Ondas reported third-quarter 2026 revenue of $167.5 million on November 12, 2026, a 16-fold increase from $10.1 million in the same period last year. The company raised its full-year 2026 revenue target to at least $550 million and set a 2027 target of at least $1.1 billion, excluding any future acquisitions, as its counter-drone and defense drone businesses accelerated.
What's driving the growth?
Ondas's counter-drone subsidiary Sentrycs grew 263% on a pro forma basis during the quarter, while the company booked $100 million in Sentinel platform orders, including $53.7 million in follow-on orders for its ULTRA system and $21.7 million for its IonStrike systems. The company also landed a follow-on US Army task order tied to its Lethal Unmanned Systems contract and was selected for an Israeli Ministry of Defense tactical attack drone program. Pro forma organic revenue, which strips out acquisition effects, still grew 64% year over year, indicating the underlying business is expanding independent of deal-making.
How big is the order backlog?
Ondas booked $214 million in new orders during the quarter, pushing its order backlog up 36% from the prior quarter to $835 million. The company held roughly $820 million in cash, cash equivalents and short-term investments as of September 30, giving it room to keep acquiring smaller drone and sensing companies, a strategy that has already brought DZYNE Technologies, Cyberhawk, Gate/Bron, Ottopia, Insignito and Caribou Labs into the Ondas portfolio.
Is the company actually profitable?
Not yet. Gross margin slipped to 21.8% in Q3 2026 from 25.8% a year earlier, and the operating loss widened sharply to $189.5 million from $15.5 million, while net loss grew to $64.7 million from $7.5 million. Management moved its target for adjusted EBITDA profitability forward to Q3 2027 from Q4 2027, betting that scale from the current order backlog will offset integration costs from its string of acquisitions faster than previously expected.
What does this mean for the counter-drone market?
Ondas's results land alongside a broader defense-tech earnings season in which rivals AeroVironment and Red Cat also reported results in the same week, with Ondas's stock falling 5% despite the record revenue and raised guidance, suggesting investors are weighing the widening losses against the top-line growth. The scale of Ondas's order book, combined with new contracts spanning US Army, Israeli Ministry of Defense and commercial inspection work, signals that demand for both strike-capable drones and counter-drone defense is still climbing heading into 2027.