Ondas stock jumped 10.4% in just three hours on Wednesday morning. The surge followed the company's announcement of $70 million in defense contracts signed over the past four weeks. Traders responded quickly to the news, pushing the Nasdaq-listed stock higher.
Its product mix includes autonomous ground robots, high-tech surveillance gear, and precision weapons systems for targeting. The bulk of the latest contract value comes from border security solutions and drone defense tech.
Some of the total is already known
A significant chunk of the $70 million total comes from a contract already in the public view. Ondas had previously reported a $6.9 million deal with Australia for counter-drone systems. That order was rolled into the new total.
To put this performance in perspective, Ondas reported just $6.3 million in sales for the entire second quarter of 2025. The new orders represent over 10 times that amount in just one-third of a quarter's time. This sharp spike suggests significant progress in winning new business and growing market share.
Profitability expected by 2026
Financial analysts tracking the stock believe Ondas will likely record its first GAAP profit in 2026. This would end a decade-long run of operating losses. However, the company's free cash flow remains negative and is expected to stay that way through 2027. That means it will continue needing outside capital to fund operations.
Projections indicate possible setbacks ahead. Some analysts see the company reverting to losses again in 2028. The most optimistic forecasts predict consistent free cash flow and profitability won't arrive until 2029. Investors who jumped on the recent buying frenzy may need to wait years for significant returns.
The Motley Fool Stock Advisor team recently compiled its list of 10 best stocks to buy. Ondas didn't make the cut. The analyst team highlighted companies they believe could generate exceptional returns. Their recommendations have historically included stocks like Netflix and Nvidia, which delivered massive gains to early buyers.
The Stock Advisor portfolio has outperformed the S&P 500 by a wide margin, with a total average return of 904% compared to 208% for the benchmark index. While Ondas stock is rallying now, investors might want to compare it to other picks that the advisory team considers more attractive.
The company's recent performance shows strong order growth, but the financial picture remains complex. With contracts increasing rapidly, Ondas appears to be gaining traction in the defense sector. However, its path to profitability is still uncertain and may take several years to materialize.
As with any investment, potential buyers should carefully weigh the risks. The recent surge in stock price may reflect more than just earnings potential. Market enthusiasm, geopolitical developments, and the pace of military spending all play a role in shaping Ondas' future.