Ondas (1B8) Q2 2026 Earnings Report

The call presents strong commercial and financial momentum: record quarterly revenue, very large and expanding backlog/pipeline, robust order capture, substantial pro forma organic growth, a strong cash position and clear integration tools (Palantir) and leadership additions. These positives are balanced by elevated operating expenses, a Q2 adjusted EBITDA loss (~$51M), expected near-term gross margin mix pressure and acquisition/integration-related costs. Management has provided a clear rationale that much of the spending is front-loaded to enable rapid scaling and provided a near-term path to narrowing losses and targeted profitability dates, suggesting confidence in converting demand into earnings.

Ondas reiterated a strong second‑half ramp and raised full‑year 2026 revenue guidance to $525–$550 million (midpoint implying >10x 2025 revenue and >30% pro forma organic YoY growth), with Q3 revenue guided to $140–$155 million (midpoint ~73% sequential growth; >30% pro forma organic YoY). Q2 results underpin the outlook: revenue of ~$83.8M (up 67% sequential and >13x YoY; pro forma organic +85% YoY), gross profit ~$36M and adjusted gross margin 50.4%, adjusted cash OpEx ~$93M (total OpEx ~$199M), and an adjusted EBITDA loss of ~($51M) that management expects peaked in Q2 and to narrow beginning in Q3. Backlog and orders provide visibility: pro forma backlog ~$757M (up from $457M, ~66% sequential; pro forma backlog grew >11x in 2026), $175M of new orders in Q2 and ~ $105M Q3‑to‑date, a 2‑year strategic pipeline >$11B, cash and equivalents ~$1.4B (vs. $616M YE‑2025) after ~$325M deployed for recent acquisitions; Ondas targets >50% long‑term gross margins, expects Ondas Autonomous Systems/Ondas Sentinel profitability in Q4’26 and company‑wide adjusted EBITDA profitability in Q4’27, and anticipates exiting 2026 at a ~$1B annualized revenue run rate.