Ondas Inc. at 17.7 Times Sales Faces a $613 Million Backlog Test

By Daniel Okafor

Ondas Inc. trades at 17.7 times trailing-12-month sales, according to Kala Ghazi's TradingView analysis. The defense-technology acquirer's shares have fallen 43.2% over the past year, while the S&P 500 gained 17.3%. A lower share price has not made the valuation simple. At that multiple, investors pay for future growth rather than current profitability, according to Ghazi.

How does Ondas Inc.'s valuation compare with the market?

Kala Ghazi put Ondas Inc.'s multiple against the S&P 500's roughly 3.1 times sales. That comparison leaves little room for execution misses. Ondas Inc. still has no operating profit to use as a valuation baseline, so investors rely on sales.

The multiple leaves buyers paying for sales that Ondas Inc. has not yet generated, so the valuation rests on future growth rather than current profitability.

At 17.7 times sales, buyers fund revenue the company has yet to produce. They are paying for growth, not present earnings. Ondas Inc. does not provide the operating profit that could anchor a conventional earnings multiple. Its cash balance and order book offer support. They do not settle the core valuation question.

Where has the revenue growth come from?

Ondas Inc. reported revenue of $83.8 million in the June quarter, fiscal Q2 2026, up from $6.27 million a year earlier. Acquisitions drove much of that increase. The company said growth would have been 85% if it had owned the acquired businesses throughout the prior-year period.

As acquired businesses enter the revenue base, Ondas Inc. must separate the contribution of those purchases from the performance of the underlying operations over time.

Ondas Inc. continues to buy defense technology businesses. In August, the company agreed to acquire Aran Defense, a defense-focused division of an Israeli engineering and manufacturing company. In September, Ondas Inc. said it had acquired three additional defense technology businesses. Kala Ghazi noted that the deals could add scale and capabilities. They also complicate the financial picture.

Kala Ghazi's comparison shows revenue rising as losses widen. Ondas Inc. reported a $163 million operating loss in the June quarter, versus $9.3 million a year earlier. Sales growth has not yet become operating profitability. The figures show the cost of expansion, as purchases increased both the revenue base and the losses attached to it.

Can $613 million of backlog become revenue and profit?

Ondas Inc. raised its full-year 2026 revenue target in August to a range of $525 million to $550 million. First-half revenue reached $133.9 million. Management's target therefore places most of the year's revenue in the second half. The coming quarters must carry that burden.

Commercial momentum offers some support. On October 7, Ondas Inc. announced more than $270 million in orders secured since June 30. The company also ended June with about $613 million of backlog, which represents booked sales not yet delivered.

Kala Ghazi treats orders and backlog as sources of visibility, not earnings. Ondas Inc. must still convert those booked sales into recognized revenue and then into operating profit that the business has not yet demonstrated.

Orders and backlog measure different stages of commercial progress. The $270 million covers bookings after the June backlog date. Investors cannot treat the two figures as interchangeable totals. Neither figure guarantees delivery or profit. The gap between an order and recognized profit remains the mechanism that matters.

Profitability, rather than sales momentum alone, remains the central issue in Kala Ghazi's analysis. For the twelve months ended in June, Ondas Inc.'s operating loss equaled about 1.4 times total sales. The company ended June with $1.38 billion in cash and short-term investments, against $13.4 million of debt.

That liquidity gives Ondas Inc. capital to fund spending while it expands. Cash reduces near-term financing pressure. It does not establish that the operating model works.

What happens at the November 11 report?

The next checkpoint, in Kala Ghazi's analysis, is Ondas Inc.'s quarterly report, expected on or around November 11, 2026. Investors will compare reported revenue with the raised $525 million-to-$550 million target.

Results consistent with the target would support the sales multiple. A revenue shortfall would leave buyers paying for sales that remain further in the future, weakening the case for a multiple already set far above the broad market.

For the multiple to hold, Ghazi's analysis requires Ondas Inc. to convert its backlog and new orders into revenue quickly. The company must also stay on track for its 2026 target.

Acquisition-driven growth must prove durable rather than merely purchased through deals. Operating losses must eventually move toward profitability. The $1.38 billion cash position must provide enough runway while the business scales.

Kala Ghazi's analysis treats the November report as the decisive test. A 43.2% share-price decline may make Ondas Inc. look tempting, but the valuation still depends on future execution. The report expected on or around November 11, 2026 will test whether acquisition-driven revenue can become operating profit while Ondas Inc. tracks its raised target.