Ondas Holdings Inc. (NASDAQ:ONDS) shares fell 4% in Thursday premarket trading after the defence technology company reported a wider-than-expected second-quarter loss. The earnings miss overshadowed record revenue that comfortably exceeded Wall Street forecasts, while management also raised its full-year 2026 sales outlook following strong bookings growth.
Ondas reports wider-than-expected Q2 loss
Ondas posted an adjusted loss of $0.19 per share for the second quarter, missing analyst expectations for a loss of $0.10 per share.
Revenue presented a much stronger picture, reaching a company record of $83.8 million and exceeding the consensus forecast of $68.54 million.
Sales increased 1,229% from $6.3 million in the same quarter last year, reflecting the rapid expansion of the company’s operations.
Sequential growth was also substantial, with revenue climbing 67% from $50.1 million during the first quarter.
“Our team at Ondas is performing at a high level, as evidenced by our record second-quarter results, headlined by strong revenue growth and continued bookings momentum across our business,” said Eric Brock, Chairman and CEO of Ondas. “We expect to sustain this momentum and deliver another significant revenue ramp during the second half of 2026.”
Full-year revenue guidance moves higher
Following the strong top-line performance and continued order momentum, Ondas increased its revenue forecast for the full year.
The company now expects 2026 revenue of between $525 million and $550 million.
At $537.5 million, the midpoint of the new range is above the analyst consensus forecast of $525 million.
Ondas is also projecting another substantial increase in sales during the third quarter, forecasting revenue of $140 million to $155 million.
The guidance indicates that management expects the company’s rapid expansion to continue through the second half of 2026.
Order growth pushes backlog above $600 million
Bookings remained another major source of momentum during the quarter.
Ondas secured $175 million of new orders during the second quarter and reported a further $105 million in orders during the third quarter to date.
Backlog stood at approximately $613 million as of June 30, 2026, providing the company with significant visibility into future revenue.
Including the DZYNE and Cyberhawk acquisitions completed during the third quarter, pro forma backlog reached approximately $757 million.
The growing order book provides additional support for management’s expectations of a significant revenue ramp during the remainder of the year.
Adjusted EBITDA loss widens sharply
Despite the rapid increase in revenue, Ondas continued to report substantial losses as expenses increased alongside the expansion of the business.
The company’s adjusted EBITDA loss widened to $50.6 million during the second quarter from a loss of $10.9 million in the first quarter.
Operating expenses reached $199.1 million, with the total affected by $105.8 million of non-cash expenses.
Those non-cash costs included $67.6 million of stock-based compensation.
The scale of the expense increase highlights the significant investment being made to support Ondas’ growth, but also helps explain why investors focused on the earnings miss despite the substantial revenue beat.
Ondas ends quarter with $1.4 billion in liquidity
Ondas finished the second quarter with $1.4 billion across cash, cash equivalents, restricted cash and short-term investments.
The sizeable liquidity position provides financial resources as the company integrates acquisitions, executes its growing backlog and invests in further expansion.
While the 4% premarket decline reflected concerns surrounding the wider-than-expected loss and rising expenses, Ondas delivered substantial top-line growth during the quarter. Record revenue, a growing backlog and higher full-year guidance indicate continued commercial momentum, leaving investors focused on whether that expansion can ultimately translate into improving profitability.