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Ondas
(NASDAQ:ONDS)
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Rating:58Neutral
Price Target:
$7.00
▼(-15.05% Downside)
Action:Reiterated
Date:10/13/26
The score is held back primarily by ongoing operating losses and material negative cash flow despite strong balance-sheet leverage metrics and improved reported profitability. Technicals also weigh on the rating given the clear downtrend and bearish momentum signals. Offsetting these are a notably strong earnings-call outlook with raised revenue guidance and large backlog/order momentum, but the valuation (high P/E) provides limited cushion if execution or margin expansion disappoints.
Positive Factors
Revenue Growth and Backlog
Rapid revenue growth, expanding backlog, and a large strategic pipeline provide meaningful visibility into future demand. If Ondas converts these programs as planned, scale should broaden its market position across defense, security, and infrastructure while supporting sustained commercial expansion over the next several quarters.
Negative Factors
Persistent Operating Losses and Cash Burn
Deep operating losses and materially negative operating and free cash flow show that the company has not yet translated growth into self-funded earnings power. Continued cash consumption could constrain strategic flexibility and require additional financing if the planned revenue ramp and margin improvement are delayed.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth and Backlog
Rapid revenue growth, expanding backlog, and a large strategic pipeline provide meaningful visibility into future demand. If Ondas converts these programs as planned, scale should broaden its market position across defense, security, and infrastructure while supporting sustained commercial expansion over the next several quarters.
Read all positive factors
Ondas (ONDS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.88B
Dividend YieldN/A
Average Volume (3M)57.02M
Price to Earnings (P/E)69.3
Beta (1Y)2.07
Revenue Growth979.28%
EPS GrowthN/A
CountryUS
Employees477
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.10
Shares Outstanding582,302,700
10 Day Avg. Volume49,195,764
30 Day Avg. Volume57,022,120
Financial Highlights & Ratios
PEG Ratio-9.60
Price to Book (P/B)4.95
Price to Sales (P/S)42.67
P/FCF Ratio-52.94
Enterprise Value/Market Cap0.72
Enterprise Value/Revenue16.10
Enterprise Value/Gross Profit36.83
Enterprise Value/Ebitda35.98
Forecast
1Y Price Target
$18.97Price Target Upside130.25% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)0.31
Revenue Forecast (FY)$536.73M
Ondas Business Overview & Revenue Model
Company Description
Ondas Holdings Inc. delivers specialized private wireless, uncrewed aerial vehicle (UAV), and automated data solutions through its operating subsidiaries. The company is structured into two main segments: Ondas Networks and American Robotics. Onda...
How the Company Makes Money
Ondas primarily generates revenue by selling hardware and related solutions for private wireless networks and autonomous drone operations. In its networking segment (Ondas Networks), revenue is earned from the sale of wireless base stations, subsc...
Ondas Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 16, 2026
Earnings Call Sentiment Positive
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.Positive Updates
Record Quarterly Revenue and Rapid Growth
Q2 revenue of approximately $83.8M, representing more than 13x growth versus Q2 2025 and a 67% sequential increase versus Q1 2026. On a pro forma organic basis, revenue grew ~85% year-over-year.
Negative Updates
Elevated Operating Expenses and Adjusted EBITDA Loss
GAAP operating expenses of approximately $199M in Q2; adjusted cash operating expenses ~ $93M. Adjusted EBITDA loss of about $51M for the quarter. Management attributes elevated OpEx to front-loaded investments and acquisition impacts.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Revenue and Rapid Growth
Q2 revenue of approximately $83.8M, representing more than 13x growth versus Q2 2025 and a 67% sequential increase versus Q1 2026. On a pro forma organic basis, revenue grew ~85% year-over-year.
Read all positive updates
Company Guidance
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.Ondas Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
82
Very Positive
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Mar 2024 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 174.10M | 50.73M | 7.19M | 15.69M | 2.13M | 2.91M |
| Gross Profit | 76.12M | 20.16M | 345.00K | 6.38M | 1.11M | 1.10M |
| EBITDA | 77.90M | -118.33M | -28.72M | -34.64M | -64.63M | -15.55M |
| Net Income | 167.57M | -132.02M | -38.01M | -44.84M | -73.24M | -15.02M |
Balance Sheet | ||||||
| Total Assets | 2.99B | 1.14B | 109.62M | 92.16M | 97.95M | 117.44M |
| Cash, Cash Equivalents and Short-Term Investments | 1.38B | 616.11M | 29.96M | 14.98M | 29.78M | 40.82M |
| Total Debt | 6.41M | 12.49M | 60.31M | 35.29M | 33.39M | 1.81M |
| Total Liabilities | 1.42B | 661.23M | 73.68M | 47.11M | 39.72M | 5.21M |
| Stockholders Equity | 1.57B | 437.36M | 16.58M | 33.14M | 58.22M | 112.23M |
Cash Flow | ||||||
| Free Cash Flow | -170.63M | -40.88M | -35.20M | -34.30M | -40.89M | -17.92M |
| Operating Cash Flow | -161.06M | -38.75M | -33.47M | -34.02M | -37.96M | -16.90M |
| Investing Cash Flow | -1.02B | -260.13M | -1.73M | 536.27K | -6.93M | -10.21M |
| Financing Cash Flow | 1.78B | 862.65M | 50.18M | 18.73M | 33.86M | 41.86M |
Ondas Technical Analysis
Negative
8.24
Price Trends
7.93
Negative
8.38
Negative
9.40
Negative
Market Momentum
-0.24
Positive
34.00
Neutral
6.11
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ONDS, the sentiment is Negative. The current price of 8.24 is above the 20-day moving average (MA) of 7.30, above the 50-day MA of 7.93, and below the 200-day MA of 9.40, indicating a bearish trend. The MACD of -0.24 indicates Positive momentum. The RSI at 34.00 is Neutral, neither overbought nor oversold. The STOCH value of 6.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ONDS.
