Ondas Holdings Inc. (ONDS) saw its stock decline approximately 6.6% in midday trading on Wednesday, with shares changing hands at $7.96 on the Nasdaq. The dip came despite the company announcing more than $40 million in new defense orders for June and a strategic partnership with Lockheed Martin (LMT) on counter-drone technology. Trading volume surged past 31 million shares, reflecting heightened investor activity.
Lockheed Martin Partnership
The company revealed on Tuesday that its Sentrycs counter-drone unit will integrate its Cyber-over-RF technology into Lockheed Martin's Sanctum counter-UAS platform. Counter-UAS systems are designed to detect, track, and neutralize unauthorized drones. Matt Bahnemann, a senior program manager at Lockheed Martin, stated that the collaboration "expands the layered sensing and response options" available to operators. Ondas' Cyber-over-RF approach operates through a drone's radio link, allowing Sentrycs to identify and take control of rogue drones without relying on wide-area jamming or physical interception—a critical advantage for sensitive locations such as airports and stadiums.
Defense Order Momentum
Ondas announced on Monday that it secured over $40 million in new orders for autonomous defense systems during June, including counter-UAS, loitering munition systems, ground systems, and related services. This pushed the company's second-quarter order volume past $150 million. Loitering munition systems are one-way drones that can hover over a target before striking. "Counter-UAS has become an urgent priority," said Eric Brock, Ondas' chairman and CEO, noting growing demand for loitering munitions alongside counter-drone solutions.
Competitive Landscape
The counter-drone market is becoming increasingly crowded. Axios reported this week that Kansas City police deployed DroneShield equipment during World Cup events. Tom Adams, DroneShield's director of public safety, told Axios that modern security involves more than just "gates, guns and guards." In February, Fortem Technologies announced a multimillion-dollar order to secure U.S. World Cup sites using radar, command software, and drone interceptors. U.S. officials in January unveiled a $115 million initiative to bolster counter-drone technology ahead of the World Cup and America's 250th anniversary celebrations, while Reuters noted that FEMA approved $250 million for 11 host states to acquire such systems.
Strategic Acquisition and Financial Outlook
Ondas is also expanding its footprint in adjacent markets. Last week, the company agreed to acquire Cyberhawk, a provider of drone inspection and infrastructure data services, for approximately $125 million. The deal is expected to close in the third quarter, subject to regulatory approvals and customary conditions. "We have worked in drone-enabled inspection since 2008," said Chris Fleming, Cyberhawk's founder and CEO. In the first quarter, Ondas reported revenue of $50.1 million, a sharp increase from $4.3 million in the same period last year. The company also raised its 2026 revenue target to at least $390 million, with backlog—orders not yet recognized as revenue—standing at $457 million after accounting for recent acquisitions.
Risk Factors
Despite the positive developments, investor sentiment was weighed down by a prospectus supplement filed Monday, which disclosed that selling stockholders could offload up to 3,126,979 shares over time. Ondas emphasized that it will not receive any proceeds from these sales. In its latest quarterly report, the company acknowledged that its business, cash flow, and results face risks beyond its control, including slower order conversion, potential delays in closing the Cyberhawk acquisition, and further stock sales by existing holders—all of which could undermine the growth narrative.
