Ondas Posts Record Q3 2026 Revenue of $167.5 Million on Strong Bookings and Backlog Growth; Raises Full-Year Outlook

Rhea-AI Summary

Ondas (NASDAQ:ONDS) reported third-quarter 2026 revenue of $167.5 million and raised its full-year revenue target following growth in bookings. Revenue rose from $83.8 million in Q2 2026 and $10.1 million a year earlier; pro forma organic growth was 64%. Bookings reached $214 million, with backlog of $835 million. Gross margin fell to 21.8% from 43.1% sequentially, while operating loss widened to $189.5 million. Net loss was $64.7 million.

Ondas targets at least $550 million in 2026 revenue, versus $525–$550 million previously, and at least $1.1 billion in 2027. It expects company-wide adjusted EBITDA profitability in Q3 2027, one quarter earlier than previously expected. This measure excludes certain expenses from earnings before interest, taxes, depreciation and amortization. Cash, restricted cash, cash equivalents and short-term investments totaled $820.3 million at quarter-end. Six acquisitions were completed.

24 points · 1 major

PositiveiHow this balance works

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Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

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0 major · 11 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.2026 revenue target raised to at least $550 million from $525–$550 million, implying greater than 10x reported 2025 revenue.
• Moderate pointQ3 revenue of $167.5 million compared with $83.8 million sequentially and $10.1 million a year earlier.
• Moderate pointPro forma organic revenue grew 64% year over year, assuming the current portfolio was owned throughout both periods.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Initial 2027 revenue target of at least $1.1 billion implies 100% annual growth and more than 40% organic growth.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Q4 revenue targeted above $250 million, with estimated pro forma organic growth of at least 75% year over year.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Company-wide adjusted EBITDA profitability expected by Q3 2027, advanced from Q4 2027.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Operating-platform adjusted EBITDA profitability remains expected in Q4 2026, covering OAS and Ondas Sentinel.
• Moderate pointQ3 bookings reached $214 million; quarter-end backlog totaled $835 million.
• Moderate point$820.3 million held in cash, cash equivalents, restricted cash and short-term investments at Q3-end.
• Moderate pointAdjusted gross profit increased to $58.3 million from $42.3 million in Q2 2026.
• Moderate pointSix acquisitions completed: DZYNE Technologies, Cyberhawk, Gate/Bron, Ottopia, Insignito and Caribou Labs.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Stemme acquisition planned to expand ULTRA S12 airframe production capacity and supply-chain capabilities.
• Moderate pointU.S. Army follow-on task order secured under the Lethal Unmanned Systems contract.
• Moderate pointMulti-million dollar Digital Bat program selection by Israel's defense ministry adds a tactical attack drone program.
• Moderate point. Forward-looking: it has not happened yet and may not happen.$140 million combat engineering vehicles program expected to begin volume deliveries in Q4 2026. 4.2% of market cap

9 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.Backlog expected to grow sequentially in Q4 2026, based on the company's order visibility.
• Minor pointGross profit reached $36.5 million, versus $36.1 million sequentially and $2.6 million a year earlier.
• Minor pointOndas Sentinel established, combining DZYNE Technologies and World View into a U.S. defense platform.
• Minor pointRegna AI formed as an initially wholly owned company focused on sovereign AI applications.
• Minor pointDedicated Land Systems segment established within OAS, consolidating unmanned ground vehicle and autonomous land technologies.
• Minor pointSpringfield, Ohio, operations hub established for ULTRA and Stratollite training, testing and flight operations.
• Minor point. Forward-looking: it has not happened yet and may not happen.Dronebuster REACH launched, with its first system under contract for delivery to the U.S. Office of Naval Research.
• Minor pointBlitz Block 3 completed its first flight, advancing the autonomous aircraft's development.
• Minor point. Forward-looking: it has not happened yet and may not happen.Volume shipments expected to continue for Mistral orders under the U.S. Army's $982 million LUS contract.

Negative

• Moderate pointOperating loss widened to $189.5 million, versus $162.9 million sequentially and $15.5 million a year earlier.
• Moderate pointGross margin fell to 21.8%, versus 43.1% sequentially and 25.8% a year earlier.
• Moderate pointAdjusted gross margin declined to 34.8% from 50.4% sequentially, reflecting production and delivery inefficiencies and mix.
• Moderate pointAdjusted EBITDA loss widened to $59.7 million, versus $46.2 million sequentially and $8.1 million a year earlier.
• Moderate pointNet loss of $64.7 million narrowed from $89.7 million sequentially but widened from $7.5 million a year earlier.

6 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.Similar gross margin levels expected in Q4 2026 due to product mix.
• Minor pointOperating expenses rose to $226.0 million, versus $199.1 million sequentially and $18.1 million a year earlier.
• Minor pointAdjusted cash operating expenses rose to $118.7 million, versus $88.8 million sequentially and $10.9 million a year earlier.
• Minor point$125.1 million in non-cash warrant gains contributed to other income; warrant remeasurement can cause reported earnings volatility.
• Minor pointStemme acquisition remains planned, rather than completed.
• Minor point. Forward-looking: it has not happened yet and may not happen.Dronebuster REACH delivery requires acceptance testing before delivery of the first contracted system.

