WEST PALM BEACH, Florida, August 29, 2026, 11:43 (EDT). Ondas shares fell 9.7% after the company disclosed revenue surged thirteen times, but posted an EBITDA loss of $50.6 million.
- Ondas ended Friday at $7.90, falling 9.71% with 69.5 million shares traded.
- Revenue for the second quarter surged over thirteen times to $83.8 million.
- Adjusted EBITDA loss increased to $50.6 million, with gross margin declining to 43.1%.
Ondas Inc. stock dropped 9.71% on Friday, even as the autonomous-systems company posted its best quarterly results. The fall challenged the extent to which investors are willing to back growth while operating losses remain elevated.
The stock settled at $7.90, moving within a range of $7.87 to $8.71 during the session. Trading volume totaled 69.5 million shares, exceeding its recent average by approximately 7%. At the closing price, this equates to about $549 million in turnover Yahoo Finance.
Ondas Inc. NASDAQ: ONDS posted second-quarter revenue of $83.8 million, according to company results. This figure is over thirteen times higher than sales of $6.3 million in the year-ago quarter.
The operating outlook remained uncertain. Adjusted EBITDA loss increased to $50.6 million compared to $5.8 million. Gross margin decreased to 43.1% from 53.1% in the same period last year.
| Measure | Q2 2026 | Comparison |
|---|---|---|
| Revenue | $83.8 million | $6.3 million, Q2 2025 |
| Gross margin | 43.1% | 53.1%, Q2 2025 |
| Adjusted EBITDA | -$50.6 million | -$5.8 million, Q2 2025 |
| Reported backlog | $613 million | $757 million pro forma |
| 2026 revenue target | $525–$550 million | Updated August 13 |
The distinction is significant given the present valuation. With a market capitalisation close to $4.5 billion, the figure represents roughly 8.4 times the midpoint of management’s 2026 revenue guidance. This multiple is based on the assumption that the order book converts without substantial acquisition-related delays.
The backlog provides transparency. Ondas disclosed $613 million as of June 30, rising to $757 million when factoring in DZYNE Technologies and Cyberhawk. Orders reached $175 million in the second quarter, with an additional $105 million secured by August 10.
Cash reserves also support the growth. At the end of the quarter, Ondas reported $1.4 billion in cash, restricted cash, and short-term investments. Roughly $325 million of this was later allocated for the DZYNE and Cyberhawk purchases.
Management projected third-quarter revenue between $140 million and $155 million, with the midpoint suggesting a 76% increase from the prior quarter. Chief Executive Eric Brock stated the order momentum backs a “significant revenue ramp” during 2026.
However, expenses are increasing at a greater pace. Cash operating expense, when adjusted, stood at $93.3 million for the quarter. Reported operating expense totaled $199.1 million, with non-cash charges accounting for $105.8 million of that amount.
The company projects that its operating platforms will achieve adjusted EBITDA profitability by the fourth quarter of 2026, while it aims for overall company profitability by the fourth quarter of 2027. These timelines have become more significant than any new order announcement.
Analysts keep a positive outlook. Data from Investing.com shows nine analysts set an average price target close to $19.42, with estimates ranging from $13 to $25 as of August 29 analyst estimates. These targets may not immediately reflect acquisitions or swift changes in share count.
No fresh company announcement or filing was issued to account for Friday’s drop. The most recent official news was the August 18 acquisition agreement for Aran Defense Ondas investor relations. The slide, as a result, appears to reflect a reassessment of value rather than a new operational development.
Risks: conversion of backlog could be delayed, integration costs may arise from acquired businesses, and issuing more equity could dilute shareholder value. Improved defense procurement speed or better margins would counter the negative outlook.
The upcoming test is straightforward. Revenue should come close to meeting guidance, and losses need to plateau instead of increasing in line with it. Trading volume on Friday indicates that investors may no longer see growth by itself as sufficient.
Related articles: NASDAQ:ONDS
