Ondas Posts 1,079% Q1 Revenue Surge to $50.1M, Backlog $457M
ONDS•Ondas delivered Q1 revenue of $50.1 million, a 1,079% year-over-year increase, while pro forma backlog climbed to $457 million and Q2-to-date orders exceeded $110 million. Gross margin expanded to 49% from 35% as higher-margin software sales complemented hardware revenues.
1. Q1 Financial Performance
Ondas reported first-quarter revenue of $50.1 million, up 1,079% from $4.3 million in Q1 2025, reflecting rapid adoption of its wireless networking and drone communication systems. This record jump matched the company’s entire fiscal 2025 revenue in a single quarter.
2. Strong Backlog and Q2 Orders
Pro forma backlog rose to $457 million by quarter end, driven by multi-year agreements across utilities, public safety and industrial automation sectors. Q2-to-date orders have already surpassed $110 million, underscoring robust demand and revenue visibility for the coming quarters.
3. Margin Expansion
Gross margin widened to 49% from 35% year-over-year as software-driven revenue streams increasingly complemented hardware sales, reducing costs and improving operating leverage. Management highlighted the shift toward higher-margin service contracts as a key profitability driver.
4. Market Context and Growth Drivers
The broader Drones-as-a-Service market is projected to grow to $8.2 billion by 2026 from $6.3 billion in 2024, fueled by AI integration, BVLOS approvals and automation demand. Ondas’ wireless network platforms and drone communication solutions position it to capture share in this expanding industry.
