Explosive Revenue Growth in Q1 2026
Revenue of $50.1 million in Q1 2026, a tenfold increase year‑over‑year (≈+900% YoY) and up 66% sequentially vs. Q4 2025. Q1 revenue was roughly equal to all of Ondas' 2025 revenue, demonstrating rapid scaling.
Ondas
· ONDS
May 14th, 2026
Summary
- Earnings Call Date:
- 2026-05-14
- Change Since:
- -31.49%
- Next Earnings Date:
- 2026-08-17
Earnings Call Sentiment
PositiveThe call highlighted multiple substantive operational and financial milestones: exceptional top‑line growth (Q1 revenue up tenfold YoY and +66% sequential), strong gross margin expansion to 49%, a sizable, diversified backlog (~$450–$457M) and a very strong liquidity position (~$1.48B). Management achieved product company EBITDA profitability ahead of plan, raised 2026 revenue guidance, advanced strategic acquisitions (WorldView, Mistral), and announced a meaningful partnership with Palantir to deliver portfolio‑level mission autonomy (Sky Weaver). Offsetting these positives are near‑term profitability pressures at the consolidated level (adjusted EBITDA loss of $10.9M), increased operating and cash investments, GAAP earnings volatility caused by large warrant mark‑to‑market accounting and integration/timing risk around converting backlog and acquisitions into steady revenue and cash flow. On balance, the operational momentum, cash resources and upgraded guidance dominate the narrative and outweigh the near‑term investment and accounting noise.
Company Guidance
The company raised full‑year 2026 revenue guidance to at least $390 million (up from $375M), supported by Q1 results of $50.1M revenue (10x year‑over‑year, +66% sequentially and ~25% above prior Q1 guidance), gross profit $24.7M (49% gross margin), and product‑company EBITDA profitability achieved in Q1 (despite an adjusted EBITDA loss of $10.9M). Ondas ended the quarter with approximately $1.48B of cash and short‑term investments, long‑term investments of $42.3M, shareholders’ equity of ~$1.078B, a warrant liability of ~$1.1B, and a backlog of roughly $457M (pipeline of ~$4.3B with program potential >$1.6B and regional pipeline ~ $1.8B U.S./> $2.0B Europe). Quarterly cash used in operations was $51.3M, cash used in investing $474.2M (including ~$31.8M of acquisitions), cash from financing $968.5M, operating expenses $67.3M (cash OpEx $36.9M), and the company reiterated targets for expanding gross margin (targeting >50% over time), expects OAS EBITDA profitability in Q1 2027 (six months ahead of prior guidance), and estimates M&A capacity of ~$4.2B (potential to add $1.0–$1.8B of incremental annualized revenue using 2.5x–4x 2027 revenue multiples).
Strong Gross Margin Expansion
Gross profit of $24.7 million and a 49% gross margin in Q1 2026, up from 35% in the prior year (+14 percentage points) and up from 42% in Q4 2025 (+7 percentage points), driven by favorable product mix and scale benefits.
Product-Level Profitability Achieved Ahead of Plan
Ondas achieved product company level EBITDA profitability in Q1 2026 approximately two quarters ahead of internal plan, signaling improving unit economics within product lines.
Large Backlog and Robust Pipeline
Backlog reported at approximately $450–$457 million, providing visibility into 2026 and beyond. Active pipeline of opportunities totaled about $4.3 billion across more than 45 submissions globally, with the U.S. (~$1.8B) and Europe (> $2B) as major regions.
Very Strong Liquidity Position
Cash, cash equivalents, restricted cash and short‑term investments of roughly $1.48 billion at quarter end (up materially from $66.1 million at the end of 2025), providing substantial flexibility for organic investment and M&A.
Raised 2026 Revenue Outlook
Company increased its full‑year 2026 revenue guidance to at least $390 million (up from prior guidance of $375 million), citing backlog and early-year momentum.
High Organic and Acquired Growth Signals
Segment highlights: Air Robotics delivered ~260% YoY revenue growth; Centrix captured $36 million in orders through April 1 (exceeding Centrix's full year 2025 revenue of $30M); 4M Defense won $80M in tenders with $25.8M of initial orders. Recent acquisitions (WorldView, Mistral and others) expanded U.S. presence and capabilities.
Strategic Partnerships and Product Roadmap
Strategic partnership with Palantir (Sky Weaver / agentic AI) to create a cross‑platform intelligence layer (mission autonomy) with initial portfolio integrations targeted for Q4 2026; introduced Iron Wave systems, delivered and operational in active combat environments.
Operator
Welcome to the Ondas Inc. First Quarter 2026 Earnings and Business Update Conference Call. [Operator Instructions] Before we begin, the company would like to remind you that this call may contain forward-looking statements. While these forward-looking statements reflect Ondas best current judgment, they are subject to risks and uncertainties that can cause actual results to differ materially from those implied by these forward-looking statements. These risks are discussed in Ondas periodic SEC filings and in the earnings press release issued today, which are both available on the company's website. Ondas undertakes no obligation to revise or update any forward-looking statements to reflect future events or circumstances, except as required by law. During this call, on this, we'll refer to certain non-GAAP financial measures. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles.
A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures as shown in our press release issued today, which is available at the Investor Relations section of our website. This non-GAAP information is provided as a supplement not as a substitute or superior to, measures of financial performance prepared in accordance with GAAP. However, management believes these non-GAAP measures provide investors with valuable information on the underlying trends of our business. Please note this event is being recorded. I would now like to turn the presentation over to Eric Brock, Chairman and CEO. Please go ahead, sir.
Eric Brock
Thank you...
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