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

Key Points

• Ondas beat Q3 expectations: EPS was a loss of $0.10 versus analysts’ expected loss of $0.13, while revenue reached $167.5 million, above the $148.0 million consensus.
• Revenue rose more than 16-fold year over year, and backlog stood at about $835 million. Management expects Q4 revenue above $250 million and targets at least $550 million in 2026 revenue.
• Profitability remains a concern: Adjusted EBITDA loss widened to $59.7 million, with adjusted gross margin at 34.8%; management now targets adjusted EBITDA break-even in Q3 2027.

Ondas (NASDAQ:ONDS - Get Free Report) released its quarterly earnings results on Thursday. The company reported ($0.10) earnings per share (EPS) 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 firm had revenue of $167.49 million for the quarter, compared to analysts' expectations 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 Performance

NASDAQ ONDS traded down $0.41 during trading hours on Thursday, reaching $5.33. The company's stock had a trading volume of 58,016,138 shares, compared to its average volume of 77,002,141. Ondas has a fifty-two week low of $4.38 and a fifty-two week 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 stock has a market cap of $3.10 billion, a PE ratio of -76.73 and a beta of 3.10.

Ondas News Roundup

Here's some of the latest news about ONDS:

• 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
• Negative Sentiment: The quarterly loss deepened from a year earlier, and coverage highlighted shrinking margins. These profitability concerns may be weighing on the shares despite the strong revenue growth and outlook. Ondas shares fall as loss deepens, margins shrink

Analyst Ratings Changes

A number of research firms have recently issued reports on ONDS. Citizens Jmp started coverage on Ondas in a research report on Monday, October 5th. They issued an "outperform" rating and a $14.00 price target for the company. The Goldman Sachs Group upgraded shares of Ondas to a "buy" rating in a report on Monday, November 2nd. Wall Street Zen cut Ondas from a "sell" rating to a "strong sell" rating in a research note on Saturday, August 15th. Oppenheimer raised their price target on Ondas from $16.00 to $18.00 and gave the company an "outperform" rating in a research note on Friday, August 14th. Finally, Citigroup reissued a "market outperform" rating on shares of Ondas in a report on Monday, October 19th. Eleven equities research 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. Based on data from MarketBeat.com, Ondas currently has a consensus rating of "Moderate Buy" and an average target price of $16.89.

Insiders Place Their Bets

In other news, CFO Neil J. Laird sold 4,952 shares of the business's stock in a transaction dated Thursday, September 24th. The stock was 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 approximately $326,984.04. The trade was a 10.49% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Richard M. Cohen sold 7,500 shares of the company's stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $8.96, for a total transaction of $67,200.00. Following the sale, the director directly owned 261,836 shares of the company's stock, valued at approximately $2,346,050.56. This trade represents a 2.78% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 1.67% of the company's stock.

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.

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