Ondas Holdings reported GAAP revenue of $167.5 million for the third quarter, marking a 1,559% increase from $10.1 million in the same period last year.
Quarterly Revenue Doubled Amid Rising Net Loss
The company announced that the quarterly revenue doubled from the second quarter’s $83.8 million, setting a company record. The GAAP diluted net loss per share widened to $0.10, compared with a loss of $0.03 a year earlier.
Pro forma organic growth reached 64% year-over-year, assuming acquired businesses were held during the prior period, according to the company. Strong demand for counter-unmanned aircraft systems drove the results alongside gains in precision strike and land systems.
Sentinel Orders Drive New Bookings and Backlog Growth
New bookings totaled $214 million during the quarter, with the Sentinel division accounting for $100 million of that total. Sentinel orders included $53.7 million in ULTRA follow-on orders and $21.7 million in IonStrike orders.
The order backlog reached $835 million, representing a 36% increase from the previous quarter.
Gross Margin Fell as Operating Expenses Increased
The GAAP gross margin fell to 21.8%, dropping from 43.1% in the second quarter and 25.8% in the prior year’s third quarter. The company attributed the decline to amortization of acquired intangible assets, inventory step-ups from acquisition accounting, and early-stage production inefficiencies.
GAAP operating expenses jumped to $226 million, driven by $88.1 million in non-cash expenses, including $57.8 million in stock-based compensation. Research and development expenses reached $61.6 million, up $30 million from the prior quarter.
Non-GAAP adjusted EBITDA stood at a loss of $59.7 million, widening the loss compared with a deficit of $8.1 million in the same period last year and a loss of $46.2 million in the previous quarter.
Raised Annual Targets for 2026 and 2027
Ondas raised its full-year 2026 revenue target to at least $550 million, up from a previous range of $525 million to $550 million. The company also issued its first 2027 revenue target of at least $1.1 billion.
Total assets increased to $4.0278 billion from $1.1328 billion last year, as acquisitions raised goodwill to $1.501 billion and intangible assets to $1.0254 billion. According to analyst consensus figures cited by Choisestock, revenue is projected to reach $1.01262 billion in 2027, representing an 88.66% increase, and grow to $1.35223 billion in 2028, marking a 33.54% increase.
“The benefits of our integrated operating platform are scaling, and our next phase is about executing on customer commitments, integrating capabilities, converting demand into sustainable growth, and driving profitability,” said Eric Brock, chairman and representative, told the company release.
