Ondas Holdings Inc. ( ONDS ) shares rose Thursday after the company posted another quarter of rapid expansion, reporting third-quarter revenue of $10.1 million, which beat the $7.039 million analyst estimate and rose 582% from a year earlier.

The quarter showed strong momentum in its OAS unmanned systems business, expanded backlog, and a strengthened balance sheet, all of which contributed to the market’s positive reaction.

GAAP EPS came in at a loss of 3 cents, topping expectations for a loss of 5 cents as the company continued to scale deliveries of its unmanned systems and integrate newly acquired businesses.

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Gross profit increased to $2.6 million from $0.05 million, with gross margin improving to 26% from 3%. Operating expenses rose to $18.1 million from $8.7 million, driven by higher stock compensation and expanded payroll and professional services.

Operating loss widened to $15.5 million. Net loss narrowed to $7.5 million due to higher interest and dividend income and a $6.9 million unrealized gain on minority equity investments.

Adjusted EBITDA was a loss of $8.8 million compared with a $7.1 million loss a year earlier.

Ondas ( ONDS ) ended the quarter with $433.4 million in cash, cash equivalents, and restricted cash, up from $30.0 million at year-end 2024. Pro forma cash totaled $840.4 million.

Cash flows from financing activities totaled $448.2 million, driven by equity offerings and the exercise of warrants and options. Investing activities used $18.7 million, while operating activities used $26.0 million.

OAS Growth

The OAS unit generated approximately $10.0 million in revenue, representing an eightfold increase from last year, and the backlog reached $22.2 million.

OAS secured a $2.7 million Iron Drone Raider order and a $3.5 million Apeiro UGV order, completed multiple counter-UAS pilots overseas, and expanded its portfolio through acquisitions of Apeiro Motion, 4M Defense, S.P.O. Smart Precision Optics, and Insight Intelligent Sensors, as well as a definitive agreement to acquire Sentrycs. Advisory board additions strengthened defense and autonomy leadership.

Ondas Networks advanced adoption of its dot16 platform after the AAR named IEEE 802.16t the upgrade path for the 160 MHz network. Several Class 1 railroads are scheduled to begin proof-of-concept testing in late 2025 and early 2026.

Outlook

Ondas ( ONDS ) raised its full-year 2025 revenue outlook from at least $25 million to at least $36 million, above the $27.116 million analyst estimate, supported by a $23.3 million consolidated backlog.

The company has set a preliminary 2026 revenue target of at least $110 million and expects to end the year with a record backlog.

Price Action: ONDS shares were trading higher by 31.58% to $7.250 at last check Thursday.

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