FORT Robotics, Inc., the safety platform developing the Trust Layer for Physical AI, today announced approximately $20 million in new commitments from existing investors, expanding the capital available to support FORT’s next phase of growth. Tiger Global is leading an approximately $10 million financing, with participation from Mark Cuban Companies, that is expected to close this week. Tiger Global also has committed an additional $10 million to the previously announced common equity PIPE (Private Investment in Public Equity) expected to close in connection with the closing of FORT’s proposed business combination with Newbury Street II Acquisition Corp (Nasdaq: NTWO). Together with previously announced PIPE commitments, today’s announcement brings the total committed capital to date in connection with FORT’s proposed business combination to more than $50 million.
The additional investment is expected to help FORT further accelerate its growth by expanding its team and operating capacity to meet growing customer demand and pursue opportunities across the rapidly developing physical AI market. FORT intends to use the additional capital to support new and expanding customer opportunities across warehousing, defense, construction, and other markets adopting increasingly autonomous systems.
FORT’s Trust Layer serves as foundational safety infrastructure for robotic systems and is currently deployed across more than 19,500 units to a global base of over 600 customers, including Agility Robotics, DoorDash, Cobot, Zoox, Textron, and Google DeepMind. Upon the closing of the business combination, the combined company will be named FORT Robotics Holdings, Inc. and is expected to list on the Nasdaq Stock Market under the new ticker symbol “FROB,” subject to regulatory approvals, creating the first publicly traded company dedicated principally to the safe and scalable deployment of physical AI.
“As the opportunity for physical AI continues to expand, we believe FORT plays a critical role in building an independent safety layer that is foundational to its adoption,” said Griffin Schroeder, Partner at Tiger Global. “Our continued investment reflects our conviction in FORT’s progress and promise.”
Tiger Global has been a FORT investor since 2022, when it led the company’s Series B round. The firm’s investment follows a number of recent milestones for FORT, including an expanded partnership with Agility Robotics, the announcement of FORT’s new Connectivity Aggregation software product, and new customer opportunities.
“Automation and autonomy are expanding across nearly every major industry, creating a significant need for solutions that make intelligent machines safe, secure, and reliable,” said Samuel Reeves, Founder and CEO of FORT Robotics. “Tiger Global’s increased commitment gives us additional resources to scale our team and operating capacity as we respond to growing customer demand. We believe the opportunity for FORT has never been greater, and this investment positions us to move faster as physical AI adoption accelerates.”
About FORT Robotics
FORT Robotics is the Trust Layer for Physical AI, with the charter of making autonomous machines safe, secure, and reliable enough to deploy at scale alongside humans. Partnering with FORT gives robot manufacturers and end users the ability to certify safety, maximize efficiency, and accelerate time to market.
Since its founding in 2018, FORT has become a leading provider of safety solutions across the robotics industry, with its solutions being used across warehousing, transportation, manufacturing, construction, agriculture, mining, energy, defense, and other industries. FORT has secured 25 patents and deployed more than 19,500 units to a global base of over 600 customers including Fortune 500 category leaders.
Backed by leading strategic and financial investors including Tiger Global, Mark Cuban Companies, and Prologis Ventures, FORT is pursuing a Nasdaq listing through its business combination with Newbury Street II Acquisition Corp (Nasdaq: NTWO).
More information at www.fortrobotics.com.
About Tiger Global
Tiger Global is a research-driven investment firm pursuing a long-term approach to partnering with high-quality, innovative companies across different stages of their lifecycle. With more than 25 years of experience, we aim to identify and invest in the best companies in the world.
About Newbury Street II Acquisition Corp
Newbury Street II is a blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. Newbury Street II is led by Chief Executive Officer Thomas Bushey, former President of Ondas (Nasdaq: ONDS), a leading provider of private wireless networks and autonomous robotics platforms for industrial infrastructure.
Additional Information and Where to Find It
In connection with the Business Combination, Newbury Street II and the Company have confidentially submitted a draft Registration Statement on Form S-4 (the “Registration Statement”) to the SEC and intend to publicly file the Registration Statement with the SEC, which will include a proxy statement to Newbury Street II shareholders and a prospectus for the registration of Newbury Street II’s securities to be issued in connection with the Business Combination. This press release does not contain all the information that should be considered concerning the Business Combination and is not intended to form the basis of any investment decision or any other decision in respect of the Business Combination. Newbury Street II’s shareholders and other interested persons are advised to read the Registration Statement and other documents filed in connection with the Business Combination, as these materials will contain important information about the Company, Newbury Street II, and the Business Combination. Shareholders may obtain a copy of the Registration Statement, once available, as well as other documents filed by Newbury Street II with the SEC, without charge, at the SEC’s website located at www.sec.gov or by directing a written request to Newbury Street II Acquisition Corp, 121 High Street, Floor 3, Boston, Massachusetts 02110.
BEFORE MAKING ANY VOTING DECISION, INVESTORS AND SECURITY HOLDERS OF NEWBURY STREET II ARE URGED TO READ THE REGISTRATION STATEMENT AND ALL OTHER RELEVANT DOCUMENTS FILED OR THAT WILL BE FILED WITH THE SEC IN CONNECTION WITH THE BUSINESS COMBINATION AS THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE BUSINESS COMBINATION.
Participants in the Solicitation
Newbury Street II, the Company, and their respective directors, executive officers and other members of their management and employees, under SEC rules, may be deemed to be participants in the solicitation of proxies of Newbury Street II’s shareholders in connection with the Business Combination. Investors and security holders may obtain more detailed information regarding the names, affiliations and interests of certain of Newbury Street II’s executive officers and directors in the solicitation by reading Newbury Street II’s filings with the SEC, including the final prospectus of Newbury Street II dated as of October 31, 2024 and filed by Newbury Street II with the SEC on November 1, 2024 (the “IPO Prospectus”). To the extent that holdings of Newbury Street II’s securities have changed from the amounts reported in the IPO Prospectus, such changes have been or will be reflected on Statements of Change in Ownership on Form 4 filed with the SEC. Information concerning the interests of Newbury Street II’s and the Company’s participants in the solicitation, which may, in some cases, be different than those of their respective equity holders generally, will be set forth in the Registration Statement relating to the Business Combination when it becomes publicly available.
No Offer or Solicitation
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of the Securities Act of 1933, as amended, or an exemption therefrom.
NEITHER THE SEC NOR ANY STATE SECURITIES REGULATORY AGENCY HAS APPROVED OR DISAPPROVED THE BUSINESS COMBINATION DESCRIBED HEREIN, PASSED UPON THE MERITS OR FAIRNESS OF THE BUSINESS COMBINATION OR ANY RELATED TRANSACTIONS OR PASSED UPON THE ADEQUACY OR ACCURACY OF THE INFORMATION IN THIS PRESS RELEASE. ANY REPRESENTATION TO THE CONTRARY CONSTITUTES A CRIMINAL OFFENSE.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target,” “continue,” “could,” “may,” “might,” “possible,” “potential,” “predict” or similar expressions that predict or indicate future events or trends or that are not statements of historical matters. The Company has based these forward-looking statements on current expectations and projections about future events. These statements include: projections of market opportunity and market share; new and contemplated investments in the Company; expectations regarding the Company’s ability to execute its business model and the expected financial benefits of such model; expectations regarding the Company’s ability to attract, retain and expand its customer base; expectations regarding the funding of the PIPE commitment; the Company’s deployment of proceeds from capital raising transactions; its expectations concerning relationships with strategic partners and other third parties; future ventures or investments in companies, products, services or technologies; the successful consummation and potential benefits of the proposed transaction and expectations related to its terms and timing; and the potential for the Company to increase in value.
These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions, many of which are beyond the control of the Company.
These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions that may cause the Company’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such statements. Such risks and uncertainties include: that the Company is pursuing an emerging technology, faces significant technical challenges and may not achieve commercialization or market acceptance; the Company’s historical net losses and limited operating history; the Company’s expectations regarding future financial performance, capital requirements and unit economics; the Company’s use and reporting of business and operational metrics; the Company’s competitive landscape; the Company’s dependence on members of its senior management and its ability to attract and retain qualified personnel; the potential need for additional future financing; the Company’s ability to manage growth and expand its operations; potential future acquisitions or investments in companies, products, services or technologies; the Company’s reliance on strategic partners and other third parties; the Company’s ability to maintain, protect and defend its intellectual property rights; risks associated with privacy, data protection or cybersecurity incidents and related regulations; the use, rate of adoption and regulation of artificial intelligence and machine learning; uncertainty or changes with respect to laws and regulations; uncertainty or changes with respect to taxes, trade conditions and the macroeconomic environment; the combined company’s ability to maintain internal control over financial reporting and operate as a public company; the possibility that required regulatory approvals for the proposed transaction are delayed or are not obtained, which could adversely affect the combined company or the expected benefits of the proposed transaction; the risk that shareholders of Newbury Street II could elect to have their shares redeemed, leaving the combined company with insufficient cash to execute its business plans; the occurrence of any event, change or other circumstance that could give rise to the termination of the business combination agreement; the outcome of any legal proceedings or government investigations that may be commenced against the Company or Newbury Street II; failure to realize the anticipated benefits of the proposed transaction; the ability of Newbury Street II or the combined company to issue equity or equity-linked securities in connection with the proposed transaction or in the future; and other factors described in Newbury Street II’s filings with the SEC.
The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of (i) the IPO Prospectus, (ii) the annual report on Form 10-K filed by Newbury Street II with the SEC on March 6, 2026, (iii) the Registration Statement referenced above when publicly available and (iv) other documents filed by Newbury Street II and the Company from time to time with the SEC. These filings will identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. You should not place undue reliance upon any forward-looking statements, which speak only as of the date made. There may be additional risks that neither Newbury Street II nor the Company presently knows, or that Newbury Street II and/or the Company currently believe are immaterial, that could cause actual results to differ from those contained in the forward-looking statements. For these reasons, among others, investors and other interested persons are cautioned not to place undue reliance upon any forward-looking statements in this press release. Past performance by Newbury Street II’s or the Company’s management teams and their respective affiliates is not a guarantee of future performance. Therefore, you should not place undue reliance on the historical record of the performance of Newbury Street II’s or the Company’s management teams or businesses associated with them as indicative of future performance of an investment or the returns that Newbury Street II or the Company will, or may, generate going forward. None of the parties nor any of their representatives gives any assurance that any of Newbury Street II, the Company, or the combined company will achieve its expectations.
View source version on businesswire.com: https://www.businesswire.com/news/home/20261022694729/en/
Key Takeaways ONDS secured EASA certification for its AMPS system on the Bombardier Global 7500.AMPS combines missile detection, tracking and infrared countermeasures to protect aircraft against threats.ONDS' acquisitions expand its capabilities, while orders exceeding $270M improve revenue visibility into 2027. Ondas Inc. (ONDS - Free Report) is strengthening its position in the airborne defense and aircraft protection market following the successful installation and European Union Aviation Safety Agency (“EASA”) certification of its Airborne Missile Protection System (“AMPS”) on the Bombardier Global 7500 aircraft.
Developed by its subsidiary BIRD Aerosystems, AMPS incorporates advanced missile warning, threat detection and confirmation, tracking and directional infrared countermeasures (“DIRCM”) capabilities to protect aircraft against infrared-guided missile threats.
Ondas highlighted that the integrated capabilities of the AMPS suite enable rapid responses while minimizing false alarms. AMPS can be used across a wide range of aircraft, including helicopters, transport and commercial aircraft and VVIP/head-of-state aircraft.
Ondas acquired BIRD Aerosystems in March 2026. The company brings an established international footprint, with its protection technologies installed on more than 700 aircraft spanning over 40 aircraft types, serving U.S. Army, NATO, other armed forces in Asia-Pacific and UN aviation fleets.
Ondas continues strengthening its broader defense portfolio through strategic M&A. Acquisitions have strengthened the portfolio offerings and broadened its reach across multiple domains, including unmanned ground systems, robotics, fiber-optic communications, and subsurface intelligence and demining robotics. In the past year, it has acquired Sentrycs, Apeiro Motion and Zickel, among others. Recent additions include World View, Mistral, Omnisys, DZYNE and Cyberhawk.
In September, Ondas acquired three defense technology businesses (Insignito, Ottopia Defense and Caribou Labs) for $56 million, payable in cash or its common stock, with potential performance-based earn-outs of up to $32 million based upon achieving key performance milestones through 2028.
Before that, the company acquired GATE Technologies and Bron Technologies, adding electronic safe-and-arm (ESADs) devices and advanced electronic fuzing technologies. In August, it entered into a definitive agreement to acquire Aran Defense Ltd., the defense division of Aran Ltd., for approximately $33 million in cash or common stock. Aran Defense would expand Ondas’ Israeli engineering and manufacturing capacity, including roughly 4,400 square meters of facilities.
Ondas secured more than $165 million in aggregate orders from the second half of August through Oct. 1. This, when combined with roughly $105 million of orders disclosed on the last earnings call (Aug. 13), brings total orders to more than $270 million since June 30, improving revenue visibility into 2027.
While the EASA milestone enhances Ondas' market credibility and expands its addressable opportunities, sustained growth will depend on translating certifications and technological capabilities into additional customer contracts and recurring revenues.
Competitive LandscapeCompetition in airborne missile protection remains intense, with established defense contractors like Elbit Systems (ESLT - Free Report) , Northrop Grumman (NOC - Free Report) and BAE Systems (BAESY - Free Report) investing in advanced countermeasure technologies.
Israel-based Elbit Systems’ J-MUSIC and C-MUSIC DIRCM solutions are used to protect aircraft against infrared-guided missile threats, especially man-portable air-defense systems (MANPADS). In January 2026, ESLT secured contracts worth approximately $150 million to supply DIRCM systems to European customers.
Northrop Grumman is a leading name in the aerospace sector. NOC provides Large Aircraft Infrared Countermeasures (“LAIRCM”) systems that detect, track and counter infrared-guided missile threats. This laser-based DIRCM solution is installed on more than 1,500 aircraft across 85 aircraft types.
BAE Systems' AN/AAR-57 Common Missile Warning System (“CMWS”) protects aircraft against infrared missile threats, with more than 3,000 systems installed across over 40 aircraft platforms. In February, BAE Systems secured $137 million Foreign Military Sales contracts from the U.S. Army to deliver CMWS to allied nations.
Ondas (NASDAQ:ONDS – Get Free Report) and MTU Aero Engines (OTCMKTS:MTUAY – Get Free Report) are both industrials companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, institutional ownership, valuation, risk and earnings.
Risk and Volatility Ondas has a beta of 2.92, indicating that its stock price is 192% more volatile than the S&P 500. Comparatively, MTU Aero Engines has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500.
Institutional and Insider Ownership 37.7% of Ondas shares are owned by institutional investors. Comparatively, 0.0% of MTU Aero Engines shares are owned by institutional investors. 1.7% of Ondas shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability This table compares Ondas and MTU Aero Engines’ net margins, return on equity and return on assets. Net Margins Return on Equity Return on Assets Ondas 93.55% -14.20% -7.15% MTU Aero Engines 10.43% 22.42% 7.72% Analyst Recommendations This is a summary of recent recommendations for Ondas and MTU Aero Engines, as provided by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Ondas 1 1 10 0 2.75 MTU Aero Engines 2 3 4 1 2.40 Ondas currently has a consensus target price of $16.89, suggesting a potential upside of 179.58%. Given Ondas’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Ondas is more favorable than MTU Aero Engines.
Valuation and Earnings This table compares Ondas and MTU Aero Engines”s revenue, earnings per share (EPS) and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Ondas $50.73 million 69.33 -$132.02 million ($0.07) -86.29 MTU Aero Engines $9.91 billion 2.14 $1.15 billion $10.21 19.31 MTU Aero Engines has higher revenue and earnings than Ondas. Ondas is trading at a lower price-to-earnings ratio than MTU Aero Engines, indicating that it is currently the more affordable of the two stocks.
Summary Ondas beats MTU Aero Engines on 8 of the 15 factors compared between the two stocks.
About Ondas (Get Free Report)
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.
(Get Free Report)
MTU Aero Engines AG, together with its subsidiaries, engages in the development, manufacture, marketing, and maintenance of commercial and military aircraft engines, and aero-derivative industrial gas turbines in Germany, other European countries, North America, Asia, and internationally. It operates through two segments: Original Equipment Manufacturing (OEM Business); and Maintenance, Repair, and Overhaul (MRO Business). The company offers commercial aircraft engines for wide body jets, narrow body and regional jets, business jets, and turboprops; military aircraft engines for fighter jets, helicopters, and transporters; and industrial gas turbines. It also maintains, repairs, and overhauls commercial and military engines; and manufactures and markets various spare parts. The company was formerly known as MTU Aero Engines Holding AG and changed its name to MTU Aero Engines AG in May 2013. MTU Aero Engines AG was founded in 1913 and is headquartered in Munich, Germany.
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Successful installation and European aviation certification of advanced missile protection suite expands Ondas' presence in the global VVIP aircraft protection market Milestone demonstrates Ondas' growing capabilities in delivering integrated airborne defense technologies for sophisticated aircraft platforms and government customers worldwide WEST PALM BEACH, FL / ACCESS Newswire / October 13, 2026 / Ondas Inc. (Nasdaq:ONDS) ("Ondas" or the "Company"), a leading provider of advanced autonomous systems and next-generation defense and security technologies and service, announced today the successful completion of the installation and European Union Aviation Safety Agency (EASA) certification of its advanced Airborne Missile Protection System (AMPS), incorporating Directional Infrared Countermeasures (DIRCM), on a Bombardier Global 7500 aircraft. The certification marks an important milestone in Ondas' expansion into the global airborne defense and aircraft protection market, adding another high-value VVIP aircraft platform to the growing range of aircraft protected by the Company's advanced missile protection technologies.
Ondas Holdings Inc. (NASDAQ:ONDS – Get Free Report) shares gapped up prior to trading on Monday. The stock had previously closed at $6.73, but opened at $7.06. Ondas shares last traded at $6.8110, with a volume of 10,973,743 shares traded.
Analyst Upgrades and Downgrades Several equities analysts have commented on the company. Citigroup began coverage on Ondas in a report on Monday, October 5th. They set a “market outperform” rating on the stock. LADENBURG THALM/SH SH lifted their price target on shares of Ondas from $21.50 to $22.75 and gave the company a “buy” rating in a research report on Monday, August 17th. Wall Street Zen cut shares of Ondas from a “sell” rating to a “strong sell” rating in a research note on Saturday, August 15th. Oppenheimer upped their price objective on shares of Ondas from $16.00 to $18.00 and gave the stock an “outperform” rating in a report on Friday, August 14th. Finally, Weiss Ratings downgraded shares of Ondas from a “hold (c-)” rating to a “sell (d+)” rating in a report on Tuesday, August 4th. Ten analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $16.89.
Read Our Latest Stock Analysis on Ondas
Ondas Stock Performance The firm has a 50 day moving average of $7.95 and a two-hundred day moving average of $8.76. The stock has a market cap of $3.95 billion, a P/E ratio of -96.79 and a beta of 2.92. Ondas (NASDAQ:ONDS – Get Free Report) last released its earnings results on Thursday, August 13th. The company reported ($0.19) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.09) by ($0.10). The business had revenue of $83.77 million during the quarter, compared to analyst estimates of $67.97 million. Ondas had a net margin of 93.55% and a negative return on equity of 14.20%. On average, sell-side analysts anticipate that Ondas Holdings Inc. will post -0.47 EPS for the current fiscal year.
Insider Activity at Ondas In other news, CFO Neil Laird sold 4,952 shares of the firm’s stock in a transaction on Thursday, September 24th. The shares were sold at an average price of $7.74, for a total value of $38,328.48. Following the sale, the chief financial officer owned 42,246 shares in the company, valued at approximately $326,984.04. This trade represents a 10.49% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Richard Cohen sold 7,500 shares of the business’s stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $8.96, for a total transaction of $67,200.00. Following the transaction, the director directly owned 261,836 shares in the company, valued at $2,346,050.56. This trade represents a 2.78% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.67% of the stock is currently owned by corporate insiders.
Institutional Trading of Ondas A number of hedge funds have recently bought and sold shares of ONDS. Beaird Harris Wealth Management LLC grew its position in Ondas by 3.8% in the 4th quarter. Beaird Harris Wealth Management LLC now owns 27,250 shares of the company’s stock worth $266,000 after purchasing an additional 1,000 shares during the last quarter. State of Wyoming increased its holdings in shares of Ondas by 31.5% during the 1st quarter. State of Wyoming now owns 6,809 shares of the company’s stock worth $62,000 after purchasing an additional 1,631 shares during the period. NFSG Corp raised its position in shares of Ondas by 200.0% during the first quarter. NFSG Corp now owns 3,000 shares of the company’s stock valued at $27,000 after buying an additional 2,000 shares during the last quarter. Steadtrust LLC raised its position in shares of Ondas by 10.3% during the second quarter. Steadtrust LLC now owns 21,473 shares of the company’s stock valued at $177,000 after buying an additional 2,000 shares during the last quarter. Finally, EverSource Wealth Advisors LLC raised its position in shares of Ondas by 5,373.7% during the first quarter. EverSource Wealth Advisors LLC now owns 3,120 shares of the company’s stock valued at $28,000 after buying an additional 3,063 shares during the last quarter. 37.73% of the stock is owned by institutional investors.
Ondas Company Profile (Get Free Report)
Ondas Holdings Inc (NASDAQ: ONDS) develops autonomous drone systems and private wireless networking solutions for industrial, government and critical-infrastructure applications. Its technologies are designed to support remote monitoring, inspection, security, public safety and other operations that require persistent data collection and reliable communications.
Through its subsidiaries, including American Robotics and Ondas Networks, the company offers autonomous drone platforms, command-and-control software, aerial intelligence solutions and industrial-grade wireless networks.
