Ondas Stock Takes Flight On Drone Demand

Ondas’ first-quarter report hit the runway and fired up the afterburners, as drone demand powered a surge in revenue and backlog. The company reported revenue of $50.1 million, up 1,065% from a year earlier, with demand for autonomous aerial and ground systems, counter-drone technology, sensors, and defense-related platforms accelerating across its portfolio. Shares rose nearly 30% in Thursday afternoon trading, as Wall Street found a small-cap defense-tech name with a much bigger revenue profile than it had a year ago.

The revenue surge got Ondas airborne, but the backlog showed the stock wasn't just flying on fumes. Ondas said pro forma backlog reached $457 million, up from $68.3 million at the end of 2025, supported by order activity and recently acquired companies. That turned the quarter from a big headline number into a broader demand signal. Right now, selling drones into a hot market is big business, but Ondas is chasing the whole control tower. The company is building a broader autonomous-systems platform for defense, homeland security, and public safety agencies that need eyes in the sky, tools on the ground, and protection against hostile drones. Critical infrastructure and industrial customers add another lane of demand, using sensors, robotics, and mission technology to watch over assets that are hard to reach and even harder to leave exposed. That gives the backlog some staying power — Ondas is not just riding a drone craze, it is selling into security, automation, and infrastructure problems that keep showing up.

The order book gave Ondas a runway, and the gross margin improvement showed the company is starting to capture value from the climb. Gross profit rose to $24.7 million, while gross margin improved to 49%, up from 35% a year earlier. Ondas also raised its full-year 2026 revenue target to at least $390 million, which would represent roughly 670% growth from 2025. That made the quarter about scale, not just speed — Ondas is growing quickly, but it also showed early signs that a bigger revenue base could come with healthier economics.

For all the demand showing up in revenue and backlog, Ondas is still spending heavily to build the platform. Operating expenses rose to $67.3 million, and the company posted an operating loss of $42.7 million. Adjusted EBITDA loss also widened to $10.9 million, even though Ondas said its product companies reached adjusted EBITDA profitability during the quarter. That leaves the usual small-cap growth trade — only this time with propellers and little blinking lights. The demand is there, the backlog is swelling, and the revenue ramp is off the chart, but Ondas still has to prove it can turn a fast-expanding drone platform into a business that can fly on its own power.

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