Shivani Kumaresan
3 min read
-
Ondas’ Q3 results will be closely watched for progress toward profitability and its $1-billion revenue target by the end of 2026.
-
Investors also want to see defense contracts turn into revenue, while strong results could spark a short squeeze.
-
On Stocktwits, retail sentiment around the stock turned ‘bullish.’
Ondas Inc. (ONDS) is heading into its third-quarter (Q3) earnings report with renewed optimism among retail traders, who are looking for stronger financial results to support the company’s expanding defense and autonomous systems business.
Ondas stock inched 0.7% overnight, ahead of Thursday. The stock is up 2.8% so far this week.
Ondas’ $1 Billion Revenue Target Faces Execution Test
Ondas faces a crucial test with its Q3 earnings on Thursday. Investors will look for signs that its core businesses have reached the targeted positive EBITDA level, which could ease concerns about the company’s cash position. They will also assess whether Ondas is making progress toward its goal of reaching a $1 billion annualized revenue run-rate by the end of 2026, supported by recent defense acquisitions and growing demand for its drone and autonomous systems.
The company also needs to show that major U.S. Department of Defense and allied military contracts are translating into actual orders and revenue. Better-than-expected results and a positive outlook could also improve market sentiment and potentially trigger a short squeeze since the defense play’s short interest has stayed near 40% since August.
Stemme Deal And Digital Bat Program Boost Ondas’ Production Plans
Ondas secured more than $270 million in orders since June 30, improving its revenue visibility through 2027. Major deals include orders for its ULTRA surveillance aircraft and IonStrike counter-drone system, along with a $56 million contract for electronic safety devices used in a European military drone program.
On Nov. 5, the company also agreed to acquire German aircraft maker Stemme GmbH in an all-cash deal expected to close in Q1 2027. The acquisition would strengthen ULTRA production and support Ondas’ goal of manufacturing 10 aircraft monthly by 2028. On Tuesday, Ondas received a new order under its Digital Bat program to develop and manufacture low-cost attack drones, moving the project closer to production.
Ondas sees Q3 revenue of $140 million – $155 million, up from the $83.8 million reported in Q2. Its Ondas Autonomous Systems division is expected to drive much of this growth, supported by acquisitions and a strong order pipeline.
