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Ondas Inc

ONDS · NASDAQ

Aerospace & Defense · Autonomous Systems / Drones

Q2 2026 Earnings · Thursday, August 13Next Earnings: Q3 2026 · ~November 2026
Trading Now
$7.55− 1.05%

Since the Report − 16.9%

Close on Report DayAug 13

$9.09▼ 7.0%Report-Day Move

Market Cap(Today)
≈ $4.30 B
1Y Return(At Report)
+ 161%
Net Margin(Trailing 12M)
96.3%
78/ 100
VerdictBUY

Ondas grew Q2 revenue more than 13-fold year over year to a record $83.8 million, beating market expectations by roughly 21% and raising its full-year target to $525-550 million from about $375 million. Despite the record results and a backlog that reached $757 million, the stock fell about 7% as GAAP loss per share missed expectations, gross margin compressed to 43%, and investors took profits after a roughly 40% run-up over the prior month. The key question now is how fast defense orders convert into revenue and whether margins recover.

Avg. Analyst Target (9)$19.06▲ 110% Upside

  • Revenue (Q2)

    $83.8M

    ▲ 1,230% YoY

  • GAAP EPS

    −$0.19

    Est. −0.09 · Missed

  • Backlog

    $757M

    Pro Forma · +11x

  • New Orders

    $175M

    Booked in Quarter

  • Cash & Investments

    $1.4B

    Strong Balance Sheet

  • Adjusted EBITDA

    −$50.6M

    Loss Continues

Quarterly Revenue ($ Million)

ReportedCompany Guidance

  • 30.10

  • 50.10

  • 83.80

  • 140–155

  • Q4 25
  • Q1 26
  • Q2 26
  • Q3 26E
Annual Revenue Growth
▲ 1,230%13x Increase
Revenue Surprise
▲ 21%Est. $69.3M
Gross Margin
43.1%YoY ▼ · Adjusted 50.4%

Q3 2026 Company Guidance

Guidance Range
  • Q3 Revenue140 – 155 M

    Midpoint 147.5 · Prior quarter $83.8MQoQ ▲ 76%

  • Full-Year Revenue525 – 550 M

    Prior target ~$375MRaised ▲

The blue band is the company's low–high range; its length shows how much room the company left itself. The black triangle and the line beneath it mark where the market expected, and the notch in the band is the range's midpoint. The triangle appears only where a market expectation is known. Axis is ±5.8% around the midpoint.

Backlog
$757MPro Forma · YoY +11x
Cash & Investments
$1.4BAs of June 30
Q3 Orders (QTD)
$105MThrough August 10
From the CEOEric BrockChairman & CEO
“Our team at Ondas is performing at a high level, as evidenced by our record second-quarter results.”
  • Record quarterly revenue
  • Defense platform scaling
  • Backlog growing rapidly

Summary

Ondas's Q2 revenue climbed more than 13-fold from $6.3 million a year earlier to a record $83.8 million, up 67% sequentially and roughly 21% above the $69.3 million market expectation. The company raised its full-year 2026 revenue target to $525-550 million from about $375 million, and set third-quarter guidance at $140-155 million. Pro forma backlog reached $757 million, more than 11-fold growth versus the prior-year fourth quarter, with $175 million of new orders booked during the quarter. Against that, GAAP loss per share was $0.19, missing the roughly $0.09 loss expected; net loss was $89.7 million and gross margin came in at 43.1%. The balance sheet holds $1.4 billion in cash and investments.

Despite record revenue and a raised outlook, the stock fell about 7% on report day and traded below $9 intraday. The selloff was driven less by weak results than by the EPS miss, a gross margin that narrowed from 53.1% a year ago to 43.1%, and the fact that shares had already climbed 40% in the month into earnings. The stock was priced at roughly 40 times revenue with high forward multiples, meaning even a strong report was vulnerable to a 'sell the news' reaction. Weighted-average share count also rose to 503.6 million; the dilution funding this rapid growth weighs on per-share values.

The quarter itself was operationally strong: revenue beat, guidance was raised sharply, and the defense/drone backlog exploded. That is why we view the quarter positively, with a score of 78 and a 'buy' read. This does not mean the stock is recommended at today's price; it means the reported quarter's scorecard is strong. Three things to watch: whether gross margin recovers, the trajectory of the $50.6 million adjusted-EBITDA loss and cash burn, and how quickly the $757 million backlog converts to revenue. Because the valuation is high, even small misses versus expectations can drive sharp price moves.

Full Review

Claude

Revenue grew 13-fold and beat estimates.

