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    ONDS
    Earnings call· Dec 2025(Q4 FY25)

    Ondas Q4 FY25 earnings call ONDS

    Mar 25, 2026 Source

    Executive summary

    Ondas Q4 FY25 — Strategic Acquisitions Drive Accelerated Growth and Raised 2026 Outlook

    Ondas Inc. is executing a strategic growth plan, marked by significant acquisitions and the build-out of a scaled operating platform. The company exceeded FY25 revenue targets and raised its 2026 outlook, driven by strong organic growth and accretive M&A. While investing heavily in infrastructure and integration, Ondas maintains a path to profitability, leveraging its robust capital position and multi-domain ISR platform.

    Highlights

    5

    • FY25 revenue exceeded $50 million, well ahead of earlier targets.

    • Raised 2026 revenue outlook to at least $375 million, more than doubling prior expectations.

    • Q4 FY25 revenue grew 629% year-over-year to $30.1 million, and 200% sequentially.

    • Q4 FY25 gross margin significantly improved to 42%, up from 21% in the prior year and 26% sequentially.

    • Pro forma cash balance stands at over $1.5 billion, providing significant financial flexibility.

    Concerns

    3

    • Q4 FY25 net loss was $101 million, primarily due to an $82.2 million non-cash warrant revaluation charge.

    • Cash operating expenses increased to $36.1 million in Q4 FY25 due to investments in personnel and infrastructure.

    • Higher cash usage is expected in the first half of 2026, reflecting continued investment ahead of growth.

    Guidance & targets

    8
    CategoryTargetConfidence
    Revenue
    at least $375 million
    high materiality
    High
    Q1 Revenue
    $38 million to $40 million
    medium materiality
    High
    Backlog
    increase significantly
    medium materiality
    High
    Cash usage
    higher cash usage
    low materiality
    High
    Cash efficiency
    meaningful improvement
    medium materiality
    High
    Product companies Adjusted EBITDA
    positive EBITDA
    high materiality
    High
    OAS Adjusted EBITDA
    positive EBITDA
    high materiality
    High
    Ondas Inc. Adjusted EBITDA
    positive EBITDA
    high materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Ondas Autonomous Systems (OAS)
    Strong demand across the segment drove significant revenue growth in Q4 FY25. The segment is expanding its market opportunity across Counter-UAS, ISR, loitering munitions, one-way attack systems, and unmanned ground vehicles, including stratospheric capabilities.
    		$30.1 million629%200%—
    Ondas Networks
    2025 was an important year with the formal adoption of IEEE 802.16 by the AAR. Commercial opportunities are expected to convert in H2 2026, and ACSES radios for Amtrak are in production for H1 deliveries, underpinning long-term value.
    IEEE 802.16 adoption by AAR: formal adoptionAAR intent to adopt .16 across all communications networks: confirmedACSES radios for Amtrak production: in productionACSES radios initial deliveries: expected H1 FY26
    		————

    Operational metrics

    30
    Total revenue
    $30.1 millionup 629% YoY, up 200% QoQ
    Q4 FY25

    At the high end of preliminary guidance, reflecting strong demand across Ondas Autonomous Systems segment.

    Total revenue
    $50.7 millionup 605% YoY
    FY25

    Compared to $7.2 million in FY24, at the high end of previously issued guidance range.

    Organic revenue growth
    63%YoY
    Q4 FY25

    Driven by continued deliveries of Iron Drone and Optimus systems.

    Gross profit
    $12.7 million
    Q4 FY25

    Reflecting favorable product mix and benefits of scaling revenue.

    Gross margin
    42%up from 21% YoY, up from 26% QoQ
    Q4 FY25

    Significant improvement due to favorable product mix and scaling revenue.

    Gross margin
    40%up from 5% YoY
    FY25

    Improved significantly compared to prior year, driven by higher volumes and improved product mix.

    Operating expenses
    $36.1 million
    Q4 FY25

    Driven by investments in personnel and infrastructure to support scaling and acquisition program.

    Cash operating expenses
    $23.6 million
    Q4 FY25

    Summary included in earnings release and presentation appendix.

    Cash operating expenses
    $53 million
    FY25

    Reflecting increased investment in personnel, infrastructure, and integration.

    Net loss
    $101 million
    Q4 FY25

    Primarily driven by an $82.2 million non-cash charge related to warrants.

    Net loss
    $133.4 million
    FY25

    Warrant accounting and other non-cash expenses were major contributors to the year-over-year increase.

    Adjusted EBITDA
    loss of $9.9 millioncompared to $7 million loss in prior year
    Q4 FY25

    Reflects a business scaling rapidly and investing ahead of growth.

    Adjusted EBITDA
    loss of $31.3 millioncompared to $28.5 million loss in 2024
    FY25

    Reflecting increased investment in personnel, infrastructure, and integration to support the next phase of growth.

    Cash, cash equivalents and restricted cash
    $594 millioncompared to $30 million at end of 2024
    FY25

    Ended the year with a strong cash position.

