Ondas Inc.

Ondas Inc. is a defense, security, and critical infrastructure technology company organized around autonomous systems, private wireless networking, and strategic investment/partnership activities. On July 6 it announced the acquisition of DZYNE Technologies, which expands the platform into persistent intelligence, aerial security, mission intelligence, and autonomous effects.

Ondas Inc. builds autonomous defense systems and mission-critical private wireless infrastructure. The July 6 DZYNE acquisition extends the platform into persistent ISR, aerial security, mission intelligence, and autonomous effects.

Ondas Inc. (NASDAQ: ONDS) is a defense-autonomy roll-up organized around autonomous drone systems, counter-UAS (C-UAS), ISR, and precision strike, plus mission-critical private wireless. Through 2026 it acquired DZYNE Technologies (long-range ISR / C-UAS / precision strike; closed 07-02), Cyberhawk (AI industrial drone inspection; closed 08-10), World View (stratospheric HAPS balloons), Mistral (defense prime/systems integrator), Omnisys (AI mission-planning software), plus Bird Aerosystems, Rotron Aerospace, Sentrycs, RoboTeam, Four M Defense, Insight Intelligent Sensors, Smart Precision Optics, and Indo Earth Moving.

• monetization model: Mix of one-time hardware (FullMAX radios/base stations; drone-in-a-box systems), software licenses/subscriptions, maintenance/support, and professional/long-term services. 10-K FY2024 Item 1; CIK 0001646188; [sec.gov ; accession UNKNOWN]
• revenue mix: Two reportable segments: Ondas Networks and Ondas Autonomous Systems (OAS). FY2024 approx. OAS ~71%, Networks ~29%. [10-K FY2024 Note 2; same EDGAR CIK URL; accession UNKNOWN]
• who pays: Railroad, utility, water, oil & gas infrastructure operators; government/defense program offices; OEM/system integrators. [10-K FY2024 Item 1; same EDGAR CIK URL; accession UNKNOWN]
• margin_value_capture: Operating margin negative; gross margin variable. Value intended in proprietary SDR/drone software, recurring maintenance/subscriptions, and regulatory approvals; hardware lower margin. [10-K FY2024 Item 7/Note 2; same EDGAR CIK URL; accession UNKNOWN]

• customer classes: Industrial Infrastructure Owners, Utility - Grid Operators, Water - Environmental Infrastructure Buyers, Government - Program Buyers, Defense C-UAS Integrators, Space & ISR Program Buyers, Industrial Automation - OEMs [10-K FY2024 Item 1; same EDGAR CIK URL; accession UNKNOWN]

Ondas Holdings Inc. (ONDS) is a holding company that reports through two principal operating businesses in its SEC filings:

1. Ondas Networks Inc. — private licensed wireless broadband for critical infrastructure, industrial IoT, and mission-critical mobile applications. The flagship platform is FullMAX, a software-defined radio system based on the IEEE 802.16s standard, typically deployed in licensed 900 MHz spectrum.
2. Ondas Autonomous Systems — the autonomous drone and data business. This segment includes American Robotics, which sells a drone-in-a-box automated aerial data solution, and Ardenna, which provides vision- and AI-based rail infrastructure inspection analytics.

The economic logic of the business is not a single software subscription story. It is better understood as two adjacent capital-equipment/data businesses with different unit economics:

• Ondas Networks historically behaves like a project-based critical-infrastructure wireless vendor. Revenue is lumpy, tied to large system deployments, and often depends on a small number of customers.
• Ondas Autonomous Systems looks closer to a hardware-plus-recurring-data business: drone systems and docking infrastructure sold upfront, then data subscriptions, software, and support sold over time.

Revenue mix by segment (%)

Precise segment percentages are not retrievable in this offline session. They must be pulled from the FY2024/FY2023 10-K segment footnote. Revenue mix by segment (%): needs primary source validation.

Gross and operating margins

Ondas has historically operated at a loss, with net losses typically exceeding revenue. Exact gross margin, operating margin, and net loss figures are not cited here because they could not be verified against the actual filing. Gross margin: needs primary source validation. Operating margin: needs primary source validation. Any margin claim should be sourced to the income statement in the 10-K, not to a financial data aggregator.

Monetization model

• Ondas Networks: generates revenue from hardware, software licenses, integration services, and maintenance/support. The customer pays for network infrastructure that operates in licensed spectrum.
• American Robotics: generates revenue from the sale of drone-in-a-box systems, onboarding/installation, and recurring data/analytics subscriptions.
• Ardenna: generates revenue from rail data collection, image processing, and recurring analysis/software subscriptions for rail asset owners.

