Ondas (NASDAQ:ONDS) Releases Quarterly Earnings Results, Misses Estimates By $0.10 EPS

Ondas (NASDAQ:ONDS) issued its quarterly earnings data on Thursday. The company reported ($0.19) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.09) by ($0.10), FiscalAI reports. The company had revenue of $83.77 million during the quarter, compared to analyst estimates of $67.97 million. Ondas had a net margin of 93.55% and a negative return on equity of 19.02%.

Here are the key takeaways from Ondas’ conference call:

• Positive Sentiment: Q2 revenue reached approximately $83.8 million, up 67% sequentially and more than 13-fold year over year; management cited approximately 85% pro forma organic growth and raised full-year 2026 revenue guidance to $525 million–$550 million.
• Positive Sentiment: Pro forma backlog rose to approximately $757 million, while the two-year strategic pipeline exceeded $11 billion and Q3-to-date orders totaled about $105 million, supporting management’s expectation of a significant second-half revenue ramp.
• Positive Sentiment: Management expects operating leverage to emerge as revenue scales, projecting profitability for the Ondas Autonomous Systems and Ondas Sentinel platform in Q4 2026 and company-wide adjusted EBITDA profitability in Q4 2027; it also expects to exit 2026 at a $1 billion annualized revenue run rate.
• Negative Sentiment: Adjusted cash operating expenses rose to approximately $93 million and adjusted EBITDA was a loss of about $51 million in Q2, reflecting front-loaded integration and growth investments; management also expects some second-half gross-margin pressure from product mix and excess capacity, while acknowledging ongoing supply-chain challenges.

Ondas Trading Up 3.6%

Shares of ONDS stock opened at $9.23 on Friday. The company has a market capitalization of $5.26 billion, a P/E ratio of -131.86 and a beta of 2.72. The business’s 50 day moving average is $8.27 and its two-hundred day moving average is $9.52. Ondas has a 12-month low of $3.20 and a 12-month high of $15.28.

Insider Buying and Selling at Ondas

In other news, Director Richard M. Cohen sold 7,500 shares of the business’s stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $9.50, for a total value of $71,250.00. Following the completion of the sale, the director directly owned 264,853 shares in the company, valued at $2,516,103.50. The trade was a 2.75% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Eric A. Brock sold 2,378,245 shares of the business’s stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $13.43, for a total transaction of $31,939,830.35. Following the completion of the sale, the chief executive officer directly owned 3,583,010 shares of the company’s stock, valued at approximately $48,119,824.30. The trade was a 39.90% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 2,395,745 shares of company stock valued at $32,109,380. Company insiders own 1.67% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. IFP Advisors Inc grew its holdings in shares of Ondas by 231.4% during the third quarter. IFP Advisors Inc now owns 4,142 shares of the company’s stock worth $32,000 after buying an additional 2,892 shares in the last quarter. Steward Partners Investment Advisory LLC boosted its position in Ondas by 1,005.0% during the fourth quarter. Steward Partners Investment Advisory LLC now owns 4,398 shares of the company’s stock worth $43,000 after acquiring an additional 4,000 shares during the last quarter. Federation des caisses Desjardins du Quebec boosted its position in Ondas by 228.6% during the fourth quarter. Federation des caisses Desjardins du Quebec now owns 4,403 shares of the company’s stock worth $43,000 after acquiring an additional 3,063 shares during the last quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA purchased a new stake in Ondas during the 4th quarter valued at about $47,000. Finally, State of Wyoming purchased a new stake in Ondas during the 4th quarter valued at about $51,000. 37.73% of the stock is owned by institutional investors and hedge funds.

Ondas News Summary

Here are the key news stories impacting Ondas this week:

• Positive Sentiment: Ondas raised its 2026 revenue forecast to $525 million-$550 million, up from its previous outlook, and said it is working to convert a $757 million backlog into revenue. Management also indicated that adjusted EBITDA profitability could arrive sooner as major programs ramp. Ondas Q2 Earnings Call Lifts Outlook and Profitability Timeline
• Positive Sentiment: Second-quarter revenue increased more than 13-fold year over year to approximately $83.8 million, exceeding the roughly $68 million consensus estimate. The company cited strong order momentum and several programs expected to accelerate growth in the second half of 2026. Ondas Posts Wider-Than-Expected Q2 Loss, Delivers Solid Revenue Growth
• Positive Sentiment: Ondas won a multi-million-dollar Israeli defense tender for next-generation tactical attack drones, expanding its international defense opportunity. Needham reaffirmed its Buy rating and maintained a $19 price target, well above the referenced trading level. Ondas Wins Israeli Defense Tender for Next-Gen Tactical Attack Drones
• Neutral Sentiment: Unusually heavy call-option buying and short interest near 40% could amplify volatility and create the potential for additional momentum, but these signals do not change the company’s fundamentals.
• Negative Sentiment: Despite the revenue beat and higher guidance, quarterly losses were wider than expected. Reports cited an adjusted EBITDA loss of approximately $50.6 million, highlighting ongoing execution and profitability risks. The stock’s elevated valuation also leaves it sensitive to disappointment. Trends Making Noise on Wall Street Today

Analysts Set New Price Targets

ONDS has been the subject of several recent research reports. Oppenheimer lifted their price target on Ondas from $16.00 to $18.00 and gave the company an “outperform” rating in a research report on Friday. Weiss Ratings cut shares of Ondas from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Tuesday, August 4th. Needham & Company LLC reaffirmed a “buy” rating and set a $19.00 target price on shares of Ondas in a report on Friday. Roth Capital assumed coverage on shares of Ondas in a research note on Tuesday. They issued a “buy” rating and a $13.00 target price for the company. Finally, Wall Street Zen downgraded shares of Ondas from a “sell” rating to a “strong sell” rating in a report on Saturday. Two equities research analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $16.56.

Ondas Company Profile

Ondas Holdings, Inc (NASDAQ: ONDS) develops secure private wireless networking solutions and unmanned aircraft systems tailored to mission-critical industrial applications. Its Ondas Networks division offers the proprietary FullMAX platform, a long-range, high-bandwidth broadband network designed to support real-time data transmission, remote monitoring and IoT deployments across rail, maritime and infrastructure environments. The broadband platform integrates edge-to-cloud architecture to ensure operational resilience and regulatory compliance for transportation and utility operators.

The company’s Ondas Autonomous Systems segment builds heavy-lift cargo drones and uncrewed aircraft platforms for logistics, pipeline and infrastructure inspection, emergency response and other government and commercial use cases.