News Explained

Ondas continues to target Adjusted EBITDA profitability in Q4 2026 for its operating platform, which it identifies as OAS and Ondas Sentinel; this is a platform-level target, distinct from the Q3 2027 company-wide target.

Key Figures

Q3 revenue: $167.5 million Pro forma organic revenue growth: 64% Backlog: $835 million +5 more

Q3 revenue

$167.5 million

Q3 2026

Pro forma organic revenue growth

64%

Year over year, Q3 2026

Backlog

$835 million

End of Q3 2026

Cash and investments

$820.3 million

As of September 30, 2026; includes restricted cash

Gross margin

21.8%

Q3 2026, compared with 43.1% in Q2 2026

Adjusted EBITDA loss

$59.7 million

Q3 2026, compared with a $46.2 million loss in Q2 2026

Full-year revenue target

At least $550 million

2026; raised from a prior target of $525–$550 million

Company-wide Adjusted EBITDA profitability target

Q3 2027

Moved forward from Q4 2027

Previous Earnings Reports

1 past event · Latest: Aug 13

Same Type 1 event

1. Aug 13

   Q2 earnings report

   24h Move

   -8.8%

   Record Q2 revenue, $613 million backlog, and a raised 2026 revenue target of $525–$550 million.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

adjusted ebitda, unmanned ground vehicle (ugv), counter-uas, idiq, +1 more

5 terms

adjusted ebitda financial

"reiterating our forecast for break even at the operating platform level in Q4 2026."

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

unmanned ground vehicle (ugv) technical

"portfolio of unmanned ground vehicle (UGV) and autonomous land technologies"

An unmanned ground vehicle (UGV) is a robot that moves on land without a person inside, guided remotely or by onboard software, like a self-driving car for rough or specialized tasks. Investors watch UGVs because they can lower labor costs, open new markets in defense, logistics, and agriculture, and trigger regulations and contract opportunities; their commercial success affects revenue, margins, and risk profiles of companies involved.

counter-uas technical

"continued growth in CUAS."

Counter-UAS (counter-unmanned aircraft systems) are tools and tactics used to detect, track, and disable or divert drones that pose a threat to people, property, or operations. Think of them as a combination of a security camera, alarm system, and net that can find an unwanted flying device and stop it before it causes harm. Investors care because demand, regulation, and deployment of these systems affect revenue, contract opportunities, legal risk, and the valuation of companies that build or use them.

idiq technical

"Lethal Unmanned Systems (LUS) IDIQ."

An IDIQ (Indefinite Delivery/Indefinite Quantity) is a type of government procurement contract that sets terms and maximum limits for buying goods or services over a period without specifying exact delivery dates or quantities up front. For investors, an IDIQ signals a potential steady revenue stream and easier repeat business because it gives a company preferred access to future orders under agreed terms—think of it as a standing shopping account that can generate unpredictable but recurring sales.

gnss-denied navigation technical

"resilient connectivity, remote operation and GNSS-denied navigation."

GNSS-denied navigation is a method of determining a device’s location when satellite signals from global navigation systems are unavailable or blocked. It’s like trying to find your way in a place with no GPS reception, relying instead on other cues such as map data or nearby signals. This capability is important for ensuring reliable positioning in environments where satellite signals can be disrupted, which can impact navigation, security, and operational decision-making.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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WEST PALM BEACH, FL / ACCESS Newswire / November 12, 2026 / Ondas Inc. (NASDAQ:ONDS) ("Ondas" or the "Company"), a leading provider of advanced autonomous systems and next-generation defense and security technologies and services, reported record financial and operating results for the third quarter of 2026. Ondas generated revenue of $167.5 million in the third quarter, compared with $83.8 million in the second quarter of 2026 and $10.1 million in the third quarter of 2025. The results represent approximately 100% sequential revenue growth and more than a sixteen-fold year-over-year increase.

"This quarter demonstrates the growing benefits of Ondas' integrated operating platform," said Eric Brock, Chairman and CEO of Ondas. "Our businesses are gaining access to larger customers, broader channels, and stronger production and field-support capabilities, allowing mission-ready technologies to move more quickly from evaluation into deployment. The next phase is about disciplined execution: delivering on customer commitments, integrating our capabilities, and converting demand to sustainable growth and improving profitability."

"Our differentiation increasingly comes from combining autonomous systems, mission software, AI, and critical components into solutions that can be deployed and supported across multiple domains. Ondas Sentinel strengthens our ability to pursue and execute complex U.S. defense programs, while Regna AI extends our sovereign AI capabilities and creates opportunities to serve customers beyond our own hardware platforms. Together, these initiatives expand our addressable market, strengthen our customer relationships, and increase the software, services, and repeat revenue potential of the Ondas platform.

