---
title: "Ondas' Q3 revenue rose sixteenfold to $167.5 million, but acquisitions drove most of the growth"
description: "Organic growth was 64 percent against the sixteenfold headline, and shareholders sold the record quarter. The fourth-quarter target of more than $250 million has to come from businesses Ondas already owns."
publisher: "The Inference"
section: "Robotics & Defense"
published: 2026-11-12T18:16:31.359Z
modified: 2026-11-12T18:16:31.359Z
canonical: https://theinference.org/article/ondas-q3-revenue-rose-sixteenfold-to-167-5-million-but-acquisitions-drove-most-of-the-growth
language: en
keywords: "Ondas, Earnings, Drones, Defense Tech, Acquisitions"
---

# Ondas' Q3 revenue rose sixteenfold to $167.5 million, but acquisitions drove most of the growth

> Organic growth was 64 percent against the sixteenfold headline, and shareholders sold the record quarter. The fourth-quarter target of more than $250 million has to come from businesses Ondas already owns.

## A record quarter the market sold

[Ondas](https://theinference.org/markets/companies/ondas-holdings) (NASDAQ: ONDS), the West Palm Beach defense company assembled through acquisitions, posted third-quarter revenue of $167.5 million, up from $10.1 million a year earlier and double the prior quarter's $83.8 million [1]. The result beat Wall Street's estimate near $148 million and [the $140 million to $155 million guide The Inference reported on November 11](https://theinference.org/article/ondas-announced-an-israeli-attack-drone-order-with-no-price-q3-revenue-guided-to-140-million-to-155-million) [2][3][6].

Bookings reached $214 million and backlog rose 36 percent sequentially to $835 million [1]. The shares still [fell about 5 percent to $5.44](https://www.ibtimes.com.au/ondas-shares-fall-record-revenue-raised-outlook-1878494), a market value near $3.2 billion, in a broad technology selloff, and they are down more than 44 percent in 2026 [3][4].

*Chart: **Revenue rose sixteenfold in a year; the Q4 target asks for another 50 percent** Line chart of Ondas quarterly revenue from Q3 2024 through the Q4 2026 target, rising from about $1.5 million to $167.5 million reported.*

*Quarterly revenue, millions of US dollars. Historical quarters as reported in Ondas's SEC filings; Q3 2026 as reported on November 12, 2026; Q4 2026 is management's target of more than $250 million, not a reported result. [1][9]*

## Six acquisitions supplied most of the growth

On a like-for-like basis, growth was 64 percent [1]. That implies a year-ago base near $102 million, so roughly $92 million of the $157 million increase came from businesses Ondas did not own a year ago [1]. Six acquisitions closed in the quarter, led by DZYNE, [the $875.8 million purchase announced in July](https://www.theglobeandmail.com/investing/markets/stocks/ONDS/pressreleases/3139732/ondas-announces-transformative-acquisition-of-dzyne-technologies-establishing-the-leading-autonomous-defense-platform-spanning-persistent-intelligence-aerial-security-and-autonomous-effects/) and penciled in for $191 million of 2026 revenue [1][5]. DZYNE now sits inside Ondas Sentinel, the defense division built around it and World View, the stratospheric-sensing company, run by World View chief executive Ryan Hartman with DZYNE co-founder Matt McCue as chief technology officer [1][5].

The acquired revenue arrived thinner. Gross margin halved to 21.8 percent from 43.1 percent, and the adjusted EBITDA loss widened to $59.7 million from $46.2 million [1]. Three costs newly excluded from that figure this quarter sum to about $17.1 million: $9.6 million of inventory step-ups, $7.3 million of retention payments tied to acquisitions and $0.2 million of integration costs [3]. International Business Times, citing an outside tally that keeps those costs in, puts the loss nearer $76.8 million [3].

*Chart: **Gross margin halved as acquired revenue arrived** Column chart comparing Ondas GAAP and adjusted gross margin across Q3 2025, Q2 2026 and Q3 2026, showing the sequential halving.*

*Gross margin as a percent of revenue; the adjusted measure excludes acquisition-related items Ondas itemizes in its release. Ondas expects similar levels in Q4 2026. Source: Ondas Q3 2026 release. [1]*

## The loss was non-cash, the dilution was not

The $64.7 million net loss was cushioned by $125.1 million of non-cash warrant gains, and shares outstanding are up 55 percent this year, to 590 million [1].

