Key Points
Third-quarter revenue reached $167.5 million, up 64% organically year over year.
Order backlog expanded 36% sequentially to $835 million at quarter end.
Management raised its full-year 2026 revenue target to at least $550 million.
On its third quarter of 2026 earnings call, held on Nov. 12, 2026, Ondas (NASDAQ:ONDS) reported record third-quarter revenue of $167.5 million. Management raised its full-year 2026 revenue target to at least $550 million. The company is expanding its production capacity to capture a growing customer order backlog across global defense markets. Three takeaways from the call stand out for long-term investors.
1. Organic Growth Is Accelerating Alongside Strategic Acquisitions
Management expanded the Ondas platform by acquiring complementary defense technology firms. The underlying portfolio delivered high organic revenue expansion alongside those additions as international customer adoption gathered momentum.
Organic growth at Ondas was 64% in Q3 on an apples-to-apples basis with the prior year. We believe very few companies in our sector are growing at this rate.
-- Eric Brock, Chairman and Chief Executive Officer
2. Core Unmanned Platforms Are Opening Large Market Opportunities
The ULTRA platform, an unmanned intelligence, surveillance, and reconnaissance (ISR) system, offers defense customers significantly longer flight times at a fraction of legacy platform costs. That economic advantage allows Ondas to target high-margin recurring service revenues as military fleets expand.
ULTRA addresses these challenges with approximately 3x the flight endurance at just 1/5 the cost of traditional platforms. Again, 3x the flight endurance at 1/5 the cost.
-- Eric Brock, Chairman and Chief Executive Officer
3. Operating Leverage Is Accelerating the Path to Profitability
Revenue scale is beginning to outpace operating expenses across the business units. That operational leverage prompted management to pull forward its target for companywide adjusted earnings before interest, taxes, depreciation, and amortization (adjusted EBITDA) breakeven.
We have pulled forward our expectation for adjusted EBITDA breakeven on a companywide basis to Q3 2027 from our prior assumption of Q4 2027 based on our expectations for revenue, gross profit and expense growth.
-- Neil Laird, Chief Financial Officer
Looking Ahead
Demand for autonomous defense systems is accelerating across global security markets, and management is showing clear satisfaction with the business trajectory. Ondas maintains structural advantages through in-house airframe manufacturing, proprietary electronic fuzing technology, and a diversified international sales channel. Management is prioritizing supply chain scaling and cash conversion efficiency to capture long-term market leadership.
We are targeting full year 2026 revenue of at least $550 million, including more than $250 million in the fourth quarter.
-- Eric Brock, Chairman and Chief Executive Officer
Expanding production capacity across aerial and ground platforms positions the company to convert its growing order pipeline into multiyear service and hardware streams. Management expects broad-based organic expansion to power its next phase of financial growth.
Against that backdrop, we are initiating a 2027 revenue target of at least $1.1 billion. That outlook does not include potential acquisitions and assumes organic growth of more than 40%.
-- Eric Brock, Chairman and Chief Executive Officer
The Motley Fool has positions in and recommends Ondas. The Motley Fool has a disclosure policy.