Abstract

Ondas Holdings Inc. will report quarterly results on November 12, 2026 Pre-MKt; this preview summarizes consensus forecasts for revenue, profitability, and adjusted EPS, reviews last quarter’s results, and highlights the primary business drivers and risks into this print.

Market Forecast

For the current quarter, forecasts indicate revenue of 148.04 million US dollars, up 20.03% year over year, with EBIT estimated at -91.14 million and EPS of -0.138; consensus implies pressured profitability with limited visibility for margin expansion, and YoY declines in EPS. Forecast commentary suggests a mixed margin backdrop; current estimates point to continued operating losses and a negative EPS trend. Main business momentum is expected to hinge on execution across products, services and subscriptions, and development, with an emphasis on scaling deliveries and recurring contracts. The services and subscriptions stream appears positioned as the most promising segment given its recurring nature and attach potential, though explicit segment-level YoY forecasts are not available in the collected data.

Last Quarter Review

Last quarter, Ondas Holdings Inc. delivered revenue of 83.77 million US dollars (up 12.35% YoY), a gross profit margin of 43.13%, GAAP net profit attributable to the parent company of -88.25 million, a net profit margin of -105.34%, and adjusted EPS of -0.14 (down 75.00% YoY). Quarter on quarter, net profit growth rate was -124.31% based on the finance tool’s metric. A notable development was a revenue beat versus estimates, with year-over-year top-line growth despite ongoing operating losses. By business mix, products contributed 43.45 million, services and subscriptions 23.60 million, and development 16.72 million, with products remaining the largest contributor and services providing recurring revenue durability.

Current Quarter Outlook

Main Business Drivers

The company’s revenue base is distributed across products, services and subscriptions, and development. The near-term driver will likely be fulfillment of product orders and continuity of development programs, combined with incremental contribution from services and subscriptions. Forecast revenue expansion of 20.03% YoY implies continued demand across solutions, but the estimated negative EPS and EBIT underscore that operating scale has not yet offset cost structure and investment levels. Given the last quarter’s 43.13% gross margin, investors will watch whether mix and pricing can sustain or expand gross margin as revenue rises.

Operating leverage is central to this quarter’s narrative. If fixed costs remain elevated relative to revenue, margin expansion may be muted even with double-digit top-line growth. Procurement, manufacturing throughput, and deployment timing will influence the conversion of backlog to recognized revenue. Any delays would risk pushing recognition into subsequent periods, while efficient execution could improve cash conversion and support more favorable gross margin mix.

Management’s focus on pipeline conversion and recurring revenue penetration in services could support steadier gross profits over time. However, the forecasted EPS of -0.138 suggests that while revenue is trending upward, the path to profitability remains challenging in the immediate term. Monitoring opex discipline versus growth investments will be important for gauging the sustainability of revenue growth without further margin dilution.

Most Promising Segment

Services and subscriptions stand out as the most promising segment given their recurring characteristics and potential for higher contribution margins over time. Last quarter, this stream delivered 23.60 million, representing a meaningful share of total revenue. As the installed base increases, attach and renewal dynamics can stabilize revenue and gross margin, reducing lumpiness associated with product sales.

Recurring contracts also tend to facilitate multi-year visibility, which can mitigate forecasting risk and help align resources—particularly in customer support, software updates, and value-added services. If the company can expand subscription penetration on top of each product deployment, blended gross margins could trend upward even if product pricing remains competitive. The key risk is the pace of customer onboarding and the ability to upsell premium tiers within services, which requires consistent performance and demonstrable ROI for customers.

Because the quarter’s EPS and EBIT forecasts remain negative, investors will look for evidence that services growth is outpacing opex growth and that gross margin from this segment is supportive of operating leverage. Any disclosure of growing annual recurring revenue, lower churn, or improved contract terms would be a favorable signal.

Key Stock Price Sensitivities This Quarter

The first sensitivity is gross margin trend relative to last quarter’s 43.13%. A stable or improved gross margin alongside 20.03% YoY revenue growth would indicate better mix and pricing discipline; a deterioration could reignite concerns about discounting or cost pressure. The second is the cash burn and operating expense trajectory implied by the EBIT and EPS forecasts; any sign of opex containment or improved cash conversion could support the shares despite negative EPS. The third is backlog conversion and guidance quality: clarity on pipeline timing, deliveries into year-end, and visibility into early 2027 would shape expectations for the path toward break-even.

Investors will also be watching for commentary on large customer wins, regulatory milestones, and program delivery timelines. If management signals stronger-than-expected services adoption or announces notable contracts, it could shift sentiment more positively despite loss-making forecasts. Conversely, any slippage in key deployments or unforeseen costs would likely weigh on the reaction to the print.

Analyst Opinions

The balance of recent commentary appears cautious, reflecting ongoing losses and a negative EPS outlook despite revenue growth; the majority view leans bearish heading into the release. A recent note ahead of the company’s earnings report highlighted heightened retail interest but also flagged the risk that operating losses may persist even with solid top-line growth. The cautious stance emphasizes that while double-digit revenue growth is supported by the forecast, the expected EPS of -0.138 and EBIT of -91.14 million suggest continued negative operating leverage.

Institutions with a conservative view point to three issues. First, forecasted revenue acceleration does not yet translate into profitability, creating uncertainty about the timing of break-even. Second, cost structure and scale remain key headwinds given the last quarter’s -105.34% net margin and the projection for another negative EBIT. Third, investors seek more evidence of backlog-to-revenue conversion and recurring revenue expansion to underpin margin stability. In this framework, bears expect management to reiterate a path to scale but may remain skeptical until tangible improvements in gross-to-operating profit conversion appear.

Within this cautious majority, the constructive counterpoints focus on the potential of services and subscriptions to provide recurring revenue and gross margin resiliency over time. However, given the forecasted negative EPS and ongoing operating losses, the prevailing institutional stance favors patience, with the near-term setup framed by execution risk and the need for clearer operating leverage. Overall, expectations for November 12, 2026 are anchored to revenue growth and the quality of that growth, but sentiment skews toward caution until profitability signals become more visible.