    Pro forma cash balance
    over $1.5 billion
    as of Jan 2026

    Following recent capital raises, providing significant financial flexibility.

    Cash used in operating activities
    $38.7 millioncompared to $33.5 million in 2024
    FY25

    Includes an increase in accounts receivable in line with revenue growth.

    Cash used in investing activities
    $260 million
    FY25

    Majority deployed into acquisitions as part of strategic growth program.

    Cash provided by financing activities
    $863 million
    FY25

    Primarily from equity offerings and proceeds from warrant and option exercises.

    Debt reduction
    $41.7 million
    FY25

    Leaving only a modest debt profile at year-end held by certain subsidiaries.

    Warrant liability
    $489 million
    FY25

    Recorded at year-end, expected to fluctuate based on share price and Black Scholes valuation, resulting in non-cash impacts on GAAP net income.

    Shareholders' equity
    $441 millioncompared to $17 million at end of 2024
    FY25

    Significantly increased, positioning the company with capital flexibility.

    Capital raised
    $1.8 billion
    since June 2025

    Including $1 billion financing completed in January 2026, demonstrating strong investor support.

    Institutional ownership
    33%
    current

    Based on Capital IQ data, with active efforts to broaden the base.

    Acquisition capital deployed
    $550 million
    Q1 FY26

    Deployed across 5 acquisitions (Rotron, Mistral, BIRD, INDO Earth, World View), viewed as an attractive entry point.

    Acquired revenue
    $230 million
    FY26

    Based on current estimates for the 5 acquisitions, expected to contribute to 2026 revenue.

    M&A pipeline potential revenue
    over $500 million
    current

    Pipeline remains robust, with focus on quality and strategic alignment.

    World View stratospheric flights (USAF)
    250 flights
    future

    Stated demand from the U.S. Air Force for stratospheric platforms.

    World View stratospheric flights (Golden Dome)
    hundreds of flights
    future

    Assessment for the Golden Dome architecture.

    World View stratospheric flights (total scale)
    thousands of flights
    future

    Expected operational scale for World View, including commercial applications.

    World View gross margin per flight
    50%
    per flight

    Expected gross margin for World View operations.

    Industry KPIs

    7
    MetricValueDetails
    Capital return$1.8 billionUSD
    Backlog order booksignificantly expanded
    Orders backlog qualitysignificantly expanded
    Product orders order growthstrong demand
    Ai cloud infrastructure orders—
    Revenue mix by product customer type—
    Design wins product cycle transitionsformal adoption

    Orderbook & backlog

    6
    Backlogsignificantly expandedFY25 exit

    Reflecting growing customer demand and market adoption.

    Backlogincrease significantlyQ1 FY26

    Driven by continued order momentum in the core business and addition of backlog from newly acquired companies.

    Mistral programs capturedin excess of $1 billioncurrent

    Expected to generate significant pull-through revenue for Ondas.

    Mistral backlog contributionmeaningful backlogupon closing

    Expected upon closing in Q2 FY26.

    BIRD backlog contributionmeaningful backlogcurrent

    Contributes to more predictable and recurring revenue streams.

    INDO Earth backlog contributionnear-term revenue backlogcurrent

    Establishes a foundation for long-term growth in autonomous ground systems.

    Deals & partnerships

    7
    HeidelbergFormed ONBERG Autonomous Systems to provide local manufacturing, engineering, and life cycle support for defense and security solutions in Europe.

    ONBERG addresses European market needs for localized defense capabilities, particularly in Germany and Ukraine. Combines Ondas' systems-of-systems expertise with Heidelberg's local infrastructure and relationships.

    World ViewAcquisition of World View to integrate persistent stratospheric sensing capabilities into Ondas' multi-domain ISR platform.

    World View brings Stratollite platforms for persistent sensing in the stratosphere, filling a gap between UAVs and satellites. Ryan Hartman, President and CEO of World View, will join Ondas leadership.

    PalantirStrategic partnership to integrate Palantir's AIP software stack (Warp Speed, Foundry, Maven) into Ondas' multi-domain ISR platform for real-time data fusion and decision-making.

    Enables a software-defined ISR architecture, creating a unified operational system for sensing, data, and decision-making. Includes active commercial partnership for market development and program opportunities.

    MistralAcquisition to accelerate U.S. market expansion, enabling Ondas to operate as a prime contractor and adding critical manufacturing and program execution capabilities.

    Mistral brings market experience and customer access across UAVs, loitering munitions, and ground robotics, and expertise in localizing Israeli-developed platforms for U.S. requirements.

    Rotron AerospaceAcquisition to expand aerial capabilities, adding long-range UAV platforms, autonomous strike systems, and advanced propulsion technologies.

    Rotron provides platforms like Talend, Defender, and Stratos, extending Ondas' platform beyond ISR into a more complete strike and effector layer. Also provides a strong local presence in the UK, competing for programs like Project Break Stop.

