Ondas (NASDAQ:ONDS) used its fourth-quarter and fiscal-year 2025 earnings call to emphasize accelerating momentum into early 2026, driven by growth in its Ondas Autonomous Systems (OAS) segment, an expanded acquisition strategy, and new initiatives aimed at broadening its multi-domain intelligence, surveillance and reconnaissance (ISR) offerings.
Financial results highlighted rapid revenue growth and margin expansion
Chief Financial Officer Neil Laird said the company delivered “strong fourth quarter and full-year results,” which management characterized as an inflection point for organic growth and its strategic growth program.
- Q4 revenue: $30.1 million, up 629% year-over-year and nearly 200% sequentially.
- Organic revenue growth: up 63% year-over-year, driven by deliveries of Iron Drone and Optimus systems.
- Q4 gross profit: $12.7 million with a 42% gross margin, improving from 21% a year earlier and 26% in Q3.
- Q4 operating expenses: $36.1 million, reflecting personnel and infrastructure investment as well as acquisition-related activity.
- Q4 net loss: $101.0 million, primarily driven by an $82.2 million non-cash charge tied to warrant accounting.
- Q4 adjusted EBITDA: a loss of $9.9 million, compared to $7.0 million in the prior-year period.
Laird also detailed the warrant-related accounting volatility tied to an October 2025 financing. Because certain warrants must be classified as a liability and marked to market each period, Ondas recorded an approximately $82.2 million non-cash charge. Management stressed the charge does not impact cash, operations, or “the underlying economics of the business,” but said it could introduce variability into reported GAAP earnings going forward.
Balance sheet and capital position expanded significantly
Ondas ended 2025 with $594 million in cash, cash equivalents, and restricted cash, up from $30 million at the end of 2024. Management also cited a pro forma cash balance of over $1.5 billion following a January equity raise, describing the capital position as a competitive advantage supporting acquisition and scaling plans.
Laird said cash used in operating activities was $38.7 million for the year, while cash used in investing activities was $260 million—primarily $207 million deployed into acquisitions. Cash provided by financing activities was $863 million, largely from equity offerings and proceeds from warrant and option exercises.
CEO Eric Brock added that since June 2025 Ondas has raised approximately $1.8 billion, including the $1 billion financing completed in January. He said the pre-funded warrants associated with that January financing have been fully exercised and are included in the share count. Brock also cited Capital IQ data indicating institutional ownership of approximately 33% and said the company believes it is positioned for potential inclusion in additional indices, including the Russell 2000, as 2026 progresses.
Strategic initiatives: Europe JV, World View acquisition, and Palantir partnership
Management highlighted a new European joint venture with Heidelberger called ONBERG Autonomous Systems. Brock said the venture is intended to provide localized manufacturing, engineering, and lifecycle support aligned with European sovereignty requirements, supported by Heidelberger’s procurement relationships in Germany and across NATO-aligned customers. Ondas holds a 51% controlling interest. Brock said ONBERG has identified demand for OAS platforms “particularly in Germany and Ukraine,” and noted that current forecasts do not yet include incremental revenue from ONBERG.
The company also discussed its planned acquisition of World View, announced Monday and expected to close in Q2 2026. Brock and World View CEO Ryan Hartman said the transaction adds a stratospheric “persistent sensing” layer to Ondas’ multi-domain ISR strategy via World View’s “Stratollite” platforms, which can remain over an area of interest for 30 days or more by changing altitude to utilize directional wind bands. Hartman described the approach as “data and intelligence as a service” and said customers can tailor payloads for use cases including electro-optical, hyperspectral, infrared, and communications.
Ondas also described a commercial partnership with Palantir to support a “software-defined” ISR architecture. Brock said Ondas will have access to Palantir’s AIP stack, including Warp Speed and Foundry, and mission systems such as Maven and command-and-control capabilities, with the goal of fusing data across stratospheric, aerial, and ground systems. Hartman said near-term contracting is expected to remain single-domain, with multi-domain ISR as a service becoming more feasible over time as the Palantir layer is built out.
Acquisitions and platform build-out broadened OAS into additional defense verticals
Brock said Ondas has “undergone a significant transformation” over the last nine months and highlighted five acquisitions announced in Q1 2026: Rotron Aerospace, Mistral Inc., BIRD Aerosystems, Indo Earth Moving, and World View. He said the expanded portfolio positions the company across counter-UAS, ISR, loitering munitions and one-way attack systems, and unmanned ground vehicles, with World View extending capabilities into the stratosphere.
Management provided additional color on several acquisitions:
- Mistral: described as a key accelerant for U.S. market expansion and prime contractor capability, with manufacturing and program execution. Brock said Mistral has captured programs “in excess of $1 billion” and is expected to contribute meaningful backlog upon anticipated closing in Q2.
- Rotron Aerospace: adds long-range UAVs, autonomous strike systems, and propulsion technologies, and provides a U.K. presence competing for programs including “Project BREAKSTOP,” which management described as a one-way effector program.
- BIRD Aerosystems: adds airborne protection capabilities, including laser-based DIRCM systems, and access to longer-cycle defense budgets with what management characterized as more predictable and recurring revenue.
- Indo Earth Moving: expands into military engineering vehicles with “immediate revenue contribution” and a funded services platform in Israel that management expects will support operating expense leverage across OAS.
Brock said the five Q1 acquisitions will deploy approximately $550 million of capital and, based on current estimates, are expected to generate approximately $230 million of revenue in 2026. He described the M&A approach as “repeatable,” citing a “growth double dip” from both market growth and the acceleration possible from Ondas’ go-to-market capabilities, operating infrastructure, and access to capital. He noted Centric and Forem as examples of acquired companies that are outperforming underwriting assumptions, and later added Roboteam and Airobotics as seeing significant demand.
Updated outlook: higher 2026 revenue target and profitability milestones
Management raised its 2026 revenue outlook to at least $375 million, which Brock said is more than double the outlook shared at the company’s January investor day. For the first quarter of 2026, Ondas expects revenue of $38 million to $40 million. Brock said BIRD is expected to be the only newly acquired company contributing meaningfully in Q1, with most acquisition-related revenue ramping from Q2 through the rest of the year. He also said Ondas expects backlog to increase significantly in Q1 due to continued order momentum and the addition of backlog from newly acquired companies.
Ondas said it expects higher operating expenses in the first and second quarters of 2026 as it builds infrastructure for a larger enterprise. Management reiterated its profitability pathway, forecasting positive EBITDA for its product companies in Q3 2026, for OAS in Q3 2027, and for Ondas Inc. in Q1 2028, while noting integration and scale could potentially accelerate those timelines.
In Q&A, executives said heightened conflict in the Middle East has increased urgency, demand, and RFP activity, with Meir Kliner saying Ondas’ ISR and counter-UAS products are “the right products at the right time.” Brock also addressed manufacturing and go-to-market considerations, saying the company has identified capacity needs and does not see “unique bottlenecks” to achieving 2026 targets, while acknowledging the need to build manufacturing capacity and partners as the ramp progresses.
About Ondas (NASDAQ:ONDS)
Ondas 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.
