ONDS Stock Drops After Earnings – CEO Expects ‘Sustained Momentum’, Raises 2026 Revenue Outlook To $550M

• Ondas reported Q2 revenue of $83.8 million, topping the roughly $68 million analyst estimate and rising more than 13-fold from a year earlier.
• Ondas secured approximately $175 million in new orders during Q2 and another $105 million through Aug. 10.
• Despite the growth, Adjusted EBITDA loss widened to $50.6 million and gross margin declined to 43.1%.

Ondas Holdings (ONDS) dipped in pre-market trade on Thursday despite reporting record second-quarter revenue and a sharp increase in its full-year 2026 revenue outlook.

Revenue reached $83.8 million in the second quarter, up 67% from $50.1 million in the first quarter and more than 13 times the $6.3 million reported a year earlier. Revenue also topped the $68 million consensus estimate, as per Koyfin.

The autonomous systems and defense technology company reported a loss of $0.06 per share, in line with the consensus estimate.

Chairman and CEO Eric Brock said the company expects its momentum to continue into the second half of the year, driven by higher-volume deliveries across its counter-drone, intelligence, surveillance and reconnaissance, and precision-strike businesses.

“We expect to sustain this momentum and deliver another significant revenue ramp during the second half of 2026, increasing our full-year 2026 revenue target to a range of $525 million to $550 million.” 

– Eric Brock, Chairman and CEO, Ondas Holdings

ONDS stock slipped as much as 5% in pre-market trade and was among the top trending tickers on Stocktwits at the time of writing. 

Ondas Raises 2026 Revenue Guidance

Ondas raised its full-year 2026 revenue target to $525 million to $550 million, representing more than 10 times its 2025 revenue. The company also expects third-quarter revenue of $140 million to $155 million, which it said would represent roughly 76% sequential growth at the midpoint. 

Ondas also pulled forward its profitability timeline. The company now expects its operating platform, which includes Ondas Autonomous Systems and Ondas Sentinel, to reach adjusted earnings before interest, tax, depreciation and amortization (EBITDA) profitability in the fourth quarter of 2026. Company-wide Adjusted EBITDA profitability is expected in the fourth quarter of 2027.

Brock said the company expects higher revenue and gross profit to provide operating leverage as its expanded platform scales.

$175M In Orders Push Backlog Higher

Ondas secured approximately $175 million in new orders during the second quarter, helping drive reported backlog to about $613 million at June 30.

Including DZYNE Technologies and Cyberhawk, which were acquired after the quarter ended, pro forma backlog reached approximately $757 million. The figure was up from $457 million on a pro forma basis at the end of the first quarter and $68 million at the end of 2025.

The company expects the second-half revenue ramp to be supported by programs across its counter-drone, intelligence, surveillance and reconnaissance, and precision-strike businesses.

Why Is ONDS Stock Falling?

Despite the strong revenue growth and higher guidance, investors weighed Ondas’ profitability and the scale of the revenue ramp required in the second half. 

Adjusted EBITDA loss widened to $50.6 million in Q2 from $10.9 million in Q1, while operating expenses rose sharply. Gross margin also declined to 43.1% from 49.2% in the prior quarter.

The higher guidance also sets a much higher bar for the second half of 2026. With first-half revenue at roughly $134 million, Ondas would need about $391 million to $416 million in revenue during the second half to reach its new full-year target.

How Is Retail Feeling About ONDS Stock?

On Stocktwits, retail sentiment around the company remained in ‘extremely bullish’ territory over the past day, while chatter rose to ‘extremely high’ from ‘high’ levels. 

In after-hours trade, retail traders were expecting a potential short squeeze if results or guidance beat expectations, with short interest approaching 40% of the public float. Despite the pre-market dip, many investors are still expecting the stock to rally at market open.

ONDS stock has fallen around 3.6% this year but more than doubled in the last 12 months.

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