Ondas (ONDS) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 revenue of $83.8 million, up over 13x year-over-year and 67% sequentially, with 85% organic growth on a pro forma basis, driven by core business expansion and strategic acquisitions.

• Increased full-year 2026 revenue target to $525–$550 million, reflecting strong pipeline and backlog conversion, implying over 10x 2025 revenue and >30% organic growth.

• Backlog reached $757 million at June 30, up 66% sequentially, with a two-year strategic program pipeline exceeding $11 billion and $105 million in new Q3 orders.

• Integration of recent acquisitions (DZYNE, Cyberhawk, World View, Mistral, Rotron, Bird Aerosystems, Indo Earth Moving, Omnisys) and technology platforms is accelerating, leveraging operational synergies and expanding global reach.

• Growth is broad-based across all strategic market segments and geographies, supported by strong order momentum, major program wins, and global expansion.

Financial highlights

• Q2 2026 revenue: $83.8 million (Q1 2026: $50.1 million; Q2 2025: $6.3 million), up 1,235% year-over-year.

• Gross profit: $36.1 million; gross margin: 43.1% (down from 53.1% YoY); adjusted gross margin: 50.4%, stable quarter-over-quarter.

• Adjusted cash operating expenses: $93.3 million, reflecting integration and growth investments.

• Adjusted EBITDA loss: $50.6 million, expected to peak in Q2 and improve as revenue scales.

• Ended Q2 with $1.4 billion in cash, cash equivalents, restricted cash, and short-term investments.

Outlook and guidance

• FY26 revenue guidance raised to $525–$550 million; Q3 revenue expected at $140–$155 million, with >30% organic growth year-over-year on a pro forma basis.

• Expects adjusted EBITDA profitability at the operating platform level by Q4 2026 and company-wide by Q4 2027.

• Anticipates narrowing adjusted EBITDA losses in H2 2026, with major program deliveries and backlog conversion to drive revenue acceleration.

• Expects to exit 2026 at $1 billion annualized run-rate revenue, ahead of 2030 targets.

• Management expects sufficient liquidity to fund operations and planned capital expenditures for at least the next twelve months.