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Ondas to Report Q3 Earnings: Can Orders and Acquisitions Fuel Growth?
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Key Takeaways
Ondas expects Q3 revenues of $140M-$155M, up sharply from $83.8M in Q2, supported by strong order momentum.
ONDS secured over $270M in orders since June 30, acquisitions expanded its defense and counter-UAS portfolio.
Ondas targets Q4 operating-platform EBITDA profitability, but margin pressure and integration risks persist.
Ondas Inc. (ONDS - Free Report) will release results for the third quarter of 2026 on Nov. 12.
The Zacks Consensus Estimate for the third-quarter bottom line is pinned at a loss of 9 cents, unchanged in the past 60 days. The same for revenues stands at $147.1 million, indicating a 1,355.9% jump from the year-ago actual.
Image Source: Zacks Investment Research
Ondas projected third-quarter revenues between $140 million and $155 million, representing a significant sequential increase from the $83.8 million reported in the second quarter.
Ondas Autonomous Systems (“OAS”) is the company’s primary growth engine. Robust M&A activity and strong order momentum are key factors underpinning rapid OAS scaling.
ONDS: Key Insights Ahead of Q3
Ondas’ order momentum is likely to have supported its top line in the to-be-reported quarter. On Oct. 7, 2026, the company announced that it has secured more than $165 million in aggregate orders from the second half of August through Oct. 1. This, when combined with roughly $105 million of orders disclosed on the last earnings call (Aug. 13), brings total orders to more than $270 million since June 30, improving revenue visibility into 2027.
Management noted that broad-based strength across product categories and geographies contributed to strong order activity. Importantly, the latest wins include strategically significant orders for ULTRA and IonStrike, with both platforms progressing through key customer-validation milestones. ONDS acquired ULTRA through the DZYNE buyout. ULTRA is a long-endurance autonomous aircraft delivering multi-day ISR, while IonStrike targets the growing counter-UAS market, including defense against Shahed-class drones.
The orders also include the recent $56 million Electronic Safe & Arm Devices ("ESAD") award, supporting a European loitering munition program. The order represents an important early commercial development following Ondas’ acquisition of GATE Technologies and Bron Technologies in September.
Ondas continues to pursue aggressive M&A. In September, apart from GATE Technologies and Bron Technologies, Ondas also acquired three defense technology businesses (Insignito, Ottopia Defense and Caribou Labs) for $56 million, payable in cash or its common stock, with potential performance-based earn-outs of up to $32 million based upon achieving key performance milestones through 2028. In August, it entered into a definitive agreement to acquire Aran Defense Ltd., the defense division of Aran Ltd., for approximately $33 million in cash or common stock. Aran Defense would expand Ondas’ Israeli engineering and manufacturing capacity, including roughly 4,400 square meters of facilities. The company initially expected the transaction to close in the third quarter, but completion has not been officially confirmed.
The July acquisition of DZYNE expanded its exposure to long-endurance ISR, counter-UAS, and precision-strike while and August acquisition of Cyberhawk broadens the company’s footprint in the critical infrastructure inspection markets.
Investors will also be watching for updates on Ondas' precision-strike business. During the second-quarter earnings call, management highlighted more than $240 million in orders associated with the U.S. Army's $982 million Lethal Unmanned Strike IDIQ program, with deliveries expected to commence in the second half of 2026 and continue into 2027.
Aerial security and counter-UAS represent another strong growth pillar. Ondas is combining DZYNE's Sawtooth technology with Sentrycs' Cyber-over-RF capabilities for counter-UAS applications. Meanwhile, IonStrike (through DZYNE) is expected to begin receiving commercial-volume orders and initial deliveries during the second half of 2026.
ONDS is expanding its counter-drone reach through innovation. In September, Ondas launched Dronebuster REACH, extending its non-kinetic counter-UAS capabilities. The first Dronebuster REACH system is already under contract for delivery to the Office of Naval Research following customer acceptance testing. The system will support C-UAS research, evaluation and testing activities, providing an early validation point for Ondas’ new product.
