Mobilicom Limited: An Underfollowed Drone Player Positioned for Major Upside in 2025 and Beyond!
Article #8
Summary
MOB is on the verge of a major inflection point, with two high-potential programs about to ramp up, potentially generating tens of millions in annual revenue.
Validated by key defense industry players, including two near-term "Program of Record" designations, positioning MOB for substantial growth in the next few quarters.
An ~$11.5M market cap, with $8.6M in cash — effectively trading near cash value despite high-growth potential.
Strong gross margins near 60% with further upside through cross-selling cybersecurity software, which come with 90% margins, driving both sales and margin expansion.
The company is uniquely positioned in a rapidly growing sector with limited competition and a clear path to profitability.
Intro
Mobilicom is a new name for us — introduced by Tim Weintraut over at AlphaWolf Capital — so credit where it’s due, and if you want to learn more check out his interview with Mobilicom here. Tim has a strong track record in the drone space and was instrumental in getting us into both UMAC and RCAT ahead of their big moves. That being said, we think Mobilicom (MOB) could be the next drone company in line for an outsized run.
Mobilicom is an Israeli company that went public in an unconventional way: through a reverse merger with a small Australian firm. While we’re not fans of that path to the public markets, we do like the business — and more importantly, the opportunity — both in the near and mid-term. And hey, at least it wasn’t a SPAC. So, what does Mobilicom actually do, and why should you care?
Mobilicom provides end-to-end cybersecurity and communication solutions for drones, robotics, and autonomous platforms. It’s a rapidly growing niche, and a critically important one — especially when you consider how real the risk of hacking becomes in these use cases. If you’re operating a kamikaze drone, the last thing you want is for it to be hijacked. And if you're building robotics, securing both the software and hardware layers is non-negotiable.
CEO Oren Elkayam, like many Israelis, completed his mandatory service in the IDF. But Oren was selected for an elite engineering unit in the Israeli Air Force, where he worked on cutting-edge problems involving drones and cybersecurity. After completing his service, he launched Mobilicom to commercialize his expertise — and the company has been steadily building a leadership position ever since.
We believe Mobilicom has established a meaningful first-mover advantage at the intersection of cybersecurity software and “hardened” drone hardware. The company is pushing to become a “end-to-end” provider of hardened drone components, hardware with an added cybersecurity component, with a strong focus on key control hardware and cybersecurity. Notably, MOB recently earned a place on the U.S. government's “Blue List” — a vetted group of defense vendors approved for use in critical infrastructure, with no supply chain exposure to adversarial nations. That alone opens the door to a wide range of early-stage defense programs in the U.S. and allied countries.
We believe that two government programs are on the verge of ramping to meaningful volumes. While the timing is always uncertain with government contracts, we’re confident MOB will land both deals — and likely more to follow. What really got us excited was the company’s strategy around end-to-end integration, increasing share of wallet, and cross-selling — which we’ll dig into that later.
US Drone Opportunity
Back in 2020, the U.S. began pivoting its drone procurement strategy away from “adversary” nations and toward allied partners, driven by growing concerns over cybersecurity and physical security risks. That year, the Department of the Interior implemented restrictions on purchasing drones from adversarial nations — a move that marked the start of a broader strategic shift away from Chinese-made drones. The impact was immediate and significant, as shown in the chart below.
Source: GAO Report: Federal Lands: Effects of Interior’s Policies on Foreign-Made Drones