Ondas Sees Revenue Surge Amid Defense Drone Expansion
New orders totaled $214 million as the firm expanded its counter-drone capabilities and aimed for $1.1 billion in revenue by 2027.
For the third quarter of 2026, Ondas Inc. (NASDAQ: ONDS) posted revenue of $167.5 million. This figure represents a growth rate of more than 16 times compared to the $10.1 million recorded in the same period last year. The company credited this performance to both acquisitions and rising demand within its autonomous systems, counter-drone, and defense sectors.
During its November 12 earnings release, Ondas disclosed that new orders for the quarter amounted to $214 million. The order backlog grew to $835 million, marking a 36% increase from the prior quarter.
The firm raised its full-year 2026 revenue forecast to a minimum of $550 million. Additionally, it set a 2027 target of at least $1.1 billion.
Acquisitions and Organic Growth
Acquisitions played a major role in driving the reported revenue increase. When adjusted for organic growth on a pro forma basis—assuming current businesses were owned during both comparison periods—revenue rose 64% year over year.
Ondas completed six strategic acquisitions: DZYNE Technologies, Cyberhawk, Gate/Bron, Ottopia, Insignito, and Caribou Labs. These deals broaden the company’s reach in sensing, commercial inspection, autonomous systems, counter-UAS technology, and defense drones.
The company launched Ondas Sentinel, a U.S. defense platform combining DZYNE Technologies and World View. According to the company, this new entity will facilitate the development and deployment of defense technologies.
Defense and Counter-Drone Orders Increase
Ondas Sentinel recorded $100 million in new bookings during the quarter. This total included $21.7 million in orders for IonStrike systems and $53.7 million in follow-on orders for the ULTRA platform.
Demand for the company’s counter-UAS products also expanded.
Ondas stated that its Sentrycs technology provided counter-drone protection at most stadiums during the 2026 FIFA World Cup. Furthermore, multiple NFL stadiums selected the company to provide counter-drone protection, which included controlled mitigation by authorized operators.
To support customer services, training, and counter-UAS demonstrations, Ondas opened a new office in Huntsville, Alabama. Other defense updates included an Israeli Ministry of Defense selection for a tactical attack drone program and a follow-on U.S. Army task order linked to its Lethal Unmanned Systems contract.
The company also announced the first flight of its Blitz Block 3 autonomous UAS platform.
Revenue Growth Accompanied by Higher Costs
Despite significant revenue growth, Ondas continued to report operating losses.
The third-quarter operating loss rose to $189.5 million, up from $15.5 million in the same period last year. The net loss was $64.7 million, compared to $7.5 million a year earlier. Gross margin fell to 21.8%, down from 25.8% in the third quarter of 2025. Ondas attributed this decline to production inefficiencies and acquisition-related accounting expenses as it increased deliveries under major programs.
At the end of September, the company held approximately $820 million in cash, cash equivalents, restricted cash, and short-term investments.
Outlook for 2027
Ondas anticipates fourth-quarter 2026 revenue to surpass $250 million. Its initial 2027 revenue target of at least $1.1 billion does not include additional acquisitions.
The company also advanced its target for company-wide adjusted EBITDA profitability from the fourth quarter of 2027 to the third quarter.
Ondas stated that its outlook is driven by expected growth in existing programs, higher production volumes, and sustained demand for defense and autonomous systems.
These financial results and outlook details are contained in the company’s November 12 filing with the Securities and Exchange Commission.