New York, May 20, 2026, 12:21 EDT
Ondas Inc. shares rose in midday trading on Wednesday as investors weighed the company’s planned purchase of Israeli defense software firm Omnisys against a stock that has already had a sharp defense-drone run. The shares recently traded up 3.3% at $9.43, after touching $9.47, with about 22.0 million shares changing hands.
The reason this matters now is not just another acquisition. Ondas is trying to move further into software-defined defense systems, where unmanned aircraft, sensors and command software are tied together for faster battlefield decisions. The company said on Monday it had agreed to buy 100% of Omnisys, whose Battle Resource Optimization software, or BRO, helps plan and allocate defense resources in real time.
A filing showed the Omnisys deal carries a $199 million stock purchase price, with up to $60 million more in contingent earn-out payments, also payable in stock. The deal is expected to close in the second quarter, but it still faces closing conditions including government approvals and employee-retention requirements. That is the risk paragraph: stock-funded deals can dilute holders, and the strategic case depends on Ondas integrating another asset quickly enough to justify the new shares.
Needham kept a Buy rating and a $23 price target on Ondas after the announcement, saying the deal adds a software orchestration layer to the company’s autonomous systems portfolio. The firm estimated Omnisys could add $30 million to $40 million in pro forma 2026 revenue, with more upside in 2027 if Ondas expands the product across allied defense markets.
Company executives used careful but pointed language. Chief Executive Eric Brock called BRO a “battle-tested software platform,” while Oshri Lugassy, co-chief executive of Ondas Autonomous Systems, said the deal could enable “closed-loop operations” linking sensors, platforms and effectors. Omnisys CEO Ofer Yarden said the company would use Ondas’ reach to expand BRO internationally.
The deal lands less than a week after Ondas reported first-quarter revenue of $50.1 million, up 1,065% from a year earlier, and raised its 2026 revenue target to at least $390 million. The company said pro forma backlog reached $457 million, while adjusted EBITDA — earnings before interest, taxes, depreciation and amortization, excluding some items — was still a loss of $10.9 million.
Brock said the backlog gave Ondas “strong visibility into our 2026 targets.” The phrase matters because the company is still spending ahead of revenue, with operating expenses rising as it folds in acquisitions and builds a larger defense platform. Ondas Inc.
Defense and drone-related peers also traded higher. The iShares U.S. Aerospace & Defense ETF rose 2.4%, while AeroVironment gained 1.0%, Kratos Defense rose 3.8% and Karman Holdings added 0.8%. That helped the tape, but Ondas’ move stayed tied mainly to its own deal flow and guidance reset.
The next test is less about the headline number and more about delivery. Investors now have to see whether Omnisys adds profitable software revenue, whether Ondas can keep adjusted EBITDA losses from widening further, and whether the backlog turns into shipments on the timetable management has laid out.
