Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 17 Mar, 26 | ONDS | Buy | USD 10.53 | USD 11.06 | USD 12.16 | 1 day | Closed |
5.03%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Ondas Holdings Inc., through its subsidiaries, provides private wireless, drone, and automated data solutions. It operates in two segments, Ondas Networks and Ondas Autonomous Systems. The company designs, develops, manufactures, sells, and supports FullMAX, a software defined radio (SDR) platform for wide-area broadband networks. Its FullMAX SDR platform enables secure and reliable industrial-grade connectivity for truly mission-critical applications. The company also offers Optimus, an AI-powered drone with imaging payloads; the Airbase, a ruggedized weatherproof base station for housing, data processing, and cloud transfer; Insightful, a secure web portal and API, which enables remote interaction with the system, data, and resulting analytics anywhere in the world; and the Raider, a counter-drone system for security and the protection of critical infrastructure, assets, and people from the threat of hostile drones. It serves users in rail, energy, mining, agriculture, public safety, critical infrastructure, and government markets in the United States and internationally. The company is headquartered in Waltham, Massachusetts.
Strong Revenue Scale-Up: Q3 FY25 revenue of USD 10.1 million increased significantly from Q3 FY24 revenue of USD 1.5 million
Gross Margin Expansion: Q3 FY25 gross margin improved to 26% compared to 3% in Q3 FY24
Rising Operating Expense Burden: Q3 FY25 operating expenses increased to USD 18.1 million from USD 8.7 million in Q3 FY24
Widening Operating Loss: Q3 FY25 operating loss expanded to USD 15.5 million compared to USD 8.7 million in Q3 FY24
The company remains exposed to execution and scalability risks as aggressive cost expansion, acquisition integration, and dependence on defense-related demand cycles may delay sustainable profitability despite strong revenue growth momentum
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 10.53 | 9.4 | 11.06 | 12.16 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Record Revenue Expansion Driven by OAS Momentum: Ondas Holdings reported a significant acceleration in topline performance during Q3 FY25, with revenues reaching USD 10.1 million, representing a substantial increase compared to USD 1.5 million in Q3 FY24. This growth was primarily driven by strong deliveries of Iron Drone and Optimus systems, alongside contributions from recent acquisitions, reflecting rising global demand for autonomous defense and security solutions.
Improvement in Gross Profitability and Operating Leverage: Gross profit increased materially to USD 2.6 million in Q3 FY25 from USD 0.05 million in Q3 FY24, translating into a gross margin expansion to 26% from 3%. This improvement highlights early signs of operating leverage as higher revenue volumes helped absorb fixed costs, although margins remain subject to product mix variability.
Elevated Operating Costs Amid Strategic Scaling: Operating expenses rose sharply to USD 18.1 million in Q3 FY25 from USD 8.7 million in Q3 FY24, reflecting ongoing investments in talent, leadership expansion, and integration of acquired businesses. A portion of the increase was attributed to stock-based compensation, while the remainder related to higher payroll and professional expenses supporting the company’s strategic growth initiatives.
Operating Loss Expansion Despite Revenue Growth: The company reported an operating loss of USD 15.5 million in Q3 FY25 compared to USD 8.7 million in Q3 FY24, indicating that cost expansion continues to outpace revenue scaling. This reflects the company’s current phase of aggressive investment toward long-term growth and platform development.
Net Loss Improvement Supported by Non-Operating Gains: Net loss narrowed to USD 7.5 million in Q3 FY25 from USD 9.5 million in Q3 FY24, supported by higher interest income and unrealized gains on investments. This indicates that non-operating income partially offset core operational losses, improving overall bottom-line performance.
Strengthened Balance Sheet and Capital Position: Ondas significantly enhanced its financial position, ending Q3 FY25 with USD 433.4 million in cash compared to USD 30.0 million at FY24-end, supported by equity raises and capital market activities. Pro forma cash stood at approximately USD 840.4 million, positioning the company with one of the strongest balance sheets in its sector to fund acquisitions and expansion.
Strategic Expansion and Backlog Growth Supporting Visibility: Operationally, the company demonstrated strong momentum through backlog expansion to approximately USD 22.2 million in OAS and broader pipeline growth, supported by new defense contracts and global pilot programs. Additionally, strategic acquisitions across robotics, sensing, and counter-UAS technologies strengthened Ondas’ integrated multi-domain platform and long-term revenue visibility.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given to Ondas Inc. (NASDAQ: ONDS) at the closing market price of USD 10.53, as on Mar 17, 2026.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Technology Industry: Communication Equipment
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| ONDS Ondas Holdings Inc. |
0.15 1.64% | 9.27 | - | - | 3.50 | 1.66 | 4.80 | -2.1754 |
| CSCO Cisco Systems Inc |
2.21 1.88% | 119.54 | 31.58 | 19.42 | 6.00 | 7.42 | 6.24 | 21.68 |
| CIEN Ciena Corp |
-8.5 1.95% | 428.22 | 322.25 | 111.11 | 13.97 | 25.62 | 14.02 | 141.08 |
| MSI Motorola Solutions Inc |
-5.53 1.38% | 395.17 | 31.36 | 23.98 | 5.22 | 141.85 | 5.79 | 20.98 |
| ASTS Ast Spacemobile Inc |
-4.77 5.58% | 80.66 | - | - | 436.34 | 12.87 | 332.88 | -2.342 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on March 17, 2026. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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