$ONDS

The U.S. defense budget proposal allocates $1.5 trillion, with $74 billion for drones, sparking a rally in drone-related stocks. Companies like ONDS, RCAT, AVAV, KTOS, and DPRO saw overnight gains of 2-3%. ONDS's subsidiary secured a $20 million border security order, while RCAT and KTOS won recent defense contracts.

U.S. stock futures rose late Tuesday, with S&P 500 and Dow up 0.2%, Nasdaq up 0.4%, ahead of the Fed's rate decision. Oil prices surged due to Iran tensions. Swarmer (SWRM) surged 520% in debut, Micron (MU) hit all-time high, Ondas (ONDS) rose on acquisition, SoFi (SOFI) fell on short position, Lululemon (LULU) dropped on weak outlook.

Ondas Inc. (ONDS) trades at yearly lows due to market confusion and recent acquisitions. The company projects 30%+ organic growth with $525M in revenue for 2024. It trades at 5x '27 revenue targets with a pro forma cash balance of $1B and a $5B market cap. An analyst suggests the company should reduce acquisitions to reassure the market.

Ondas Holdings (ONDS), Unusual Machines (UMAC), Red Cat Holdings (RCAT), and Kratos Defense (KTOS) fell 5-8% as drone stocks experienced a theme unwind. China's call to reverse U.S. tariffs on drones had minimal impact. Macro conditions, including high Treasury yields, pressured high-multiple stocks. Investors should monitor group correlation and positioning.

Drone stocks showed resilience during a Nasdaq sell-off. Red Cat (RCAT) fell 2%, AeroVironment (AVAV) dropped 4% to $174, and Ondas (ONDS) rose 1%. The iShares U.S. Aerospace & Defense ETF (ITA) gained 0.38%, while the iShares Semiconductor ETF (SOXX) fell 5%. AVAV's decline may be due to profit-taking after a 27% monthly gain, with analysts targeting $226. RCAT is up 37% in a month, and ONDS raised its FY26 revenue target to $390M.

Ondas (ONDS) reported Q2 revenue of $83.8M, up 67% sequentially and 85% YoY organically. The company raised full-year guidance to $525M-$550M and expects a $1B annualized run rate by year-end. However, it also posted a $51M adjusted EBITDA loss and warned of margin pressure. The stock is polarizing, with high institutional ownership and significant short interest.

Ondas Inc (ONDS) rose 3.7% after reporting Q2 2026 revenue of $83.8M, up 67% from Q1 and 13x year-over-year. The company guided to $525M–$550M in 2026 revenue, supported by a $757M backlog. Analysts raised price targets, with Oppenheimer increasing its target to $18. ONDS reported a net loss of $88.6M and negative free cash flow of $93.8M, but holds $1.4B in cash and short-term investments.

Ondas Inc. opened a new facility in Ohio for unmanned aircraft training, testing, and operations, supporting its defense division, Ondas Sentinel. The site will train operators for long-endurance UAS and stratospheric platforms, with proximity to key Air Force bases. Ondas has been expanding its defense business through acquisitions and new orders, reporting $83.8M in Q2 revenue and a $757M backlog.

Ondas (ONDS) reported Q2 2026 revenue of $83.8M, up 85% YoY. Full-year guidance raised to $525M-$550M. Backlog at $757M. Q3 guidance $140M-$155M. Profitability expected by Q4 2026. Management highlighted growth from acquisitions and strong order momentum.

Ondas Holdings Inc. (ONDS) acquired Aran Defense for $33.9m to expand its autonomous defense systems manufacturing in Israel. Aran generated $17m revenue in 2025, with $26m projected for 2026. The deal strengthens Ondas' local production capabilities and supports its Digital Bat drone program.