WEST PALM BEACH, Florida, August 30, 2026, 09:08 (EDT) – Shares of Ondas declined by 9.7% after the company reported an EBITDA loss of $50.6 million, while its backlog stood at $757 million.
- Ondas ended Friday at $7.90, falling 9.71%, with 69.97 million shares traded.
- Pro forma backlog stood at $757 million, compared with $68 million at the end of 2025.
- Adjusted EBITDA loss increased to $50.6 million in the second quarter.
- There are still 10 Buy ratings from analysts, with no Holds or Sells reported.
Ondas Inc. (NASDAQ: ONDS) slid 9.71% on Friday, wiping out roughly $485 million in market capitalization. Shares ended the session at $7.90, after touching an intraday low of $7.87.
The decline in shares intensified scrutiny over valuation. Ondas has accumulated a significant defense-technology backlog, yet its operating platform continues to burn cash.
Trading volume totaled 69.97 million shares, representing roughly 81% of the 65-day average. This indicates that while significant price pressure was present, it did not amount to an extraordinary liquidity event market data.
Ondas posted second-quarter revenue of $83.8 million, a 67% increase from the previous quarter. Pro forma organic growth rose 85% compared with the same period last year company results.
As of June 30, reported backlog stood at $613 million. On a pro forma basis, factoring in DZYNE and Cyberhawk, backlog totaled $757 million.
The backlog represents 1.41 times the midpoint of the company’s 2026 revenue outlook. Ondas has set its 2026 revenue target at $525 million to $550 million.
| Investor measure | Q2 2026 / current | Reference point |
|---|---|---|
| Revenue | $83.8 million | $50.1 million in Q1 |
| Gross margin | 43.1% | 49.2% in Q1 |
| Adjusted EBITDA | -$50.6 million | -$10.9 million in Q1 |
| Pro forma backlog | $757 million | $68 million at 2025 year-end |
| 2026 revenue target | $525-$550 million | $390 million prior to July update |
Margins provide a reason for the subdued outlook. Gross margin fell to 43.1% compared to 49.2% in the previous quarter, as operating expenses increased to $199.1 million.
Non-cash items accounted for about $105.8 million of those expenses. Nevertheless, adjusted cash operating expense climbed to $93.3 million, almost three times higher than the level in the first quarter.
The balance sheet provides financial runway. Ondas reported having $1.4 billion in cash, restricted cash and short-term investments as of June 30, and subsequently spent about $325 million on DZYNE and Cyberhawk.
The market value stood at about $4.5 billion at Friday’s close, based on 570.6 million shares in circulation. This represents approximately 8.4 times the midpoint of the company’s projected 2026 revenue quarterly filing.
Management projects third-quarter revenue between $140 million and $155 million. The midpoint suggests a 76% increase from the previous quarter, with adjusted EBITDA losses anticipated to narrow.
Analysts continue to have a positive outlook. According to FactSet, there are 10 Buy recommendations, with no Hold or Sell ratings, and the consensus price target stands at $19.42 as of August 28.
The targets are 146% higher than Friday’s closing price. This difference highlights the size of the revenue potential as well as the significant execution challenges involved.
Risks: There is a possibility that the backlog converts later than anticipated. Acquisitions may introduce integration expenses, margins could stay under pressure, and additional equity issuance might lead to shareholder dilution.
The upcoming test will be third-quarter earnings set for November 16. Investors are expected to pay attention to backlog conversion, cash operating expenses, and the targeted improvement in EBITDA.
Related articles: NASDAQ:ONDS
