Key Highlights
- Ondas shares declined approximately 4-5% in Thursday’s premarket session following Q2 earnings release
- Second-quarter revenue reached record $83.8 million, soaring 1,236% compared to prior year, surpassing $68 million consensus
- Adjusted EBITDA loss expanded to $50.6 million, significantly exceeding analysts’ projected $31.6 million loss
- 2026 full-year revenue outlook increased to $525-$550 million range from previous minimum of $390 million
- Total backlog now approximately $757 million, dramatically higher than year-end 2025 figure of $68.3 million
Ondas Holdings delivered unprecedented second-quarter revenue totaling $83.8 million, representing a massive 1,236% increase from the $6.3 million reported in the same period last year. The figure easily topped Wall Street’s projection of approximately $68 million. Despite this impressive top-line performance, shares tumbled around 4-5% during Thursday’s premarket session, trading at $9.36.
The decline centers on the company’s bottom-line performance. Ondas disclosed an adjusted EBITDA loss totaling $50.6 million for the three-month period. Wall Street analysts had anticipated a loss of $31.6 million. The variance represents a significant shortfall.
Looking at per-share metrics, the adjusted loss registered at $0.19, compared to the $0.10 figure analysts had forecasted.
The top line also expanded 67% from the previous quarter’s $50.1 million in Q1. Such sequential acceleration demonstrates notable commercial traction.
Total operating expenses climbed to $199.1 million during the quarter. Of this amount, $105.8 million represented non-cash charges. Stock-based compensation accounted for $67.6 million of the non-cash portion.
The company’s balance sheet showed $1.4 billion in combined cash, cash equivalents, restricted cash, and short-term investments at quarter end.
Updated Financial Outlook
Notwithstanding the earnings miss, leadership boosted its 2026 full-year revenue projection to a range of $525 million to $550 million. This represents an increase from prior guidance calling for at least $390 million. The midpoint of $537.5 million exceeds the current analyst consensus estimate of $525 million.
For the third quarter, Ondas projects revenue between $140 million and $155 million.
Chief Executive Eric Brock highlighted robust order activity. “Our team at Ondas is performing at a high level, as evidenced by our record second-quarter results, headlined by strong revenue growth and continued bookings momentum across our business,” Brock stated.
Management attributes the expanding losses to strategic investments in platform development and corporate infrastructure designed to fuel revenue growth during the latter half of 2026 and into future periods.
Bookings and Pipeline
The company booked $175 million in new contracts during the second quarter. Subsequently, an additional $105 million in orders were secured during the third quarter through the reporting date.
At June 30, the company reported a backlog of $613 million. When adjusted on a pro forma basis to incorporate the DZYNE and Cyberhawk acquisitions completed in Q3, the backlog figure reaches approximately $757 million. This contrasts sharply with the $68.3 million backlog recorded at the conclusion of 2025.
Ondas maintains a partnership with Palantir and specializes in AI-driven autonomous drone systems. The West Palm Beach, Florida-headquartered firm saw its shares climb 30% during August, although the stock remained relatively unchanged year-to-date prior to this earnings announcement.
Management also anticipates sequential improvement in adjusted EBITDA losses during Q3 and projects the company will achieve profitability by year-end 2027.
Ondas closed the second quarter with $1.4 billion in cash and short-term investment holdings.
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