Ondas (ONDS) Q1 2026 earnings summary

Executive summary

• Achieved Q1 2026 revenue of $50.1 million, a 1,065% year-over-year increase and 25% above prior targets, with global expansion to 15 offices and over 1,000 employees in 45+ countries.

• Product company EBITDA profitability reached two quarters ahead of plan, driven by strong performance in counter-drone, defense, and unmanned systems markets.

• Backlog expanded to $457 million post-acquisitions, up from $68.3 million at end of 2025, providing strong visibility into 2026 and beyond.

• Raised full-year 2026 revenue outlook to at least $390 million, reflecting robust demand, acquisitions, and a $4.3 billion pipeline.

• Focused on multi-domain ISR, unmanned systems, and AI-driven solutions, with significant program wins and strategic partnerships.

Financial highlights

• Q1 2026 revenue: $50.1 million, up from $4.2 million in Q1 2025 and 66% sequentially from Q4 2025.

• Gross profit: $24.7 million (49% margin), up from 35% prior year and 42% in Q4 2025.

• Operating expenses: $67.3 million, reflecting investments in personnel, infrastructure, and acquisitions.

• Net income: $361.2 million, driven by a $389.5 million non-cash gain from warrant revaluation and $51.5 million from deconsolidation of a subsidiary.

• Adjusted EBITDA: -$10.9 million, compared to -$7.5 million prior year.

• Cash and short-term investments: $1.48 billion at quarter end, up from $616.1 million at end of 2025.

Outlook and guidance

• 2026 revenue target raised to at least $390 million, up from $375 million, supported by a $457 million backlog.

• Product company EBITDA profitability expected to continue through 2026; company-wide profitability expected by Q1 2028.

• Strategic growth program and acquisitions expected to be additive to 2026 outlook.

• Adjusted EBITDA losses expected to peak in Q2 2026, with improvement anticipated in H2 2026.

• Continued investment in leadership, infrastructure, and integration to support scaling.