Ondas Inc. Common Stock (ONDS)

FairStock Score: 30/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Ondas is a small technology company selling private wireless, drone, and counter-drone systems. The filed numbers show explosive top-line growth but no durable earnings. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $83.8 million and net loss was $88.4 million, or diluted EPS of -$0.19. A year earlier, fiscal Q2 2025 had revenue of $6.3 million and a net loss of $10.8 million. For fiscal 2025, revenue was $50.7 million and net loss was $132.2 million. Fiscal Q1 2026 filed net income of $362.8 million stands out, but the next quarter's loss suggests that was not a repeatable earnings base. As a Buffett/Graham investor, I look for consistent earning power, free cash flow, and a margin of safety. Ondas has none of those yet. Trailing free cash flow is -$172.0 million, a FairStock FCF yield of -4.5% at the 2026-10-13 close of $6.71. FairStock's P/E is -223.67, P/B is 2.27, ROCE is -8.37%, and Piotroski F-Score is 2/9. The Altman Z-Score of 2.02 is in the gray zone. Low debt-to-equity of 0.03 and a FairStock ROE of 19.32% offer some comfort, but ROE may be distorted by the unusual fiscal Q1 2026 result, and ROCE shows operating capital is not earning a return. At a $3.8 billion market cap, the price already assumes rapid growth and future profitability. The counter-drone niche could become valuable, but I see no clear moat or margin of safety, and the high beta of 2.74 confirms volatility. This is speculation, not a Graham-style bargain.

In plain English: Ondas makes wireless gear and drone-defense systems, including tools to detect and stop hostile drones. Sales have jumped recently, but the company still loses a lot of money and burns cash. At $6.71 a share, the stock looks expensive compared with its current numbers because it has no profits, though it trades at about 2.3 times its accounting net worth.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer