We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should ONDS Stock Be a Part of Your Portfolio Post Q3 Earnings?
Read MoreHide Full Article
Key Takeaways
Q3 revenues reached $10.1M, with OAS contributing $10M versus $1M a year earlier.
OAS backlog rose to $22.2M on strong Optimus and Iron Drone demand across defense markets.
ONDS lifted full-year revenue outlook to at least $36M and ended Q3 with $433.4M in cash.
Ondas Holdings Inc. ((ONDS - Free Report) ), a provider of private wireless data solutions through its Ondas Networks division and autonomous drones via Ondas Autonomous Systems (“OAS”), recently reported third-quarter 2025 results.
Revenues surged more than sixfold year over year to $10.1 million, driven almost entirely by OAS, which contributed $10 million compared with just $1 million a year earlier.
Nonetheless, operating expenses increased to $18.1 million, up from $8.7 million in the prior-year quarter, mainly driven by higher personnel costs.
As a result, adjusted EBITDA loss widened to $8.8 million compared with a loss of $7.1 million in the year-ago quarter. Net loss was $7.5 million compared with $9.5 million in the third quarter of 2024. Net loss included higher interest and dividend income from the increased cash balance and $6.9 million unrealized gain on minority equity investments.
ONDS is gaining from rapid technological shifts in the autonomous and unmanned systems, defense and security markets. For investors looking to add ONDS post earnings, let us break down the bullish elements, while also understanding the key risks investors must monitor.
OAS Offers Multi-Year Growth Runway
The most compelling part of the ONDS story remains OAS, which is transitioning into a high-visibility growth engine. OAS revenues jumped to $10 million, driven primarily by the deliveries for both its Optimus System and Iron Drone Radar counter-UAS platforms, as well as contributions from Apeiro ground robots.
The OAS had a backlog of $22.2 million at the end of the third quarter, driven by strong demand trends for Optimus and Iron Drone systems. Consolidated backlog stood at $23.3 million, and it reached $40 million, including acquisitions. ONDS noted that the customer pipeline remains strong and expects to end 2025 with further backlog expansion. It remains focused on the counter-UAS market.
Ondas is expanding its footprint with new defense and homeland security customers across Europe and the United States. ONDS expects the Mistral partnership to boost U.S. government adoption of these two platforms. It has secured GreenUAS Cleared List certification for the Optimus drone. This places the solution for the Department of War Blue List inclusion as an NDAA-compliant autonomous platform. It is working on preparing the domestic supply chain for Optimus and Iron Drone and anticipates to have U.S.-built systems available in the first quarter of 2026.
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' Optimus and Iron Drone Raider, boosting OAS’ defense portfolio.
In October, ONDS expanded the Rift partnership to include NammoRaufoss 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' American Robotics in the United States.
Ondas Holdings Inc. Price, Consensus and EPS Surprise
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.
Acquisitions to Further Strengthen OAS Reach
The focus on M&A is expected to strengthen portfolio offerings and broaden reach across multiple domains like unmanned ground systems, robotics and fiber optic communications, subsurface intelligence and demining robotics.
It recently announced plans to acquire Sentry CS Ltd., an 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 acquired Apeiro Motion, which develops advanced ground robotics, fiber optic communications systems and mission-critical automation technologies.
Ondas Networks: Getting There
While OAS dominates near-term revenues, Ondas Networks continues to build long-term value as a foundational enabler for next-generation rail communications. ONDS noted that the Association of American Railroads (“AAR”) Wireless Communications Committee selected IEEE 802.16t ("dot16") upgrade 160 MHz LMR voice network. dot16 has already been adopted across 900 MHz and 450 MHz frequencies.
This places ONDS for a multi-year upgrade cycle across all AAR-owned frequencies, covering thousands of miles of railroad infrastructure across North America. It is working on expanding the ecosystem of dot16-enabled third-party applications.
It expects “meaningful adoption” by the railroads in 2026 for dot16, but at present has “modest revenue expectations from Ondas Networks relative to the OAS business”.
Balance Sheet & Guidance Raise
As of Sept. 30, 2025, Ondas had $433.4 million in cash, cash equivalents and restricted cash and has raised $855 million since June to fund its aggressive expansion plans.
For the nine months ended Sept. 30, cash used in operating activities was $26 million compared with $25.4 million used in the first nine months of 2024.
Given the strong momentum, Ondas now expects revenues for the full year to be at least $36 million (previous target: $25 million), with fourth-quarter revenues estimated to be more than $15 million. Management anticipates revenues in 2026 to be at least $110 million, driven by increasing customer base, backlog and acquisitions.
Image Source: Zacks Investment Research
Analysts have sharply revised upwards their estimates for the current quarter in the past 60 days.
ONDS Stock Outperforms Peers
ONDS’ shares have skyrocketed 665.8% over the past six months, outperforming the Communication-Network software industry’s decline of 15.8%. The S&P 500 composite and the Zacks Computer and Technology sector have risen 28.8% and 18.3%, respectively, in the same time frame.
ONDS’ Price Performance vs. Peers
Image Source: Zacks Investment Research
Draganfly ((DPRO - Free Report) ), Unusual Machines ((UMAC - Free Report) ) and AeroVironment ((AVAV - Free Report) ) stocks are up 281.1%, 76.1% and 78.6%, 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 33.11X compared with the industry’s 1.88X. The premium valuation is justified to an extent due to the company’s hyper revenue growth and robust backlog.
ONDS: Buy for Now
Ondas’ operational momentum, underpinned by surging OAS revenues, an expanding backlog and higher penetration across defense and homeland security markets, bodes well. Yet, ONDS still comes with execution risks and ongoing cash burn, which are typical of emerging technology companies.