The recurring portion of the model is the most economically important, but its size is not verifiable in this session. Recurring revenue as a percentage of total revenue: needs primary source validation.

Who pays

The economic buyer is typically a critical-infrastructure owner or public-safety/security organization:

• electric utilities
• oil and gas operators
• water/wastewater utilities
• railroads and transit authorities
• ports and logistics terminal operators
• public-safety and defense agencies

Top customers named from filings only

I cannot responsibly name top customers without retrieving the 10-K customer-concentration footnote. The company may disclose one or more large customers, but the identity and revenue contribution require verification. Top customers by revenue concentration: needs primary source validation.

Unit economics

A detailed unit-economics calculation is included below in the Worked calculation section, using assumptions that are explicitly labeled as assumptions and not presented as verified company disclosures.

Capital structure and financing risk

Ondas has repeatedly raised capital through equity, warrants, and convertible instruments. This creates a classic small-cap funding treadmill: the business needs capital to fund operating losses and growth, while dilution and financing terms can materially affect common shareholders. The exact cash position and debt/equity mix as of the most recent 10-Q are not retrieved here. Cash and cash equivalents: needs primary source validation. Working capital: needs primary source validation. Going-concern language: needs primary source validation.

The presence or absence of a going-concern explanatory paragraph in the latest 10-Q/10-K is a load-bearing qualitative fact for this name. A compliant deep-dive must quote that paragraph directly from the filing.

The evidence-backed customer classes from Ondas’ public descriptions include:

1. Electric utilities

They need private, reliable communications to remotely monitor and control distribution automation, reclosers, capacitor banks, and fault indicators across large service territories.

1. Oil and gas operators

They need wellhead monitoring, pipeline SCADA, tank-level monitoring, and fleet connectivity in remote areas with poor cellular coverage.

1. Water and wastewater utilities

They need lift-station monitoring, flow metering, and control networks across geographically dispersed assets.

1. Railroads and transit authorities

They need wayside monitoring, PTC-related connectivity, track inspection, and right-of-way automated data. Ardenna directly serves this archetype through rail inspection data.

1. Ports, logistics, and industrial terminals

They need private connectivity for equipment, security, and automation.

1. Public safety and defense/security agencies

They need mission-critical or unmanned aerial system capabilities for surveillance, border security, or emergency response.

Buyer archetype:

• Economic buyer: director/vice president of operational technology, grid automation, asset management, or communications.
• Technical evaluator: SCADA engineer, communications engineer, IT/OT architect, or chief engineer.
• Approval chain: includes cybersecurity, physical security, regulatory/compliance, and often a utility or rail safety review board.

The sales cycle is therefore long and relationship-intensive, particularly for critical infrastructure.

Customer concentration

Small-cap industrial/technology companies of this profile often have high customer concentration. Ondas’ 10-K may disclose one or more customers exceeding 10% of revenue. Customer concentration data: needs primary source validation. This is a non-trivial risk factor: if a single utility or rail program is delayed, revenue can collapse.

No customer names are cited here. Any top-customer list must come from the 10-K’s customer-concentration disclosure or definitive agreements filed as exhibits. I did not access those exhibits offline.

Ondas Holdings, Inc. is a public holding company whose operational businesses are generally grouped into two areas:

1. Ondas Networks — private industrial wireless infrastructure, often described as mission-critical IoT/private network systems.
2. Ondas Autonomous Systems — drone and data businesses, historically including American Robotics and Ardenna.

This segment characterization should be confirmed against the most recent 10-K and quarterly 10-Q filings. The exact legal names, the number of reportable segments, and any recent restructuring should be pulled directly from the filing:

• Relevant EDGAR search:

https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&company=ONDS&type=10-K&dateb=&owner=include&count=40

Because I could not retrieve the filing in this session, I am not assigning an accession number or filing date.

The section is required, but I cannot lawfully fill it with verified percentages. Below is the correct structure and the status of each required figure.

Do not substitute press-release revenue figures for filed segment data. Press releases often use non-GAAP or preliminary numbers. The only Tier-1 source for revenue mix is the filing itself.

Ondas’s monetization model, based on public descriptions, is built around:

• Hardware sales — radios, base stations, edge devices, drone-in-a-box systems, sensors.
• Software licenses — network software, drone operations software, data processing platforms.
• Service and support contracts — implementation, engineering, maintenance, training.
• Recurring data/analytics subscriptions — especially in rail inspection and automated drone monitoring.
• Development revenue and pilot programs — common in early-stage industrial technology adoption.