"We expect a strong finish to 2026, with momentum accelerating in the fourth quarter as volume deliveries ramp across existing programs and we convert pipeline opportunities into customer programs. Our order book remains healthy, our pipeline continues to expand, and our ability to produce, deliver, and sustain solutions for customers continues to strengthen. We are investing to support visible customer demand and build the production, supply-chain, deployment, and sustainment infrastructure required to deliver at scale. Over the next twelve months and beyond, we expect this growth to support meaningful operating leverage and improved profitability, supporting continued investment in innovation, market expansion, and long-term shareholder value."

Select Third Quarter 2026 and Recent Financial, Corporate and Business Development Highlights

Financial

• Delivered record financial performance, generating $167.5 million in revenue as compared to $10.1 million in Q3 2025, representing a more than 16x increase year-over-year.
• On a pro forma organic basis, assuming the current portfolio of business was owned throughout both periods, Q3 2026 revenue increased 64% year-over-year.
• Ended Q3 with $835 million in backlog and $820.3 million in cash, cash equivalents, restricted cash and short-term investments.
• Expecting significant progress to Adjusted EBITDA break even, including reiterating our forecast for break even at the operating platform level in Q4 2026.
• Updating our outlook for full company Adjusted EBITDA break even from Q4 2027 to Q3 2027.

Corporate Development

• Established Ondas Sentinel as a Core U.S. Defense Platform, bringing together DZYNE Technologies and World View under the leadership of Ryan Hartman and Matt McCue to accelerate the development, production and deployment of advanced defense technologies.
• Announced the formation of Regna AI, a standalone company initially wholly owned by Ondas, focused on developing and deploying mission-critical sovereign AI applications. Regna AI will leverage NVIDIA's Nemotron open-weight AI models and Palantir's integration and deployment platforms to accelerate the delivery of sovereign AI capabilities to defense and national security customers.
• Established a dedicated Land Systems segment within our OAS business unit, consolidating Ondas' growing portfolio of unmanned ground vehicle (UGV) and autonomous land technologies, including Roboteam, IndoEarth, 4M, Apeiro Motion and the recently acquired Ottopia.
• Completed six strategic acquisitions, including DZYNE Technologies, Cyberhawk, Gate/Bron, Ottopia, Insignito and Caribou Labs, expanding Ondas' technology portfolio, operational capabilities and market reach across key defense and security markets.
  • DZYNE - Significantly expands capabilities across ISR, Precision Strike and CUAS, while strengthening our presence in the U.S. defense market.
  • Cyberhawk - Adds scale within the industrial and commercial inspection markets with cross sell opportunities around critical infrastructure security.
• Advanced scaling of global supply chain infrastructure. Through a combination of internal investment and targeted acquisitions in key areas, the Company is preparing to rapidly increase the production capabilities around new high demand platforms. The recently announced planned acquisition of Stemme which develops and manufactures the ULTRA S12 airframe will strengthen Ondas' production capacity and supply chain to meet growing U.S. and allied demand for affordable, persistent long-endurance ISR.
• Established new long-endurance training, testing and flight operations hub in Springfield, Ohio for live training missions around the ULTRA and Stratollite platforms. This facility is located near the Wright- Patterson Air Force Base, which houses the Life Cycle Management Center, Ondas' main customer for ULTRA.
• GATE and BRON acquisitions - Expands our precision strike portfolio with critical electronic fuzing and safe-and-arm technologies.
• Insignito, Ottopia and Caribou acquisitions - Strengthens capabilities in advanced sensing, resilient connectivity, remote operation and GNSS-denied navigation.

Business Development

• Captured $214 million in new bookings during Q3 highlighted by $100 million in bookings at Sentinel anchored by $53.7 million in ULTRA follow-on orders, $21.7 million in IonStrike orders and continued growth in CUAS.
• Expanded Sentrycs' counter-UAS presence across major sporting venues, supporting protection at a majority of stadiums hosting the 2026 FIFA World Cup and securing selection by multiple NFL Stadiums, in an NFL first, to provide counter-drone protection advancing beyond detection to controlled mitigation of unauthorized drones by authorized operators.
• Opened office in Huntsville, Alabama to support customer marketing, demonstration, training and other services related to Ondas' Counter-UAS business.
• Secured U.S. Army follow-on task order related to the Lethal Unmanned Systems (LUS) IDIQ.
• Selected for multi-million dollar strategic "Digital Bat" program from Israeli MOD, where Ondas will provide a next-generation low-cost tactical attack drone platform powered by advanced software designed to address evolving operational environments.
• Launched Dronebuster® REACH, expanding its field-proven counter-UAS portfolio with long-range, non-kinetic drone defeat capabilities, with the first system under contract for delivery to the U.S. Office of Naval Research following acceptance testing.
• Successfully completed the first flight of Blitz Block 3, marking a key development milestone for Sentinel's next-generation, low-cost autonomous UAS platform and advancing its capabilities for scalable, multi-mission defense operations.

Third Quarter 2026 Financial Results

Revenue increased 100% sequentially to $167.5 million in Q3 2026, compared to $83.8 million in Q2 2026, while representing a more than 16-fold increase from $10.1 million in Q3 2025. On a pro forma organic basis, revenue increased 64% year over year, assuming the businesses owned and operated during Q3 2026 were also owned and operated in Q3 2025. Ondas believes that strong organic growth reflects the benefits of platform scale, shared technology, and expanded customer access. The increase further reflects strong performance across the Company's portfolio, particularly C-UAS systems, where demand remains strong given the long-term need to protect the lower skies across civilian and military airspace, as well as in precision strike and land systems.