Further Reading Five stocks we like better than Ondas 3 REITs That May Win in a Higher Interest Rate Environment Broadcom’s Anthropic Bet Gets Bigger as $60 Billion Financing Raises the Stakes Insider Buying Signals Opportunity in H.B. Fuller, FocalTherics, Cardinal 5 Retail Picks to Watch as the Holiday Shopping Season Nears Receive News & Ratings for Ondas Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Ondas and related companies with MarketBeat.com's FREE daily email newsletter.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of ONDS, PLTR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Disclaimer: I am not an investment advisor or professional. This article is my own personal opinion and is not meant to be a recommendation of the purchase or sale of stock. The investments and strategies discussed within this article are solely my personal opinions and commentary on the subject. This article has been written for research and educational purposes only. Anything written in this article does not take into account the reader’s particular investment objectives, financial situation, needs, or personal circumstances and is not intended to be specific to you. Investors should conduct their own research before investing to see if the companies discussed in this article fit into their portfolio parameters. Just because something may be an enticing investment for me or someone else, it may not be the correct investment for you.
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Ondas Inc. (NASDAQ:ONDS) stock is up 4% to $7 in morning trading after the announcement of Regna AI, a new AI venture powered by Palantir Technologies (NASDAQ:PLTR | PLTR Price Prediction). Software backed by a heavyweight AI platform is pulling…
Ondas Inc. (NASDAQ:ONDS) stock is up 4% to $7 in morning trading after the announcement of Regna AI, a new AI venture powered by Palantir Technologies (NASDAQ:PLTR | PLTR Price Prediction). Software backed by a heavyweight AI platform is pulling buyers into this corner of the defense market, while a new airframe on its own is drawing a shrug.
Meanwhile, Red Cat Holdings (NASDAQ:RCAT) stock is nearly unchanged at $5.79, a quiet reaction to the debut of its TRICHON drone that contrasts sharply with the rally in Ondas stock. Red Cat stock was down 27% year to date, matching the decline in Ondas stock over that stretch, so the split between the two traces back to fresh company news. Both companies sell into the same counter-drone and autonomous defense demand, which makes the gap in their reactions easier to read.
Sector funds are moving in the opposite direction from Ondas stock. The Defiance Drone and Modern Warfare ETF (NYSEARCA:JEDI) is down 1%, a divergence from the gain in Ondas stock that points to a company-specific catalyst. By comparison, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is essentially flat.
Palantir Partnership Gives Ondas a New Software Layer Ondas and Palantir announced the formation of Regna AI, a standalone private company bootstrapped by Ondas and powered by Palantir. Its mandate is to deliver mission-specialized, fine-tuned AI models inside customers’ own sovereign environments, so the models run within systems those customers control. Palantir supplies the model-training infrastructure and forward-deployed engineering behind the effort.
First in line as a customer is Ondas itself, which plans to deploy those models to run autonomous mission orchestration on the edge. That extends an existing partnership between the two companies, which previously co-developed SkyWeaver, a multi-domain intelligence, surveillance and reconnaissance (ISR) platform built on adaptive agentic AI at the edge. Throughout its broader business, Ondas sells integrated autonomous platforms across air, ground and stratospheric environments to defense, homeland security and critical infrastructure customers.
Ondas Names a Partner While Red Cat Unveils a Product Red Cat launched Red Cat Aerial, a single brand combining the teams and technology previously represented by Teal Drones and FlightWave Aerospace. Alongside the rebrand, it unveiled TRICHON, a hand-launched, long-endurance tricopter built for ISR missions. Both are on display at the Association of the United States Army’s annual meeting in Washington, D.C.
Hardware is central to the Red Cat model. A new platform like TRICHON turns into revenue only once units are ordered and deployed, and this announcement paired a brand consolidation with a product debut and no contract, which helps explain the flat reaction in Red Cat stock.
Ondas named a partner and a platform instead. Because the company already sells complete autonomous systems, a software venture broadens what it can offer existing customers, and Regna AI could also give Ondas a software layer to sell beyond its own airframes, with Palantir’s platform underneath it.
What to Watch Next Transparency is the next missing piece for ONDS stock, since Regna AI has no disclosed customer beyond Ondas and no public terms, and anyone following Ondas can watch for an outside customer or published financial terms.
Red Cat faces a different challenge, because TRICHON needs orders before it can show up in revenue. Shareholders may want to check for order announcements tied to TRICHON or the wider Red Cat Aerial lineup. Each confirmed contract could move the tricopter from showcase hardware toward deployed units.
Ondas and Red Cat stocks can swing sharply. The gap between ONDS stock and the JEDI drone ETF shows how fast company news can override a sector trend. Speculative defense names like these belong in a small, fenced-off pocket of a portfolio with real sizing rules (we wrote a free playbook on exactly that here: Small Stakes, Big Swings). Investors should size their positions so one announcement can’t move their overall portfolio too far.
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Ondas Inc. (NASDAQ:ONDS) is expanding its autonomous defense and security business through rising orders, acquisitions and broader customer adoption, while analysts point to the company’s exposure to several growing defense markets.
The company designs, develops, manufactures, sells and supports FullMAX software-defined radio (SDR) technology across the U.S., Israel and India. It operates through two segments — Ondas Networks and Ondas Autonomous Systems — giving it exposure to both communications infrastructure and autonomous systems use cases.
The stock slid almost 30% in 2026 due to widening financial losses and shareholder dilution from acquisitions, despite strong top-line revenue growth.
On Wednesday, Ondas announced that it had secured more than $165 million in orders from the second half of August through Oct. 1. Combined with roughly $105 million announced earlier in the third quarter, orders since June 30 exceeded $270 million.
The company said the new business expanded its backlog and strengthened revenue visibility into 2027.
Orders came from multiple regions and product categories, reflecting demand across Ondas’ autonomous defense and security portfolio.
$56 Million European Order Expands Precision Strike BusinessOndas also secured a $56 million European defense order for Electronic Safe & Arm Devices tied to a loitering munition program this week.
The contract marks Ondas’ first major defense order since acquiring GATE Technologies and Bron Technologies and expands its Precision Strike business.
The company is also pursuing additional opportunities across NATO and allied defense markets.
Ondas separately reported progress with ULTRA, a candidate for a U.S. Department of Defense program of record, and its IonStrike "Shahed Killer."
"Importantly, both ULTRA and IonStrike have captured strategically significant orders and are advancing through key customer validation milestones, which we believe can open substantially larger markets," CEO Eric Brock said.
Citizens Turns Bullish On OndasOn Oct. 5, Citizens initiated coverage of Ondas with an Outperform rating, describing the company as a diversified autonomous-systems platform positioned for growth.
The firm said Ondas participates in four high-growth submarkets within the broader autonomous-systems industry.
Ondas Targets a Broader Defense OpportunityOndas is expanding its manufacturing capacity, engineering capabilities and customer relationships as it targets more areas of autonomous defense.
The company sees opportunities across counter-drone systems, loitering munitions, surveillance, ground robotics, electronic warfare, AI-enabled command systems and infrastructure monitoring.
Ondas believes rising global defense spending and wider adoption of autonomous technologies are creating a multi-billion-dollar opportunity across defense, security and industrial markets.
Top ETF Exposure Defiance Drone and Modern Warfare ETF (NYSE:JEDI): 6.43% Weight REX Drone ETF (NASDAQ:DRNZ): 11.77% Weight Significance: Because Ondas carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely trigger automatic buying or selling of the stock.
ONDS Price ActionOndas shares were down 2.12% at $6.81 at publication on Friday, according to Benzinga Pro data.
Photo via Shutterstock
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Key Takeaways Ondas trades below its industry valuation as shares fall 24% year to date despite rapid revenue growth.ONDS posted $83.8 million in Q2 revenues, while backlog reached $613M and pro forma backlog hit $757M.Ondas targets company-wide adjusted EBITDA profitability by Q4 2027 as integration and execution risks rise. Ondas, Inc. (ONDS - Free Report) trades at a forward 12-month price-to-sales ratio of 4.65X, a discount compared with the Zacks Wireless National industry’s 8.67X and the Zacks Computer and Technology sector’s 6.24X.
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Moreover, shares of the company have lost 24% year to date against the industry’s growth of 150.3%.
The valuation discount against a weak share-price backdrop suggests that investors remain cautious despite Ondas’ rapid expansion across the autonomous systems space, including counter-UAS, precision strike, intelligence, surveillance and reconnaissance and autonomous ground systems.
At first glance, the pullback, coupled with the discounted sales multiple, could make the stock appear increasingly attractive. However, the investment case is not straightforward.
Ondas is pursuing an aggressive acquisition strategy while investing heavily in the infrastructure needed to support a much larger business. However, M&A brings significant execution risks.
Against this backdrop, let’s do a deep dive to assess investment prospects and make an informed decision.
Ondas’ Momentum Is in Sharp Contrast to Share Price DeclineOndas’ second-quarter 2026 revenues surged more than 13 times year over year to $83.8 million and increased 67% sequentially. The top-line growth reflected acquisitions and solid execution across Ondas' core business. Pro forma organic revenues increased 85% year over year.
Visibility is improving alongside revenues. Reported backlog reached approximately $613 million as of June 30, with pro forma backlog of $757 million including DZYNE and Cyberhawk acquisitions. Management is not only focusing on selling drones but on connecting a portfolio of technologies into integrated systems spanning detection, intelligence, command and control, electronic warfare and kinetic defeat.
Since reporting second-quarter results, Ondas has continued to broaden its autonomous-defense platform through acquisitions. In September, Ondas acquired three defense technology businesses (Insignito, Ottopia Defense and Caribou Labs) for $56 million, payable in cash or its common stock, with potential performance-based earn-outs of up to $32 million based upon achieving key performance milestones through 2028.
Before that, the company acquired GATE Technologies and Bron Technologies, adding electronic safe-and-arm (ESADs) devices and advanced electronic fuzing technologies. Ondas will pay $205 million, comprising $105 million in cash and $100 million in its stock, plus a working-capital adjustment. The transaction also includes up to $185 million of performance-based earn-outs through 2028. Ondas expects GATE to generate $65 million of full-year 2026 revenues, rising to $180 million in 2028, with more than $130 million in aggregate adjusted EBITDA through 2028.
On Oct. 5, the company announced a $56 million order for ESADs, supporting a European loitering munition program. The order represents an important early commercial development following Ondas’ acquisition of GATE Technologies and Bron Technologies.
In August, it entered into a definitive agreement to acquire Aran Defense Ltd., the defense division of Aran Ltd., for approximately $33 million in cash or common stock. Aran Defense would expand Ondas’ Israeli engineering and manufacturing capacity, including roughly 4,400 square meters of facilities.
Counter-UAS Portfolio Continues to ExpandCounter-UAS is an important tailwind for the company. Ondas recently introduced Dronebuster REACH, a long-range variant of its Dronebuster family of non-kinetic counter-drone systems. The product launch could strengthen Ondas’ position in the rapidly developing counter-drone market by addressing a key operational gap – defeating drones before they enter the effective range of handheld systems.
The first Dronebuster REACH system is already under contract for delivery to the Office of Naval Research following customer acceptance testing. The system will support C-UAS research, evaluation and testing activities, providing an early validation point for Ondas’ new product.
Ondas is combining DZYNE's Sawtooth technology with Sentrycs' Cyber-over-RF capabilities for counter-UAS applications. On the last earnings call, Ondas highlighted that IonStrike (through DZYNE) was positioned to begin receiving commercial-volume orders and initial deliveries during the second half of 2026.
Sentrycs’ second-quarter pro forma revenues increased approximately 298% year over year, highlighting the commercial momentum in this part of the portfolio.
Precision Strike represents another important near-term revenue catalyst. Mistral is preparing to deliver against more than $240 million of aggregated orders under the U.S. Army's $982 million Lethal Unmanned Systems IDIQ program. On the last earnings call, management noted that the commercial deliveries are expected to ramp in the second half of 2026 and continue into 2027.
Execution Remains the Key QuestionThe scale of Ondas’ opportunity is increasing, but so is the complexity of executing its strategy.
Ondas has added World View, Mistral, Omnisys, DZYNE and Cyberhawk during 2026 and expanded further through the acquisitions of GATE Technologies, Bron Technologies, Insignito, Ottopia Defense and Caribou Labs.
The company deployed about $325 million of cash in the third quarter to complete DZYNE and Cyberhawk acquisitions before announcing and completing additional acquisitions subsequently. It is also expanding production, sales and marketing reach and field-support infrastructure.
Multiple acquisitions in such a short period can create integration overload and execution risks, since achieving targets depends on timely integration and conversion of backlog into revenues.
Profitability Remains Distant for ONDSFor all the excitement surrounding revenue growth, second-half ramp and profitability remain the key tests for ONDS.
The company raised its full-year revenue outlook to $525-$550 million from the previous target of at least $525 million, representing more than 10 times the reported figure for 2025. At the midpoint, the outlook implies more than 30% year-over-year organic growth on a pro forma basis. The pace of order conversion and production scaling will determine whether ONDS can deliver the steep second-half ramp embedded in its outlook
Coming to profitability, second-quarter operating expenses were $199 million, substantially exceeding the quarterly revenues of $83.8 million.
While more than half of expenses consisted of noncash or acquisition-related items, adjusted cash operating expenses still totaled approximately $93 million. The company incurred approximately $4.4 million of acquisition-related transaction costs.
Adjusted EBITDA remained a loss of approximately $51 million. The company expects the second quarter to represent the peak adjusted EBITDA loss, but actual profitability still depends on anticipated second-half revenue ramp materializing. At the last earnings call, management cautioned about some gross-margin pressure during the second half of 2026 because of product mix and excess capacity associated with newly acquired businesses.
However, the company expects adjusted EBITDA losses to narrow beginning in the third quarter and has pulled forward its profitability timeline. Management now targets adjusted EBITDA profitability for the operating platform, including OAS and Ondas Sentinel, by the fourth quarter of 2026 and company-wide adjusted EBITDA profitability by the fourth quarter of 2027.
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That makes the next several quarters particularly important. Strong revenue growth without corresponding improvement in operating leverage would weaken the core thesis.
Given these factors, analysts have downgraded their earnings estimates for ONDS’ current year over the past 60 days.
Competition in the Drone SpaceOndas operates in a highly competitive autonomous defense and unmanned systems market, competing with established and emerging players such as Kratos Defense & Security Solutions (KTOS - Free Report) , Red Cat Holdings (RCAT - Free Report) and AeroVironment (AVAV - Free Report) .
Intense competition could pressure market share, making product differentiation, execution and rapid commercialization critical to sustaining growth.
Price Performance
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Year to date, RCAT, AVAV and KTOS have also registered declines of 20%, 40.5%, and 42.2%, respectively. This could be due to investor caution around heavy investment requirements and execution risks across the rapidly expanding drone and autonomous-defense market.
The forward 12-month price/sales multiple for KTOS, AVAV and RCAT stands at 3.91X, 3.1X and 4.09X, respectively.
ONDS Stock: How to Approach?Although ONDS’ share price decline and valuation discount warrant attention, greater visibility into profitable growth would improve the risk-reward proposition.
With ONDS carrying a Zacks Rank #4 (Sell), investors need to exercise caution and wait for clearer evidence of improving profitability.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ondas just announced a massive wave of new orders spanning multiple regions and programs, yet its stock is falling in lockstep with rivals that said nothing at all. Something bigger than one company's bookings is driving this drone selloff.
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A burst of new business at Ondas Inc. (NASDAQ:ONDS) is running straight into a sector-wide selloff. Ondas stated it secured more than $165 million in aggregate new orders since its last update, and that bookings since the end of June now total more than $270 million. The drone group is being sold together, and Ondas stock is going with it.
Ondas stock is down 5% to $7.03 in afternoon trading, and the order news is offering no visible support.
Checking in on the peers, AeroVironment (NASDAQ:AVAV | AVAV Price Prediction) stock is falling 5% to $136.09, almost exactly matching the decline in Ondas stock. Red Cat Holdings (NASDAQ:RCAT) stock is also sliding 5% to $6.01, leaving three defense drone names with nearly identical losses.
Meanwhile, the Defiance Drone and Modern Warfare ETF (NYSEARCA:JEDI) is down 4% to $24.11. For a broad-market gauge, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is falling just 0.3% to $776.73. That spread places the pressure directly on Ondas and its drone rivals, because the broad market is barely lower.
Ondas Orders Span Geographies and Programs Ondas stated the order activity was broad-based across regions and product categories, expanding the company’s backlog and extending revenue visibility into next year. The company also cited customer and program validation milestones, including progress on ULTRA (a candidate to become a U.S. defense program of record) and on IonStrike. An award for electronic safe and arm devices, captured through a European customer in the loitering munitions market, rounded out the Ondas update.
Chairman and CEO Eric Brock stated that the strength and breadth of the order activity demonstrate increasing demand across the Ondas portfolio, and added that both ULTRA and IonStrike are advancing through validation milestones the company believes can open substantially larger markets.
The declines in AeroVironment stock (5.19%) and Red Cat stock (5.21%) bracket the 5.2% slide in Ondas shares almost exactly. Even with a company-specific announcement in hand, Ondas stock is showing no separation from two rivals that reported nothing. Order news at Ondas left the group’s pricing unchanged.
Orders Versus Revenue at Ondas Ondas stock bulls argue that orders are the leading indicator in defense procurement. Customers are choosing this company. Adding this much to its order book in a single quarter, whatever the share price is doing, shows demand that eventually feeds future revenue.
On the bearish side, an order is a promise and revenue is a result. The market has watched the Ondas backlog grow without yet seeing the conversion. AeroVironment and Red Cat shares are down by nearly the same amount with no announcement at all, which reinforces the point.
What to Watch Next For Ondas, the key variable is how quickly the backlog converts to recognized revenue, because order announcements have stopped moving the shares on their own. Investors should track progress on the ULTRA and IonStrike programs and may want to keeps their ONDS share exposure minimal for now.
A key question is whether the Defiance Drone and Modern Warfare ETF stabilizes. A recovery in the JEDI fund could signal that selling across Ondas, AeroVironment and Red Cat is easing.
Contact [email protected] for any questions or corrections.
Over $270 million in orders secured since June 30, expanding backlog and strengthening revenue visibility into 2027
Order activity spans Ondas' autonomous defense portfolio as ULTRA and IonStrike advance through key customer validation milestones
Includes recently announced $56 million Electronic Safe & Arm Devices ("ESAD") award demonstrating traction with a leading European neo-prime and potential for re-occurring program demand
WEST PALM BEACH, FL / ACCESS Newswire / October 7, 2026 / Ondas Inc. (NASDAQ:ONDS) ("Ondas" or the "Company"), a leading provider of autonomous systems and advanced defense and security technologies, today announced that it secured more than $165 million in aggregate orders during the second half of August through October 1st. Combined with approximately $105 million in orders secured earlier in the third quarter and disclosed as of the Company's August 13 investor call, orders secured since June 30 totaled over $270 million, expanding the Company's backlog and strengthening revenue visibility into 2027.
Order activity was broad-based across geographies and product categories, reflecting demand for Ondas' scalable, cost-effective autonomous defense and security technologies. The Company also achieved customer and program validation milestones across its portfolio, including meaningful progress with ULTRA, a U.S. Department of War program of record candidate, and the IonStrike "Shahed Killer" which continues to validate the substantial market opportunity with U.S. defense customers for those platforms. Ondas believes its broad portfolio, expanding manufacturing footprint, engineering capabilities and customer relationships position the Company to address multiple layers of the autonomous defense ecosystem and to pursue cross-selling and integration opportunities.
"The strength and breadth of our order activity demonstrate the increasing demand we are seeing across the Ondas portfolio," said Eric Brock, Chairman and CEO of Ondas. "Importantly, both ULTRA and IonStrike have captured strategically significant orders and are advancing through key customer validation milestones, which we believe can open substantially larger markets. We look forward to sharing more details on ULTRA and IonStrike as we move through the fourth quarter."
"At the same time, the recently announced ESAD award captured by Bron for the fast-growing loitering munitions market in Europe demonstrates the value of adding differentiated technologies that are being designed into next-generation defense platforms. We believe these developments reinforce our strategy of building Ondas into a scaled autonomous defense and security platform capable of delivering integrated, mission-critical technologies across the United States and allied markets," Brock concluded.
The Company believes the convergence of rising global defense spending, operational lessons from current conflicts, and accelerating adoption of autonomous technologies is creating a significant multi-billion-dollar industry wide opportunity across its core defense and security markets. Many of the same technologies also address mission-critical needs in large industrial and commercial markets, supporting Ondas' dual-purpose strategy of developing and scaling autonomous solutions across both defenseand industrial applications. Ondas expects demand to continue growing for scalable, cost-effective and integratedsolutions spanning Counter-UAS, loitering munition systems, ISR, ground robotics, electronic warfare, AI-enabled command-and-control, and critical infrastructure inspection and monitoring.
About Ondas Inc.
Ondas Inc. (NASDAQ:ONDS) is a leading provider of autonomous systems, robotics, and mission-critical technologies for defense, homeland security, public safety, critical infrastructure, and industrial markets. The Company develops and deploys integrated unmanned and autonomous platforms across air, ground, and stratospheric environments, including autonomous drone systems, counter-UAS technologies, robotic ground systems, advanced unmanned aircraft and propulsion solutions, demining and engineering systems, and integrated sensing and communications technologies designed to support intelligence, surveillance, reconnaissance, security, and operational missions in complex environments. Ondas' solutions are deployed globally by government, defense, and commercial customers to protect infrastructure, borders, transportation networks, personnel, and strategic assets.
For additional information on Ondas Inc., visit www.ondas.com.
Forward-Looking Statements
Statements made in this release that are not statements of historical or current facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance, or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors, including the risks discussed under the heading "Risk Factors" discussed under the caption "Item 1A. Risk Factors" in Part I of our most recent Annual Report on Form 10-K or any updates discussed under the caption "Item 1A. Risk Factors" in Part II of our Quarterly Reports on Form 10-Q and in our other filings with the SEC. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise that occur after that date, except as required by law.
