Ondas (NASDAQ:ONDS) Issues Quarterly Earnings Results, Misses Estimates By $0.10 EPS

Ondas (NASDAQ:ONDS) issued its earnings results on Thursday. The company reported ($0.19) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.09) by ($0.10), FiscalAI reports. The company had revenue of $83.77 million during the quarter, compared to analyst estimates of $67.97 million. Ondas had a negative return on equity of 14.17% and a net margin of 247.85%.

Here are the key takeaways from Ondas’ conference call:

• Positive Sentiment: Q2 revenue reached approximately $83.8 million, up 67% sequentially and more than 13-fold year over year; management cited approximately 85% pro forma organic growth and raised full-year 2026 revenue guidance to $525 million–$550 million.
• Positive Sentiment: Pro forma backlog rose to approximately $757 million, while the two-year strategic pipeline exceeded $11 billion and Q3-to-date orders totaled about $105 million, supporting management’s expectation of a significant second-half revenue ramp.
• Positive Sentiment: Management expects operating leverage to emerge as revenue scales, projecting profitability for the Ondas Autonomous Systems and Ondas Sentinel platform in Q4 2026 and company-wide adjusted EBITDA profitability in Q4 2027; it also expects to exit 2026 at a $1 billion annualized revenue run rate.
• Negative Sentiment: Adjusted cash operating expenses rose to approximately $93 million and adjusted EBITDA was a loss of about $51 million in Q2, reflecting front-loaded integration and growth investments; management also expects some second-half gross-margin pressure from product mix and excess capacity, while acknowledging ongoing supply-chain challenges.

Ondas Stock Performance

Shares of Ondas stock traded down $0.81 during midday trading on Thursday, reaching $8.96. 101,664,638 shares of the company’s stock traded hands, compared to its average volume of 85,350,016. Ondas has a 12 month low of $3.20 and a 12 month high of $15.28. The company has a market cap of $5.10 billion, a PE ratio of 224.38 and a beta of 2.72. The stock has a 50 day moving average of $8.35 and a 200-day moving average of $9.55.

Key Stories Impacting Ondas

Here are the key news stories impacting Ondas this week:

• Positive Sentiment: Ondas won a multi-million-dollar Israeli defense tender to provide next-generation tactical attack drones. The award expands its autonomous defense footprint and supports management’s view that global military priorities are shifting toward unmanned systems. Ondas Wins Israeli Defense Tender for Next-Gen Tactical Attack Drones
• Positive Sentiment: Second-quarter revenue reached approximately $83.8 million, exceeding the roughly $68.0 million analyst expectation. The company also highlighted a growing defense order pipeline, while a Roth Capital upgrade to “Strong Buy” provided additional analyst support. Ondas Holdings Reports Q2 Loss, Beats Revenue Estimates
• Neutral Sentiment: Broader defense-sector demand may benefit Ondas over time as depleted missile inventories and military readiness concerns drive spending on autonomous and counter-drone technologies. However, the benefit is a longer-term opportunity rather than an immediate earnings catalyst. Replenishing the Arsenal: How U.S. Missile Shortages Are Driving Defense ETFs
• Negative Sentiment: Ondas reported a larger-than-expected quarterly loss under the figures cited by MarketBeat—$0.19 per share versus a $0.09 consensus loss—despite the revenue beat. The company remains unprofitable, and its elevated price-to-earnings ratio leaves the stock sensitive to disappointments. Ondas Earnings Press Release
• Negative Sentiment: The results triggered post-earnings selling after the stock had risen more than 70% from its yearly low. Reports of elevated short interest and heavy trading activity also point to substantial volatility, increasing the potential for profit-taking and sharp moves in either direction. Ondas Drops After Earnings

Analysts Set New Price Targets

ONDS has been the topic of several research analyst reports. Needham & Company LLC lowered their price target on shares of Ondas from $23.00 to $19.00 and set a “buy” rating on the stock in a report on Tuesday, July 7th. Wall Street Zen downgraded Ondas from a “hold” rating to a “sell” rating in a report on Sunday, May 24th. Zacks Research raised shares of Ondas from a “strong sell” rating to a “hold” rating in a research note on Monday, May 25th. LADENBURG THALM/SH SH upgraded Ondas to a “strong-buy” rating in a report on Wednesday, May 6th. Finally, Roth Capital assumed coverage on Ondas in a report on Tuesday. They issued a “buy” rating and a $13.00 target price on the stock. Two investment analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $16.33.

Insider Buying and Selling

In other Ondas news, CEO Eric A. Brock sold 2,378,245 shares of the firm’s stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $13.43, for a total transaction of $31,939,830.35. Following the completion of the transaction, the chief executive officer owned 3,583,010 shares of the company’s stock, valued at approximately $48,119,824.30. This trade represents a 39.90% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Richard M. Cohen sold 7,500 shares of the firm’s stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $9.50, for a total value of $71,250.00. Following the transaction, the director directly owned 264,853 shares of the company’s stock, valued at approximately $2,516,103.50. This trade represents a 2.75% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 2,395,745 shares of company stock valued at $32,109,380 over the last quarter. Corporate insiders own 1.67% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. IFP Advisors Inc grew its holdings in Ondas by 231.4% during the third quarter. IFP Advisors Inc now owns 4,142 shares of the company’s stock valued at $32,000 after purchasing an additional 2,892 shares during the period. Federation des caisses Desjardins du Quebec boosted its position in shares of Ondas by 228.6% during the fourth quarter. Federation des caisses Desjardins du Quebec now owns 4,403 shares of the company’s stock worth $43,000 after acquiring an additional 3,063 shares during the last quarter. Wells Fargo & Company MN increased its holdings in Ondas by 10.3% in the 4th quarter. Wells Fargo & Company MN now owns 36,052 shares of the company’s stock valued at $352,000 after acquiring an additional 3,352 shares during the last quarter. Steward Partners Investment Advisory LLC lifted its stake in Ondas by 1,005.0% in the 4th quarter. Steward Partners Investment Advisory LLC now owns 4,398 shares of the company’s stock worth $43,000 after purchasing an additional 4,000 shares in the last quarter. Finally, The Manufacturers Life Insurance Company grew its position in shares of Ondas by 32.3% during the fourth quarter. The Manufacturers Life Insurance Company now owns 16,947 shares of the company’s stock valued at $165,000 after purchasing an additional 4,142 shares in the last quarter. Institutional investors own 37.73% of the company’s stock.

Ondas Company Profile

Ondas Holdings, Inc (NASDAQ: ONDS) develops secure private wireless networking solutions and unmanned aircraft systems tailored to mission-critical industrial applications. Its Ondas Networks division offers the proprietary FullMAX platform, a long-range, high-bandwidth broadband network designed to support real-time data transmission, remote monitoring and IoT deployments across rail, maritime and infrastructure environments. The broadband platform integrates edge-to-cloud architecture to ensure operational resilience and regulatory compliance for transportation and utility operators.

The company’s Ondas Autonomous Systems segment builds heavy-lift cargo drones and uncrewed aircraft platforms for logistics, pipeline and infrastructure inspection, emergency response and other government and commercial use cases.