Ondas Q1 2026 Results Lift Outlook

Ondas Inc. (ONDS) reported Q1 2026 results on May 14, showing a record quarter that led management to raise its full-year revenue outlook, citing a stronger backlog and liquidity that support the revised guidance.

Record Quarter and Profitability

Ondas posted revenue of $50.1 million for the three months ended March 31, 2026, a 1,065% increase from $4.3 million a year earlier and a 66% rise from $30.1 million in the prior quarter. Gross profit reached $24.7 million, with a 49% gross margin compared with 35% in Q1 2025. Product companies within Ondas achieved adjusted EBITDA profitability six months ahead of schedule, reflecting early operational scale.

The company recorded an adjusted EBITDA loss of $10.9 million, wider than the $7.5 million loss in Q1 2025. Net income was $361.2 million, driven mainly by a $389.5 million non-cash gain from warrant-liability revaluation and a $51.5 million gain from the deconsolidation of Ondas Networks, effective January 16, 2026. This contrast between GAAP net income and adjusted EBITDA loss highlights the near-term operating losses expected as revenue scales.

Backlog, Acquisitions, and Outlook

Ondas’s pro forma backlog rose to $457 million as of March 31, 2026, reflecting the April acquisitions of Mistral Inc. and World View Enterprises; the backlog was $68.3 million at year-end 2025. The balance sheet included $1.48 billion in cash, cash equivalents, restricted cash, and short-term investments, bolstered by $1.0 billion in gross proceeds from a January 2026 offering. This combination of contracted work and liquidity positions Ondas to pursue additional deals while funding its operational ramp.

The company raised its full-year 2026 revenue outlook to at least $390 million, about a 670% increase from 2025, supported by the enlarged backlog, organic growth, strategic acquisitions, and demand for counter-UAS, intelligence, surveillance, reconnaissance (ISR), and ground-robotics work. Management expects adjusted EBITDA losses to peak through the second quarter and improve in the second half of 2026. It targets company-wide profitability by Q1 2028 and accelerated the path to profitability for its OAS unit to Q1 2027 from a prior Q3 2027 target. Additional acquisitions planned for 2026 are expected to add revenue.

The larger backlog and strengthened balance sheet give Ondas room to convert contracted work into revenue growth while managing near-term operating losses. Execution on backlog conversion and acquisition integration will determine whether the company meets its profitability timeline.

[source:ir.ondas.com/press-releases/detail/306]