Ondas Inc. CEO Issues Letter to Stockholders Highlighting Transformational Growth and Upcoming Shareholder Vote

Key Highlights from the CEO’s 2026 Annual Letter

Ondas Inc. has released a comprehensive letter to its stockholders from CEO Eric Brock, outlining the company’s significant progress over the past year and providing important updates that could have material implications for investors. Here are the main takeaways that investors should be aware of:

1. Exceptional Financial Performance and Growth Trajectory

• Revenue Growth: Ondas generated \$50.7 million in revenue for 2025, representing an extraordinary 605% year-over-year growth. This surge is attributed to growing demand for its autonomous systems solutions and increased engagement with defense and security customers globally.
• Backlog Expansion: The company’s backlog now stands at \$457 million, providing strong revenue visibility for at least \$375 million in targeted revenue for 2026.
• Balance Sheet Strength: Ondas reports over \$1.4 billion in cash and short-term investments as of March 31, 2026 (unaudited), supporting future investments and strategic flexibility.
• Financial Model: The company is building a model focused on sustained revenue growth, expanding gross profit pools, increasing operating leverage, and delivering attractive long-term returns on invested capital.

2. Strategic Investments and Platform Expansion

• Ondas has invested heavily in building an integrated autonomous systems platform that spans air, ground, and stratospheric solutions. These capabilities support counter-UAS, ISR (Intelligence, Surveillance, Reconnaissance), and mission-critical operations globally.
• The company’s “Core + Strategic Growth” plan is ahead of schedule, focusing on scaling technology, manufacturing, field operations, and go-to-market strategies.
• Significant enhancements have been made to manufacturing, supply chain, and customer support infrastructure, positioning Ondas to serve defense, homeland security, public safety, and critical infrastructure customers more effectively.

3. Aggressive M&A Activity and Future Plans

• M&A Execution: Ondas has completed five acquisitions in 2026 so far, with an aggregate transaction value of \$557 million. These acquired businesses are expected to contribute approximately \$230 million in full-year 2026 revenue.
• Pipeline: The company’s M&A pipeline includes over 25 opportunities, many in advanced stages, with a combined potential run rate of \$500 million in 2026 revenue.
• This aggressive acquisition strategy, alongside organic growth, is expected to significantly scale Ondas’s business over the next 12 to 36 months.

4. Critical Shareholder Vote: Increase in Authorized Shares

• Proposal: At the upcoming annual meeting, shareholders are being asked to approve an increase in authorized shares from 800 million to 1.2 billion.
• Rationale: Over 50% of shares are currently issued and outstanding, and nearly 25% are reserved for warrants with high strike prices (\$20 and \$28 per share) from prior financings. This constrains Ondas’s flexibility, especially for further acquisitions and strategic growth initiatives.
• The company stresses that the additional share authorization is essential to maintain the ability to act decisively on strategic opportunities and M&A activity, which are central to their long-term value creation strategy.
• Management assures shareholders that any new shares will be used responsibly with a focus on long-term value creation, and that interests are fully aligned with shareholders.

5. Strategic Outlook and Market Positioning

• Ondas positions itself as a leader in the ongoing transformation of the defense and security sector, centered on autonomous and unmanned systems. The company expects this structural shift to sustain multi-year growth and create compounded benefits for shareholders.
• The CEO reiterates a commitment to disciplined execution, transparency, and accountability as the company pursues its ambitious growth plans.

6. Forward-Looking Statements and Risks

The letter includes the standard caution regarding forward-looking statements, noting that actual results may differ materially due to various risks and uncertainties as outlined in the company’s SEC filings.

What Investors Need to Know

• Explosive revenue growth and backlog expansion are likely to be viewed positively by the market.
• The proposed increase in authorized shares is significant and could be price sensitive—while enabling growth, it could also raise dilution concerns among current shareholders.
• Successful execution of the M&A pipeline and integration of new businesses could further accelerate the company’s growth and market position.
• The company’s strong balance sheet and strategic clarity provide a solid foundation for continued expansion.

Conclusion

Ondas Inc. is at a pivotal moment, demonstrating explosive growth, strong financials, and a strategic focus on scaling its platform through both organic and inorganic means. The upcoming shareholder vote on increasing authorized shares is a critical event that could shape the company’s ability to capitalize on its expanding pipeline and strategic opportunities. Investors should closely watch developments around this proposal and the company’s ongoing M&A activity, as both could materially impact Ondas’s share value.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with their financial advisors before making any investment decisions. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected.

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