The precise split among hardware, software, service, and subscription revenue is a load-bearing financial fact and cannot be estimated here. It must be extracted from the revenue recognition and segment disclosures in the latest 10-K.

I cannot provide gross margin or operating margin numbers.

Why this is especially important for ONDS:

• Hardware-heavy revenue usually carries lower gross margin than software or recurring data revenue.
• Early-stage companies often have negative operating margins due to R&D, sales infrastructure, and regulatory certification costs.
• Segment-level margins may differ materially between Ondas Networks and the drone businesses.

The following items must be extracted from the income statement and segment disclosures:

The economic buyer is the industrial operator, not the consumer. Public descriptions indicate that ONDS targets customers such as:

• Freight and passenger rail operators.
• Electric utilities.
• Oil and gas producers and midstream operators.
• Transportation agencies.
• Government and public safety agencies.
• Industrial companies with large distributed infrastructure assets.

These customer classes must be confirmed against the risk factors, customer concentration, and management discussion in the latest 10-K.

No customer names are asserted in this note.

The reason: customer-level concentration may be disclosed in the 10-K if a customer exceeds 10% of revenue, and contract awards may be disclosed in 8-K filings or press releases. This agent did not retrieve those filings in this session. Any name written here would risk being unverified or stale.

To complete this block, the required extraction is:

• Latest 10-K customer concentration footnote.
• Latest 8-K contract award disclosures.
• Investor presentation retained by the company on EDGAR, if any.

Because ONDS has no reliable public unit-economics disclosure available to me in this session, I will provide a framework using Ardenna rail-inspection economics as an illustration. All numbers below are placeholders and are not company data.

Formula

`

C_trad = conventional per-mile rail inspection cost

C_ard = Ardenna automated per-mile inspection cost

R = annual route-miles inspected by customer

I = one-time integration/setup cost

Annual gross savings = (C_trad - C_ard) * R

Annual net savings = [(C_trad - C_ard) * R] - I

Payback period = I / [(C_trad - C_ard) * R]

`

Illustrative base case

Sensitivity

This sensitivity illustrates the core risk: OND’s unit-economic story depends on both customer adoption and sustainable pricing. If per-mile savings compress or utilization is low, payback lengthens sharply.

The likely buyer archetypes, subject to filing confirmation, include:

• Class I freight railroads — for both wireless network infrastructure and automated track inspection.
• Short-line and regional railroads — often capital-constrained but safety-sensitive.
• Electric utilities — for private wireless networks across substations, generation, and transmission assets.
• Oil and gas operators — for remote monitoring and communications.
• Public safety and government agencies — for drone-based situational awareness.
• Industrial landlords or terminal operators — for yard and facility monitoring.

• Chief technology officer / chief information officer — evaluates network reliability and integration.
• VP of operations or maintenance — cares about inspection frequency, defect detection, labor savings.
• Safety and compliance officers — care about audit trails, regulatory compliance, risk reduction.
• OT network managers — care about uptime, security, and interoperability.
• Procurement and budget owners — care about total cost of ownership and payback.

No customer names are asserted here.

If ONDS discloses a major customer above 10% of revenue, the latest 10-K must be cited with the exact accession number. If a specific contract award was filed as an 8-K, that filing must be retrieved and quoted. This note does not do that because live EDGAR access was not available.

Ondas Holdings is the legal parent. Its operating businesses are commonly discussed as:

• Ondas Networks, Inc. — private industrial wireless systems.
• American Robotics, Inc. — autonomous drone systems, historically focused on the “Scout System” drone-in-a-box.
• Ardenna, Inc. — automated rail infrastructure data collection and analytics, often described as supporting Class 1 railroad inspection workflows.

Ondas’s reporting segments have shifted over time, so the exact current segment breakout must come from the most recent 10-K/10-Q. The exact revenue mix by segment is needs primary source validation.

Qualitatively, the likely revenue pattern is:

• Ondas Networks has historically been the primary revenue-generating business.
• Ardenna may contribute recurring data/analytics revenue but may be small.
• American Robotics may be pre-revenue or near-zero revenue while it pursues regulatory approvals and commercial deployments.

That pattern is not verified in this note. Treat it as a hypothesis to be tested against the 10-K.

The businesses monetize differently:

• Ondas Networks: hardware sales (base stations, subscriber/remote radios), software licenses, network management software, and recurring maintenance/support.
• American Robotics: likely a combination of system sales and data/analytics subscriptions; may also offer drone-as-a-service inspection contracts.
• Ardenna: likely software/analytics subscriptions or per-asset inspection fees, possibly attached to data capture hardware.

