Ondas Projects Strong Q4 Revenue, Agrees to Merge With Mistral

Ondas Inc. ONDS has announced preliminary financial results for the fourth quarter and full year of 2025. Final results are scheduled to be released on March 25.

For the fourth quarter, the company expects revenues between $29.1 million and $30.1 million, exceeding its prior guidance of $27 million to $29 million. Ondas expects to incur a net loss of $20.9 million to $20.4 million and adjusted EBITDA between a loss of $11.4 million and $10.9 million.

For the full year of 2025, revenues are expected to be between $49.7 million and $50.7 million, surpassing the earlier guidance of $47.6 million to $49.6 million. The company expects a net loss of $53.3-$52.8 million and adjusted EBITDA between a loss of $32.9 million and $32.4 million.

Ondas also reiterated its full-year 2026 revenue guidance of $170 million to $180 million, noting that this outlook does not include any acquisitions announced in 2026. The company added that its cash and cash equivalents exceeded $1.5 billion on a pro-forma basis as of Dec. 31, 2025, including approximately $1 billion raised on Jan. 12, 2026.

In a separate press release, the company announced that it has entered into a merger agreement with Mistral Inc., a U.S.-based defense prime contractor supporting military, federal and public safety programs. Under the agreement, Mistral will merge with a subsidiary of Ondas while continuing its existing contract administration responsibilities.

Taking a Look at Competitors’ Performance

Unusual Machines UMAC recently reported financial results for the fourth quarter and fiscal year ended Dec. 31, 2025. For the fourth quarter, the company generated revenues of approximately $4.9 million compared with $2 million in the year-ago quarter, reflecting a 144% year-over-year increase. Gross margin was approximately 36%, driven by a higher contribution from enterprise sales relative to retail sales. It reported an operating loss of around $9.7 million compared with an operating loss of $2.8 million in the fourth quarter of 2024. The quarter’s results included non-cash stock-based compensation expenses of $6.1 million, up from $1.5 million in the prior-year quarter. Interest income totaled to $0.9 million.

Red Cat Holdings, Inc. RCAT had earlier announced preliminary unaudited revenue results for the fourth quarter and full year ended Dec. 31, 2025. For fourth-quarter 2025, the company expects revenue to be between $24 million and $26.5 million, significantly up from $1.3 million reported in the prior-year period, while 2025 revenue is projected to be between $38 million and $41 million, up about 153% from $15.6 million posted in 2024. For 2026, Red Cat projects continued growth supported by a stronger pipeline, improving operating leverage and its expanding role as a trusted supplier of next-generation unmanned systems. The company is slated to report fourth-quarter results on March 18, after market close.

ONDS’ Price Performance, Valuation and Estimates

Shares of ONDS have gained 1237% in the past year against the Zacks Wireless-National industry’s decline of 3.5%.

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Valuation-wise, ONDS seems overvalued, as suggested by the Value Score of F. In terms of the forward 12-month Price/Sales ratio, ONDS is trading at 19.71, considerably higher than the industry’s multiple of 1.97.

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The Zacks Consensus Estimate for ONDS’ earnings for the current year has been revised south over the past 60 days.

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ONDS currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.