Second quarter of 2026
Filed Aug 13, 2026Ondas Posts Record Q2 2026 Revenue of $83.8 Million on Strong Bookings and Backlog Growth; Raises Full-Year Outlook
Record revenue, substantial order capture, backlog growth and a higher full-year revenue target were offset by a lower gross margin and materially larger GAAP operating and net losses as the Company increased platform investment, acquisition activity and non-cash expenses.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $83.8 million | 67% | more than a thirteen-fold increase |
| Revenue, pro forma organic year-over-year growthother | 85% | – | 85% |
| Gross profitGAAP | $36.1 million | – | – |
| Gross marginGAAP | 43.1% | – | – |
| Adjusted Gross Profitnon-GAAP | $42.3 million | – | – |
| Adjusted Gross Marginnon-GAAP | 50.4% | – | – |
| Operating expensesGAAP | $199.1 million | – | – |
| Adjusted Cash Operating Expensenon-GAAP | $93.3 million | – | – |
| Operating lossGAAP | $162.9 million | – | – |
| Total other income, netGAAP | $44.2 million | – | – |
| Net lossGAAP | $89.7 million | – | – |
| Net loss attributable to Ondas Inc. stockholdersGAAP | $ (88,587 ) | – | – |
| Net loss per share, basicGAAP | $ (0.18 ) | – | – |
| Net loss per share, dilutedGAAP | $ (0.19 ) | – | – |
| Adjusted EBITDA lossnon-GAAP | $50.6 million | – | – |
| New orders captured during Q2 2026other | $175 million | – | – |
| Additional new orders captured during Q3 2026 to dateother | $105 million | – | – |
| Reported backlog as of June 30, 2026other | approximately $613 million | – | – |
| Pro forma backlog as of June 30, 2026other | $757 million | 65% | an 11-fold increase |
Full year 2026 and third quarter of 2026 outlook
- RevenueFull-year 2026: $525 – $550 million; third quarter of 2026: $140 – $155 million
- NoteFull-year 2026 revenue target represents a greater than 10-fold increase from 2025 results.
- NoteOn a pro forma organic basis, the midpoint of the full-year range would equate to greater than 30% year on year growth.
- NoteThird-quarter revenue guidance represents 76% sequential growth at the midpoint, and greater than 30% organic growth on a year-over-year pro forma basis.
- NoteAdjusted EBITDA losses are expected to decline sequentially in the third quarter of 2026.
- NoteAdjusted EBITDA profitability at the operating platform level, which includes OAS and Ondas Sentinel, is expected by Q4 2026.
- NoteCompany-wide adjusted EBITDA profitability is expected by Q4 2027.
What drove it
- Revenue growth reflected strong performance across the portfolio, particularly C-UAS systems, where the Company cited demand to protect lower skies across civilian and military airspace.
- Higher Adjusted Gross Profit reflected higher revenue, favorable product mix, greater absorption of fixed manufacturing costs, and contributions from businesses acquired during the period.
- The second-half ramp is expected to include volume shipments under Mistral's $982 million Lethal Unmanned Strike IDIQ award, growing ULTRA and IonStrike demand, and fourth-quarter volume deliveries for the $140 million combat engineering vehicles program.
- DZYNE and Cyberhawk closed in the third quarter and expanded the technology and customer-solutions portfolio, customer base and operating platform.
- Ondas reported $175 million of Q2 new orders and an additional $105 million in Q3 orders to date.
- The Company cited approximately $757 million of pro forma backlog as support for broad-based full-year growth.
Concerns
- GAAP gross margin declined to 43.1% from 49.2% in the first quarter and 53.1% in the prior-year quarter; gross profit was reduced by amortization of capitalized intellectual property.
- Operating expenses increased to $199.1 million, including $105.8 million of non-cash expenses, mainly $67.6 million of stock-based compensation, $19.2 million from the change in fair value of contingent consideration, and $14.0 million of amortization expense, together with $4.4 million of transaction-related expense.
- Adjusted Cash Operating Expense increased to $93.3 million, reflecting newly acquired businesses and continued investment in the operating platform and infrastructure.
- Adjusted EBITDA loss widened to $50.6 million from a $10.9 million loss in the first quarter.
- Reported other income included non-cash gains related to warrants that are remeasured at fair value each reporting period and can create significant volatility in reported earnings.
- The Company said gross margin may vary quarter to quarter as system sales mix shifts and order timing remains uneven at this early stage of adoption.
What to watch
- Third-quarter revenue delivery against the $140 – $155 million target and the expected sequential decline in Adjusted EBITDA loss.
- Execution of volume shipments under the Lethal Unmanned Strike IDIQ award, including the production ramp for the LUS program in the third quarter.
- Fourth-quarter start of volume deliveries for the $140 million combat engineering vehicles program.
- Conversion of approximately $757 million in pro forma backlog into revenue.
- The operating-platform Adjusted EBITDA profitability target by Q4 2026.
- Effects of the DZYNE and Cyberhawk acquisitions on second-half revenue, gross profit and operating leverage.
Balance sheet and cash flow
- $1.4 billion in cash, cash equivalents, restricted cash and short-term investments as of June 30, 2026.
