Ondas Inc. (ONDS), an autonomous defense technology company, reported first-quarter revenue of $50.122 million on Thursday — a tenfold jump from $4.248 million a year earlier and well above the analyst estimate of $39.358 million. Revenue also exceeded the high end of company guidance by 25%. Shares traded up 20% following the results.
Net income totaled $361.2 million, compared with a net loss of $14.1 million a year earlier, primarily driven by non-cash gains tied to warrant liability revaluation and the deconsolidation of Ondas Networks. Adjusted EBITDA loss widened to $10.9 million from $7.5 million a year earlier.
Backlog Jumps on Strong Orders
Pro forma backlog climbed to $457 million from $68.3 million at the end of 2025, supported by strong order activity and recent acquisitions. Ondas said its product companies achieved adjusted EBITDA profitability during the quarter, six months ahead of target.
CEO Eric Brock said, “We delivered record results in the first quarter of 2026, with revenue of $50.1 million representing a ten-fold increase year-over-year, as our Core + Strategic Growth Program continues to drive strong execution and accelerating momentum across the business.”
Defense and AI Expansion
The company cited growing demand for counter-UAS and defense robotics systems, including about $220 million in awards secured by 4M Defense and INDO Earth, as well as new contracts in Europe and the Middle East. Ondas also highlighted acquisitions, including Mistral, Rotron Aerospace, and World View, as part of its expansion into loitering munitions, counter-missile defense, and ISR capabilities. The company said Mistral participates in a $982 million U.S. Army IDIQ program.
Ondas expanded its partnership with Palantir Technologies Inc. (PLTR) through the jointly developed SkyWeaver platform, which aims to integrate AI-driven operational capabilities across air, ground, and stratospheric defense systems.
Margins Improve, Outlook Raised
Gross profit rose to $24.7 million from $1.5 million a year earlier, while gross margin improved to 49% from 35%, driven by higher revenue and a favorable product mix. Operating expenses increased to $67.3 million from $11.8 million due to acquisitions and expansion initiatives.
Ondas ended the quarter with $1.48 billion in cash, cash equivalents, restricted cash, and short-term investments.
The company raised its full-year 2026 revenue target to more than $390 million, above the analyst estimate of $377.693 million and representing approximately 670% year-over-year growth. Ondas said adjusted EBITDA losses are expected to peak in the second quarter before improving later in 2026, and pulled forward its expectation for OAS adjusted EBITDA profitability to the first quarter of 2027 from the third quarter of 2027.
ONDS Price Action: Ondas shares were up 20.09% at $10.64 at the time of publication on Thursday.