Q2 revenue set a record at $83.8 million, more than 13 times the $6.3 million of a year ago and 67% above the prior quarter. More importantly, it topped the $69.3 million market expectation by roughly 21%, so growth was not just fast but faster than forecast. Management frames this not as a one-off spike but as durable scaling of demand for defense and autonomous systems. Manufacturing footprint expanded from 10,000 to 230,000 square feet, the sales team grew from 10 to 171 people, operations span 60 countries, and headcount reached 1,700. Such rapid capacity expansion is a strong signal that revenue should keep rising in coming quarters. Still, the operational and financial cost of sustaining this pace shows up in the margin and cash sections below.

The backlog is the real story.

Ondas's most striking figure is a pro forma backlog of $757 million, more than 11-fold growth versus the prior-year fourth quarter and 66% sequential growth. Reported backlog is $613 million; the gap comes from the acquired DZYNE and Cyberhawk businesses. Geographically, Europe leads by far at $407 million, followed by Asia-Pacific and other regions at $187 million, the U.S. and Canada at $155 million, and the Middle East at $8 million. New orders of $175 million were booked in the quarter; through August 10 in the third quarter, another $105 million was recorded, including a $50 million border demining program and a $68 million military purchase order. This backlog is the most concrete support for multi-year revenue visibility. The key question is how quickly, and at what margin, these orders convert into deliveries and revenue.

Margins narrowed, losses are large.

The shadow side of the story is profitability. Gross margin fell to 43.1%, down from 53.1% a year ago and 49.2% last quarter. Adjusted gross margin looks better at 50.4%, but the direction is down. GAAP net loss was $89.7 million and operating loss was $162.9 million; net loss being smaller than operating loss points to some non-operating gains. Adjusted EBITDA is still a $50.6 million loss, meaning the company is scaling but not yet generating cash. GAAP loss per share of $0.19 missed the expected $0.09 loss, and that miss was the most concrete trigger for the selloff despite strong revenue. The rise in weighted-average shares to 503.6 million adds further pressure on per-share values.

Guidance was raised substantially.

Management lifted the full-year 2026 revenue target to $525-550 million from about $375 million, implying more than 10-fold growth over 2025's roughly $50.7 million. The $140-155 million third-quarter range implies about 76% growth versus the second quarter's midpoint. The company's full-year revenue mix outlook shows which work is leading: precision strike 38%, ISR and persistent intelligence 28%, autonomous ground systems 19%, and aerial security 15%. Such an aggressive upward revision builds confidence that demand is real and the backlog is deliverable. But the higher the guidance, the sharper the stock impact of any small shortfall in execution.

Why the stock fell.

Short answer: the good news was already in the price. The stock had risen 40% in the month before earnings, reaching roughly 40 times revenue and a forward P/E in the 60s. At that valuation the market wanted not just a 'good' quarter but a 'flawless' one; with revenue and guidance near flawless, the EPS miss and margin compression were enough excuse to take profits. Shares tested below $9 intraday, then recovered part of the loss to close down about 7%. The stock's average post-earnings reaction over the last seven reports is about minus 8%, showing such 'sell the news' moves are typical for ONDS. The real message for investors was that the quarter was not weak; expectations were simply very high.

Strengths

5
  1. Revenue grew more than 13-fold year over year to a record $83.8 million, beating the $69.3 million expectation by roughly 21%.
  2. Pro forma backlog reached $757 million; more than 11-fold annual growth means strong revenue visibility.
  3. Full-year revenue target raised to $525-550 million from about $375 million; a strong upward revision.
  4. The balance sheet holds $1.4 billion in cash and investments, a solid liquidity buffer to fund growth.
  5. $175 million of new orders in the quarter and $105 million more through August 10 in Q3; demand momentum continues.

Risks

5
  1. Gross margin fell from 53.1% to 43.1% year over year; growth is coming at the expense of profitability.
  2. The company remains deeply unprofitable; adjusted EBITDA is a $50.6 million loss and cash burn continues.
  3. Weighted-average share count rose to 503.6 million; dilution funding rapid growth pressures per-share values.
  4. Valuation is high at about 40 times revenue, turning even the smallest miss versus expectations into sharp price moves.
  5. Scaling manufacturing from 10,000 to 230,000 square feet carries meaningful execution risk; delivery slips would undercut guidance.

What to Watch

4
  1. Q3 2026 earnings (~November 2026): whether the $140-155 million revenue target holds.
  2. The pace of backlog-to-revenue conversion and delivery margins will be watched.
  3. Whether gross margin recovers will be a critical data point for the profitability path.
  4. Cash burn rate and how long the $1.4 billion in cash lasts will be tracked.

Upcoming Earnings

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To Understand This

Earnings Reports: What to Read, HowThe book opens once a quarter — and the market really only reads three lines.P/E and the Valuation RatiosYou can't tell whether a stock is cheap or expensive by looking at its price.