Ondas Posts Record Q3 2026 Revenue of $167.5 Million on Strong Bookings and Backlog Growth; Raises Full-Year Outlook
Ondas Inc. (ONDS) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Ondas Posts Record Q3 2026 Revenue of $167.5 Million on Strong Bookings and Backlog Growth; Raises Full-Year Outlook Record Q3 revenue of $167.5 million, up 100% sequentially and more than 16-fold year over year; pro forma organic revenue grew 64% year-over-year Capt
How this was made
The 30-second read
Why it matters
The raised revenue outlook and record backlog suggest strong demand for its autonomous defense platforms, likely supporting a price rally.
Market read
First‑report earnings with raised guidance for a defense‑tech firm, offering a clear catalyst for short‑term price movement.
What to watch
Execution risk on integrating recent acquisitions and achieving adjusted EBITDA break‑even may temper upside.
Ondas reports record Q3 2026 revenue of $167.5 million, raises FY2026 revenue target to at least $550 million, and pulls forward company-wide Adjusted EBITDA break-even to Q3 2027
Revenue rose to $167.5 million from $83.8 million in Q2 2026 and $10.1 million in Q3 2025, and the company raised its FY2026 revenue target. Gross margin fell to 21.8% (GAAP) from 43.1% in Q2 2026, operating loss widened to $189.5 million, GAAP net loss was $64.7 million, and Adjusted EBITDA loss was $59.7 million versus $46.2 million in Q2 2026.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenues, net, Q3 2026GAAP | $167.5M | up 100% sequentially | more than 16-fold increase |
| Pro forma organic revenue growth, Q3 2026other | 64% | – | 64% year-over-year (pro forma organic) |
| Gross profit, Q3 2026GAAP | $36.5M | – | – |
| Gross margin, Q3 2026GAAP | 21.8% | – | – |
| Adjusted Gross Profit, Q3 2026non-GAAP | $58.3M | – | – |
| Adjusted Gross Margin, Q3 2026non-GAAP | 34.8% | – | – |
| Total operating expenses, Q3 2026GAAP | $226M | – | – |
| General and administrative expense, Q3 2026GAAP | $124.6M | – | – |
| Sales and marketing expense, Q3 2026GAAP | $36.67M | – | – |
| Research and development expense, Q3 2026GAAP | $61.6M | up $30 million sequentially | – |
| Change in fair value of contingent consideration, Q3 2026GAAP | $3.09M | – | – |
| Operating loss, Q3 2026GAAP | −$189.5M | – | – |
| Interest expense, Q3 2026GAAP | −$615K | – | – |
| Total other income (expense), net, Q3 2026GAAP | $133.1M | – | – |
| Provision for income taxes, Q3 2026GAAP | $8.25M | – | – |
| Net loss, Q3 2026GAAP | −$64.7M | – | – |
| Net loss attributable to Ondas Inc. stockholders, Q3 2026GAAP | −$62.57M | – | – |
| Net loss per share, basic and diluted, Q3 2026GAAP | $(0.10) | – | – |
| Adjusted Cash Operating Expenses, Q3 2026non-GAAP | $118.7M | – | – |
| Adjusted EBITDA, Q3 2026non-GAAP | −$59.66M | – | – |
| Total revenues, net, nine months 2026GAAP | $301.4M | – | – |
| Gross profit, nine months 2026GAAP | $95.80M | – | – |
| Gross margin, nine months 2026GAAP | 31.8% | – | – |
| Adjusted Gross Profit, nine months 2026non-GAAP | $124.9M | – | – |
| Adjusted Gross Margin, nine months 2026non-GAAP | 41.4% | – | – |
| Total operating expenses, nine months 2026GAAP | $490.9M | – | – |
| Operating loss, nine months 2026GAAP | −$395.1M | – | – |
| Adjusted Cash Operating Expenses, nine months 2026non-GAAP | $242.9M | – | – |
| Net income (loss), nine months 2026GAAP | $206.9M | – | – |
| Net income per share, diluted, nine months 2026GAAP | $0.27 | – | – |
| Adjusted EBITDA, nine months 2026non-GAAP | −$116.8M | – | – |
| Backlog, September 30, 2026other | $835M | increased 36% sequentially | – |
| New orders captured, Q3 2026other | $214M | – | – |
| Cash, cash equivalents, restricted cash and short-term investments, September 30, 2026other | $820.3M | – | – |
FY2026 (full year), Q4 2026 and FY2027 outlook
- RevenueFY2026: at least $550 million (raised from the prior target of between $525 and $550 million as stated in the release). Q4 2026: greater than $250 million. FY2027: at least $1.1 billion, excluding additional acquisitions.
- Gross marginCompany expects similar gross margin levels in Q4 2026 due to mix, with recovery to historical levels and normal quarterly variability. No percentage given.