Challenges for ONDS
For all the excitement surrounding revenue growth, second-half ramp and profitability remain the key tests for ONDS. The company updated its full-year revenue outlook to $525-$550 million from the previous target of at least $525 million, with the revised guidance incorporating expected second-half contributions from Cyberhawk, representing more than 10 times the reported figure for 2025. At the midpoint, the outlook implies more than 30% year-over-year organic growth on a pro forma basis. The pace of order conversion and production scaling will determine whether ONDS can deliver the steep second-half ramp embedded in its outlook.
Coming to profitability, second-quarter operating expenses were $199 million, substantially exceeding the quarterly revenues of $83.8 million. At the last earnings call, management cautioned about some gross-margin pressure during the second half of 2026 because of product mix and excess capacity associated with newly acquired businesses.
However, the company expects adjusted EBITDA losses to narrow beginning in the third quarter and has pulled forward its profitability timeline. Management now targets adjusted EBITDA profitability for the operating platform, including OAS and Ondas Sentinel, by the fourth quarter of 2026 and company-wide adjusted EBITDA profitability by the fourth quarter of 2027.
The rapid pace of acquisitions also creates execution risks. Integrating multiple businesses into a broader portfolio while meeting rising delivery schedules increases execution risk across systems, manufacturing and product roadmaps. Delays could slow backlog conversion and postpone expected operating leverage. The company faces stiff competition in the drone space from established and upcoming players, including AeroVironment (AVAV - Free Report) , Kratos Defense & Security Solutions (KTOS - Free Report) and Red Cat Holdings (RCAT - Free Report) .
Key Recent Developments
Beyond the third-quarter results, investors are likely to focus on Ondas' latest commercial wins and strategic developments.
On Nov. 5, 2026, Ondas announced plans to expand production of ULTRA, including in the United States, targeting 10 aircraft monthly by 2028. Ondas also signed a definitive agreement to acquire Stemme GmbH, which is ULTRA's airframe manufacturer, in an all-cash transaction to support this production expansion.
On Nov. 4, the company also announced multimillion-dollar counter-UAS contracts with government customers in Europe and Asia, demonstrating continued international demand.
Ondas is also strengthening its position in the airborne defense and aircraft protection market following the successful installation and European Union Aviation Safety Agency certification of the Airborne Missile Protection System (“AMPS”) on the Bombardier Global 7500 aircraft. Developed by its subsidiary BIRD Aerosystems, AMPS incorporates advanced missile warning, threat detection and confirmation, tracking and directional infrared countermeasures capabilities to protect aircraft against infrared-guided missile threats.
Last month, Ondas announced the formation of Regna AI, a standalone private company focused on developing and deploying mission-specific AI models within customer-controlled environments. Initially wholly owned by Ondas and supported by Palantir's technology, Regna AI aims to help governments, defense organizations and enterprises adopt sovereign AI solutions for mission-critical operations.
Earnings Whispers for ONDS
Our proven model does not predict an earnings beat for Ondas 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 #3 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.
ONDS’ shares have lost 49.1% in the past six months, underperforming the Wireless-National industry’s growth of 104%. The S&P 500 composite is up 2.9% while the Zacks Computer and Technology sector is down 4.6%, over the same time frame.
Price Perfomance
Image Source: Zacks Investment Research
RCAT, KTOS and AVAV have lost 67.1%, 41.4% and 39.3%, respectively, over the same time frame
ONDS: Valuation Leaves Room for Debate
ONDS stock is trading at a forward 12-month price-to-sales of 2.72X compared with the industry’s 6.06X.
Image Source: Zacks Investment Research
In comparison, RCAT, KTOS and AVAV trade at multiples of 2.14X, 2.91X and 2.18X, respectively.
How to Approach ONDS Before Q3 Earnings Release
Ondas’ strong order momentum, expanding defense portfolio and acquisitions bode well for long-term growth. However, persistent losses, integration risks and the need to demonstrate operating leverage warrant a cautious approach.
Existing investors may continue holding the stock, while new investors could wait for greater clarity on profitability and execution following the third-quarter results.
