Ondas Holdings Inc. (NASDAQ:ONDS) saw its shares slip 2.47% in premarket trading Tuesday to $8.67, following a mixed reaction to the company's announcement of more than $40 million in new defense orders for June. The stock closed Monday at $8.89, down 4.10% from its previous session.
The company reported that the fresh orders, which include counter-UAS systems, loitering munition systems, ground systems, and defense services, have pushed its second-quarter-to-date order total above $150 million. This marks a significant acceleration in business momentum for Ondas, which is transitioning from its industrial wireless and drone roots to become a defense-autonomy platform.
However, the positive order news was tempered by a concurrent SEC filing that registered 3.13 million shares for potential resale by selling stockholders. The majority of these shares are tied to the company's recent acquisition of Omnisys, with a smaller portion linked to its World View deal. While the filing does not necessarily mean all shares will hit the market at once, it introduces an element of supply overhang that can weigh on share price, particularly in a stock known for volatile trading driven by retail and defense-sector interest.
Ondas will not receive any proceeds from the sale of these shares, as per the filing. The registered block represents approximately 0.6% of the 517.2 million shares outstanding, a relatively small slice but enough to attract attention in a stock that has seen significant run-up on defense-order news.
CEO Eric Brock commented on the new orders, stating, "June new orders demonstrate the increasing demand for autonomous defense technology." Oshri Lugassy, co-CEO of Ondas Autonomous Systems, added that customers are shifting from single drone offerings to "integrated autonomous architectures." The company also noted that its UK subsidiary, Rotron Aerospace, recently completed a SkyLance flight demonstration for the UK Ministry of Defence's Project Brakestop. SkyLance is a one-way-effect weapon designed for precision strikes.
The broader market backdrop was also challenging on Tuesday, with Nasdaq futures dropping over 2% as investors rotated out of growth stocks amid concerns about funding costs and interest rates. Drone and defense autonomy peers, including AeroVironment, Kratos Defense & Security Solutions, and Red Cat Holdings, also traded lower in premarket action.
Ondas is fresh off a series of strategic moves. On June 18, the company announced it would acquire Cyberhawk in a deal worth approximately $125 million, with about 95% of the consideration in cash. The acquisition, expected to close in the third quarter pending regulatory approvals, would add drone inspection and data analytics capabilities for utility, energy, and industrial clients. Cyberhawk is projected to generate over $45 million in revenue for its fiscal year ending March 2027, with roughly 95% recurring and a backlog of $95 million.
The company's first-quarter revenue surged to $50.1 million from $4.25 million a year earlier, and management raised its 2026 revenue target to at least $390 million. Pro forma backlog stood at $457 million. However, orders and backlog are not guaranteed cash flows; defense contracts can face delays, the Cyberhawk deal is not yet closed, and integration risks remain.
The key question for Ondas is whether it can convert its order momentum into actual deliveries, margin expansion, and cash flow. For now, the stock may continue to trade more like a high-risk drone and AI play than a steady defense contractor, with the resale filing adding a layer of uncertainty.