- Cash and cash equivalents: $ 657,906 as of June 30, 2026, compared with $ 550,744 as of December 31, 2025.
- Restricted cash: $ 8,472 as of June 30, 2026, compared with $ 43,615 as of December 31, 2025.
- Short-term investments: $ 726,587 as of June 30, 2026, compared with $ 21,750 as of December 31, 2025.
- Accounts receivable, net: $ 72,247 as of June 30, 2026, compared with $ 22,356 as of December 31, 2025.
- Inventory, net: $ 52,034 as of June 30, 2026, compared with $ 21,963 as of December 31, 2025.
- Notes payable: $ 1,562 current and $ 194 net of current portion as of June 30, 2026.
- Convertible notes payable: $ 718 current and $ 3,934 net of current portion as of June 30, 2026.
- The Company utilized approximately $325 million of cash during the third quarter in connection with closing the acquisitions of DZYNE and Cyberhawk.
- Total assets: $ 2,993,497 as of June 30, 2026, compared with $ 1,132,841 as of December 31, 2025.
- Total liabilities: $ 1,417,920 as of June 30, 2026, compared with $ 661,226 as of December 31, 2025.
- Warrant liability: $ 1,043,740 as of June 30, 2026, compared with $ 489,434 as of December 31, 2025.
Analysis
Ondas reported record Q2 revenue of $83.8 million, up 67% sequentially from $50.1 million and more than thirteen-fold from $6.3 million a year earlier. The Company also reported 85% pro forma organic revenue growth year over year. Order activity remained substantial, with $175 million of Q2 orders and $105 million of additional orders captured during Q3 through August 10. Reported backlog was approximately $613 million at June 30, while pro forma backlog including DZYNE and Cyberhawk was $757 million.
Gross profit rose to $36.1 million from $24.7 million in Q1, but GAAP gross margin declined to 43.1% from 49.2% sequentially and 53.1% a year ago. The Company attributed the GAAP gross-profit pressure to amortization of capitalized intellectual property. Adjusted Gross Profit was $42.3 million and Adjusted Gross Margin was 50.4%, compared with $25.8 million and 51.5% in Q1. Management cited favorable product mix, fixed-cost absorption and acquired-business contributions as drivers of higher adjusted gross profit, while cautioning that mix and uneven order timing can cause quarterly gross-margin variation.
The expense profile expanded materially ahead of the expected second-half delivery ramp. GAAP operating expenses were $199.1 million, including $105.8 million of non-cash expenses and $4.4 million of transaction-related expense. Adjusted Cash Operating Expense was $93.3 million, reflecting acquired-business costs and operating-platform investment, including $26.2 million related to WarpSpeed, Skyweaver and Palantir market-development activities. Consequently, operating loss was $162.9 million, net loss was $89.7 million, and Adjusted EBITDA loss was $50.6 million. Reported earnings also reflected $44.2 million of total other income, including $29 million of interest and investment income and non-cash warrant-related gains.
Capital resources were significant at June 30, with $1.4 billion in cash, cash equivalents, restricted cash and short-term investments. The Company said it used approximately $325 million of cash during Q3 to close DZYNE and Cyberhawk. Those acquisitions, along with World View, Mistral and Omnisys, broadened the operating platform and are intended to contribute to second-half growth and operating leverage. The Company also reported 560 added U.S. employees and six major U.S. facilities totaling 230,000 square feet of underutilized capacity.
Management raised its full-year revenue target to $525 – $550 million and guided Q3 revenue to $140 – $155 million. The stated delivery drivers are volume shipments associated with the LUS IDIQ award, adoption of ULTRA and IonStrike, and planned Q4 volume deliveries under the $140 million combat engineering vehicles program. The Company expects Adjusted EBITDA losses to decline sequentially in Q3, targets operating-platform Adjusted EBITDA profitability by Q4 2026, and targets company-wide adjusted EBITDA profitability by Q4 2027. The key execution issue is conversion of the stated backlog and order book into the required second-half delivery ramp while costs, gross margin and acquisition integration remain under control.
Management, verbatim
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.
Eric Brock, Chairman and CEO of Ondas
We expect to sustain this momentum and deliver another significant revenue ramp during the second half of 2026, increasing our full-year 2026 revenue target to a range of $525 million to $550 million.
Eric Brock, Chairman and CEO of Ondas
We expect our momentum to continue to accelerate in the second half of 2026 as volume deliveries ramp on key programs, particularly across our counter-drone, multi-domain ISR and precision strike verticals.
Eric Brock, Chairman and CEO of Ondas
Not in the filing
stated, not guessed- Prior quarterly release/outlook was not provided, so comparison with prior guidance is unavailable.
- Segment revenue, segment profitability and segment growth disclosures were not provided.
- Operating cash flow was not provided.
- Free cash flow was not provided.
- Capital-return activity, including share repurchases and dividends, was not provided.
- Non-GAAP earnings per share was not provided.
- Forward guidance for gross margin, operating expenses and tax rate was not provided.
- A third-quarter revenue comparison to an actual reported prior-year quarter was not provided.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.