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Key Takeaways ONDS shares fell 18.2% in a month even as second-quarter revenue surged more than 13-fold year over year.ONDS lifted 2026 revenue guidance to $525-$550 million, with Q3 revenue seen at $140-$155 million.ONDS faces widening losses, heavy cash use and added integration risk from multiple acquisitions. Ondas Inc.'s (ONDS - Free Report) shares have fallen 18.2% in the past month even as its autonomous-systems business scales rapidly. The drop raises a straightforward question: Has the market created a better entry point, or is it discounting risks that still matter?

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Revenue growth, backlog and order activity remain powerful supports. Yet losses, heavy cash use and the challenge of integrating several acquisitions keep the risk-reward picture unsettled.

ONDS Growth Still Points Sharply HigherSecond-quarter 2026 revenues reached $83.8 million, up 67% sequentially and more than 13-fold year over year. Management raised its full-year 2026 revenue target to $525-$550 million from at least $525 million.

For the third quarter, revenues are projected at $140-$155 million. The midpoint implies roughly 76% sequential growth.

Ondas Backlog and Orders Support the Growth CasePro forma backlog stood at roughly $757 million as of June 30, including DZYNE and Cyberhawk. On the last earnings call, management noted that Ondas captured $175 million of new orders in the second quarter and another $105 million through the quarter-to-date period.

Its two-year strategic program pipeline exceeded $11 billion across aerial security, intelligence, surveillance and reconnaissance, precision strike and autonomous ground systems. That pipeline is not the same as contracted backlog, but it shows the scale of programs Ondas is pursuing.

ONDS Losses and Cash Burn Keep Pressure ElevatedThe growth has come with a much larger cost base. Second-quarter operating expenses climbed to $199.1 million from $67.3 million in the first quarter, while adjusted EBITDA loss widened to $50.6 million from $10.9 million.

Net cash used in operating activities reached $137.4 million in the first half of 2026 versus $15.1 million a year earlier. Management expects adjusted EBITDA losses to improve sequentially in the third quarter, but consolidated profitability remains a future milestone.

Ondas M&A Raises Both Scale and Execution RiskOndas is integrating World View, Mistral, Omnisys, DZYNE and Cyberhawk while continuing work on earlier acquisitions. That broader platform adds capabilities across precision strike, counter-unmanned aircraft systems, intelligence and critical-infrastructure applications, but it also raises integration and delivery complexity.

AeroVironment, Inc. (AVAV - Free Report) is a relevant comparison point because it also operates across autonomous systems, counter-unmanned aircraft technology, intelligence, surveillance and reconnaissance and precision-strike missions. Red Cat Holdings, Inc. (RCAT - Free Report) likewise targets defense and security customers with small unmanned aircraft focused on intelligence, surveillance and reconnaissance and precision effects, underscoring the competitive intensity around military autonomy.

ONDS Signals Still Favor Caution After the PullbackThe pullback has not clearly turned ONDS into a bargain. The stock trades at 4.9X forward 12-month sales, only slightly below its five-year median of 5.1X and above the S&P 500's 4.8X multiple, while substantial operating losses and cash burn still need to improve.

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ONDS currently carries a Zacks Rank #4 (Sell). It also has a VGM Score of F, Value Score of F, Growth Score of F and Momentum Score of C. The Zacks Consensus Estimate for current fiscal-year EPS has deteriorated over the past four weeks.

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The Zacks Rank is designed around short-term earnings-estimate revisions, while the Style Scores are complementary indicators of value, growth and momentum characteristics. With a #4 rank and weak Style Scores, the current setup still favors caution rather than treating the decline alone as evidence of value.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 

Ondas Inc. (NASDAQ:ONDS) stock moved lower on Monday due to sector-wide profit-taking across drone stocks and ongoing digestion of its second-quarter financial results.

The Nasdaq is down 0.22% while the S&P 500 has shed 0.46% and Ondas is lagging even as the Technology sector is up 0.09%.

• Ondas stock is under selling pressure. Why are ONDS shares declining?

On August 13, Ondas reported second quarter revenue of $83.77 million, topping the $67.97 million estimate. However, GAAP losses per share hit 19 cents, wider than the expected five-cent loss.

Stock Resale RegistrationOn Friday, Ondas filed a Form 8-K covering the resale of 99,105 common stock shares issued for its acquisition of World View Enterprises Inc.

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CEO Eric Brock said during the earnings call that demand for counter-drone systems remains strong for the “foreseeable future.” Ondas raised its full-year 2026 revenue guidance to $525 million to $550 million.

Technical AnalysisOndas is still up 42.03% over the past 12 months, but the current chart is in a repair phase: the stock is trading 11.9% below its 20-day SMA, 4.3% below its 50-day SMA, and more than 15% below both the 100-day and 200-day SMAs. That mix often signals that longer-term trend resistance is overhead, even if the stock can bounce in the short term.

Trending

The moving-average structure is mixed, with the 20-day SMA still above the 50-day SMA (a near-term bullish tilt), but the 50-day SMA remains below the 200-day SMA after the Death Cross in July, keeping the bigger-picture trend biased lower. Recent turning points matter here too: the stock put in a swing low in July and a swing high in August, so traders are watching whether price can build higher lows without getting rejected at overhead averages.

Key Resistance: $8.50 — Nearby round-number area that also lines up closely with the 50-day EMA ($8.55), where rebounds can stall. Key Support: $7 — Nearby round-number level that sits below current price and can act as the next "line in the sand" if selling accelerates ONDS Stock Price Activity: Ondas shares were down 2.76% at $7.68 at the time of publication on Monday, according to Benzinga Pro data.

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Key Takeaways Ondas plans to acquire Aran Defense for about $33M, with the deal expected to close in Q3 2026.Aran Defense could give Ondas more control over production, quality, costs and supply-chain availability.Aran Defense expects $26M in 2026 revenue, making the purchase price about 1.3 times expected sales. Ondas Inc. (ONDS - Free Report) has made another strategic move to strengthen its position in autonomous defense. It has proposed to acquire Aran Defense Ltd., the defense-focused division of Israeli engineering and manufacturing company Aran Ltd, for approximately $33 million in cash or Ondas common stock. The transaction is expected to close in the third quarter of 2026, subject to customary conditions.

Aran Defense operates approximately 4,400 square meters of engineering and manufacturing facilities in Israel. Its capabilities include CNC machining, electromechanical assembly, integration, cabling, classified production, quality control, procurement, warehousing, tactical textiles, prototype manufacturing, 3D printing and new-product introduction. By bringing these capabilities inside the Ondas organization, the company can potentially reduce its reliance on external manufacturing partners while gaining greater control over production schedules, quality, costs and supply-chain availability.

The acquisition also fits directly into Ondas’ strategy of building a stronger sovereign defense footprint in Israel. Recently, it secured a multi-million-dollar tender from the Israeli Ministry of Defense to develop and produce next-generation tactical attack drones, further driving its expansion into advanced autonomous defense systems. Ondas expects Aran Defense to strengthen in-house engineering, prototyping and scalable production, helping convert rising demand into repeatable output with better control over quality, costs, supply and delivery. Aran’s local defense relationships should also open new programs, while Ondas’ global network can support Aran’s expansion into allied markets.

The acquisition also appears relatively modest compared with Aran Defense's expected revenue. Aran Defense generated about $12 million in revenue in 2024 and $17 million in 2025. It expects nearly $26 million of revenue in 2026, along with positive adjusted EBITDA. At roughly $33 million, the purchase price represents about 1.3 times expected 2026 revenue. If Aran Defense achieves its expected 2026 revenue and remains profitable, the acquisition could provide Ondas with an immediately operating industrial platform.

Are ONDS’ Competitors Also Expanding Through M&A?Draganfly (DPRO - Free Report) completed the acquisition of Skip Dynamix last month, strengthening its defense drone portfolio and expanding its presence in the low-cost autonomous aerial systems market. The deal adds fixed-wing drone technology and enhances Draganfly’s AI, autonomy and military systems capabilities, while improving its positioning in U.S., NATO and Indo-Pacific defense programs. The acquisition adds the Orca fixed-wing drone to Draganfly’s portfolio, expanding its capabilities in long-range autonomous systems. It also broadens the company’s reach across defense and government markets, creates revenue growth opportunities and retains key fixed-wing drone expertise through the continued involvement of Skip Dynamix’s founders.

In May, Unusual Machines (UMAC - Free Report) agreed to acquire Upgrade Energy for approximately $52 million, adding battery and power system expertise to its drone components business. The deal expands the company’s product portfolio, strengthens domestic manufacturing capabilities and supports future production growth through additional U.S. facilities. In 2025, UMAC bought Rotor Lab, adding high-performance drone motor and propulsion technologies to its portfolio. The deal strengthens its commercial and defense offerings, supports U.S. manufacturing expansion and enhances motor design and engineering capabilities. It also agreed to acquire Aloft Technologies for $14.5 million, adding leading drone fleet and airspace management capabilities to its portfolio.

ONDS’ Price Performance, Valuation and EstimatesShares of ONDS have jumped 134.2% in the past year compared with the Zacks Wireless-National industry’s rise of 80%

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In terms of the forward 12-month Price/Sales ratio, ONDS is trading at 5.85, lower than the industry’s multiple of 8.04.

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For ONDS, earnings estimates for the current year have been revised significantly downward in the past 60 days.

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ONDS currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Red Cat (NASDAQ:RCAT) shares are down 4% to $10.65 Monday afternoon, slipping despite a fresh maritime autonomy partnership announcement from the company’s Blue Ops division. The pullback follows a scorching run that lifted Red Cat stock 21% for the week through Friday and 40% over the past month.

The move looks like consolidation. Red Cat stock is still up 35% year to date (YTD) and 30% over the past year, and the names that ran hardest on Friday’s drone tariff rally are giving back the most today.

Blue Ops and Havoc Sign an Integration Deal Red Cat’s Blue Ops maritime unit announced a partnership with Havoc, a private developer of all-domain collaborative autonomy. The companies plan to integrate Havoc’s collaborative autonomy software and command-and-control capabilities across multiple Blue Ops uncrewed surface vessels, including the Variant 7 and additional platforms as they are introduced, enabling coordinated multi-vessel operations for U.S. and allied defense customers.

The partnership builds on Blue Ops’ Modular Open Systems Architecture approach and includes plans to establish operational fleets at Havoc’s Rhode Island headquarters and Blue Ops’ Florida headquarters for live demonstrations, testing, training and operational evaluation, along with cross-marketing to each company’s customer base.

Here’s the key qualifier. No financial terms, contract value, or revenue contribution were disclosed. The release describes a framework for technical integration, demonstrations, and joint customer engagement rather than a purchase order. Blue Ops President Barry Hinckley stated the goal is “to build the best small USVs in the world while making it easy to integrate leading technologies from across the U.S. and our allies.”

