How will the large backlog translate into revenue this year, and what is the outlook for the nearly $1 billion UVision contract?

Eric Brock indicated conservative planning for the UVision contract, which is well-funded with reorder potential. He expects strong sequential revenue growth from Q2 through Q4 but noted precision on quarterly cadence is difficult at this time. “So that remains to be seen, of course, but we do think that is a well-funded program and the customer has need for reorders. I think if you look at our guidance here or the targets, I should say, we plan conservatively there.”

Is the gross margin strength coming from customizing solutions for customers?

Eric Brock confirmed that customization helps drive margins, but also cautioned that gross margins are expected to remain volatile quarter-to-quarter due to product mix and the need to scale efficiencies. He reiterated long-term targets of 50-60% gross margins, with software contribution aiding this goal. “Yes, for sure. I think that's part of it. At the same time, let me just also add firstly that we're still expecting gross margins to be volatile quarter-to-quarter. And that is based on mix and the need for us to still drive scale across the company and efficiencies.”

What is the target range for adjusted EBITDA as a percentage of revenues in the next few years?

Eric Brock stated the long-term goal is to achieve 25% to 30% adjusted EBITDA margins. However, he emphasized that the near-term objective is to capture significant market share and grow the enterprise, rather than focusing on immediate massive profitability, given the large market opportunity. “Yes, for sure. I think we're all day long, still focused on getting those to the 25% to 30% level. And of course, we have to drive scale and efficiencies across the business. So -- but at the same time, we've been quite clear that we're investing in the business and the infrastructure and the growth platform to capture markets, and we think the reward to do that is significant because there's a massive market to penetrate and there's some big companies and big important companies to build, we endeavor to be one of those.”

ONDS

Ondas (ONDS) Q1 FY26 earnings call: guidance and Q&A

Earnings call· Mar 2026 (Q1 FY26)· Information Technology· May 14, 2026

Source: earnings call transcript

Executive summary

Ondas Inc. Q1 FY26 — Tenfold Revenue Growth & Early Product-Level EBITDA Profitability

Ondas Inc. reported a strong Q1 FY26, achieving tenfold revenue growth to $50.1 million and reaching product-level EBITDA profitability ahead of schedule. The company significantly expanded its backlog to over $450 million through strategic acquisitions and partnerships, including World View and Mistral, and raised its full-year revenue guidance to at least $390 million. Ondas is leveraging its robust balance sheet and new AI-powered SkyWeaver platform to drive multi-domain ISR capabilities and accelerate market penetration in unmanned and autonomous systems.

Highlights

Q1 revenue of $50.1 million, representing tenfold year-over-year growth and 25% above the high end of prior targets.
Achieved product company level EBITDA profitability in Q1, approximately 2 quarters ahead of internal plan.
Backlog increased to over $450 million following World View and Mistral acquisitions, providing significant visibility.
Ended Q1 with $1.48 billion in cash and short-term investments, providing substantial financial flexibility.
Raised full-year 2026 revenue outlook to at least $390 million, up from $375 million.

Concerns

Cash used in operating activities increased to $51.3 million in Q1 2026 from $6.7 million in Q1 2025, primarily due to a $47 million increase in working capital.
Adjusted EBITDA was a loss of $10.9 million, compared to a loss of $7.5 million in the prior year, reflecting investments ahead of growth.
Operating expenses increased to $67.3 million, driven by investments in personnel, infrastructure, and acquisition-related activities.

Guidance & targets

Category	Target	Timeline	Confidence
Full-year 2026 Revenue	at least $390 million high materiality	FY26	High
Product Company EBITDA Profitability	continue through 2026 and beyond medium materiality	FY26 and beyond	High
OAS EBITDA Profitability	Q1 2027 high materiality	Q1 · FY27	High
Operating Expenses	continue increasing medium materiality	H1 2026 · FY26	High

ONDS operating KPIs by quarter

ONDS operating KPIs stated on its earnings calls, by fiscal quarter
KPI	This call Mar 2026 Q1 FY26	Jun 2026 Q2 FY26	Change vs prior quarter
Employees	1,000+ Ondas now has more than 1,000 employees globally, supporting operations, engineering, manufacturing, integration and customer delivery, positioning us to meet growing demand and keep scaling. Source: earnings call transcript	~1,700 Today, Ondas operates in more than 60 countries through 25 physical locations with approximately 1,700 employees around the world. Source: earnings call transcript	—

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Orderbook & backlog

Total Backlog more than $450 million April 2026

Following the closing of the World View and Mistral acquisitions.

Total Backlog approximately $457 million Q1 2026 end

Reflects increasing global demand for Ondas technologies across multiple operational domains and strategic regions.

Program Potential (Won/Positioned) more than $1.6 billion Q1 2026 end

Combined program potential across defense, homeland security, border security, and autonomous warfare markets.

Active Pipeline Opportunities approximately $4.3 billion Q1 2026 end

Across more than 45 submissions globally, reflecting increasing demand for autonomous defense, security, ISR, and robotic technologies.

LASSO Program Potential nearly $1 billion Q1 2026 end

Focused on low altitude stalking and strike ordinance capabilities.

Product announcements

Product	Type	Timeline	Details
IRON-WAVE platform	launch	Q1 2026 (initial systems deployed)
SkyWeaver AI platform	launch	Initial integrations targeted for Q4 2026

Deals & partnerships

World View Acquisition of a multi-domain ISR platform company

Acquisition completed on April 1, 2026. Fills key strategic gaps and accelerates scaling of Ondas platform.

