Ondas (NASDAQ:ONDS) Issues Quarterly Earnings Results, Misses Expectations By $0.10 EPS

Ondas (NASDAQ:ONDS) released its earnings results on Thursday. The company reported ($0.19) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.09) by ($0.10), FiscalAI reports. Ondas had a negative return on equity of 14.17% and a net margin of 247.85%.The business had revenue of $83.77 million for the quarter, compared to analyst estimates of $67.97 million.

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 Stock Up 3.7%

Ondas stock traded up $0.33 during midday trading on Friday, reaching $9.24. The company’s stock had a trading volume of 96,190,462 shares, compared to its average volume of 85,588,648. The company has a market cap of $5.27 billion, a P/E ratio of 231.00 and a beta of 2.72. The business has a 50-day simple moving average of $8.29 and a 200-day simple moving average of $9.52. Ondas has a fifty-two week low of $3.20 and a fifty-two week high of $15.28.

Ondas News Roundup

Here are the key news stories impacting Ondas this week:

• Positive Sentiment: Ondas reported second-quarter revenue of approximately $83.8 million, more than 13 times higher than the prior-year period and above analysts’ expectations. The company raised its 2026 revenue outlook to $525 million-$550 million, citing broad demand and several programs expected to ramp in the second half. Ondas Posts Wider-Than-Expected Q2 Loss, Delivers Solid Revenue Growth
• Positive Sentiment: The company entered the second half with a reported $757 million backlog and strong order momentum, offering potential visibility for future revenue growth. Management also said it is working toward adjusted EBITDA profitability sooner than previously anticipated. Ondas Q2 Earnings Call Lifts Outlook and Profitability Timeline
• Positive Sentiment: Ondas won a multimillion-dollar Israeli defense tender for next-generation tactical attack drones, expanding its international defense opportunity. Needham reaffirmed its Buy rating and set a $19 price target, implying substantial upside from recent trading levels.
• Positive Sentiment: Reports of a potential 100% tariff on foreign drones helped lift U.S.-focused drone stocks, including Ondas, by improving the perceived competitive position of domestic suppliers. Unusual Machines Soars, Red Cat Climbs, Ondas Gains on Trump’s Drone Tariff
• Neutral Sentiment: Unusually high call-option activity and elevated short interest may be amplifying volatility and supporting a speculative bullish trading setup, but these signals do not change the company’s underlying fundamentals.
• Negative Sentiment: Profitability remains a concern. Coverage highlighted a wider-than-expected quarterly loss and an adjusted EBITDA loss of approximately $50.6 million, which initially pressured the stock despite the improved revenue outlook.

Analyst Ratings Changes

A number of research firms have recently weighed in on ONDS. Needham & Company LLC reaffirmed a “buy” rating and set a $19.00 price objective on shares of Ondas in a research report on Friday. Weiss Ratings cut Ondas from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Tuesday, August 4th. Wall Street Zen downgraded Ondas from a “hold” rating to a “sell” rating in a report on Sunday, May 24th. LADENBURG THALM/SH SH upgraded Ondas to a “strong-buy” rating in a research note on Wednesday, May 6th. Finally, Oppenheimer boosted their price objective on Ondas from $16.00 to $18.00 and gave the stock an “outperform” rating in a research report on Friday. Two 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 issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $16.56.

Insider Transactions at Ondas

In other news, Director Richard M. Cohen sold 7,500 shares of the stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $9.50, for a total value of $71,250.00. Following the transaction, the director owned 264,853 shares in the company, valued at approximately $2,516,103.50. This represents a 2.75% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Eric A. Brock sold 2,378,245 shares of the firm’s stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $13.43, for a total value of $31,939,830.35. Following the sale, the chief executive officer directly owned 3,583,010 shares in the company, valued at $48,119,824.30. This trade represents a 39.90% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders sold 2,395,745 shares of company stock valued at $32,109,380. 1.67% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of ONDS. IFP Advisors Inc boosted its stake in Ondas by 231.4% in the third quarter. IFP Advisors Inc now owns 4,142 shares of the company’s stock valued at $32,000 after acquiring an additional 2,892 shares in the last quarter. Federation des caisses Desjardins du Quebec increased 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 buying an additional 3,063 shares during the period. Wells Fargo & Company MN increased its position in Ondas by 10.3% during the fourth quarter. Wells Fargo & Company MN now owns 36,052 shares of the company’s stock worth $352,000 after buying an additional 3,352 shares during the period. Steward Partners Investment Advisory LLC lifted its stake in Ondas by 1,005.0% in the fourth quarter. Steward Partners Investment Advisory LLC now owns 4,398 shares of the company’s stock valued at $43,000 after buying an additional 4,000 shares during the last quarter. Finally, The Manufacturers Life Insurance Company lifted its stake in Ondas by 32.3% in the fourth quarter. The Manufacturers Life Insurance Company now owns 16,947 shares of the company’s stock valued at $165,000 after buying an additional 4,142 shares during the last quarter. Institutional investors and hedge funds own 37.73% of the company’s stock.

About Ondas

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.