Ondas Inc. (ONDS) shares edged higher on Thursday, closing at $9.27, a gain of 1.64%, as the company heads into the Juneteenth holiday weekend with a significant acquisition in its portfolio. The stock's modest rise comes after a bumpy week, with shares still roughly 0.6% below their June 12 close of $9.33.
Deal Details
The company announced a deal to acquire Cyberhawk, a drone-inspection software firm, for approximately $125 million. The transaction is heavily weighted toward cash, with about 95% of the purchase price to be paid in cash. A small portion, roughly $5 million, will be rolled into Ondas stock by certain Cyberhawk executives, subject to a one-year lock-up period. The deal is expected to close in the third quarter of 2026.
Cyberhawk operates in 40 countries and serves over 300 customers, generating more than $45 million in forecast revenue for its fiscal year ending March 2027. The company boasts a $95 million backlog and 95% recurring revenue, underpinned by multi-year contracts and subscriptions. EBITDA margins are in the high single digits.
Strategic Rationale
Eric Brock, chairman and CEO of Ondas, described Cyberhawk as a “transformative addition to Ondas,” highlighting its role in expanding the company beyond autonomous defense and security gear into critical infrastructure intelligence. This includes data and software for monitoring power lines, energy plants, and industrial sites. Chris Fleming, CEO and founder of Cyberhawk, emphasized the deal’s potential to lower risk and human exposure in inspection operations.
Mark Green, Ondas’ global head of corporate development and M&A, pointed to Cyberhawk’s “strong customer retention” and “leadership position in utility infrastructure intelligence” as key drivers of the acquisition.
Market Context
Ondas had cash on hand to support the deal, reporting $1.48 billion in cash, cash equivalents, restricted cash, and short-term investments at the end of March. The company raised its 2026 revenue target to at least $390 million, citing “record levels of backlog and visibility.” First-quarter revenue came in at $50.1 million.
The acquisition shifts Ondas’ competitive landscape. While AeroVironment remains a standout in unmanned aircraft and loitering munitions, and Skydio focuses on autonomous drones for utility and infrastructure firms, Ondas is moving toward software and services for inspections rather than just hardware and defense autonomy.
Risks and Outlook
The deal still faces regulatory approvals and standard closing conditions. Ondas’ own slide deck cautioned that forward-looking numbers are not promises and that a GAAP reconciliation for the 2030 EBITDA-margin target would require unreasonable effort. Integration risks are notable given the pace of the acquisition.
U.S. markets will be closed Friday for Juneteenth, so trading resumes Monday. Investors will then weigh the value of Cyberhawk’s data business against the integration challenges. The pitch is that selling industrial inspection data can yield higher margins over time, but execution will be key.
On Thursday, broader markets also rose, with the S&P 500 up 1.1%, the Nasdaq Composite adding 1.9%, and the Russell 2000 gaining 2.1%, according to AP.