Image: Bigstock
Should ONDS Stock Be a Part of Your Portfolio Post Q3 Earnings?
Key Takeaways
Ondas Holdings Inc. ((ONDS - Free Report) ), a provider of private wireless data solutions through its Ondas Networks division and autonomous drones via Ondas Autonomous Systems (“OAS”), recently reported third-quarter 2025 results.
Revenues surged more than sixfold year over year to $10.1 million, driven almost entirely by OAS, which contributed $10 million compared with just $1 million a year earlier.
Nonetheless, operating expenses increased to $18.1 million, up from $8.7 million in the prior-year quarter, mainly driven by higher personnel costs.
As a result, adjusted EBITDA loss widened to $8.8 million compared with a loss of $7.1 million in the year-ago quarter. Net loss was $7.5 million compared with $9.5 million in the third quarter of 2024. Net loss included higher interest and dividend income from the increased cash balance and $6.9 million unrealized gain on minority equity investments.
ONDS is gaining from rapid technological shifts in the autonomous and unmanned systems, defense and security markets. For investors looking to add ONDS post earnings, let us break down the bullish elements, while also understanding the key risks investors must monitor.
OAS Offers Multi-Year Growth Runway
The most compelling part of the ONDS story remains OAS, which is transitioning into a high-visibility growth engine. OAS revenues jumped to $10 million, driven primarily by the deliveries for both its Optimus System and Iron Drone Radar counter-UAS platforms, as well as contributions from Apeiro ground robots.
The OAS had a backlog of $22.2 million at the end of the third quarter, driven by strong demand trends for Optimus and Iron Drone systems. Consolidated backlog stood at $23.3 million, and it reached $40 million, including acquisitions. ONDS noted that the customer pipeline remains strong and expects to end 2025 with further backlog expansion. It remains focused on the counter-UAS market.
Ondas is expanding its footprint with new defense and homeland security customers across Europe and the United States. ONDS expects the Mistral partnership to boost U.S. government adoption of these two platforms. It has secured GreenUAS Cleared List certification for the Optimus drone. This places the solution for the Department of War Blue List inclusion as an NDAA-compliant autonomous platform. It is working on preparing the domestic supply chain for Optimus and Iron Drone and anticipates to have U.S.-built systems available in the first quarter of 2026.
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' Optimus and Iron Drone Raider, boosting OAS’ defense portfolio.
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' American Robotics in the United States.
Ondas Holdings Inc. Price, Consensus and EPS Surprise
Ondas Holdings Inc. price-consensus-eps-surprise-chart | Ondas Holdings Inc. Quote
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.
Acquisitions to Further Strengthen OAS Reach
The focus on M&A is expected to strengthen portfolio offerings and broaden reach across multiple domains like unmanned ground systems, robotics and fiber optic communications, subsurface intelligence and demining robotics.
It recently announced plans to acquire Sentry CS Ltd., an 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 acquired Apeiro Motion, which develops advanced ground robotics, fiber optic communications systems and mission-critical automation technologies.
Ondas Networks: Getting There
While OAS dominates near-term revenues, Ondas Networks continues to build long-term value as a foundational enabler for next-generation rail communications. ONDS noted that the Association of American Railroads (“AAR”) Wireless Communications Committee selected IEEE 802.16t ("dot16") upgrade 160 MHz LMR voice network. dot16 has already been adopted across 900 MHz and 450 MHz frequencies.
This places ONDS for a multi-year upgrade cycle across all AAR-owned frequencies, covering thousands of miles of railroad infrastructure across North America. It is working on expanding the ecosystem of dot16-enabled third-party applications.
It expects “meaningful adoption” by the railroads in 2026 for dot16, but at present has “modest revenue expectations from Ondas Networks relative to the OAS business”.
Balance Sheet & Guidance Raise
As of Sept. 30, 2025, Ondas had $433.4 million in cash, cash equivalents and restricted cash and has raised $855 million since June to fund its aggressive expansion plans.
For the nine months ended Sept. 30, cash used in operating activities was $26 million compared with $25.4 million used in the first nine months of 2024.
Given the strong momentum, Ondas now expects revenues for the full year to be at least $36 million (previous target: $25 million), with fourth-quarter revenues estimated to be more than $15 million. Management anticipates revenues in 2026 to be at least $110 million, driven by increasing customer base, backlog and acquisitions.
Image Source: Zacks Investment Research
Analysts have sharply revised upwards their estimates for the current quarter in the past 60 days.
ONDS Stock Outperforms Peers
ONDS’ shares have skyrocketed 665.8% over the past six months, outperforming the Communication-Network software industry’s decline of 15.8%. The S&P 500 composite and the Zacks Computer and Technology sector have risen 28.8% and 18.3%, respectively, in the same time frame.
ONDS’ Price Performance vs. Peers
Image Source: Zacks Investment Research
Draganfly ((DPRO - Free Report) ), Unusual Machines ((UMAC - Free Report) ) and AeroVironment ((AVAV - Free Report) ) stocks are up 281.1%, 76.1% and 78.6%, 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 33.11X compared with the industry’s 1.88X. The premium valuation is justified to an extent due to the company’s hyper revenue growth and robust backlog.
ONDS: Buy for Now
Ondas’ operational momentum, underpinned by surging OAS revenues, an expanding backlog and higher penetration across defense and homeland security markets, bodes well. Yet, ONDS still comes with execution risks and ongoing cash burn, which are typical of emerging technology companies.
However, with a Zacks Rank #2 (Buy), ONDS remains a compelling high-value play. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.