Welcome to another edition of Company Spotlight! This article will focus on Ondas Inc. (ONDS), or “Ondas” for short.

ONDS Business Summary

Ondas was founded in 2014 as Zev Ventures Inc. Its early years appeared to revolve around entertainment ticket sales. It merged with Ondas Networks Inc. in 2018, pivoting its business offerings to wireless technology. The company rebranded as Ondas Holdings Inc. and became listed on the NASDAQ in 2020. Ondas entered the U.S. Drone Industry in 2021 with its first merger and acquisition (M&A) with a drone OEM (to be discussed later). As of 2026, the company again rebranded itself to Ondas Inc. and currently operates through three business units: Ondas Autonomous Systems, Ondas Networks, and Ondas Capital.

The following list summarizes Ondas’ major M&A activity in approximate chronological order:

• American Robotics (2021)
• Arobotics Ltc. (2023)
• Sentrycs Ltd. (2025)
• Mistral (2026)
• World View Enterprises (2026)
• Cyberhawk (2026)
• DZYNE Technologies (2026)

The pace is certainly increasing–in fact, at this rate, they may run out of companies to acquire by the end of 2027!

Ondas is a well-diversified company within the drone space, which I see as a strength: its core operations include wireless networking, unmanned aerial vehicles (UAVs), UAV sensors, UAV software, and counter-UAS solutions. Their customer space includes commercial entities, law enforcement, and military units, all across the globe. This level of diversity gives it some resilience against dry spells, particularly during lean years of defense spending.

Although I used the word “diversified” in the previous paragraph, I am categorizing Ondas as a “Drone-Dedicated” company due to UAS being a central tenet of nearly every business line.

ONDS Stock Information

Let’s begin with a look at ONDS five-year stock price performance.

This is a relatively typical pattern for a technology stock over this timeframe. The fanatical TINA (“There Is No Alternative”) COVID-era investing began to taper off, and rising interest rates suppressed share prices across the market.

Trading volume and share price began significant rises in 2025 as the company began to benefit from two major tailwinds:

1. Tariffs, restriction, and outright bans of Chinese-made UAS.
2. Increased Defense spending on UAS and C-UAS with associated contract wins.

Perhaps non-coincidentally, 2025-2026 was also the company’s heaviest M&A activity. Let’s take a look at the company’s Total Assets as reported on ONDS Balance Sheets.

Mama mia, look at that asset growth! Is it due to tremendous revenue?

The revenue surely is growing, but not nearly at the kind of scale reflected in the Balance Sheet. If not from revenue, then how were the mergers and acquisitions (and subsequent acquisition of company assets) funded?

Similar to many other tech companies (to include those covered in this blog), the growth was largely funded by equity fundraising–specifically, stock dilution.

The company increased the number of common shares nearly 500% over the last two years. The offerings raised almost $500M in 2025, and nearly $1B in 2026. To put this in perspective, the 2026 equity offering raised nearly 10 times as much cash as the company’s most successful year of revenue.

Given this steady stream of stock dilution, it’s remarkable that the stock price has held up as well as it has. I attribute the price growth to investor optimism in continued defense contracts across the business lines.

ONDS is listed in the Technology sector, Communication Equipment industry, which seems appropriate given the company’s history of the Networks division dominating its revenue stream. However, the tide appears to be turning, as the Autonomous Systems division is now emerging as the dominant revenue source. As such, I will also compare the company’s performance to the Industrials sector, Defense and Aerospace industry.

	ONDS	Technology Sector	Industrials Sector
P/E Ratio	-103.36	39.62	32.94
EPS	-$0.03	$9.88	$9.16
P/S Ratio	-30.28	—	—
PEG Ratio	—	—	—
Price/Book Ratio	3.12	3.02	4.29
Return on Equity	7.66%	7.19%	-98.79%
Price Target (%)	$19.06 (+106%)	—	—
Analyst Recommendation	Buy	—	—

I like to look at Insider Trading to gauge how company leadership views the stock. It is common to see mostly sales, since company officers often receive equity as part of their compensation package; ONDS is certainly no different here. Sometimes, I see company officers buying stock, which I generally take as a Bullish signal. The last year of ONDS Insider Trades shows no such signal.

I generally take a steady stream of negative earnings to be a Bearish signal, and ONDS certainly fits the bill. However, the company has shown steady growth and built a healthy stockpile of assets. Analyst recommendations and price targets certainly indicate Bullish sentiment.

One item that gives me pause is the board’s freedom to increase the number of shares. The May 2026 annual meeting approved an increase of authorized stock to 1.2 billion shares. The most recent Balance Sheet shows less than 600 million shares currently outstanding; as such, the company has the ability to double the number of shares. The good news is that Ondas is not hurting for cash (nearly $1.5B reported in the most recent report) so I can only assume that further equity offerings will be used to fund M&A or other strategic ventures.

Is ONDS a Buy? Well…I’m going to lean on the famous quote “Show me the money!” prior to giving my endorsement. The current share price is propped up by legitimate hope of future revenue, which I foresee as somewhat risky. I doubt Ondas is finished with its M&A activity, so I would not be surprised by further dilution and strategic spending before revenue begins to catch up. I am also of the belief that the favorable market conditions for a U.S. drone company are somewhat temporal, and partially tied to the policies of our current administration. I absolutely expect our next administration to reverse many of these policies simply out of spite–were that to happen, Ondas’ tailwinds would calm a bit.

Is Ondas a great company? Yes. Or at least, I think so. It is well-diversified across a global marketplace. Is ONDS a great investment? No, or at least, not at the current time, in my opinion. “Hopium” is a real thing, and it is addictive. Once the company settles its M&A strategy and matures the intra-company cooperation, I can foresee it being a stable cash machine. I hope to revisit Ondas in 2027 and see this strategy playing out.

As always, please conduct your own research and consult a qualified professional prior to making an investment decision. Be advised that the author may have investments tied to this company, and others mentioned in this blog.