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Ondas Holdings to Report Q3 Earnings: How to Approach the Stock Now?

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Key Takeaways

  • Ondas Holdings will report Q3 2025 results on Nov. 13, with a projected loss of 5 cents per share.
  • Revenues are estimated at $7.37 million, signaling a 398% year-over-year increase.
  • Defense partnerships and OAS demand are expected to drive revenue and backlog expansion.

Ondas Holdings Inc. ((ONDS - Free Report) ) will release results for the third quarter of 2025 on Nov. 13.

ONDS’ earnings beat the Zacks Consensus Estimate in the last quarter while missing in the previous three quarters, with an average negative surprise of 17.95%.

Let us see how ONDS is expected to fare in terms of revenues and earnings this time.

The Zacks Consensus Estimate for the third-quarter 2025 bottom line stands at a loss of 5 cents, unchanged in the past 30 days. The Zacks Consensus Estimate for revenues is pegged at $7.37 million, indicating a 398% jump from the year-ago actual.

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Image Source: Zacks Investment Research

Earnings Whispers for ONDS

Our proven model does not predict an earnings beat for Ondas Holdings this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.

ONDS currently has a Zacks Rank #2 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Factors Shaping ONDS Q3 Results

Continued momentum in the Ondas Autonomous Systems (“OAS”) business division is likely to have buoyed the top-line performance. In the second quarter of 2025, ONDS’ revenues jumped more than 500% year over year to $6.3 million, driven almost entirely by OAS, which contributed $6.1 million compared with just $0.3 million a year earlier. The OAS had a backlog of $22 million at the end of the second quarter.

Ondas Holdings is expanding its footprint with new defense and homeland security customers across Europe, the Middle East and the United States. ONDS has been witnessing growing traction for both its Optimus System and Iron Drone Radar system and expects the Mistral partnership to boost U.S. government adoption of these two platforms.

The company’s recent partnership and investment in Rift Dynamics represents a key step toward localization efforts and capability expansion across European defense markets. Rift’s Wasp platform (a modular, low-cost, mass producible drone platform) complements Ondas Holdings' Optimus and Iron Drone Raider, boosting OAS’ defense portfolio. ONDS expects this partnership to help it gain share in the growing $1 billion-plus market for one-way attributable drones highlighted in the One Big Beautiful Bill and in ongoing “Replicator-2” initiatives.

In October, ONDS expanded the Rift partnership to include Nammo Raufoss AS, which is a provider of advanced munitions. Nammo has a solid manufacturing presence in the United States. As part of the deal, both companies will team up on a fully integrated Wasp drone with munition payloads and this will be sold entirely by Ondas Holdings' American Robotics in the United States.

In September, ONDS launched Ondas Capital. This new business division is solely focused on boosting the deployment of unmanned/autonomous systems to Allied defense and security markets.

Ondas Holdings Inc. Price and EPS Surprise

Ondas Holdings Inc. Price and EPS Surprise

Ondas Holdings Inc. price-eps-surprise | Ondas Holdings Inc. Quote

Looking ahead, Ondas Holdings expects revenues for the full year to be at least $25 million, with at least $20 million coming from the OAS business unit. Management anticipates second-half bookings to surpass the $23 million attained in the first half, resulting in continued backlog expansion into 2026.

Nonetheless, heavy dependence on the OAS division for revenue growth in the increasingly crowded drone space is a concern.

If a single large customer delays, reduces or cancels, revenues would decline materially. Management acknowledged that revenues will fluctuate from quarter to quarter for OAS as it expands its client base. Moreover, revenues will vary as these customers enter fleet programs and recurring service agreements.While OAS dominates near-term revenues, Ondas Networks continues to build long-term value as a foundational enabler for next-generation rail communications.

Update on Inorganic Expansion

The focus on M&A is expected to broaden capabilities and strengthen portfolio offerings.

It recently announced plans to acquire Sentry CS Ltd. Israel-based Sentry CS develops Cyber-over-RF and Protocol-Manipulation counter-UAS technology. Before that, it acquired a controlling interest in Insight Intelligent Sensors and in 4M Defense Ltd. Insight Intelligent Sensors specializes in the development of AI-driven electro-optical sensing systems. At the same time, 4M Defense is a smart demining company. 4M defense’s platform boasts advanced demining capabilities, like robotic systems with terrestrial and subsurface AI-powered intelligence tech.

In August, it entered into a definitive agreement to acquire a controlling 51% interest in Israel-based S.P.O Smart Precision Optics. This company is a manufacturer of advanced precision optical components and systems. It also announced the acquisition of Apeiro Motion, which develops advanced ground robotics, fiber optic communications systems and mission-critical automation technologies.

ONDS Stock Surges

ONDS’ shares have skyrocketed 618.2% over the past six months, outperforming the Communication-Network software industry’s decline of 10.2%. The S&P 500 composite and the Zacks Computer and Technology sector have risen 17.7% and 30.3%, respectively, in the same time frame.

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ONDS’ Price Performance vs. Peers

AeroVironment ((AVAV - Free Report) ), Draganfly ((DPRO - Free Report) ) and Unusual Machines ((UMAC - Free Report) ) stocks are up 99.7%, 343.5% and 115.4%, respectively, over the same time frame.

Draganfly is a Canada-based drone solutions and systems developer. The company’s drones include Commander 3XL, Heavy Lift Drone, Commander 2 and Draganfly Medical Response Drone. Unusual Machines is well-positioned within the evolving drone industry through its focus on manufacturing and selling (through B2B sales and a curated retail channel) small drones and essential components. The FPV segment is UMAC’s core operational area within the drone industry.

AeroVironment is a well-known name in drone technology. The company has been developing uncrewed aircraft and ground robot systems, loitering munitions systems and related services for the U.S. Department of Defense (including Army, Marine Corps, Special Operations Command, Air Force and Navy), other federal agencies and international allied governments. The acquisition of BlueHalo (May 2025) has added space technologies, counter-UAS, electronic warfare and cyber solutions to the portfolio.

Key Valuation Metric for ONDS

ONDS stock is trading at a substantial premium, with a forward 12-month price/sales of 29.85X compared with the industry’s 1.93X.

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Image Source: Zacks Investment Research

In comparison, AVAV, DPRO and UMAC trade at multiples of 7.66X, 3.83X and 19.66X, respectively.

How to Approach ONDS Before Q3 Earnings Release

Ondas Holdings’ operational momentum, underpinned by surging OAS revenues, an expanding $22 million backlog, and higher penetration across defense and homeland security markets, bodes well. With full-year revenue guidance of at least $25 million and second-half bookings expected to top the first half, ONDS remains a compelling high-growth play.

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