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Ondas Holdings, Inc. (ONDS)
:ONDS

Ondas Holdings (ONDS) AI Stock Analysis

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Ondas Holdings

(NASDAQ:ONDS)

Rating:58Neutral
Price Target:
$1.50
▼(-1.32%Downside)
Ondas Holdings' overall stock score is primarily influenced by its challenging financial performance and valuation, reflecting the company's ongoing profitability and leverage issues. Despite these concerns, positive technical trends and a favorable earnings call outlook, driven by revenue growth and strategic partnerships, provide some optimism. However, the risk of Nasdaq delisting remains a significant concern.
Positive Factors
Geopolitical Influence
Increasing NATO member military spending amid geopolitical conflicts is a positive for ONDS's proven Iron Drone.
Revenue Growth
Management reiterated a 2025 revenue target of at least $25M, up 248%, driven almost entirely by Ondas Autonomous Systems – the drone business.
Strategic Partnerships
ONDS announced a partnership with Palantir that aims to use its AI software for operations optimization and eventual expansion of platform capabilities.
Negative Factors
Debt and Dilution
Weakness in shares from year-to-date created greater dilution from debt conversions than previously modeled.
Revenue Expectations
Management introduced a 2025 revenue target of $25M, below consensus of $33.4M.

Ondas Holdings (ONDS) vs. SPDR S&P 500 ETF (SPY)

Ondas Holdings Business Overview & Revenue Model

Company DescriptionOndas Holdings Inc., through its subsidiaries, provides private wireless, drone, and automated data solutions. The company operates in two segments, Ondas Networks and American Robotics. The company designs, develops, manufactures, sells, and supports FullMAX, a software defined radio (SDR) platform for wide-area broadband networks. Its FullMAX SDR platform enables secure and reliable industrial-grade connectivity for truly mission-critical applications. The company also offers Scout Drone, an AI-powered drone with imaging payloads; the ScoutBase, a ruggedized base station for housing, charging, data processing, and cloud transfer; and ScoutView, an American robotics analytics and user interface software package. It serves users in rail, energy, mining, agriculture, and critical infrastructure markets in the United States and internationally. The company is headquartered in Waltham, Massachusetts.
How the Company Makes MoneyOndas Holdings makes money by providing its FullMAX wireless communication platform to industrial and government clients. The company's revenue is generated through the sale of network equipment, software licenses, and associated maintenance and support services. Ondas also engages in strategic partnerships and collaborations with key industry players to expand its market reach and enhance its product offerings. Additionally, the company may derive income from custom development projects and consulting services tailored to specific client needs.

Ondas Holdings Earnings Call Summary

Earnings Call Date:May 15, 2025
(Q1-2025)
|
% Change Since: 72.73%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment with strong revenue growth, new orders, and strategic partnerships. However, the company faces challenges with operating losses, cash flow management, and potential dilution from debt conversions. The positive aspects, particularly the growth and expansion opportunities, outweigh the negatives.
Q1-2025 Updates
Positive Updates
Significant Revenue Growth
Revenues increased over 500% to $4.2 million in Q1 2025 from $0.6 million in Q1 2024, driven primarily by OAS with a 600% increase in revenue.
New Orders and Expanding Backlog
Ondas secured more than $9 million of additional orders year-to-date, further growing the backlog to $16.8 million.
Iron Drone and Optimus Expansion
Ondas announced a new $1.7 million order for Iron Drone and expects further growth and deployments in various global regions, especially for defense and homeland security.
Debt Reduction
Outstanding convertible debt was reduced from $44.6 million to $20.6 million through conversions to equity.
Strategic Partnerships
Formed partnerships with Palantir Technologies and Volatus Aerospace to enhance product capabilities and market reach.
IEEE Ratification and AAR Selection
802.16t standard was ratified by IEEE and Ondas Networks' dot16 was selected as the protocol for the NGHE system.
Negative Updates
Operating Loss and Expenses
Operating expenses increased to $11.8 million for Q1 2025 from $8.7 million in Q1 2024, resulting in an operating loss of $10.3 million.
Cash Flow Challenges
Cash used in operations was $6.7 million for Q1 2025, highlighting ongoing cash flow management challenges.
Potential Dilution from Debt Conversion
Debt conversions led to an increase in share count from 93.2 million to 137.4 million, with more shares expected from future conversions.
Company Guidance
During Ondas Holdings Inc.'s First Quarter 2025 Conference Call, the company provided a positive outlook, anticipating a record year of revenue growth driven by Ondas Autonomous Systems (OAS). The company reported $4.2 million in Q1 revenue, primarily from a $10 million backlog, and secured over $9 million in additional orders, increasing the backlog to $16.8 million. Ondas reaffirmed its full-year revenue target of at least $25 million, with at least $20 million expected from OAS. Notably, OAS expanded customer programs and secured two new defense and homeland security customers, contributing to the company's robust growth and positioning its Iron Drone radar system as a category leader. Additionally, Ondas Networks made progress with its selection by the Association of American Railroads for the dot16 standard, enhancing commercial adoption prospects across multiple frequency bands. Despite operating losses, Ondas highlighted improved cash efficiency and a reduction in convertible debt, supporting its strategic growth initiatives.

