TLDRs;
- Ondas shares climbed despite investor concerns over significant share dilution tied to its $876 million DZYNE acquisition.
- The company increased its 2026 revenue target to at least $525 million following the defense drone deal.
- Nearly 85 million new shares are being issued, though lock-up restrictions may limit immediate selling pressure.
- Analysts remain optimistic, but execution, integration, and future share supply remain key risks for investors.
Ondas Inc. (NASDAQ: ONDS) shares moved higher on Thursday as investors reacted positively to the company’s transformative acquisition of defense drone specialist DZYNE Technologies, even as the transaction significantly expands the company’s share count.
The stock gained roughly 3.6% during afternoon trading to around $7.79 after fluctuating between $7.49 and $7.82. Trading activity surged, with more than 51 million shares changing hands, highlighting elevated investor interest following one of the largest acquisitions in the company’s history.
While the transaction introduces substantial shareholder dilution, market participants appeared more focused on the long-term growth opportunities created by the deal and the company’s improved financial outlook.
Revenue Outlook Gets Major Boost
Earlier this week, Ondas completed its approximately $875.8 million acquisition of DZYNE Technologies, a company specializing in autonomous defense systems, intelligence, surveillance and reconnaissance (ISR) platforms, and counter-drone technologies.
The acquisition was structured using a combination of approximately $200 million in cash and roughly $675 million worth of Ondas stock, resulting in the issuance of nearly 85 million shares.
Following the acquisition, management significantly increased its 2026 revenue guidance. The company now expects revenue of at least $525 million, representing a substantial increase from its previous forecast of $390 million.
Much of that projected growth is expected to come from DZYNE, which Ondas estimates will contribute approximately $191 million in revenue during 2026 before surpassing $300 million the following year.
The upgraded outlook suggests management expects the acquisition to immediately strengthen the company’s position within the rapidly expanding defense drone market.
Dilution Remains Key Concern
Despite the positive growth projections, investors continue to monitor the impact of the new shares issued to complete the acquisition.Approximately 40 million shares were issued at closing, while another 45 million shares are scheduled to become available after lock-up restrictions expire in January 2027.
The market has been closely watching trading volume relative to the newly issued shares. Thursday’s trading volume exceeded the number of shares immediately issued in the transaction, reflecting unusually strong investor participation as the market assessed the implications of the acquisition.
However, the structure of the agreement includes safeguards designed to reduce the risk of rapid selling pressure. The locked-up shares cannot be freely traded until early 2027, and the agreement also imposes limits on the daily amount of stock that sellers may dispose of once restrictions begin to expire.
Defense Expansion Strategy
Company leadership believes the acquisition positions Ondas to capitalize on growing global demand for advanced military drone technologies.
Chief Executive Officer Eric Brock said the evolving nature of modern warfare is driving increased demand for autonomous defense systems. He noted that DZYNE strengthens Ondas’ capabilities across several mission-critical areas, including long-endurance ISR operations, counter-drone technologies, and autonomous mission platforms.
The acquisition also expands Ondas’ presence in one of the fastest-growing segments of the defense industry as governments continue increasing investments in unmanned aerial systems.
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