Ondas Holdings delivered a dramatic second-quarter earnings report that showcased both explosive revenue growth and a much wider than expected adjusted loss, leaving the market divided on how to value the defense-technology company. Revenue reached a record $83.8 million, up 1,236% year-over-year from $6.3 million and up 67% sequentially from $50.1 million in Q1. The result beat Wall Street estimates of roughly $68 million by about 25%.
However, adjusted EBITDA came in at a loss of $50.6 million, missing the expected loss of about $31.6 million. Operating expenses reached $199.1 million, including $105.8 million in non-cash items and $67.6 million in stock-based compensation. The company ended the quarter with a strong cash position of $1.4 billion.
The company raised full-year 2026 revenue guidance to $525 million to $550 million, up from a prior target of at least $390 million, with Q3 guidance of $140 million to $155 million. Ondas also reported a backlog of about $757 million on a pro forma basis after the DZYNE and Cyberhawk acquisitions, up from $68.3 million at the end of 2025. New bookings reached $175 million in Q2, with an additional $105 million in Q3 to date.
Market reaction was mixed across sessions. One account described the stock rising about 6% after the open on a clean revenue beat and guidance raise, while another reported a premarket drop of roughly 4-5% to $9.36 as investors focused on the wider-than-expected loss. CEO Eric Brock pointed to strong bookings momentum and said adjusted EBITDA losses are expected to decline sequentially in Q3, with profitability forecast by the end of 2027.
Ondas has transformed into an autonomous defense platform focused on counter-drone technology, with systems such as Sentrycs and Iron Drone, a partnership with Palantir, and a selection by Israel’s Ministry of Defense for next-generation tactical attack drones. The stock had gained about 30% in August but was roughly flat for the year heading into the report.
