Ondas (NASDAQ:ONDS) Releases Earnings Results, Beats Expectations By $0.03 EPS

Ondas (NASDAQ:ONDS) announced its quarterly earnings results on Thursday. The company reported ($0.10) EPS for the quarter, beating analysts’ consensus estimates of ($0.13) by $0.03, FiscalAI reports. Ondas had a net margin of 93.55% and a negative return on equity of 14.20%. The company had revenue of $167.49 million for the quarter, compared to analysts’ expectations of $148.04 million.

Here are the key takeaways from Ondas’ conference call:

• Ondas reported record Q3 revenue of $167.5 million, up more than 16 times year over year, with pro forma organic growth of 64% and backlog of about $835 million. Management targets at least $550 million in 2026 revenue and at least $1.1 billion in 2027, while expecting Q4 revenue above $250 million.
• Management highlighted ULTRA and IonStrike as potential major growth drivers, citing demand signals for ULTRA and a response to a $45 million sole-source RFP for IonStrike. These opportunities remain dependent on customer awards, deployment, and production scaling; the company’s longer-term revenue estimates are management’s projections.
• Profitability remains a near-term challenge: Q3 adjusted EBITDA loss widened to $59.7 million, and adjusted gross margin was 34.8%, pressured by lower-margin program mix and production ramp inefficiencies. Management expects mid-30% gross margins in Q4, though it anticipates improvement in 2027 and now targets company-wide adjusted EBITDA break-even in Q3 2027.
• The company ended the quarter with about $820 million in cash, cash equivalents, restricted cash, and short-term investments after deploying roughly $431 million for acquisitions. It plans further investment in inventory and production capacity, expects growth spending to moderate, and said future acquisitions will be approached more deliberately; Regna AI’s financial outlook is not included in guidance and outside funding discussions remain ongoing.

Ondas Trading Down 4.2%

Shares of NASDAQ ONDS traded down $0.23 during midday trading on Friday, hitting $5.09. 27,451,518 shares of the company’s stock were exchanged, compared to its average volume of 76,855,141. Ondas has a 12-month low of $4.38 and a 12-month high of $15.28. The company has a market cap of $2.97 billion, a price-to-earnings ratio of -72.83 and a beta of 3.10. The business’s fifty day moving average price is $6.72 and its two-hundred day moving average price is $8.75.

Insider Activity at Ondas

In related news, CFO Neil Laird sold 4,952 shares of the firm’s stock in a transaction that occurred on Thursday, September 24th. The shares were sold at an average price of $7.74, for a total value of $38,328.48. Following the sale, the chief financial officer directly owned 42,246 shares of the company’s stock, valued at $326,984.04. This trade represents a 10.49% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Richard Cohen sold 7,500 shares of Ondas stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $8.96, for a total transaction of $67,200.00. Following the sale, the director owned 261,836 shares of the company’s stock, valued at approximately $2,346,050.56. The trade was a 2.78% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.67% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

Several research firms have issued reports on ONDS. Roth Capital restated a “buy” rating on shares of Ondas in a research report on Tuesday, August 18th. Wall Street Zen cut Ondas from a “sell” rating to a “strong sell” rating in a research report on Saturday, August 15th. The Goldman Sachs Group upgraded Ondas to a “buy” rating in a research report on Monday, November 2nd. Citizens Jmp began coverage on Ondas in a report on Monday, October 5th. They set an “outperform” rating and a $14.00 price objective on the stock. Finally, Citigroup reissued a “market outperform” rating on shares of Ondas in a report on Friday. Eleven equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $16.23.

Trending Headlines about Ondas

Investors following ONDS have been watching these headlines:

• Positive Sentiment: Ondas reported record Q3 revenue of $167.5 million, up about 1,558% year over year and above the $148 million analyst estimate. The company also cited strong bookings and an $835 million backlog. Read More.
• Neutral Sentiment: Needham kept its Buy rating but cut its price target to $14 from $19. The lower target tempers the bullish signal, though it still implies substantial upside from the price cited in the report. Read More.
• Negative Sentiment: Loss-per-share reports were mixed depending on the estimate used: MarketBeat said the $0.10 loss beat its $0.13-loss consensus, while Zacks reported a $0.11 loss versus its $0.09-loss estimate. Zacks also noted the loss widened from $0.06 a year earlier; separate coverage highlighted shrinking margins. That profitability concern may weigh against the strong revenue and guidance. Read More. · Read More.

Ondas Company Profile

Ondas Holdings is a technology company that develops private wireless networks and autonomous systems for industrial, government and security applications. Its businesses include Ondas Networks and Ondas Autonomous Systems. Ondas Networks provides private broadband wireless solutions for mission-critical communications. Its FullMAX platform is designed to support applications such as rail communications and industrial data networks. Ondas Autonomous Systems develops autonomous drone and counter-drone technologies, including systems for infrastructure inspection, security and public safety.