Mobilicom Ltd. (MOB:NASDAQ) received a US$1.4 million (US$1.4M) order, seven times the typical value, from an existing customer, indicating this company in the drone and robot space is advancing into the next stage of its commercialization strategy, when repeat sales ramp up sharply, Chief Executive Officer (CEO) and Cofounder Oren Elkayam told Streetwise Reports in an August 14 interview.
"We anticipate that additional [larger orders] will come, based on that, in the coming, let's say, quarter or two," Elkayam said.
Mobilicom provides the critical technology that enables drones and robotics to operate, navigate, communicate, be safeguarded, and more. The company sells these end-to-end hardware, software, and cybersecurity solutions to the manufacturers of such autonomous systems, including suppliers to the U.S. Department of Defense (DOD).
"Mobilicom aims to be the Bosch or Continental for the small-sized drones/robotics space," Elkayam said, referring to how these two companies do not build cars but, rather, provide the most valuable components to individual vehicle manufacturers. "Mobilicom is unique because we are the sole vendor with this strategy."
The company's portfolio of field-proven products includes:
- SkyHopper SDR (Software Defined Radio) Data Links, delivering cybersecure, long-range communication solutions for robotic applications
- OS3 Platform Software, delivering real-time intrusion detection and prevention, automated response, and continuous resilience in tactical environments
- ICE (Immunity, Cybersecurity and Encryption) Suite, delivering artificial intelligence-powered cybersecurity for drones, robotics, and autonomous platform
- MCU Mesh Networking Series, delivering high-performance Software Defined Radios with advanced mesh networking for real-time, cybersecure, low-latency communication
- Mobile Ground Control Stations, delivering control and adaptability in drones and robotics operations
The company's newest products, the result of a recent partnership with Palladyne AI Corp. (PDYN:NASDAQ) will be two bundled solutions, Streetwise Reports reported last month. One combines Palladyne Pilot, which enables persistent object detection, tracking, and classification for unmanned aerial vehicles (UAVs) using multimodal sensor fusion, with Mobilicom's OS3, a multilayered cybersecurity system built for autonomous missions. The other solution pairs Mobilicom's OS3 with Palladyne IQ, which equips industrial robots and cobots with artificial intelligence (AI)-driven, human-like reasoning to operate autonomously in dynamic settings.
Mobilicom's revenue comes from hardware sales, software sales, licensing fees, and product support services.
Its customers are corporates, governments and military departments around the world. For instance, defense customers in 18 countries use SkyHopper, including Airbus, Rafael Advanced Defense Systems, Israel Aerospace Industries, the Israeli Ministry of Defense and increasingly, major U.S. drone manufacturers. In the States, Mobilicom is on the Department of Defense's Blue UAS list of approved vendors whose products are verified National Defense Authorization Act-compliant, cybersecure and safe for use in U.S. military programs.
Along with defense/military, the various commercial industries Mobilicom's customers serve include delivery and logistics, security and surveillance, infrastructure and utility inspection, mining and public safety.
"We are focusing on defense and commercial because those are experiencing high growth right now," Elkayam told Streetwise.
Given its low monthly burn rate of US$260,000, Mobilicom has sufficient funds to operate and execute its strategy to achieve cash flow positivity, Elkayam highlighted. As of June 30, the company had US$7M of cash on hand, no debt, no convertibles, and no credit lines. It expects additional funds as in-the-money warrants are executed.
As for Mobilicom's potential, because it is both a hardware, software, and cybersecurity company, the CEO noted it should be a combination of Unusual Machines Inc. (UMAC:NYSEAMERICAN), market cap US$306M, and Palladyne, market cap US$311M. The former is a pure-play hardware company, the latter a pure-play software firm. Unlike Unusual Machines and Palladyne, Mobilicom owns the intellectual property (IP) to all of its products and can capture market share in the market's hardware, software, and cybersecurity segments. As such, added Elkayam, it is better positioned to command a higher gross margin of 50–60%.
"Mobilicom is a rare opportunity in the small-cap drone space," Ben Rabizadeh, founder of StoryTrading, wrote in an email to Streetwise Reports two days after his Aug. 12 interview of Elkayam. "At just a US$30M market cap, it offers far more proprietary IP and technical expertise than other well-known peers like UMAC or Red Cat Holdings Ltd. (RCAT:NASDAQ). Everything they build is in-house — they're not resellers — and they've got a strong balance sheet with a clear path to near-term profitability."
Drone Use on the Rise
Growth is forecasted for the global drone market for at least the next 15 years. Between 2025 and 2030, it is projected to see a 13–14% compound annual growth rate (CAGR), more than doubling its size to nearly US$90 billion (US$90B) from US$42B, The Business Standard reported on Aug. 21. Beyond 2030, growth is expected to occur at a faster rate due to drone use becoming more prevalent in developed countries.
Demand from the defense industry primarily will drive growth as increasingly drones are being used in warfare and/or stockpiled for the purpose, given the many recent and ongoing geopolitical conflicts. Examples are the Russia-Ukraine War, the Israel-Iran War, the China-Taiwan conflict, U.S.-China tensions, the India-Pakistan conflict and more.
