Ondas Inc. (NASDAQ:ONDS) shares are trading higher after the company reported fourth-quarter results and disclosed an acquisition.

Earnings Snapshot

The company reported losses of 36 cents per share, missing the analyst consensus loss of five cents.

Sales of $30.1 million beat the consensus estimate of $27.6 million.

Revenue surged 198% sequentially to $30.1 million for the quarter ended December 31, 2025, up from $10.1 million in the prior quarter, and soared 629% year over year from $4.1 million.

Revenues from Ondas Networks remained flat Y/Y at $0.5 million due to extended timelines for network deployments by customers.

Meanwhile, OAS revenues escalated 722% Y/Y to $29.6 million on higher shipments of products and services from orders for Iron Drone and Optimus, along with contributions from the companies acquired in the second half of 2025.

Gross profit increased to $12.7 million from $0.9 million a year ago quarter, with margin expanding to 42% from 21% in the prior year quarter.

The improvement was driven by higher OAS revenue, a favorable product mix, absorption of fixed manufacturing costs, and contributions from recently acquired companies.

Also, adjusted EBITDA loss stood at $9.9 million versus $7.0 million in the year-ago quarter.

As of December 31, 2025, cash, cash equivalents, and restricted cash stood at $594.4 million.

Outlook

Ondas sees first quarter sales of $38 million-$40 million versus the Street view of $28.4 million, representing growth of around 640% and 820% year-over-year.

Ondas expects quarterly revenue to be driven by the OAS business and supported by a $68.3 million backlog, including contributions from recent acquisitions.

The company projects the backlog to grow further as first-quarter orders remain strong.

Ondas projects adjusted EBITDA loss to widen in the quarter due to higher operating expenses from investments in Ondas and OAS platforms, expanded leadership, and marketing to support rapid growth.

Also, the company expects 2026 revenue of at least $375 million.

However, Ondas expects EBITDA margins to improve through 2026, targeting product-level profitability by the third quarter of 2026, OAS-level profitability by the third quarter of 2027, and company-wide profitability by the first quarter of 2028.

World View Acquisition

In a separate release, Ondas disclosed that it inked a definitive deal to acquire World View Enterprises, Inc. for an undisclosed amount.

The transaction builds on the companies’ previously announced $10 million strategic investment and partnership agreement and reflects strong alignment in vision, operating tempo, and customer focus.

Eric Brock, Chairman and CEO of Ondas, said, “World View will accelerate our systems-of-systems roadmap by extending our architecture into the stratosphere, adding long-endurance, wide-area persistence to our layered ISR strategy across air and ground domains.”

”Just as importantly, World View will strengthen our U.S. footprint and bring established engagement with U.S. Department of War combatant commands and allied defense customers globally. Combined with our partnership with Palantir, we are building a scalable, AI-driven intelligence platform that connects sensing, decision-making, and response across mission-critical environments.”

Elevated Short Interest

The company has a short float of 157.8 million shares, representing 34.24% of its publicly traded float, indicating a very high level of short interest among investors betting against the stock.

ONDS Price Action: Ondas shares were up 3.98% at $10.46 at the time of publication on Monday, according to Benzinga Pro data.

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