Ondas barely moved today, ending a four-day winning streak that has pushed the stock to a new high for the year. We think today was just a quiet breather for the whole market, with no new company news to extend the recent run from several large defense contract wins.
Our view
The business is finally landing the large-scale defense orders it needs to prove its technology works at scale. While the recent price run is encouraging, the stock is now trading at a level that assumes perfect execution, so we would wait for a better price before buying more.
Selected for Israel's tactical attack drone program
Ondas has been chosen for a multi-million-dollar program called Digital Bat to build next-generation tactical attack drones for Israel. The project focuses on creating low-cost, software-driven drones that can be produced at scale, a priority that mirrors recent U.S. military drone initiatives.
This selection is a clear win for the company's defense strategy. It shows that its technology is being integrated into national defense frameworks during active conflicts, which can lead to more consistent, long-term government contracts.
FilingFor the record
Aug 10
Ondas Holdings Inc. filed an important update with the SEC
SEC filing on 2026-08-10: 8-K, 8-K filing: completed an acquisition or sale of assets; other event the company deems important.
Ondas has officially closed its acquisition of Cyberhawk, a firm that specializes in using drones and AI to inspect critical infrastructure like power lines and oil rigs. This move adds visual data management and asset analytics to the Ondas portfolio.
By folding in Cyberhawk, Ondas is moving beyond just selling drone hardware and into the software and services that help industrial customers manage their assets. This shift is important for building more predictable, recurring revenue over time.
FilingPositive
Aug 7
Former Mossad Director joins the company
David Barnea, the former Director of the Mossad, has joined Ondas. Barnea recently led the Israeli intelligence agency through a period of significant technological transformation and active conflict, overseeing the development of advanced intelligence tools.
His arrival is a major development for a company focused on selling defense and security technology. His deep ties to the Israeli defense establishment and experience with high-stakes technology deployment should help Ondas win more international government contracts and integrate its various drone and wireless platforms.
The Air Force Research Laboratory awarded Ondas a contract worth more than $6 million to develop the Long-Range Grasshopper, a system designed for autonomous aerial logistics. The technology is being integrated into the Ondas Sentinel platform following the company's recent purchase of DZYNE. While the dollar amount is relatively small, this award keeps Ondas deeply embedded in the U.S. defense pipeline. It provides a funded path to refine its delivery drones, which could eventually lead to larger production orders for military logistics.
Ondas analyst price targets
Analysts have consistently maintained a bullish outlook on the stock following a string of major military contract wins and a recent company acquisition. All 7 analysts rate it a buy, and the average target price suggests 90% upside.
Average target$18.60+90%vs $9.77 today
TodayAvg price
Low $17High $22
Strong Buy7 analysts
0Bearish
0Neutral
7Bullish
FirmRatingPrice TargetDate
Needham
Buy
$23→$19
7/7/2026
Northland Securities
Outperform
$16→$18
3/26/2026
Maxim Group
Buy
$16→$22
3/26/2026
GLJ Research
—
$17
3/10/2026
H.C. Wainwright
—
$17
3/10/2026
Stifel Nicolaus
Buy
$17→$18
1/21/2026
Northland Securities
Outperform
$10→$16
1/20/2026
Lake Street
Buy
$10→$19
1/20/2026
Oppenheimer
Outperform
$12→$16
1/20/2026
H.C. Wainwright
—
$12→$25
1/20/2026
Stifel Nicolaus
Buy
$13→$17
1/12/2026
Stifel Nicolaus
Buy
$13
12/15/2025
Ondas earnings
The company has a history of reporting losses, but it recently posted a massive profit that far exceeded what analysts expected. This suggests the business may be reaching a turning point as its revenue begins to scale rapidly.
Earnings history
EstimateBeatMiss
Ondas past earnings results
Expected
Actual
Surprise
EPS
$-0.05
$0.81
+1597.7%
Revenue
$39M
$50M
+27.3%
Key highlights
Revenue outlook raised: Management raised its full year 2026 revenue target to at least $390 million, a massive jump from the $50.6 million reported for all of 2025. This 670% expected increase is fueled by a mix of new drone defense contracts and several recent acquisitions.
Backlog surge from acquisitions: The company's pro forma backlog, which is the total value of signed orders waiting to be filled, hit $457 million at the end of the quarter. This is up 570% from $68.3 million just three months ago, largely due to buying businesses like Mistral and World View that brought their own existing contracts.
Operating loss widening: The company reported an operating loss, which is the money lost from running its core business, of $42.7 million compared to $10.3 million a year ago. These losses grew because the company is hiring more people and spending more on legal fees to manage its rapid expansion through acquisitions.
Profitability timeline pulled forward: Ondas now expects its drone division to reach adjusted EBITDA profitability, meaning profit before interest and taxes, by the first quarter of 2027. This is two quarters earlier than the previous target because the division's products were already making money on their own this quarter.
Cash reserves significantly higher: The company ended the quarter with $1.48 billion in cash and short term investments, up from $616 million at the end of last year. This increase came primarily from a $1 billion stock offering in January that gives the company enough money to keep buying other businesses.
Defense contract wins: The company secured approximately $220 million in new awards for its ground defense and demining businesses to start 2026. These wins show that the company is successfully moving beyond just drones into broader military hardware and infrastructure protection.
Our take: A very strong quarter that shows the business is scaling much faster than expected. The massive jump in backlog and the raised revenue target of $390 million suggest the company's shift toward defense and counter-drone systems is finding real global demand, which strengthens the case for its long term growth strategy.
Ondas’s next earnings date
Q2 2026
AUG
13
Expectation
EPS
$-0.09
Revenue
$68M
Metrics we are tracking
Metric
Expectations
Status
Drone Purchase Orders
Securing more than $50 million in new orders annually
$457M pro forma as of Q1 2026
Rail Radio Deployment
FullMAX units installed across at least three Class I railroads
Active deployments in progress with major railroads in Q1 2026
FCF Burn Rate
Quarterly cash burn improving by at least 15% sequentially
$36.9M cash operating expense in Q1 2026
Recurring Revenue Mix
Service and data revenue reaching 30% of total sales