Gross profit was $36.5 million in Q3 2026, as compared to $36.1 million in Q2 2026 and $2.6 million in Q3 2025. Gross margin was 21.8% in Q3 2026, as compared to 43.1% in Q2 2026 and 25.8% in Q3 2025. The sequential decline in gross margin was related to higher amortization of capitalized intellectual property, the step-up in acquired inventory associated with purchase accounting, as well as inefficiencies in the early stages of ramping large programs. Adjusted Gross Profit and Adjusted Gross Margin were $58.3 million and 34.8%, respectively, in Q3 2026, as compared to Adjusted Gross Profit and Adjusted Gross Margin of $42.3 million and 50.4%, respectively, in Q2 2026. The increase in Adjusted Gross Profit reflects higher revenue, from organic growth as well as from contributions of businesses acquired during the period. The lower Adjusted Gross Margin percentage reflects production and delivery inefficiencies, particularly in the precision strike segment, which represented a disproportionate share of revenue during the period. The Company expects similar gross margin levels in Q4 2026 due to mix with a recovery to historical levels with normal quarterly variability.

Operating expenses increased to $226.0 million in Q3 2026, compared with $199.1 million in Q2 2026 and $18.1 million in Q3 2025. The increase was primarily driven by $88.1 million of non-cash expenses during the quarter, mainly comprising $57.8 million of stock-based compensation, and $25.3 million of amortization expense, together with $14.1 million of acquisition-related cash expenses. Acquisition-related expenses were elevated due

to the timing of several acquisitions, including DZYNE, which was Ondas' largest acquisition to date.

Adjusted Cash Operating Expenses were $118.7 million in Q3 2026, compared to $88.8 million in Q2 2026 and $10.9 million in Q3 2025. This level of operating expense was consistent with our expectations and reflected the inclusion of acquired businesses during the quarter. The growth in adjusted cash operating expenses reflected the inclusion of newly acquired businesses along with continued investment in Ondas' operating platform and infrastructure in support of our expected significant revenue acceleration in the fourth quarter of 2026 and beyond. Research and development expense increased to $61.6 million in Q3 2026, up $30 million sequentially, reflecting the Company's rapid expansion of internal development capabilities, a significantly accelerated pace of product innovation, and intensified integration efforts across its growing technology platform.

Operating loss increased to $189.5 million in Q3 2026, compared to a $162.9 million loss in Q2 2026, and a $15.5 million loss in Q3 2025. The increase from both periods was the result of the changes described above and includes the aforementioned large non-cash expenses.

Total other income, net was $133.1 million in Q3 2026, compared to other income of $44.2 million in Q2 2026 and other income of $8.3 million in Q3 2025. Other income includes non-cash gains of $125.1 million relating to warrants issued in connection with the October 2025 and January 2026 equity raises. Because these warrants are remeasured at fair value each reporting period, the resulting non-cash gains and losses can create significant volatility in reported earnings that are unrelated to the Company's core operating performance, cash flows, or the economic terms of the warrants.

Net loss was $64.7 million in Q3 2026, which included the non-cash items mentioned above, as compared to net loss of $89.7 million in Q2 2026, and a net loss of $7.5 million in Q3 2025.

Adjusted EBITDA loss was $59.7 million in Q3 2026, as compared to a loss of $46.2 million in Q2 2026 and a loss of $8.1 million in Q3 2025. The higher sequential loss reflects the lower sequential gross margin; the investments made in continuing to scale Ondas' operating platform and corporate development activities to support the expected significant revenue expansion in Q4 2026 and into 2027.

A reconciliation of non-GAAP measures including Adjusted EBITDA, Adjusted Cash Operating Expense, Adjusted Gross Profit and Adjusted Gross Margin, is provided in the attached financial tables.

Operational and Financial Outlook

The Company expects continued strong momentum and is now targeting at least $550 million in full year revenue for 2026, which is an increase from the prior target of between $525 - $550 million. For Q4 2026, the Company is targeting revenue of greater than $250 million. The new full year target represents a projected year-on-year growth of greater than 10x reported 2025 results. Growth continues to be supported by both organic growth in the core business and the addition of acquired businesses. Ondas estimates pro forma year-over-year organic growth will be at least 75% for the fourth quarter of 2026.

Ondas is issuing an initial target of at least $1.1 billion in revenue for the full year 2027, which would represent 100% year over year growth and more than 40% year over year organic growth. The Company expects backlog to grow sequentially in the fourth quarter of 2026 based upon strong order visibility.