Ondas Holdings Financial Statement Overview

Summary
Ondas Holdings is navigating a challenging financial landscape with persistent losses and cash flow constraints. While there are signs of revenue growth, significant profitability and leverage issues remain. The company's ability to secure financing offers some stability, but long-term sustainability will depend on improving operational efficiency and generating positive cash flows.
Income Statement
45
Neutral
Ondas Holdings shows a modest revenue growth in the TTM period compared to the previous year, indicating some positive trajectory. However, the company struggles with negative profit margins, highlighted by a negative gross profit margin and significant net losses. The EBIT and EBITDA margins are also negative, underscoring operational inefficiencies and profitability challenges.
Balance Sheet
55
Neutral
The company maintains a reasonable equity ratio, reflecting a balance between assets and equity. However, the debt-to-equity ratio is concerning due to the high level of debt relative to equity, which could pose risks if revenue growth does not materialize. Return on Equity (ROE) is negative, further indicating profitability issues.
Cash Flow
50
Neutral
Ondas Holdings experiences negative free cash flow, although there is a slight improvement in free cash flow growth in the TTM period. The operating cash flow to net income ratio remains negative, reflecting cash flow challenges. However, the company demonstrates an ability to secure financing, which provides some liquidity cushion.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
10.82M7.19M15.69M2.13M2.91M2.16M
Gross Profit
2.23M345.18K6.38M1.11M1.10M927.67K
EBIT
-31.60M-34.61M-39.73M-50.01M-17.97M-11.52M
EBITDA
-28.59M-28.72M-34.64M-64.63M-15.55M-11.14M
Net Income Common Stockholders
-43.48M-38.01M-44.84M-92.66M-15.02M-15.43M
Balance SheetCash, Cash Equivalents and Short-Term Investments
25.36M29.96M14.98M29.78M40.82M26.06M
Total Assets
104.60M109.62M92.16M97.95M117.44M28.51M
Total Debt
42.35M60.31M35.29M33.39M1.09M8.03M
Net Debt
16.98M30.35M20.31M3.61M-39.72M-18.03M
Total Liabilities
7.53M71.51M47.11M39.72M5.21M13.43M
Stockholders Equity
26.08M16.58M33.14M58.22M112.23M15.08M
Cash FlowFree Cash Flow
-31.53M-35.20M-34.30M-40.89M-17.92M-7.57M
Operating Cash Flow
-32.67M-33.47M-34.02M-37.96M-16.90M-7.53M
Investing Cash Flow
-714.28K-1.73M536.27K-6.93M-10.21M-16.14K
Financing Cash Flow
44.21M50.18M18.73M33.86M41.86M31.46M

Ondas Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.52
Price Trends
50DMA
0.98
Positive
100DMA
1.16
Positive
200DMA
1.13
Positive
Market Momentum
MACD
0.21
Negative
RSI
63.57
Neutral
STOCH
66.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ONDS, the sentiment is Positive. The current price of 1.52 is above the 20-day moving average (MA) of 1.18, above the 50-day MA of 0.98, and above the 200-day MA of 1.13, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 63.57 is Neutral, neither overbought nor oversold. The STOCH value of 66.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ONDS.

