ONDS up 51% in six months as it scales autonomous drone systems, raises revenue targets and pursues M&A, but losses and valuation risks loom.
Ondas Holdings ( NASDAQ:ONDS ) delivered a promising start to 2026 by reporting preliminary fourth-quarter and full-year 2025 financial results that topped the company's own guidance.
ONDS lands $6M in counter-drone orders from Middle East defense customers, deploying cyber-RF systems that detect, track and take control of hostile drones.
Preliminary Q4 2025 revenue of $27–29 million surged nearly sixfold year-over-year and beat internal targets by 51%. Full-year 2025 revenue of $47.6–49.6 million grew approximately sixfold versus 2024 and exceeded prior expectations by 23%. Backlog entering 2026 surpassed $65 million, nearly triple Q3 levels, with broader customer diversification and pipeline maturity.
Defense stocks are generally surging Monday morning as investors react to U.S. military strikes on Iran that began over the weekend.
Ondas and Draganfly ride the booming drone demand as military deals, rising backlogs and bold expansion plans reshape their growth outlooks.
During the first half of February, the stock market witnessed a significant move in the defense technology sector. Shares of Ondas Inc. NASDAQ: ONDS rose more than 15%, breaking through the psychological resistance level of $11 per share.
ONDS lands a multi-million-dollar NATO order for its Iron Drone Raider, validating its counter-UAS tech in live airport operations.
Ondas Inc. is transitioning from R&D to early commercial traction, with recent funding extending its runway and supporting a risk-aware Buy rating. Ondas's integrated multi-layer defense platform and rapid backlog/revenue upgrades signal strong early traction and a developing moat in counter-drone and robotics markets. Valuation appears high at ~21x 2026 EV/revenue, but surging revenue targets and backlog growth could quickly normalize multiples if momentum persists.
Ondas Inc. is rated Strong Buy, leveraging $1.5B pro forma liquidity and trading at a deep discount to its $16.45/share capital raise valuation. ONDS's investment thesis centers on its capital-driven arbitrage, acquiring and industrializing proven defense tech for U.S. and allied mass drone programs. The company's System of Systems integration strategy creates high switching costs and recurring revenue, but faces execution risk from merging five tech stacks.
Ondas slides about 22% in a month, even as backlog surged, 2026 revenue targets are raised and a $1.5 billion cash pile backs aggressive M&A.
ONDS lands a strategic APAC UAS defense contract via Airobotics, with phased execution starting this year and potential follow-on orders.