Ondas (ONDS) Stock Surges as Q1 Revenue Tops 1,000% YoY Growth

TLDR

• Ondas posted Q1 revenue of $50.1M, up over 1,000% year-over-year, beating estimates by $10.76M.
• The company raised its full-year 2026 revenue target to at least $390M, up from $375M, representing ~670% growth.
• Pro forma backlog jumped to $457M from $68.3M at year-end 2025, a 570% increase.
• Product companies turned adjusted EBITDA positive in Q1, six months ahead of internal targets.
• Ondas holds $1.48B in cash and equivalents, supporting its ongoing acquisition strategy.

Ondas (ONDS) reported first-quarter 2026 revenue of $50.1 million, a more than ten-fold increase from $4.3 million in Q1 2025. The result beat Wall Street estimates by $10.76 million and came in 25% above the high end of the company’s own guidance.

The stock is in focus after the company also lifted its full-year 2026 revenue target to at least $390 million, up from a prior target of $375 million, against a consensus estimate of $379.05 million.

Ondas Holdings Inc., ONDS

Revenue also rose 66% from the prior quarter, when Ondas brought in $30.1 million. Gross profit hit $24.7 million in the quarter, with margins improving to 49% from 42% in Q4 2025.

The company’s backlog told an even bigger story. Pro forma backlog reached $457 million at the end of Q1, up from $68.3 million at the close of 2025. That 570% increase was driven by new orders and the addition of recently acquired companies, including Mistral Inc. and World View Enterprises, which closed in April 2026.

Acquisitions Driving the Numbers

Ondas has been on an aggressive acquisition run. During and after Q1, the company added Rotron Aerospace, Mistral Inc., Bird Aero, Indo-Earth, and World View to its portfolio.

Mistral brings a prime contractor position in a $982 million IDIQ program with the U.S. Army for loitering munitions. World View adds a stratospheric balloon platform for persistent ISR and communications.

The company also formed ONBERG, a 51%-owned joint venture with Heidelberger Druckmaschinen AG, to create a European manufacturing and sales platform focused on counter-UAS and ISR systems.

4M Defense and INDO Earth secured approximately $220 million in combined tender wins in early 2026, according to the company.

Path to Profitability

Product companies turned adjusted EBITDA positive in Q1, which Ondas said was six months ahead of its internal targets. The company now expects its Ondas Autonomous Systems segment to reach adjusted EBITDA profitability by Q1 2027, pulled forward from a prior target of Q3 2027.

Company-wide adjusted EBITDA profitability remains on track for Q1 2028.

Operating expenses increased to $67.3 million in Q1, up from $36 million in Q4 2025, driven by acquisitions, higher personnel costs, and amortization of intangibles. The operating loss widened to $42.7 million.

Net income of $361.2 million in the quarter was largely the result of non-cash items, including a $389.5 million warrant revaluation gain.

Adjusted EBITDA loss came in at $10.9 million, compared to a $7.5 million loss in Q1 2025.

Ondas ended the quarter with $1.48 billion in cash, cash equivalents, restricted cash, and short-term investments. The company said it expects to complete additional acquisitions in 2026 that would add further revenue to its outlook.

Management held an earnings call on May 14 at 8:30 a.m. ET to discuss the results.

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