Contacts
IR Contact for Ondas Inc.
888-657-2377
[email protected]
Media Contact for Ondas Inc.
Escalate PR
[email protected]
Preston Grimes
Marketing Manager, Ondas Inc.
[email protected]
Ondas Inc. (NASDAQ:ONDS) stock is trading higher by more than 3% on Monday after the company secured a $5.6 million order for Electronic Safe & Arm Devices, or ESADs, supporting a European loitering munition program.
Ondas Lands New Defense OrderThe contract marks Ondas’ first such order since acquiring GATE Technologies and Bron Technologies. Production will be supported by the company’s operations in Poland.
GATE develops ESADs and electronic fuzing technologies for loitering munitions, unmanned aerial vehicles, missiles and rockets. Bron provides European manufacturing, certification and market access through its Polish operations.
The order expands Ondas’ Precision Strike business and increases its exposure to the growing precision weapons market.
Ondas said the contract reflects demand for mission-critical safe-and-arm and electronic fuzing systems. European and allied defense customers are prioritizing scalable production, resilient supply chains and proven technologies.
The company is also pursuing additional opportunities across NATO and allied defense markets.
Earnings And Analyst OutlookOndas’ next major catalyst could come with its estimated Nov. 12, 2026, earnings report.
Analysts expect a loss of 6 cents per share, compared with a loss of 3 cents a year earlier. Revenue is projected at $150.59 million, up sharply from $10.10 million in the prior-year period.
Ondas carries a Buy consensus rating and an average price forecast of $17.35 across eight analysts. Forecasts range from $13 to $22.75.
Citizens initiated coverage Monday with a Market Outperform rating and a $14 price forecast. Needham maintained a Buy rating and $19 forecast on Sept. 14, while Ladenburg Thalmann raised its forecast to $22.75 on Aug. 17.
Citizens Initiates Coverage With Market Outperform RatingCitizens initiated coverage of Ondas with a Market Outperform rating and a $14 price forecast. Analyst Trevor Walsh sees the company building a scaled autonomous defense platform across aerial security, precision strike, intelligence and surveillance, and autonomous ground systems.
The analyst pointed to Ondas’ rapid acquisition strategy, international footprint and “One Ondas” operating model as key strengths. Citizens estimates an international addressable market of about $118 billion across the company’s four core segments.
Citizens also sees an opportunity for greater operating leverage as Ondas integrates its acquired businesses. However, the firm flagged risks from the pace of acquisitions, shareholder dilution, limited visibility into organic growth and geopolitical exposure.
ONDS ETF ExposureThe Defiance Drone and Modern Warfare ETF (NYSE:JEDI) has a 6.43% weighting in ONDS, while the REX Drone ETF (NASDAQ:DRNZ) carries an 11.77% weighting.
The relatively large positions mean sizable inflows or outflows from the ETFs could result in corresponding purchases or sales of Ondas shares.
ONDS Stock Price ActionOndas shares were up 3.38% at $7.63 at the time of publication Monday, according to Benzinga Pro data.
Citizens turned bullish on Monday on autonomous-systems firm Ondas Inc. (NASDAQ:ONDS), initiating coverage with an Outperform rating as it pitches the company as a diversified platform positioned for growth.
Citizens said Ondas spans four high-growth submarkets within the broader autonomous systems category.
Ondas Wins $56 Million European Defense ContractAnnounced Monday, the $56 million order is for Electronic Safe & Arm Devices tied to a European loitering munition program. It is Ondas’ first major defense order since buying GATE Technologies and Bron Technologies.
The deal expands Ondas’ Precision Strike business and increases its exposure to the precision weapons market. Ondas is also pursuing additional opportunities across NATO and allied defense markets. Contract details cite demand for mission-critical systems.
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Ondas Buys Insignito, Ottopia Defense and Caribou LabsOndas said Sept. 23 it acquired three defense businesses — Insignito, Ottopia Defense and Caribou Labs — for $56 million in cash or Ondas stock, with potential earnouts up to $32 million.
The purchases add technologies ranging from systems already deployed in active conflict environments to capabilities slated for near-term mission integration. T
The acquired businesses are expected to integrate across Ondas’ existing platforms, further strengthening its autonomous defense capabilities.
ONDS Stock Price Activity: Ondas stock was up 2.76% at $7.44 at the time of publication on Monday, according to data from Benzinga Pro.
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Stratasys Ltd. (Nasdaq: SSYS) (âStratasysâ or the âCompanyâ) today announced that it will hold its 2026 Annual General Meeting of Shareholders (the âM
First Electronic Safe & Arm Device order since the GATE Technologies and Bron Technologies acquisitions, supported by Ondas' production operations in Poland
Ondas is building the precision strike technology stack across platforms, navigation, mission systems, propulsion and weapon components
WEST PALM BEACH, FL / ACCESS Newswire / October 5, 2026 / Ondas Inc. (Nasdaq:ONDS) ("Ondas" or the "Company"), a leading provider of advanced autonomous systems and next-generation defense and security technologies and services, today announced a $56 million order for Electronic Safe & Arm Devices ("ESADs") supporting a European loitering munition program. The order represents a significant milestone for Ondas' Precision Strike business, expanding the Company's participation in the rapidly growing market for loitering munitions and next-generation precision weapon systems.
"This is the first ESAD order we have announced since closing the GATE and Bron acquisitions, and it is a substantial one," said Eric Brock, Chairman and CEO of Ondas. "It confirms the market position we acquired, where safe-and-arm and electronic fuzing are mission-critical layers of the precision strike stack, qualified suppliers are few, and European program demand is accelerating. We expect precision strike to be a meaningful growth driver for Ondas, and we intend to compete for a larger share of each weapon system we support."
Precision strike is one of Ondas' core defense technology domains focused on enabling autonomous and remotely operated systems to engage targets with increased precision, speed and operational flexibility. Ondas is developing the segment around a broader technology stack rather than a single platform or product. The Company's capabilities span multiple layers of the precision-strike ecosystem, including autonomous platforms, navigation, communications, mission systems, propulsion, payload technologies and critical weapon components.
The order strengthens Ondas' position within European loitering munition programs and expands the Company's exposure to recurring production demand for mission-critical components used in modern precision-strike systems. Growing deployment of loitering munitions and autonomous effects is increasing demand not only for complete weapon platforms, but also for the specialized technologies required to make these systems safe, reliable and operationally effective at scale. European and allied defense customers are placing greater emphasis on scalable production, resilient supply chains and access to proven technologies, creating significant opportunities for suppliers that combine differentiated technology, qualification, integration experience and scalable production. Ondas intends to leverage its technology portfolio, customer relationships and European industrial capabilities to support existing programs and pursue additional opportunities across NATO and allied defense markets.
Electronic Safe & Arm Devices manage the safety, arming and initiation functions that keep a munition safe during storage, transport, handling and launch, and arm it only under the required mission conditions. Within loitering munitions, the ESAD sits at the interface between the weapon platform, mission logic and energetic payload, where its performance directly affects system safety and reliability. Because that role is safety-critical, ESADs must clear extended engineering, qualification and manufacturing-consistency requirements, which creates high barriers to entry and keeps the number of qualified suppliers small.
"This program moves into production with technology that is already qualified and a manufacturing base that is already in place," said Oshri Lugassy, Co-CEO of Ondas Autonomous Systems. "Our focus now is execution: delivering this program on schedule, holding consistent quality across every unit, and scaling production capacity in step with what the customer needs. Proven delivery is what qualifies us for the next program, and we intend to use it to compete for precision-strike and autonomous-effects opportunities well beyond this one."
The order was secured through Bron Technologies, which Ondas recently acquired together with GATE Technologies as part of the Company's expansion into precision-strike and autonomous-effects technologies. GATE develops Electronic Safe & Arm Devices and advanced electronic fuzing technologies used in precision weapons including loitering munitions, UAVs, missiles and rockets. Bron provides European manufacturing, certification and market access through its operations in Poland. Together, GATE and Bron give Ondas qualified ESAD technology, European production and certification capability, and established customer programs. This order is an early demonstration of the commercial scale those capabilities bring to Ondas.
About Ondas Inc.
Ondas Inc. (Nasdaq:ONDS) is a leading provider of autonomous systems, robotics, and mission-critical technologies for defense, homeland security, public safety, critical infrastructure, and industrial markets. The Company develops and deploys integrated unmanned and autonomous platforms across air, ground, and stratospheric environments, including autonomous drone systems, counter-UAS technologies, robotic ground systems, advanced unmanned aircraft and propulsion solutions, demining and engineering systems, and integrated sensing and communications technologies designed to support intelligence, surveillance, reconnaissance, security, and operational missions in complex environments. Ondas' solutions are deployed globally by government, defense, and commercial customers to protect infrastructure, borders, transportation networks, personnel, and strategic assets.
For additional information on Ondas Inc., visit www.ondas.com.
Forward-Looking Statements
Statements made in this release that are not statements of historical or current facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance, or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors, including the risks discussed under the heading "Risk Factors" discussed under the caption "Item 1A. Risk Factors" in Part I of our most recent Annual Report on Form 10-K or any updates discussed under the caption "Item 1A. Risk Factors" in Part II of our Quarterly Reports on Form 10-Q and in our other filings with the SEC. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise that occur after that date, except as required by law.
Contacts
IR Contact for Ondas Inc.
888-657-2377
[email protected]
Media Contact for Ondas Inc.
Escalate PR
[email protected]
Preston Grimes
Marketing Manager, Ondas Inc.
[email protected]
Ondas Holdings carries a valuation that rivals an established defense prime, yet its financials tell a very different story. Before retirement investors treat these two drone stocks as comparable bets, the gap between their revenue, profitability, and risk profiles deserves…
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For a retirement-focused investor, is Ondas Holdings (NASDAQ:ONDS) or AeroVironment (NASDAQ:AVAV | AVAV Price Prediction) the better holding as of October 2026? Both trade as drone stocks, but only AeroVironment sells into established U.S. Army programs at scale. Its trailing revenue of $2.0 billion is roughly 11.5 times Ondas’ $174.1 million. Even so, Ondas carries a market value of about $4.2 billion, or 58% of AeroVironment’s $7.2 billion.
AeroVironment Produces Program Revenue While Ondas Builds Its Base On September 9, 2026, AeroVironment reported fiscal first-quarter 2027 revenue of $480.5 million, up 6% year over year. Adjusted EPS came in at $0.59, beating the $0.25 estimate. The revenue comes from named, recurring franchises: Switchblade, Puma, P550, Titan, and the LOCUST laser, which won a $464 million Army production contract. Funded backlog reached a record $1.5 billion, up 37%, and management said it had 86% revenue visibility to the center of fiscal 2027 guidance. Backlog is contracted future work that has not yet been recognized as revenue. With a 1.4x book-to-bill, new orders are coming in faster than revenue is being booked.
Ondas posted revenue of $83.8 million for the quarter ended June 30, 2026, along with a net loss of $89.7 million. Its growth comes from acquisitions: it closed five in the first quarter of 2026 alone. First-quarter net income of $361.25 million came from a $389.55 million non-cash warrant gain. Adjusted EBITDA for that quarter was still a $10.88 million loss, and operating cash flow was negative $51.3 million. Its $457 million pro forma backlog has yet to convert into recognized revenue.
AeroVironment wins this round easily.
Ondas Costs 24 Times Sales, AeroVironment About 3.6 Ondas trades at about 24 times trailing sales. Using its own raised target of at least $390 million in fiscal 2026 revenue, the multiple is still about 11 times. AeroVironment trades at 3.6 times trailing sales. It trades at about 3.3 times the center of its $2.13 billion to $2.23 billion revenue guidance. Ondas’ multiple pays for revenue it has not yet booked, from acquisitions it is still integrating. It also prices in profitability that management does not expect until Q1 2028. AeroVironment guides to non-GAAP EPS of $3.02 to $3.34.
AeroVironment wins on valuation.
AeroVironment’s Drawdown Comes With a Record Ondas Lacks From October 2, 2025, to October 5, 2026, AeroVironment fell 60.6% to $141.88. That is steeper than Ondas’ 19.7% decline over the same period. Fiscal 2026 hurt AeroVironment. Termination of the SCAR program removed $1.5 billion from unfunded backlog and led to a $240.7 million goodwill impairment and a GAAP net loss of $265.1 million.
Over longer periods, AeroVironment gained 482.9% from October 4, 2016, to October 5, 2026. Ondas lost 18.7% from October 1, 2021, to October 5, 2026, and posted negative operating income in every year from 2020 through 2025. Ondas has about $1.03 billion in cash, but that runway came from equity raises. It also carries a $1.06 billion warrant liability that drives earnings swings, plus $19.7 million per quarter in stock-based compensation.
AeroVironment wins on risk. Its drawdown repriced a profitable franchise, while Ondas’ risk is built into how it funds and grows the business.
Verdict: AeroVironment Offers the Steadier Profile for Retirement-Focused Investors AeroVironment is the better fit for an investor at or near retirement. It has adjusted profitability and $675 million in cash and investments, against $747.5 million of zero-coupon convertible notes. Its execution risks, from budget timing to the LOCUST production ramp, are the usual risks a defense prime carries. Ondas’ profile lines up more closely with investors who have long time horizons and can absorb dilution and integration risk. These two stocks carry very different risk profiles, and Ondas carries risk well above what a retirement-focused investor typically seeks.
To change this assessment, Ondas would need to report fiscal 2026 revenue of at least $390 million, then post positive company-wide adjusted EBITDA without raising more equity. Until its reported results show both, AeroVironment is the actual defense contractor and Ondas is only priced like one.
Contact [email protected] for any questions or corrections.
A $56 million safety-critical munitions order just sent one small drone stock surging past AeroVironment and the broader defense ETF, and the real question is whether this contract signals a turning point or another fleeting headline for a company with…
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A single component order is doing more for Ondas Inc. (NASDAQ:ONDS) than a firm background for drone and defense names is doing for the rest of the group. Ondas stock is at $7.63, up 5%, following a European loitering munition order and a new Market Outperform rating from Citizens. Both catalysts bear on whether Ondas can turn its recent acquisitions into revenue-producing contracts.
Meanwhile, the Defiance Drone and Modern Warfare ETF (NYSEARCA:JEDI) is up 0.52%, a sign that the drone and defense group is firm. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up only 0.14%, which leaves Ondas stock well ahead of both its theme and the broad market.
At the same time, AeroVironment (NASDAQ:AVAV | AVAV Price Prediction) stock is up 0.48%, barely moving and trailing the drone fund despite a loitering munition franchise of its own. Kratos Defense & Security Solutions (NASDAQ:KTOS) stock is up 2%, a modest gain for another name tied to drones and precision strike. That gap points to a catalyst specific to Ondas.
Bron Lands the First Order Since the Acquisitions Closed Eric Brock announced a major order. The Chairman and Chief Executive Officer said Ondas secured an order worth $56 million for Electronic Safe and Arm Device (ESAD) units supporting a European loitering munition program. The order is the first of its kind Ondas has announced since closing its acquisitions of GATE Technologies and Bron Technologies, and that business gives Ondas manufacturing and certification capability in Poland.
An ESAD keeps a munition safe during storage, transport and launch, then arms it only under required mission conditions, a safety-critical role that carries heavy qualification requirements and leaves a short list of approved suppliers. Brock stated that the order confirms the market position Ondas acquired and that European program demand is accelerating.
Citizens Opens Coverage With a Market Outperform Rating Citizens began coverage of Ondas stock with a Market Outperform rating, adding a second catalyst alongside the ESAD order. Coverage from a new research team gives Ondas fresh institutional visibility as the company works to show that its acquisition strategy produces real contracts.
Ondas bulls are counting on this order as the first commercial proof from the GATE and Bron deals. ESAD work sits in a component niche where qualification keeps the supplier list short, which can make an approved vendor difficult to replace. Bron’s Polish manufacturing and certification base also places Ondas inside the European supply chain this program draws on.
The drone fund counts AeroVironment among its top holdings, with a 3% weight as of June 30. Such overlap makes the small move in AeroVironment stock a useful gauge of how much of the fund’s strength is reaching established suppliers.
What to Watch Next Ondas bears point to past contract announcements that haven’t consistently turned into lasting share price strength. Breaking that pattern means Ondas stock needs to hold its gains as the ESAD contract moves toward delivery. Clean execution on this program would give the market something more concrete than another headline to judge.
Delivery is the open question the order doesn’t resolve. Ondas has framed the next test as executing on schedule and holding quality across every unit, a demanding standard for a safety-critical part. Updates on production timing at Bron’s operations in Poland will be worth tracking.
Contact [email protected] for any questions or corrections.
David Moadel
David Moadel is financial writer specializing in stocks, ETFs, options, precious metals, and Bitcoin. David has written well over 1,000 articles for leading online publications, helping investors understand markets, income strategies, and risk.His work has appeared in The Motley Fool, InvestorPlace, U.S. News & World Report, TipRanks, ValueWalk, Benzinga, Market Realist, TalkMarkets, Finmasters, 24/7 Wall St., and others.With a master’s degree in education, David has taught at the elementary, high school, and college levels. That teaching background shapes his writing style: clear, educational, and practical. David has also built a loyal social-media audience by providing trustworthy financial content on YouTube, X/Twitter, and StockTwits.
Ondas Inc (NASDAQ:ONDS) stock is up 5.6% to trade at $7.65 this morning, after the dronemaker secured a $56 million Electronic Safe & Arm Devices order for a European loitering munition program.
The Pentagon handed drone suppliers the autonomous warfare announcement they craved, yet one stock with a 75% year-to-date gain is tumbling while its rivals barely flinch. The gap between winners and losers inside the drone sector reveals something the policy…
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The Pentagon gave drone suppliers the autonomous warfare headline they had waited for all year, yet Unusual Machines (NYSEAMERICAN:UMAC) shares are falling hard on the news. Unusual Machines stock is at $22.44, down 8% in afternoon trading. The drop follows a plan from Secretary of War Pete Hegseth that puts autonomous weapons and robotics at the center of U.S. military modernization.
Meanwhile, AeroVironment (NASDAQ:AVAV | AVAV Price Prediction) stock is at $140.30, down 1%, a much softer dip for the larger autonomy name. Red Cat Holdings (NASDAQ:RCAT) stock is at $6.35, down 2%, a pullback far closer to AeroVironment’s than to the slide in Unusual Machines shares. Kratos Defense & Security Solutions (NASDAQ:KTOS) and Ondas (NASDAQ:ONDS) round out the drone cluster tied to the Pentagon’s push into autonomous systems.
Meanwhile, the Defiance Drone and Modern Warfare ETF (NYSEARCA:JEDI) is at $24.86, down 0.9%, and the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is at $760.64, down 0.3%. That leaves the heavy selling concentrated in Unusual Machines stock while the broader drone group trades only modestly lower.
Pentagon Plan Names a Command and a Budget Speaking to officers at Marine Corps Base Quantico in Virginia on Wednesday, Hegseth announced a set of initiatives to modernize the U.S. military. The highlight for drone suppliers is a new four-star Autonomous Warfare Command, nicknamed Autowarcom, which Hegseth stated would concentrate on expanding robotic and autonomous capabilities across the joint force. Project Agincourt will develop the command’s structure and test a different approach to acquiring autonomous technology.
The Department of War has requested $74 billion for autonomous and counter-drone technology in the Pentagon’s proposed defense budget. Successful manufacturers in military drone competitions can receive orders shortly after the evaluations, yet none of the initiatives named a supplier, which leaves Unusual Machines without a contract attached to any piece of the plan.
Unusual Machines Has the Biggest Gain to Protect Unusual Machines stock is up 75% year to date. That run suggests the market had already paid for a favorable Pentagon outcome in this name, so a policy headline arriving without an order gave shareholders a clear reason to lock in their gains. The company’s earlier rally effectively front-loaded the good news Hegseth delivered at Quantico.
Shares of AeroVironment and Red Cat are trading like members of a sector basket absorbing the same headline. The modest pullbacks in AeroVironment stock and Red Cat stock sit much closer to the drone fund’s small decline than to the drop in Unusual Machines shares.
What to Watch Next Project Agincourt’s test of a new way to buy autonomous technology is the piece of the plan most likely to turn policy into purchase orders, and traders can watch for whether Unusual Machines appears among the manufacturers receiving orders after the military drone competitions. A named order would give the company something the Wednesday announcement didn’t.
Unusual Machines still benefits from a Pentagon budget request that directs heavy funding toward autonomous and counter-drone technology. The risk is that a 75% gain leaves Unusual Machines stock vulnerable to more profit-taking until a contract appears. Shareholders should watch for whether AeroVironment and Red Cat shares hold near the JEDI drone fund’s modest decline. A widening gap would signal pressure spreading beyond Unusual Machines.
Contact [email protected] for any questions or corrections.
David Moadel
David Moadel is financial writer specializing in stocks, ETFs, options, precious metals, and Bitcoin. David has written well over 1,000 articles for leading online publications, helping investors understand markets, income strategies, and risk.His work has appeared in The Motley Fool, InvestorPlace, U.S. News & World Report, TipRanks, ValueWalk, Benzinga, Market Realist, TalkMarkets, Finmasters, 24/7 Wall St., and others.With a master’s degree in education, David has taught at the elementary, high school, and college levels. That teaching background shapes his writing style: clear, educational, and practical. David has also built a loyal social-media audience by providing trustworthy financial content on YouTube, X/Twitter, and StockTwits.