- NotePro forma organic year-over-year revenue growth of at least 75% for Q4 2026
- NoteFY2026 revenue growth of greater than 10x reported 2025 results (company projection)
- NoteFY2027 revenue growth of 100% year over year and more than 40% year-over-year organic growth (company projection)
- NoteAdjusted EBITDA profitability at the operating-platform level (OAS and Ondas Sentinel) in Q4 2026, reiterated
- NoteCompany-wide Adjusted EBITDA break-even moved to Q3 2027 from Q4 2027
- NoteBacklog expected to grow sequentially in Q4 2026
- NoteContinued volume shipments under orders captured by Mistral under the $982 million LUS IDIQ award with the U.S. Army
- NoteVolume deliveries expected to begin in Q4 2026 for the $140 million combat engineering vehicles program
Capital returns
- No share repurchases or dividends are reported in the filing.
What drove it
- Company states the revenue increase reflects platform scale, shared technology and expanded customer access, along with strong performance across the portfolio, particularly C-UAS systems, precision strike and land systems.
- Company states the sequential decline in gross margin was related to higher amortization of capitalized intellectual property, the step-up in acquired inventory associated with purchase accounting, and inefficiencies in the early stages of ramping large programs.
- Company states the Adjusted Gross Margin decline reflects production and delivery inefficiencies, particularly in the precision strike segment, which represented a disproportionate share of revenue in the period.
- Company states operating expenses increased mainly due to $88.1 million of non-cash expenses, including $57.8 million of stock-based compensation and $25.3 million of amortization expense, plus $14.1 million of acquisition-related cash expenses.
- Company states other income includes non-cash gains of $125.1 million relating to warrants issued in connection with the October 2025 and January 2026 equity raises, remeasured at fair value each period.
- Company states it completed six strategic acquisitions in the period, including DZYNE Technologies, Cyberhawk, Gate/Bron, Ottopia, Insignito and Caribou Labs.
- Company states revenue growth in Q4 2026 is expected to be supported by backlog, production and delivery ramps in ULTRA and IonStrike, and volume deliveries across existing programs.
Concerns
- GAAP gross margin fell to 21.8% from 43.1% in Q2 2026, and Adjusted Gross Margin fell to 34.8% from 50.4%.
- Operating loss of $189.5 million and GAAP net loss of $64.7 million for Q3 2026, against net loss of $89.7 million in Q2 2026.
- Adjusted EBITDA loss of $59.7 million, wider than the $46.2 million loss in Q2 2026.
- Total operating expenses of $226.0 million, up from $199.1 million in Q2 2026, with R&D up $30 million sequentially.
- Total other income of $133.1 million relies on non-cash warrant gains, which the company says can create volatility in reported earnings unrelated to core operations.
- Warrant liability of $918,632 thousand and goodwill plus intangibles of roughly $2.5 billion as printed balance sheet lines, from a base of $1.1 billion total assets at December 31, 2025.
- Company acknowledges elevated losses in the first three quarters of 2026 and states that some inefficiencies in scaling large programs occurred in Q3 2026.
What to watch
- Whether Q4 2026 revenue exceeds the stated target of greater than $250 million.
- Gross margin in Q4 2026, which the company expects to be similar to Q3 2026 levels due to mix.
- Adjusted EBITDA profitability at the operating-platform level in Q4 2026 and company-wide Adjusted EBITDA break-even in Q3 2027.
- Sequential backlog growth in Q4 2026 from the $835 million reported at September 30, 2026.
- Volume deliveries under the LUS IDIQ orders and the $140 million combat engineering vehicles program beginning in Q4 2026.
- Operating cash flow and free cash flow, which the filing does not print.
- Ongoing fair value changes in the warrant liability and their effect on other income.
Balance sheet and cash flow
- Cash, cash equivalents, restricted cash and short-term investments of $820.3 million at September 30, 2026, per the release text.
- Balance sheet at September 30, 2026: cash and cash equivalents $262,811 thousand (December 31, 2025: $550,744 thousand); short-term investments $526,062 thousand (December 31, 2025: $21,750 thousand).
- Goodwill $1,500,967 thousand (December 31, 2025: $251,809 thousand); intangible assets, net $1,025,448 thousand (December 31, 2025: $136,890 thousand).
- Total assets $4,027,840 thousand (December 31, 2025: $1,132,841 thousand).
- Warrant liability $918,632 thousand (December 31, 2025: $489,434 thousand).
- Total liabilities $1,657,097 thousand (December 31, 2025: $661,226 thousand).
- Total stockholders' equity $2,370,743 thousand (December 31, 2025: $441,819 thousand).
- Common shares issued and outstanding 590,159,870 at September 30, 2026 (December 31, 2025: 380,763,481).
- No operating cash flow, free cash flow or financing cash flow figures are printed in the filing.