Friday’s Tariff Rally Is Giving Back The broader catalyst behind today’s selling traces to Friday, when President Trump signed a proclamation imposing tariffs of up to 100% on imported drones and unmanned aircraft parts, sending domestic drone names sharply higher. Most of those tariffs take effect 21 days after the proclamation, with a 180-day delay on less-sensitive components, so nothing has hit revenue yet.

Red Cat’s fundamentals also complicate the narrative. The company’s fiscal second-quarter report on August 6 showed revenue of $20.19 million, missing the $22.58 million consensus, with a GAAP loss of $0.26 per share against a $0.17 estimate. Revenue rose 527% year over year (YoY), cash stood at $325.55 million, and the company reaffirmed its full-year target of $150 million to $180 million.

Peers Give Back Friday’s Gains Unusual Machines (NYSE:UMAC) stock is down 7% to $31.78 after leading Friday’s rally on its status as a domestic maker of NDAA-compliant drone components. The stock is still up 30% for the week through Friday and 167% YTD.

Ondas Holdings (NASDAQ:ONDS) shares are down 3% to $9. The Nantucket-based autonomous systems platform spans drones, counter-UAS, and secure communications. Ondas Holdings stock is up 31% for the month yet down 5% YTD.

Kratos Defense & Security Solutions (NASDAQ:KTOS) stock is down just 1% to $63.9, showing the relative resilience of an established Pentagon supplier versus the smaller drone names. Kratos Defense stock is up 30% for the month and down 15% YTD.

The ETF Absorbs the Volatility REX Drone ETF (NASDAQ:DRNZ) shares are unchanged at $24.01 Monday, up 14% for the month and 11% YTD. The flat print against the individual declines shows how a diversified drone basket can absorb single-name volatility in both directions.

The fund is a narrow thematic product with meaningful concentration risk, is not leveraged, and has a short trading history. Investors sizing exposure to the drone theme may want to weigh their allocation against those constraints.

What to Watch Investors can watch for whether the Blue Ops and Havoc integration produces an actual defense order, whether the Rhode Island and Florida operational fleets open on schedule, whether the drone tariffs take effect as written on the 21-day and 180-day timelines, and whether Red Cat’s revenue trajectory supports the $150 million to $180 million full-year target after the Q2 FY2026 miss.

Contact [email protected] for any questions or corrections.

Thursday, 13 August 2026 08:00 AM

Topic: 

Earnings Core + Strategic growth program expands Ondas' technology and customer-solutions portfolio, broadens its customer base, and accelerates the maturation and scale of its operating platform

Record Q2 2026 revenue of $83.8 million marks 67% QoQ increase and 13-fold YoY revenue growth; On a pro forma, same-portfolio basis, Q2 2026 YoY revenue increased 85%

$175 million in new orders were captured during Q2 2026, demonstrating the strength and momentum of the core platform; $105 million in additional orders have been captured to date during Q3 2026

Reported backlog of approximately $613 million as of June 30, 2026; Pro forma backlog of $757 million as of June 30, 2026, including the DZYNE and Cyberhawk acquisitions, both of which closed in Q3 2026

Increased full-year 2026 revenue target to $525 - $550 million; Pulls forward Adjusted EBITDA profitability timelines

$1.4 billion in cash, cash equivalents, restricted cash and short-term investments as of June 30, 2026

Conference call scheduled for today, August 13th at 8:30 a.m. ET

WEST PALM BEACH, FL / ACCESS Newswire / August 13, 2026 / (NASDAQ:ONDS) ("Ondas" or the "Company"), a leading provider of advanced autonomous systems and next-generation defense and security technologies and services, reported record financial and operating results for the second quarter of 2026. Ondas generated revenue of $83.8 million in the second quarter of 2026, compared with $50.1 million in the first quarter of 2026 and $6.3 million in the second quarter of 2025. The results represent approximately 67% sequential revenue growth and more than a thirteen-fold year-over-year increase.

The second-quarter performance reflects strong organic execution across Ondas' core business under the Core + Strategic growth program launched over the past 12 months. The Company secured approximately $175 million in new orders during the second quarter. Strong order capture increased Ondas' backlog to approximately $613 million as of June 30, 2026, up from $457 million pro-forma at the end of the first quarter and $68 million at year-end 2025. Including DZYNE Technologies and Cyberhawk, which closed in the third quarter of 2026, pro forma backlog was approximately $757 million. The acquired businesses expand Ondas' technology and customer-solutions portfolio, customer base and operating platform, and begin contributing to growth and operating leverage in the second half of 2026.

"Our team at Ondas is performing at a high level, as evidenced by our record second-quarter results, headlined by strong revenue growth and continued bookings momentum across our business," said Eric Brock, Chairman and CEO of Ondas. "We expect to sustain this momentum and deliver another significant revenue ramp during the second half of 2026, increasing our full-year 2026 revenue target to a range of $525 million to $550 million."

"The strength of our Core + Strategic Growth plan is increasingly becoming evident, and I am particularly pleased with the recent addition of new businesses, headlined by DZYNE Technologies and Cyberhawk, which have closed during Q3. DZYNE meaningfully broadens our solutions portfolio globally, highlighted by the ULTRA and IonStrike platforms, while also accelerating the maturation of our U.S. operating platform and deepening our relevance with the U.S. Department of War. Meanwhile, Cyberhawk's excellence in delivering aerial solutions supporting critical-infrastructure inspection and intelligence further advances our dual-use technology, services and AI capabilities. Collectively, these two new companies bring Ondas exceptional relationships with important customers such as the U.S. Air Force, U.S. Army, PG&E and Shell, among many others, while expanding our operating footprint, increasing our addressable market and offering significant operating leverage across both revenue growth and operating expenses."

"Our balance sheet and capital position remain strong and continue to provide significant competitive advantages. This strength supports faster and larger commercial success by allowing for continued investments in our global operating platforms while reinforcing customer confidence. The balance sheet strength is also translating into more attractive strategic acquisition opportunities. We will continue to leverage the growing strength of our operating and financial platforms to deliver on our commitments to investors."

"We expect our momentum to continue to accelerate in the second half of 2026 as volume deliveries ramp on key programs, particularly across our counter-drone, multi-domain ISR and precision strike verticals. Indeed, the order book remains strong, and our pipeline continues to expand. We have a great deal of work ahead, but I remain optimistic that Ondas is on the right path to deliver for our customers, partners, employees and, of course, our investors," Brock concluded.

Second Quarter 2026 and Recent Financial, Corporate, and Business Development Highlights

Financial

Delivered record financial performance, generating $83.8 million in revenue compared to $6.3 million in Q2 2025, representing a greater than 13-fold increase year-over-year.

On a pro forma organic basis, assuming the current portfolio of businesses was owned throughout both periods, Q2 2026 revenue increased 85% year over year.

Ondas announced $175 million in new orders demonstrating strong organic growth for the Company's diverse systems of systems platforms.

Ended Q2 with $757 million in pro forma backlog adjusted for the additions of DZYNE and Cyberhawk acquisitions which closed on July 2, 2026 and August 10, 2026, respectively, a 65% increase from the $457 million in pro forma backlog at the end of Q1 2026 and an 11-fold increase from the $68 million reported backlog as of Q4 2025. The backlog increase reflects the addition of newly acquired businesses, along with strong order capture and pipeline conversion at Ondas supported by accelerating global demand for OAS autonomous drone, counter-UAS and robotics solutions.

As of August 10th, Ondas has captured an additional $105 million in new orders during the third quarter demonstrating continued commercial momentum while continuing to expand backlog.

The Company ended the second quarter with $1.4 billion in cash, cash equivalents, restricted cash and short-term investments.

Corporate Activities

Executed on Ondas' strategic growth plan through a series of accretive acquisitions, significantly expanding its technology and operational platform into new high-growth dual-purpose categories: advanced ISR capabilities, battle resource optimization software, advanced CUAS technologies and industrial inspection applications. The acquisitions completed since March 31, 2026, are as follows:

World View - a stratospheric balloon platform that delivers persistent, low-cost ISR and communications without satellites or aircraft.

Mistral - an experienced prime contractor and systems integrator delivering advanced systems to the U.S. Department of War (DoW).

Omnisys - An AI-powered mission and battlefield management & optimization software platform for mission planning and real-time operational decision making.

DZYNE - A U.S.-focused diversified defense technology company and recognized leader in long-range ISR, CUAS and precision strike systems.

Cyberhawk - an industry leading autonomous industrial asset inspection company.

Announced in August that David Barnea has joined Ondas Defense Ltd. as President and Chairman to help lead Ondas' global expansion.

Established Ondas Sentinel, led by World View CEO Ryan Hartman as CEO and DZYNE Founder and CEO Matt McCue as Chief Technology Officer (CTO) creating a scaled, U.S.-focused defense and security platform, bringing together the Company's autonomous systems, counter-UAS, ISR, and defense technologies into a unified organization focused on U.S. and allied defense customers.

Expanded U.S. manufacturing footprint with 6 major facilities totaling 230,000 square feet of underutilized capacity to support anticipated revenue growth.

Added 560 U.S. employees, including 155 engineers, significantly strengthening engineering, manufacturing, and operational capabilities.

Planning facility upgrades that will expand production capacity and add approximately 50,000 square feet of additional manufacturing space.

Scaled Palantir Foundry deployment across the enterprise, now operating at 4 of 5 U.S. business sites and throughout our global operations.

Expanded Foundry implementation to 8 enterprise workstreams supporting 24 active operational use cases. Driving operational efficiency with an expected 20% improvement in G&A productivity, while delivering additional gains across supply chain, manufacturing, and flight operations.

Launched ONBERG Autonomous Systems with Heidelberg in Germany, establishing a European hub for the development, integration, industrial-scale manufacturing and deployment of autonomous air defense systems. The joint venture combines Ondas' proven technologies with German engineering and production capabilities, initially targeting Germany and Ukraine before expanding across Europe.

Business Development

Secured new and follow-on orders for integrated, layered air defense solutions, from defense ministries, national police organizations, law-enforcement agencies, defense contractors and distribution partners across North America, Europe, the Middle East, Asia-Pacific, Africa and Latin America.

Supported counter-UAS protection at a majority of the stadiums hosting the 2026 FIFA World Cup in North America, demonstrating the scalability and maturity of Ondas' air defense technologies in complex civilian environments.

In August, Sentrycs was selected to provide a counter-drone protection system for Jacksonville Jaguars games at EverBank Stadium during the upcoming NFL season, making the Jaguars the first NFL franchise to move beyond detection to controlled mitigation of unauthorized drones by authorized operators, extending Sentrycs' CoRF deployment from the FIFA World Cup into professional sports venues.