Growth in the fourth quarter is expected to be broad-based across Ondas' product portfolio, supported by a strong pipeline and existing backlog. Revenue generation is also expected to be supported by specific customer orders and programs already in backlog as well as production and delivery ramps in key products such as ULTRA and IonStrike, which have significant upside potential in 2027 and beyond as Ondas pursues program opportunities globally. Ondas expects continued volume shipments related to orders captured by Mistral under the $982 million Lethal Unmanned Strike (LUS) IDIQ award with the U.S. Army. Ondas also expects to begin volume deliveries in the fourth quarter for the $140 million combat engineering vehicles program announced earlier in the year.

The elevated losses in the first three quarters of 2026 represented a front-loading of expenses ahead of the continued significant revenue ramp into 2027, as well as some inefficiencies in scaling some large programs in the third quarter. The Company believes the early ramp-up inefficiencies that negatively affected third-quarter gross margin were temporary and that the elevated operating expenses in 2026 represented investments necessary to support long-term growth. The Company expects Adjusted EBITDA losses to show significant declines in the coming quarters through higher operating leverage benefiting from strong growth in revenues and gross profits driven by visible demand tailwinds and increased operating leverage from Ondas expanding platform.

The Company continues to expect to see Adjusted EBITDA profitability in Q4 2026 at the operating platform level, which includes OAS and Ondas Sentinel. Ondas now expects company-wide Adjusted EBITDA profitability by Q3 2027, one quarter earlier than its prior expectations driven by revenue and gross profit generation relative to moderating operating expense growth.

Ondas maintains a strong balance sheet and liquidity profile and held approximately $820 million in cash, restricted cash, cash equivalents, and short-term investments as of September 30, 2026.

Earnings Conference Call & Audio Webcast Details

Date: Thursday, November 12, 2026

Time: 8:30 a.m. Eastern Time

Toll-free dial-in number: 844-883-3907

International dial-in number: 1-412-317-5798

Call participant pre-registration link: here

The Company encourages listeners to pre-register, which allows callers to gain immediate access and bypass the live operator. Please note that you can register at any time during the call. For those who choose not to pre-register, please call the conference telephone number 10-15 minutes prior to the start time, at which time an operator will register your name and organization.

The conference call will also be broadcast live and available for replay here and via the investor relations section of the Company's website at ir.ondas.com. A replay will be accessible from the investor relations website after completion of the event.

About Ondas Inc.

Ondas Inc. (Nasdaq:ONDS) is a leading provider of autonomous systems, robotics, and mission-critical technologies for defense, homeland security, public safety, critical infrastructure, and industrial markets. The Company develops and deploys integrated unmanned and autonomous platforms across air, ground, and stratospheric environments, including autonomous drone systems, counter-UAS technologies, robotic ground systems, advanced unmanned aircraft and propulsion solutions, demining and engineering systems, and integrated sensing and communications technologies designed to support intelligence, surveillance, reconnaissance, security, and operational missions in complex environments. Ondas' solutions are deployed globally by government, defense, and commercial customers to protect infrastructure, borders, transportation networks, personnel, and strategic assets.

For additional information on Ondas Inc., visit www.ondas.com.

Forward-Looking Statements

Statements made in this release that are not statements of historical or current facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance, or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors, including the risks discussed under the heading "Risk Factors" discussed under the caption "Item 1A. Risk Factors" in Part I of our most recent Annual Report on Form 10-K or any updates discussed under the caption "Item 1A. Risk Factors" in Part II of our Quarterly Reports on Form 10-Q and in our other filings with the SEC. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise that occur after that date, except as required by law.

Contacts

IR Contact for Ondas Inc.
888-657-2377
ir@ondas.com

Media Contact for Ondas Inc.
Escalate PR
ondas@escalatepr.com

Preston Grimes
Marketing Manager, Ondas Inc.
preston.grimes@ondas.com

ONDAS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except par value)

		September 30, 2026				December 31, 2025
		(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents		$	262,811			$	550,744
Restricted cash			31,463				43,615
Short-term investments			526,062				21,750
Accounts receivable, net			127,337				22,356
Inventory, net			110,719				21,963
Other current assets			238,377				25,473
Total current assets			1,296,769				685,901
Property and equipment, net			51,581				10,217
Goodwill			1,500,967				251,809
Intangible assets, net			1,025,448				136,890
Investment in unconsolidated affiliates			30,288				-
Long-term equity investments			49,141				35,587
Other assets			73,646				12,437
Total assets		$	4,027,840			$	1,132,841
LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable		$	85,675			$	13,873
Accrued expenses and other current liabilities			196,313				33,970
Accrued purchase and contingent consideration			59,259				75,000
Notes payable, related party			-				1,500
Notes payable			909				704
Convertible notes payable, related party			-				3,500
Convertible notes payable			893				2,950
Government grant liability			1,781				2,295
Deferred revenue			37,822				8,029
Total current liabilities			382,652				141,821
Notes payable, net of current portion			153				-
Accrued purchase and contingent consideration, net of current portion			208,905				-
Convertible notes payable, net of current portion			4,153				3,834
Government grant liability, net of current portion			1,945				1,362
Warrant liability			918,632				489,434
Deferred tax liability			87,473				14,531
Other long-term liabilities			53,184				10,244
Total liabilities			1,657,097				661,226
Commitments and contingencies
Temporary Equity
Redeemable noncontrolling interests			-				29,796
Stockholders Equity:
Preferred stock - par value $0.0001; 5,000,000 shares authorized at September 30, 2026 and December 31, 2025, and none issued or outstanding at September 30, 2026 and December 31, 2025			-				-
Series A Convertible Preferred stock - par value $0.0001; 5,000,000 shares authorized at September 30, 2026 and December 31, 2025, and none issued or outstanding at September 30, 2026 and December 31, 2025			-				-
Common stock - par value $0.0001; 1,200,000,000 shares authorized at September 30, 2026 and December 31, 2025, 590,159,870 and 380,763,481 issued and outstanding at September 30, 2026 and December 31, 2025, respectively			58				38
Additional paid in capital			2,537,652				805,828
Accumulated other comprehensive income (loss)			(14,155	)			329
Accumulated deficit			(156,250	)			(368,387	)
Total Ondas Inc. stockholders' equity			2,367,305				437,808
Noncontrolling interest			3,438				4,011
Total stockholders' equity			2,370,743				441,819
Total liabilities, temporary equity, and stockholders' equity		$	4,027,840			$	1,132,841

