On August 13, Ondas (NASDAQ:ONDS) held its second-quarter earnings call, and the numbers explain why the stock has been getting attention. Revenue hit $83.8 million, more than thirteen times what the company generated in the same quarter a year earlier. Management didn't stop at reporting the number. It raised full-year guidance, pointed to a backlog that has grown elevenfold since the start of 2026, and said it now expects to exit the year at a $1 billion annualized revenue run rate. For a company built by stitching together drone and counter-drone technology companies, this was the quarter meant to prove the strategy actually works.
The headline number was revenue of $83.8 million, up 67% sequentially, but the more telling figure is that organic growth, stripping out the effect of acquisitions, ran at approximately 85% year over year. Ondas raised its full-year 2026 revenue target to a range of $525 million to $550 million and guided third-quarter revenue to $140 million to $155 million, which implies roughly 73% sequential growth at the midpoint. If that ramp holds through the fourth quarter, the company expects to finish 2026 at a $1 billion annualized run rate, putting it years ahead of the $1.5 billion target it had set for 2030.
Backlog and demand back up the guidance. Pro forma backlog stood at $757 million on June 30, up 66% sequentially from $457 million at the end of the first quarter, while the two-year strategic pipeline has swelled past $11 billion, more than 2.5 times what it stood in May. New orders kept arriving on top of that: $175 million booked during the quarter itself and roughly $105 million more already captured so far in the third quarter.
The growth isn't just acquisition math, either. Sentrycs, the counter-drone unit, posted pro forma revenue growth of about 298% year over year, 4M's demining and land intelligence business grew 258%, and Airobotics rose 112%. Rotron, added through acquisition, booked $34.2 million of orders in a single quarter against the $25 million of full-year 2026 revenue Ondas had underwritten when it bought the company. The balance sheet backs the ambition: cash and short-term investments reached $1.4 billion, up from $616 million at the end of 2025, leaving room to spend $325 million in the third quarter alone on the DZYNE and Cyberhawk acquisitions. Contract wins add further weight, including $240 million of orders under a $982 million U.S. Army unmanned strike contract awarded to Mistral, a $140 million combat engineering vehicle program for INDO Earth, and a new one-way attack system deal with Israel's Ministry of Defense. The company also added former Mossad Director David Barnea and retired four-star General Charlie Flynn to its leadership and advisory ranks.
#ondas
The headline number was revenue of $83.8 million, up 67% sequentially, but the more telling figure is that organic growth, stripping out the effect of acquisitions, ran at approximately 85% year over year. Ondas raised its full-year 2026 revenue target to a range of $525 million to $550 million and guided third-quarter revenue to $140 million to $155 million, which implies roughly 73% sequential growth at the midpoint. If that ramp holds through the fourth quarter, the company expects to finish 2026 at a $1 billion annualized run rate, putting it years ahead of the $1.5 billion target it had set for 2030.
Backlog and demand back up the guidance. Pro forma backlog stood at $757 million on June 30, up 66% sequentially from $457 million at the end of the first quarter, while the two-year strategic pipeline has swelled past $11 billion, more than 2.5 times what it stood in May. New orders kept arriving on top of that: $175 million booked during the quarter itself and roughly $105 million more already captured so far in the third quarter.
The growth isn't just acquisition math, either. Sentrycs, the counter-drone unit, posted pro forma revenue growth of about 298% year over year, 4M's demining and land intelligence business grew 258%, and Airobotics rose 112%. Rotron, added through acquisition, booked $34.2 million of orders in a single quarter against the $25 million of full-year 2026 revenue Ondas had underwritten when it bought the company. The balance sheet backs the ambition: cash and short-term investments reached $1.4 billion, up from $616 million at the end of 2025, leaving room to spend $325 million in the third quarter alone on the DZYNE and Cyberhawk acquisitions. Contract wins add further weight, including $240 million of orders under a $982 million U.S. Army unmanned strike contract awarded to Mistral, a $140 million combat engineering vehicle program for INDO Earth, and a new one-way attack system deal with Israel's Ministry of Defense. The company also added former Mossad Director David Barnea and retired four-star General Charlie Flynn to its leadership and advisory ranks.
#ondas
3 months ago