View the Zacks #1 Rank List
Image: Bigstock
Ondas to Report Q3 Earnings: Can Orders and Acquisitions Fuel Growth?
Key Takeaways
Ondas Inc. (ONDS - Free Report) will release results for the third quarter of 2026 on Nov. 12.
The Zacks Consensus Estimate for the third-quarter bottom line is pinned at a loss of 9 cents, unchanged in the past 60 days. The same for revenues stands at $147.1 million, indicating a 1,355.9% jump from the year-ago actual.
Image Source: Zacks Investment Research
Ondas projected third-quarter revenues between $140 million and $155 million, representing a significant sequential increase from the $83.8 million reported in the second quarter.
Ondas Autonomous Systems (“OAS”) is the company’s primary growth engine. Robust M&A activity and strong order momentum are key factors underpinning rapid OAS scaling.
ONDS: Key Insights Ahead of Q3
Ondas’ order momentum is likely to have supported its top line in the to-be-reported quarter. On Oct. 7, 2026, the company announced that it has secured more than $165 million in aggregate orders from the second half of August through Oct. 1. This, when combined with roughly $105 million of orders disclosed on the last earnings call (Aug. 13), brings total orders to more than $270 million since June 30, improving revenue visibility into 2027.
Management noted that broad-based strength across product categories and geographies contributed to strong order activity. Importantly, the latest wins include strategically significant orders for ULTRA and IonStrike, with both platforms progressing through key customer-validation milestones. ONDS acquired ULTRA through the DZYNE buyout. ULTRA is a long-endurance autonomous aircraft delivering multi-day ISR, while IonStrike targets the growing counter-UAS market, including defense against Shahed-class drones.
The orders also include the recent $56 million Electronic Safe & Arm Devices ("ESAD") award, supporting a European loitering munition program. The order represents an important early commercial development following Ondas’ acquisition of GATE Technologies and Bron Technologies in September.
Ondas Holdings Inc. Price and EPS Surprise
Ondas Holdings Inc. price-eps-surprise | Ondas Holdings Inc. Quote
Ondas continues to pursue aggressive M&A. In September, apart from GATE Technologies and Bron Technologies, Ondas also acquired three defense technology businesses (Insignito, Ottopia Defense and Caribou Labs) for $56 million, payable in cash or its common stock, with potential performance-based earn-outs of up to $32 million based upon achieving key performance milestones through 2028. In August, it entered into a definitive agreement to acquire Aran Defense Ltd., the defense division of Aran Ltd., for approximately $33 million in cash or common stock. Aran Defense would expand Ondas’ Israeli engineering and manufacturing capacity, including roughly 4,400 square meters of facilities. The company initially expected the transaction to close in the third quarter, but completion has not been officially confirmed.
The July acquisition of DZYNE expanded its exposure to long-endurance ISR, counter-UAS, and precision-strike while and August acquisition of Cyberhawk broadens the company’s footprint in the critical infrastructure inspection markets.
Investors will also be watching for updates on Ondas' precision-strike business. During the second-quarter earnings call, management highlighted more than $240 million in orders associated with the U.S. Army's $982 million Lethal Unmanned Strike IDIQ program, with deliveries expected to commence in the second half of 2026 and continue into 2027.
Aerial security and counter-UAS represent another strong growth pillar. Ondas is combining DZYNE's Sawtooth technology with Sentrycs' Cyber-over-RF capabilities for counter-UAS applications. Meanwhile, IonStrike (through DZYNE) is expected to begin receiving commercial-volume orders and initial deliveries during the second half of 2026.
ONDS is expanding its counter-drone reach through innovation. In September, Ondas launched Dronebuster REACH, extending its non-kinetic counter-UAS capabilities. The first Dronebuster REACH system is already under contract for delivery to the Office of Naval Research following customer acceptance testing. The system will support C-UAS research, evaluation and testing activities, providing an early validation point for Ondas’ new product.
