Ondas (NASDAQ:ONDS) Posts Earnings Results, Beats Expectations By $0.03 EPS

Ondas (NASDAQ:ONDS) announced its quarterly earnings data on Thursday. The company reported ($0.10) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.13) by $0.03, FiscalAI reports. Ondas had a net margin of 93.55% and a negative return on equity of 14.20%. The business had revenue of $167.49 million during the quarter, compared to the consensus estimate of $148.04 million.

Here are the key takeaways from Ondas’ conference call:

• Ondas reported record Q3 revenue of $167.5 million, up more than 16 times year over year, with pro forma organic growth of 64% and backlog of about $835 million. Management targets at least $550 million in 2026 revenue and at least $1.1 billion in 2027, while expecting Q4 revenue above $250 million.
• Management highlighted ULTRA and IonStrike as potential major growth drivers, citing demand signals for ULTRA and a response to a $45 million sole-source RFP for IonStrike. These opportunities remain dependent on customer awards, deployment, and production scaling; the company’s longer-term revenue estimates are management’s projections.
• Profitability remains a near-term challenge: Q3 adjusted EBITDA loss widened to $59.7 million, and adjusted gross margin was 34.8%, pressured by lower-margin program mix and production ramp inefficiencies. Management expects mid-30% gross margins in Q4, though it anticipates improvement in 2027 and now targets company-wide adjusted EBITDA break-even in Q3 2027.
• The company ended the quarter with about $820 million in cash, cash equivalents, restricted cash, and short-term investments after deploying roughly $431 million for acquisitions. It plans further investment in inventory and production capacity, expects growth spending to moderate, and said future acquisitions will be approached more deliberately; Regna AI’s financial outlook is not included in guidance and outside funding discussions remain ongoing.

Ondas Stock Down 7.1%

NASDAQ:ONDS traded down $0.41 during trading hours on Thursday, hitting $5.33. 58,016,138 shares of the stock were exchanged, compared to its average volume of 77,002,141. Ondas has a twelve month low of $4.38 and a twelve month high of $15.28. The company’s 50 day moving average is $6.77 and its two-hundred day moving average is $8.78. The company has a market capitalization of $3.10 billion, a P/E ratio of -76.73 and a beta of 3.10.

Top Ondas Stories

Investors following ONDS have been watching these stories:

• Positive Sentiment: Q3 revenue surged about 1,558% year over year to $167.5 million, topping the roughly $148 million analyst estimate. The company also reported an $835 million backlog. Ondas Q3 2026 earnings
• Positive Sentiment: A recent purchase order for next-generation tactical attack drones adds to demand signals; Ondas said a planned defense acquisition could help it manufacture these systems at scale. Ondas receives tactical drone purchase order
• Neutral Sentiment: Reports differ on the quarterly per-share loss and comparison with estimates: Zacks cited a $0.11 loss versus a $0.09 expected loss, while MarketBeat reported a $0.10 loss versus a $0.13 expected loss. Zacks Q3 results report

Insider Activity

In other Ondas news, Director Richard Cohen sold 7,500 shares of the stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $8.96, for a total transaction of $67,200.00. Following the completion of the transaction, the director owned 261,836 shares in the company, valued at approximately $2,346,050.56. This represents a 2.78% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Neil Laird sold 4,952 shares of Ondas stock in a transaction on Thursday, September 24th. The shares were sold at an average price of $7.74, for a total transaction of $38,328.48. Following the completion of the sale, the chief financial officer owned 42,246 shares in the company, valued at $326,984.04. The trade was a 10.49% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 1.67% of the company’s stock.

Analysts Set New Price Targets

Several brokerages have commented on ONDS. Needham & Company LLC restated a “buy” rating and issued a $19.00 price target on shares of Ondas in a research note on Monday, September 14th. The Goldman Sachs Group upgraded shares of Ondas to a “buy” rating in a research report on Monday, November 2nd. Citizens Jmp assumed coverage on shares of Ondas in a report on Monday, October 5th. They set an “outperform” rating and a $14.00 price target on the stock. Roth Capital reissued a “buy” rating on shares of Ondas in a research report on Tuesday, August 18th. Finally, Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Ondas in a report on Monday, November 2nd. Eleven investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Ondas presently has a consensus rating of “Moderate Buy” and an average price target of $16.89.

Ondas Company Profile

Ondas Holdings is a technology company that develops private wireless networks and autonomous systems for industrial, government and security applications. Its businesses include Ondas Networks and Ondas Autonomous Systems. Ondas Networks provides private broadband wireless solutions for mission-critical communications. Its FullMAX platform is designed to support applications such as rail communications and industrial data networks. Ondas Autonomous Systems develops autonomous drone and counter-drone technologies, including systems for infrastructure inspection, security and public safety.