Ondas Holdings: The Tightrope Act Between a $757 Million Backlog and Deepening Losses
Published on 08/16/2026 at 05:30 | Redaktion boerse-global.de
Few stocks capture the current defense-tech zeitgeist quite like Ondas Holdings. In a single week, the company announced record quarterly revenue, secured multiple military contracts, and closed a major acquisition — yet the market's reaction was tellingly muted at first. Shares dipped before recovering to close at €7.98 on Friday, up 3.2 percent and roughly 11 percent above the 50-day moving average.
The reason for the initial hesitation is easy to spot in the numbers. Ondas reported a net loss of $89.7 million in the second quarter, a stark reversal from the $361.2 million profit booked in Q1. Earnings per share missed analyst expectations by a wide margin. On an operating basis, the company posted a $162.9 million loss, with adjusted EBITDA coming in at negative $50.6 million. Gross profit reached $36.1 million, or $42.3 million on an adjusted basis.
That tension — between explosive revenue growth and persistent red ink — defines the Ondas investment case right now.
The Order Book Does the Talking
Revenue for the quarter hit $83.8 million, up 67 percent sequentially and more than thirteenfold year over year. Management raised its full-year 2026 guidance to $525–550 million, representing organic growth north of 30 percent.
The order pipeline tells an even more ambitious story. New bookings of $175 million arrived in Q2, followed by another $105 million early in Q3. The backlog stood at $613 million as of June 30, swelling to roughly $757 million on a pro forma basis once the DZYNE Technologies and Cyberhawk acquisitions are included — a 66 percent jump from the prior quarter. The company's two-year strategic pipeline now exceeds $11 billion.
Should investors sell immediately? Or is it worth buying Ondas Holdings?
Recent contract wins span both military and civilian applications. The Israeli Ministry of Defense awarded a multi-million-dollar contract under its "Digital Bat" program for low-cost tactical attack drones. Ondas subsidiary Mistral secured a U.S. Army order worth more than $50 million under the $982 million IDIQ program for lethal unmanned systems. The Air Force Research Laboratory added roughly $6 million for the autonomous delivery drone system LongRange Grasshopper. On the civilian side, subsidiary Sentrycs was selected to provide counter-drone technology for Jacksonville Jaguars home games at EverBank Stadium — a reminder that airspace security is no longer just a battlefield concern.
A Closed Deal and a New Executive Team
The Cyberhawk acquisition closed on August 10, bringing a drone-based inspection and AI platform for critical infrastructure operators under the Ondas umbrella. The price: $118.2 million in cash plus 581,732 shares of Ondas stock. The transaction also included 1,601,593 restricted stock units and options covering 1,290,000 shares at $9.11 per share for 47 new employees.
Earlier in August, the board adopted an inducement plan reserving 20 million shares for equity and cash compensation, a move that doesn't require shareholder approval under Nasdaq Rule 5635(c)(4). Such plans typically facilitate hiring during acquisition-driven growth phases.
The executive suite is also changing. David Barnea, former director of the Mossad, took over as Global President and Chairman of Ondas Defense in late July — a hire that signals serious intent in the global defense arena. Meanwhile, The Manufacturers Life Insurance Company has increased its stake, and Roth Capital initiated coverage on August 10 with a buy rating and a $13.00 price target. Other analysts have targets reaching as high as $19, with several firms reaffirming positive views recently.
Insider Activity and the Volatility Question
Insider transactions deserve attention, though not necessarily alarm. Several executives and directors exercised restricted stock units on August 14 and sold shares at $9.30 — a pattern that often accompanies rising stock prices.
The share price itself remains a study in volatility. The stock trades roughly 39 percent below its 52-week high of €13.02, reached in January, but stands 188 percent above the €2.77 low from August of last year. Over twelve months, the gain totals 137 percent. The annualized 30-day volatility sits at a striking 90 percent.
That kind of swing factor reflects the fundamental question hanging over Ondas: can the order book outrun the losses? The company has yet to prove it can translate its growing pipeline into sustained profitability. For now, investors are betting that autonomous systems become the next major layer of defense and infrastructure — and that Ondas will be among the companies defining that layer rather than merely supplying it.
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