Ondas Holdings' Q2 2025 Earnings: Unpacking Contradictions in Growth, Margins, and Demand

Expansion opportunities and pipeline growth, gross margin expectations, demand and order expectations, OAS bookings and revenue guidance are the key contradictions discussed in Ondas Holdings Inc.'s latest 2025Q2 earnings call.



Revenue Growth:
- Ondas Holdings Inc. reported record quarterly revenue of $6.3 million in Q2 2025, marking a more than sixfold increase over the same period last year and up 50% sequentially.
- This growth was driven by disciplined execution at Ondas Autonomous Systems (OAS), which delivered against existing programs, expanded with current customers, and captured new programs with new customers globally.

Operational Footprint Expansion:
- The company's backlog grew to $22 million at the end of Q2, up from $10 million at the year-end 2024.
- This expansion is attributed to the growing order pipeline and operational footprint in the U.S. and Europe, supported by the global tailwinds and demand for autonomous drone platforms.

Financial Strength and Strategic Acquisitions:
- Ondas Holdings ended Q2 with $68.6 million in cash, with a strong balance sheet position and no holding company debt outstanding.
- This financial strength is supporting strategic acquisitions and partnerships, such as the acquisition of Zickel Engineering and the investment in Rift Dynamics, aimed at expanding capabilities and market reach.

Regulatory Advancements and Market Opportunities:
- The FAA's launch of a new rule-making process to enable Beyond Visual Line of Sight drone operations nationwide was highlighted as a significant regulatory milestone.
- This represented a key moment for Ondas, with its products featured prominently, signaling potential market growth and regulatory tailwinds favoring the company's drone technologies.