Ondas Holdings Inc. (NASDAQ:ONDS) saw its stock surge 11.47% on Thursday, closing at $7.58, with shares hovering near $7.60 in pre-market trading on Friday. The rally comes amid a broader uptick in defense and drone-related equities, but the company's ownership structure has shifted significantly following its recent acquisition of DZYNE Technologies.
According to a Schedule 13G filing with the SEC dated July 29, BlackRock Inc. (NYSE:BLK) held 38.13 million shares of Ondas as of June 30, representing a 7.2% stake based on the share count at that time. However, Ondas' most recent share count, which includes shares issued in connection with the DZYNE acquisition, reduces that stake to 6.69%.
Dilution from DZYNE Acquisition
Ondas completed its $200 million cash acquisition of DZYNE on July 2, issuing 39,999,998 shares immediately. An additional 44,999,998 shares are scheduled for release on January 4, 2027, as part of the deal's terms. This has led to a significant increase in the total share count, diluting existing shareholders' stakes.
Based on the share count before the immediate DZYNE shares were issued (529.86 million shares), BlackRock's 38.13 million shares would represent a 7.20% stake. But using the July 23 disclosed total of 569.86 million shares, the same holding equals 6.69% — a difference of roughly 51 basis points. A pro forma calculation including the future DZYNE shares (614.86 million total) would further reduce BlackRock's effective stake to 6.20%.
The 13G filing notes that the position is a routine holding with no intention of seeking control, and it does not reflect any trading activity after June 30.
Peer Comparison and Market Context
Ondas outperformed its selected peer group on Thursday. Red Cat Holdings (NASDAQ:RCAT) rose 9.01%, Kratos Defense & Security Solutions (NASDAQ:KTOS) gained 5.18%, and AeroVironment (NASDAQ:AVAV) advanced 3.15%. The broad strength in the sector suggests the move was not solely company-specific.
Ondas' market capitalization stood at $4.32 billion based on Thursday's close, using the most recent share count. Including the upcoming DZYNE shares, the pro forma valuation is $4.66 billion, which equates to 8.9 times projected 2026 revenue.
Revenue Targets and Financial Performance
Ondas reported first-quarter revenue of $50.1 million. The company has guided full-year 2026 revenue to at least $525 million, which includes contributions from DZYNE and Omnisys. To hit that target, Ondas must generate an average of $158.3 million per quarter from Q2 through Q4 — a figure 3.16 times higher than the Q1 result.
DZYNE is projected to contribute $191 million in 2026 revenue. CEO Eric Brock said the acquisition "significantly strengthens Ondas' financial profile, adding substantial scale and revenue growth."
However, profitability remains a concern. First-quarter gross margin was 49%, but the company posted an operating loss of $42.7 million and an adjusted EBITDA loss of $10.9 million. Management has indicated that Q2 losses could remain elevated and possibly peak.
Upcoming Catalysts and Risks
Ondas is scheduled to release its second-quarter earnings on August 13, followed by a conference call at 8:30 a.m. EDT. Since the DZYNE deal closed on July 2, consolidated results from DZYNE will only begin appearing in the third quarter.
Key risks include integration challenges from the acquisition, uneven system sales, and ongoing operating losses. The planned stock issuances may lead to further dilution for current shareholders.
Investors will be watching closely to see if the company can execute on its aggressive revenue targets while managing its cost structure.