Ondas Holdings Risk Analysis

Ondas Holdings disclosed 67 risk factors in its most recent earnings report. Ondas Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Ondas Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
$89.45M-10.88%-2.06%-22.58%
62
Neutral
$11.90B10.64-7.50%2.90%7.41%-8.19%
58
Neutral
$231.59M-157.00%-21.17%23.22%
56
Neutral
$113.91M22.47111.75%1.60%
51
Neutral
$101.92M-6.78%-14.38%49.11%
49
Neutral
$48.59M-25.57%8.46%39.81%
$49.61M-4.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ONDS
Ondas Holdings
1.52
0.66
76.74%
KVHI
KVH Industries
5.19
0.26
5.27%
LTRX
Lantronix
2.36
-1.26
-34.81%
AIRG
Airgain
4.12
-1.44
-25.90%
INSG
Inseego
7.59
-0.72
-8.66%
FKWL
Franklin Wireless
4.15
1.10
36.07%

Ondas Holdings Corporate Events

Executive/Board ChangesM&A TransactionsBusiness Operations and Strategy
Ondas Holdings Announces Strategic Advancements in June 2025
Positive
Jun 9, 2025

Ondas Holdings Inc. announced strategic advancements in its operations as of June 2025, including new military contracts and leadership appointments. The company is enhancing its market position through acquisitions and partnerships, such as with Palantir, and is poised to benefit from policy changes favoring the U.S. drone industry. The announcement highlights Ondas’ growing demand and operational capabilities, with significant military orders and a robust pipeline indicating strong future growth potential.

The most recent analyst rating on (ONDS) stock is a Buy with a $1.50 price target. To see the full list of analyst forecasts on Ondas Holdings stock, see the ONDS Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Ondas Holdings Secures Major Defense Order for Drones
Positive
Jun 9, 2025

On June 9, 2025, Ondas Holdings Inc. announced that its subsidiary, Airobotics Ltd., received a $14.3 million purchase order from a major defense customer for its Optimus System, an advanced autonomous drone platform. This order, the largest to date for the Optimus System, significantly increases Ondas’ backlog to $28.7 million and marks a strategic milestone in expanding its presence in global defense and security markets. The deal underscores the Optimus System’s competitive strengths and operational maturity, reinforcing Ondas’ position as a trusted provider of sophisticated autonomous platforms for military applications.

The most recent analyst rating on (ONDS) stock is a Buy with a $1.50 price target. To see the full list of analyst forecasts on Ondas Holdings stock, see the ONDS Stock Forecast page.

Private Placements and FinancingFinancial Disclosures
Ondas Holdings Settles December 2024 Additional Notes
Positive
Jun 3, 2025

Ondas Holdings Inc. announced that as of May 29, 2025, the December 31, 2024 Additional Notes have been settled and are no longer outstanding. The company has approximately $12.3 million in outstanding principal and accrued interest on the Notes, net of unamortized debt discount and issuance costs, as of May 30, 2025. This settlement marks a significant step in managing the company’s financial obligations and could positively impact its financial stability and market perception.

The most recent analyst rating on (ONDS) stock is a Buy with a $1.50 price target. To see the full list of analyst forecasts on Ondas Holdings stock, see the ONDS Stock Forecast page.

Delistings and Listing ChangesStock SplitRegulatory Filings and Compliance
Ondas Holdings Faces Nasdaq Delisting Notice
Negative
May 16, 2025

Ondas Holdings Inc. has received a notification from Nasdaq due to its common stock price falling below the $1.00 per share minimum requirement for 30 consecutive business days. The company has until November 12, 2025, to regain compliance, with options such as a reverse stock split being considered to resolve the deficiency. Failure to comply may result in delisting, though an additional compliance period may be available.

The most recent analyst rating on (ONDS) stock is a Buy with a $1.50 price target. To see the full list of analyst forecasts on Ondas Holdings stock, see the ONDS Stock Forecast page.

Shareholder MeetingsBusiness Operations and Strategy
Ondas Holdings Approves Stock Incentive Plan Amendment
Neutral
May 12, 2025

At the 2025 Annual Meeting of Stockholders held on May 12, 2025, Ondas Holdings Inc. announced the approval of an amendment to its 2021 Stock Incentive Plan, increasing the number of authorized shares from 11 million to 26 million. The Board of Directors had adopted this amendment on April 10, 2025, pending stockholder approval. Additionally, the meeting included the election of six directors, ratification of the company’s independent accountants, advisory approval of executive compensation, and an amendment to increase the authorized shares of common stock from 300 million to 400 million.

The most recent analyst rating on (ONDS) stock is a Buy with a $1.50 price target. To see the full list of analyst forecasts on Ondas Holdings stock, see the ONDS Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.