Ondas went from $6.3 million of revenue to $83.8 million in six months. It also went from burning $15.1 million of operating cash to burning $137.4 million. That is a 13-fold jump in sales paired with a cash outflow larger than the sales themselves.
The headline growth is real, but the filing records a business that expanded rapidly while its reported margins and losses moved in different directions. Gross profit rose to $36.1 million, yet gross margin fell 10 percentage points to 43.1%. Operating loss widened to $162.9 million, and diluted shares rose from 150.7 million to 503.6 million.
Management points to an accounting item for the gross-margin decline:
"The 10% decrease in gross margin percentage is primarily due to the amortization of capitalized intellectual property."
10-Q 2026-08-13; margin
That amortization is non-cash. It lowers reported profit, not the bank balance. The cash-flow line is separate: operating cash consumption increased by $122.3 million even as revenue surged.
The company also added businesses. Ondas disclosed that it acquired the remaining 30% of 4M for $3.7 million in stock, with up to another $1.4 million of stock-based earn-outs tied to milestones. The latest period's sales base is therefore being assembled through acquisitions as well as whatever growth came from the existing operations.
The expense detail puts numbers on the scale-up. Ondas said increases in selling and marketing and research and development were primarily tied to companies acquired since June 30, 2025, including amortization, depreciation, and higher stock-based compensation.
"This increase is primarily due to an increase of $21.1 million related to R&D attributable to companies acquired since June 30, 2025, of which $7.0 million relates to amortization and depreciation of acquired assets, and an increase of $3.4 million related to increased stock-based compensation for awards granted since June 30, 2025."
10-Q 2026-08-13; operating evidence
The quote mixes cash operating expansion with non-cash accounting costs. Stock compensation reached $88.8 million, more than the period's revenue, while research and development reached $31.0 million. Those figures do not prove that acquisitions will or will not pay off; they show what was recorded during the six months.
The balance sheet reports higher cash than the income statement alone would indicate. Cash stood at $657.9 million, up from $67.6 million a year earlier, though the filing does not disclose the source of that increase in the supplied figures. Inventory also climbed from $11.2 million to $52.0 million, and capex rose to $9.1 million from $267,000.
At the latest close, Ondas had a market cap of $2.2B, while enterprise value to annual sales was 31.9x. That puts the emphasis on the question the filing leaves open: how much of the next step in revenue can arrive without another comparable expansion in cash burn, acquisition spending, and share count? Ondas's next quarterly report will provide the next read on operating cash flow, gross margin, inventory, and diluted shares. The unanswered question is whether the 13-fold sales scale can become a cash-generating one.
Source: Ondas Inc. 10-Q filed August 13, 2026, for the six months ended June 30, 2026.