Ondas reports record Q3 revenue and raised outlook but shares slip on margin squeeze
Ondas Inc. posted third‑quarter revenue of $167.5 million, far above analysts' $148.3 million estimate, and lifted its 2026 revenue target to at least $550 million. The company also announced a 2027 revenue goal of at least $1.1 billion and expects adjusted EBITDA profitability in Q3 2027. Despite the top‑line beat, gross margin fell to 21.8% from 43.1% in the prior quarter, prompting the stock to drop about 5% after the release.
Why it matters
The higher revenue and upgraded outlook suggest stronger demand for Ondas' defense systems, but the sharp margin decline signals cost pressures that could delay profitability. Investors will need to weigh the growth potential against the risk of continued margin erosion.
Key facts
- 1Third‑quarter revenue was $167.5 million, beating the $148.3 million consensus. ibtimes.com.au
- 2Revenue was more than 16 times the $10.1 million reported a year earlier and doubled from $83.8 million in Q2. ibtimes.com.au
- 3On a pro forma organic basis, revenue rose 64% year over year. ibtimes.com.au
- 4Gross margin fell to 21.8% from 43.1% in Q2. ibtimes.com.au
- 5Adjusted gross margin was 34.8%, down from 50.4% in Q2. ibtimes.com.au
- 6Net loss was $64.7 million, or a loss of 10 cents per share, better than the 13‑cent loss expected. ibtimes.com.au
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.