As well, governments have been increasing their defense budgets, in which UAVs are included. For instance, the U.S. requested a fiscal year 2026 budget of US$8.8B for unmanned and countermanned programs, which is 66% higher than last year's, according to BTIG's research published in July. Further, earlier this year, U.S. Secretary of Defense Pete Hegseth announced changes to the country's drone policies. "While our adversaries have produced millions of cheap drones . . . we were mired in bureaucratic red tape. Not anymore," Hegseth said. "In June, President Trump issued an executive order unleashing American drone dominance to bolster our drone industry and arm our warfighters." The order instructed the secretaries of numerous U.S. departments to take the outlined steps within the provided time frames to support and help develop the domestic drone industry.
Earlier this year, the European Union unveiled Readiness 2030, a plan to increase defense spending by €800. In June, members of the North Atlantic Treaty Organization agreed to increase defense spending to 5% from 2% of their country's economic output by 2035, reported The Washington Post on June 25.
"There is no denying that drones will have a ubiquitous presence in future warfare and aerial fights between rivals, owing to the fact that this small flying device is gradually turning into a force multiplier that could help countries achieve strategic objectives while blurring the lines between military-grade and commercial technologies," noted The Business Standard.
As for the global small drone market specifically, it is forecasted to nearly triple in size to US$21.2B by 2034 from US$7.7B in 2025, reflecting about a 12% CAGR, according to a July 17 Research and Markets report. Drone adoption in defense as well as agriculture, logistics and smart cities is fueling growth. Notable trends include drone delivery networks, autonomous technology and expanding regulations.
"Their affordability, ease of use and growing technological sophistication make them ideal for tasks that require agility and precision," the report noted. "From aerial photography and mapping to crop monitoring and delivery services, these versatile tools are reshaping traditional operations."
The Catalysts
Mobilicom has three key growth catalysts ahead, according to Elkayam.
One, the company expects increased demand from existing customers, taking it to a mass production phase.
Two, customers and business should result from Mobilicom being a Blue UAS-approved vendor.
Three, additional Mobilicom innovations and product offerings should contribute to growth.
MOB: An "Impact Stock," Undervalued
Tim Weintraut, CEO of Alpha Wolf Capital, noted in an Aug. 18 email to Streetwise Reports that Mobilicom's focus on cybersecurity is particularly compelling given the increasing importance of secure communications and data protection related to drones. He wrote that its Blue UAS Cleared listing and its work with several tier one suppliers to the DOD validate Mobilicom's products.
"This combination of technical leadership and industry endorsement makes Mobilicom uniquely poised for the coming wave of secure, intelligent drones and robotics, which is why we consider MOB an Impact Stock," Weintraut wrote. "Mobilicom stands out as an investment."
*John Newell of John Newell & Associates wrote in an Aug. 4 report that Mobilicom warrants a serious look by investors wanting leverage to drone autonomy and cyber defense. He recommended it as a Speculative Buy at current levels, at the time US$3.20 per share.
The stock was building bullish momentum that took it past the first target of US$3.20 per share, Newell noted. The second target is US$4.20, representing 8% upside from the share price at market close on Aug. 19. The third target, the previous high this year, is US$5, implying a 28% return.
"MOB is acting like a stock transitioning from accumulation to recognition," added Newell. "If support holds and volume stays strong, higher targets look achievable in the coming weeks and months."
Given Mobilicom has zero debt, a clean cap table, growing software margins, and exposure to real defense and industrial clients, noted Newell, its shares look undervalued, particularly with the chart showing early breakout signs.
StoryTrading's Rabizadeh agrees. "At current levels, we believe the stock is undervalued, with compelling upside potential and the possibility of hockey-stick growth ahead," he wrote.
Ownership and Share Structure
According to Refinitiv, about 11% of the company is owned by institutions, and the rest is retail.
Top shareholders include Bard Associates Inc. with 8.53%, UBS Financial Services Inc. with 0.67%, Morgan Stanley & Co. LLC with 0.63%, Ground Swell Capital LLC with 0.31%, and PFG Investments LLC with 0.24%, Refinitiv said.
Refinitiv reports that Mobilicom has 7.5 million shares outstanding and a market cap of US$30.43M. Its 52-week low and high are US$0.85 and US$5 per share, respectively.
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Important Disclosures:
- Universal Machines Inc. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Universal Machines Inc., Red Cat Holdings Inc., and Mobilicom Ltd.
- Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
- This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
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* Disclosure for the quote from the John Newell article published on August 4, 2025
- For the quoted article (published on August 4, 2025), the Company has paid Street Smart, an affiliate of Streetwise Reports, US$3,000.
- Author Certification and Compensation: [John Newell of John Newell and Associates] was retained and compensated as an independent contractor by Street Smart for writing this article. Mr. Newell holds a Chartered Investment Management (CIM) designation (2015) and a U.S. Portfolio Manager designation (2015). The recommendations and opinions expressed in this content reflect the personal, independent, and objective views of the author regarding any and all of the companies discussed. No part of the compensation received by the author was, is, or will be directly or indirectly tied to the specific recommendations or views expressed.
John Newell Disclaimer
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