Mobilicom Ltd. (MOB:NASDAQ) is quickly gaining exposure in the U.S. and may not stay an "undiscovered" story for much longer, Larry Sine, analyst at Litchfield Hills Research, reported in an Aug. 25 research note. The company is a high-margin provider of mission-critical drone software, hardware, and services.
"We believe that Mobilicom sits at the nexus of a defense tech supercycle," Sine wrote. "With its unique Pentagon-approved technology, growing blue chip customer base, and surging global demand for drones, we believe that the company is positioned for a breakout that could make today's valuation look like an anomaly."
The Business Model
Mobilicom's drone products include three software platforms and three hardware products, including controllers, communications radios and a breakthrough mesh networking module allowing for coordinated drone swarms, Sine noted. Services revolve around integration and support.
The company supplies major drone defense contractors around the world: Israel Aerospace Industries, Elbit Systems, and Rafael Advanced Defense Systems in Israel, Singapore Technologies Pte. Ltd. in Asia, and Airbus in Europe. In the U.S., for example, Teledyne Technologies Inc. integrated into its drones for U.S. special forces Mobilicom's US$2,500 SkyHopper Pro communication module. Also in the States, Mobilicom's radios are Blue UAS approved by the Department of Defense as interoperable, National Defense Authorization Act-compliant drone components. Only five companies' radios are designated as such.
Positioned for More Growth
The total addressable market for small unmanned aerial vehicles is an estimated US$5.4 billion (US$5.4B), but it could grow exponentially rather than incrementally due to "real world demand," Sine pointed out. Reportedly, Russia is producing 5 million drones per year, and an equal response from the U.S. and the North Atlantic Treaty Organization, at US$5,000 per drone, would total about US$25B in acquisitions. The U.S. Pentagon has ordered every military branch to stand up dedicated drone formations by Sept. 1 and incorporate drones into training by 2026.
"With six additional programs of record under proposal, Mobilicom could secure entrenched, decades-long revenue streams," Sine wrote.
Approaching Profitability
Mobilicom's financial situation is scaling rapidly, and "profitability is within sight," Sine highlighted. Already this year the company exceeded last year's run rate of US$3.2 million (US$3.2M), between H1/25 revenue (US$1.5M) and its backlog (US$1.6M).
Cash on hand is US$8.7M. Gross margins, now at 60%, and expected to grow with the company's increase in software sales given the gross margin on them is 80–90%.
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- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Mobilicom Ltd.
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Disclosures for Litchfield Hills Research, Mobilicom Ltd., August 25, 2025
Analyst Certification We, the Litchfield Hills Research Department, hereby certify that the views expressed in this research report accurately reflect our personal views about the subject company and the underlying securities. FINRA Compliant Research Report We, the Litchfield Hills Research Department, hereby certify that this report is compliant with FINRA research rules 2241, 3110. MiFID II Compliant Research Report Our research is classified as a minor non-monetary benefit under MiFID II. This applies to all forms of transmission, including email, website, and financial platforms such as Bloomberg, FactSet, S&P Global, Refinitiv, and 13 others. We do not seek payment from the asset management community and do not have any execution function. Investors can continue to receive our research under the MiFID II regime without the need for a contract for services to be put in place. This applies to all forms of transmission, including email, website, and financial platforms. Litchfield Hills Research LLC Rating System BUY: We expect the stock to provide a total return of 15% or more within a 12-month period. HOLD: We expect the stock to provide a total return of negative 15% to positive 15% within a 12-month period. SELL: We expect the stock to have a negative total return of more than 15% within a 12-month period. Total return is defined as price appreciation plus dividend yield. Other Disclosures Litchfield Hills Research, LLC (“LHR”) is not a U.S. broker-dealer registered with the U.S. Securities and Exchange Commission nor a member of the Financial Industry Regulatory Authority. This report is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would subject LHR or any divisions, subsidiaries or affiliates to any registration or licensing requirement within such jurisdiction. All material presented in this report, unless specifically indicated otherwise, is under copyright to LHR and the subject company. None of the material, nor its content, nor any copy of it, may be altered in any way, transmitted to, copied, or distributed to any other party, without the prior express written permission of LHR or the subject company. All trademarks, service marks, and logos used in this report are trademarks, service marks, registered trademarks, or service marks of LHR or its affiliates. The information, tools, and material presented in this report are provided to you for information purposes only and are not to be used or considered as an offer or the solicitation of an offer to sell or to buy or subscribe for securities or other financial instruments. LHR may not have taken any steps to ensure that the securities referred to in this report are suitable for any particular investor. The investments or services contained or referred to in this report may not be suitable for you, and it is recommended that you consult an independent investment advisor if you are in doubt about such investments or investment services. Nothing in this report constitutes investment, legal, accounting or tax advice or a representation that any investment or strategy is suitable, appropriate to your individual circumstances, or otherwise constitutes a personal recommendation to you. LHR does not offer advice on the tax consequences of investment, and you are advised to contact an independent tax adviser. LHR believes the information and opinions in the Disclosure Appendix of this report are accurate and complete. Information and opinions presented in this report were obtained or derived from sources LHR believes are reliable, but LHR makes no representations as to their accuracy or completeness. Ownership and Material Conflicts of Interest The analyst owns no shares of the subject company. The analyst and his family have no known material conflicts of interest in authoring this report. Investment Banking and Fees for Services Litchfield Hills Research has not received compensation for advisory or investment banking services from the Company in the past 12 months. Litchfield Hills Research LLC has received compensation from the subject company for distribution and investor targeting services. Market Making Litchfield Hills Research, LLC does not make a market in the subject company's securities. Additional information is available upon request. LHR accepts no liability for loss arising from the use of the material presented in this report, except that this exclusion of liability does not apply to the extent that liability arises under specific statutes or regulations applicable to LHR. This report is not to be relied upon in substitution for the exercise of independent judgment.
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