Odysightai (ODYS) AI Stock Analysis

• Market Cap: $115.66M
• Dividend Yield: N/A
• Average Volume (3M): 18.14K
• Price to Earnings (P/E): 47.7
• Beta (1Y): 0.26
• Revenue Growth: -15.76%
• EPS Growth: -25.27%
• Country: US
• Employees: 61
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): N/A
• Shares Outstanding: 16,359,410
• 10 Day Avg. Volume: 36,627
• 30 Day Avg. Volume: 18,142
• PEG Ratio: 4.16
• Price to Book (P/B): 2.06
• Price to Sales (P/S): 17.40
• P/FCF Ratio: -3.81
• Enterprise Value/Market Cap: 0.78
• Enterprise Value/Revenue: 30.10
• Enterprise Value/Gross Profit: 104.18
• Enterprise Value/Ebitda: -5.04
• 1Y Price Target: $10.00
• Price Target Upside: 41.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: $6.50 ▼(-8.06% Downside)
• Action: Reiterated Date: 03/20/26
• Date: Action: Reiterated 03/20/26

The score is held back primarily by weak financial performance driven by heavy operating losses and persistent negative cash flow. Offsetting this, technicals are strong (broad uptrend with positive momentum), and a positive corporate update (debt-free, increased cash runway, and signed contracts) improves near-term positioning. Valuation remains a headwind given the high P/E and no dividend.

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

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Odysightai Financial Statement Overview

Summary

Overall fundamentals remain high-risk: income statement performance is weak with small/volatile revenue and large operating losses, while cash flow is persistently negative and worsened in 2025. The balance sheet is a relative strength with very low leverage and improved equity, but the ongoing cash burn weighs heavily on financial quality.

Income Statement

Revenue remains small and volatile, with 2025 annual revenue down ~22% after growth in prior years. Profitability is still structurally weak: gross margin improved to ~29% in 2024–2025 (from negative levels in 2020–2022), but operating losses remain very large relative to sales (EBITDA margin deeply negative in 2025). Net income flipped to a positive $1.1M in 2025 after sizable losses in 2020–2024, but the gap between net income and operating losses suggests earnings quality is not yet supported by core operations.

Balance Sheet

The balance sheet is a relative strength: leverage is very low (debt-to-equity ~3% in 2025; ~6% in 2024), providing financial flexibility. Equity increased meaningfully in 2025, and return on equity turned modestly positive (~4%) after several years of deeply negative returns. Key weakness is that despite low debt, ongoing losses and cash burn (seen in cash flow) can pressure the equity base over time if not reversed.

Cash Flow

Cash generation is the biggest concern. Operating cash flow and free cash flow are consistently negative across all years, and the cash burn worsened in 2025 (operating cash flow about -$13.7M vs. -$8.2M in 2024). While free cash flow showed a year-over-year improvement rate in 2025, it remains materially negative, indicating the business is still funding operations externally rather than self-financing.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.02M	3.96M	3.03M	665.00K	387.00K
Gross Profit	871.00K	1.16M	509.00K	-966.00K	-721.00K
EBITDA	-18.14M	-12.38M	-10.35M	-9.19M	-9.00M
Net Income	1.10M	-11.77M	-9.45M	-9.47M	-8.99M
Balance Sheet
Total Assets	28.98M	23.68M	22.83M	16.89M	23.55M
Cash, Cash Equivalents and Short-Term Investments	25.68M	18.16M	17.04M	13.15M	19.59M
Total Debt	770.00K	1.05M	1.33M	263.00K	459.00K
Total Liabilities	3.55M	5.43M	5.02M	5.11M	3.93M
Stockholders Equity	25.43M	18.24M	17.81M	11.79M	19.62M
Cash Flow
Free Cash Flow	-13.76M	-8.27M	-10.12M	-6.21M	-6.48M
Operating Cash Flow	-13.70M	-8.22M	-10.01M	-6.09M	-5.89M
Investing Cash Flow	254.00K	7.64M	-5.11M	7.88M	-11.60M
Financing Cash Flow	21.14M	9.82M	13.81M	0.00	22.56M

Odysightai Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ODYS, the sentiment is Positive. The current price of 7.07 is above the 20-day moving average (MA) of 5.64, above the 50-day MA of 5.37, and above the 200-day MA of 4.36, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 76.70 is Negative, neither overbought nor oversold. The STOCH value of 89.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ODYS.

Odysightai Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ODYS	58 Neutral	$115.66M	47.70	-53.09%	―	-15.76%	-25.27%
SOTK	57 Neutral	$61.58M	42.86	8.53%	―	-0.21%	-0.41%
ELTK	54 Neutral	$60.27M	70.33	1.85%	2.16%	2.54%	-79.99%
NEON	52 Neutral	$23.50M	3.44	50.99%	―	-48.54%	―
CPSH	52 Neutral	$67.29M	110.94	2.42%	―	38.22%	70.68%
OPTX	49 Neutral	$245.15M	-10.01	-27.66%	―	-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.