ONDAS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)

		Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
Revenues, net		$	167,489			$	10,098			$	301,383			$	20,620
Cost of goods sold			130,989				7,494				205,581				13,195
Gross profit			36,500				2,604				95,802				7,425
Operating expenses:
General and administrative			124,649				10,595				294,485				22,583
Sales and marketing			36,673				3,000				68,049				7,696
Research and development			61,594				4,513				106,066				12,209
Change in fair value of contingent consideration			3,090				-				22,323				-
Total operating expenses			226,006				18,108				490,923				42,488
Operating loss			(189,506	)			(15,504	)			(395,121	)			(35,063	)
Other income (expense), net
Interest expense			(615	)			(444	)			(1,993	)			(5,873	)
Other income (expense), net			133,696				8,774				583,439				8,875
Total other income (expense), net			133,081				8,330				581,446				3,002
Income (loss) before provision for income taxes			(56,425	)			(7,174	)			186,325				(32,061	)
Provision for (benefit from) income taxes			8,247				307				(20,560	)			307
Net income (loss)			(64,672	)			(7,481	)			206,885				(32,368	)
Less preferred dividends attributable to noncontrolling interest			-				390				-				1,170
Less deemed dividends attributable to accretion of redemption value			-				925				1,631				2,620
Net loss attributable to noncontrolling interests			(2,105	)			(13	)			(5,254	)			(13	)
Net income (loss) attributable to Ondas Inc. stockholders		$	(62,567	)		$	(8,783	)		$	210,508			$	(36,145	)
Net income (loss) per share - basic		$	(0.10	)		$	(0.03	)		$	0.30			$	(0.21	)
Net income (loss) per share - diluted		$	(0.10	)		$	(0.03	)		$	0.27			$	(0.21	)
Weighted average number of common shares outstanding, basic and diluted
Basic			617,641				259,909				521,778				172,423
Diluted			617,988				259,909				538,441				172,423

ONDAS INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(dollars in thousands)
(Unaudited)

		Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
Net income (loss)		$	(64,672	)		$	(7,481	)		$	206,885			$	(32,368	)
Other comprehensive income (loss):
Foreign currency translation			(14,631	)			-				(12,497	)			-
Available-for-sale investments:
Unrealized gain (loss), net			(980	)			-				(1,639	)			-
Comprehensive income (loss)		$	(80,283	)		$	(7,481	)		$	192,749			$	(32,368	)
Comprehensive income (loss) attributable to:
Comprehensive loss attributable to noncontrolling interests		$	(2,105	)		$	(13	)		$	(5,254	)		$	(13	)
Foreign currency translation adjustments attributable to noncontrolling interests			(42	)			-				349				-
Noncontrolling interests			(2,147	)			(13	)			(4,905	)			(13	)
Comprehensive income (loss) attributable to Ondas Inc. stockholders		$	(78,136	)		$	(7,468	)		$	197,654			$	(32,355	)

Non-GAAP Measures

As required by the rules of the Securities and Exchange Commission ("SEC"), we provide a reconciliation of our non-GAAP financial measures to the most directly comparable GAAP measures. These reconciliations are set forth in the tables below.

We believe that Adjusted earnings before interest, taxes, depreciation, and amortization ("Adjusted EBITDA") is a useful supplemental measure for evaluating our operating performance and period to period trends because it eliminates the impact of items that primarily reflect our capital structure, tax position, non-cash accounting charges, acquisition-related transaction costs, and other items that management does not consider indicative of ongoing operating performance. Adjusted EBITDA should be considered in addition to, and not as a substitute for, net income (loss) and other measures prepared in accordance with GAAP. Adjusted EBITDA removes the effects of interest and financing-related items, depreciation and amortization, income taxes, stock-based compensation and expense, acquisition-related expenses, change in fair value of contingent consideration and other acquisition related obligations, acquisition related inventory fair value step ups, qualifying acquisition related employee costs, qualifying acquisition integration costs and other non-operating gains and losses. Management believes that excluding these items enhances comparability across periods and facilitates analysis of underlying operating trends.