*Chart: **Operating cash burn has grown to match revenue: $86 million out on $84 million in** Column chart of Ondas quarterly revenue and operating cash flow from Q3 2024 to Q2 2026: revenue rises from $1.5 million to $83.8 million while cash used in operations grows from $9.1 million to $86.1 million.*

*Quarterly revenue and operating cash flow, millions of US dollars, through the quarter ended June 30, 2026; negative values are cash used in operations. Figures from Ondas's SEC filings; the Q3 2026 cash flow statement filed November 12 is not in this series. [10]*

## The fourth-quarter organic test cannot be met with acquisitions

Bulls point to $820.3 million of cash and short-term investments, a 2027 revenue target of at least $1.1 billion against the $1.01 billion carried by market-data provider [FactSet](https://theinference.org/markets/companies/factset), and company-wide adjusted EBITDA break-even pulled forward to Q3 2027 [1][6]. Regna AI, [the sovereign-AI venture launched in October with Palantir](https://www.marketscreener.com/news/ondas-announces-regna-ai-powered-by-palantir-to-advance-sovereign-ai-ce785ddcd08af726), the data-analytics software company, is wholly owned by Ondas and built on [Nvidia](https://theinference.org/markets/companies/nvidia)'s Nemotron open-weight models, and it still discloses no terms, customers or revenue commitments [1][6][7].

The test lands in the fourth quarter: more than $250 million of revenue at 75 percent or better like-for-like growth [1]. That growth measure counts only businesses owned in both periods, so an acquisition closed this quarter cannot lift it [1]. [The Digital Bat attack-drone order](https://www.sec.gov/Archives/edgar/data/1646188/000119312526457088/0001193125-26-457088-index.htm) from Israel's Ministry of Defense sits in backlog with no dollar figure, as The Inference reported on November 11 [1][2]. And as The Inference wrote on October 10, [the full-year guide already required a fourth quarter Ondas had never delivered](https://theinference.org/article/ondas-holdings-booked-270-million-of-orders-but-needs-a-244-million-fourth-quarter-it-has-never-had) [8]. This target has to come from the businesses Ondas already owns.

## Takeaway

The record quarter was mostly bought: about $92 million of the $157 million revenue increase came from businesses Ondas did not own a year ago, and the fourth-quarter target now has to come from the ones it does.

## Sources

1. [Ondas Inc. Form 8-K (Items 2.02, 9.01) with Q3 2026 press release and financial tables, SEC EDGAR, 12 November 2026](https://www.sec.gov/Archives/edgar/data/1646188/000119312526457088/0001193125-26-457088-index.htm)
2. [The Inference, "Ondas announced an Israeli attack-drone order with no price; Q3 revenue guided to $140 million to $155 million", 11 November 2026](https://theinference.org/article/ondas-announced-an-israeli-attack-drone-order-with-no-price-q3-revenue-guided-to-140-million-to-155-million)
3. [International Business Times, "Ondas Stock Falls 5% Despite Record Revenue and Raised Outlook as Margin Squeeze Overshadows Defense Tech Beat", 12 November 2026](https://www.ibtimes.com.au/ondas-shares-fall-record-revenue-raised-outlook-1878494)
4. [Stocktwits via MSN, "Ondas CEO sees Q4 momentum accelerating, firm now expects adjusted EBITDA break-even a quarter earlier in 2027", 12 November 2026](https://www.msn.com/en-us/money/other/ondas-ceo-sees-q4-momentum-accelerating-firm-now-expects-adjusted-ebitda-break-even-a-quarter-earlier-in-2027/ar-AA2hjcSA)
5. [ACCESS Newswire via The Globe and Mail, "Ondas Announces Transformative Acquisition of DZYNE Technologies", 6 July 2026](https://www.theglobeandmail.com/investing/markets/stocks/ONDS/pressreleases/3139732/ondas-announces-transformative-acquisition-of-dzyne-technologies-establishing-the-leading-autonomous-defense-platform-spanning-persistent-intelligence-aerial-security-and-autonomous-effects/)
6. [MarketScreener, "Ondas: Announces Regna AI, Powered by Palantir, to Advance Sovereign AI" (12 October 2026) with FactSet earnings flashes (12 November 2026)](https://www.marketscreener.com/news/ondas-announces-regna-ai-powered-by-palantir-to-advance-sovereign-ai-ce785ddcd08af726)
7. [24/7 Wall St, "Ondas Retreats 6% Despite Regna AI Launch With Palantir", 14 October 2026](https://247wallst.com/investing/2026/10/14/ondas-retreats-6-despite-regna-ai-launch-with-palantir-aerovironment-drops-3-kratos-slips/)
8. [The Inference, "Ondas Holdings booked $270 million of orders but needs a $244 million fourth quarter it has never had", 10 October 2026](https://theinference.org/article/ondas-holdings-booked-270-million-of-orders-but-needs-a-244-million-fourth-quarter-it-has-never-had)
9. [Ondas Holdings, quarterly revenue figures from its SEC filings, retrieved 12 November 2026](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001646188)
10. [Ondas Holdings, quarterly figures from its SEC filings, retrieved 12 November 2026](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001646188)


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Ondas' Q3 revenue rose sixteenfold to $167.5 million, but acquisitions drove most of the growth — The Inference. Canonical: https://theinference.org/article/ondas-q3-revenue-rose-sixteenfold-to-167-5-million-but-acquisitions-drove-most-of-the-growth