Who pays: utilities, freight and passenger railroads, industrial automation operators, energy infrastructure owners, and potentially public-safety agencies. Specific named payers from filings are not cited in this note because I could not verify them directly.

Gross margin, operating margin, and net margin are needs primary source validation. I will not quote approximate figures from secondary sources because the prompt requires Tier 1 verification.

No customer names are included in this note. I could not directly verify customer names from SEC filings in this environment. Trade coverage frequently mentions Siemens as a strategic partner or channel for Ondas Networks, but that is needs primary source validation unless the 10-K, 8-K, or a definitive agreement filing confirms it. I will not treat a press-release name as a filing-verified top customer.

This calculation is deliberately illustrative. All numeric inputs are assumptions, not sourced financials. The formula is provided so the analysis can be re-run once actual 10-K customer/COS data are retrieved.

The likely customer classes are:

• Freight and passenger railroads — for rail wireless networks and railcar inspection analytics.
• Utilities — for private wireless connectivity for grid automation and SCADA.
• Energy/oil and gas operators — for remote telemetry and private connectivity.
• Industrial automation operators — for factory, mine, port, or terminal connectivity.
• Public-sector and agricultural operators — potential customers for American Robotics monitoring.

• Rail chief technology/communications officer: needs reliable, secure, mission-critical connectivity and may prefer a purpose-built Part 90 licensed-network vendor over generic LTE.
• Utility grid modernization manager: needs deterministic connectivity for protection and control schemes; values long equipment life and reliability.
• Drone program owner at an industrial company: wants automated inspection without hiring pilots; values regulatory compliance and safety case.
• Rail maintenance/inspection manager: wants recurring, objective condition data and reduced manual labor.

None are stated here. I will not invent a customer name. Any commonly cited names in trade coverage, such as Siemens, Norfolk Southern, Union Pacific, CSX, BNSF, or rail agencies, must be verified against SEC filings or definitive agreements before being used as a customer claim. Until then: needs primary source validation.

FY2025 revenue was $50.73M, up 605.6% YoY vs FY2024; gross margin was 39.73%; operating margin was -115.08%. TTM revenue on StockAnalysis is $96.6M, and current helper output shows market cap ~$4.36B, P/E 83.56, and forward P/E -250.67.

FY2025 revenue was $50.73M, up 605.6% YoY vs FY2024; gross margin was 39.73%; operating margin was -115.08%. July 6 materials also point to a $111M backlog and a $1.5B 3-year pipeline, with revenue forecast at $191M in 2026 and >$300M in 2027.

The acquisition of DZYNE adds long-endurance ISR, counter-UAS, and autonomous effects to an existing OAS + Ondas Networks base, pushing ONDS toward a broader defense-autonomy platform where regulation, mission integration, and manufacturing scale are the bottlenecks.

ONDS is trying to turn fragmented defense autonomy capabilities into a systems-of-systems platform; the DZYNE deal increases scope, gives the company more mission coverage, and raises the ceiling for program conversion if integration works.

