Ondas quarterly revenue hits $167.5 million as company raises 2026 target to $550 million
Key Facts
Ondas reported record third-quarter 2026 revenue of $167.5 million, compared with $83.8 million in the second quarter and $10.1 million a year earlier, according to a company statement. It raised its full-year revenue target to at least $550 million, from a previous range of $525 million to $550 million. The company said quarterly revenue rose 64% on a pro forma organic basis from a year earlier, assuming it had owned its current portfolio of businesses throughout both periods. It also recorded $214 million in new orders during the quarter, while backlog reached $835 million, up 36% from the previous quarter. The results combine accelerating revenue and orders with margin pressure and a larger adjusted operating loss, as the company bets on continued growth in deliveries to support its upcoming targets.
Ondas said its new 2026 target represents an increase from its previous forecast range of $525 million to $550 million, while its initial 2027 target calls for revenue of at least $1.1 billion, excluding any additional acquisitions. The company estimated that the 2027 level would represent annual growth of 100%, with organic growth exceeding 40%. The target announcement followed third-quarter revenue of $167.5 million, above analysts’ estimate of $148.33 million, according to a report published by Investing.com under the Reuters brand. The report also cited an adjusted per-share loss of $0.10, compared with an expected loss of $0.13. The announced forecasts rely on continued expansion in revenue and orders, but the quarterly results also showed that the larger business volume has not yet translated into improved margins or a smaller adjusted EBITDA loss.
Gross margin was 21.8% in the third quarter, down from 43.1% in the second quarter and 25.8% in the year-earlier period, the company said. Ondas attributed the sequential decline to accounting effects related to acquisitions and inefficiencies in early-stage production. It also said production and delivery challenges were more pronounced in its precision strike business, which accounted for a disproportionately large share of revenue. The company said it expects gross margins to remain at similar levels in the fourth quarter because of product mix. The higher revenue target for the coming quarter therefore comes during a period when the company expects product mix to continue weighing on margins, alongside its efforts to increase deliveries.
The company posted an adjusted EBITDA loss of $59.7 million in the third quarter, compared with losses of $46.2 million in the second quarter and $8.1 million in the third quarter of 2025. Ondas expects to reach adjusted profitability at the operating-platform level in the fourth quarter of 2026; those platforms include OAS and Ondas Sentinel. For the company as a whole, it now expects to reach adjusted profitability by the third quarter of 2027, ahead of its previous target of the fourth quarter of that year. The company said moving the target forward by one quarter reflects an update to its profitability outlook, but does not change the fact that group-level profitability remains targeted for 2027. These timelines put the fourth-quarter operating target ahead of the target for profitability across the company as a whole.
Ondas had about $820 million in cash, restricted cash and cash equivalents, and short-term investments as of September 30, 2026, according to its statement. That balance coincided with backlog reaching $835 million at quarter-end, after growing 36% sequentially. For the fourth quarter of 2026, the company is targeting revenue above $250 million and pro forma organic growth of at least 75% year over year. It also said it expects to reach adjusted profitability at the operating-platform level during the same quarter. These targets mark the next operating milestone after the company raised its annual estimate to at least $550 million, while it expects gross margin to remain at similar levels to the third quarter because of product mix.
In premarket trading on November 12, Ondas shares fell 7.16% to $5.32, according to the report published under the Reuters brand on Investing.com after the results announcement. The decline came despite quarterly revenue exceeding analysts’ estimate of $148.33 million and an adjusted per-share loss that was smaller than expected. The report said the adjusted per-share loss was $0.10, compared with an expected loss of $0.13. The stock’s reaction coincided with the company announcing higher revenue targets for 2026 and 2027, alongside figures showing a lower gross margin and a wider adjusted EBITDA loss than in the comparison periods. The fourth-quarter targets, which include revenue above $250 million and pro forma organic growth of at least 75%, are the company’s next near-term milestone.