Ondas Q1 FY26 earnings call ONDS

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.

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.

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.

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.

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.

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.