Drone Maker Ondas Updates Its Profitability Forecast as Revenue Surges 1,558% — Barrons.com

What happened

Ondas reported third-quarter revenue of $167.5 million, up 1,558% and above the $148 million estimate, while its backlog rose 36% from the prior quarter to $835 million. It now expects at least $550 million in full-year revenue and adjusted Ebitda break-even in next year’s third quarter.

Confirmed

Global impact / market context

Higher revenue and backlog suggest more demand for Ondas’s drone systems, while the higher sales forecast could support further business growth. Moving its expected break-even date forward would mean reaching a point where operating earnings cover costs sooner, but the company has not yet reported that result.

Analyst inference

The article presents rapid sales growth alongside continued difficulty turning a profit. For investors, the key tension is whether revenue and backlog convert into delivered orders and cash available, while costs remain controlled enough for Ondas to reach its newly forecast break-even date.

Analyst inference

What to watch

1. Track fourth-quarter revenue against the company’s forecast of more than $250 million; results below that level could weaken confidence in its raised full-year outlook. Analyst inference
2. Watch whether Ondas reports adjusted Ebitda break-even in next year’s third quarter; adjusted Ebitda is earnings before interest, taxes, depreciation, and amortization, with certain adjustments. Confirmed
3. Compare future backlog updates with delivered sales to see whether the $835 million backlog becomes revenue; delays could postpone cash receipts and the expected move toward break-even. Analyst inference

Evidence

• Original source link unavailable