Ondas Hits Early EBITDA Profitability, Q1 Gross Margin Jumps 49%, Backlog Surges to $457M
Ondas achieved adjusted EBITDA profitability across standalone product companies six months early, driving gross margin to 49% in Q1 2026 versus 35% last year on $50.1 million revenue, a tenfold year-over-year increase. Pro forma backlog rose to $457 million and cash reserves of $1.48 billion support raised 2026 revenue guidance to $390 million.
1. Q1 Financial Results and Operating Metrics
Ondas reported Q1 2026 revenue of $50.1 million, more than ten times its year-ago figure, while registering an operating loss of $42.7 million, an operating cash burn of $51.3 million and an EPS of –$0.07 versus consensus of –$0.06.
2. Early Segment EBITDA Profitability
The company’s standalone product divisions achieved adjusted EBITDA profitability six months ahead of schedule, fueling an expansion in gross margin to 49% in Q1 2026 from 35% in Q1 2025, driven by a stronger product mix and pricing power in its autonomous systems and defense technology segments.
3. Backlog Growth and Raised Guidance
Pro forma backlog jumped to $457 million from $68.3 million at the end of 2025 following recent acquisitions, prompting management to increase full-year 2026 revenue guidance to at least $390 million.
4. Strong Balance Sheet and Valuation Upside
Ondas holds $1.48 billion in cash, equivalents and short-term investments, providing over five quarters of runway at current burn rates and reducing dilution risk, while its stock remains priced on near-term losses despite underlying profitability gains.