Ondas Risk Analysis
Ondas disclosed 62 risk factors in its most recent earnings report. Ondas reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ondas Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $2.85B | 57.78 | 7.39% | ― | 20.26% | 11.95% | |
68 Neutral | $3.11B | 73.43 | 50.74% | ― | 12.59% | ― | |
68 Neutral | $3.12B | 46.23 | 8.70% | ― | 12.77% | 182.06% | |
64 Neutral | $10.27B | -325.16 | -3.16% | ― | 40.03% | -193.79% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $1.14B | -25.18 | -12.23% | ― | -28.05% | -171.21% | |
58 Neutral | $3.88B | 69.33 | 18.79% | ― | 979.28% | ― |
* Technology Sector Average
ONDS
Ondas
6.71
-3.70
-35.54%
DGII
Digi International
74.58
37.92
103.44%
EXTR
Extreme Networks
23.49
3.57
17.92%
HLIT
Harmonic
10.53
0.36
3.54%
KN
Knowles
36.58
13.74
60.16%
VIAV
Viavi Solutions
41.28
28.50
223.00%
Ondas Corporate Events
Business Operations and StrategyProduct-Related Announcements
Ondas Launches Regna AI Sovereign Defense Platform
Positive
Oct 13, 2026
On October 12, 2026, Ondas and Palantir launched Regna AI as a standalone company designed to provide a sovereign AI layer for defense customers. Regna AI is structured so governments and defense contractors can own and control both their AI model...
Business Operations and StrategyM&A TransactionsPrivate Placements and FinancingRegulatory Filings and Compliance
Ondas Expands Defense Portfolio With Israeli Tech Acquisitions
Positive
Sep 23, 2026
On September 23, 2026, Ondas filed a prospectus supplement to register the potential resale by certain stockholders of 7,822,077 Ondas common shares, most of which were issued that same day as deal consideration for three acquired Israeli defense ...
Business Operations and StrategyM&A Transactions
Ondas Completes Strategic Gate and Bron Technologies Acquisition
Positive
Sep 14, 2026
On September 14, 2026, Ondas Inc. completed the acquisition of Gate Technologies in Israel and Bron Technologies in Poland, buying 100% of their share capital for $105 million in cash, 10,689,655 Ondas common shares and a $25 million working capit...
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
Ondas Registers Resale of Shares Post World View Acquisition
Neutral
Aug 28, 2026
On August 28, 2026, Ondas Inc. filed a prospectus supplement with the U.S. Securities and Exchange Commission to register the potential resale, from time to time, of 99,105 shares of its common stock by certain existing stockholders. These shares ...
Business Operations and StrategyM&A Transactions
Ondas Completes Cyberhawk Acquisition, Expanding Drone Capabilities
Positive
Aug 10, 2026
On August 10, 2026, Ondas completed its previously announced acquisition of U.K.-based Cyberhawk Holdings Limited, a global leader in drone-enabled inspection, visual data management and AI-powered asset intelligence for critical infrastructure op...
Business Operations and StrategyRegulatory Filings and Compliance
Ondas Adopts 2026 Inducement Equity Compensation Plan
Positive
Aug 7, 2026
On August 3, 2026, Ondas Inc.’s Board of Directors adopted the Ondas Inc. 2026 Inducement Plan, setting aside 20,000,000 shares of common stock for a wide range of equity awards, including stock options, restricted stock units and performanc...
Private Placements and FinancingRegulatory Filings and Compliance
Ondas Files Prospectus for Resale of Common Stock
Neutral
Jul 24, 2026
On July 24, 2026, Ondas Inc. filed a prospectus supplement with the U.S. Securities and Exchange Commission to enable the resale from time to time by certain stockholders of 2,583 shares of its common stock. These shares were previously acquired b...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.