Ondas (NASDAQ:ONDS), which provides private wireless, drone, and automated data solutions, closed Thursday at $11.21, up 26.52%. The stock is jumping after a beat-and-raise Q1 report and a higher full-year revenue outlook. Investors are watching for defense demand, backlog conversion, and profitability trends next. Trading volume reached 239.4 million shares, about 222% above its three-month average of 74.3 million shares. Ondas IPO'd in 2020 and has grown 82% since going public.
The S&P 500 added 0.78% to finish Thursday at 7,502, while the Nasdaq Composite gained 0.88% to close at 26,635. Within the drone space, industry peer AeroVironment closed at $165.27 (+2.66%) as investors weighed demand across drone-related stocks.
Ondas grew sales 11-fold to $50 million, well above Wall Street’s consensus of $40 million. The company also raised its full-year revenue guidance to at least $390 million, surpassing expectations of $379 million. Best yet for investors, the company continued to scale beautifully, with gross margins reaching 45% -- up from 35% in Q1 last year and 42% in the prior quarter.
Rounding out the great quarter, Ondas announced a new partnership with Palantir to integrate AI capabilities into its platforms. Management also noted that it has the capital to make $4.2 billion in additional acquisitions, not-so-subtly hinting that more M&A may be on the way. Trading at 14 times management’s projected sales for 2026, Ondas remains an intriguing yet volatile investment for highly risk-tolerant growth investors to monitor.
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Josh Kohn-Lindquist has positions in AeroVironment and Palantir Technologies. The Motley Fool has positions in and recommends AeroVironment, Ondas, and Palantir Technologies. The Motley Fool has a disclosure policy.