Analysis
Ondas reported record Q3 2026 revenue of $167.5 million, up from $83.8 million in Q2 2026 and $10.1 million in Q3 2025. The company reports pro forma organic revenue growth of 64% year over year and $214 million of new orders, with backlog of $835 million. Nine-month revenue was $301,383 thousand against $20,620 thousand in the prior-year period. The top-line figures are the main positive in the release, and the company attributes the growth to platform scale, acquisitions, and strength in C-UAS, precision strike and land systems.
Profitability moved the other way. GAAP gross margin was 21.8% against 43.1% in Q2 2026 and 25.8% in Q3 2025. Adjusted Gross Margin was 34.8% against 50.4% in Q2 2026. The company attributes the decline to amortization of capitalized intellectual property, an inventory step-up from purchase accounting, and early-stage ramp inefficiencies, with precision strike cited for production and delivery inefficiencies. Total operating expenses rose to $226.0 million from $199.1 million, and operating loss widened to $189.5 million from $162.9 million. Of the operating expense increase, the company cites $88.1 million of non-cash charges, including $57.8 million of stock-based compensation and $25.3 million of amortization.
Below the operating line, total other income of $133.1 million, which includes $125.1 million of non-cash warrant gains, reduced the GAAP net loss to $64.7 million. Net loss in Q2 2026 was $89.7 million. Adjusted EBITDA loss was $59.7 million against $46.2 million in Q2 2026. The company states that warrant remeasurement creates earnings volatility unrelated to core operations, so the headline net loss figure should be read alongside the operating and Adjusted EBITDA lines.
On capital and liquidity, the company reports $820.3 million of cash, restricted cash and short-term investments at September 30, 2026. Total assets rose to $4,027,840 thousand from $1,132,841 thousand at December 31, 2025, largely reflecting goodwill and intangibles from acquisitions. Warrant liability also increased to $918,632 thousand. The filing prints no operating or free cash flow figures and reports no share repurchases or dividends.
Guidance was raised. The release states the FY2026 revenue target is now at least $550 million, against a prior target of between $525 and $550 million, and sets a Q4 2026 revenue target of greater than $250 million. The company initiated a FY2027 revenue target of at least $1.1 billion, excluding additional acquisitions. Company-wide Adjusted EBITDA break-even moved to Q3 2027 from Q4 2027. The company still expects Adjusted EBITDA profitability at the operating-platform level in Q4 2026 and says gross margin in Q4 2026 should be similar to Q3 2026 levels.
Management, verbatim
This quarter demonstrates the growing benefits of Ondas' integrated operating platform,
Eric Brock, Chairman and CEO, Ondas Inc.
We expect a strong finish to 2026, with momentum accelerating in the fourth quarter as volume deliveries ramp across existing programs and we convert pipeline opportunities into customer programs.
Eric Brock, Chairman and CEO, Ondas Inc.
Not in the filing
stated, not guessed- Prior-quarter (Q2 2026) values for general and administrative, sales and marketing, research and development in dollar terms, and for the change in fair value of contingent consideration.
- Prior-quarter value for net loss attributable to Ondas Inc. stockholders and for EPS.
- Year-over-year and sequential percentage changes for most GAAP and non-GAAP lines, which are not printed for those lines.
- Segment revenue figures. The filing describes product areas and a new Land Systems segment but prints no segment revenue.
- Operating cash flow, investing cash flow, financing cash flow and free cash flow.
- Share repurchases and dividends (none reported in the filing).
- Prior guidance comparison. The prior outlook was not provided with this request, so no verdicts are given, although the release states a prior FY2026 target of between $525 and $550 million.
- Gross margin guidance expressed as a percentage for Q4 2026.
- Operating expense, tax rate and interest guidance.
- Analyst consensus estimates and share-price reaction, which are not in the documents.
- Interest expense prior-quarter value and tax prior-quarter value.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Ondas Inc. (NASDAQ: ONDS) filed a Form 8‑K reporting its Q3 2026 results and updated guidance.
Ticker impact
Ondas Inc. reported record Q3 2026 revenue of $167.5M and raised its full-year 2026 revenue outlook to at least $550M.
likely upward pressure as investors price in higher revenue guidance
The company posted 100% sequential revenue growth, a 16‑fold YoY increase, and increased its full‑year revenue target, suggesting improved profitability and market demand.
Market effects
Strengthens the defense and autonomous systems sector with higher demand for AI‑enabled platforms.
Boosts U.S. defense technology exposure, potentially benefiting peers in the aerospace and security space.
Highlights growing sovereign AI and defense spending, relevant for global defense contractors.
Counterpoint
If the rapid growth proves unsustainable, the elevated guidance could be revised down, leading to a pull‑back.
Key entities
- CompanyOndas Inc.
Provider of advanced autonomous systems and defense technologies.
