Ondas (NASDAQ: ONDS) Posts Record $83.8M Q2 Revenue, Raises 2026 Target to $550M

Ondas Holdings (NASDAQ: ONDS) reported record Q2 2026 revenue of $83.8 million, a 1,230.2% year-over-year increase from $6.3 million in Q2 2025, while GAAP EPS of -$0.03 beat the -$0.09 consensus estimate by 66.1%. Despite the top-line result, a $199.1 million operating expense load drove a GAAP operating loss of -$162.9 million for the quarter. Shares fell -8.80% on Thursday, August 13, while the S&P 500 gained 0.70%.

Q2 2026 Results

• Revenue: $83.8 million, up 1,230.2% year-over-year from $6.3 million in Q2 2025 and up 67% sequentially from $50.1 million in Q1 2026
• Gross profit: $36.1 million, with a Q2 gross margin of 43.1%, compared to 53.1% in Q2 2025; adjusted gross margin was 50.4%
• GAAP operating loss: -$162.9 million, versus -$9.3 million in Q2 2025
• GAAP net loss: -$89.7 million, compared to -$10.8 million in Q2 2025; included $29 million of interest and investment income
• GAAP EPS: -$0.03, beating the -$0.09 consensus estimate; adjusted EBITDA loss was -$50.6 million versus -$5.8 million in Q2 2025

What Drove the Results

Revenue grew 13-fold year-over-year to $83.8 million, but the GAAP operating loss widened to -$162.9 million from -$9.3 million in Q2 2025. The primary driver was total operating expenses reaching $199.1 million, up from $12.6 million a year ago, a 1,481% year-over-year increase. Of that, $67.6 million was stock-based compensation related to vesting of equity awards for key executives, $19.2 million reflected a change in fair value of contingent consideration from acquisition activity, $14.0 million was amortization of intangible assets, and $4.4 million was transaction-related expense.

Adjusted Cash Operating Expense, which strips out those non-cash charges, reached $93.3 million versus $9.4 million in Q2 2025, reflecting the inclusion of newly acquired businesses and accelerated platform investment. The company noted $26.2 million in spending on its WarpSpeed and SkyWeaver initiatives and market development activities with Palantir during the quarter. The GAAP net loss of -$89.7 million was partially offset by $29 million of interest and investment income plus non-cash gains on warrants issued in prior equity raises, which can create significant period-to-period volatility unrelated to core operations.

Backlog reached $613 million as of June 30, 2026, up from $68 million at year-end 2025. On a pro forma basis, including the DZYNE Technologies and Cyberhawk acquisitions that closed in Q3 2026, backlog stood at approximately $757 million. The company also disclosed that $105 million in additional orders were captured during Q3 2026 through August 10, 2026.

Why It Matters

Ondas raised its full-year 2026 revenue target to $525 million to $550 million and pulled forward its adjusted EBITDA profitability timeline. The company secured $175 million in new orders during Q2 2026, with order capture spanning counter-drone systems, precision strike, ISR, and unmanned ground systems across North America, Europe, the Middle East, Asia-Pacific, and Latin America. The company noted a $52.9 million order for its Lethal Unmanned Strike program in July, bringing aggregate orders under that $982 million U.S. Army contract to over $240 million.

Ondas ended the quarter with $1.4 billion in cash, cash equivalents, restricted cash, and short-term investments, a balance the company cited as supporting both strategic acquisitions and customer confidence. Five acquisitions have been completed since March 31, 2026, including World View, Mistral, Omnisys, DZYNE Technologies, and Cyberhawk, expanding Ondas into stratospheric ISR, AI-powered mission software, counter-drone systems, and industrial inspection.

Wall Street View

Analyst consensus as of August 1, 2026 stands at 5 Strong Buy and 8 Buy ratings, with 1 Hold and no Sell recommendations, according to available data. Specific price target changes in response to today's results were not available in the source data.

Investor Takeaway

The top-line beat and raised guidance affirm that Ondas' acquisition-led growth program is translating into measurable revenue scale. The more critical forward question is whether the rapid non-cash expense load, particularly the $67.6 million in stock-based compensation and $14.0 million in amortization from five acquisitions in a single quarter, can moderate as the integration phase matures and the company progresses toward its pulled-forward adjusted EBITDA profitability target. The $757 million pro forma backlog and $105 million in Q3 orders captured to date provide concrete demand visibility entering the second half of 2026.