What Needs To Be True To Buy Ondas Stock Now?

Shares of Ondas (ONDS) have dropped 43.2% over the past year, trailing the 17.3% return of the S&P 500. A decline of that magnitude looks tempting, yet assigning a fair value to the stock remains complicated. The company is actively acquiring defense technology businesses, and while sales are rising, it still loses money on its operations. So how much are you paying for each dollar Ondas sells?

Ondas Stock Trades Far Above The Index Sales Multiple

Right now, Ondas stock trades at 17.7 times its sales over the past twelve months. By comparison, the S&P 500 trades at a multiple of 3.1 times. Investors must rely on sales as a baseline because Ondas lacks any operating profit to measure. Anyone buying in at the current multiple is essentially paying for sales the company has yet to make.

Where Has Ondas’s Sales Growth Come From?

Acquisitions drove much of that jump. Revenue for the June quarter, fiscal Q2 2026, reached $83.8 million. That is a steep increase from $6.27 million a year earlier. If the company had owned all of those acquired businesses during the prior year, growth for the quarter would have been 85%, the company said.

Expansion remains ongoing. In August, Ondas agreed to buy Aran Defense, a defense-focused division of an Israeli engineering and manufacturing company. The buying continued in September, when the company stated it had acquired three additional defense technology businesses.

Losses have deepened alongside higher sales. The company recorded an operating loss of $163 million in the June quarter, compared with $9.3 million a year earlier.

Ondas Has Orders And Cash, But Operating Losses Persist

Executives raised their full-year 2026 revenue target in August to a range of $525 million to $550 million. Ondas reported $133.9 million of revenue in the first half, meaning the bulk of that new goal must materialize in the second half.

Recent commercial activity provides some support. On October 7, Ondas announced it had secured more than $270 million in orders since June 30. That sum bolsters an existing backlog, sales booked but not yet delivered, of about $613 million at the end of June.

Profitability remains the central challenge. For the twelve months ending in June, Ondas’s operating loss was about 1.4 times its total sales. The company did end June with $1.38 billion in cash and short-term investments, weighed against debt of $13.4 million. That liquidity provides Ondas with capital to fund its spending while the business expands.

The next critical test is Ondas’s quarterly report, expected on or around November 11, 2026. Investors will measure its revenue against that raised full-year target. Results that keep the company on pace for its annual goal would help justify the current sales multiple. A shortfall would leave buyers paying for sales that are still further off.

Does This Mean You Should Act On ONDS?

Our purpose is to inform you with unique data so you make the right investment decisions. That said, betting on a single stock is always risky, no matter which direction you choose.

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