Business Overview & Revenue Model

Company Description

Odysight.ai Inc., together with its subsidiaries, develops, produces, and markets visual sensing and AI-based video analytics solutions in Israel, the United States, the United Kingdom, and internationally. The company, through its visualization technology offers solutions across predictive maintenance and condition-based monitoring markets in various sectors, such as medical, defense, energy, automotive, transportation, aviation, maritime, and industrial non-destructing-testing. Odysight.ai Inc. is based in Omer, Israel.

How the Company Makes Money

Odysightai generates revenue through a multi-faceted business model that includes software licensing, subscription fees, and consulting services. The company offers its AI-driven platforms on a subscription basis, allowing clients to access advanced analytics tools while providing ongoing updates and support. Additionally, ODYS provides custom development services tailored to specific client needs, charging project-based fees. Partnerships with key industry players, including technology firms and data providers, further enhance its revenue streams by facilitating integrated solutions that attract a broader client base.

Odysightai Financial Statement Overview

Summary

Mixed fundamentals: low leverage (debt-to-equity ~0.03) and rising equity support balance sheet flexibility, but profitability and cash flow are very weak. Revenue fell ~23% YoY in the latest TTM and losses remain extremely large relative to sales, while operating and free cash flow are materially negative, increasing funding/dilution risk if the trajectory doesn’t improve.

Income Statement

Revenue scaled up materially versus earlier years, but the latest TTM (Trailing-Twelve-Months) shows a meaningful pullback (about -23% year over year). Profitability remains very weak: gross margin is positive (~30%) yet operating and net losses are exceptionally large relative to sales (net loss roughly 3x revenue in TTM), indicating the cost structure is still far from breakeven. Losses have widened versus 2024 annual, highlighting execution risk and limited near-term operating leverage.

Balance Sheet

Leverage is low, with debt modest relative to equity (debt-to-equity ~0.03 in TTM), which reduces financial risk and provides flexibility. Equity has also increased versus prior years, supporting a stronger capital base. The key weakness is returns: losses drive deeply negative returns on equity in every period, meaning the balance sheet strength is not yet translating into shareholder value creation.

Cash Flow

Cash generation is consistently negative, with TTM operating cash outflow of about $12.5M and free cash outflow of about $12.6M, implying ongoing cash burn to fund operations. Free cash flow deterioration versus 2024 is evident in absolute dollars even if growth rates appear positive, and cash flow remains tied to persistent net losses (free cash flow roughly mirrors net income due to negative earnings). The main positive is that cash burn has not required high leverage, but continued outflows raise funding and dilution risk if not improved.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.88M	3.96M	3.03M	665.00K	387.00K	491.00K
Gross Profit	1.16M	1.16M	509.00K	-966.00K	-721.00K	-503.00K
EBITDA	-17.35M	-12.38M	-10.35M	-9.19M	-9.00M	-4.64M
Net Income	-16.31M	-11.77M	-9.45M	-9.47M	-8.99M	-4.67M
Balance Sheet
Total Assets	32.91M	23.68M	22.83M	16.89M	23.55M	5.89M
Cash, Cash Equivalents and Short-Term Investments	29.48M	18.16M	17.04M	13.15M	19.59M	3.37M
Total Debt	844.00K	1.05M	1.33M	263.00K	459.00K	107.00K
Total Liabilities	3.80M	5.43M	5.02M	5.11M	3.93M	1.93M
Stockholders Equity	29.11M	18.24M	17.81M	11.79M	19.62M	3.96M
Cash Flow
Free Cash Flow	-12.57M	-8.27M	-10.12M	-6.21M	-6.48M	-4.46M
Operating Cash Flow	-12.52M	-8.22M	-10.01M	-6.09M	-5.89M	-4.19M
Investing Cash Flow	-56.00K	7.64M	-5.11M	7.88M	-11.60M	-276.00K
Financing Cash Flow	21.02M	9.82M	13.81M	0.00	22.56M	4.51M

Odysightai Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ODYS, the sentiment is Neutral. The current price of 3.8 is below the 20-day moving average (MA) of 5.61, below the 50-day MA of 4.53, and below the 200-day MA of 4.32, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 46.44 is Neutral, neither overbought nor oversold. The STOCH value of 2.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ODYS.

Odysightai Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPSH	64 Neutral	$77.49M	-110.10	-3.84%	―	38.22%	70.68%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SOTK	57 Neutral	$64.73M	43.46	8.45%	―	-0.21%	-0.41%
NEON	56 Neutral	$29.54M	3.36	38.72%	―	-48.54%	―
ODYS	52 Neutral	$80.48M	-4.54	-65.21%	―	-15.76%	-25.27%
ELTK	51 Neutral	$58.96M	51.50	2.70%	2.16%	2.54%	-79.99%
OPTX	49 Neutral	$235.92M	-85.84	-27.25%	―	-44.83%	-296.14%

Odysightai Corporate Events

Odysightai CEO Letter Highlights Growth and Strategic Progress

On January 5, 2026, Odysight.ai released a CEO letter to shareholders highlighting a pivotal year marked by a February 2025 uplisting to Nasdaq, a concurrent $23.7 million capital raise that left the company debt-free with roughly $26 million in cash, and over $14 million in signed contracts that underscore growing demand for its technology. The company reported expanding adoption of its systems across key aerospace platforms—including fleet-level rotorcraft orders from the Israeli Air Force, a contract of more than $10 million with a top global defense firm for UAV systems, deployments on Israel’s Heron TP UAV and repeat business from NASA—as well as measured diversification into rail, elevator safety, mining trucks and military APCs, supported by new subsidiaries in the U.S. and EU. Management acknowledged challenges such as lengthy aerospace and defense sales cycles and the need for strategic focus, but presented these developments as strengthening Odysight.ai’s operational footing, market credibility and long-term growth positioning in fast-growing defense and industrial AI markets.

The most recent analyst rating on (ODYS) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Odysightai stock, see the ODYS Stock Forecast page.

Odysightai CEO Employment Agreement Amended

On December 4, 2025, Odysight.ai Ltd. announced an amendment to the employment agreement with its CEO, Mr. Yehu Ofer, which includes a salary increase and revised incentive and termination provisions. The amendment, effective November 2025, raises Mr. Ofer’s monthly salary to NIS 99,000 and introduces performance-based bonuses and stock options starting in 2026, potentially impacting the company’s leadership stability and strategic direction.

The most recent analyst rating on (ODYS) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Odysightai stock, see the ODYS Stock Forecast page.

Odysightai Stockholders Approve Key Proposals in Meeting

On December 2, 2025, Odysightai held its annual meeting of stockholders, where several key proposals were voted on. During the meeting, stockholders elected Carlo Papa, Nir Nimrodi, and Zeev Vurembrand as Class I directors. They also approved executive compensation on an advisory basis and decided to hold future advisory votes on executive compensation every three years. Additionally, an amendment to increase the reservation of common stock for the 2024 Share Incentive Plan was approved, and the appointment of Brightman Almagor Zohar & Co. as the independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified.

The most recent analyst rating on (ODYS) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Odysightai stock, see the ODYS Stock Forecast page.