Ondas Holdings Reports Robust Growth and Strategic Advances

Ondas Holdings, Inc. ((ONDS)) has held its Q2 earnings call. Read on for the main highlights of the call.

Ondas Holdings, Inc. recently held its earnings call, revealing a positive sentiment driven by strong revenue growth and strategic advancements. The company showcased significant achievements in expanding into defense and homeland security markets. However, challenges such as operating expenses, margin volatility, and limited U.S. market penetration were also acknowledged.

Record Quarterly Revenue

Ondas Holdings, Inc. reported a record quarterly revenue of $6.3 million, marking a more than six-fold increase over the same period last year and a 50% sequential growth. This impressive revenue surge highlights the company’s robust performance and strategic execution.

Strong Backlog and Order Growth

The company secured over $39 million in orders over the past twelve months, with a backlog that grew to $22 million at the end of Q2 from $10 million at the end of 2024. This strong order growth underscores Ondas’ expanding market presence and customer demand.

Cash and Debt Position

Ondas ended Q2 with $68.6 million in cash and successfully retired the remaining balance of convertible notes through equity conversion, leaving no holding company debt outstanding. This solid financial position provides a strong foundation for future growth.

Significant Milestones in Defense and Homeland Security

The company expanded its operations in defense and homeland security across Europe, the Middle East, and the U.S., achieving major orders and successful pilots, including a NATO deployment. These milestones reflect Ondas’ strategic focus and capabilities in these critical sectors.

Strategic Partnerships and Expansion

Ondas formed strategic partnerships with companies like Rift Dynamics and Detroit Manufacturing Systems, enhancing U.S. government adoption and supply chain resilience. These collaborations are expected to bolster Ondas’ market position and operational capabilities.

Technological Advancements

The IEEE ratified the 802.16T wireless standard pioneered by Ondas, contributing to broader acceptance in the North American rail industry. This technological advancement positions Ondas as a leader in wireless communication standards.

Operating Expenses and Losses

Operating expenses increased to $12.6 million in Q2 2025 from $8.1 million in Q2 2024, resulting in an operating loss of $9.2 million. This rise in expenses highlights the financial challenges the company faces amid its growth efforts.

Volatility in Gross Margins

Ondas experiences volatility in gross margins quarter-to-quarter due to the early stages of platform adoption and shifts in revenue mix. This variability is a challenge the company aims to manage as it scales its operations.

Limited U.S. Market Penetration

Despite significant interest, Ondas faces regulatory and operational challenges in deploying drone technologies across U.S. public safety and defense sectors. Overcoming these hurdles is crucial for expanding its domestic market footprint.

Forward-Looking Guidance

CEO Eric Brock emphasized the company’s strong performance and future outlook during the earnings call. Ondas reaffirmed its full-year revenue target of at least $25 million for 2025, with more than $20 million expected from Ondas Autonomous Systems (OAS). The expanding customer order pipeline and a backlog increase to $22 million by the end of Q2 highlight the company’s growth trajectory. Ondas also plans to close at least two strategic acquisitions in 2025 to enhance its market presence.

In conclusion, Ondas Holdings, Inc.’s earnings call reflected a positive sentiment with strong revenue growth and strategic advancements. While facing challenges such as operating expenses and market penetration, the company remains optimistic about its future prospects, backed by a solid financial position and strategic initiatives.