Ondas (NASDAQ:ONDS) Announces Quarterly Earnings Results

Ondas (NASDAQ:ONDS) released its quarterly earnings data on Thursday. The company reported ($0.19) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.09) by ($0.10), FiscalAI reports. Ondas had a net margin of 247.85% and a negative return on equity of 14.17%. The company had revenue of $83.77 million for the quarter, compared to analysts’ expectations of $67.97 million.

Here are the key takeaways from Ondas’ conference call:

• Positive Sentiment: Q2 revenue reached approximately $83.8 million, up 67% sequentially and more than 13-fold year over year; management cited approximately 85% pro forma organic growth and raised full-year 2026 revenue guidance to $525 million–$550 million.
• Positive Sentiment: Pro forma backlog rose to approximately $757 million, while the two-year strategic pipeline exceeded $11 billion and Q3-to-date orders totaled about $105 million, supporting management’s expectation of a significant second-half revenue ramp.
• Positive Sentiment: Management expects operating leverage to emerge as revenue scales, projecting profitability for the Ondas Autonomous Systems and Ondas Sentinel platform in Q4 2026 and company-wide adjusted EBITDA profitability in Q4 2027; it also expects to exit 2026 at a $1 billion annualized revenue run rate.
• Negative Sentiment: Adjusted cash operating expenses rose to approximately $93 million and adjusted EBITDA was a loss of about $51 million in Q2, reflecting front-loaded integration and growth investments; management also expects some second-half gross-margin pressure from product mix and excess capacity, while acknowledging ongoing supply-chain challenges.

Ondas Trading Up 3.7%

Ondas stock traded up $0.33 on Friday, hitting $9.24. 96,115,614 shares of the stock traded hands, compared to its average volume of 85,538,406. Ondas has a 1 year low of $3.20 and a 1 year high of $15.28. The firm has a market cap of $5.27 billion, a P/E ratio of 231.00 and a beta of 2.72. The business’s fifty day simple moving average is $8.29 and its 200 day simple moving average is $9.52.

Key Ondas News

Here are the key news stories impacting Ondas this week:

• Positive Sentiment: Ondas reported second-quarter revenue of approximately $83.8 million, more than 13 times higher than the prior-year period and above analysts’ expectations. The company raised its 2026 revenue outlook to $525 million-$550 million, citing broad demand and several programs expected to ramp in the second half. Ondas Posts Wider-Than-Expected Q2 Loss, Delivers Solid Revenue Growth
• Positive Sentiment: The company entered the second half with a reported $757 million backlog and strong order momentum, offering potential visibility for future revenue growth. Management also said it is working toward adjusted EBITDA profitability sooner than previously anticipated. Ondas Q2 Earnings Call Lifts Outlook and Profitability Timeline
• Positive Sentiment: Ondas won a multimillion-dollar Israeli defense tender for next-generation tactical attack drones, expanding its international defense opportunity. Needham reaffirmed its Buy rating and set a $19 price target, implying substantial upside from recent trading levels.
• Positive Sentiment: Reports of a potential 100% tariff on foreign drones helped lift U.S.-focused drone stocks, including Ondas, by improving the perceived competitive position of domestic suppliers. Unusual Machines Soars, Red Cat Climbs, Ondas Gains on Trump’s Drone Tariff
• Neutral Sentiment: Unusually high call-option activity and elevated short interest may be amplifying volatility and supporting a speculative bullish trading setup, but these signals do not change the company’s underlying fundamentals.
• Negative Sentiment: Profitability remains a concern. Coverage highlighted a wider-than-expected quarterly loss and an adjusted EBITDA loss of approximately $50.6 million, which initially pressured the stock despite the improved revenue outlook.

Analyst Upgrades and Downgrades

A number of research firms recently commented on ONDS. LADENBURG THALM/SH SH upgraded shares of Ondas to a “strong-buy” rating in a report on Wednesday, May 6th. Oppenheimer boosted their price objective on shares of Ondas from $16.00 to $18.00 and gave the company an “outperform” rating in a research report on Friday. Roth Capital started coverage on Ondas in a research note on Tuesday. They issued a “buy” rating and a $13.00 target price on the stock. Wall Street Zen downgraded Ondas from a “hold” rating to a “sell” rating in a report on Sunday, May 24th. Finally, Needham & Company LLC reaffirmed a “buy” rating and set a $19.00 price target on shares of Ondas in a research report on Friday. Two investment analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $16.56.

Insider Transactions at Ondas

In related news, Director Richard M. Cohen sold 7,500 shares of the business’s stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $9.50, for a total transaction of $71,250.00. Following the sale, the director owned 264,853 shares of the company’s stock, valued at $2,516,103.50. The trade was a 2.75% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Randy Seidl sold 10,000 shares of the company’s stock in a transaction dated Tuesday, May 19th. The stock was sold at an average price of $9.83, for a total transaction of $98,300.00. Following the completion of the sale, the director owned 295,504 shares in the company, valued at approximately $2,904,804.32. This trade represents a 3.27% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 2,395,745 shares of company stock valued at $32,109,380 in the last three months. 1.67% of the stock is currently owned by company insiders.

Institutional Trading of Ondas

A number of hedge funds have recently made changes to their positions in ONDS. IFP Advisors Inc increased its position in Ondas by 231.4% during the 3rd quarter. IFP Advisors Inc now owns 4,142 shares of the company’s stock valued at $32,000 after buying an additional 2,892 shares in the last quarter. Steward Partners Investment Advisory LLC boosted its holdings in Ondas by 1,005.0% in the fourth quarter. Steward Partners Investment Advisory LLC now owns 4,398 shares of the company’s stock worth $43,000 after acquiring an additional 4,000 shares in the last quarter. Federation des caisses Desjardins du Quebec grew its stake in shares of Ondas by 228.6% in the fourth quarter. Federation des caisses Desjardins du Quebec now owns 4,403 shares of the company’s stock worth $43,000 after acquiring an additional 3,063 shares during the last quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA purchased a new stake in shares of Ondas in the fourth quarter worth $47,000. Finally, State of Wyoming bought a new position in shares of Ondas during the fourth quarter valued at $51,000. 37.73% of the stock is owned by institutional investors.

Ondas Company Profile

Ondas Holdings, Inc (NASDAQ: ONDS) develops secure private wireless networking solutions and unmanned aircraft systems tailored to mission-critical industrial applications. Its Ondas Networks division offers the proprietary FullMAX platform, a long-range, high-bandwidth broadband network designed to support real-time data transmission, remote monitoring and IoT deployments across rail, maritime and infrastructure environments. The broadband platform integrates edge-to-cloud architecture to ensure operational resilience and regulatory compliance for transportation and utility operators.

The company’s Ondas Autonomous Systems segment builds heavy-lift cargo drones and uncrewed aircraft platforms for logistics, pipeline and infrastructure inspection, emergency response and other government and commercial use cases.