    BIRD AerosystemsAcquisition to add an airborne protection layer with advanced ISR and counter-UAS capabilities, designed to protect manned and unmanned systems.

    BIRD's technologies include laser-based DIRCM systems for detecting and defeating missile threats. Brings access to long-cycle program of record defense budgets.

    INDO EarthAcquisition to expand ground system strategy into military engineering vehicles, providing entry into large-scale defense procurement programs.

    Complements aerial and ISR capabilities, with future opportunities to integrate autonomy and advanced technologies into these platforms.

    Risks & headwinds

    2
    Non-cash warrant revaluation chargeQ4 FY25 and ongoing

    $82.2 million charge in Q4 FY25

    Mitigation: Management advises investors to focus on underlying operating performance, as this is an accounting-driven charge with no impact on cash, operations, or underlying economics. It will introduce variability in reported earnings.

    Increased cash usageH1 FY26

    higher cash usage

    Mitigation: Reflects continued investment ahead of growth, viewed as essential for enabling the next phase of growth. Expected to drive meaningful operating leverage as revenue scales, with cash efficiency improving in H2 FY26.

    What to watch in Q1 FY26

    5

    ONBERG revenue contribution

    coming months
    Currentnot yet included in outlook
    Targetmeaningful growth beyond existing targets

    Why it matters

    ONBERG is a key component of Ondas' European strategy, localizing its platform and expanding its addressable market in a fast-growing defense market.

    As ONBERG becomes operational in the coming months⏳, we expect it to drive meaningful growth beyond our existing targets.

    Q&A highlights

    7

    How has the increasing conflict in the Middle East affected business progression, order flow, or interest?

    The conflict is driving more activity, demand, RFPs, and urgency. Ondas is seeing strong demand for its proven and deployed ISR and counter-UAS systems, which are critical capabilities in the current operational environment. This is viewed as a long-term dynamic, with increased government and defense budgets expected.

    “We believe we have the right products at the right time through our tech companies we are well positioned in both ISR and counter UAS, which are the 2 of the most critical capabilities in today's operational environment.”

    asked by Austin Bohlig · answered by Meir Kliner

    2 min read6 chapters

    Detailed Narrative

    01

    Strategic Transformation and Operating Platform

    Ondas is undergoing a significant transformation, evolving into a scaled multi-domain autonomy platform. This shift is driven by a strategic growth plan focused on acquisitions and the build-out of a robust operating platform designed for global deployment and long-term growth. The company emphasizes that its strategy is translating into execution, building a platform that drives financial outcomes, positioning it for significant upside in 2026 and beyond.

    02

    ONBERG Joint Venture for European Expansion

    Ondas introduced ONBERG, a joint venture with Heidelberg, as a key component of its European strategy. This JV provides local manufacturing, engineering, and life cycle support, meeting European sovereignty requirements for defense and security solutions. Ondas holds a 51% controlling interest, and ONBERG is expected to drive meaningful growth beyond existing targets as it becomes operational, particularly in Germany and Ukraine where demand for autonomous systems is immediate.

    03

    World View Acquisition and Palantir Partnership

    The acquisition of World View brings persistent stratospheric sensing capabilities, expanding Ondas' systems-of-systems architecture into a multi-domain ISR platform. This is integrated with Palantir's AIP software stack, enabling a software-defined ISR architecture where data from stratospheric, aerial, and ground systems is fused in real-time. This partnership is expected to be a meaningful driver of upside, accelerating penetration into the layered ISR market.

    04

    Programmatic M&A and Accretion Model

    Ondas employs a disciplined, programmatic M&A strategy to acquire strategically aligned and financially accretive assets. The company deployed approximately $550 million of capital for five recent acquisitions (Rotron, Mistral, BIRD, INDO Earth, World View), which are expected to generate $230 million in revenue in 2026. This model aims for a 'growth double dip,' where acquired businesses benefit from market growth and accelerated growth as part of the Ondas platform, driving compounding value creation.

    05

    Ondas Networks Progress and Long-Term Value

    2025 was a significant year for Ondas Networks with the formal adoption of its IEEE 802.16 technology by the Association of American Railroads (AAR) as the communications protocol for next-generation rail. The AAR's intent to adopt .16 across all networks confirms Ondas Networks' foundational role. Commercial opportunities are expected to convert in H2 2026, with ACSES radios for Amtrak in production for H1 deliveries, reinforcing long-term value.

    06

    Expanded Market Opportunity and Technology Verticals

    Ondas Autonomous Systems has transformed its market opportunity, expanding from ISR and Counter-UAS to include loitering munitions, one-way attack systems, and unmanned ground vehicles, with the addition of stratospheric capabilities. This broad multi-domain platform positions Ondas to compete across fast-growing segments in the global defense market, integrating sensors, effectors, and autonomous systems through a common command and control layer.

    AI-generated summary of the company’s earnings call. Not investment advice.