Mistral Acquisition of a defense technology company

Acquisition completed on April 1, 2026. Fills key strategic gaps and accelerates scaling of Ondas platform.

Palantir Strategic partnership for AI platform and operational software

Partnership announced, with SkyWeaver platform leveraging Palantir's AIP. Building AIP applications to plan missions, manage programs, and operate fleets, enhancing efficiencies and scalability.

Heidelberg Joint venture for European defense market

Launched ONBERG, a Germany-based joint venture initially focused on Germany and Ukraine with broader European expansion over time. Addresses demand for localized manufacturing and regional operating capabilities.

Risks & headwinds

Operational challenges in active war zones ongoing

unquantified

Mitigation:Mission-driven company culture, team rallies to support each other and drive business forward, accustomed to working under pressure.

Gross margin volatility quarter-to-quarter

unquantified, but stated as expected

Mitigation:Focus on driving scale across the company and efficiencies; expectation for long-term improvement towards 50-60% margins with software contribution.

Increased cash usage upcoming quarter (Q2 2026)

unquantified, but stated as expected

Mitigation:Continued investment ahead of growth, particularly related to acquisitions that closed late Q1 or early Q2. Expect meaningful improvement in adjusted EBITDA losses in H2 2026.

Warrant liability impact on GAAP net income ongoing

$1.1 billion at quarter end

Mitigation:Management emphasizes that this is a noncash accounting item that does not impact cash position, operations, or underlying economics of the business, encouraging investors to focus on operating performance.

What to watch in Q2 FY26

OAS EBITDA profitability

second half of 2026

Current loss of $10.9 million (Adjusted EBITDA for company)

Target meaningful improvement in adjusted EBITDA losses

Why it matters

Demonstrates operating leverage and progress towards Q1 2027 profitability target for the OAS segment.

As we move through the second half, we expect to see meaningful improvement in adjusted EBITDA losses driven by operating leverage, particularly within our OAS segment.

Find out whether ONDS delivers this. Inve re-checks your case every morning.

Q&A highlights

How should we think about the organic growth rate, given Airobotics' 260% YoY revenue growth?

Eric Brock stated that core growth is very strong, noting a 32.8% sequential growth from Q4 to Q1. He also mentioned that the pro forma revenue for companies owned at the end of 2025 was $90 million, with initial 2026 guidance of $175 million, implying a core growth starting at 100%.

“So the way I'm thinking about it is core growth is very strong, and I think we're going to be able to show you metrics like that as we're moving through the year. Another metric I'll share, which we didn't put into the prepared remarks was our sequential growth. And I highlight that because in Q1, we were comping against a portfolio that included new companies such as Sentrycs and the sequential growth was 32.8% Q1 versus Q4.”

asked by Austin Bohlig · answered by Eric Brock

2 min read 6 chapters

Detailed narrative

Strategic Growth & Acquisitions

Ondas is executing a Core + Strategic Growth strategy, building a global operating platform for unmanned and autonomous systems. Recent acquisitions of World View and Mistral in April, along with the ONBERG joint venture in Germany, have expanded U.S. market reach, production infrastructure, and global presence across 15 offices and 45 countries, supporting over 1,000 employees.

This strategy aims to fill key strategic gaps and accelerate platform scaling, adding differentiated technology, customer relationships, and operational capabilities.

Financial Performance & Outlook

Q1 FY26 revenue reached $50.1 million, a tenfold increase year-over-year, driven by strong performance in counter-drone and defense-related markets. The company achieved product-level EBITDA profitability two quarters ahead of schedule. Gross margin improved to 49% from 35% in the prior year.

Based on this momentum and a backlog exceeding $450 million, Ondas raised its full-year 2026 revenue outlook to at least $390 million, up from $375 million.

SkyWeaver AI Platform & Mission Autonomy

The newly introduced SkyWeaver platform, powered by Palantir's AIP stack, is designed to transform autonomous ISR platforms into integrated intelligence systems. It enables mission autonomy by continuously ingesting sensor data from various domains, reasoning with AI models, optimizing collection strategies, and executing cross-platform tasking.

This architectural significance allows Ondas to fuse data streams automatically, providing correlated, decision-ready intelligence and creating a structural advantage over single-platform competitors.

IRON-WAVE System of Systems

Ondas launched IRON-WAVE, a combat-proven multilayered robotic solution integrating mobile UGV platforms with multiple autonomous systems. It provides both aerial defense and offensive support, combining CUAS detection and neutralization with ground and aerial assault effectors. Powered by an AI-assisted mobile command and control center, initial IRON-WAVE systems were deployed to combat units in Q1 and are now operational, receiving strong feedback for improving mission effectiveness and force protection.

Capital Allocation & M&A Capacity

With $1.48 billion in cash and short-term investments, Ondas possesses significant financial flexibility. The company estimates capacity to support over $4.2 billion in M&A activity, potentially adding $1 billion to $1.8 billion in incremental annualized revenue. This M&A strategy focuses on acquiring differentiated technologies, strong leadership teams, and operational capabilities that strengthen the broader Ondas platform, aiming for a 'double dip' of value creation.

Market Opportunity & Pipeline

Ondas' active pipeline represents approximately $4.3 billion in opportunities across more than 45 submissions globally, with significant portions in the United States ($1.8 billion) and Europe ($2 billion). The company is positioned across four major defense technology verticals: Counter-UAS, ISR, Loitering Munitions, and Unmanned Ground Robotics, demonstrating its ability to compete for large-scale global programs and drive long-term expansion.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.