Challenges for ONDS
For all the excitement surrounding revenue growth, second-half ramp and profitability remain the key tests for ONDS. The company updated its full-year revenue outlook to $525-$550 million from the previous target of at least $525 million, with the revised guidance incorporating expected second-half contributions from Cyberhawk, representing more than 10 times the reported figure for 2025. At the midpoint, the outlook implies more than 30% year-over-year organic growth on a pro forma basis. The pace of order conversion and production scaling will determine whether ONDS can deliver the steep second-half ramp embedded in its outlook.
Coming to profitability, second-quarter operating expenses were $199 million, substantially exceeding the quarterly revenues of $83.8 million. At the last earnings call, management cautioned about some gross-margin pressure during the second half of 2026 because of product mix and excess capacity associated with newly acquired businesses.
However, the company expects adjusted EBITDA losses to narrow beginning in the third quarter and has pulled forward its profitability timeline. Management now targets adjusted EBITDA profitability for the operating platform, including OAS and Ondas Sentinel, by the fourth quarter of 2026 and company-wide adjusted EBITDA profitability by the fourth quarter of 2027.
The rapid pace of acquisitions also creates execution risks. Integrating multiple businesses into a broader portfolio while meeting rising delivery schedules increases execution risk across systems, manufacturing and product roadmaps. Delays could slow backlog conversion and postpone expected operating leverage. The company faces stiff competition in the drone space from established and upcoming players, including AeroVironment (AVAV - Free Report) , Kratos Defense & Security Solutions (KTOS - Free Report) and Red Cat Holdings (RCAT - Free Report) .
Key Recent Developments
Beyond the third-quarter results, investors are likely to focus on Ondas' latest commercial wins and strategic developments.
On Nov. 5, 2026, Ondas announced plans to expand production of ULTRA, including in the United States, targeting 10 aircraft monthly by 2028. Ondas also signed a definitive agreement to acquire Stemme GmbH, which is ULTRA's airframe manufacturer, in an all-cash transaction to support this production expansion.
On Nov. 4, the company also announced multimillion-dollar counter-UAS contracts with government customers in Europe and Asia, demonstrating continued international demand.
Ondas is also strengthening its position in the airborne defense and aircraft protection market following the successful installation and European Union Aviation Safety Agency certification of the Airborne Missile Protection System (“AMPS”) on the Bombardier Global 7500 aircraft. Developed by its subsidiary BIRD Aerosystems, AMPS incorporates advanced missile warning, threat detection and confirmation, tracking and directional infrared countermeasures capabilities to protect aircraft against infrared-guided missile threats.
Last month, Ondas announced the formation of Regna AI, a standalone private company focused on developing and deploying mission-specific AI models within customer-controlled environments. Initially wholly owned by Ondas and supported by Palantir's technology, Regna AI aims to help governments, defense organizations and enterprises adopt sovereign AI solutions for mission-critical operations.
Earnings Whispers for ONDS
Our proven model does not predict an earnings beat for Ondas 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 #3 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.
You can see the complete list of today’s Zacks #1 Rank stocks here.
ONDS Stock Performance vs. Peers
ONDS’ shares have lost 49.1% in the past six months, underperforming the Wireless-National industry’s growth of 104%. The S&P 500 composite is up 2.9% while the Zacks Computer and Technology sector is down 4.6%, over the same time frame.
Price Perfomance
Image Source: Zacks Investment Research
RCAT, KTOS and AVAV have lost 67.1%, 41.4% and 39.3%, respectively, over the same time frame
ONDS: Valuation Leaves Room for Debate
ONDS stock is trading at a forward 12-month price-to-sales of 2.72X compared with the industry’s 6.06X.
Image Source: Zacks Investment Research
In comparison, RCAT, KTOS and AVAV trade at multiples of 2.14X, 2.91X and 2.18X, respectively.
How to Approach ONDS Before Q3 Earnings Release
Ondas’ strong order momentum, expanding defense portfolio and acquisitions bode well for long-term growth. However, persistent losses, integration risks and the need to demonstrate operating leverage warrant a cautious approach.
Existing investors may continue holding the stock, while new investors could wait for greater clarity on profitability and execution following the third-quarter results.