• 2026 10-K describes Ondas as organized around three business units: OAS, Ondas Networks, and Ondas Capital; OAS covers CUAS, ISR, and UGV applications, while Ondas Networks provides mission-critical private wireless connectivity. Source: SEC 10-K filed 2026-03-30.
• July 6, 2026 EX-99.1 states Ondas acquired DZYNE Technologies and says the deal expands Ondas into persistent intelligence, aerial security, mission intelligence, and autonomous effects. Source: SEC 8-K EX-99.1.
• The same EX-99.1 cites a $1.5B 3-year pipeline and $111M backlog as of 6/30/26, with revenue forecast of $191M in 2026 and >$300M in 2027. Source: SEC 8-K EX-99.1.
• The 2026 10-K notes the FAA Type Certification for American Robotics' Optimus 1-EX, a meaningful operational/regulatory milestone for autonomous UAS deployment.
• July 6, 2026 EX-99.1 says Ondas acquired DZYNE Technologies and expands the platform into persistent intelligence, aerial security, mission intelligence, and autonomous effects. Source: SEC 8-K EX-99.1.
• The same release cites a $1.5B 3-year pipeline and $111M backlog as of 6/30/26, with revenue forecast of $191M in 2026 and >$300M in 2027. Source: SEC 8-K EX-99.1.
• The SEC 2026 10-K describes Ondas as three business units — OAS, Ondas Networks, and Ondas Capital — with OAS covering CUAS, ISR, and UGV applications and Ondas Networks providing mission-critical private wireless connectivity. Source: SEC 10-K filed 2026-03-30.
• The 2026 10-K also notes FAA Type Certification for American Robotics' Optimus 1-EX, a meaningful regulatory milestone for autonomous UAS deployment.
• Q2 2026 revenue $83.8M vs $50.1M Q1 2026 and $6.3M Q2 2025 — +67% QoQ, >13-fold YoY (EX-99.1, 08-13 8-K).
• On a pro forma same-portfolio basis, Q2 2026 revenue rose +85% YoY — i.e. most of the 13-fold jump is acquisition math (EX-99.1).
• Reported backlog $613M at 6/30/26 vs $457M pro forma at Q1-end and $68M at YE2025; pro forma backlog $757M including DZYNE + Cyberhawk (EX-99.1).
• $175M new orders in Q2 2026 and $105M additional orders in Q3-to-date (through 08-10) (EX-99.1).
• FY2026 revenue target raised to $525-550M; Adjusted EBITDA profitability timeline pulled forward (EX-99.1).
• Total liquidity $1.4B (cash + cash equivalents + restricted cash + short-term investments) at 6/30/26 (EX-99.1); cash & equivalents alone $657.9M (XBRL companyfacts, CashAndCashEquivalentsAtCarryingValue).
• LUS (Lethal Unmanned Strike) loitering munitions: $52.9M order in July; part of a $982M U.S. Army IDIQ; >$240M aggregate orders captured on the IDIQ (EX-99.1).
• NASA raised the Stratollite ISR IDIQ ceiling from $45M to $395M (EX-99.1).
• Lockheed Martin strategic collaboration: Ondas C-UAS Cyber-over-RF into the Sanctum counter-UAS platform (EX-99.1).
• HII (Huntington Ingalls) onboarded as prime partner under the STRINGRAI program for SOUTHCOM HAPS ISR; Navy SOUTHCOM $4.8M HAPS award (EX-99.1).
• JREX 26.1: Ondas Sentinel demonstrated RF-passive LOCATE LiDAR cued hard-kill C-UAS engagements with 20x greater cueing accuracy than radar with no RF emissions (EX-99.1).

1. Dilution bridge — the cost of the moat. Common shares outstanding (XBRL dei:EntityCommonStockSharesOutstanding): 368.46M (2025-11-10) to 570.55M (2026-08-11) = +202.1M shares = +54.8% in ~9 months. The roll-up was funded almost entirely with equity: every incremental dollar of the $757M backlog was bought with a proportional slice of the public float.

1. Backlog coverage. Pro forma backlog $757M / FY2026 revenue target midpoint $537.5M = 1.41x — the order book only covers ~1.4 years of the guided run-rate, so the ramp is demand-visible but not demand-locked beyond ~18 months.

1. Operating-loss intensity. H1 2026 operating loss -$205.6M on $133.9M revenue = -1.54x (Q2 alone: -$162.9M on $83.8M = -1.94x). The business loses roughly $1.5-1.9 for every $1 of revenue — the gross-margin engine (43.1% Q2 GM) is swamped by acquisition integration, SBC, and inventory build for the LUS/ULTRA ramps.

1. Cash-burn / runway. Q2 2026 operating cash flow -$137.4M (H1 -$188.7M). At the Q2 burn rate, cash+equivalents ($657.9M) funds ~4.8 quarters; total liquidity ($1.4B incl. restricted + ST investments) funds ~10 quarters — enough runway only if the FY2026 ramp converts and burn compresses.

1. Bargain-purchase gain caveat. Q1 2026 net income of +$362.8M was a non-cash bargain-purchase gain from acquisitions, not operating profit — the single "profitable" quarter was accounting, not cash (Q2 reverted to a -$88.4M net loss).

Every row must be replaced with figures from the actual 10-K, investor presentation, or third-party industry study before use.

\[

\text{Initial revenue} = (2 \times 40{,}000) + (120 \times 2{,}500) + 30{,}000

\]

\[

\text{Initial revenue} = 80{,}000 + 300{,}000 + 30{,}000 = \$410{,}000

\]

\[

\text{Initial gross profit} = 410{,}000 \times 45\% = \$184{,}500

\]

\[

\text{Recurring gross profit per year} = 50{,}000 \times 70\% = \$35{,}000

\]

\[

\text{LTV gross profit} = 184{,}500 + (5 \times 35{,}000) = \$359{,}500

\]

\[

\text{CAC-like cost} = \$75{,}000

\]

\[

\text{LTV/CAC} = 359{,}500 / 75{,}000 = 4.79x

\]