Odysightai (ODYS) AI Stock Analysis

• Market Cap: $62.15M
• Dividend Yield: N/A
• Average Volume (3M): 18.14K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.33
• 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: 16,355,244
• 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: 0.82
• Enterprise Value/Revenue: 13.12
• Enterprise Value/Gross Profit: 44.06
• Enterprise Value/Ebitda: -2.93
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: $4.00 ▲(30.72% Upside)

Overall score is pulled down mainly by weak financial performance (shrinking TTM revenue, extremely large losses, and persistent cash burn). Offsetting factors include a low-leverage balance sheet and a positive corporate update (recent funding, debt-free position, and signed contracts), while technicals show only modestly improving momentum and valuation remains constrained by negative earnings.

Positive Factors

Low leverage and cash buffer after capital raise

A substantial $23.7M raise that left Odysightai debt-free with ~ $26M cash materially improves financial flexibility. This cushion supports continued R&D, prototype-to-production transitions, and execution of multi-year aerospace/defense contracts without immediate reliance on expensive debt or dilutive financings.

Meaningful signed contracts and platform deployments

Signed contracts exceeding $14M and repeat, platform-level deployments indicate commercial validation and revenue backlogs that can smooth future growth. Durable relationships with defense and aerospace OEMs create higher switching costs and can translate into multi-year revenue streams if Odysightai converts pilots into production contracts.

Proprietary sensors validated in harsh environments

Demonstrated survivability of miniature optical sensors in extreme thermal and oil-immersed conditions validates patented technology and expands addressable markets (aerospace, rotary-wing, energy, heavy industry). Durable product differentiation supports licensing, OEM integration, and higher margins over time if scaled.

Negative Factors

Declining revenue with deep operating losses

A sustained revenue pullback combined with losses several times revenue signals weak unit economics and execution gaps. Structural recovery requires consistent top-line growth and margin expansion; until achieved, losses undermine return on invested capital and make shareholder value creation uncertain over the medium term.

Persistent negative cash flow and ongoing cash burn

Repeat negative operating and free cash flow of roughly $12.5M TTM creates funding dependence despite low leverage. Continued burn increases the likelihood of future equity raises or dilution, constrains strategic optionality, and puts pressure on management to achieve meaningful operational breakeven within a multi-quarter horizon.

Lengthy aerospace and defense sales cycles

Long procurement and qualification timelines in aerospace/defense delay revenue recognition from pilots to production, extend payback periods on R&D, and increase working capital needs. This structural sales cadence magnifies execution risk and requires disciplined commercialization to convert technical wins into recurring enterprise revenues.

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

Odysightai shows strong revenue growth but struggles with profitability, as indicated by negative net income and EBIT margins. The balance sheet is solid with low leverage, but cash flow issues persist, highlighting the need for improved operational efficiency and cost management.

Income Statement

Odysightai has shown significant revenue growth over the years, with a notable increase from $309,000 in 2019 to $3,964,000 in 2024. However, the company is struggling with profitability, as indicated by negative net income and EBIT margins. The gross profit margin has improved but remains low, reflecting challenges in cost management and operational efficiency.

Balance Sheet

The balance sheet shows a strong equity position with a debt-to-equity ratio consistently below 0.1, indicating low leverage. However, the company has a history of negative net income, which affects return on equity. The equity ratio is robust, suggesting financial stability, but the company needs to improve profitability to enhance shareholder value.

Cash Flow

Odysightai's cash flow statement reveals consistent negative free cash flow, indicating challenges in generating cash from operations. The operating cash flow to net income ratio suggests inefficiencies in converting revenue into cash. Despite positive financing cash flows, the reliance on external funding raises concerns about long-term sustainability.

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: Positive
• Last Price: 3.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 3.06 is below the 20-day moving average (MA) of 3.31, below the 50-day MA of 3.30, and below the 200-day MA of 4.41, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 60.51 is Neutral, neither overbought nor oversold. The STOCH value of 74.94 is Neutral, 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
SOTK	62 Neutral	$66.28M	44.00	8.45%	―	-0.21%	-0.41%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CPSH	60 Neutral	$65.08M	-89.16	-3.84%	―	38.22%	70.68%
ELTK	59 Neutral	$59.77M	52.90	2.70%	2.16%	2.54%	-79.99%
ODYS	52 Neutral	$62.15M	-3.47	-65.21%	―	-15.76%	-25.27%
NEON	49 Neutral	$31.89M	3.55	38.72%	―	-48.54%	―
OPTX	48 Neutral	$128.48M	-42.86	-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.