Key Takeaways
- Ondas shares declined approximately 4-5% during Thursday’s premarket session following second-quarter earnings
- Quarterly revenue reached an all-time high of $83.8 million, representing a 1,236% year-over-year increase and surpassing the $68 million consensus estimate
- Adjusted EBITDA losses expanded to $50.6 million, significantly exceeding the anticipated $31.6 million loss
- 2026 full-year revenue outlook increased to $525-$550 million, up from the prior target of at least $390 million
- Current backlog totals approximately $757 million, a substantial increase from $68.3 million at 2025 year-end
Ondas Holdings delivered unprecedented second-quarter revenue results totaling $83.8 million, marking a massive 1,236% surge compared to the $6.3 million reported in the same period last year. The figure significantly exceeded Wall Street’s projection of approximately $68 million. Despite the impressive top-line performance, shares fell roughly 4-5% in Thursday’s premarket session, trading at $9.36.
The selloff stems primarily from the bottom-line performance. The company disclosed an adjusted EBITDA loss totaling $50.6 million during the quarter. This figure came in well above the Street’s expectation of a $31.6 million loss, representing a substantial shortfall.
The adjusted loss per share registered at $0.19, compared to analyst estimates calling for a $0.10 loss.
Sequential revenue growth was equally impressive, climbing 67% from the $50.1 million recorded in the first quarter. This type of quarter-to-quarter acceleration demonstrates significant business momentum.
Operating expenses totaled $199.1 million during the period. Notably, $105.8 million of this amount represented non-cash charges, which included $67.6 million attributed to stock-based compensation.
The company closed the quarter holding $1.4 billion in combined cash, cash equivalents, restricted cash, and short-term investments.
Updated Financial Outlook
Notwithstanding the earnings miss, company leadership increased its 2026 full-year revenue projection to a range of $525 million to $550 million. This represents a significant upgrade from the previous outlook of at least $390 million. The revised midpoint of $537.5 million exceeds the analyst consensus figure of $525 million.
Looking ahead to the third quarter, Ondas projects revenue between $140 million and $155 million.
CEO Eric Brock emphasized the company’s strong operational execution. “Our team at Ondas is performing at a high level, as evidenced by our record second-quarter results, headlined by strong revenue growth and continued bookings momentum across our business,” Brock stated.
Management attributes the expanding losses to strategic investments in platform development and corporate infrastructure designed to fuel revenue growth throughout the latter half of 2026 and into future periods.
Bookings and Contract Backlog
During the second quarter, Ondas captured $175 million worth of new contracts. The company subsequently added another $105 million in bookings through the third quarter to date.
The contract backlog totaled $613 million as of June 30. When adjusted on a pro forma basis to include the recently completed DZYNE and Cyberhawk acquisitions in Q3, the backlog swells to approximately $757 million. This represents a dramatic expansion from the $68.3 million backlog reported at the conclusion of 2025.
Ondas operates as a Palantir partner and specializes in AI-driven autonomous drone systems. The Florida-based company headquartered in West Palm Beach has experienced a 30% stock price increase throughout August, though shares remain relatively flat year-to-date prior to this earnings release.
Management anticipates adjusted EBITDA losses will decrease on a sequential basis in the third quarter and projects the company will achieve profitability before the conclusion of 2027.
Ondas concluded the second quarter with $1.4 billion in cash and short-term investment holdings.
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