Ondas (ONDS) Q2 FY26 earnings call: guidance and Q&A

Inquired about the drivers behind the pipeline's expansion from $4 billion to $11 billion, specifically asking about the contribution from the DZYNE acquisition versus organic growth, and the significant uptick in APAC.

Eric Brock confirmed the pipeline growth is broad-based across all four market segments and regions. DZYNE contributed significantly to ISR and counter-drone systems. He highlighted strength in precision strike with Rotron and demand in Asia Pac, noting General Flynn's mandate includes penetrating the Asia Pacific region.

“So the uptick in our strategic pipeline is really broad-based across the 4 market segments we're active in. And as you can see, it is also a broad-based regionally design and certainly brought quite a bit on the ISR and counter drill systems in particular.”

asked by Austin Bohlig · answered by Eric Brock

Asked if the implied 30% organic revenue growth for the full year 2026 is sustainable into 2027, and how to think about growth for the next year.

Eric Brock stated that the 30% to 40% growth level across the portfolio is sustainable, emphasizing that many significant platforms are just beginning their adoption curves. He expects the frequency and size of orders to continue growing over the next 3-12 months.

“I think it is sustainable. And I'd also add that we have some very significant platforms that are really just beginning their adoption curves.”

asked by Austin Bohlig · answered by Eric Brock

Asked for clarification on whether corporate investments would scale down on a dollar or percentage basis, given the confidence in pulling forward EBITDA targets.

Eric Brock explained that the level of spending on corporate development, Ondas Capital, and partner programs is likely steady-state for the next 6-12 months, potentially moderating into 2027. He emphasized that operating leverage will come from strong revenue growth and gross profit generation, not necessarily a dollar reduction in these strategic investments.

“So I think the level of spending on the Corp Dev and Ondas Capital or partner programs is probably a steady state, at least for the next 6 to 12 months. we may see that moderate -- we're certainly going to see it moderate and we potentially could see a decline into 2027.”

asked by Jonathan Siegmann · answered by Eric Brock

Inquired how the unified SkyWeaver platform and multi-domain approach are changing engagement with government agencies, what portion of the $11 billion pipeline reflects these larger opportunities, and when conversion to P&L is expected. Also asked about normalized OpEx post-DZYNE/Cyber Hawk acquisitions.

Eric Brock stated that DZYNE's Q3 P&L inclusion will step up OpEx but also bring higher revenues and gross profit, contributing to operating leverage. Ryan Hartman added that SkyWeaver increases win probability for programs needing connection to customer C2 systems and mission autonomy, and enables cross-selling across platforms (e.g., stratospheric balloon with Ultra UAS).

“First is through the addition of SkyWeaver into our platforms, we're increasing the probability of when for programs that need to be connected into the customer C2 systems and through the ability to do mission autonomy. And then the second thing I would add is that it enables an increase in cross-selling.”

asked by Scott Searle · answered by Eric Brock

Asked for more detail on the operational platform, the role of Palantir, cloud usage, AI involvement, and how quickly companies are integrated.

Ryan Hartman explained that integration is built on Palantir Foundry and Warp Speed, using AI agents for ERP/MRP/inventory/financial systems, enabling a unified business picture and efficiencies. The infrastructure is built on DevCloud in Microsoft Azure, ensuring security compliance. He noted that the first tools became operational a week after WorldView's acquisition, and all mentioned tools are operational today for integrating DZYNE and WorldView.

“So a lot of the integration is built on Foundry and work speed. And so we have worked with Palantir to design AI agents, have rewrite capability into ERPs, into MRPs and material planning systems into inventory systems and financial systems.”

asked by Timothy Horan · answered by Ryan Hartman

Inquired if the successful deployment of Iron Wave moves the needle for other potential customers.

Eric Brock confirmed that Iron Wave is receiving tremendous feedback and is expected to be very material to the pipeline and order cadence in coming months and quarters. He believes success with the current customer will open other global markets.

“Absolutely. We were seeing a tremendous feedback. And in fact, as we're thinking -- if you look at our pipeline, and how we're expecting the cadence of orders in the coming months and quarters, we do think iron wave will be very material.”

asked by Matthew Galinko · answered by Eric Brock