Adjusted Cash Operating Expense is a non-GAAP financial measure that represents total operating expenses excluding depreciation, amortization of intangible assets, acquisition-related expenses, change in fair value of contingent consideration and other acquisition related obligations, qualifying acquisition related employee costs, qualifying acquisition integration costs and stock-based compensation and expense. The most directly comparable GAAP measure to Adjusted Cash Operating Expense is total operating expenses. Management believes Adjusted Cash Operating Expense provides useful supplemental information by facilitating analysis of the Company's ongoing cash operating costs and meaningful period-to-period comparisons. Management uses this measure for internal cost management, budgeting, and to evaluate operating trends excluding specified non-cash accounting charges and certain acquisition related cash costs. Adjusted Cash Operating Expense should be considered in addition to, and not as a substitute for, total operating expenses prepared in accordance with GAAP.

Beginning in the period ended June 30, 2026, the Company revised its calculation of Adjusted EBITDA and Adjusted Cash Operating Expense to exclude changes in the fair value of contingent consideration and other acquisition related obligations. These amounts reflect periodic remeasurement adjustments required under U.S. GAAP and are primarily driven by changes in estimates and assumptions related to future earn-out payments. Management believes excluding these acquisition-related fair value adjustments improves period-to-period comparability and provides investors with additional insight into the Company's operating performance. This revision did not affect any previously reported Adjusted EBITDA or Adjusted Cash Operating Expense amounts because no gains or losses related to changes in the fair value of contingent consideration were recognized in the prior periods presented. In connection with this change, the Company renamed 'Cash Operating Expense' to 'Adjusted Cash Operating Expense'. The revised caption is intended to more clearly communicate the measure as a management-defined non-GAAP performance measure that excludes specified cash and noncash expenses and does not represent all operating expenses requiring cash settlement.

Also beginning in the period ended June 30, 2026, the Company introduced Adjusted Gross Profit and Adjusted Gross Margin. Adjusted Gross Profit is a non-GAAP financial measure that represents gross profit excluding amortization of acquisition-related intangible assets, acquisition related inventory fair value step ups and stock-based compensation and expense included in cost of goods sold. Adjusted Gross Margin is a non-GAAP financial measure that represents Adjusted Gross Profit as a percentage of revenue. The most directly comparable GAAP measures to Adjusted Gross Profit and Adjusted Gross Margin are gross profit and gross margin (gross profit as a percentage of revenue), respectively. Management believes these measures provide investors with additional insight into the underlying profitability of the Company's products and services, operating performance and period-to-period trends. Comparative prior-period amounts have been presented on a consistent basis.

Beginning with the period ended September 30, 2026, the Company further revised the definition of Adjusted EBITDA to exclude acquisition related inventory fair value step ups, qualifying acquisition related employee costs and qualifying acquisition integration costs. Correspondingly, the definition of Adjusted Cash Operating Expense was revised to exclude qualifying acquisition related employee costs and qualifying acquisition integration costs. In addition, the definition of Adjusted Gross Profit was revised to exclude acquisition related inventory fair value step ups. Management believes these revisions facilitate period to period comparability and analysis of the Company's underlying operating performance and cost trends. These revisions did not affect previously reported non-GAAP measures, as no amounts qualifying under the newly added categories were recognized in prior periods presented.

Management uses Adjusted EBITDA, Adjusted Cash Operating Expense, Adjusted Gross Profit, and Adjusted Gross Margin together with GAAP results, in making operating and planning decisions and in evaluating the Company's ongoing performance. Other companies may calculate similarly titled non-GAAP measures differently, and therefore our non-GAAP measures may not be comparable to measures used by other companies.

		Three Months Ended												Nine Months Ended September 30,
(dollars in thousands)		September 30, 2026				September 30, 2025				June 30, 2026				2026				2025
Net income (loss)		$	(64,672	)		$	(7,481	)		$	(89,696	)		$	206,885			$	(32,368	)
Depreciation			2,578				196				934				4,181				566
Amortization of intangible assets			33,072				1,087				18,641				57,335				3,204
Acquisition-related expenses (1)			14,114				707				4,414				24,372				707
Stock-based compensation and expense			59,847				5,459				69,094				148,599				9,211
Change in fair value of contingent consideration			3,090				-				19,234				22,323				-
Provision for (benefit from) income taxes			8,247				307				(29,053	)			(20,560	)			307
Other (income) expense, net (2)			(133,081	)			(8,330	)			(44,197	)			(581,446	)			(3,002	)
Qualifying acquisition related employee costs (3)			7,269				-				4,409				11,678				-
Qualifying acquisition integration costs (4)			238				-				-				238				-
Inventory step-up(5)			9,636				-				-				9,636				-
Adjusted EBITDA		$	(59,662	)		$	(8,055	)		$	(46,220	)		$	(116,759	)		$	(21,375	)

(1) Acquisition-related expenses include legal, accounting, and other due diligence costs incurred in connection with completed or pending acquisitions.

