Ondas said it earned $50 million in first-quarter revenue, a tenfold increase from a year earlier, and that its cash position had swelled to $1.5 billion — news that sent onds stock sharply higher.
The company reported a gross profit margin of 49% in the quarter, up from 35% a year ago and 42% in the prior quarter, and said its backlog of orders rose to more than $450 million.
Those numbers were followed this week by a plan to buy Rosh Ha’ayin-based Omnisys for $200 million and last week’s disclosure that the company held over $1 billion in cash at the end of the first quarter. Taken together, the results and the deal flow underpinned a market value that has ballooned in recent reporting: the company was said to be worth about $5.3 billion in the report that tracked a roughly 944% gain over the past year.
Ondas described itself in a corporate statement as "a leading provider of autonomous systems and private wireless solutions through its business units Ondas Autonomous Systems (OAS), Ondas Capital, and Ondas Networks." The release also touted "a powerful combination of aerial intelligence and next-generation connectivity to enhance security, operational efficiency, and data-driven decision-making across essential industries."
The raw scale of the turnaround is stark. Less than three years ago the company’s market cap was just $50 million after a 2024 delisting in Tel Aviv left it listed only on Nasdaq; more recent coverage shows its share price had risen by over 1,000% in a little over two years. Yet the stock has not tracked in a straight line: one report put the company down about 30% since January even as longer-term gains mounted.
Operationally, Ondas has been busy expanding by acquisition and contract wins. In December 2025 it won a government award to build a border-protection system featuring thousands of drones, and it announced a $10 million order as part of a $50 million award for a border demining project along the Israel‑Syria border. The company’s stated expansion strategy has included buying Israeli firms: it paid $15 million for Airobotics in 2022 and now is adding Omnisys for $200 million.
Investors who have cheered that growth face a different set of metrics now. Ondas’s recent price-to-sales ratio stood at 36.3, well above its five‑year average of 10.6. The company’s market-cap volatility, enormous cash build and explosive revenue growth all feed the same question: is the current valuation pricing in execution that must materialize over several years?
Management has set an explicit target: adjusted EBITDA profitability by the first quarter of 2028. That timeline is both a roadmap and a tether for the stock. On the one hand, the company reported a near‑term model with gross margins rising to 49% and a backlog north of $450 million; on the other, profitability for a company pursuing heavy, non‑organic growth and recent multi‑hundred‑million‑dollar acquisitions remains a path with many forks.
The tension is visible in the numbers. Cash rose from $66 million at the end of 2025 to $1.5 billion in the first quarter, an enormous increase that accompanied a sharp pickup in revenue — tenfold year over year and 66% higher than the prior quarter. Yet price-to-sales at 36.3 implies a high bar for future sales and margin expansion, and management’s profitability target is still nearly two years out.
Ondas has also been forming strategic technology relationships — earlier this year it announced a partnership with Palantir — and it has moved into defense-adjacent businesses including drone interception, heavy engineering and mine detection and clearance. Those moves help explain the backlog and the government contract wins, but they also expand the company’s capital needs and execution complexity.
The most consequential question now is whether Ondas can convert its enlarged cash position, its order backlog and a string of acquisitions into steady, predictable earnings before its stretched valuation compresses. If the company hits adjusted EBITDA profitability by Q1 2028 on the trajectory its recent quarter suggests, the market will likely view the current spike in onds stock as the start of a foundational rerating; if it does not, the stock could give back gains just as quickly as they arrived.
