Ondas Q2 Earnings Call Highlights

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Ondas (NASDAQ:ONDS) reported record second-quarter revenue of approximately $83.8 million, up 67% sequentially and more than 13 times the level reported a year earlier, as the company expanded deliveries across its autonomous defense and security portfolio.

Chairman and CEO Eric Brock said the company’s pro forma organic revenue growth was approximately 85% year over year, assuming its current portfolio companies were owned in both comparison periods. Ondas raised its full-year 2026 revenue target to $525 million to $550 million and forecast third-quarter revenue of $140 million to $155 million.

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The company is pursuing a “One Ondas” strategy that integrates acquired technologies, personnel, customer relationships, production capabilities and field-support operations into a common platform. Brock said Ondas is focused on providing integrated systems rather than standalone products across aerial security, intelligence, surveillance and reconnaissance, precision strike, and autonomous ground systems.

Backlog and Pipeline Expand

Ondas reported pro forma backlog of approximately $757 million as of June 30, up from $457 million at the end of the first quarter. The backlog includes DZYNE and Cyberhawk, which were acquired during the third quarter. The company also said it had captured approximately $105 million in orders quarter to date in the third quarter.

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Its two-year strategic program pipeline exceeded $11 billion, more than 2.5 times the level reported in May. Brock said the pipeline expansion was broad-based across the company’s four target segments and regions, with DZYNE adding opportunities particularly in ISR and counter-drone systems.

Oshri Lugassy, co-CEO of Ondas Autonomous Systems, said the pipeline includes opportunities involving border security, smart demining, military engineering vehicles, lethal unmanned systems, autonomous UAV swarms, precision strike, stratospheric maritime surveillance and contested logistics. Some potential programs have values of more than $1 billion, he said.

Management said it expects several programs to contribute to second-half growth, including volume shipments against more than $240 million of aggregated orders under the U.S. Army’s Lethal Unmanned Systems indefinite-delivery, indefinite-quantity contract. Ondas also expects contributions from its ULTRA long-endurance aircraft and IonStrike counter-UAS platform, as well as fourth-quarter deliveries under INDO Earth Moving’s combat engineering vehicle program, which has total potential value of approximately $140 million.

Costs Rise as Company Invests for Growth

Chief Financial Officer and Treasurer Neil Laird said gross profit rose to approximately $36 million in the second quarter. Adjusted gross margin, which excludes stock-based compensation expense and amortization of acquisition-related intangible assets, was 50.4%, compared with 51.5% in the prior quarter.

Laird said gross margins could face some pressure in the second half because of product mix and recently acquired excess capacity, though the company’s longer-term target remains gross margin above 50%.

Operating expenses totaled approximately $199 million. More than half of that amount consisted of non-cash or acquisition-related items, including stock compensation, contingent-consideration revaluation, intangible-asset amortization and $4.4 million in transaction costs, according to Laird.

Adjusted cash operating expenses were approximately $93 million, reflecting the incorporation of acquired businesses and spending on commercialization, infrastructure, Palantir Foundry and Warp Speed deployment, and other growth initiatives. Brock said Ondas invested approximately $29 million at the corporate level for corporate development, Ondas Capital, partner initiatives and the operating platform, along with approximately $6 million for leadership and infrastructure at Ondas Autonomous Systems.

Adjusted EBITDA was a loss of approximately $51 million. Management said it expects the second quarter to represent the peak quarterly adjusted EBITDA loss, with revenue growth expected to generate operating leverage during the second half.

Balance Sheet Supports Acquisitions and Expansion

Ondas ended June with approximately $1.4 billion in cash equivalents, restricted cash and short-term investments, compared with $616 million at the end of 2025. The company subsequently deployed approximately $325 million during the third quarter to acquire DZYNE and Cyberhawk.

Laird said the balance sheet gives Ondas flexibility to invest in its operating platform, pursue larger customer opportunities and continue its acquisition strategy. Brock said future acquisitions will be evaluated for strategic fit, financial accretion and their ability to strengthen the company’s operating platform.

The company also disclosed investments in unaffiliated public and private companies totaling $70 million. Laird said those investments support key partners, technology access and supply-chain efficiency.

Technology Integration and Operational Scale

Ryan Hartman, CEO of Ondas Sentinel, said the company operates in more than 60 countries through 25 physical locations and has approximately 1,700 employees. Ondas is using Palantir’s Foundry and Warp Speed platforms to connect data and workflows across operations, including manufacturing, supply chain, inventory and financial systems.

Hartman said the company is using AI agents with read-write capabilities in enterprise resource planning, material planning, inventory and financial systems. The infrastructure is built on Microsoft Azure GovCloud, he said. Ondas is also developing SkyWeaver, an edge AI platform intended to connect data and mission operations across its air and ground systems. The company said it recently completed ground and aerial testing of SkyWeaver.

Among other integration efforts, Ondas is combining DZYNE’s Sawtooth counter-UAS technology with Sentrycs’ cyber-over-radio-frequency capabilities. Hartman said the combined system is intended to provide detection, identification and defeat capabilities in a single platform.

Management also highlighted Iron Wave, an integrated aerial and ground ISR product line that it said is being fielded with a customer. Brock said the company sees potential to expand Iron Wave with its current customer and in additional international markets.

Updated Profitability Timeline

Ondas said it now expects its operating platform, consisting of Ondas Autonomous Systems and Ondas Sentinel, to reach profitability in the fourth quarter of 2026. The company expects company-wide adjusted EBITDA profitability in the fourth quarter of 2027, one quarter earlier than its prior timeline.

At the midpoint of its full-year revenue forecast, Ondas said 2026 revenue would exceed 10 times its 2025 revenue and represent more than 30% pro forma organic growth. If the company executes its planned fourth-quarter ramp, Brock said Ondas expects to exit 2026 at a $1 billion annualized revenue run rate.

About Ondas (NASDAQ:ONDS)

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.

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