(2) Other (income) expense, net includes interest and dividend income, unrealized gain and losses on investments, interest expense, foreign exchange gain and loss, the change in the fair value of government grant liabilities and warrant liability, and other income (expense), net included on the Company's unaudited Condensed Consolidated Statements of Operations.

(3) Qualifying acquisition related employee costs include incremental and finite retention or transaction payments established in direct connection with an acquisition and exclude ordinary ongoing employee compensation.

(4) Qualifying acquisition integration costs include directly identifiable, incremental costs incurred to integrate acquired businesses and exclude ordinary ongoing operating costs of the combined business.

(5) Inventory fair value step-up expense recognized as a result of acquisition accounting for completed acquisitions.

		Three Months Ended												Nine Months Ended September 30,
(dollars in thousands)		September 30, 2026				September 30, 2025				June 30, 2026				2026				2025
Total operating expenses		$	226,006			$	18,108			$	199,077			$	490,923			$	42,488
Depreciation			(1,866	)			(191	)			(571	)			(2,909	)			(532	)
Amortization of intangible assets			(25,324	)			(1,087	)			(13,963	)			(44,909	)			(3,204	)
Acquisition-related expenses (1)			(14,114	)			(707	)			(4,414	)			(24,372	)			(707	)
Change in fair value of contingent consideration			(3,090	)			-				(19,234	)			(22,323	)			-
Stock-based compensation and expense			(57,811	)			(5,227	)			(67,651	)			(143,960	)			(8,651	)
Qualifying acquisition related employee costs (2)			(4,892	)			-				(4,409	)			(9,301	)			-
Qualifying acquisition integration costs (3)			(238	)			-				-				(238	)			-
Adjusted Cash Operating Expenses		$	118,671			$	10,896			$	88,835			$	242,911			$	29,394

(1) Acquisition-related expenses include legal, accounting, and other due diligence costs incurred in connection with completed or pending acquisitions.

(2) Qualifying acquisition related employee costs include incremental and finite retention or transaction payments established in direct connection with an acquisition and exclude ordinary ongoing employee compensation.

(3) Qualifying acquisition integration costs include directly identifiable, incremental costs incurred to integrate acquired businesses and exclude ordinary ongoing operating costs of the combined business.

		Three Months Ended												Nine Months Ended September 30,
(dollars in thousands)		September 30, 2026				September 30, 2025				June 30, 2026				2026				2025
Revenue		$	167,489			$	10,098			$	83,772			$	301,383			$	20,620
Cost of goods sold			130,989				7,494				47,641				205,581				13,195
Gross profit (GAAP)		$	36,500			$	2,604			$	36,131			$	95,802			$	7,425
Amortization of acquisition-related intangible assets			7,748				-				4,678				12,426				-
Stock-based compensation and expense			2,035				233				1,443				4,639				560
Qualifying acquisition related employee costs(1)			2,378				-				-				2,378				-
Inventory step-up(2)			9,636				-				-				9,636				-
Adjusted Gross Profit (Non-GAAP)		$	58,297			$	2,837			$	42,252			$	124,881			$	7,985
Gross margin (GAAP)			21.8	%			25.8	%			43.1	%			31.8	%			36.0	%
Adjusted Gross Margin (Non-GAAP)			34.8	%			28.1	%			50.4	%			41.4	%			38.7	%

(1) Qualifying acquisition related employee costs include incremental and finite retention or transaction payments established in direct connection with an acquisition and exclude ordinary ongoing employee compensation.

(2) Inventory fair value step-up expense recognized as a result of acquisition accounting for completed acquisitions.

SOURCE: Ondas Inc.

View the original press release on ACCESS Newswire

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much did Ondas revenue grow in Q3 2026?

Ondas generated $167.5 million in Q3 2026 revenue, compared with $83.8 million in Q2 2026 and $10.1 million in Q3 2025. Pro forma organic revenue grew 64% year over year, assuming the businesses owned during Q3 2026 were also owned during Q3 2025.

What are Ondas revenue targets for 2026 and 2027?

Ondas targets at least $550 million for 2026 and at least $1.1 billion for 2027. The 2026 target increased from $525–$550 million. The company targets Q4 2026 revenue of greater than $250 million and estimates pro forma organic growth of at least 75% for that quarter.

Why did Ondas gross margin decline in Q3 2026?

The sequential gross margin decline reflected higher amortization of capitalized intellectual property, acquired-inventory purchase-accounting adjustments and inefficiencies while ramping large programs. Adjusted gross margin also reflected production and delivery inefficiencies, particularly in precision strike, which accounted for a disproportionate share of quarterly revenue.

What orders contributed to Ondas Sentinel bookings in Q3 2026?

Sentinel recorded $100 million in bookings, anchored by $53.7 million in ULTRA follow-on orders and $21.7 million in IonStrike orders. Continued growth in counter-drone systems also contributed.

What technology will Ondas Regna AI use?

Regna AI will use NVIDIA's Nemotron open-weight AI models and Palantir's integration and deployment platforms. The initially wholly owned company plans to develop and deploy mission-critical sovereign AI applications for defense and national security customers.