Key Takeaways Ondas launched Dronebuster REACH, extending electronic attack capabilities to longer ranges and higher power.The first REACH system is under contract for delivery to the Office of Naval Research after testing.Ondas is building a layered C-UAS stack spanning detection, tracking, electronic defeat and interception. Ondas Inc. (ONDS - Free Report) recently expanded its counter-unmanned aircraft systems (C-UAS) portfolio by launching Dronebuster REACH, a long-range variant of its Dronebuster family of non-kinetic counter-drone systems. The product launch could strengthen Ondas’ position in the rapidly developing counter-drone market by addressing a key operational gap – defeating drones before they enter the effective range of handheld systems. The first Dronebuster REACH system is already under contract for delivery to the Office of Naval Research following customer acceptance testing. The system will support C-UAS research, evaluation and testing activities, providing an early validation point for Ondas’ new product.
Per management, the system extends electronic attack capabilities already demonstrated across the Dronebuster family to longer ranges and higher power. Its capabilities include command-and-control disruption and GNSS denial, with optional positioning, navigation and timing electronic attack. The objective is to create additional distance between the threat and the protected asset, potentially giving operators more time to identify a threat, determine an appropriate response and transition to another defensive layer if necessary. Dronebuster has been deployed in more than 50 countries, with more than 3,000 units delivered worldwide.
Ondas is positioning REACH as part of a layered C-UAS architecture. Ondas’ portfolio spans the broader counter-drone process. Its Detect, Track, Identify (DTI) systems feed threat data into DefenseOS, enabling operators to select responses such as non-kinetic electronic defeat through Dronebuster or REACH. If needed, the architecture can transition to kinetic interception via IonStrike. This creates an integrated C-UAS stack spanning detection, tracking, identification, decision-making, electronic defeat and kinetic interception. Such an approach could gain traction as customers increasingly seek comprehensive counter-drone architectures rather than standalone products.
To augment its high-performing defense division, Ondas is also relying on new customer acquisition besides portfolio expansion. Recently, it acquired three defense technology businesses for $56 million, adding AI sensing, resilient communications and GPS-independent capabilities.
ONDS Enters a Crowded Field of C-UAS PlayersDraganfly (DPRO - Free Report) is benefiting from growing demand in the C-UAS market, supported by its 27 years of drone-building experience and deep understanding of UAS vulnerabilities. The company is expanding its counter-drone capabilities through a pragmatic strategy that combines proprietary technology with partnerships and integrations. A key catalyst is its DEVCOM contract to develop an ultralight, highly mobile counter-drone system for the U.S. Department of War. The platform features proprietary tracking and system-integration capabilities and supports multiple effectors, including kinetic and RF options. Management sees this as a significant opportunity, with potential to generate hundreds of millions of dollars over the coming years.
Unusual Machines (UMAC - Free Report) is benefiting from accelerating demand in the C-UAS market, which management views as an emerging and potentially significant growth opportunity. Counter-drone programs use many of the same components supplied for FPV drones, allowing the company to serve multiple defense applications with its existing product portfolio. Management noted that Unusual Machines is already working with more than one C-UAS customer, with Powerus being the most advanced relationship to date. As large C-UAS contracts move through the domestic supply chain, the company expects additional component demand in late 2026 and into 2027, supporting sustained long-term growth.
ONDS’ Price Performance, Valuation and EstimatesShares of ONDS have plunged 24.9% year to date against the Zacks Wireless-National industry’s rise of 124.3%.
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On a forward 12-month price-to-sales basis, ONDS trades at 4.65, below the industry multiple of 7.88.
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For ONDS, earnings estimates for the current year have been revised significantly downward in the past 60 days.
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ONDS currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
First system under contract to deliver to the Office of Naval Research following acceptance testing
WEST PALM BEACH, FL / ACCESS Newswire / September 30, 2026 / Ondas Inc. (Nasdaq:ONDS) ("Ondas" or the "Company"), a leading provider of advanced autonomous systems and next-generation defense and security technologies and services, today announced the launch of Dronebuster® REACH, the long-range variant of its Dronebuster® family of non-kinetic Counter-Unmanned Aircraft Systems (C-UAS). The first REACH system is under contract to deliver to the Office of Naval Research following customer acceptance testing.
The customer will use the systems to support C-UAS research, evaluation and test activities.
REACH applies the electronic attack techniques proven across the Dronebuster® line, including command and-control disruption, Global Navigation Satellite System (GNSS) denial and optional Positioning, Navigation and Timing (PNT) electronic attack, at longer range and higher power. It gives operators a non kinetic defeat option for engagements that begin outside the range of a handheld effector.
REACH is designed to operate as part of a layered architecture rather than as a standalone tool. It pairs with Ondas' Detect, Track, Identify (DTI) systems for cueing and integrates with DefenseOS®, the Company's open command-and-control software, so operators can move from detection to decision to defeat inside a single picture. Where a non-kinetic effect is not sufficient, the same architecture supports handoff to kinetic interception.
"Dronebuster® is one of the most widely fielded counter-drone systems in the world, and REACH extends that franchise into a segment customers are asking us to fill," said Eric Brock, Chairman and Chief Executive Officer of Ondas. "New products like this are how we convert an installed base and a strong pipeline into sustained demand across our C-UAS portfolio."
"Operators keep telling us the same thing: by the time a drone is inside handheld range, they have already lost time they cannot get back," said Ryan Hartman, President and Chief Executive Officer of Ondas Sentinel. "REACH pushes the engagement out, gives them room to make a decision, and does it with a system our customers already know how to use."
REACH builds on a system with a long fielding record. Dronebuster® is the only American-made handheld system of its kind and among the world's most widely deployed handheld counter-drone solutions, fielded in more than 50 countries and backed by over 3,000 units delivered worldwide.
Ondas' C-UAS portfolio spans detection, non-kinetic defeat and kinetic interception, including Dronebuster® handheld effectors, vehicle kits and REACH long-range effectors, DTI detection systems, Sawtooth fixed-site protection, DefenseOS® command-and-control software and IonStrike, an autonomous kinetic interceptor.
About Ondas Inc.
Ondas Inc. (Nasdaq:ONDS) is a leading provider of autonomous systems, robotics, and mission-critical technologies for defense, homeland security, public safety, critical infrastructure, and industrial markets. The Company develops and deploys integrated unmanned and autonomous platforms across air, ground, and stratospheric environments, including autonomous drone systems, counter-UAS technologies, robotic ground systems, advanced unmanned aircraft and propulsion solutions, demining and engineering systems, and integrated sensing and communications technologies designed to support intelligence, surveillance, reconnaissance, security, and operational missions in complex environments. Ondas' solutions are deployed globally by government, defense, and commercial customers to protect infrastructure, borders, transportation networks, personnel, and strategic assets. For additional information on Ondas Inc., visit www.ondas.com.
Forward-Looking Statements
Statements made in this release that are not statements of historical or current facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance, or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors, including the risks discussed under the heading "Risk Factors" discussed under the caption "Item 1A. Risk Factors" in Part I of our most recent Annual Report on Form 10-K or any updates discussed under the caption "Item 1A. Risk Factors" in Part II of our Quarterly Reports on Form 10-Q and in our other filings with the SEC. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise that occur after that date, except as required by law.
Contacts
IR Contact for Ondas Inc.
888-657-2377
[email protected]
Media Contact for Ondas Inc.
Escalate PR
[email protected]
Preston Grimes
Marketing Manager, Ondas Inc.
[email protected]
Jill Vacek
Director of Communications, Ondas Sentinel
[email protected]
Key Takeaways Unusual Machines' Q2 revenues surged 687% YoY to $16.7 million, with 95% from Enterprise customers.UMAC expects industry demand to outstrip supply through 2026 and deep into 2027 amid U.S. defense demand.UMAC is scaling capacity with battery skills, a high-speed motor line and a larger manufacturing footprint. Unusual Machines (UMAC - Free Report) delivered a sharp growth acceleration in the second quarter, with revenues surging 687% year over year to $16.7 million and more than doubling sequentially, with roughly 95% generated from Enterprise customers. Adjusted EBITDA loss narrowed to about $0.4 million from $1.6 million in the prior quarter.
The next leg of growth will likely depend on how effectively UMAC expands capacity, strengthens its supply chain and converts robust industry demand into orders.
Unusual Machines is benefiting from strong demand, driven primarily by rising U.S. defense spending. On the last earnings call, management noted that the U.S. supply ecosystem remains constrained, and it expects demand to outstrip supply through 2026 and deep into 2027.
Management noted that the Department of War remains the primary demand driver, supported by the Drone Dominance Gauntlet program, higher autonomous-systems spending and an accelerating counter-UAS market. Management highlighted that the Gauntlet Program is on track, with Phase 2 in its final selection process, and that more than 60,000 drones were expected to be ordered in the second half of 2026, primarily in the fourth quarter.
Management highlighted several large industry awards, including counter-UAS and FPV drone programs, and believes these programs should generate incremental component demand. UMAC expects these to begin flowing through the supply chain in the late third quarter and fourth quarter and into 2027.
To capitalize on this demand, UMAC is aggressively scaling its manufacturing capacity. The proposed Upgrade Energy acquisition would add battery capabilities and broaden its drone-component portfolio. Management is also installing a high-speed motor production line and expanding its manufacturing footprint.
In September, the company collaborated with Altana to reinforce the supply-chain infrastructure supporting its expanding domestic manufacturing. The company also invested another $20 million (part of the $110 million financing) in existing customer XTEND AI Robotics, taking total investment to $27.5 million and extending its strategic exposure beyond components into the broader autonomous-systems ecosystem.
However, rapid expansion brings execution risks. Supply constraints, capacity buildout and competition across the U.S. drone ecosystem could influence how much demand UMAC ultimately captures.
Mapping the Competitive TerrainOndas Inc (ONDS - Free Report) has emerged as a strong player in the drone space driven by strong M&A activity. Since reporting second-quarter results, Ondas has continued to broaden its autonomous-defense platform through acquisitions. In August, it entered into a definitive agreement to acquire Aran Defense Ltd., the defense division of Aran Ltd., for approximately $33 million in cash or common stock. Aran Defense would expand Ondas’ Israeli engineering and manufacturing capacity, including roughly 4,400 square meters of facilities.
In September, Ondas acquired GATE Technologies and Bron Technologies, adding electronic safe-and-arm devices and advanced electronic fuzing technologies. The company will pay $205 million, plus a working capital adjustment, with an additional performance-based earn-out of up to $185 million. Last week, it acquired three defense technology businesses (Insignito, Ottopia Defense and Caribou Labs) for $56 million, payable in cash or Ondas common stock, with potential performance-based earn-outs of up to $32 million based upon achieving key performance milestones through 2028.
Ondas’ second-quarter 2026 revenues surged more than 13 times year over year to $83.8 million and increased 67% sequentially. The top-line growth reflected acquisitions and solid execution across Ondas' core businesses.
Red Cat Holdings (RCAT - Free Report) has begun to demonstrate commercial traction, with second-quarter 2026 revenues surging 527% year over year to $20.2 million. First-half 2026 revenues reached $35.7 million compared with just $4.8 million a year earlier. First-half gross profit improved to $5.2 million from a gross loss in the comparable prior-year period.
Red Cat is focusing on becoming an all-domain autonomy platform. It acquired Quaze Technologies, which develops wireless power transfer technology for unmanned and autonomous systems and drones, while APM Swarm Robotics brings multi-agent autonomy. The company is also broadening its reach into the maritime sector through Blue Ops, where it is developing uncrewed surface vessels (“USVs”). Recently, Red Cat partnered with Havoc to integrate collaborative autonomy and command-and-control software across Blue Ops’ USVs.
The company is also sharpening its ability to rapidly scale production to meet mission-critical requirements. Its manufacturing footprint has increased fivefold since 2024 to roughly 260,000 square feet, with another 12,000 square feet added for APM operations. Management highlighted that it entered the second half with nine active products and roughly 270,000 square feet of production capacity and improved unit economics. This creates a substantially larger operating base from which second-half growth can build. Management reaffirmed its $150-$180 million full-year revenue target.
UMAC’s Price Performance, Valuation and EstimatesUMAC’s shares have inched up 1.6% in the past month against the Wireless-National industry’s decline of 2%.
Image Source: Zacks Investment Research
Unusual Machines is trading at a 12-month forward price/sales ratio of 12.96X, considerably higher than the industry’s multiple of 4.81X.
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The Zacks Consensus Estimate for UMAC’s earnings for the current year has been revised upward over the past 60 days.
Image Source: Zacks Investment Research
UMAC currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Three-year agreement, extendable by two years, covers drone inspection and surveying across SSE plc's UK transmission and distribution networks
Scope expands to offshore wind turbine inspection, extending Cyberhawk into SSE's offshore renewable generation assets
Third consecutive long-term award in a relationship spanning more than ten years, alongside a renewed multi-year iHawk™ as a Service agreement
WEST PALM BEACH, FL / ACCESS Newswire / September 28, 2026 / Ondas Inc. (NASDAQ:ONDS) ("Ondas" or the "Company"), a leading provider of advanced autonomous systems and next-generation defense and security technologies, announced today that its subsidiary Cyberhawk, a global leader in critical infrastructure intelligence, drone-based inspection, visual data management and AI-enabled analytics, has secured a new three-year agreement, with an option to extend for a further two years, with SSE plc's economically-regulated networks businesses, SSEN Transmission and SSEN Distribution for the provision of specialist drone inspection and surveying services across its British electricity networks.
SSE's transmission and distribution networks comprise thousands of kilometers of critical electricity infrastructure across mainland Britain. Cyberhawk has supported SSE for more than ten years, applying drone technology to improve the safety, efficiency and quality of network inspection and surveying across one of the country's most extensive energy systems.
As part of the new agreement, Cyberhawk has also been awarded Lot 2 for offshore wind turbine inspection, extending the scope of the partnership into SSE's offshore renewable energy assets. The addition broadens Cyberhawk's role across SSE's asset base and aligns with the growing operational requirement to inspect, monitor and manage renewable generation infrastructure at scale.
The relationship extends beyond drone services. Cyberhawk has also recently renewed a multi-year agreement with SSE for the provision of iHawk as a Service, strengthening the partnership across both field operations and digital asset intelligence. iHawk serves as a system of record for infrastructure inspection, aggregating imagery, geospatial information and AI-assisted analytics into an asset-centric view that supports risk prioritization, workflow management and operational decision-making across complex enterprise environments.
"We are extremely pleased to have secured this new agreement with SSE and to continue a relationship that has now spanned more than ten years," said Chris Fleming, CEO at Cyberhawk. "The fact that SSE has awarded Cyberhawk a third major long-term agreement, following two previous five-year agreements, is a strong testament to the value and trust we have built together."
"SSE's electricity networks businesses have consistently been one of the UK's most progressive energy companies when it comes to adopting innovation. We have seen that commitment first-hand through the deployment of drone technology across its networks and, increasingly, through the use of iHawk to turn inspection data into actionable asset intelligence. The addition of offshore wind inspection further demonstrates the breadth of our partnership with SSE. We are proud to continue supporting the safety, resilience and efficiency of its critical energy infrastructure," Fleming concluded.
SSE plans to invest £33bn in energy infrastructure by 2030, reinforcing its position as one of the UK's leading investors in the sector. As utilities and renewable energy operators increasingly combine large-scale inspections with data-driven asset management, demand for integrated infrastructure intelligence continues to grow. With onshore transmission and distribution, offshore wind and iHawk covered by long-term agreements, Cyberhawk sees its relationship with SSE as a model for supporting major network operators across the UK and Europe.
About Ondas Inc.
Ondas Inc. (NASDAQ:ONDS) is a leading provider of autonomous systems, robotics, and mission-critical technologies for defense, homeland security, public safety, critical infrastructure, and industrial markets. The Company develops and deploys integrated unmanned and autonomous platforms across air, ground, and stratospheric environments, including autonomous drone systems, counter-UAS technologies, robotic ground systems, advanced unmanned aircraft and propulsion solutions, demining and engineering systems, and integrated sensing and communications technologies designed to support intelligence, surveillance, reconnaissance, security, and operational missions in complex environments. Ondas' solutions are deployed globally by government, defense, and commercial customers to protect infrastructure, borders, transportation networks, personnel, and strategic assets.
For additional information on Ondas Inc., visit www.ondas.com.
Forward-Looking Statements
Statements made in this release that are not statements of historical or current facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance, or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors, including the risks discussed under the heading "Risk Factors" discussed under the caption "Item 1A. Risk Factors" in Part I of our most recent Annual Report on Form 10-K or any updates discussed under the caption "Item 1A. Risk Factors" in Part II of our Quarterly Reports on Form 10-Q and in our other filings with the SEC. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise that occur after that date, except as required by law.
Contacts
IR Contact for Ondas Inc.
888-657-2377
[email protected]
Media Contact for Ondas Inc.
Escalate PR
[email protected]
Preston Grimes
Marketing Manager, Ondas Inc.
[email protected]
Ondas Inc. (NASDAQ:ONDS) has had a busy stretch this month, acquiring five defense technology companies as it rapidly expands its autonomous defense platform.
Ondas stock is moving in positive territory. What’s pushing ONDS stock higher? GATE Technologies and Bron TechnologiesOn September 14, Ondas acquired GATE Technologies, an Israeli-based developer of Electronic Safe & Arm Devices and electronic fuzing technologies used across precision weapons and autonomous strike systems, along with its affiliated European manufacturer, Bron Technologies.
The deal is valued at $205 million, consisting of $105 million in cash and 10,689,655 Ondas common shares, plus up to $185 million in performance-based earn-out payments tied to financial targets through 2028.
GATE’s technology is integrated into dozens of weapon systems, including UAVs, loitering munitions, missiles, and rockets. Ondas expects the acquired business to generate about $65 million in revenue in 2026, growing to $180 million by 2028.
Insignito, Ottopia Defense and Caribou LabsOn September 23, Ondas acquired three additional defense technology businesses — Insignito, Ottopia Defense, and Caribou Labs — for about $56 million, plus up to $32 million in potential earn-outs through 2028.
Insignito provides passive acoustic sensing technology to detect, classify, and track drones, including small FPV systems difficult to identify through traditional radar and RF detection. Ottopia Defense combines AI-powered autonomy and ultra-low-latency teleoperation, letting operators supervise multiple unmanned systems from centralized command centers. Caribou Labs provides GNSS-denied navigation and resilient communications technology already deployed in active conflict environments.
Read Next
Ondas Shares Edge HigherONDS Price Action: At the time of publication, Ondas shares are trading 1.58% higher at $7.72, according to data from Benzinga Pro.
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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Drone stocks are surging together while the broader market sits flat, and the pattern of who is gaining the most reveals exactly where traders are placing their bets right now.
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Drone stocks are moving higher together, with Unusual Machines (NYSEAMERICAN:UMAC) stretching further than its listed peers. This session belongs to the group rather than to any single Unusual Machines story, and the shape of the bounce says a lot about where the buying is landing.
In afternoon trading, Unusual Machines stock is up 6% to $24.11. The shares have also climbed 10% over the past week.
Ondas Inc. (NASDAQ:ONDS) shares are rising 4% to $7.67, moving in step with Unusual Machines. Red Cat Holdings (NASDAQ:RCAT) stock is up 3% to $6.76 on the same drone lift carrying Unusual Machines. All three names are climbing in the same direction and inside roughly the same window, which is what a group bounce looks like when it lands.
What the Drone Group Is Doing Together That bounce is showing up in the fund as well, though muted. Shares of the REX Drone ETF (NASDAQ:DRNZ) are up 1% to $20.84, a much smaller gain than what Unusual Machines is posting. Individual drone names are doing the heavy lifting, while the fund is passing along a diluted version of the same move.
Broader benchmark trading is doing very little to disturb today’s isolation of the drone corner. In fact, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is at $768.20, or nearly unchanged on the session. With the wider tape flat, the drone group itself is the source of the lift for Unusual Machines and its peers, ruling out a risk-on rotation as the explanation.
Why the Drone Fund Lags Its Own Holdings DRNZ’s milder move reflects its composition. The fund carries larger aerospace and defense positions alongside the small-cap drone pure plays, so a session driven by a rebound in the smaller names produces a softer fund gain than what Unusual Machines itself shows. That’s the usual shape when a bounce is concentrated in the pure plays rather than spread evenly across the fund’s mix, and it’s why the fund is trailing Unusual Machines by a wide margin.
What to Watch A bounce across the drone group after a recent stretch of selling is the most plausible read for Unusual Machines stock. That framing matters because a bounce with no company-specific announcement behind it can reverse just as quickly as it arrived.
Investors sizing their exposure to Unusual Machines stock should keep their positions moderate given the stock’s tendency to swing hard in both directions and the absence of a settled catalyst behind this bounce. A group-driven move can fade as fast as it forms, and Unusual Machines has already shown it can travel a long distance in either direction on a short timeline. Traders may want to keep an eye on UMAC stock and its listed peers as the session develops, since the same three-way pattern that lifted them could reverse in the same coordinated shape.
Contact [email protected] for any questions or corrections.
David Moadel
David Moadel is financial writer specializing in stocks, ETFs, options, precious metals, and Bitcoin. David has written well over 1,000 articles for leading online publications, helping investors understand markets, income strategies, and risk.His work has appeared in The Motley Fool, InvestorPlace, U.S. News & World Report, TipRanks, ValueWalk, Benzinga, Market Realist, TalkMarkets, Finmasters, 24/7 Wall St., and others.With a master’s degree in education, David has taught at the elementary, high school, and college levels. That teaching background shapes his writing style: clear, educational, and practical. David has also built a loyal social-media audience by providing trustworthy financial content on YouTube, X/Twitter, and StockTwits.
Key Takeaways Ondas is buying Insignito, Ottopia Defense and Caribou Labs for $56 million in cash or stock.Ondas is buying Insignito, Ottopia Defense and Caribou Labs for $56 million in cash or stock.Ottopia and Caribou add remote-control connectivity and GPS-independent positioning and timing capabilities. Ondas Inc. (ONDS - Free Report) is expanding its position in autonomous defense systems by acquiring three defense technology businesses. Ondas is positioning the acquisitions as building blocks for a broader systems-of-systems strategy, combining sensors, communications, autonomy and mission execution into integrated defense solutions. It agreed to acquire the businesses for $56 million in cash or stock, valuing them at less than 3x projected 2027 revenue. Up to $32 million in additional payments could be tied to performance through 2028.
The first acquisition, Insignito, brings AI-enabled acoustic intelligence to Ondas' counter-unmanned aircraft systems (C-UAS) portfolio. Insignito's DUMBO system uses passive acoustic sensing to detect, classify, track and localize drones based on their sound signatures. The technology can complement existing radar, RF and electro-optical sensors, creating a multi-layered detection architecture. Insignito also brings additional technologies, including WaveGuide for acoustic mission planning, Silent Propellers for reducing drone acoustic signatures and Banshee, an acoustic-enabled interception technology under development. For Ondas, the acquisition could expand its C-UAS offering across detection, planning, signature management and interception.
The second acquisition, Ottopia Defense, focuses on keeping unmanned systems connected to their human operators. Ottopia's platform is designed to maintain the flow of video, telemetry, mission information and commands between unmanned vehicles and remote operators. Its architecture dynamically manages operational data across available communication channels. Its combination of AI-enabled autonomy, ultra-low-latency teleoperation and remote control could also support a one-to-many operating model, where a relatively small number of operators supervise multiple unmanned assets. This is likely relevant to Ondas' strategy around autonomous ground vehicles such as Iron Wave.
The third acquisition, Caribou Labs, addresses dependence on satellite navigation. Caribou specializes in resilient communications, deterministic identification and GPS-independent positioning and timing. Per Ondas, Caribou's technology is already deployed in active conflict environments and has a global pipeline of potential customer opportunities. Moreover, ONDS is on an acquisition spree. Recently, it agreed to acquire GATE and Bron for $205 million, adding advanced electronic fusing capabilities. In August, Ondas proposed acquiring Aran Defense Ltd. to boost in-house engineering, prototyping and scalable defense production.
How Do ONDS’ Competitors Compare on M&A Ground?Draganfly (DPRO - Free Report) completed the acquisition of Skip Dynamix last month, strengthening its defense drone portfolio and expanding its presence in the low-cost autonomous aerial systems market. The deal adds fixed-wing drone technology and enhances Draganfly’s AI, autonomy and military systems capabilities, while improving its positioning in U.S., NATO and Indo-Pacific defense programs. The acquisition adds the Orca fixed-wing drone to Draganfly’s portfolio, expanding its capabilities in long-range autonomous systems. It also broadens the company’s reach across defense and government markets, creates revenue growth opportunities and retains key fixed-wing drone expertise through the continued involvement of Skip Dynamix’s founders.
In May, Unusual Machines (UMAC - Free Report) agreed to acquire Upgrade Energy for approximately $52 million, adding battery and power system expertise to its drone components business. Recently, UMAC invested an additional $20 million in XTEND AI Robotics, bringing its total investment to $27.5 million as part of XTEND’s $110 million financing. In 2025, UMAC bought Rotor Lab, adding high-performance drone motor and propulsion technologies to its portfolio. The deal strengthens its commercial and defense offerings, supports U.S. manufacturing expansion and enhances motor design and engineering capabilities. It also agreed to acquire Aloft Technologies for $14.5 million, adding leading drone fleet and airspace management capabilities to its portfolio.
ONDS’ Price Performance, Valuation and EstimatesShares of ONDS have plunged 24.1% year to date against the Zacks Wireless-National industry’s rise of 122%.
Image Source: Zacks Investment Research
In terms of the forward 12-month Price/Sales ratio, ONDS is trading at 4.65, lower than the industry’s multiple of 7.89.
Image Source: Zacks Investment Research
For ONDS, earnings estimates for the current year have been revised significantly downward in the past 60 days.
Image Source: Zacks Investment Research
ONDS currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Acquisitions add field-deployed and near-term mission-ready capabilities across acoustic intelligence, resilient communications, remote operations and GNSS-denied navigation, strengthening existing Ondas platforms and enabling new integrated solutions and revenue opportunities.
Insignito adds a unique passive acoustic sensing layer to detect, classify, and track drones particularly useful for small FPV drone systems and fiber optic systems that are difficult to detect by traditional methods.
Ottopia Defense combines AI-powered autonomy capabilities and ultra-low-latency teleoperation, and intelligent networking, connecting unmanned maneuvering platforms with human operators and command centers for one-to-many capabilities.
Caribou Labs is a provider of GNSS-denied navigation and resilient communications technology that will add key capabilities and differentiation for Ondas platforms in combat environments.
WEST PALM BEACH, FL / ACCESS Newswire / September 23, 2026 / Ondas Inc. (NASDAQ:ONDS) ("Ondas" or the "Company"), a leading provider of autonomous systems and next-generation defense and security technologies, announced today that it has acquired three defense technology businesses, adding advanced capabilities that enhance the Company's mission capabilities and expand its addressable markets. The acquired businesses bring technologies ranging from systems already deployed in active conflict environments to capabilities positioned for near-term mission integration across Ondas' existing platforms. The acquisitions are designed to strengthen Ondas' existing and future autonomous platforms, accelerate the development of integrated solutions and create new opportunities for growth across the defense and autonomous systems markets.
"These acquisitions reflect our strategy of assembling the critical technologies required to make autonomous systems more capable, resilient and scalable in contested environments," said Eric Brock, Chairman and CEO of Ondas Inc. "Together, these businesses give Ondas more to sell and more ways to win. They add commercial revenue streams we can grow across our customer base, and they strengthen our ability to pursue larger, longer-term customer programs where we deploy and sustain more capable autonomous systems on behalf of the customers we serve."
Insignito - AI-Enabled Acoustic Intelligence for C-UAS.
Insignito's mission-ready technology creates a passive acoustic sensing layer designed to detect, classify, track and localize drones by their acoustic signatures, including small drones, FPV systems, low-altitude threats and autonomous or RF-silent platforms that can challenge traditional radar and radio-frequency detection. Its flagship DUMBO system has been successfully deployed in conflict zones listening to the operating environment rather than transmitting RF or electromagnetic energy, applying real-time signal processing, advanced acoustic modeling, artificial intelligence and proprietary algorithms to identify unmanned aerial vehicle signatures. The technology is designed to complement radar, RF and electro-optical sensors, adding an independent sensing modality to a layered, multi-sensor C-UAS architecture.
Beyond passive detection, Insignito has developed several additional capabilities including WaveGuide, a software-based mission-planning capability that models the acoustic detectability of aerial platforms along planned trajectories; Silent Propellers, which applies acoustic engineering to reduce the noise signature of unmanned aircraft; and Banshee, an acoustic-enabled drone interception technology under development. Collectively, these capabilities span detection, mission planning, signature reduction and interception.
Ottopia Defense - Mission-Critical Communications and Remote Control for Unmanned Systems.
Ottopia Defense ("Ottopia") provides software and communications infrastructure connecting unmanned maneuvering platforms with remote operators and command centers. The technology is designed to maintain the continuous, real-time flow of video, telemetry, mission data and commands in remote, harsh, bandwidth-constrained, degraded and mission-critical environments. Its architecture dynamically manages high-priority operational data across available communications channels, helping preserve the connection between unmanned platforms and human operators when battlefield connectivity is inconsistent or disrupted.
Ottopia's mission-ready platform combines AI-enabled autonomy, ultra-low-latency teleoperation, remote control and resilient communications, enabling operators to supervise multiple unmanned systems, monitor live video and telemetry, and intervene whenever human judgment or direct control is required. Its one-to-many architecture allows a smaller number of operators to manage multiple assets from centralized mission centers or distributed command environments while preserving human oversight and command authority.
Caribou Labs - Resilient Communications for GNSS-denied environments.
Caribou Labs ("Caribou") is a deep-tech, dual-use company specializing in EW environments providing resilient communications and deterministic identification. The company combines domain expertise in RF engineering, sensing and defense systems. Caribou's mission is to deliver GPS-independent positioning timing and visibility when digital infrastructure fails. The company's products are complementary to Ondas' autonomous systems by helping to complete an end-to-end autonomy and resiliency stack that includes connectivity, navigation, identification and regulatory compliance across aerial, ground and command platforms. Caribou's technology is currently deployed in active conflict environments and has a global pipeline of new customer opportunities.
Building an Integrated Technology Stack for Autonomous Defense
Ondas intends to integrate these technologies across its existing portfolio. Insignito adds acoustic sensing that enhances Ondas' current C-UAS solution with an additional FPV drone detection layer. Ottopia provides the resilient connectivity and human command capabilities required for remote operations of unmanned ground vehicles such as Iron Wave. Caribou adds navigation, positioning and communications capabilities for GNSS-denied environments that are required across Ondas' platforms. Combined with Ondas' existing autonomous platforms, sensors, software and mission systems, these capabilities are expected to strengthen an increasingly integrated technology stack spanning detection, connectivity, navigation, autonomy and mission execution. This approach is central to Ondas' Systems-of-Systems strategy: combining differentiated technologies across multiple platforms to enhance existing products, accelerate the development of new solutions and expand the markets and revenue opportunities available to the Company.
Transaction Summary of Strategic Acquisitions
Ondas acquired the businesses for aggregate consideration of $56 million, payable in cash or Ondas common stock. Based on Ondas' forecasts, the purchase price represents less than three times the businesses' expected 2027 revenue. The transactions also include potential earnout consideration of up to $32 million in the aggregate, payable in cash or Ondas common stock upon the achievement of key performance milestones through 2028.
In connection with the acquisitions, the Company approved inducement grants of restricted stock units (RSUs) representing 2,979,063 shares of the Company's common stock and stock options exercisable for 80,000 shares of the Company's common stock with an exercise price of $7.72 per share to a total of 37 newly-hired employees in connection with the acquisitions. The equity awards were granted under the Ondas Inc. 2026 Inducement Plan pursuant to the Nasdaq Rule 5635(c)(4) inducement grant exception as a component of each individual's employment compensation and were granted as an inducement material to his or her acceptance of employment with the Company. RSUs representing (i) 222,727 shares of the Company's common stock vest in eight (8) equal quarterly installments over two years following the closing date, subject to the applicable employee's continued employment with the Company; (ii) 1,866,061 shares of the Company's common stock vest one-third on September 23, 2027 and subsequently in eight equal quarterly installments, subject to the applicable employee's continued employment with the Company; and (iii) 890,275 shares of the Company's common stock vest on the closing date. Stock options representing 80,000 shares of the Company's common stock vest one-third on September 23, 2027 and subsequently in twenty-four equal monthly installments, subject to the applicable employee's continued employment with the Company.
About Ondas Inc.
Ondas Inc. (NASDAQ:ONDS) is a leading provider of autonomous systems, robotics, and mission-critical technologies for defense, homeland security, public safety, critical infrastructure, and industrial markets. The Company develops and deploys integrated unmanned and autonomous platforms across air, ground, and stratospheric environments, including autonomous drone systems, counter-UAS technologies, robotic ground systems, advanced unmanned aircraft and propulsion solutions, demining and engineering systems, and integrated sensing and communications technologies designed to support intelligence, surveillance, reconnaissance, security, and operational missions in complex environments. Ondas' solutions are deployed globally by government, defense, and commercial customers to protect infrastructure, borders, transportation networks, personnel, and strategic assets.
For additional information on Ondas Inc., visit www.ondas.com.
Forward-Looking Statements
Statements made in this release that are not statements of historical or current facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance, or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors, including the risks discussed under the heading "Risk Factors" discussed under the caption "Item 1A. Risk Factors" in Part I of our most recent Annual Report on Form 10-K or any updates discussed under the caption "Item 1A. Risk Factors" in Part II of our Quarterly Reports on Form 10-Q and in our other filings with the SEC. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise that occur after that date, except as required by law.
Contacts
IR Contact for Ondas Inc.
888-657-2377
[email protected]
Ondas Holdings Inc. (NASDAQ:ONDS – Get Free Report) has been assigned a consensus rating of “Moderate Buy” from the ten ratings firms that are currently covering the stock, MarketBeat.com reports. One equities research analyst has rated the stock with a sell rating, one has given a hold rating and eight have assigned a buy rating to the company. The average 12-month price objective among brokers that have updated their coverage on the stock in the last year is $17.1750.
Several equities analysts recently commented on ONDS shares. Oppenheimer upped their price objective on Ondas from $16.00 to $18.00 and gave the company an “outperform” rating in a research note on Friday, August 14th. Needham & Company LLC reissued a “buy” rating and issued a $19.00 target price on shares of Ondas in a research report on Monday, September 14th. Weiss Ratings lowered Ondas from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Tuesday, August 4th. Roth Capital reaffirmed a “buy” rating on shares of Ondas in a research report on Tuesday, August 18th. Finally, Wall Street Zen downgraded Ondas from a “sell” rating to a “strong sell” rating in a research note on Saturday, August 15th.
View Our Latest Analysis on Ondas
Ondas Stock Performance NASDAQ ONDS opened at $7.39 on Monday. The company has a market capitalization of $4.22 billion, a PE ratio of -105.57 and a beta of 2.74. Ondas has a 52-week low of $4.95 and a 52-week high of $15.28. The company has a 50-day simple moving average of $7.96 and a 200 day simple moving average of $9.08. Ondas (NASDAQ:ONDS – Get Free Report) last released its earnings results on Thursday, August 13th. The company reported ($0.19) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.09) by ($0.10). Ondas had a net margin of 93.55% and a negative return on equity of 14.20%. The company had revenue of $83.77 million during the quarter, compared to analysts’ expectations of $67.97 million. As a group, analysts forecast that Ondas will post -0.47 EPS for the current fiscal year.
Insider Transactions at Ondas In other Ondas news, Director Richard Cohen sold 7,500 shares of the company’s stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $8.96, for a total transaction of $67,200.00. Following the sale, the director directly owned 261,836 shares of the company’s stock, valued at $2,346,050.56. This represents a 2.78% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 1.67% of the company’s stock.
Institutional Inflows and Outflows Several institutional investors and hedge funds have recently bought and sold shares of ONDS. Beaird Harris Wealth Management LLC boosted its position in shares of Ondas by 3.8% in the fourth quarter. Beaird Harris Wealth Management LLC now owns 27,250 shares of the company’s stock valued at $266,000 after acquiring an additional 1,000 shares during the period. State of Wyoming boosted its holdings in Ondas by 31.5% in the 1st quarter. State of Wyoming now owns 6,809 shares of the company’s stock valued at $62,000 after purchasing an additional 1,631 shares during the period. NFSG Corp boosted its holdings in Ondas by 200.0% in the 1st quarter. NFSG Corp now owns 3,000 shares of the company’s stock valued at $27,000 after purchasing an additional 2,000 shares during the period. Steadtrust LLC grew its position in shares of Ondas by 10.3% during the 2nd quarter. Steadtrust LLC now owns 21,473 shares of the company’s stock valued at $177,000 after purchasing an additional 2,000 shares in the last quarter. Finally, Global Retirement Partners LLC increased its holdings in shares of Ondas by 30.0% in the fourth quarter. Global Retirement Partners LLC now owns 13,000 shares of the company’s stock worth $127,000 after purchasing an additional 3,000 shares during the period. 37.73% of the stock is owned by institutional investors.
Ondas Company Profile (Get Free Report)
Ondas Holdings Inc (NASDAQ: ONDS) develops autonomous systems and private wireless network technologies for industrial, government and critical-infrastructure applications. Its businesses are focused on collecting and transmitting data in environments where conventional communications or manually operated systems may be limited.
Through its autonomous systems activities, including American Robotics and other related platforms, Ondas provides autonomous drone solutions for applications such as agriculture, infrastructure inspection, public safety and security.
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Small-cap drone stocks are sliding in lockstep again Friday while the broader market barely flinches, and the pattern behind the selloff tells a very different story than it might appear on the surface.
Small-cap drone stocks are extending a week of pressure Friday morning, with the group’s most-followed names sliding again while the wider market barely budges. The category is trading like a basket today rather than a set of individual stories, and that pattern is the key to reading the moves. The signature reads as money leaving a theme, not a fundamental setback at any one company.
The REX Drone ETF (NASDAQ:DRNZ) is down 2% in Friday morning trading, a session decline that captures how the small-cap drone complex is behaving as a group. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down 0.1%, essentially unchanged, which underscores how localized this selling is.
Red Cat Holdings (NASDAQ:RCAT) stock is declining 3% to $6.87, a move that adds to a punishing month for shareholders. Meanwhile, Unusual Machines (NYSEAMERICAN:UMAC) stock is falling 3% to $23.11, mirroring Red Cat almost tick for tick and reinforcing the read that traders are exiting the small-cap drone bucket. Ondas Inc. (NASDAQ:ONDS) stock is slipping 1% to $7.28, a shallower slide that still leaves the counter-drone name red on the day.
Category Selling Rather Than a Single-Name Story No verified company announcement explains Red Cat’s slide this morning. When Red Cat and Unusual Machines are down by nearly identical percentages, and the REX Drone ETF is lower while the broad market fund is close to unchanged, the read is category exit rather than any one company’s news.
That distinction matters for how traders position around Red Cat. A name-specific setback usually leaves the affected stock lower while its closest listed competitors hold their ground or gain, and that’s not the pattern showing up this morning. Unusual Machines is sliding by almost the same amount, and Ondas is lower too, which fits a group move better than a company-level explanation.
Red Cat’s Month Sets the Backdrop Red Cat stock is down 33% over the past month, and that drawdown is the context for how the shares trade today. A stock already down this much tends to move on positioning and flows, since the marginal holder is often a shorter-term trader whose reason for being in the name is thinner than a long-term investor’s would be.
The most recent quarterly report from Red Cat, delivered August 6, 2026, showed revenue of $20.19 million, up 527% year over year, which nevertheless missed the $22.58 million consensus. Management reaffirmed full-year FY2026 revenue guidance of $150 million to $180 million, and Red Cat closed the quarter with $325.55 million in cash. That balance sheet is a piece of the story for readers weighing whether the recent slide has gone too far or has further to run.
Where AeroVironment Fits AeroVironment is the large-cap defense drone maker in the same category, and its presence anchors the group at a very different scale from the small caps driving today’s selling. AeroVironment is a useful reference point because a group-wide move often shows up first in the smaller, higher-beta names, then filters into larger peers if the theme weakens more broadly.
The REX Drone ETF carries AeroVironment, Ondas, Unusual Machines and Red Cat among its disclosed positions, which is why the fund is a reasonable read on drone-basket sentiment when individual tickers move in unison. When Red Cat and Unusual Machines slide by similar amounts on the same session, the fund tends to reflect that pressure directly, and that’s what today’s action is showing on the same tape as the broader market.
What to Watch Next Traders can watch for whether Red Cat’s session losses hold into the close or whether an intraday reversal shows up in the small-cap drone complex first. A late-day bid in the REX Drone ETF would suggest the outflow story is running out of sellers, while a widening slide would signal the category exit still has room to run before the week is out.
Investors sizing their exposure to Red Cat should keep their positions modest given the stock’s month-long decline, the group’s sensitivity to sector flows and the absence of a fresh company catalyst to hang the trade on. Shareholders may want to keep an eye on whether Ondas continues to hold up better than the smaller names, since that relative strength has historically been a tell for where category money is willing to stay.
Contact [email protected] for any questions or corrections.
Ondas (NASDAQ:ONDS – Get Free Report) and Karman (NYSE:KRMN – Get Free Report) are both mid-cap industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.
Profitability This table compares Ondas and Karman’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Ondas 93.55% -14.20% -7.15% Karman 6.31% 15.54% 4.97% Analyst Ratings This is a breakdown of recent recommendations for Ondas and Karman, as reported by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Ondas 1 1 8 0 2.70 Karman 1 1 8 2 2.92 Ondas currently has a consensus target price of $17.18, indicating a potential upside of 132.41%. Karman has a consensus target price of $89.45, indicating a potential upside of 153.66%. Given Karman’s stronger consensus rating and higher probable upside, analysts clearly believe Karman is more favorable than Ondas. Earnings and Valuation This table compares Ondas and Karman”s revenue, earnings per share (EPS) and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Ondas $174.10 million 24.26 -$132.02 million ($0.07) -105.57 Karman $471.50 million 9.91 $17.37 million $0.29 121.60 Karman has higher revenue and earnings than Ondas. Ondas is trading at a lower price-to-earnings ratio than Karman, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership 37.7% of Ondas shares are owned by institutional investors. 1.7% of Ondas shares are owned by company insiders. Comparatively, 5.8% of Karman shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Risk & Volatility Ondas has a beta of 2.74, meaning that its stock price is 174% more volatile than the S&P 500. Comparatively, Karman has a beta of 0.47, meaning that its stock price is 53% less volatile than the S&P 500.
Summary Karman beats Ondas on 10 of the 14 factors compared between the two stocks.
About Ondas (Get Free Report)
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.
About Karman (Get Free Report)
We specialize in the upfront design, testing, manufacturing, and sale of mission-critical systems for existing and emerging missile and defense, and space programs. Our integrated payload protection, propulsion, and interstage system solutions are deployed across a wide variety of existing and emerging programs supporting important Department of Defense (“DoD”) and space sector initiatives. We estimate that no single program accounted for more than 10% of sales for the nine months ended September 30, 2024 or the twelve months ended December 31, 2023, with revenue from over 100 active programs supporting current production and next-generation space, missile, hypersonic, and defense applications. We believe that our engineering expertise, vertically integrated production capabilities, and track record with critical piece part and subcomponent manufacturing positions us to successfully serve our prime customers who rely on us to deliver technical design and scaled manufacturing for integrated systems that are required to withstand extreme environments and meet stringent performance requirements. Our highly engineered solutions are organized into three key families: Payload Protection and Deployment Systems, Aerodynamic Interstage Systems, and Propulsion Systems: • Payload Protection and Deployment Systems: full design and manufacturing of the top section of a booster, launch vehicle, payload, or missile system • Aerodynamic Interstage Systems: supporting metallic and composite subsystems designed for aerodynamics and interstage separation • Propulsion Systems: offering of integrated solid rocket motors and supporting subsystems, launch systems, and ablative composites Our solutions are deployed across three growing, core end markets: Hypersonics & Strategic Missile Defense, Missile & Integrated Defense Systems, and Space & Launch. We serve a diverse customer base within these end-markets where we maintain long-standing relationships and engineering partnerships. We believe that our differentiated technical design, expertise, intellectual property, and heritage of mission success provides us with a value proposition that would be difficult to replicate by our current and potential future competitors. By utilizing our vertically integrated and concept-to-production capabilities along with a highly targeted acquisition strategy, we have created a business model aimed at creating long-term, sustainable value for our customers, the programs we support, and the warfighter. — Our business approach combines both strong organic growth and our proven buy, build, and integrate acquisition strategy. Karman Space and Defense is defined by four core acquisitions that have been fully integrated into our business to create a synergistic platform with complementary capabilities and robust intellectual property (“IP”). Our formation began with the merger of Aerospace Engineering, LLC (“AEC”) and AMRO Fabricating Corporation (“AMRO”) in October 2020, which allowed us to become one of the largest independently owned suppliers focused on manufacturing complex systems for the space and missile markets. Shortly thereafter, we acquired American Automated Engineering, Inc. (“AAE”) (December 2020), a manufacturer of high-temperature composites, and Systima Technologies (“Systima”) (September 2021), a specialist in design and integration of energetic and mechanical systems into the structural design of mission-critical space and hypersonic systems. Since inception, we have completed three additional, complementary acquisitions focused on further expanding our capability set. Altogether, these acquisitions have: • United complementary capabilities that are critical to Karman’s “concept-to- production capabilities” offering to blue chip missile and space primes • Provided a storied heritage of trusted, mission success encompassing 40+ years, which we deem vital to success in our industry • Created a platform and strategic basis to continue to seek accretive, complementary acquisitions — Today, Karman operates approximately 730,000 square feet of design, engineering, and manufacturing space, supporting a single Karman go-to-market strategy. We continue to evaluate opportunities to support anticipated growth and have recently invested to outfit a new 30,000 square foot facility in Decatur, AL to primarily service a new customer. We currently operate as a Delaware limited liability company under the name TCFIII Spaceco Holdings LLC (d/b/a Karman Space and Defense) (otherwise referred to herein as “Karman LLC”), which is a holding company that holds all of the equity interests of our operating subsidiaries. Karman LLC was formed August 20, 2020. Prior to the effectiveness of the registration statement of which this prospectus forms a part, Karman LLC will convert to a Delaware corporation and we will change our name to Karman Holdings Inc. Our principal offices are located at 5351 Argosy Ave, Huntington Beach, CA.
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Engineers Gate Manager LP trimmed its holdings in Ondas Holdings Inc. (NASDAQ: ONDS) by 31.3% during the undefined quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 187,394 shares of the company's stock after selling 85,396 shares during the quarter. Engineers Gate Manager LP's
Key Takeaways Ondas posted $83.8M in Q2 revenues, up more than 13-fold, while AeroVironment reached $480.5M.Ondas raised 2026 revenue guidance to $525M-$550M but still faces execution and integration risks.AeroVironment had $1.5B in funded backlog and reaffirmed fiscal 2027 revenues of $2.125B-$2.225B. The global drone industry has reached a pivotal growth phase driven by increasing uptake across commercial, government and military sectors.
According to a report from Mordor Intelligence, the global drone tech market is expected to witness a CAGR of 9.3% from 2026 to 2031. The convergence of drones with artificial intelligence (AI), cloud computing and edge processing is further driving adoption across verticals.
Ondas Inc. (ONDS - Free Report) and AeroVironment (AVAV - Free Report) both operate in the defense and unmanned systems domain, but from very different positions in terms of scale and maturity.
These companies bring unique strengths to the table, which make this an intriguing comparison for investors.
So, the question arises: which stock makes a better investment pick at present? Let us dive into the fundamentals, valuations, growth outlook and risks for each company.
The Case for ONDSOndas’ second-quarter 2026 revenues surged more than 13 times year over year to $83.8 million and increased 67% sequentially. The top-line growth reflected acquisitions and solid execution across Ondas' core business. Pro forma organic revenues increased 85% year over year.
Ondas captured $175 million in new orders during the second quarter and $105 million through the quarter to date. Its two-year strategic program pipeline exceeded $11 billion, spanning aerial security, intelligence, surveillance and reconnaissance, precision strike and autonomous ground systems.
Visibility is improving alongside revenues. Reported backlog reached approximately $613 million as of June 30, with pro forma backlog of $757 million including DZYNE and Cyberhawk acquisitions. Management is not only focusing on selling drones but on connecting a portfolio of technologies into integrated systems spanning detection, intelligence, command and control, electronic warfare, and kinetic defeat. Ondas has continued to expand its precision-strike capabilities through acquisitions.
On the last earnings call, the company raised its full-year revenue outlook to $525-$550 million from the previous target of at least $525 million, representing more than 10 times the reported figure for 2025. At the midpoint, the outlook implies more than 30% year-over-year organic growth on a pro forma basis.
For the third quarter, revenues are expected at $140-$155 million, implying approximately 76% sequential increase at the midpoint and more than 30% organic growth year over year on a pro forma basis. In September, the company acquired GATE Technologies and Bron Technologies, adding electronic safe-and-arm devices and advanced electronic fuzing technologies. Ondas expects GATE to generate $65 million of full-year 2026 revenues, rising to $180 million in 2028, with more than $130 million in aggregate adjusted EBITDA through 2028.
For all the excitement surrounding revenue growth, second-half ramp and profitability remain the key tests for ONDS. The magnitude of the expected ramp introduces execution risk. For ONDS, if a single large customer delays, reduces or cancels, revenues could be affected materially.
Extensive M&A also amplifies execution risks. Multiple acquisitions in such a short period can create integration overload and execution risks, since achieving targets depends on timely integration and conversion of backlog into revenues. The GATE/Bron deal entails $205 million of initial consideration plus a working capital adjustment and up to another $185 million in performance-based earn-outs, further increasing the importance of successful acquisition integration and disciplined capital allocation.
Coming to profitability, second-quarter operating expenses were $199 million, substantially exceeding the quarterly revenues of $83.8 million. While more than half of expenses were noncash or acquisition-related items, adjusted cash operating expenses still totaled approximately $93 million. Adjusted EBITDA remained a loss of approximately $51 million. The company expects the second quarter to represent the peak adjusted EBITDA loss, but actual profitability still depends on anticipated second-half revenue ramp materializing. Management expects some gross-margin pressure during the second half of 2026 because of product mix and excess capacity associated with newly acquired businesses.
However, the company expects adjusted EBITDA losses to narrow beginning in the third quarter and has pulled forward its profitability timeline. Management now targets adjusted EBITDA profitability for the operating platform, including OAS and Ondas Sentinel, by the fourth quarter of 2026 and company-wide adjusted EBITDA profitability by the fourth quarter of 2027.
That makes the next several quarters particularly important. Strong revenue growth without corresponding improvement in operating leverage would weaken the core thesis. Increasing competition in the already crowded drone space is another headwind.
The Case for AVAVAVAV began fiscal 2027 on a strong note. Fiscal first-quarter revenues of $480.5 million were up 6% year over year. The company secured $683 million in bookings during the quarter, with a book-to-bill ratio of 1.4 and trailing 12-month bookings surpassed $3 billion, with a book-to-bill ratio of 1.5. Funded backlog reached $1.5 billion at quarter-end, up 37% year over year, while total funded and unfunded backlog stood at more than $2.8 billion. Management said revenue visibility to the midpoint of its fiscal 2027 outlook stood at 86%.
The Autonomous Systems segment remains the company's principal growth engine. The segment delivered 21% year-over-year revenue growth, with Uncrewed Aircraft Systems revenues up 71%, driven by strong domestic and international demand for P550, JUMP 20-X and Puma. Precision Strike and Defense Systems revenues were up 8% year over year, supported by loitering munitions, one-way attack systems and Titan counter-UAS RF products.
Several recently secured programs could support long-term growth. Earlier in the year, AVAV received a $117 million U.S. Army award for its P550 under the Long-Range Reconnaissance program, which management estimates could represent roughly a $1 billion opportunity over the next few years. The company expects to deliver the “vast majority” of the $117 million award during fiscal 2027.
Counter-UAS is emerging as another important growth avenue. The company has secured a nearly $465 million contract for its LOCUST directed-energy systems under the U.S. Army's Enduring High-Energy Laser program and received the first international order for LOCUST systems through a direct commercial sale. Management views LOCUST as a potential future franchise and believes the product line could become a more than $500 million annual business. The company is expanding its Albuquerque facility to meet anticipated demand.
AVAV is similarly investing ahead of demand across other product lines. Its new 200,000-square-foot Salt Lake City manufacturing facility is expected to support higher production of loitering munitions and is on track to open in spring 2027. This campus will have additional manufacturing capacity to meet increased demand for Switchblade product lines and other products across its portfolio.
The company is also expanding capacity in Huntsville for its Freedom Eagle-1 kinetic interceptor counter-UAS and investing $100 million in the Southern California campus.
AeroVironment reaffirmed fiscal 2027 revenues of $2.125-$2.225 billion, representing approximately 10% growth at the midpoint. Adjusted EBITDA is expected to be between $305 million and $325 million.
That said, AeroVironment has its fair share of challenges. Space, Cyber and Directed Energy segment revenues declined 21% year over year to $134 million in the fiscal first quarter, partly reflecting the termination of the SCAR contract and other discontinued government programs.
Cash generation is another area of concern. Fiscal first-quarter free cash flow was negative $36 million due to increasing capital expenditures. Management expects free cash flow to remain negative for fiscal 2027. Capex is projected at 12-14% of revenue as the company expands production capacity. However, management expects capital spending to begin returning toward more normalized levels after the current fiscal year. Exposure to the timing of U.S. government defense spending and stiff competition remain additional concerns.
Price Performance & Valuation for ONDS & AVAVYear to date, both ONDS and AVAV are down 25.8% and 35.1%, respectively.
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ONDS trades at a forward 12-month price-to-sales ratio of 4.61X, higher than AVAV’s 3.43X.
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How Do the Consensus Estimates Compare for ONDS & AVAV?For ONDS, earnings estimates for the current year have decreased 16.7% over the past 60 days.
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For AVAV, earnings estimates for the current year have been marginally lowered over the same time frame.
Key Takeaways Ondas agreed to acquire GATE and Bron for $205M, adding advanced electronic fuzing capabilities.GATE is expected to grow revenue from $65M in 2026 to $180M in 2028.Ondas is expanding production in the U.S. and Europe while pursuing additional defense acquisitions. Ondas Inc. (ONDS - Free Report) continues to deepen its position in the rapidly expanding autonomous defense and precision-strike market. It recently agreed to acquire GATE Technologies Ltd. and Bron Technologies for $205 million, with an additional performance-based earn-out of up to $185 million. The deal gives Ondas exposure to a highly specialized part of the weapons supply chain: electronic safe-and-arm devices (ESADs) and advanced electronic fuzing systems.
A key growth opportunity for GATE is the rapid expansion of loitering munitions. According to the market data cited by Ondas, the global loitering munition market could grow from approximately $5.4 billion in 2025 to $13.3 billion by 2030, representing a CAGR of roughly 20%. The acquisition also includes Bron, a European manufacturing and certification affiliate associated with GATE. Per ONDS, ESAD components are currently in tight supply, meaning GATE's value extends beyond its intellectual property. Its manufacturing capabilities, engineering expertise, certifications and existing customer relationships could provide Ondas with a ready-made platform for scaling production.
Bron's Poland-based manufacturing presence also provides Ondas with an established European production base. Approximately 80% of GATE's revenue is generated outside the Middle East, giving Ondas an extensive international footprint. The company is also establishing U.S. engineering, integration, qualification and production capabilities. Ondas expects U.S.-produced finished products and integrated systems to be available in the first half of 2027. Ondas also expects GATE to generate $65 million in revenue in 2026, $180 million in revenue in 2028 and more than $130 million in adjusted EBITDA from 2026 through 2028, implying threefold revenue growth between 2026 and 2028.
Ondas is on an acquisition spree to bolster its existing defense portfolio. In August, it proposed acquiring Aran Defense Ltd., the defense-focused division of Israeli engineering and manufacturing company Aran Ltd. Ondas expects Aran Defense to strengthen in-house engineering, prototyping and scalable production, helping convert rising demand into repeatable output with better control over quality, costs, supply and delivery.
Are ONDS’ Competitors Expanding Through Acquisitions?Draganfly (DPRO - Free Report) completed the acquisition of Skip Dynamix last month, strengthening its defense drone portfolio and expanding its presence in the low-cost autonomous aerial systems market. The deal adds fixed-wing drone technology and enhances Draganfly’s AI, autonomy and military systems capabilities, while improving its positioning in U.S., NATO and Indo-Pacific defense programs. The acquisition adds the Orca fixed-wing drone to Draganfly’s portfolio, expanding its capabilities in long-range autonomous systems. It also broadens the company’s reach across defense and government markets, creates revenue growth opportunities and retains key fixed-wing drone expertise through the continued involvement of Skip Dynamix’s founders.
Beyond unmanned systems, Kratos Defense & Security Solutions (KTOS - Free Report) is expanding in hypersonics, rocket systems, propulsion and microwave electronics. The Orbit and Nomad acquisitions add capabilities in satellite communications systems and connected mobile operations centers, extending Kratos’ addressable customer set within national security. Taken together, this mix reduces reliance on any single platform and supports a more durable order flow across cycles. Cash and cash equivalents were $1.44 billion at June end, reflecting a large equity raise alongside operating progress and acquisition activity. However, Trump Administration executive orders could reshape DoD procurement and Federal Acquisition Regulations, potentially disrupting Kratos’ operations and future contract opportunities.
ONDS’ Price Performance, Valuation and EstimatesShares of ONDS have plunged 25.9% year to date against the Zacks Wireless-National industry’s rise of 125.9%
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In terms of the forward 12-month Price/Sales ratio, ONDS is trading at 4.61, lower than the industry’s multiple of 8.07.
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For ONDS, earnings estimates for the current year have been revised significantly downward in the past 60 days.
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ONDS currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GATE Technologies is a leading developer and manufacturer of Electronic Safe & Arm Devices (ESADs) and advanced electronic fuzing solutions, with its technology integrated into dozens of weapon systems including UAVs, loitering munitions, missiles and rockets
Adds a critical layer of the precision-strike technology stack with NATO-based, non-ITAR production in Poland, while expanding Ondas' access to U.S. and European programs
WEST PALM BEACH, FL / ACCESS Newswire / September 14, 2026 / Ondas Inc. (Nasdaq:ONDS) ("Ondas" or the "Company"), a leading provider of advanced autonomous systems and next-generation defense and security technologies and services, today announced that it has acquired GATE Technologies Ltd. ("GATE"), an Israeli-based defense technology company specializing in Electronic Safe & Arm Devices ("ESADs") and advanced electronic fuzing technologies used across modern precision weapons and autonomous strike systems, and Bron Technologies ("Bron"), a European manufacturing, certification and an affiliated company to GATE's systems. Ondas will pay $205 million, the majority of which is payable in cash, plus a working capital adjustment and up to $185 million of performance-based earn-out consideration. The earn-out is tied to financial targets through 2028 and may be paid, at Ondas' election, in cash or Ondas common stock. Ondas expects the acquired business to contribute more than $130 million of aggregate Adjusted EBITDA through 2028.
Founded in 2006, GATE has developed a proprietary portfolio of highly configurable, miniaturized electronic safe-and-arm devices incorporating LEEFI initiation technology. Its technologies have been integrated into dozens of weapon systems globally, including rockets, missiles, UAVs and loitering munitions, providing mission-critical safety and fuzing capabilities inside modern weapons.
Electronic fuzing systems are mission-critical components that keep a munition safe during storage, transportation, handling and launch, and permit arming and initiation only when predetermined mission and safety conditions are met. This capability is increasingly required for loitering munitions that may change missions in-flight, abort an engagement or return safely without detonating. As weapons become smaller, more autonomous and software-defined, traditional mechanical fuzes are being replaced by fully electronic architectures that offer greater configurability, miniaturization and integration with sophisticated weapon systems. According to MarketsandMarkets, the global loitering munition market is projected to grow from approximately $5.4 billion in 2025 to approximately $13.3 billion in 2030, a compound annual growth rate of approximately 20%. Because each munition produced requires safe-and-arm and fuzing content, Ondas believes GATE is positioned to participate in this growth across a broad range of platforms and programs.
The acquisition significantly expands Ondas' precision strike platform by adding a critical layer of the technology stack while opening new customer and ecosystem networks for growth. GATE's capabilities complement Ondas' existing technologies across autonomous strike platforms, propulsion, mission systems, resilient communications, engineering, production and software-enabled mission management, strengthening Ondas' ability to provide integrated solutions across the complete autonomous strike architecture.
"GATE is a highly strategic addition to Ondas," said Eric Brock, Chairman and CEO of Ondas. "Munitions stockpiles are being rebuilt around the world, and a new generation of low-cost, autonomous munitions is becoming a growing part of the battlefield. At the same time, the market is shifting from traditional mechanical fuzes to electronic safe-and-arm devices, which are essential for weapons that are smaller, smarter and software-defined. GATE's RUBI product line and its engineering team have earned a strong position in this market through decades of qualification and integration into more than 90 weapon systems. With Ondas' global go-to-market and operating platform behind it, we believe GATE can capture meaningful market share."
"ESAD components are in tight supply today, and qualified production capacity is a bottleneck for the entire precision-strike supply chain. GATE has earned the trust of a broad base of defense OEMs and weapon programs around the world, and that customer base comes first. Ondas is committed to serving the entire market with low-cost, advanced fuzing capabilities, and we will invest in GATE's capacity, engineering and global reach so it can support more customers and more programs. Combined with GATE's attractive growth and margin profile, we expect this acquisition to generate high returns on invested capital for our shareholders," Brock concluded.
Strategic and Financial Highlights
Exposure to expanding precision-strike markets. GATE is positioned to benefit from global inventory replenishment and increasing production of missiles, rockets, loitering munitions, UAVs and other autonomous effects. Its ESAD and EISD products provide mission-critical safety, arming and initiation functionality across these end markets.Mission-critical component participation across multiple programs. With products integrated into dozens of weapon systems globally and approximately 100 configurations reported for RUBI LM, GATE can participate in growth across multiple platforms as qualified customer programs enter serial production.Proven technology with qualification-driven barriers. GATE has developed compact, configurable, fully electronic LEEFI-based products with no moving parts. Specialized engineering, weapon-level integration and rigorous safety qualification create long design-in cycles and meaningful switching friction, supporting follow-on production as customer programs scale.Established international base and pathway to U.S. localization. Its Israeli operations, current non-ITAR product portfolio and Bron Technologies' Poland-based production provide an established platform for European and allied customers with approximately 80% of GATE revenue generated outside of the Middle East. The establishment of U.S. engineering, integration, qualification and production capabilities to address customer demand and program-specific domestic-source requirements have already begun, with U.S.-produced finished products and integrated systems expected in the first half of 2027.Strong growth and profitability. Ondas expects GATE to produce $65 million of revenue in full year 2026, increasing to $180 million revenue in 2028 with a strong margin profile resulting in more than $130 million of Adjusted EBITDA generation for the full three years ending 2028. This acquisition will also support higher revenue generation and margin capture across Ondas' counter-UAS and precision strike portfolio."Electronic safe-and-arm and fuzing systems are mission-critical components in modern precision weapons," said Oshri Lugassy, Co-CEO of Ondas Autonomous Systems. "GATE has built a strategic position in this market through decades of qualification and integration across a wide array of systems. Its technology is deeply designed into customer platforms, creating strong barriers to entry and positioning GATE to benefit as global production of precision-strike systems expands."
GATE's RUBI family of ESADs combines the company's proprietary LEEFI initiation technology with a fully electronic, compact architecture that has no moving parts, and can be configured for rockets, missiles, gravity-release weapons, UAVs, high-G platforms, tandem-charge systems and motor ignition, with approximately 100 configurations developed to date. GATE's in-house engineering team tailors arming conditions, sensor configurations, triggering functionality and form factors to individual weapon programs, a capability Ondas believes has helped GATE win designed-in positions across a broad range of programs.
According to MarketsandMarkets, the global loitering munition market is projected to grow from approximately $5.4 billion in 2025 to approximately $13.3 billion in 2030, a compound annual growth rate of approximately 20%. Because each munition produced requires safe-and-arm and initiation content, Ondas believes GATE is positioned to participate in this growth across a broad range of platforms and programs.
Transaction Summary
Under the terms of the transaction, Ondas will pay $205 million, consisting of $105 million in cash and $100 million in Ondas common stock, plus a working capital adjustment. Approximately $22.5 million of such stock consideration will be issued within nine months of closing, subject to satisfaction of certain conditions. Ondas will also pay up to $185 million of performance-based earn-out consideration, subject to financial targets through 2028. The earn-out is payable in cash or Ondas common stock, at Ondas' discretion.
For additional information regarding the transaction, please see the Current Report on Form 8-K to be filed with the Securities and Exchange Commission later today. In connection with the transaction, the Company approved inducement grants of stock options exercisable for 300,000 shares of the Company's common stock with an exercise price of $7.23 per share to a total of 41 newly-hired employees in connection with the transaction. The equity awards were granted under the Ondas Inc. 2026 Inducement Plan pursuant to the Nasdaq Rule 5635(c)(4) inducement grant exception as a component of each individual's employment compensation and were granted as an inducement material to his or her acceptance of employment with the Company. The stock options vest one-third on September 14, 2027 and subsequently in twenty-four equal monthly installments, subject to the applicable employee's continued employment with the Company.
