New York, May 18, 2026, 12:04 EDT
Ondas Inc. shares dropped roughly 10% in midday Nasdaq trade Monday, pulling back from last week’s gains as the company announced an all-stock deal to buy Israeli defense software firm Omnisys and filed for a resale of shares. The stock was last at $9.555, off an intraday low of $9.53, with volume topping 48 million.
Ondas wants to take its quick acquisitions in drone, counter-drone, and defense robotics and make one larger software platform for the battlefield. Now, traders are asking less about demand and more about whether Ondas can pull these deals together without flooding the market with extra shares.
Ondas said in a filing that on May 16 it struck a deal to buy all of Omnisys for $199 million in Ondas stock. The deal also includes up to $60 million more in stock-based earn-outs over three years if Omnisys hits certain milestones. An earn-out is extra payment tied to targets. Ondas expects the transaction to close in the second quarter, pending approvals and other conditions like the retention of all key employees and at least 90% of Omnisys staff and contingent workers.
Omnisys makes Battle Resource Optimization, or BRO, software for military planning and battlefield decisions. Ondas Chairman and CEO Eric Brock called it “a proven, battle-tested software platform.” Oshri Lugassy, co-CEO of Ondas Autonomous Systems, said the deal brings “true closed-loop operations.” Omnisys CEO Ofer Yarden described BRO as “a unique, battle-proven capability.” Ondas Inc.
CTech, the Israeli tech outlet, said Omnisys is based in Rosh Haayin and has about 185 staff. Omnisys would become a subsidiary of Ondas. CTech also called this Ondas’ 15th acquisition in two years. Earlier deals included Airobotics, Roboteam, and Sentrycs.
Ondas filed a prospectus supplement that morning tied to the possible resale of 2,264,491 shares from its Mistral deal. The company said any money would go to the selling shareholders, not to Ondas itself, and a daily cap on share sales is tied to average trading volume. A resale filing doesn’t require shares to hit the market right away, but it can weigh on the stock if investors think more supply is coming.
Ondas is feeling some heat after a big earnings-fueled rally. The company on May 14 posted first-quarter revenue of $50.1 million, more than ten times what it did a year ago, and lifted its 2026 revenue outlook to at least $390 million. The company also reported a $457 million pro forma backlog and had $1.48 billion in cash, cash equivalents, restricted cash and short-term investments at the end of March. Adjusted EBITDA came in at a loss of $10.9 million, which excludes interest, taxes, depreciation and some non-cash costs.
Ondas’s latest quarterly report points to why the stock is still exposed to dilution and execution worries. The company had 495.8 million common shares outstanding as of May 13. First-quarter operating cash outflow was $51.3 million. Three customers made up 32%, 20%, and 17% of revenue in the period, another sign the company’s results can be uneven.
Peer action pointed to Monday’s selling being tied mainly to the company itself. AeroVironment, a listed drone and defense group, gained roughly 1.5%. Kratos Defense picked up about 2.2%. Palantir, which works with Ondas, dipped 1.3%.
The risk is clear. Delays with Omnisys, tougher employee-retention terms, or customers holding off on orders could make it harder for Ondas to turn backlog into more consistent profit. Ondas has told investors to expect adjusted EBITDA losses to stay high in the second quarter and improve later in the year.
Right now, the stock isn’t moving much on talk of battlefield AI. Proof is what counts. Investors are eyeing whether Ondas can get operating leverage out of acquisitions, cash and backlog, and do it without more pressure on the shares.
