Ondas Inc. ONDS raised its 2026 revenue outlook after a second quarter marked by faster sales growth, sizable order wins and a sharply larger backlog. The key issue now is execution.
Management is counting on contracted programs and recently acquired capabilities to support a steep second-half revenue ramp. That makes backlog conversion, delivery timing and margin progress central to the outlook.
ONDS Q2 Revenue Reset the 2026 Growth Path
Second-quarter 2026 revenues reached $83.8 million, up 67% sequentially and more than 13-fold year over year. Revenues also beat the Zacks Consensus Estimate by 25.1%, reflecting acquisitions and solid execution across the core business.
Ondas Holdings Inc. Revenue (Quarterly)
Ondas Holdings Inc. revenue-quarterly | Ondas Holdings Inc. Quote
Management raised its full-year 2026 revenue target to $525-$550 million from at least $525 million previously. At the midpoint, the outlook implies more than 30% year-over-year organic growth on a pro forma basis.
Ondas Holdings Inc. Revenue (TTM)
Ondas Holdings Inc. revenue-ttm | Ondas Holdings Inc. Quote
Ondas Backlog Gives the Outlook More Visibility
Reported backlog was approximately $613 million as of June 30. Pro forma backlog rose to $757 million after including DZYNE and Cyberhawk, giving Ondas a larger contracted base entering the second half.
That backlog matters because the 2026 target requires a much higher quarterly run rate than Ondas delivered in the first half. The size of the contracted book improves revenue visibility, but delivery schedules still determine when that backlog becomes reported revenues.
ONDS Order Momentum Broadens the Revenue Base
On the last earnings call, management noted Ondas captured $175 million of new orders during the second quarter and another $105 million through the quarter-to-date period. Its two-year strategic program pipeline exceeded $11 billion across aerial security, intelligence, surveillance and reconnaissance, precision strike and autonomous ground systems.
AeroVironment, Inc. AVAV appears in Ondas' peer group and offers investors another reference point when evaluating execution and scale. Red Cat Holdings, Inc. RCAT is also part of that peer set, providing another comparator as ONDS pursues its higher growth plan.
Ondas Guidance Hinges on Fast Backlog Conversion
Third-quarter revenues are expected to reach $140-$155 million. The midpoint implies approximately 76% sequential growth, placing considerable weight on production, customer acceptance and program timing during the quarter.
Mistral is preparing deliveries against more than $240 million of aggregated orders tied to the U.S. Army's $982 million Lethal Unmanned Systems indefinite delivery, indefinite quantity program. IonStrike is expected to begin receiving commercial-volume orders and making initial deliveries during the second half of 2026.
ONDS Profitability Timing Raises the Stakes
The revenue ramp is occurring against a much heavier cost base. Second-quarter operating expenses reached $199.1 million, while adjusted EBITDA loss widened to $50.6 million.
Management expects the second quarter to mark the peak adjusted EBITDA loss and sees sequential improvement in the third quarter. It now targets operating-platform adjusted EBITDA profitability by the fourth quarter of 2026 and company-wide adjusted EBITDA profitability by the fourth quarter of 2027.
Ondas Signals Keep Expectations in Check
The raised outlook has stronger backlog and order support, but Ondas still has to convert that demand while controlling costs. First-half operating cash outflows totaled $137.4 million, and rapid acquisition activity adds integration risk as delivery requirements increase.
Ondas Holdings Inc. Price, Consensus and EPS Surprise
Ondas Holdings Inc. price-consensus-eps-surprise-chart | Ondas Holdings Inc. Quote
ONDS currently carries a Zacks Rank #4 (Sell), along with a VGM Score of F, Value Score of F, Growth Score of F and Momentum Score of C. The Rank points to an unfavorable near-term earnings-revision setup, while the F Style Scores are unfavorable across VGM, Value and Growth. The Momentum Score of C is middling, but the Style Scores are designed to complement, not override, the Zacks Rank.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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