Ondas CEO Sees Q4 Momentum Accelerating – Firm Now Expects Adjusted EBITDA Break-Even A Quarter Earlier In 2027

• Ondas reported a record Q3 revenue of $167.5 million, well above Wall Street’s estimate of roughly $148 million, according to Fiscal.ai.
• The company raised its FY 2026 revenue outlook to at least $550 million.
• Q3 gross margin declined to 21.8% from 43.1% in the previous quarter.

Ondas (ONDS) said on Thursday it expects to reach company-wide adjusted earnings before interest, tax, depreciation and amortization (EBITDA) break-even in the third quarter of 2027, three months ahead of schedule.

The defense firm also forecast an initial full-year 2027 revenue target of at least $1.1 billion, which would represent about a 100% year-over-year growth.

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Ondas reported a record third-quarter (Q3) revenue of $167.5 million, up from $10.1 million in the previous corresponding period, and well above Wall Street’s estimate of roughly $148 million, according to Fiscal.ai. Its loss of $0.10 per share was narrower than consensus estimates of a $0.14 per-share loss.

However, gross margin declined to 21.8% from 43.1% in the previous quarter, primarily due to higher acquisition-related costs and inefficiencies amid production ramp-up. Ondas expects these inefficiencies to be temporary, with elevated expenses necessary in supporting long-term growth.

Ondas’ Backlog Grows 36% Sequentially

The company raised its FY 2026 revenue outlook to at least $550 million, up from its previous range of $525 million to $550 million, and forecast Q4 revenue to exceed $250 million.

CEO Eric Brock highlighted growing customer demand and increasing production capacity as key drivers of the company’s outlook. “We expect a strong finish to 2026, with momentum accelerating in the fourth quarter as volume deliveries ramp across existing programs and we convert pipeline opportunities into customer programs.”

Ondas secured $214 million in new orders during Q3, lifting its order backlog by 36% sequentially to $835 million.

Counter-Drone Business Drives Growth

The company said growth was due to the “strong performance” across its entire portfolio, particularly its C-UAS systems, which target enemy drones or other unidentified hostile objects.

The company recently secured multimillion-dollar counter-drone contracts with government customers in Europe and Asia. In October, Ondas partnered with Palantir Technologies (PLTR) to launch Regna AI, targeting artificial intelligence applications for defense and national security customers.

ONDS shares were down about 7% at the time of writing.

Retail Turns Bullish On ONDS

Retail sentiment for ONDS on Stocktwits turned ‘bullish’ from ‘neutral’ over the past 24 hours, amid a 68% jump in message volumes. The platform’s users highlighted their concerns about the company’s margins.

ONDS shares have declined more than 44% in 2026.

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