In this video, Hidden Gems Stock Research and The Zero Hour Group break down Ondas ($ONDS) Q2 2026 earnings live, covering what may be one of the most important earnings updates in the company’s recent history.
Ondas reported Q2 revenue of approximately $83.8 million, representing more than 13x year-over-year growth, while management emphasized that the acceleration is not being driven solely by acquisitions. On a pro forma basis, the existing portfolio generated roughly 85% organic revenue growth year over year, showing substantial growth across the underlying businesses.
Management also raised its full-year 2026 revenue target to $525–$550 million and guided for $140–$155 million of Q3 revenue, setting up another major sequential acceleration in the second half of the year.
We break down some of the biggest takeaways from the call, including:
$757 million pro forma backlog, with additional orders continuing to build during Q3
A two-year strategic program pipeline exceeding $11 billion
More than $240 million of orders connected to the U.S. Army’s $982 million lethal unmanned strike IDIQ moving toward volume shipments
The expected ramp of Ultra, IonStrike, autonomous ground systems, ISR platforms and precision-strike programs
Rapid growth across counter-UAS, autonomous robotics, intelligent demining and propulsion businesses
Ondas’ expanding systems-of-systems strategy, combining sensing, cyber, electronic warfare, autonomous interception and kinetic defeat
Progress on Skyweaver, the Edge AI and command-and-control platform being developed with Palantir
Expansion across U.S. defense, allied militaries, critical infrastructure and international markets
Management’s updated timeline for profitability and operating leverage
One of the biggest developments was profitability guidance. Management now expects the Ondas Autonomous Systems and Ondas Sentinel operating platform to reach profitability in Q4 2026, while company-wide adjusted EBITDA profitability is targeted for Q4 2027. If the planned Q4 revenue ramp is achieved, management also believes Ondas could exit 2026 at approximately a $1 billion annualized revenue run rate.
The balance sheet remains another major part of the story. Ondas ended the second quarter with approximately $1.4 billion in cash, cash equivalents, restricted cash and short-term investments, giving the company significant flexibility to fund production, supply chains, acquisitions and its expanding global operating infrastructure.
We also discuss the other side of the story: elevated operating expenses, the roughly $51 million adjusted EBITDA loss during Q2, near-term gross-margin pressure, acquisition integration, supply-chain execution and the challenge of converting an enormous pipeline into contracted backlog and ultimately revenue.
Despite strong earnings and increased guidance, $ONDS initially sold off following the report. We break down why the reaction may differ from the underlying fundamental story and what investors should be watching as Ondas moves into what management expects to be a significantly larger Q3 and Q4.
Hidden Gems Stock Research focuses on emerging technology companies across drones, autonomous systems, defense technology, AI infrastructure and other high-growth markets.
This content is for educational and entertainment purposes only and should not be considered financial advice, investment advice, or a recommendation to buy or sell any security. Always conduct your own research and consider your personal financial situation and risk tolerance before making investment decisions.
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