Ondas Stock Surges, But the $390 Million Move Has a Caveat

26 May 2026

NEW YORK, May 26, 2026, 13:05 EDT

Ondas Inc shares climbed 9% midday Tuesday. Investors kept buying into the defense-drone company’s growth push, following a revenue surge and the closing of its Israeli software deal. The Nasdaq-listed stock traded near $9.90. Volume topped 52 million shares intraday.

Investors are looking at Ondas differently now. The company isn’t getting a small-cap wireless-networking multiple anymore. Markets are seeing Ondas as a defense tech roll-up, as management goes after at least $390 million in 2026 revenue. First-quarter sales came in at $50.1 million, compared with $4.3 million the previous year.

The company says its $457 million pro forma backlog is driving growth. This backlog represents orders and work under contract that haven’t been booked as revenue yet. Recent deals including Mistral Inc and World View Enterprises, which both closed in April, boosted that total.

Ondas finished its buyout of Israel’s Omnisys Ltd on May 21, locking in a $196.6 million all-stock deal, according to a U.S. securities filing. The document said Ondas picked up every share of Omnisys and most of the payment will come through stock installments over time.

Omnisys develops BRO—short for Battle Resource Optimization—software used in multi-domain defense planning and decisions. The tool lets military operators pull in data from different sensors, command systems and platforms to help speed up asset allocation. Ondas said Omnisys should bring in more than $100 million in revenue across 2026 and 2027, describing margins as high.

Eric Brock, CEO of Ondas, called Omnisys’ platform a “major advancement” for the company’s defense systems plans. Omnisys CEO Ofer Yarden said Ondas’ “global reach and resources” will help the company move into international markets. Ondas Inc.

Ondas keeps adding Israeli defense and robotics companies. The company has bought or signed deals for Airobotics, Sentrycs, RoboTeam, INDO, and now Omnisys, according to Globes republishing in the Jerusalem Post. Omnisys, which is in Rosh Ha’ayin, has around 185 staff in the country.

Ondas’ first-quarter numbers are heavy on growth from acquisitions. The latest quarterly report showed $34.7 million in revenue tied to companies picked up since March 31, 2025. Sentry CS Ltd brought in $15.8 million. Airobotics added $11.4 million.

Ondas posted gross profit of $24.7 million for the first quarter, but costs kept up. The company had an operating loss of $42.7 million as operating expenses climbed to $67.3 million. Adjusted EBITDA stayed negative at $10.9 million, even with those adjustments.

Needham kept its Buy and $23 target after the Omnisys acquisition, calling the deal a way to bring a software orchestration layer to Ondas’ autonomous defense stack. Needham figures Omnisys could push 2026 pro forma revenue up by $30 million to $40 million, and sees extra upside possible in 2027.

Shares of other defense and drone stocks moved up Tuesday as well. AeroVironment added around 5%. Red Cat Holdings climbed about 5%. Palantir Technologies, a partner with Ondas, traded a bit higher.

Execution is the concern here. Ondas is pulling together different businesses and paying for deals with new shares, and the stock has been on a big run. Selena Maranjian at Motley Fool said she’s staying away because of valuation, citing a price-to-sales ratio of 36.3 and the company’s losses.

For now, markets think Ondas will use its backlog, recent deals, and defense contracts to grow a bigger software-centric business. The next step comes down to execution—turning those orders into revenue and keeping integration costs, dilution, and margin pressure from becoming the main story.

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Khadija Saeed is a financial markets reporter at TS2.tech. Her coverage ranges from stocks and technology to emerging industries and developments across global markets. She studied economics and finance at the London School of Economics and worked in market research before becoming a financial journalist. Follow Khadija Saeed on Google News.

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