Ondas Inc. (ONDS) saw its shares climb sharply in premarket trading Thursday after the company reported first-quarter revenue that significantly exceeded both its own guidance and Wall Street expectations. The drone and autonomous systems specialist posted $50.1 million in revenue for the quarter ended March 31, up from just $4.3 million in the same period last year and well above the $30.1 million reported in the previous quarter.
The strong top-line performance prompted Ondas to raise its full-year 2026 revenue target to at least $390 million, up from its prior forecast. Shares were up approximately 14% in premarket action, trading around $10.16 as of 08:51 a.m. ET, according to MarketBeat.
CEO Eric Brock attributed the results to "strong visibility into our 2026 targets," noting that the company's pro forma backlog surged to $457 million at quarter-end, a dramatic increase from $68.3 million at the close of 2025. Brock highlighted "powerful demand tailwinds" for counter-UAS systems, which are technologies designed to detect or block unmanned aircraft.
The company's recent acquisition strategy is proving instrumental to its growth. With the acquisition of Mistral, Ondas now holds a U.S. prime-contractor slot and is involved in a $982 million U.S. Army loitering-munitions project. The addition of World View brings stratospheric capability to its intelligence, surveillance, and reconnaissance (ISR) platform.
Despite the revenue beat, the quarter was not without challenges. Ondas reported an operating loss of $42.7 million, wider than the prior year. However, net income came in at $361.2 million, inflated by a $389.5 million non-cash gain from warrant fair-value adjustments and a $51.5 million boost from deconsolidating Ondas Networks. Adjusted EBITDA remained negative at $10.9 million.
Investors are weighing the company's growth prospects against persistent risks. Zacks highlighted potential "integration overload" from five acquisitions completed in a single quarter. A Seeking Alpha note pointed to customer concentration, ongoing operating losses, and elevated short interest as key concerns, though it acknowledged robust growth prospects.
The competitive landscape remains intense, with players like Red Cat Holdings, Kratos Defense & Security Solutions, and Draganfly all vying for market share in the defense, security, and autonomous systems space.
Looking ahead, Datavault AI (DAV) is set to report its first-quarter results before the bell on Friday, May 15. Analysts tracked by Moomoo project quarterly revenue of $20 million, representing a staggering 3,079.65% surge from the same period last year, with an expected loss of 8 cents per share.
Investors will be closely watching Datavault's report for signs that its contract pipeline is translating into top-line growth. In April, the company disclosed it had secured $750 million worth of tokenization contracts in Q1, generating approximately $77 million in related fees. Management is maintaining guidance calling for at least $200 million in revenue by 2026.
