Ondas Inc (ONDS) has revised its profitability timeline for the Ondas Autonomous Systems (OAS) segment, now anticipating adjusted EBITDA profitability by Q1 2027, six months earlier than previously expected. Company-wide adjusted EBITDA profitability remains targeted for Q1 2028. In Q1 2026, Ondas achieved product-level adjusted EBITDA profitability, with gross margins reaching approximately 49% due to effective sales strategies and revenue growth.
Despite rising operational costs, with Q1 operating expenses soaring to $67 million from $11.8 million year-over-year and an operating loss of $42.7 million, Ondas aims to generate a minimum of $390 million in revenues for 2026, up from a prior estimate of $375 million, supported by a backlog of $457 million. The adjusted EBITDA loss for Q1 2026 was $10.9 million, an increase from $7.5 million during the same quarter last year.
As competition intensifies in the autonomous systems market, Ondas must navigate challenges while capitalizing on structural demand for drone and unmanned systems. The company anticipates that adjusted EBITDA losses may peak in Q2 2026, with expectations for improvements in the latter half of the year driven by increased revenue.
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