Advanced a strategic collaboration with Lockheed Martin to integrate Ondas' CUAS Cyber-over-RF capabilities into the Sanctum™ counter-UAS platform, adding precise drone detection, identification, tracking and mitigation capabilities and creating a pathway to larger U.S. and allied defense programs.

In Q2 2026, Ondas received follow-on orders supporting existing ISR and emergency-response deployments, demonstrating continued customer adoption and expansion of operational programs.

Ondas selected as Stratospheric High-Altitude Balloon Provider for U.S. Navy SOUTHCOM with $4.8 million contract award supporting operational counter-narcotics and illegal, unreported and unregulated fishing missions across the Eastern Pacific and Caribbean. Successfully launched HAPS balloon in late July in support of this mission.

Onboarded with new prime partner Huntington Ingalls Industries, Inc. (HII) for follow-on orders in support of SOUTHCOM under the recently awarded STRINGRAI program for recurring ISR HAPS solutions.

Announced that NASA increased the ceiling on its existing IDIQ for Stratollite-based ISR solutions from $45 million to $395 million in anticipation of expanding demand, including from the DoW.

Captured a $18.8 million ULTRA order in July in support of an unnamed customer for a current operational need.

In July submitted over $90 million in proposals to U.S. defense customers for long-endurance ISR-T.

During a DoW-sponsored JREX 26.1 event in July, Ondas Sentinel demonstrated an industry-first counter-UAS engagement using its RF-passive LOCATE LiDAR sensor, interfaced with FAAD-C2, to cue third-party laser weapons to repeated hard-kill engagements against Group 1-3 UAS, delivering 20x greater cueing accuracy than radar with no RF emissions.

Captured multiple Dronebuster awards third quarter-to-date across U.S., Australia and New Zealand markets.

Advanced customer activities for the Sawtooth platform targeting a mid-sized award from a military customer in Asia.

In July received $9 million order to integrate Ionstrike with a Fire Control System.

Successfully tested IonStrike in a GNSS-denied environment.

Successful U.S. government demonstration of Blitz with a new EW payload and visual-based navigation capability.

Advanced commercial activity within the precision strike domain through supporting strategic defense programs in the U.K. along with other programs that together generated over $34 million in new orders in Q2 2026.

Further within precision strike, Ondas captured a new order worth $52.9 million for the Lethal Unmanned Strike (LUS) in July while beginning to ramp production for the LUS program in the third quarter of 2026. The LUS program is a $982 million IDIQ award with the U.S. Army for loitering munitions. Ondas has now captured over $240 million of aggregate orders related to this IDIQ award.

Unmanned Ground Systems (UGV) domain delivered strong order activity in Q2 2026, reflecting growing demand for tactical robotics, resilient unmanned-system technologies, demining, border infrastructure, terrain preparation and unmanned heavy engineering equipment and military tracked vehicles.

Furthered integration of AI Software layer into suite of solutions through the launch of LADOS, the continued development of SkyWeaver with Palantir, and the addition of combat-proven Battle Resource Optimization software, supporting Ondas' transition into a software-defined systems-of-systems company.

Showcased Ondas' expanded autonomous defense platform at Eurosatory 2026 under its "Autonomy at First Contact" vision, launching Iron Wave, Dual Shield, MODUS, Scout Cyber-over-RF, Iron Arrow and LADOS across air defense, aerial intelligence, precision strike and Ground Robotics, while presenting a unified systems-of-systems architecture designed to connect sensing, decision-making, autonomous operations and coordinated mission execution across multiple domains.

Second Quarter 2026 Financial Results

Revenues increased 67% sequentially to $83.8 million for the three months ended June 30, 2026, compared to $50.1 million for the three months ended March 31, 2026, and a more than 13-fold increase from $6.3 million for the three months ended June 30, 2025. On a pro forma organic basis, revenue increased 85% year over year, assuming the businesses owned and operated during Q2 2026 were also owned and operated in Q2 2025. Growth at this rate reflects the benefits of platform scale, shared technology, expanded customer access, and operating leverage. The increase reflects strong performance across the Company's portfolio, particularly C-UAS systems, where demand remains strong given the long-term need to protect the lower skies across civilian and military airspace.

Gross profit was $36.1 million for the three months ended June 30, 2026, as compared to $24.7 million for the three months ended March 31, 2026 and $3.3 million for the three months ended June 30, 2025. Gross margin was 43.1% for the three months ended June 30, 2026, as compared to 49.2% for the three months ended March 31, 2026 and 53.1% for the three months ended June 30, 2025. Gross profit was reduced during the quarter by the amortization of capitalized intellectual property. Adjusted Gross Profit and Adjusted Gross Margin was $42.3 million and 50.4%, respectively, for the three months ended June 30, 2026, as compared to Adjusted Gross Profit and Adjusted Gross Margin of $25.8 million and 51.5%, respectively, for the three months ended March 31, 2026. The increase in Adjusted Gross Profit reflects higher revenue, favorable product mix, greater absorption of fixed manufacturing costs, and the contribution of businesses acquired during the period. The Company expects gross margin to vary from quarter to quarter as system sales mix shifts, order timing remains uneven at this early stage of adoption, and the Company scales market penetration.

Operating expenses increased to $199.1 million for the three months ended June 30, 2026, compared with $67.3 million for the three months ended March 31, 2026 and $12.6 million for the three months ended June 30, 2025. The increase was primarily driven by $105.8 million of non-cash expenses during the quarter, mainly comprising $67.6 million of stock-based compensation, $19.2 million from the change in fair value of contingent consideration, and $14.0 million of amortization expense, together with $4.4 million of transaction-related expense. The stock-based compensation expense was particularly elevated due to the vesting of equity awards provided to key executives.

Adjusted Cash Operating Expense was $93.3 million compared to $36.9 million for the three months ended March 31, 2026 and $9.4 million for the three months ended June 30, 2025. The growth in cash operating expenses reflected the inclusion of newly acquired businesses along with continued investment in Ondas' operating platform and infrastructure in support of our expected significant revenue acceleration in the second half of 2026. In particular, the Company saw growth in spending related to the WarpSpeed and Skyweaver initiatives and market development activities with Palantir, totaling $26.2 million. Continued investment in the Ondas operating platform, along with corporate development activities, also contributed to the growth in cash operating expenses.

Operating loss increased to $162.9 million for the three months ended June 30, 2026, compared to a $42.7 million loss for the three months ended March 31, 2026, and a $9.3 million loss in the three months ended June 30, 2025. The increase from both periods was the result of the changes described above and includes the aforementioned large non-cash expenses.

Total other income, net of $44.2 million for the three months ended June 30, 2026, compared to other income of $404.2 million for the three months ended March 31, 2026 and other expense of $1.5 million for the three months ended June 30, 2025. Other income included $29 million of interest and investment income during the second quarter, in addition to non-cash gains relating to warrants issued in connection with the October 2025 and January 2026 equity raises. Because these warrants are remeasured at fair value each reporting period, the resulting non-cash gains and losses can create significant volatility in reported earnings that are unrelated to the Company's core operating performance, cash flows, or the economic terms of the warrants.

Net loss was $89.7 million for the three months ended June 30, 2026, which included the non-cash items mentioned above, as compared to net income of $361.2 million for the three months ended March 31, 2026, and a net loss of $10.8 million for the three months ended June 30, 2025.

Adjusted EBITDA loss was $50.6 million for the three months ended June 30, 2026, as compared to a loss of $10.9 million for the three months ended March 31, 2026 and a loss of $5.8 million for the three months ended June 30, 2025. The higher sequential loss reflects the investments made in Ondas' operating platform and corporate development activities to support the expected significant revenue expansion in the second half of 2026 and beyond.

A reconciliation of non-GAAP measures including Adjusted EBITDA, Adjusted Cash Operating Expense, Adjusted Gross Profit and Adjusted Gross Margin, is provided in the attached financial tables.

Operational and Financial Outlook

The Company expects continued strong momentum in 2026 and is raising its revenue target for the full year to $525 - $550 million, which represents a greater than 10-fold increase from 2025 results. On a pro forma organic basis, the midpoint of this range would equate to greater than 30% year on year growth. This updated target includes revenue expected from Cyberhawk during the second half of 2026.

Growth is expected to be broad-based across Ondas' product portfolio, supported by a strong pipeline and approximately $757 million in pro forma backlog. Beyond this broad-based demand, the second-half of 2026 ramp is also expected to be driven by specific customer orders and programs already in backlog: Ondas will begin volume shipments related to orders captured by Mistral under the $982 million Lethal Unmanned Strike (LUS) IDIQ award with the U.S. Army, while also delivering against growing demand for the new ULTRA and IonStrike platforms, which are expected to begin their adoption curve in 2026. Ondas also expects to begin volume deliveries in the fourth quarter for the $140 million combat engineering vehicles program announced earlier in the year. Revenue for the third quarter of 2026 is expected to be $140 - $155 million, representing 76% sequential growth at the midpoint, and greater than 30% organic growth on a year-over-year pro forma basis.

Ondas' strategic growth program remains active, and the Company expects to execute additional acquisitions in 2026 which would result in further business expansion.

The elevated losses in the first half of 2026 represented a front-loading of expenses ahead of the significant revenue ramp expected in the second half of 2026 and beyond. The Company views these expenses as investments necessary to support long-term growth and market capture, and as prudent and limited in scope in relation to the significant opportunity ahead. The Company expects Adjusted EBITDA losses to decline sequentially in the third quarter of 2026 through higher operating leverage benefiting from strong growth in revenues and gross profits driven by strong demand tailwinds and the leveraging of the Ondas broadening operating platform.

The Company pulls forward expectations for Adjusted EBITDA profitability at the operating platform level, which includes OAS and Ondas Sentinel, by Q4 2026 and company-wide adjusted EBITDA profitability by Q4 2027.

Ondas held approximately $1.4 billion in cash, cash equivalents and short-term investments as of June 30, 2026. During the third quarter, the Company has utilized approximately $325 million of cash in connection with closing the acquisitions of DZYNE and Cyberhawk.

Earnings Conference Call & Audio Webcast Details

Date: Thursday, August 13, 2026
Time: 8:30 a.m. Eastern Time
Toll-free dial-in number: 844-883-3907
International dial-in number: 412-317-5798
Call participant pre-registration link: here

The Company encourages listeners to pre-register, which allows callers to gain immediate access and bypass the live operator. Please note that you can register at any time during the call. For those who choose not to pre-register, please call the conference telephone number 10-15 minutes prior to the start time, at which time an operator will register your name and organization.

The conference call will also be broadcast live and available for replay here and via the investor relations section of the Company's website at ir.ondas.com. A replay will be accessible from the investor relations website after completion of the event.

About Ondas Inc.

