Ondas Raises 2026 Floor and Sets 2027 Revenue Target

The Tip Desk · November 12, 2026 · 3 min read

Third-quarter revenue reached $167.5 million, and the company now targets at least $550 million for full-year 2026, with more than $250 million in the fourth quarter.

Ondas Inc. (ONDS), a provider of autonomous systems and defense technologies, reported record third-quarter 2026 revenue of $167.5 million, up 100% from $83.8 million in the second quarter and more than 16-fold from $10.1 million a year earlier.

The sequential pace quickened from the 67% increase recorded in the prior quarter. On a pro forma organic basis, assuming the current portfolio had been owned in both periods, revenue grew 64% year over year.

The company captured $214 million in new orders in the quarter, including $100 million at the newly formed Ondas Sentinel unit, anchored by $53.7 million of ULTRA follow-on orders and $21.7 million of IonStrike orders. Backlog rose 36% sequentially to $835 million from about $613 million at June 30.

Gross profit was $36.5 million. Gross margin compressed to 21.8% from 43.1% in the second quarter. The company said the sequential decline related to higher amortization of capitalized intellectual property, the step-up in acquired inventory under purchase accounting, and inefficiencies in the early stages of ramping large programs. Adjusted gross profit was $58.3 million and adjusted gross margin 34.8%, down from 50.4% in the second quarter. The company said the lower adjusted margin reflected production and delivery inefficiencies, particularly in precision strike, which represented a disproportionate share of revenue, and that it expects similar gross margin levels in the fourth quarter due to mix, with a recovery to historical levels and normal quarterly variability.

Operating expenses increased to $226.0 million from $199.1 million, including $88.1 million of non-cash items—$57.8 million of stock-based compensation and $25.3 million of amortization—and $14.1 million of acquisition-related cash expenses. Adjusted cash operating expenses were $118.7 million. Research and development expense was $61.6 million. Operating loss widened to $189.5 million from $162.9 million. Adjusted EBITDA loss widened to $59.7 million from $46.2 million.

Net loss was $64.7 million. Other income included $125.1 million of non-cash gains on warrants issued in October 2025 and January 2026 equity raises, which the company said can create volatility unrelated to core operations.

Ondas raised its full-year 2026 revenue target to at least $550 million from a prior range of $525 million to $550 million. For the fourth quarter it is targeting revenue of greater than $250 million and at least 75% pro forma organic year-over-year growth. It issued an initial 2027 revenue target of at least $1.1 billion, which it said would represent 100% year-over-year growth and more than 40% organic growth.

The company said it continues to expect Adjusted EBITDA profitability in the fourth quarter at the operating-platform level, covering OAS and Ondas Sentinel, and pulled its company-wide Adjusted EBITDA profitability target forward to the third quarter of 2027 from the fourth quarter of 2027. It said the elevated losses in the first three quarters represented a front-loading of expenses ahead of the revenue ramp into 2027, and that it believes early ramp-up inefficiencies that affected third-quarter gross margin were temporary.

Corporate development included establishing Ondas Sentinel around DZYNE Technologies and World View, forming Regna AI, completing six acquisitions including Cyberhawk, Gate/Bron, Ottopia, Insignito and Caribou Labs, and creating a Land Systems segment. Cash, cash equivalents, restricted cash and short-term investments were $820.3 million as of September 30.

The company said it expects backlog to grow sequentially in the fourth quarter, with volume deliveries on ULTRA and IonStrike and continued shipments under the $982 million Lethal Unmanned Strike IDIQ with the U.S. Army.