OMNIQ Corp. reported third‑quarter 2025 revenue of $8.8 million, a 7.4 % decline from the $9.5 million earned in the same period last year. Gross profit rose to $3.0 million from $2.0 million YoY, lifting the gross‑margin percentage to 34 % from 21 %. Operating loss narrowed to $1.2 million versus $1.8 million a year earlier, reflecting the company’s ongoing cost‑reduction program.
The decline in top line was largely driven by a slowdown in legacy vehicle‑recognition contracts, while new wins offset the drop. OMNIQ secured a university contract in Wisconsin and a leading medical center, added eight mobile license‑plate inventory deployments, and launched an automation project at CMX Airport. These high‑margin, recurring‑revenue opportunities contributed to the higher gross profit and helped counterbalance the revenue dip.
Management attributes the margin expansion to disciplined cost controls and a shift toward higher‑margin AI and SaaS offerings. The company’s cost‑cutting initiatives—streamlining support functions, reducing discretionary spend, and divesting its legacy business division in Q2—have lowered operating expenses and improved operating leverage. The narrowed loss demonstrates that the company is successfully translating its strategic pivot into financial performance.
Despite the operational gains, OMNIQ remains under liquidity pressure. As of September 30, 2025, the company reported a working‑capital deficit of $11.8 million and acknowledged “substantial doubt about going concern.” The liquidity concerns underscore the need for continued cash‑flow generation from the new AI‑centric contracts.
CEO Shai Lustgarten said, “I am proud of our team for their continued effort and discipline throughout the quarter. We are introducing new use cases for our technology and focusing on practical innovation that brings measurable value to our customers.” He emphasized the company’s commitment to expanding its AI portfolio and securing additional high‑margin contracts, signaling confidence in the long‑term trajectory of the business.
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