Ondas Inc. (NASDAQ:ONDS) is a leading provider of autonomous systems, robotics, and mission-critical technologies for defense, homeland security, public safety, critical infrastructure, and industrial markets. The Company develops and deploys integrated unmanned and autonomous platforms across air, ground, and stratospheric environments, including autonomous drone systems, counter-UAS technologies, robotic ground systems, advanced unmanned aircraft and propulsion solutions, demining and engineering systems, and integrated sensing and communications technologies designed to support intelligence, surveillance, reconnaissance, security, and operational missions in complex environments. Ondas' solutions are deployed globally by government, defense, and commercial customers to protect infrastructure, borders, transportation networks, personnel, and strategic assets.

For additional information on Ondas Inc., visit www.ondas.com.

Forward-Looking Statements

Statements made in this release that are not statements of historical or current facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance, or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors, including the risks discussed under the heading "Risk Factors" discussed under the caption "Item 1A. Risk Factors" in Part I of our most recent Annual Report on Form 10-K or any updates discussed under the caption "Item 1A. Risk Factors" in Part II of our Quarterly Reports on Form 10-Q and in our other filings with the SEC. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise that occur after that date, except as required by law.

Contacts

IR Contact for Ondas Inc.
888-657-2377
[email protected]

Media Contact for Ondas Inc.
Escalate PR
[email protected]

Preston Grimes
Marketing Manager, Ondas Inc.
[email protected]

ONDAS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except par value)

June 30,
2026

December 31,
2025

(Unaudited)

ASSETS

Current Assets:

Cash and cash equivalents

$

657,906

$

550,744

Restricted cash

8,472

43,615

Short-term investments

726,587

21,750

Accounts receivable, net

72,247

22,356

Inventory, net

52,034

21,963

Other current assets

88,326

25,473

Total current assets

1,605,572

685,901

Property and equipment, net

21,292

10,217

Goodwill

661,362

251,809

Intangible assets, net

583,268

136,890

Investment in unconsolidated affiliates

26,802

-

Long-term equity investments

49,282

35,587

Other assets

45,919

12,437

Total assets

$

2,993,497

$

1,132,841

LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY

Current Liabilities:

Accounts payable

$

31,499

$

13,873

Accrued expenses and other current liabilities

83,449

33,970

Accrued purchase and contingent consideration

17,180

75,000

Notes payable, related party

-

1,500

Notes payable

1,562

704

Convertible notes payable, related party

-

3,500

Convertible notes payable

718

2,950

Government grant liability

1,841

2,295

Deferred revenue

26,834

8,029

Total current liabilities

163,083

141,821

Notes payable, net of current portion

194

-

Accrued purchase and contingent consideration, net of current portion

116,896

-

Convertible notes payable, net of current portion

3,934

3,834

Government grant liability, net of current portion

1,804

1,362

Warrant liability

1,043,740

489,434

Deferred tax liability

53,779

14,531

Other long-term liabilities

34,490

10,244

Total liabilities

1,417,920

661,226

Commitments and contingencies

Temporary Equity

Redeemable noncontrolling interests

-

29,796

Stockholders' Equity:

Preferred stock - par value $0.0001; 5,000,000 shares authorized at June 30, 2026 and December 31, 2025, and none issued or outstanding at June 30, 2026 and December 31, 2025

-

-

Series A Convertible Preferred stock - par value $0.0001; 5,000,000 shares authorized at June 30, 2026 and December 31, 2025, and none issued or outstanding at June 30, 2026 and December 31, 2025

-

-

Common stock - par value $0.0001; 1,200,000,000 shares authorized at June 30, 2026 and December 31, 2025, 529,838,610 and 380,763,481 issued and outstanding at June 30, 2026 and December 31, 2025, respectively

52

38

Additional paid in capital

1,662,209

805,828

Accumulated other comprehensive income

1,414

329

Accumulated deficit

(93,683

)

(368,387

)

Total Ondas Inc. stockholders' equity

1,569,992

437,808

Noncontrolling interest

5,585

4,011

Total stockholders' equity

1,575,577

441,819

Total liabilities, temporary equity, and stockholders' equity

$

2,993,497

$

1,132,841

ONDAS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

Revenues, net

$

83,772

$

6,273

$

133,894

$

10,522

Cost of goods sold

47,641

2,941

73,105

5,701

Gross profit

36,131

3,332

60,789

4,821

Operating expenses:

General and administrative

128,007

6,079

171,323

11,988

Sales and marketing

20,883

2,266

31,377

4,696

Research and development

30,953

4,237

44,472

7,696

Change in fair value of contingent consideration

19,234

-

19,234

-

Total operating expenses

199,077

12,582

266,406

24,380

Operating loss

(162,946

)

(9,250

)

(205,617

)

(19,559

)

Other income (expense), net

Interest expense

(1,041

)

(1,561

)

(1,378

)

(5,428

)

Other income (expense), net

45,238

60

449,743

102

Total other income (expense), net

44,197

(1,501

)

448,365

(5,326

)

Income (loss) before provision for income taxes

(118,749

)

(10,751

)

242,748

(24,885

)

Provision for (benefit from) income taxes

(29,053

)

-

(28,807

)

-

Net income (loss)

(89,696

)

(10,751

)

271,555

(24,885

)

Less preferred dividends attributable to noncontrolling interest

-

390

-

780

Less deemed dividends attributable to accretion of redemption value

342

878

1,631

1,695

Net loss attributable to noncontrolling interests

(1,451

)

-

(3,149

)

-

Net income (loss) attributable to Ondas Inc. stockholders

$

(88,587

)

$

(12,019

)

$

273,073

$

(27,360

)

Net income (loss) per share - basic

$

(0.18

)

$

(0.08

)

$

0.41

(0.21

)

Net income (loss) per share - diluted

$

(0.19

)

$

(0.08

)

$

0.38

(0.21

)

Weighted average number of common shares outstanding, basic and diluted

Basic

500,709

150,653

473,053

127,955

Diluted

503,593

150,653

491,308

127,955

ONDAS INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(dollars in thousands)
(Unaudited)

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

Net income (loss)

$

(89,696

)

$

(10,751

)

$

271,555

$

(24,885

)

Other comprehensive income (loss):

Foreign currency translation

2,433

-

2,134

-

Available-for-sale investments:

Unrealized gain (loss), net

(275

)

-

(657

)

-

Comprehensive income (loss)

$

(87,538

)

$

(10,751

)

$

273,032

$

(24,885

)

Comprehensive income (loss) attributable to:

Comprehensive loss attributable to noncontrolling interests

$

(1,451

)

$

-

$

(3,149

)

$

-

Foreign currency translation adjustments attributable to noncontrolling interests

383

-

391

-

Noncontrolling interests

(1,068

)

-

(2,758

)

-

Comprehensive income (loss) attributable to Ondas Inc. stockholders

$

(86,470

)

$

(10,751

)

$

275,790

$

(24,885

)

Non-GAAP Measures

As required by the rules of the Securities and Exchange Commission ("SEC"), we provide a reconciliation of our non-GAAP financial measures to the most directly comparable GAAP measures. These reconciliations are set forth in the tables below.

We believe that adjusted earnings before interest, taxes, depreciation, and amortization ("Adjusted EBITDA") is a useful supplemental measure for evaluating our operating performance and period to period trends because it eliminates the impact of items that primarily reflect our capital structure, tax position, non-cash accounting charges, acquisition-related transaction costs, and other items that management does not consider indicative of ongoing operating performance. Adjusted EBITDA should be considered in addition to, and not as a substitute for, net income (loss) and other measures prepared in accordance with GAAP. Adjusted EBITDA removes the effects of interest and financing-related items, depreciation and amortization, income taxes, stock-based compensation and expense, acquisition-related expenses, change in fair value of contingent consideration and other acquisition related obligations, and other non-operating gains and losses. Management believes that excluding these items enhances comparability across periods and facilitates analysis of underlying operating trends.

Adjusted Cash Operating Expense is a non-GAAP financial measure that represents total operating expenses excluding depreciation, amortization of intangible assets, acquisition-related expenses, change in fair value of contingent consideration and other acquisition related obligations, and stock-based compensation and expense. The most directly comparable GAAP measure to Adjusted Cash Operating Expense is total operating expenses. Management believes Adjusted Cash Operating Expense provides useful supplemental information by isolating recurring, cash-based operating costs and facilitating meaningful period-to-period comparisons. Management uses this measure for internal cost management, budgeting, and to evaluate operating trends exclusive of non-cash accounting charges. Adjusted Cash Operating Expense should be considered in addition to, and not as a substitute for, total operating expenses prepared in accordance with GAAP.

Beginning in the period ended June 30, 2026, the Company revised its calculation of Adjusted EBITDA and Adjusted Cash Operating Expense to exclude changes in the fair value of contingent consideration and other acquisition related obligations. These amounts reflect periodic remeasurement adjustments required under U.S. GAAP and are primarily driven by changes in estimates and assumptions related to future earn-out payments. Management believes excluding these acquisition-related fair value adjustments improves period-to-period comparability and provides investors with additional insight into the Company's operating performance. This revision did not affect any previously reported Adjusted EBITDA or Adjusted Cash Operating Expense amounts because no gains or losses related to changes in the fair value of contingent consideration were recognized in the prior periods presented. In connection with this change, the Company renamed 'Cash Operating Expense' to 'Adjusted Cash Operating Expense'. The revised caption is intended to more clearly communicate the measure as a management-defined non-GAAP performance measure that excludes specified cash and noncash expenses and does not represent all operating expenses requiring cash settlement.

Also beginning in the period ended June 30, 2026, the Company introduced Adjusted Gross Profit and Adjusted Gross Margin. Adjusted Gross Profit is a non-GAAP financial measure that represents gross profit excluding amortization of acquisition-related intangible assets and stock-based compensation and expense included in cost of goods sold. Adjusted Gross Margin is a non-GAAP financial measure that represents Adjusted Gross Profit as a percentage of revenue. The most directly comparable GAAP measures to Adjusted Gross Profit and Adjusted Gross Margin are gross profit and gross margin (gross profit as a percentage of revenue), respectively. Management believes these measures provide investors with additional insight into the underlying profitability of the Company's products and services, operating performance and period-to-period trends. Comparative prior-period amounts have been presented on a consistent basis.

Management uses Adjusted EBITDA, Adjusted Cash Operating Expense, Adjusted Gross Profit, and Adjusted Gross Margin together with GAAP results, in making operating and planning decisions and in evaluating the Company's ongoing performance. Other companies may calculate similarly titled non-GAAP measures differently, and therefore our non-GAAP measures may not be comparable to measures used by other companies.

Three months ended
June 30,

For the six months
ended June 30,

(dollars in thousands)

2026

2025

2026

2025

Net income (loss)

$

(89,696

)

$

(10,751

)

$

271,555

$

(24,885

)

Depreciation

934

189

1,603

370

Amortization of intangible assets

18,641

1,055

24,263

2,117

Acquisition-related expenses (1)

4,414

-

10,258

-

Stock-based compensation and expense

69,094

2,179

88,753

3,751

Change in fair value of contingent consideration

19,234

-

19,234

-

Provision for (benefit from) income taxes

(29,053

)

-

(28,807

)

-

Other (income) expense, net (2)

(44,197

)

1,501

(448,365

)

5,326

Adjusted EBITDA

$

(50,629

)

$

(5,827

)

$

(61,506

)

$

(13,321

)

(1)

Acquisition-related expenses include legal, accounting, and other due diligence costs incurred in connection with completed or pending acquisitions.

(2)

Other (income) expense, net includes interest and dividend income, unrealized gain and losses on investments, interest expense, foreign exchange gain and loss, the change in the fair value of government grant liabilities and warrant liability, and other income (expense), net included on the Company's unaudited Condensed Consolidated Statements of Operations.

For the three months
ended June 30,

For the six months
ended June 30,

(dollars in thousands)

2026

2025

2026

2025

Total operating expenses

$

199,077

$

12,582

$

266,406

$

24,380

Depreciation

(571

)

(189

)

(1,043

)

(370

)

Amortization of intangible assets

(13,963

)

(1,055

)

(19,585

)

(2,117

)

Acquisition-related expenses (1)

(4,414

)

-

(10,258

)

-

Change in fair value of contingent consideration

(19,234

)

-

(19,234

)

-

Stock-based compensation and expense

(67,651

)

(1,986

)

(86,148

)

(3,424

)

Adjusted Cash Operating Expenses

$

93,244

$

9,352

$

130,138

$

18,469

(1)

Acquisition-related expenses include legal, accounting, and other due diligence costs incurred in connection with completed or pending acquisitions.

For the three months
ended June 30,

For the six months
ended June 30,

(dollars in thousands)

2026

2025

2026

2025

Revenue

$

83,772

$

6,273

$

133,894

$

10,522

Cost of goods sold

47,641

2,941

73,105

5,701

Gross profit (GAAP)

$

36,131

$

3,332

$

60,789

$

4,821

Amortization of acquisition-related intangible assets

4,678

-

4,678

-

Stock-based compensation and expense

1,443

193

2,604

327

Adjusted Gross Profit (Non-GAAP)

$

42,252

$

3,525

$

68,071

$

5,148

Gross margin (GAAP)

43.1

%

53.1

%

45.4

%

45.8

%

Adjusted Gross Margin (Non-GAAP)

50.4

%

56.2

%

50.8

%

48.9

%

For the three months ended March 31

(dollars in thousands)

2026

2025

Revenue

50,122

4,248

Cost of goods sold

25,464

2,760

Gross profit (GAAP)

$

24,658

$

1,488

Amortization of acquisition-related intangible assets

-

-

Stock-based compensation and expense

1,161

134

Adjusted Gross Profit (Non-GAAP)

$

25,819

$

1,622

Gross margin (GAAP)

49.2

%

35.0

%

Adjusted Gross Margin (Non-GAAP)

51.5

%

38.2

%

SOURCE: Ondas Inc.

© Anton Petrus / Moment via Getty Images

Shares of Unusual Machines (NYSE:UMAC) have climbed 23.39% over the past week, and the stock is adding another 3.41% in Monday trading to change hands near $27. The move follows the company’s Q2 earnings report and comes alongside a broad bid across NDAA-compliant drone names. UMAC is now up 104.95% year-to-date.

Blowout Revenue and a Widening Domestic Drone Tailwind The most recent catalyst is the Q2 FY2026 report released on August 6, 2026. Revenue landed at $16.72 million versus the $9.19 million consensus, an 81.87% beat and growth of 687.3% year-over-year. GAAP EPS came in at -$0.16, missing expectations of $0.08, weighed by $5.70 million in non-cash stock compensation and a $3.88 million unrealized loss on short-term investments. The adjusted EBITDA loss narrowed to roughly $400,000, putting UMAC within striking distance of operational breakeven.

Balance sheet matters here. Cash sits at $229.60 million, headcount doubled to 240 employees, and gross margin held at 34.7%. CEO Allan Evans framed the setup bluntly: “The second quarter of 2026 has been incredible. Unusual Machines is firmly into our next phase of growth, and we are doing it without burning cash. The demand signals continue to be positive.” Management is guiding Q3 revenue to pause sequentially as capacity investments come online, then ramp sharply in Q4 tied to the Department of War’s Drone Dominance program, with positive operating cash flow targeted by end of Q1 2027.

The policy backdrop is a major tailwind. The FY2027 defense request includes $53.6 billion for Drone Dominance, with $39.2 billion earmarked for a multi-year autonomous-systems procurement and domestic production build. That is the demand pipeline UMAC and its peers are competing to feed.

Peers Are Moving in Lockstep Drone stocks are up across the board today.

Red Cat Holdings (NASDAQ:RCAT) reported the same day as UMAC, with revenue up more than fivefold year-over-year even as EPS missed. Kratos Defense (NASDAQ:KTOS) beat on both lines August 4 and raised full-year revenue guidance to $1.75 billion to $1.81 billion, with a bid pipeline of $15.0 billion. AeroVironment (NASDAQ:AVAV | AVAV Price Prediction) is riding record bookings from its Switchblade and BlueHalo lines, and Ondas Holdings (NASDAQ:ONDS) raised its FY26 revenue target to at least $390 million on a backlog that jumped to $457 million.

Another major catalyst to the group is Boeing selling its autonomous flight subsidiaries to Archer Aviation. The deal sees Boeing receive a 16.5% stake in Archer, which provides more validation to aerospace startups. However, another facet is a well-financed competitor selling off businesses that could compete with startups in the space.

Here is how the group looks against UMAC over the past week:

Ticker Today Past Week Market Cap UMAC (Unusual Machines) +3.41% +23.39% $1.35B RCAT (Red Cat) +6.84% +22.31% $1.49B KTOS (Kratos) +1.27% +30.41% $11.63B AVAV (AeroVironment) +0.81% +25.01% $9.53B ONDS (Ondas) +1.65% +21.63% $5.28B Every name in the basket has posted double-digit weekly gains. That points to a factor move: domestic drone supply chain, NDAA compliance, and Drone Dominance procurement. UMAC and RCAT are leading intraday, while KTOS carries the largest weekly gain after its guidance raise.

Contact [email protected] for any questions or corrections.

Key Takeaways Ondas won a $50M U.S. Army LUS order, lifting Mistral's program awards above $240M.Mistral is producing LUS systems for deliveries starting in Q3 2026, with the new order extending visibility.Mistral's capabilities is helping Ondas compete for large-scale U.S. government defense contracts. Ondas Inc (ONDS - Free Report) recently secured a significant order of more than $50 million from the U.S. Army for tactical Lethal Unmanned Systems (“LUS”), reinforcing its growing presence in the defense market.

This order, awarded to Ondas’ subsidiary Mistral Inc., falls under a previously granted $982 million multi-year Indefinite Delivery, Indefinite Quantity (“IDIQ”) contract tied to the Army’s LUS program. Mistral's total awards, under the LUS program, to date have surpassed $240 million, including the initial $190.8 million award.

The contract underscores Ondas’ expanding role in the rapidly evolving precision-strike segment, which is witnessing strong global demand. 
Strategically, the deal highlights the success of Ondas’ acquisition of Mistral, which has positioned it to compete more effectively for large-scale, multi-year government contracts.

Mistral is a prime contractor on U.S. Army and USSOCOM uncrewed and autonomous platforms procurement vehicles. It brings U.S.-based manufacturing, assembly, integration and quality assurance capabilities to Ondas’ operations, supporting program execution and compliance with the country’s defense sourcing requirements. Mistral has a wide-ranging exposure, including advanced mission equipment integration, survivability and mobility enhancements, unmanned systems procurement, defense electronics and lifecycle sustainment services.

Mistral is producing systems for the initial LUS order, with delivery beginning in the third quarter of 2026. The new order extends this production visibility.
Management continues to expect demand for precision-strike and loitering-munition capabilities to keep accelerating as U.S. and allied forces focus on autonomous and deployable strike capabilities.

However, the opportunity is unfolding in an increasingly crowded drone space. Given the rising adoption of autonomous and distributed warfare systems, several established and fast-upcoming players in the drone space are vying for a larger share of this lucrative market. The unmanned aerial vehicle drones market is expected to witness a CAGR of 9.3% from 2026 to 2031, according to a report from Mordor Intelligence.

Let's Evaluate the Competitive TerrainRed Cat Holdings (RCAT - Free Report) is one of the closest competitors for Ondas in the drone space. Teal Drones and FlightWave Aerospace are two of its wholly-owned affiliates. Its portfolio also includes Black Widow (small, unmanned aircraft systems), TRICHON (a military-grade hybrid VTOL) and FANG, an NDAA-compliant FPV drone.

It recently introduced Hellcat, a dual-use small unmanned aircraft system based on the Black Widow platform. RCAT’s expansion into USVs via Blue Ops adds a significant new revenue stream. It also completed the acquisition of Quaze Technologies Inc., which develops wireless power transfer technology for unmanned and autonomous systems. The company recently reported second quarter 2026 results. Revenues surged 527% year over year to $20.2 million.

The broader demand backdrop strongly supports sustained growth in Kratos Defense & Security Solutions (KTOS - Free Report) drone business. Unlike ONDS, Kratos’ unmanned systems business involves scaled defense programs and vertical integration. At the heart of this business lies the XQ-58A Valkyrie combat collaborative aircraft (“CCA”), which has secured a key role in the U.S. defense ecosystem.

Additionally, the company is actively participating in multiple next-gen drone and CCA programs, with strong positioning in future procurement phases. Earlier in the year, Northrop Grumman, a KTOS partner, received the $230 million MUX TACAIR CCA program award, which will be split equally with Kratos. For this program, Northrop will equip its mission systems with Kratos Valkyrie CCA, validating Valkyrie’s operational relevance. The company is also expanding its presence in C-UAS, a category expected to ramp significantly over the next few years.

Second quarter revenues came in at $458.8 million, up 30.5%, with unmanned segment revenues increasing 8.1% year over year on an organic basis. Beyond drones, it is also expanding into other high-growth areas, such as hypersonics, propulsion systems, space and satellite systems, and microwave electronics

ONDS’ Price Performance, Valuation and EstimatesShares of ONDS have gained 16.3% in the past month against the Wireless-National industry’s decline of 16.1%

Image Source: Zacks Investment Research

In terms of the forward 12-month price/sales ratio, ONDS is trading at 6.03, versus the industry’s multiple of 7.02.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for ONDS’ earnings for the current year has been revised downwards over the past 60 days.

Image Source: Zacks Investment Research

ONDS currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Award accelerates development of the Long‑Range Grasshopper™ autonomous aerial delivery system, now integrated within Ondas Sentinel following Ondas' recent acquisition of DZYNE

Valued at more than $6 million, the award adds to Ondas' growing U.S. defense pipeline and reinforces its position in scalable, low-cost autonomous logistics.

WEST PALM BEACH, FL / ACCESS Newswire / August 6, 2026 / Ondas Inc. (NASDAQ:ONDS) ("Ondas" or the "Company"), a leading provider of advanced autonomous systems and next-generation defense and security technologies and services, announced today that the Air Force Research Laboratory (AFRL) has awarded a more than $6 million contract to DZYNE Technologies, LLC ("DZYNE"), now part of Ondas, to advance the Long‑Range Grasshopper™, an autonomous, runway‑independent precision aerial delivery system designed for extended‑range logistics in contested and austere environments.

Ondas recently acquired DZYNE Technologies, establishing Ondas as a vanguard autonomous defense platform uniting complementary capabilities across multi‑domain ISR, counter‑UAS, autonomous effects, aerial security, precision strike, autonomous logistics, and AI‑enabled mission orchestration. Following the acquisition, all contract work is now performed within Ondas Sentinel, the Company's dedicated U.S. defense division.

This award builds on years of collaboration between AFRL and the engineering teams now operating within Ondas Sentinel. Their 2024-2025 flight test campaign validated the Long‑Range Grasshopper's autonomous deployment, jet‑engine air‑start, extended‑range navigation, and precision payload delivery. Under Ondas Sentinel, the new contract accelerates development of scalable autonomous logistics capabilities aligned with the U.S. Air Force's Agile Combat Employment (ACE) concepts.

"This award is another important validation of Ondas' strategy to build a leading autonomous defense platform around technologies that solve urgent national security challenges," said Eric Brock, Chairman and Chief Executive Officer of Ondas. "By bringing DZYNE's proven engineering talent and advanced autonomous logistics capabilities into Ondas Sentinel, we are expanding the depth and scale of our defense portfolio while creating new opportunities to support U.S. and allied customers."

The award also reflects the broader strategic value of Ondas' recent acquisition of DZYNE, extending the Company's autonomous defense portfolio into mission-critical logistics capabilities.

"Long‑range, low‑cost autonomous delivery is a mission imperative for the future fight," said Ryan Hartman, Chief Executive Officer of Ondas Sentinel. "AFRL's continued partnership underscores the Long‑Range Grasshopper's transformative potential. With this technology and team now fully integrated into Ondas Sentinel, we are advancing a capability that directly strengthens resilient, distributed sustainment for contested operations."

The contract supports continued development across Long‑Range Grasshopper units and Grasshopper glider units. The effort builds on the mature Grasshopper glider architecture, which has seen extensive operational use delivering up to 500 pounds of critical payload with precision into contested or infrastructure‑limited environments. Leveraging this proven foundation enables rapid development cycles, reliable performance, and a clear path to scalable fielding for the jet‑powered Long‑Range Grasshopper variant. Development under the award will focus on:

Extended‑range flight and endurance

Modular payload integration

Autonomous navigation in GPS‑limited and GPS‑denied environments

Enhanced reliability and manufacturability for large‑scale fielding

These capabilities strengthen precision autonomous delivery from a wide range of platforms with minimal infrastructure, enabling rapid resupply while allowing crewed aircraft to remain outside threat envelopes.

AFRL's investment reflects the growing need for small, low-cost, long-range unmanned systems that can sustain distributed forces under threat. Ondas Sentinel's commercial manufacturing approach is designed to deliver high-performance systems at dramatically lower cost, supporting the Air Force's demand for scalable, attritable logistics solutions at speed.

The Long‑Range Grasshopper™ is part of Ondas' expanding autonomous defense portfolio, which includes long‑endurance ISR platforms (LEAP and ULTRA) and a suite of counter‑UAS systems.

About Ondas Inc.

Ondas Inc. (NASDAQ:ONDS) is a leading provider of autonomous systems, robotics, and mission-critical technologies for defense, homeland security, public safety, critical infrastructure, and industrial markets. The Company develops and deploys integrated unmanned and autonomous platforms across air, ground, and stratospheric environments, designed to support intelligence, surveillance, reconnaissance, security, and operational missions in complex environments. Ondas' solutions are deployed globally by government, defense, and commercial customers to protect infrastructure, borders, transportation networks, personnel, and strategic assets.

For additional information on Ondas Inc., visit www.ondas.com.

Forward-Looking Statements

Statements made in this release that are not statements of historical or current facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance, or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors, including the risks discussed under the heading "Risk Factors" discussed under the caption "Item 1A. Risk Factors" in Part I of our most recent Annual Report on Form 10-K or any updates discussed under the caption "Item 1A. Risk Factors" in Part II of our Quarterly Reports on Form 10-Q and in our other filings with the SEC. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise that occur after that date, except as required by law.

Contacts

IR Contact for Ondas Inc.
888-657-2377
[email protected]

Media Contact for Ondas Inc.

Escalate PR
[email protected]

Preston Grimes
Marketing Manager, Ondas Inc
[email protected]

Jill Vacek
Director of Communications, Ondas Sentinel
[email protected]

SOURCE: Ondas Inc.

Barnea brings recent, highly relevant leadership experience having led Israel's intelligence agency the Mossad and its technological transformation through a period of active conflicts, positioning the agency as one of the world's most advanced intelligence organizations with unique technological tools.

Barnea's technological, operational and leadership experience will support Ondas' growth plans, including the development, business and technological integration, and global deployment of next-generation multi-domain defense systems, as the Company brings its businesses together into a unified, AI-enabled defense technology platform.

WEST PALM BEACH, FL / ACCESS Newswire / August 3, 2026 / Ondas Inc. (Nasdaq:ONDS) ("Ondas" or the "Company"), a leading provider of autonomous systems and next-generation defense and security technologies, announced today that former Mossad Director David Barnea has joined Ondas Defense Ltd. as Global President and Chairman. Barnea will join Ondas' senior executive leadership team and support the Company's global expansion, strategic technology development, government and defense relationships, and the business and technological integration. He will work closely with Chairman and CEO Eric Brock, Oshri Lugassy, Co-CEO of Ondas Autonomous Systems, and the leadership teams across Ondas' businesses to advance the Company's strategy of building a unified, AI-enabled, multi-domain defense technology platform.

Under Barnea's leadership, the Mossad underwent a broad organizational and technological transformation designed to address the rapidly changing requirements of modern intelligence and warfare. The agency strengthened its intelligence, cyber, technological and operational capabilities, accelerated the integration of artificial intelligence and advanced data technologies, and expanded its cooperation with international intelligence agencies and security partners. Barnea's leadership placed advanced technology at the center of the organization's strategic and operational capabilities. His appointment supports Ondas' strategy to build an integrated global defense technology company organized around four complementary market segments: Aerial Security; ISR & Persistent Intelligence; Precision Strike; and Autonomous Ground Systems. These segments are connected through a unified AI-enabled software and command layer designed to integrate intelligence, communications, mission planning, decision-making and coordinated operational execution.

Barnea brings approximately three decades of national security, intelligence, operational and executive leadership experience. From 2021 to 2026, he served as Director of the Mossad, Israel's national intelligence agency, leading the organization through one of the most challenging and operationally intensive periods in its history. His tenure included the regional conflict heightened confrontation with Iran and Hezbollah, complex international hostage negotiations and high-stakes intelligence and security operations across multiple theaters. Barnea completed his five-year term as Mossad Director in June 2026.

"David brings an extraordinary combination of current operational experience, strategic judgment, technology leadership and global relationships," said Eric Brock, Chairman and CEO of Ondas. "He led one of the world's most sophisticated intelligence organizations through a period of active conflict, rapidly evolving threats and highly complex operations in which artificial intelligence, advanced communications, cyber capabilities and purpose-built technologies played an increasingly important role."

"David understands how to transform an organization around the realities of modern warfare and how to convert emerging technologies into operational capabilities that provide a meaningful strategic advantage," Brock continued. "That experience is directly relevant to the next stage of Ondas' growth. We are integrating advanced technologies, engineering capabilities and customer relationships into a unified defense technology platform. David will help us establish strategic priorities, strengthen our global presence and accelerate the development and deployment of integrated solutions for governments and defense organizations around the world."

As Global President of Ondas Defense Ltd., Barnea will support Ondas' international strategy, national security organizations, defense customers, technology companies and strategic partners. His initial focus will include the Middle East, Europe and Asia, where governments are accelerating investment in autonomous defense, counter-UAS, intelligence, surveillance and reconnaissance, resilient communications, precision-strike and ground robotic systems.

Barnea will also play an important role in Ondas' technology and acquisition strategy. He will help the Company evaluate emerging operational requirements, identify capability gaps, assess potential technology investments and acquisitions, and establish development and integration priorities across the Ondas platform. His responsibilities will include supporting greater cooperation among Ondas' tech companies and connecting their technologies across sensors, intelligence, AI software, communications, autonomous aerial and ground systems, counter-UAS capabilities and precision effectors.

"The nature of warfare is changing rapidly, as demonstrated by the conflicts in the Middle East and Ukraine," said David Barnea, "Operational advantage increasingly depends on the ability to combine intelligence, artificial intelligence, resilient communications, autonomous platforms and precision capabilities into one coordinated operational environment. Ondas has assembled a distinctive group of technologies, companies and experienced teams across several of the most important areas of modern defense," Barnea continued. "The opportunity now is to bring those capabilities together, establish a focused operational and technological strategy, and build an integrated platform that can respond quickly to the evolving requirements of governments and national security organizations. I look forward to working with Eric, Oshri and the entire Ondas organization to support the Company's global expansion and help develop the next generation of AI-enabled, multi-domain defense systems."

Barnea joins Ondas at a period of accelerating commercial momentum and expansion across its global defense businesses. The Company recently announced more than $70 million of new orders secured over a four-week period across unmanned ground systems, border security, counter-UAS, intelligence, surveillance and reconnaissance, and autonomous precision-strike technologies. This growing customer demand, together with Ondas' expanding portfolio of operating companies and technologies, increases the importance of coordinated product development and disciplined integration across the Ondas platform, areas that will be central to Barnea's mandate.

