Ondas: The Growth Is Real, But So Is The Risk

James Foord Investing Group Leader Follow Summary Ondas Inc. delivered record Q2 revenue, raised guidance, and demonstrated 85% organic growth, yet shares remain flat amid high short interest. ONDS’s backlog surged to $757 million, with a two-year pipeline exceeding $11 billion, validating its acquisition-driven growth strategy and operational execution. Significant warrant liability and dilution risk, alongside declining margins and ongoing cash burn until Q4 2027, weigh on the stock’s valuation. I maintain a Strong Buy rating on ONDS, viewing its 6.8x FY26 EV/guidance as attractive despite overhangs from warrants and integration risks. Looking for a portfolio of ideas like this one? Members of The Pragmatic Investor get exclusive access to our subscriber-only portfolios. Learn More » Jutharat Pinpan/iStock via Getty Images Thesis Summary Back in July, I argued that the gap between Ondas Inc. ( ONDS ) fundamentals and its share price had gotten too wide to ignore. The fundamentals have since done exactly what I hoped, but This article was written by James Foord 29.54K Followers Follow James Foord is an economist by trade and has been analyzing global markets for the past decade. He leads the investing group The Pragmatic Investor where the focus is on building robust and truly diversified portfolios that will continually preserve and increase wealth. The Pragmatic Investor covers global macro, international equities, commodities, tech and cryptocurrencies and is designed to guide investors of all levels in their journey. Features include a The Pragmatic Investor Portfolio, weekly market update newsletter, actionable trades, technical analysis, and a chat room. Learn more. Analyst’s Disclosure: I/we have a beneficial long position in the shares of ONDS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.