About Ondas Inc.
Ondas Inc. (Nasdaq: ONDS) is a leading provider of autonomous systems, robotics, and mission-critical technologies for defense, homeland security, public safety, critical infrastructure, and industrial markets. The Company develops and deploys integrated unmanned and autonomous platforms across air, ground, and stratospheric environments, including autonomous drone systems, counter-UAS technologies, robotic ground systems, advanced unmanned aircraft and propulsion solutions, demining and engineering systems, and integrated sensing and communications technologies designed to support intelligence, surveillance, reconnaissance, security, and operational missions in complex environments. Ondas' solutions are deployed globally by government, defense, and commercial customers to protect infrastructure, borders, transportation networks, personnel, and strategic assets.
For additional information on Ondas Inc., visit www.ondas.com.
Forward-Looking Statements
Statements made in this release that are not statements of historical or current facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance, or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors, including the risks discussed under the heading "Risk Factors" discussed under the caption "Item 1A. Risk Factors" in Part I of our most recent Annual Report on Form 10-K or any updates discussed under the caption "Item 1A. Risk Factors" in Part II of our Quarterly Reports on Form 10-Q and in our other filings with the SEC. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise that occur after that date, except as required by law.
Contacts
IR Contact for Ondas Inc.
888-657-2377
[email protected]
Media Contact for Ondas Inc.
Escalate PR
[email protected]
Preston Grimes
Marketing Manager, Ondas Inc.
[email protected]
Key Takeaways Ondas sees strong global Counter-UAS demand as customers seek defenses against sophisticated drone threats.Sentrycs posted about 298% pro forma revenue growth in Q2 2026, aided by Ondas' expanded sales platform.DZYNE's IonStrike is expected to receive volume orders and begin initial deliveries in second-half 2026. Ondas Inc. (ONDS - Free Report) continues to see strong global demand for its Counter-UAS offerings as customers seek systems capable of addressing increasingly sophisticated drone threats. The company’s approach combines several technologies across the counter-drone chain, including passive detection, cyber takeover, electronic warfare, interception and autonomous kinetic defeat. These capabilities are being integrated through software-defined command and control, allowing customers to operate coordinated systems rather than separate products.
Demand has been particularly strong for Sentrycs’ Cyber-over-RF Counter-UAS systems. Sentrycs generated approximately 298% year-over-year pro forma revenue growth in the second quarter of 2026, supported by Ondas’ expanded global sales platform, customer access and operating resources. Management expects the Cyber-over-RF platform to remain an important growth driver as customers increasingly adopt layered, multisite counter-drone infrastructure.
Ondas is also broadening its Counter-UAS portfolio through DZYNE. The company expects IonStrike to begin receiving commercial volume orders and initial deliveries during the second half of 2026. Management cited urgent demand for cost-effective kinetic solutions designed to defend against sophisticated Shahed-class drones and coordinated swarms. In addition, Ondas is combining DZYNE’s Sawtooth counter-UAS technology with Sentrycs’ Cyber-over-RF capabilities. The integrated solution is intended to provide a broader detect, identify and defeat capability by bringing sensing, electronic effects and command-and-control functions together on one platform.
Management stated that demand for counter-drone and Precision Strike technologies remains significant and is expected to continue over the foreseeable future. The company believes substantially larger inventories of these technologies will be required on a sustainable basis and is preparing capacity not only for the second half of 2026 but also for 2027 and beyond. Management also described 30-40% portfolio growth as sustainable entering 2027, while noting that some systems and markets could grow faster than others as adoption curves develop.
Taking a Look at ONDS’ CompetitorsDraganfly (DPRO - Free Report) is benefiting from growing demand in the Counter-UAS market, supported by its 27 years of drone-building experience and deep understanding of UAS vulnerabilities. The company is expanding its counter-drone capabilities through a pragmatic strategy that combines proprietary technology with partnerships and integrations. A key catalyst is its DEVCOM contract to develop an ultralight, highly mobile counter-drone system for the U.S. Department of War. The platform features proprietary tracking and system-integration capabilities and supports multiple effectors, including kinetic and RF options. Management sees this as a significant opportunity, with potential to generate hundreds of millions of dollars over the coming years.
Unusual Machines (UMAC - Free Report) is benefiting from accelerating demand in the Counter-UAS market, which management views as an emerging and potentially significant growth opportunity. Counter-drone programs use many of the same components supplied for FPV drones, allowing the company to serve multiple defense applications with its existing product portfolio. Management noted that Unusual Machines is already working with more than one Counter-UAS customer, with Powerus being the most advanced relationship to date. As large Counter-UAS contracts move through the domestic supply chain, the company expects additional component demand in late 2026 and into 2027, supporting sustained long-term growth.
ONDS’ Price Performance, Valuation and EstimatesShares of ONDS have jumped 10.5% in the past year compared with the Zacks Wireless-National industry’s rise of 97.7%.
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In terms of the forward 12-month price/sales ratio, ONDS is trading at 4.65, lower than the industry’s multiple of 8.04.
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For ONDS, earnings estimates for the current year have been revised significantly downward in the past 30 days.
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ONDS currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ONDS pairs explosive 2026 revenue growth and a $757 million backlog with widening losses, cash burn and integration risks that test its path to profit.
Key Takeaways ONDS shares fell 18.2% in a month even as second-quarter revenue surged more than 13-fold year over year.ONDS lifted 2026 revenue guidance to $525-$550 million, with Q3 revenue seen at $140-$155 million.ONDS faces widening losses, heavy cash use and added integration risk from multiple acquisitions. Ondas Inc.'s (ONDS - Free Report) shares have fallen 18.2% in the past month even as its autonomous-systems business scales rapidly. The drop raises a straightforward question: Has the market created a better entry point, or is it discounting risks that still matter?
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Revenue growth, backlog and order activity remain powerful supports. Yet losses, heavy cash use and the challenge of integrating several acquisitions keep the risk-reward picture unsettled.
ONDS Growth Still Points Sharply HigherSecond-quarter 2026 revenues reached $83.8 million, up 67% sequentially and more than 13-fold year over year. Management raised its full-year 2026 revenue target to $525-$550 million from at least $525 million.
For the third quarter, revenues are projected at $140-$155 million. The midpoint implies roughly 76% sequential growth.
Ondas Backlog and Orders Support the Growth CasePro forma backlog stood at roughly $757 million as of June 30, including DZYNE and Cyberhawk. On the last earnings call, management noted that Ondas captured $175 million of new orders in the second quarter and another $105 million through the quarter-to-date period.
Its two-year strategic program pipeline exceeded $11 billion across aerial security, intelligence, surveillance and reconnaissance, precision strike and autonomous ground systems. That pipeline is not the same as contracted backlog, but it shows the scale of programs Ondas is pursuing.
ONDS Losses and Cash Burn Keep Pressure ElevatedThe growth has come with a much larger cost base. Second-quarter operating expenses climbed to $199.1 million from $67.3 million in the first quarter, while adjusted EBITDA loss widened to $50.6 million from $10.9 million.
Net cash used in operating activities reached $137.4 million in the first half of 2026 versus $15.1 million a year earlier. Management expects adjusted EBITDA losses to improve sequentially in the third quarter, but consolidated profitability remains a future milestone.
Ondas M&A Raises Both Scale and Execution RiskOndas is integrating World View, Mistral, Omnisys, DZYNE and Cyberhawk while continuing work on earlier acquisitions. That broader platform adds capabilities across precision strike, counter-unmanned aircraft systems, intelligence and critical-infrastructure applications, but it also raises integration and delivery complexity.
AeroVironment, Inc. (AVAV - Free Report) is a relevant comparison point because it also operates across autonomous systems, counter-unmanned aircraft technology, intelligence, surveillance and reconnaissance and precision-strike missions. Red Cat Holdings, Inc. (RCAT - Free Report) likewise targets defense and security customers with small unmanned aircraft focused on intelligence, surveillance and reconnaissance and precision effects, underscoring the competitive intensity around military autonomy.
ONDS Signals Still Favor Caution After the PullbackThe pullback has not clearly turned ONDS into a bargain. The stock trades at 4.9X forward 12-month sales, only slightly below its five-year median of 5.1X and above the S&P 500's 4.8X multiple, while substantial operating losses and cash burn still need to improve.
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ONDS currently carries a Zacks Rank #4 (Sell). It also has a VGM Score of F, Value Score of F, Growth Score of F and Momentum Score of C. The Zacks Consensus Estimate for current fiscal-year EPS has deteriorated over the past four weeks.
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The Zacks Rank is designed around short-term earnings-estimate revisions, while the Style Scores are complementary indicators of value, growth and momentum characteristics. With a #4 rank and weak Style Scores, the current setup still favors caution rather than treating the decline alone as evidence of value.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways Ondas raised 2026 revenue guidance to $525-$550 million after Q2 revenues jumped to $83.8 million.Pro forma backlog reached $757 million, giving Ondas a larger contracted base entering the second half.Ondas expects Q3 revenues of $140-$155 million and targets platform EBITDA profitability by Q4 2026. Ondas Inc. (ONDS - Free Report) raised its 2026 revenue outlook after a second quarter marked by faster sales growth, sizable order wins and a sharply larger backlog. The key issue now is execution.
Management is counting on contracted programs and recently acquired capabilities to support a steep second-half revenue ramp. That makes backlog conversion, delivery timing and margin progress central to the outlook.
ONDS Q2 Revenue Reset the 2026 Growth PathSecond-quarter 2026 revenues reached $83.8 million, up 67% sequentially and more than 13-fold year over year. Revenues also beat the Zacks Consensus Estimate by 25.1%, reflecting acquisitions and solid execution across the core business.
Management raised its full-year 2026 revenue target to $525-$550 million from at least $525 million previously. At the midpoint, the outlook implies more than 30% year-over-year organic growth on a pro forma basis.
Ondas Backlog Gives the Outlook More VisibilityReported backlog was approximately $613 million as of June 30. Pro forma backlog rose to $757 million after including DZYNE and Cyberhawk, giving Ondas a larger contracted base entering the second half.
That backlog matters because the 2026 target requires a much higher quarterly run rate than Ondas delivered in the first half. The size of the contracted book improves revenue visibility, but delivery schedules still determine when that backlog becomes reported revenues.
ONDS Order Momentum Broadens the Revenue BaseOn the last earnings call, management noted Ondas captured $175 million of new orders during the second quarter and another $105 million through the quarter-to-date period. Its two-year strategic program pipeline exceeded $11 billion across aerial security, intelligence, surveillance and reconnaissance, precision strike and autonomous ground systems.
AeroVironment, Inc. (AVAV - Free Report) appears in Ondas' peer group and offers investors another reference point when evaluating execution and scale. Red Cat Holdings, Inc. (RCAT - Free Report) is also part of that peer set, providing another comparator as ONDS pursues its higher growth plan.
Ondas Guidance Hinges on Fast Backlog ConversionThird-quarter revenues are expected to reach $140-$155 million. The midpoint implies approximately 76% sequential growth, placing considerable weight on production, customer acceptance and program timing during the quarter.
Mistral is preparing deliveries against more than $240 million of aggregated orders tied to the U.S. Army's $982 million Lethal Unmanned Systems indefinite delivery, indefinite quantity program. IonStrike is expected to begin receiving commercial-volume orders and making initial deliveries during the second half of 2026.
ONDS Profitability Timing Raises the StakesThe revenue ramp is occurring against a much heavier cost base. Second-quarter operating expenses reached $199.1 million, while adjusted EBITDA loss widened to $50.6 million.
Management expects the second quarter to mark the peak adjusted EBITDA loss and sees sequential improvement in the third quarter. It now targets operating-platform adjusted EBITDA profitability by the fourth quarter of 2026 and company-wide adjusted EBITDA profitability by the fourth quarter of 2027.
Ondas Signals Keep Expectations in CheckThe raised outlook has stronger backlog and order support, but Ondas still has to convert that demand while controlling costs. First-half operating cash outflows totaled $137.4 million, and rapid acquisition activity adds integration risk as delivery requirements increase.
ONDS currently carries a Zacks Rank #4 (Sell), along with a VGM Score of F, Value Score of F, Growth Score of F and Momentum Score of C. The Rank points to an unfavorable near-term earnings-revision setup, while the F Style Scores are unfavorable across VGM, Value and Growth. The Momentum Score of C is middling, but the Style Scores are designed to complement, not override, the Zacks Rank.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Ondas Holdings Inc (NASDAQ:ONDS) traded down slightly Thursday afternoon, consolidating as heavy short interest and potential share dilution continue to weigh on investor sentiment following late-August volatility.
Ondas stock is trading near recent lows. What should traders watch with ONDS? Record Q2 Growth Overshadowed By Scaled Operating LossesIn its second-quarter report on Aug. 13, Ondas generated record revenue of $83.8 million, a 13-fold increase year-over-year that easily surpassed Wall Street estimates. The top-line surge prompted management to raise full-year 2026 revenue guidance to between $525 million and $550 million.
However, the initial post-earnings rally quickly faded as investors focused on bottom-line compression. Ondas reported a net loss of 19 cents per share, missing expectations of a 13-cent per share loss as aggressive operational scaling and integration costs from recent acquisitions weighed on gross margins.
Dilution Risks and High Short Interest Cap Near-Term UpsideTechnical overhead has kept shares anchored well below early-August highs near $9.70. A recent Form 8-K filing registered the potential resale of nearly 100,000 common shares issued for the acquisition of World View Enterprises. Resale filings signal to the market that insider or acquisition-related shares could soon be sold on the open market, creating supply-side friction.
Additionally, with short interest exceeding 40% of the float, a large contingent of traders continues to bet against the stock. While heavy shorting leaves ONDS vulnerable to sudden upward short squeezes, it reflects ongoing market skepticism over how quickly Ondas can translate its $757 million order backlog into profitable growth.
ONDS Shares Pause ThursdayONDS Price Action: Ondas shares were down 0.26% at $7.63 at the time of publication on Thursday, according to Benzinga Pro data.
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The U.S. Army just crossed a threshold it has never crossed before, and one battered defense stock is suddenly the center of a sector-wide scramble to figure out what comes next.
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A first-of-its-kind U.S. Army directed-energy production contract has reshaped the counter-drone trade Thursday morning, lifting AeroVironment, Inc. (NASDAQ:AVAV | AVAV Price Prediction) shares while smaller drone-defense names ride the read-across. The REX Drone ETF (NASDAQ:DRNZ) is up 1%, and the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 0.3%, signaling a sector-specific bid rather than a broad risk-on session.
AeroVironment stock is up 6% to $153.93 after the company landed a $464.8 million Enduring-High Energy Laser production contract from the U.S. Army. Also catching a bid on the counter-drone read-across, Unusual Machines (NYSEAMERICAN:UMAC) shares are up 1% to $23.89 without an award of their own. Red Cat Holdings (NASDAQ:RCAT) stock is climbing 3% to $8.57 as investors extend the theme to the smaller pure plays in the group.
The broader directed-energy and counter-UAS cluster is participating too, with Ondas Inc. (NASDAQ:ONDS) and Kratos Defense & Security Solutions (NASDAQ:KTOS) both ticking higher alongside the featured movers. That group has spent much of the year as a defense-sector laggard, making Thursday’s coordinated bid notable.
First Production Award for Directed Energy AeroVironment disclosed a $464.8 million award from the U.S. Army Portfolio Acquisition Executive for Fires, funding delivery of dozens of LOCUST X3 laser weapon systems under the Enduring-High Energy Laser program. It’s the first production contract for directed energy in U.S. history, moving laser weapons from prototype work into fielded units built to defeat group 1 through 3 unmanned aircraft threats.
The LOCUST X3 is a 30-kilowatt platform-agnostic system built to integrate with the Army’s Joint Light Tactical Vehicle, with palletized configurations and Infantry Squad Vehicle integration under evaluation, according to AeroVironment, Inc.. AeroVironment is supporting the production ramp with a $30 million expansion of its Albuquerque, New Mexico facility announced in March, according to AeroVironment, Inc..
On the fiscal fourth-quarter call, management previewed Enduring High Energy Lasers as “about a half a billion dollar program in size total,” so Thursday’s award sits near the top of that framing. AeroVironment also flagged that the FAA cleared directed-energy systems like LOCUST for domestic airspace earlier this year, widening the pool of protectable assets beyond overseas theaters.
AeroVironment CEO Wahid Nawabi called the deal “a defining moment not only for AV, but for the future of modern defense.” Directed Energy Systems Vice President John Garrity added that “E-HEL is not a future capability, it is a production-ready system, built on proven technology, and designed to meet the demands of today’s fight while scaling for tomorrow’s threats.”
Counter-Drone Peers Catch the Read-Across Unusual Machines and Red Cat had no matching award, so their moves reflect sector sentiment rather than a company-specific catalyst. Both names benefit from the same NDAA-compliance and counter-UAS demand story that has driven their sharp revenue ramps this year, and both carry meaningful cash cushions relative to market cap.
Ondas fits the same directed-energy and counter-drone cluster through its Sentrycs and Iron Drone brands, along with a Mistral unit that participates in a U.S. Army loitering munitions program. Kratos offers a bigger-cap read on the theme, and management flagged its own $160 million directed-energy counter-UAS award during the second-quarter call in August.
Uneven Scoreboard Through Wednesday’s Close The scoreboard heading into Thursday told very different stories across the featured group. AeroVironment stock was down 40% year to date (YTD) through Wednesday’s close, turning today’s bounce into a news-driven rally against a broken chart rather than the continuation of a trend that was already running higher.
Unusual Machines stock was up 85% YTD, the clear outlier and proof that the same counter-drone theme has paid very differently depending on the name. Red Cat stock was up 5% YTD, close to flat and giving today’s bid a little more room to run before it meets meaningful technical resistance.
The broader cluster tells a similarly split story. Ondas stock was down 22% YTD, and Kratos stock was down 37% YTD, leaving the counter-drone theme with plenty of room to catch up if additional production awards follow.
What to Watch Next The unresolved question for AeroVironment is whether a first-of-its-kind production award changes the trend or simply interrupts a rough year. LOCUST X3 deliveries stretch across multiple years, so the impact on financial results filters in gradually rather than in a single quarter, and management has already flagged that fiscal 2027 revenue is weighted toward the back half.
For AeroVironment’s counter-drone peers, the read-across only holds if additional Army and Navy counter-UAS awards follow through the fall. Investors sizing their exposure to this cluster should consider modest positions given the year-to-date volatility already visible above and the tendency of contract-driven moves to fade once the initial headline is digested.
Contact [email protected] for any questions or corrections.
Ondas Stock Tops the List as Short Sellers Build Huge Bets Summary
Ondas leads the group with short interest at 40.40%, followed by SoundHound AI at 39.50%
Ondas ONDS is drawing the highest short interest among the five names highlighted, with short positions representing 40.40% of shares outstanding. That puts the stock at the center of attention for investors watching potential volatility.
SoundHound AI SOUN follows closely, with short interest at 39.50%. The level is notable given the company's position in application software, one of the industries appearing frequently among heavily shorted stocks.
NETSTREIT NTST ranks next at 30.74%, while Centrus Energy (LEU) and CleanSpark CLSK stand at 28.95% and 28.69%, respectively. The figures show that short positioning extends across technology, energy and real estate.
High short interest does not necessarily mean a stock will rise. However, sharp moves can occur if investors betting against a company begin closing those positions.
These five names could face elevated trading volatility as investors weigh short positioning against company-specific developments.
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Ondas Inc. (NASDAQ:ONDS) stock moved lower on Monday due to sector-wide profit-taking across drone stocks and ongoing digestion of its second-quarter financial results.
The Nasdaq is down 0.22% while the S&P 500 has shed 0.46% and Ondas is lagging even as the Technology sector is up 0.09%.
• Ondas stock is under selling pressure. Why are ONDS shares declining?
On August 13, Ondas reported second quarter revenue of $83.77 million, topping the $67.97 million estimate. However, GAAP losses per share hit 19 cents, wider than the expected five-cent loss.
Stock Resale RegistrationOn Friday, Ondas filed a Form 8-K covering the resale of 99,105 common stock shares issued for its acquisition of World View Enterprises Inc.
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CEO Eric Brock said during the earnings call that demand for counter-drone systems remains strong for the “foreseeable future.” Ondas raised its full-year 2026 revenue guidance to $525 million to $550 million.
Technical AnalysisOndas is still up 42.03% over the past 12 months, but the current chart is in a repair phase: the stock is trading 11.9% below its 20-day SMA, 4.3% below its 50-day SMA, and more than 15% below both the 100-day and 200-day SMAs. That mix often signals that longer-term trend resistance is overhead, even if the stock can bounce in the short term.
Trending
The moving-average structure is mixed, with the 20-day SMA still above the 50-day SMA (a near-term bullish tilt), but the 50-day SMA remains below the 200-day SMA after the Death Cross in July, keeping the bigger-picture trend biased lower. Recent turning points matter here too: the stock put in a swing low in July and a swing high in August, so traders are watching whether price can build higher lows without getting rejected at overhead averages.
Key Resistance: $8.50 — Nearby round-number area that also lines up closely with the 50-day EMA ($8.55), where rebounds can stall. Key Support: $7 — Nearby round-number level that sits below current price and can act as the next "line in the sand" if selling accelerates ONDS Stock Price Activity: Ondas shares were down 2.76% at $7.68 at the time of publication on Monday, according to Benzinga Pro data.
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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Drone stocks whipsawed again this morning, but the bounce reveals something more useful than a simple reversal. The same force that crushed the group Monday is now lifting it, and the order is not random.
The drone complex is snapping back this morning after Monday’s bruising session, and the ordering of the bounce mirrors the ordering of the selloff almost exactly. Higher-beta names are leading. Lower-beta names are lagging.
