Ondas Holdings Inc. (NASDAQ: ONDS), a leading provider of private industrial wireless networks and commercial drone solutions, has announced staggering financial results for the second quarter of 2025. The company reported record-breaking revenue and a dramatic improvement in profitability, driven by explosive growth in its Ondas Autonomous Systems (OAS) division and continued progress in its Ondas Networks unit.
The impressive performance underscores strong international demand for its advanced drone technologies and highlights the success of recent strategic initiatives aimed at scaling production and expanding its global footprint.
Q2 2025 by the Numbers: A Financial Snapshot
Ondas Holdings showcased remarkable financial strength in its second-quarter report. The results paint a clear picture of a company in a high-growth phase, successfully converting its technological innovations into substantial revenue.
Record Revenue: Quarterly revenue skyrocketed to $6.3 million, a massive 555% increase from the $1.0 million reported in Q2 2024 and a 48% sequential increase from Q1 2025.
Improved Profitability: Gross profit reached $3.3 million, resulting in a healthy gross margin of 53%. This marks a significant turnaround from a gross loss of $0.2 million in the same period last year.
Strong Cash Position: The company ended the quarter with $68.6 million in cash, more than doubling its position from $30.0 million at the end of 2024.
Autonomous Systems Unit Leads the Charge
The primary engine behind this growth was the Ondas Autonomous Systems (OAS) business unit, which generated approximately $6.1 million in revenue—a more than six-fold increase year-over-year.
The demand for OAS solutions, including the flagship Optimus drone system, is rapidly accelerating. The unit’s backlog swelled to $20.7 million by the end of the quarter, a significant jump from $9.4 million at the end of Q1 2025. Key orders contributing to this success include:
A $14.3 million order from a major defense customer for the Optimus drone system.
Follow-on orders totaling $3.8 million from the Government of Dubai, demonstrating strong customer satisfaction and continued trust.
Oshri Lugassy, Co-CEO of Ondas Autonomous Systems, commented on the division’s success, noting the “strong momentum across OAS platforms” and the team’s focus on “scaling our capabilities to meet the robust global demand.”
Strategic Partnerships and Corporate Developments
Ondas has been actively forging strategic partnerships to support its expansion. The company entered into an agreement with Norway-based Rift Dynamics to support the launch of their Wåsp platform, broadening its reach in the European market.
To meet growing U.S. demand and bolster its domestic supply chain, Ondas established a key manufacturing partnership with Detroit Manufacturing Systems (DMS). This move is critical for supporting U.S.-based production of its autonomous drone systems.
Meanwhile, the Ondas Networks business unit continued to gain commercial traction. The Association of American Railroads (AAR) selected its dot16 technology as the standard for its Next-Generation Head-of-Train/End-of-Train (NGHE) system, a major validation of its proprietary wireless technology.
Confident Outlook for 2025
Bolstered by a record-setting quarter and a robust backlog, Ondas Holdings’ management is confident about the company’s future.
Eric Brock, Chairman and CEO, highlighted the “robust international demand for our autonomous drone technologies.” He emphasized the company’s progress on its strategic growth plans, stating, “The partnerships and investments made during the quarter will further broaden our critical relationships, particularly in Europe and the U.S. defense market.”
Looking ahead, Ondas Holdings reaffirmed its revenue target of at least $25 million for the full year of 2025, which would represent nearly 250% year-over-year growth. The company expects the OAS business unit to generate over $20 million of this total, supported by a healthy backlog and clear visibility on production and delivery schedules with its customers.