The Company has also introduced a unified systems of systems architecture designed to connect air defense, aerial intelligence, ground robotics, loitering mission systems, sensors, communications and AI-powered command software. Ondas presented this strategy at Eurosatory 2026 under its "Autonomy at First Contact" vision, describing an operational architecture designed to sense, decide, orchestrate, execute and assess missions across multiple domains. Barnea's experience transforming a large security organization around advanced technology, operational priorities and rapidly changing threats is expected to support this next stage of Ondas' development. His role will extend beyond advising on individual technologies and will focus on helping the Company establish a coordinated strategy across its businesses, management teams and technology segments.

"David's experience is exceptionally relevant to what we are building at Ondas," said Oshri Lugassy, Co-CEO of Ondas Autonomous Systems. "Modern defense organizations need more than individual drones, sensors or software products. They need integrated systems that can collect intelligence, understand threats, support decisions and coordinate autonomous action across air, ground and other operational environments. David has direct experience leading an organization through technological and operational transformation during a period of active conflict," Lugassy continued. "His understanding of AI, intelligence, communications, technology development and complex operational requirements will help us connect the capabilities across Ondas, establish clear development priorities and accelerate the delivery of integrated systems to customers around the world."

Before joining the Mossad, Barnea served in the Israel Defense Forces' elite Sayeret Matkal special operations unit. He later earned a bachelor's degree in business administration from the New York Institute of Technology and an MBA in finance from Pace University. Barnea began his private-sector career in mergers and acquisitions at a leading Israeli investment bank. In 1995, he left the private sector to enter public service and subsequently held a wide range of operational, command and executive leadership roles during his approximately 30-year intelligence career.

As Mossad Director, Barnea worked closely with Israeli prime ministers, senior government officials, military leaders and intelligence counterparts around the world on national security, regional stability, counterterrorism and strategic policy. He also played an important role in strengthening international intelligence partnerships and security cooperation. Barnea was appointed to lead Israel's hostage-negotiation efforts with international partners while continuing to oversee the Mossad's broader global mission.

Barnea's position with Ondas is a private-sector role entirely separate from his former public service. Ondas has no direct or indirect relationship with the Mossad, and Barnea will not use or disclose classified, confidential or otherwise restricted government information in connection with his responsibilities at the Company.

About Ondas Inc.

Ondas Inc. (Nasdaq:ONDS) is a leading provider of autonomous systems, robotics, and mission-critical technologies for defense, homeland security, public safety, critical infrastructure, and industrial markets. The Company develops and deploys integrated unmanned and autonomous platforms across air, ground, and stratospheric environments, including autonomous drone systems, counter-UAS technologies, robotic ground systems, advanced unmanned aircraft and propulsion solutions, demining and engineering systems, and integrated sensing and communications technologies designed to support intelligence, surveillance, reconnaissance, security, and operational missions in complex environments. Ondas' solutions are deployed globally by government, defense, and commercial customers to protect infrastructure, borders, transportation networks, personnel, and strategic assets.

For additional information on Ondas Inc., visit www.ondas.com.

Forward-Looking Statements

Statements made in this release that are not statements of historical or current facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance, or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors, including the risks discussed under the heading "Risk Factors" discussed under the caption "Item 1A. Risk Factors" in Part I of our most recent Annual Report on Form 10-K or any updates discussed under the caption "Item 1A. Risk Factors" in Part II of our Quarterly Reports on Form 10-Q and in our other filings with the SEC. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise that occur after that date, except as required by law.

Contacts

IR Contact for Ondas Inc.
888-657-2377
[email protected]

Media Contact for Ondas Inc.
Escalate PR
[email protected]

Preston Grimes
Marketing Manager, Ondas Inc.
[email protected]

SOURCE: Ondas Inc.

Order includes DTIM Kits that deliver integrated Detect, Track, Identify and Mitigate capability through Ondas' counter-UAS portfolio

Award reflects continued momentum for Ondas as global defense customers expand investment in counter-UAS capabilities

WEST PALM BEACH, FL / ACCESS Newswire / July 20, 2026 / Ondas Inc. (NASDAQ:ONDS) ("Ondas" or the "Company"), a leading provider of advanced autonomous systems and next-generation defense and security technologies and services, today announced a $6.9 million order from the Australian Department of Defence for its DTIM Single Operator Counter-sUAS Kits, secured in partnership with in country distributor HIFraser.

Figure 1 DTIM Kit by Ondas SentinelThe order was formally awarded to DZYNE Technologies ("DZYNE"), now part of Ondas. Following the acquisition of DZYNE, the counter-UAS technologies and teams are now operating within Ondas Sentinel, the Company's dedicated U.S. defense division.

Ondas DTIM Kits deliver Detect, Track, Identify and Mitigate (DTIM) capability in a compact, single-operator package, combining the proven DTI detection platform with the globally fielded Dronebuster® (DB4) handheld effector. More than 3,000 Dronebuster® units have been deployed worldwide.

Each DTIM Kit delivers:

Long range omnidirectional drone detection up to 25+ km

Remote ID and AeroScope tracking with real time threat alerts

AI and ML powered drone identification with an updated threat library

Integrated Dronebuster® (DB4) mitigation with optional PNT Attack capability

Seamless TAK display support for complete situational awareness

"Australia's investment in Ondas' DTIM Kits underscores the increasing global priority around counter-UAS readiness and the need for trusted, scalable technologies," said Eric Brock, Chairman and CEO of Ondas Inc. "This award is an important validation of our strategy to build a leading autonomous defense technology platform, combining advanced systems, operational expertise and strong international partnerships to support mission-critical security needs worldwide."

The award further supports Ondas' strategy to scale integrated defense technologies through Ondas Sentinel while expanding partnerships with allied customers worldwide.

"This order reflects the growing demand we are seeing from allied defense customers for practical, field-ready counter-UAS capabilities that can be deployed quickly and operated with confidence," said Ryan Hartman, President and CEO of Ondas Sentinel. "By bringing DZYNE's proven counter-UAS technologies into Ondas, we are strengthening our ability to deliver integrated solutions that help operators detect, track, identify and mitigate threats in increasingly complex environments."

HIFraser emphasized the importance of the capability for Australia's rapidly evolving threat environment.

"We are proud to partner with Ondas Sentinel to bring cutting-edge single-operator counter-UAS capability to Australian forces," said Debora Fortkamp, Chief Strategy Officer at HIFraser. "The DTIM Kits align directly with the needs of Australian operators in today's complex operational environment."

With production capacity already scaled, Ondas Sentinel will begin delivery of DTI systems under the contract and remains prepared to support future expansion as Australia strengthens its counter-UAS posture.

For more information on Ondas' counter-UAS portfolio, please contact [email protected].

About Ondas Inc.
Ondas Inc. (NASDAQ:ONDS) is a leading provider of autonomous systems, robotics, and mission-critical technologies for defense, homeland security, public safety, critical infrastructure, and industrial markets. The Company develops and deploys integrated unmanned and autonomous platforms across air, ground, and stratospheric environments, designed to support intelligence, surveillance, reconnaissance, security, and operational missions in complex environments. Ondas' solutions are deployed globally by government, defense, and commercial customers to protect infrastructure, borders, transportation networks, personnel, and strategic assets.

For additional information on Ondas Inc., visit www.ondas.com.

Forward-Looking Statements
Statements made in this release that are not statements of historical or current facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance, or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors, including the risks discussed under the heading "Risk Factors" discussed under the caption "Item 1A. Risk Factors" in Part I of our most recent Annual Report on Form 10-K or any updates discussed under the caption "Item 1A. Risk Factors" in Part II of our Quarterly Reports on Form 10-Q and in our other filings with the SEC. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise that occur after that date, except as required by law.

Contacts

IR Contact for Ondas Inc.
888-657-2377
[email protected]

Media Contact for Ondas Inc.
Escalate PR
[email protected]

Preston Grimes
Marketing Manager, Ondas Inc
[email protected]

Jill Vacek
Director of Communications, Ondas Sentinel
[email protected]

SOURCE: Ondas Inc.

Is This Pre-IPO AI Robotics Company the Next Big Defense Play?Ondas NASDAQ: ONDS said it has acquired DZYNE Technologies in a transaction valued at approximately $875 million, marking what Chairman and CEO Eric Brock described as a transformational step in building a scaled autonomous defense and security platform.

Speaking on an investor event call, Brock said the deal includes $200 million in cash and approximately $675 million in Ondas equity. He said the acquisition closed concurrently with signing on July 2, allowing integration to begin immediately. DZYNE shareholders, led by majority owner Highlander Partners, will become among Ondas’ largest stockholders, and Highlander has locked up more than half of the shares it received for six months, according to Brock.

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Three Stocks Under $20 With Massive Upside Potential“This is not a financial acquisition,” Brock said. “It is a strategic combination designed to create a larger, stronger, and more competitive autonomous defense company.”

DZYNE Adds Autonomous Defense Platforms Brock said DZYNE brings operational products, a U.S.-based manufacturing base, customer relationships across defense agencies and allied militaries, and nearly 120 engineers. He said the acquisition expands Ondas’ position in persistent intelligence, aerial security, counter-drone systems, autonomous effects and AI-enabled mission intelligence.

Ondas Inc. Flywheel Gains Momentum, Vertical Liftoff ImminentDZYNE’s portfolio spans three core franchises, according to the company presentation:

Long-endurance ISR: Ultra and LEAP, autonomous aircraft designed for persistent intelligence missions. Aerial security and counter-UAS: IonStrike, Dronebuster and Sawtooth systems. Autonomous effects: Blitz and Grasshopper, aimed at affordable mass and launched effects missions. Matt McCue, founder and CEO of DZYNE and incoming chief technology officer of Ondas Sentinel, said Ultra provides more than three days of endurance at more than 25,000 feet, while LEAP provides more than a day of endurance at 17,000 feet. He said both platforms are in operational use with U.S. and allied partners.

McCue said IonStrike was developed from concept to demonstrated capability in six months to address threats such as the Shahed-136 drone. He also highlighted Dronebuster and Sawtooth as soft-kill counter-UAS systems, and said DZYNE is working on a long-range electronic attack solution and lidar detection capability.

Ondas Creates Sentinel Operating Platform Ryan Hartman, CEO of Ondas Sentinel, said DZYNE fills a gap between Ondas’ lower-altitude unmanned systems and stratospheric assets, adding Group 4 and Group 5 long-endurance UAS capabilities. Ondas Sentinel will combine DZYNE and World View under one operating platform.

Hartman said the combined Ondas Sentinel organization includes eight U.S. facilities, more than 330,000 square feet of manufacturing capacity, 500 employees and more than 140 engineers. Brock said DZYNE contributes about 145,000 square feet of U.S.-based production capacity.

Ondas executives emphasized the role of SkyWeaver, the company’s mission autonomy layer being developed with Palantir. Hartman said SkyWeaver is intended to connect platforms across Ondas’ portfolio and enable tasking, collection and mission autonomy. In response to a question from Sydney Freedberg of Breaking Defense, Hartman said the company does not intend SkyWeaver to be a closed proprietary system, but rather a platform able to ingest data from and task third-party systems.