Ondas Holdings (NASDAQ:ONDS) stock is up 6% to $8.68 in mid-morning trading. Meanwhile, Unusual Machines (NYSEAMERICAN:UMAC) stock is climbing 8% to $25.83, running out ahead of the group. AeroVironment (NASDAQ:AVAV | AVAV Price Prediction) shares are up 1% to $148.63, barely participating in the rebound.
The framing matters here. The Defiance Drone and Modern Warfare ETF (NYSEARCA:JEDI) is up 2% to $27.40, capturing the thematic bid. Also, the Invesco QQQ Trust (NASDAQ:QQQ) is up 1.06% to $718.92, marking a lift for the broad tech tape.
Risk-On Tape Lifts the Highest-Beta Corners The catalyst is not inside the drone group. Broad risk appetite returned to speculative technology this morning, and the drone complex is the leveraged expression of that mood. No company announcement, contract award, earnings release, regulatory action or analyst rating change has been verified at Ondas Holdings, Unusual Machines, AeroVironment or Red Cat Holdings (NASDAQ:RCAT) today.
The tone was set by NVIDIA (NASDAQ:NVDA), which is up 7% to $224.38 after guiding third-quarter revenue to $108 billion and fiscal 2028 revenue growth to 70%. That result gave speculative technology permission to run. NVIDIA has no direct bearing on drone companies, but the risk-appetite channel connects the two, and every high-beta corner of the tape is participating.
Positioning explains the rest. When the tape rallies, the highest-beta names lead by construction, and when it sells, they lead down. Unusual Machines carries a beta of 14.87, one of the most volatile listings in defense-tech. Ondas Holdings carries a beta of 2.75, still well above market, and AeroVironment sits closer to broad-market norms. Today’s rally is stacking in exactly that order.
Monday’s Session, Now Run in Reverse Here’s what makes the day analytically clean. On Monday we covered a session where the drone complex fell together with no shared trigger, and the order tracked volatility rather than fundamentals or year-to-date record. That coverage is here. Unusual Machines tumbled 9%, Red Cat fell 7%, and Ondas declined 5%. AeroVironment fell least.
Today the same ordering holds, only inverted. The highest-beta name is rising the most, and the lowest-beta name is barely moving. The year-to-date scorecard, importantly, predicts none of this. Ondas Holdings stock was down 15.8% year to date through Wednesday’s close, Unusual Machines stock was up 87.5% year to date through the same close, and AeroVironment stock was down 39.3% year to date through Wednesday’s close.
If year-to-date performance were driving the tape, the leader on the way down would not also lead on the way up. Yet, it does. Beta is symmetric, and that is the analytical claim worth remembering across future risk-on and risk-off days at these names. The direction of the tape sets the sign, and volatility sets the size.
What to Watch Now The next test for the drone complex is whether the bounce holds through the afternoon. High-beta names surrender gains fastest when the tape reverses, and the same volatility that produced today’s leadership can produce tomorrow’s laggards. For confirmation of continued thematic flows into the drone theme, investors can check the JEDI ETF, while QQQ serves as the broad-tape read on whether risk appetite is holding.
Investors sizing exposure to this group should keep their positions calibrated to the beta they’re actually buying (we wrote a free playbook on speculating with just a small slice of a portfolio, and the sizing rules travel well to high-beta corners like this one: here). A stock with a beta above 14 behaves like a stock with a beta above 14 in both directions, and their allocation to the drone theme should reflect that reality rather than the current direction of the tape.
Contact [email protected] for any questions or corrections.
Drone stocks are selling off hard at midday while the broader market climbs, and no earnings miss, contract loss, or macro scare explains the divergence. Something specific is happening inside the drone complex that has nothing to do with the…
Drone stocks are giving back a meaningful chunk of their August advance at midday Friday, even as broad equities push higher. The move stands out because the pullback is happening while the wider index is green, which points to concentrated profit taking inside the drone complex while broader risk appetite holds up.
The REX Drone ETF (NASDAQ:DRNZ) is down 2% to $21.67, and the fund holds a small, concentrated basket of drone names and functions as a thematic product with limited diversification. Meanwhile, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 0.4% to $774.24, which confirms that broad equity risk appetite remains intact this session.
Checking on the drone-industry peers, Unusual Machines (NYSEAMERICAN:UMAC) stock is down 9% to $23.83, Ondas Inc. (NASDAQ:ONDS) stock is down 6% to $8.20, and Red Cat Holdings (NASDAQ:RCAT) stock is down 5% to $8.83. Each name is surrendering part of a large August run.
Position-Driven Selling in Drone Stocks No company announcement, contract award, earnings release, regulatory action, or analyst rating change has been verified at Unusual Machines, Ondas, or Red Cat as of Friday morning. That absence matters, because it rules out a specific corporate trigger for the coordinated pullback across the three tickers.
A macro explanation also doesn’t fit the picture. The S&P 500 benchmark is higher on the session, so this isn’t a Federal Reserve headline or broad growth scare bleeding into speculative names.
The drone sector has run hard through August on program flow tied to the Department of War’s Drone Dominance initiative and on NDAA compliance tailwinds for domestic component makers. None of those structural drivers have shifted today, which reinforces the read that Friday’s selling looks positioning-driven, with no fresh news to blame.
Beta Sorts the Damage Unusual Machines carries a reported beta of 14.87, one of the highest single-stock beta readings in the U.S. market, and Unusual Machines stock is falling hardest of the three today. Ondas carries a beta of 2.75, materially lower, and Ondas stock is down less on the day.
Red Cat sits between them with a beta of 1.35, and Red Cat stock’s decline lands roughly in that middle position of the group. The stair-step is what you would expect when a drone-specific unwind hits each name in proportion to its own volatility profile.
One way to read the price moves in drone stocks is that beta ordering is creating a symmetric risk, meaning the same names that led the group higher would also lead it lower. Friday’s action only partially validates the thesis, however, because the broad market has held risk-on. This session shows a drone-only unwind ordered by volatility while the S&P 500 climbs.
Session Moves Against the August Run Each name entered Friday sitting on a large one-month gain, and that’s the profit pool being trimmed today. Unusual Machines was up 32% over the past month heading into the session, and Unusual Machines stock is still comfortably above where it traded in late July despite this morning’s drawdown.
Ondas was up 11% over the past month at the prior close, so Friday’s slide trims that gain without erasing it. Red Cat was up 25% over the past month over the same stretch, and Red Cat stock still sits well above its late-July level after today’s decline.
Both Unusual Machines and Red Cat reported earnings in early August, and Ondas reported later in the month, so a chunk of the August run built on top of those results. Today’s move takes some froth off that run without touching the underlying setups the market was pricing in.
What to Watch Now Investors can watch for signs the drone complex stabilizes through the afternoon or the profit taking accelerates further. The absence of a fresh catalyst cuts both ways, because it leaves the group exposed to more unwinding while also removing the drag of a specific negative headline.
Given the beta profiles across these tickers, traders holding drone names should size their positions modestly and treat the group as one concentrated risk factor, since all three tickers tend to move together. Adding aggressively on a single-session pullback in a highly volatile theme carries real downside if the unwind extends into next week, and trimming their exposure into strength can also make sense for holders sitting on the full August gain. For readers thinking about how much of their portfolio belongs in names this volatile, we laid out the sizing and exit rules in a free speculation playbook.
Contact [email protected] for any questions or corrections.
Ondas delivered a huge second quarter. Revenue rose more than thirteen times from a year ago, while pro forma backlog reached $757 million. The opportunity is real. Ondas has meaningful defense orders, exposure to a major United States drone procurement cycle, and a much broader product lineup after several acquisitions. My concern is what all of that growth will be worth per share. The share count has climbed quickly, adjusted EBITDA losses widened, and another 45 million DZYNE shares are due in Jan 2027.
Key Takeaways Ondas' Q2 revenues jumped more than 13-fold to $83.8M, while Red Cat's surged 527% to $20.2M. Ondas ended June with a $613M backlog and raised 2026 revenue guidance to $525M-$550M.Red Cat targets $150M-$180M in 2026 revenues but needs a sharp second-half ramp to reach it. Drone technology is having a moment, with the global drone industry rapidly evolving into one of the most strategically important sectors in defense, surveillance, logistics and autonomous warfare.
According to a report from Mordor Intelligence, the global drone tech market is expected to witness a CAGR of 9.3% from 2026 to 2031. The convergence of drones with artificial intelligence (AI), cloud computing and edge processing is further driving adoption across verticals.
Ondas Inc. (ONDS - Free Report) and Red Cat Holdings (RCAT - Free Report) both operate in the defense and unmanned systems domain, but from very different positions in terms of scale and maturity.
For investors seeking exposure to this theme, the key question remains: which stock offers the better opportunity right now?
Let us do a deep dive into the companies’ competitive dynamics to understand which is better positioned in the industry.
The Case for ONDSOndas recently reported second-quarter 2026 results wherein revenues surged more than 13 times year over year to $83.8 million and beat the consensus estimate by 25.1%. The top-line growth reflected acquisitions and solid execution across Ondas' core business. Pro forma organic revenues increased 85% year over year. Companies acquired since June 30, 2025, contributed $70 million of the year-over-year revenue increase, including $21.8 million from Sentrycs and $13.2 million from Omnisys. Airobotics added $6.8 million, driven by higher Optimus System and Iron Drone Raider product and service sales.
On the earnings call, management noted that Ondas captured $175 million in new orders during the second quarter and $105 million through the quarter to date. Its two-year strategic program pipeline exceeded $11 billion, spanning aerial security, intelligence, surveillance and reconnaissance, precision strike and autonomous ground systems.
Visibility is improving alongside revenues. Reported backlog reached approximately $613 million as of June 30, with pro forma backlog of $757 million including DZYNE and Cyberhawk acquisitions.Management consequently raised its full-year 2026 revenue target to $525-$550 million from the previous target of at least $525 million, representing more than 10 times the reported figure of 2025. At the midpoint, the outlook implies more than 30% year-over-year organic growth on a pro forma basis.
Management is not just focused on selling drones but trying to connect a portfolio of technologies into integrated systems spanning detection, intelligence, command and control, electronic warfare and kinetic defeat. SkyWeaver, developed with Palantir, is intended to become an Edge AI layer connecting intelligence across the portfolio. Ondas recently completed ground and aerial testing of the platform, while it is also combining DZYNE's Sawtooth technology with Sentrycs' Cyber-over-RF capabilities for counter-UAS applications.
To fund its expansion efforts, Ondas has substantial resources. Cash, cash equivalents, restricted cash and short-term investments totaled about $1.4 billion as of June 30. During the third quarter, Ondas used approximately $325 million of cash to complete the DZYNE and Cyberhawk acquisitions.
However, Ondas has its share of challenges. Extensive M&A amplifies risks, as many acquisitions in such a short period can create integration overload and execution risks, since achieving targets depends on timely integration and conversion of backlog into revenues.
Second-quarter operating expenses were $199 million, substantially exceeding the quarterly revenues of $83.8 million. While more than half of expenses consisted of noncash or acquisition-related items, adjusted cash operating expenses still totaled approximately $93 million. The company incurred approximately $4.4 million of acquisition-related transaction costs.
Adjusted EBITDA remained a loss of approximately $51 million. Management expects the second quarter to represent the peak loss, but actual profitability still depends on anticipated second-half revenue ramp materializing. Management expects some gross-margin pressure during the second half of 2026 because of product mix and excess capacity associated with newly acquired businesses.
The Case for RCATRed Cat has begun to demonstrate commercial traction, with second-quarter 2026 revenues surging 527% year over year to $20.2 million. First-half 2026 revenues reached roughly $36 million compared with just $4.8 million a year earlier. First-half gross profit improved to $5.2 million from a gross loss in the comparable prior-year period.
Red Cat is focusing on becoming an all-domain autonomy platform. It recently acquired Quaze Technologies, which develops wireless power transfer technology for unmanned and autonomous systems and drones, while APM Swarm Robotics brings multi-agent autonomy. The company is also broadening reach into the maritime sector through Blue Ops, where it is developing uncrewed surface vessels (“USV”).
RCAT is witnessing solid demand from defense and government clients and expanding program wins. The company is also sharpening its ability to rapidly scale production to meet mission-critical requirements. Its manufacturing footprint has increased fivefold since 2024 to roughly 260,000 square feet, with another 12,000 square feet added for APM operations.
Management highlighted that it entered the second half with nine active products and roughly 270,000 square feet of production capacity and improved unit economics. This creates a substantially larger operating base from which second-half growth can build. Management reaffirmed its $150-$180 million full-year revenue target. The company also indicated that $50-$80 million of sellable drones could ship immediately if corresponding orders were received, primarily Black Widow and Hellcat units.
Management expects gross margin to reach approximately 30% toward the end of 2026, supported by anticipated improvement from economies of scale as production ramps, as well as a more favorable product mix, particularly higher-margin USV revenues. Blue Ops moved its Variant 7 USV into mass production after completing production validation testing during the second quarter. The platform targets U.S. and allied defense missions spanning ISR, force protection, harbor and coastal security and contested logistics. RCAT also received its first Blue Ops revenues during the quarter. Management expects Blue Ops to become profitable by year-end if it meets the fourth-quarter internal targets, with fewer than 10 boats needed to reach that threshold.
At the quarter-end, RCAT had $325.6 million of cash, nearly double the $167.9 million at year-end 2025. This provides ample financial flexibility to fund manufacturing expansion, acquisitions, R&D and working-capital requirements.
However, execution risk is very high as the company needs to ramp significantly in the second half, as it has only generated roughly about $36 million in revenues in the first half. Even modest delays in contracts, procurement decisions or deliveries could cause revenues to fall materially short of the target.
Increasing expenses remain a concern. Operating expenses were approximately $41.9 million, while R&D alone reached $14.2 million in the second quarter. As a result, RCAT reported a net loss of $35.3 million from $13.3 million reported in the year-ago quarter. If the second-half revenue ramp is delayed, the high fixed investment in personnel, R&D, manufacturing and acquisitions could continue weighing on profitability. RCAT also faces integration risks from acquisitions and execution risks from rapid scaling. Any such problems could undermine the expected second-half revenue ramp or the targeted margin expansion.
Price Performance & Valuation for ONDS & RCATYear to date, ONDS is down 14.1% while RCAT is up 20.2%.
Image Source: Zacks Investment Research
In terms of the forward 12-month price-to-sales ratio, ONDS trades at 5.50X, lower than RCAT’s 6.14X.
Image Source: Zacks Investment Research
How Do the Consensus Estimates Compare for ONDS & RCAT?For ONDS, earnings estimates for the current year have decreased 28.6% over the past 60 days.
Image Source: Zacks Investment Research
For RCAT, earnings estimates for the current year have been lowered 14.7% over the same time frame.
Image Source: Zacks Investment Research
ONDS or RCAT: Which Is a Better Pick?While ONDS carries a Zacks Rank #3 (Hold) at present, RCAT has a Zacks Rank #4 (Sell).
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The defense drone complex is selling off together on Thursday morning, and the shape of the move matters more than the headline attached to it. Ondas Holdings (NASDAQ:ONDS) stock is down 7% to $8.31, while Unusual Machines (NYSE:UMAC) stock is down 8% to $26.13.
Meanwhile, Red Cat Holdings (NASDAQ:RCAT) stock is down 5% to $9.36, and Kratos Defense & Security Solutions (NASDAQ:KTOS) stock is down 5% to $57.61. Four names that entered the day with wildly different year-to-date setups are all falling by similar amounts, which points to positioning as the driver.
That pattern reverses what held earlier in the week, when Ondas Holdings and Red Cat Holdings shares held their ground during a Nasdaq pullback and the drone complex looked like a rotation destination. Today the group is doing the leading, and in the wrong direction.
Tariff Headline Fits the Story but Not the Size China called on the United States on Thursday to reverse Section 232 tariffs on imported drones and related components, a policy that sits over every name in this group, including Ondas Holdings and Kratos Defense. He Yadong, a spokesperson for China’s Commerce Ministry, stated in Beijing that the measures “treat related Chinese products in a discriminatory manner and seriously harms the interests of Chinese companies.”
Those tariffs stem from a proclamation President Trump signed on August 13 imposing duties of up to 100% on imported drones and unmanned aircraft components, with most rates taking effect after 21 days. Chinese President Xi Jinping visits the United States on September 24, giving Unusual Machines and Red Cat Holdings shareholders a defined window for the dispute to shift.
All four names barely reacted to the news itself. Ondas Holdings, Unusual Machines, and Kratos Defense each moved lower by less than 1% in early Thursday trading, and Red Cat Holdings traded higher. Declines of 5% to 8% developed only once the regular Thursday session was underway.
Opposite Setups, Same Selloff The cleanest evidence that this is a theme unwind sits in the year-to-date (YTD) scoreboard. Through Wednesday’s close, Unusual Machines stock was up 122%, one of the largest gains in the small-cap defense complex, while Kratos Defense stock came into Thursday down 20%. Opposite positions entirely, and both are falling by roughly the same amount today.
Red Cat Holdings stock was up 25% YTD heading into the session, and Ondas Holdings stock was down 9%. When names with opposite setups and different fundamentals move as a single block, the tape is telling investors that a theme is being unwound at the group level.
Macro conditions reinforce that read. The 30-year Treasury yield sits at 5.28%, near a 19-year high hit earlier this week, and high-multiple momentum names carry the most sensitivity to a rising long-end discount rate. Ondas Holdings stock trades at a price-to-sales ratio near 29, and Unusual Machines stock trades at roughly 44 times sales, so both sit squarely in the crosshairs of that repricing.
What to Watch Now Traders may want to keep an eye on whether the group finds a bid into the afternoon or extends losses on rising volume, since the same flows dynamic that drove the morning drop can compound if late-day sellers keep trimming exposure. Options positioning already leans defensive, with the Ondas Holdings October 2 $6.5 put showing a volume-to-open-interest ratio of 16, and the Red Cat Holdings October 2 $10 put ratio sitting above 18.
The takeaway for position sizing is straightforward. When a theme trades as a single block, owning ONDS, UMAC, RCAT, and KTOS together provides far less diversification than four separate tickers on a brokerage statement would suggest (we wrote a whole free playbook on speculating with a small slice of a portfolio and sizing it with real rules, here). Shareholders carrying overlapping drone exposure across the four should size the group as a single position, not four independent ones, until the correlation breaks and these names start trading on their own catalysts again.
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Key Takeaways Ondas plans to acquire Aran Defense for about $33M, with the deal expected to close in Q3 2026.Aran Defense could give Ondas more control over production, quality, costs and supply-chain availability.Aran Defense expects $26M in 2026 revenue, making the purchase price about 1.3 times expected sales. Ondas Inc. (ONDS - Free Report) has made another strategic move to strengthen its position in autonomous defense. It has proposed to acquire Aran Defense Ltd., the defense-focused division of Israeli engineering and manufacturing company Aran Ltd, for approximately $33 million in cash or Ondas common stock. The transaction is expected to close in the third quarter of 2026, subject to customary conditions.
Aran Defense operates approximately 4,400 square meters of engineering and manufacturing facilities in Israel. Its capabilities include CNC machining, electromechanical assembly, integration, cabling, classified production, quality control, procurement, warehousing, tactical textiles, prototype manufacturing, 3D printing and new-product introduction. By bringing these capabilities inside the Ondas organization, the company can potentially reduce its reliance on external manufacturing partners while gaining greater control over production schedules, quality, costs and supply-chain availability.
The acquisition also fits directly into Ondas’ strategy of building a stronger sovereign defense footprint in Israel. Recently, it secured a multi-million-dollar tender from the Israeli Ministry of Defense to develop and produce next-generation tactical attack drones, further driving its expansion into advanced autonomous defense systems. Ondas expects Aran Defense to strengthen in-house engineering, prototyping and scalable production, helping convert rising demand into repeatable output with better control over quality, costs, supply and delivery. Aran’s local defense relationships should also open new programs, while Ondas’ global network can support Aran’s expansion into allied markets.
The acquisition also appears relatively modest compared with Aran Defense's expected revenue. Aran Defense generated about $12 million in revenue in 2024 and $17 million in 2025. It expects nearly $26 million of revenue in 2026, along with positive adjusted EBITDA. At roughly $33 million, the purchase price represents about 1.3 times expected 2026 revenue. If Aran Defense achieves its expected 2026 revenue and remains profitable, the acquisition could provide Ondas with an immediately operating industrial platform.
Are ONDS’ Competitors Also Expanding Through M&A?Draganfly (DPRO - Free Report) completed the acquisition of Skip Dynamix last month, strengthening its defense drone portfolio and expanding its presence in the low-cost autonomous aerial systems market. The deal adds fixed-wing drone technology and enhances Draganfly’s AI, autonomy and military systems capabilities, while improving its positioning in U.S., NATO and Indo-Pacific defense programs. The acquisition adds the Orca fixed-wing drone to Draganfly’s portfolio, expanding its capabilities in long-range autonomous systems. It also broadens the company’s reach across defense and government markets, creates revenue growth opportunities and retains key fixed-wing drone expertise through the continued involvement of Skip Dynamix’s founders.
In May, Unusual Machines (UMAC - Free Report) agreed to acquire Upgrade Energy for approximately $52 million, adding battery and power system expertise to its drone components business. The deal expands the company’s product portfolio, strengthens domestic manufacturing capabilities and supports future production growth through additional U.S. facilities. In 2025, UMAC bought Rotor Lab, adding high-performance drone motor and propulsion technologies to its portfolio. The deal strengthens its commercial and defense offerings, supports U.S. manufacturing expansion and enhances motor design and engineering capabilities. It also agreed to acquire Aloft Technologies for $14.5 million, adding leading drone fleet and airspace management capabilities to its portfolio.
ONDS’ Price Performance, Valuation and EstimatesShares of ONDS have jumped 134.2% in the past year compared with the Zacks Wireless-National industry’s rise of 80%
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In terms of the forward 12-month Price/Sales ratio, ONDS is trading at 5.85, lower than the industry’s multiple of 8.04.
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For ONDS, earnings estimates for the current year have been revised significantly downward in 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.
