Ondas (ONDS) has officially completed its acquisition of Omnisys, an Israel-based developer of AI battlefield decision-making software. The deal involved an all-stock transaction valued at approximately $196.6 million. Through this transaction, the company is expected to add $100 million to its revenue across 2026 and 2027.
The acquisition adds a high-margin software business to the company’s defense portfolio. Omnisys software is now integrated into Ondas’ broader defense portfolio, helping improve coordination between autonomous systems and defense assets.
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The company has now made a string of acquisitions spanning counter-drone systems, stratospheric balloons, and loitering munitions, among others. It intends to become a fully integrated autonomous defense platform rather than just a drone maker. What makes the strategy special is that these target companies already have existing contracts or revenues, making them strategic investments rather than just speculative bets. Ondas' flagship Iron Drone Raider system, for example, actually came from Airobotics, which the firm acquired in 2023.
Some may argue that the Ondas' negative operating cash flow doesn’t allow it to pursue a mergers and acquisitions (M&A) strategy. However, the quarterly burn rate of around $10 million on average is well-covered by Ondas' more than $1 billion in cash. Moreover, operating margins are consistently improving, which means the company is using external tailwinds optimally to continue growing.
About Ondas Stock
Based in West Palm Beach, Florida, Ondas provides autonomous systems and private wireless solutions through its business units. The company operates through two segments: Ondas Networks and Ondas Autonomous Systems. Its Ondas Autonomous Systems division delivers AI-powered defense and security platforms, while Ondas Networks offers software-defined wireless broadband technology.
ONDS stock had a great run last year on the back of the drone industry’s growth prospects. Things haven’t gone as well so far this year, with the stock down 7% year-to-date (YTD). In comparison, the iShares US Aerospace & Defense ETF (ITA) has gained 5% YTD.
www.barchart.com Ondas' Latest Earnings
Ondas reported its first-quarter fiscal 2026 earnings on May 14. A non-cash gain of $389.5 million related to warrants mainly supported the quarterly results. As a result, net income came in at $362.9 million. Adjusted EBITDA posted a loss of $10.9 million, compared with $7.5 million in the same period last year. At the end of the quarter, the company had $1.48 billion in cash, cash equivalents, restricted cash, and short-term investments.
Ondas raised its fiscal 2026 revenue outlook to at least $390 million, up from its previous guidance of $375 million. Product company profitability is expected to be sustained through 2026 and beyond, although quarterly results may vary depending on investment priorities and product mix.
The company is now projected to achieve EBITDA profitability in Q1 2027, roughly six months earlier than previously expected.
What Are Analysts Saying About Ondas Stock?
Following the results, a few analysts reaffirmed their “Buy” ratings on ONDS stock, highlighting bullish sentiment. However, analysts have different views when it comes to their price targets. Needham analyst Austin Bohlig maintained a target of $23. Meanwhile, Stifel Nicolaus and Northland Securities both kept their price targets at $18.
ONDS stock is currently covered by nine Wall Street analysts tracked by Barchart and carries a consensus “Strong Buy” rating. The mean price target of $20.12 implies more than 120% potential upside from current levels.
www.barchart.com On the date of publication, Jabran Kundi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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