Ondas Inc. shares moved lower in premarket trading Wednesday after the company filed to register approximately 2.7 million shares for potential resale, adding a fresh supply overhang to the defense and autonomous systems stock. The stock was last quoted at $9.51 before the opening bell, down 1.45% from Tuesday's close.
The shares ended the prior session at $9.65, a decline of 6.31%, with the stock trading between $9.04 and $10.41 during the day, according to Google Finance data. The filing, disclosed in a June 9 Form 8-K, covers a prospectus supplement for the resale of 2,701,420 common shares by certain holders. These shares were issued as part of the company's acquisition of Israel-based Omnisys Ltd.
This is not a typical capital raise for Ondas. Instead, the shares represent the fourth installment of stock-based consideration for the Omnisys deal, which closed on May 21 with a total payout of approximately $196.6 million in common stock. The company will not receive any proceeds from the resale, but the filing allows selling stockholders to sell shares on the Nasdaq, in other markets, or through private transactions.
The resale registration adds a layer of uncertainty for Ondas, which has become a fast-moving defense-tech play. The stock has rallied this year on the back of acquisitions, a string of new orders, and growing investor interest in drones, counter-drone technology, and battlefield automation. However, such filings can pressure rallies as traders anticipate additional shares hitting the market.
To mitigate the impact, the filing includes a restriction that selling stockholders cannot sell more than 15% of Ondas' average daily trading volume over the prior 10 trading days. While this cap may help reduce the overhang, it does not eliminate the potential for selling pressure.
Ondas remains in growth mode, reporting first-quarter revenue of $50.1 million, up more than tenfold from a year earlier. The company now expects at least $390 million in revenue by 2026. Chairman and CEO Eric Brock said the company's "system-of-systems platform is scaling effectively," citing a pro forma backlog of $457 million. The company also announced over $30 million in new orders in May, pushing quarter-to-date orders above $110 million.
On June 2, Ondas announced that its World View arm secured a contract as a high-altitude balloon provider for a U.S. Navy SOUTHCOM maritime awareness project. The initial three-month deal is valued at about $4.8 million. Brock described the move as validating "stratospheric ISR" (intelligence, surveillance, and reconnaissance).
Despite the positive operational momentum, the stock faces two key risks: execution pressure and the share overhang. If Omnisys holders decide to sell into strength, or if Ondas misses its second-half revenue targets, the stock could decline sharply. The company has indicated that adjusted EBITDA losses will remain elevated in the second quarter, with improvement expected later this year.
Broader market conditions added to the cautious tone Tuesday, as technology and AI stocks slid. The Nasdaq Composite fell around 1%, weighing on growth names. Other defense and drone-related stocks also retreated before the bell, with Red Cat Holdings dropping 7.6% and AeroVironment quoted 4.5% lower.