Hartman said SkyWeaver is a joint development program between Ondas and Palantir, with Ondas funding the development. He said Palantir is supporting go-to-market activities and helping ensure Ondas platforms can connect with systems such as Maven.

Financial Targets Raised Brock said DZYNE is expected to generate approximately $190 million to $191 million of revenue in 2026 and more than $300 million in 2027. He also said the business is expected to deliver more than 80% compounded annual revenue growth from 2025 through 2028.

Ondas raised its 2026 revenue target to more than $525 million, up from the $390 million target it announced in May. Brock said the revised target includes contributions from DZYNE and Omnisys, whose acquisition closed in May.

DZYNE has $111 million in backlog and a customer pipeline of more than $1.5 billion, according to Brock. He said Ondas entered the second quarter with approximately $457 million in pro forma backlog and announced more than $150 million of additional orders during the quarter. He also said Ondas expects backlog to expand by $95 million upon closing the Cyberhawk acquisition, which the company expects in the third quarter.

In response to a question from Max Michaelis of Lake Street, Brock said the company is seeing gross margins of 40% to 50% for the DZYNE-related profile, while noting Ondas would provide more financial detail on its second-quarter call in August.

Management Says Acquisition Pace Will Moderate During the call, Brock said Ondas has been executing a strategy to build a multi-domain autonomous systems company through acquisitions, partnerships and operating scale. Hartman cited recent activity including BIRD Aerosystems, Rotron Aerospace, a Palantir partnership, Mistral, World View and Omnisys.

Asked whether the acquisition spree is winding down, Brock said Ondas remains in the early stages of a major adoption cycle for unmanned and autonomous systems, but said the company expects to “moderate the acquisition pace” in the second half and focus on growth, integration and operating leverage.

Brock said Ondas’ priorities are to integrate DZYNE, support customers, scale manufacturing, expand recurring revenue and continue investing in technologies that strengthen its competitive position.

About Ondas NASDAQ: ONDSOndas Holdings, Inc NASDAQ: ONDS develops secure private wireless networking solutions and unmanned aircraft systems tailored to mission-critical industrial applications. Its Ondas Networks division offers the proprietary FullMAX platform, a long-range, high-bandwidth broadband network designed to support real-time data transmission, remote monitoring and IoT deployments across rail, maritime and infrastructure environments. The broadband platform integrates edge-to-cloud architecture to ensure operational resilience and regulatory compliance for transportation and utility operators.

The company's Ondas Autonomous Systems segment builds heavy-lift cargo drones and uncrewed aircraft platforms for logistics, pipeline and infrastructure inspection, emergency response and other government and commercial use cases.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Ondas Inc. (ONDS - Free Report) recently announced that its subsidiary, Sentrycs, has collaborated with Lockheed Martin to integrate Sentrycs' Cyber-over-RF technology into Sanctum, Lockheed Martin's next-generation Counter-Unmanned Aerial Systems (C-UAS) solution. The deal is aimed at strengthening protection for military forces, homeland security and critical assets against evolving unmanned aerial threats.

Sanctum is designed to address complex drone threats, including coordinated swarms and rapidly evolving unmanned aerial system (UAS) tactics, by combining artificial intelligence, cloud-enabled data fusion and a modular defense architecture. The platform is built to detect, track, analyze and neutralize aerial threats in real time while integrating multiple sensors, effectors and command-and-control systems into a unified framework that supports interoperability, mission flexibility and scalable protection across a broad range of defense environments.

As part of the collaboration, Sentrycs' Cyber-over-RF technology will add a cyber-based detection and mitigation layer to Sanctum's multi-domain architecture. Operating directly at the communication protocol layer, the technology enables operators to detect, identify, track and take control of unauthorized drones without relying on jamming, spoofing or kinetic engagement, while avoiding collateral interference with surrounding communications and infrastructure. The capability also allows operators to safely guide unauthorized drones to a controlled landing, providing a targeted and non-disruptive mitigation option that enhances layered response capabilities and supports mission-adaptable counter-drone operations.

Management stated that modern defense against unmanned aerial threats requires integrated, layered solutions that combine advanced detection, rapid decision-making and precise mitigation capabilities. Management also stated that integrating Sentrycs' technology into Lockheed Martin's modular defense architecture creates a stronger and more comprehensive operational capability for countering evolving aerial threats. The collaboration represents another step toward more integrated and interoperable Counter-UAS architectures as defense organizations increasingly prioritize flexible, layered solutions to address rapidly evolving unmanned aerial threats.

Ondas is benefiting from robust demand for its ISR and counter-UAS solutions, supported by higher defense spending, growing investor interest and expanding market opportunities. Demand for its proven ISR platforms remains strong, while acquisitions have broadened its ISR capabilities, expanded its customer base and strengthened its multi-domain surveillance and reconnaissance portfolio. Its partnership with Palantir is further advancing layered ISR capabilities and expanding ISR-as-a-service opportunities.

Taking a Look at ONDS Competitors’Draganfly (DPRO - Free Report) is gaining from strong demand for its drone solutions, particularly in the military sector, supported by growing defense spending and expanding opportunities across domestic and international markets. The company is strengthening its position through strategic collaborations with partners such as Palladyne AI on swarming technologies, Global Ordnance and Babcock to expand its defense reach and multi-platform capabilities. Its interoperable, modular drone platform and partner-centric approach enable customers to integrate multiple payloads and mission requirements, while increasing adoption among military and public safety users. The company also continues to build relationships with key defense customers and strategic partners to support long-term growth.

Red Cat Holdings, Inc. (RCAT - Free Report) is benefiting from rising defense spending on drones, expanding demand for autonomous systems and a growing opportunity pipeline across military customers. The company expects annual revenues of $150-$180 million in the near to medium term, supported by strong demand for its Black Widow, Blue Ops and FlightWave platforms. It is also expanding its capabilities through the acquisition of Quaze Technologies, adding wireless power transfer technology for unmanned and autonomous systems. Management highlighted a nearly $700 million opportunity pipeline for Black Widow and expects its expansion into unmanned surface vessels through Blue Ops to create an additional revenue opportunity in 2026.

ONDS’ Price Performance, Valuation and EstimatesShares of ONDS have gained a whopping 338.6% in the past year against the Zacks Wireless-National industry’s decline of 11.8%.

Image Source: Zacks Investment Research

ONDS seems overvalued, as suggested by the Value Score of F. In terms of the forward 12-month Price/Sales ratio, ONDS is trading at 7.2, considerably higher than the industry’s multiple of 1.62.

Image Source: Zacks Investment Research

For ONDS, earnings estimates for the current year have been revised upwards in the past 60 days.

Image Source: Zacks Investment Research

ONDS currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Ondas plans a $125M Cyberhawk acquisition, expected to close in Q3 2026 pending approvals.Cyberhawk adds drone inspections, digital twins, cloud software and AI asset analytics capabilities.ONDS gains a business with 95% recurring revenue and a $95M backlog supporting future growth. The convergence of AI, autonomous drones, cloud software and critical infrastructure management is reshaping industries worldwide. In a strategic move, Ondas Inc. (ONDS - Free Report) recently announced its planned $125 million acquisition of Cyberhawk, a top provider of drone-based infrastructure inspection and AI-powered asset intelligence. Management indicated that approximately 95% of the consideration will be in stock, reducing immediate cash needs while aligning Cyberhawk shareholders with Ondas' long-term performance. The acquisition also requires regulatory approvals before the expected closing in the third quarter of 2026.

The strategic value of the Cyberhawk acquisition lies in its complementary capabilities. Cyberhawk brings drone inspections, digital twins, cloud-based infrastructure management and AI analytics, while Ondas contributes autonomous aerial systems, mission automation and advanced sensing technologies. Together, they create an end-to-end infrastructure intelligence platform spanning data collection, cloud visualization, AI-driven analysis and predictive maintenance. This integrated ecosystem enhances customer value and opens multiple recurring revenue opportunities.

Cyberhawk enhances Ondas both financially and strategically. The company is projected to generate more than $45 million in revenue for the fiscal year ending March 2027, starting with high-single-digit EBITDA margins and aiming for EBITDA margins exceeding 25% by 2030. About 95% of Cyberhawk's revenue comes from recurring sources, including multi-year contracts, software subscriptions and long-term infrastructure inspection agreements. Recurring revenue improves predictability, reduces earnings volatility and often attracts higher valuation multiples than project-based businesses. Cyberhawk also has a $95 million backlog, offering visibility into future growth.

ONDS is on an acquisition spree. Last month, it agreed to acquire Omnisys, adding AI-powered battlefield orchestration software to its defense portfolio. This is followed by prior buyouts of Rotron Aerospace, Mistral Inc., Bird Aero, Indo-Earth and World View, strengthening its capabilities across loitering munitions, counter-missile defense systems, military engineering equipment and stratospheric surveillance solutions.

Are ONDS’ Rivals Also Betting on Acquisitions?Draganfly (DPRO - Free Report) recently completed the acquisition of Skip Dynamix, strengthening its defense drone portfolio and expanding its presence in the low-cost autonomous aerial systems market. The deal adds fixed-wing drone technology and enhances Draganfly’s AI, autonomy and military systems capabilities, while improving its positioning in U.S., NATO and Indo-Pacific defense programs. The acquisition adds the Orca fixed-wing drone to Draganfly’s portfolio, expanding its capabilities in long-range autonomous systems. It also broadens the company’s reach across defense and government markets, creates revenue growth opportunities and retains key fixed-wing drone expertise through the continued involvement of Skip Dynamix’s founders.

Last month, Unusual Machines (UMAC - Free Report) agreed to acquire Upgrade Energy for approximately $52 million, adding battery and power system expertise to its drone components business. The deal expands the company’s product portfolio, strengthens domestic manufacturing capabilities, and supports future production growth through additional U.S. facilities. In 2025, UMAC completed the acquisition of Rotor Lab, adding high-performance drone motor and propulsion technologies to its portfolio. The deal strengthens its commercial and defense offerings, supports U.S. manufacturing expansion and enhances motor design and engineering capabilities. It also agreed to acquire Aloft Technologies for $14.5 million, adding leading drone fleet and airspace management capabilities to its portfolio.

ONDS’ Price Performance, Valuation and EstimatesShares of ONDS have gained a whopping 486.7% in the past year against the Zacks Wireless-National industry’s decline of 14.5%

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ONDS seems overvalued, as suggested by the Value Score of F. In terms of the forward 12-month Price/Sales ratio, ONDS is trading at 8.63, considerably higher than the industry’s multiple of 1.6.

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For ONDS, earnings estimates for the current year have remained unchanged in the past 30 days.

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ONDS currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.