New York, February 5, 2026, 14:34 (EST) — Regular session
- Ondas shares dropped roughly 9%, settling at $8.77 in afternoon trading, following a range between $8.56 and $9.80 earlier.
- The stock plunged further following a bearish report from J Capital Research released the previous day
- Ondas revealed an Asia-Pacific defense deal this week and struck a deal to acquire UK-based Rotron Aero
Shares of Ondas Inc took a hit on Thursday, dropping roughly 9% as the small-cap defense drone and wireless-networking firm continued its steep slide. By mid-afternoon, the Nasdaq-listed stock was trading down 9.4% at $8.77, with around 76 million shares changing hands.
The slide is significant given Ondas’s recent surge on rapid-fire deal news, leaving the tape jittery. Traders who pushed the stock up earlier this week are now questioning if new contract announcements can offset concerns over how the company will finance its growth.
The tension has taken center stage. Bulls want to see signed orders and delivery timelines, while skeptics focus on dilution — the selling of new shares that cuts into current investors’ stakes — and the risk that acquisitions might take a while to yield results.
J Capital Research, a self-described short-seller, released a note Wednesday titled “Ondas Won’t Live Up to the Hype.” It slammed Ondas’ strategy as “high-priced, money-losing acquisitions funded by massive share dilution,” accusing the company of “incinerating cash and value” while pointing to past fundraising rounds and insider sales. 1
Ondas shifted focus with news Tuesday that its Airobotics unit landed a “strategic” deal with a government defense client in the Asia-Pacific region. The contract covers autonomous unmanned aerial systems — drones — aimed at national security tasks. Initial deliveries are slated for this year, with potential follow-up orders. CEO Eric Brock noted demand in the area is “accelerating,” while OAS co-CEO Oshri Lugassy described the platforms as “combat proven.” 2
Ondas revealed the previous day that it had signed a definitive agreement to acquire Rotron Aero, a UK-based developer specializing in unmanned systems and long-range autonomous platforms. The deal involves a mix of cash and stock. Brock described the acquisition as a move that would “accelerate” Ondas’ drive toward full “end-to-end autonomous mission capability.” Corporate development head Mark Green added that the purchase would broaden the company’s presence in the UK and NATO markets. According to a Form 8-K filing, the deal is still pending customary conditions and regulatory approvals.
Ondas dropped 14.7% on Wednesday following the J Capital report, per Investing.com, with the downward pressure extending into Thursday. 3
Ondas highlighted its Asia-Pacific award at the Singapore Airshow, which continues through Feb. 8. Investors are eager for specifics on contract size, delivery timing, and if the company can secure additional orders while present in Singapore. 4
The downside scenario is straightforward. The Asia-Pacific deal didn’t reveal the customer or the dollar amount involved, and the Rotron deal hasn’t closed yet. Any regulatory hiccup, integration issues, or fresh fundraising round could keep the stock volatile.
Traders are now turning their attention to new updates from the Singapore Airshow before it closes on Sunday, along with any filings that clarify the timelines and details of the Rotron acquisition.
