Ondas Inc. (NASDAQ: ONDS) experienced a volatile end to the trading week, with shares retreating 5.26% to close at $10.62 on Friday. This pullback followed a dramatic 26.52% surge on Thursday, leaving the stock still approximately 17% above its May 8 closing price. The sharp moves come on the heels of a blockbuster first-quarter earnings report that has reshaped the company's financial outlook.
Record Revenue and Raised Targets
The company reported first-quarter revenue of $50.1 million, a more than tenfold increase year-over-year and a 66% sequential gain from the fourth quarter. This performance was driven primarily by its autonomous systems segment, which includes defense robotics and counter-unmanned aerial system (counter-UAS) technologies. As a result, Ondas has raised its 2026 revenue target to at least $390 million, up significantly from previous guidance.
CEO Eric Brock highlighted strong visibility into the company's 2026 targets, citing robust demand in counter-drone and defense robotics markets. Oshri Lugassy, co-CEO of Ondas Autonomous Systems, emphasized the delivery of combat-proven, multi-layered solutions for defense and security applications. The company's strategic partner Palantir also saw a 2.8% gain on Thursday, while the broader defense sector showed mixed results—AeroVironment rose 2.7% and Karman Holdings fell 1.9%.
Backlog Growth and Resale Filing
Ondas reported a pro forma order backlog of $457 million, a substantial increase from $68.3 million at the end of 2025. This backlog provides long-term revenue visibility. However, the company also filed a prospectus on May 15 covering the resale of 3,342,378 shares related to the World View acquisition. Proceeds from any sales will go to selling stockholders, not Ondas itself, but such filings can create overhang in the market.
Trading volumes were exceptionally high, with over 138 million shares changing hands on Friday, following nearly 245 million on Thursday. The stock's rapid ascent and subsequent decline reflect the market's reassessment of the company's valuation amid the new financial data.
Financial Losses and Non-Cash Gains
Despite the revenue surge, Ondas posted an operating loss of $42.7 million and an adjusted EBITDA loss of $10.9 million for the quarter. Net income was boosted by a $389.5 million non-cash gain from warrant accounting. CFO Neil Laird noted that this gain was purely accounting-driven and that reported earnings may continue to fluctuate due to such items. CEO Brock acknowledged the difficulty in precisely timing the conversion of the large backlog into quarterly revenue.
The company's next major investor event is its annual meeting scheduled for May 28 in West Palm Beach, Florida. Traders will be watching to see if the stock can hold above Friday's close, how defense-tech sector trends evolve, and whether the resale filing impacts sentiment. The combination of record revenue, a massive backlog, and ongoing losses makes Ondas a high-risk, high-reward play in the autonomous systems space.
