Ondas (ONDS) investor relations material

Executive summary

• Q3 revenue was $167.489M, up more than 16x YoY and 100% sequentially; pro forma organic growth was 64%.

• Q3 bookings were $214M and backlog reached $835M, up 36% sequentially; nine-month orders totaled $507M.

• Acquisitions expanded defense, security, infrastructure and autonomy capabilities; priorities include integration, scaling delivery capacity and converting backlog into revenue.

Financial highlights

• Q3 gross profit was $36.5M; GAAP gross margin was 21.8% and adjusted gross margin was 34.8%, pressured by program mix and production ramp inefficiencies.

• Q3 operating expenses were $226.0M and operating loss was $189.5M; adjusted cash operating expenses were $118.7M.

• Adjusted EBITDA loss was $59.7M, versus $46.2M in Q2 and $8.1M in Q3 2025.

• Q3 net loss was $64.7M; nine-month net income of $206.9M was substantially affected by non-cash warrant gains and a deconsolidation gain.

• Q3 R&D expense was $61.6M, up $30M sequentially; expenses reflected acquired operations, stock compensation, software and deal-related costs.

Outlook and guidance

• FY 2026 revenue target rose to at least $550M, with Q4 revenue above $250M and Q4 pro forma organic growth of at least 75% YoY.

• 2027 revenue target is at least $1.1B, excluding additional acquisitions, with organic growth above 40%.

• Adjusted EBITDA profitability is expected for the operating platform in Q4 2026 and across operations in Q3 2027, one quarter earlier than prior timing.

• Q4 adjusted gross margin is expected in the mid-30% range; management expects improvement through 2027 and a 45%–50% range over 12–24 months.

• Backlog is expected to grow sequentially in Q4; priorities include converting orders and scaling ULTRA, IonStrike and other program deliveries.