Ondas Flips the Switch: Record Revenue, $11B Pipeline, and a Push to Drone Mass Production

The defense-tech acquirer raises guidance, pulls forward profitability, and signs a high-profile program to mass-produce FPV drones for Israel.

ONDS · Earnings Call · 2026-08-13

Ondas reported record Q2 2026 revenue of $83.8M, up more than 13x year-over-year, and raised its full-year guidance to $525-550M. The company's pro forma organic growth was 85% YoY, demonstrating that the acquisition engine is not just adding revenue but also accelerating underlying businesses. “On a pro forma basis, assuming our current portfolio companies had been owned throughout both periods, Ondas generated approximately 85% organic revenue growth in the second quarter compared with Q2 2025.” — Eric Brock, Chief Executive Officer · 2026-08-13 The strongest performers included Sentrycs (298% YoY), Airobotics (112%), and 4M (258%).

The company also pulled forward its profitability targets.

We now expect our operating platform, consisting of Ondas' Autonomous Systems and Ondas Sentinel to reach profitability in the fourth quarter of 2026. And for Ondas Inc. to reach company-wide adjusted EBITDA profitability in the fourth quarter of 2027.
Eric Brock, Chief Executive Officer · 2026-08-13

This is a meaningful acceleration from earlier guidance, reflecting confidence in the second-half revenue ramp and the discretionary nature of much of the growth OpEx.

The 2-year strategic pipeline has ballooned to more than $11B, up from $4B just three months ago. Management attributes this to a combination of new acquisitions (DZYNE, Cyberhawk) and organic expansion of the sales organization. “SkyWeaver is designed to serve as a unifying intelligence layer across the Ondas portfolio” — Ryan Hartman, Chief Operating Officer · 2026-08-13 and is central to the integrated, multi-domain solutions the company now pitches. The Precision Strike and Autonomous Systems business lines are the primary drivers, with market segment expansions across aerial security, ISR, and autonomous ground systems.

This systems-of-systems approach is already producing wins. The company announced the Digital Bat program to mass-produce FPV drones for Israel, a contract that aligns with the growing demand for affordable, scalable strike capabilities. As Eric Brock put it on the call, “We are integrating those capabilities through software-defined command and control, enabling customers to operate a coordinated system of systems rather than a collection of disconnected products.” — Eric Brock, Chief Executive Officer · 2026-08-13 Across prior calls, management consistently cited Middle East conflict and European rearmament as accelerants. “So without a doubt, that is driving more activity. So we're seeing more demand, more RFP, more urgency.” — Eric Brock, CEO · 2026-03-25 That same urgency is now translating into contract awards and pipeline growth, echoing the earlier confidence that “core growth is very strong” — Eric Brock, CEO or President · 2026-05-14—a claim validated by the 85% organic print.

Ondas is also strengthening its board and management with high-profile appointments: David Barnea, former Director of the Mossad, as President of Ondas Defense Limited, and General Charlie Flynn, a 4-star general and former commander of U.S. Army Pacific, joining the advisory board. These additions signal a deliberate push into larger international defense programs and Indo-Pacific markets. The company is also leveraging its partnership with Palantir to accelerate acquisition integration via Foundry, a cornerstone of the "One Ondas" operating model. Sky Weaver, developed with Palantir, is already in testing and aims to unify intelligence across air and ground platforms. Iron Wave is also operational and generating customer interest.

The financial statements show a steep inflection. Revenue has risen from literally a few million dollars per quarter in 2025 to $50M in Q1 2026, and management guides to $525-550M for the year, implying a run-rate above $1B by Q4. The balance sheet is strong, with ~$1.4B in cash post-quarter (after deploying $325M for DZYNE and Cyberhawk). Adjusted EBITDA loss was $51M in Q2, but management expects this to be the trough as revenue scales. With the company now targeting exit-2026 annualized revenue of $1B—versus its 2030 goal of $1.5B—there is clear evidence that the growth model is working faster than anticipated.

The stock itself has been volatile, with a massive run-up and subsequent drawdown, but the recent 90-day trend is roughly flat. The fundamental shift in guidance and pipeline suggests the market may be underpricing the pace of execution.