Ondas Inc. ONDS has delivered a 20.6% gain in the past month, outperforming the Wireless National industry (down 20.9%) and the S&P 500 composite (up 2.4%). The strong M&A activity including acquistion of DZYNE Technologies, LLC (July 6) and subsequent outlook raise are likely to have acted as the catalyst.
Price Performance
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Ondas has also outperformed some of its peers in the drone space. Red Cat Holdings RCAT is down 6.2%, while Kratos Defense & Security Solutions KTOS and AeroVironment AVAV have gained 9.9% and 3.4%, respectively.
Yet, despite this strong run, the stock remains well below the 52-week high of $15.28, closing its last day at $8.87. This raises a key question for investors: has the easy money already been made, or does Ondas still offer meaningful upside?
Let’s do a deep dive.
ONDS: DZYNE Sets the Tone for Growth
DZYNE is the latest name in Ondas’ long list of acquisitions. The deal is valued at $875.8 million, comprising $200 million in cash and roughly $675 million in stock. DZYNE further expands Ondas’ reach across c-UAS, multi-domain ISR, precision strike, mission intelligence and autonomous systems. Both World View and DZYNE will operate within the company’s newly launched business division, Ondas Sentinel.
Ondas, through rapid M&A, has built a multi-domain autonomy platform spanning Intelligence, Surveillance, Reconnaissance or ISR, c-UAS, loitering munitions/strike systems, unmanned ground vehicles and stratospheric sensing via World View acquisition.
Following this development, Ondas now expects 2026 revenues to be at least $525 million from the previous forecast of $390 million. DZYNE is expected to contribute approximately $191 million in revenues in 2026 and $300 million in 2027.
This increase also reflects contributions from the Omnisys (adds AI-powered battlefield orchestration software to its autonomous defense systems portfolio) acquisition announced in May 2026. ONDS also announced the $125 million acquisition of Cyberhawk, a provider of drone-based infrastructure inspection and AI-powered asset intelligence, in June 2026. In the first quarter, the company completed five acquisitions (World View, INDO Earth, Rotron Aerospace, Bird Aero and Mistral Inc).
Ondas Holdings Inc. Revenue (Quarterly)
Ondas Holdings Inc. revenue-quarterly | Ondas Holdings Inc. Quote
Recently, Mistral secured a $50 million-plus contract from the U.S. Army for tactical Lethal Unmanned Systems (“LUS”) under a previously awarded $982 million multi-year Indefinite Delivery, Indefinite Quantity contract. Mistral's total awards, under the LUS program, to date have surpassed $240 million, including the new contract along with the initial $190.8 million award.
Ondas is eyeing the fast-growing precision strike segment within the defense space and the acquisitions of Mistral, DZYNE and Rotron strengthen its ability to deliver a wider portfolio of precision-strike solutions.
Further, on July 22, management noted that the company had secured $70 million in new orders across its defense, security and autonomous technology portfolio over the past four weeks. As of June 22, 2026, Ondas noted that second-quarter-to-date order activity stood at more than $150 million.
ONDS: Challenges Far From Over
Despite the impressive growth story, Ondas carries substantial risks. Extensive M&A amplifies risks, as so many acquisitions in such a short period can create integration overload and execution risks, as achieving targets depends on timely integration and conversion of backlog into revenues.
Profitability remains concerning. Ondas faces rising operating costs as it invests in personnel and infrastructure capabilities to capture additional market opportunities. Amid rising costs, management expects adjusted EBITDA losses to stay elevated in the second quarter of 2026, likely marking the peak loss period. Beyond that, ONDS expects improvement throughout the year, driven by higher revenues, gross profit and operational scale.
Notably, management pulled forward the OAS EBITDA profitability target to the first quarter of 2027 — roughly six months ahead of the earlier target. Expectations for company-wide adjusted EBITDA profitability were unchanged, with the target being the first quarter of 2028. The key factor driving this is the company’s progress at the product level.
Nonetheless, the path to profitability remains heavily dependent on flawless execution. Any delays in integration and order conversion could push the profitability timeline further out. Increasing competition in the already crowded drone space is another headwind.
The drone industry is experiencing rapid growth, with the unmanned aerial vehicle drones market expected to witness a CAGR of 9.3% from 2026 to 2031, according to a report from Mordor Intelligence. Competition has intensified with drone companies such as Red Cat, Kratos Defense and AeroVironment striving hard to capture a larger share.
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Given these factors, analysts have downgraded their earnings estimates for ONDS’ second quarter over the past 60 days.
ONDS: Valuation Leaves Room for Debate
ONDS is trading at a forward 12-month price-to-sales ratio of 6.13X, a slight discount compared with the Zacks Wireless National industry’s 7.1X.
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The forward 12-month price/sales multiple for KTOS, AVAV and RCAT stand at 5.24X, 3.72X and 5.58X, respectively.
ONDS Investment View: Stay Put
At present, ONDS carries a Zacks Rank #3 (Hold).
Ondas is moving forward with strong momentum in orders and backlog, but much depends on its ability to execute and integrate recent acquisitions effectively.
While the long-term opportunity remains compelling, the near-term profitability issues justify a balanced, wait-and-watch stance.
Investors already holding can remain invested and ride the M&A wave, but new investors would be better off waiting for a more attractive entry point.
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