Ondas Holdings (ONDS) Stock Tanks as Research Firm Questions $1 Billion Plan

TLDR

Table of Contents

Ondas Holdings (ONDS) shares dropped 15% Wednesday after JCapital Research questioned the company’s business strategy and financial health
The drone company raised $829 million in 2025 but generated only $7.2 million in revenue during 2024
JCapital highlighted the CEO’s $4.6 million share sale in December before plans to raise another $1 billion emerged
Ondas had surged earlier in the week on acquisition news and new defense contracts before the report erased gains
Retail investors called the report an attempt at market manipulation to enable short selling

Ondas Holdings experienced a brutal Wednesday session. Shares collapsed 15% after JCapital Research released a damaging report.

Ondas Holdings Inc., ONDS

The research firm questioned whether the drone company can deliver on its promises. JCapital warned the stock “won’t live up to the hype.”

The criticism centered on Ondas’ fundraising and spending habits. The company generated just $7.2 million in net revenue during 2024.

But Ondas raised $829 million through share offerings in 2025. The company plans to offer 19 million more shares to raise $1 billion in 2026.

JCapital called this “buying its way into military contracts for nosebleed prices.” The firm accused Ondas of pursuing expensive acquisitions funded by dilution.

Questions About Leadership

The research report raised concerns about executive actions. Ondas‘ CEO sold $4.6 million worth of shares on December 31, 2025.

JCapital found the timing suspicious. The sale happened before the company announced massive new fundraising plans.

The firm described management as “promotional.” JCapital claimed the team has made unfulfilled revenue promises repeatedly.

The report concluded Ondas is “incinerating cash and value” with its current approach.

Rally Gets Crushed

The timing couldn’t have been worse for Ondas investors. The stock had been climbing all week.

Monday brought news of a UK acquisition. Ondas announced plans to buy Rotron Aero, a developer of unmanned aerial systems.

Shares jumped 3% on the announcement. Tuesday delivered another 7% gain.

That rally came from Airobotics, Ondas’ subsidiary, securing a defense contract. The deal with an Asia-Pacific government customer sent shares higher.

Wednesday started strong too. Ondas’ Wasp drone received an invitation to compete in the U.S. Department of War’s Drone Dominance Program Phase I.

Then the JCapital report hit. All those gains evaporated in one session.

Through Tuesday, Ondas shares were up 17% for 2026. Wednesday’s crash left the stock down nearly 1% for the year.

Investor Pushback

Retail traders rejected the report’s conclusions. Social media lit up with accusations of manipulation.

Investors on Stocktwits called the report a tactic to create panic. They suggested JCapital aimed to help short sellers.

Traders argued the research offered nothing new. Many dismissed it as fear-mongering.

The Airobotics contract will be executed in multiple phases. Initial deliveries start this year for national security missions.

The Rotron Aero acquisition will expand Ondas’ capabilities. The deal adds long-range unmanned aerial vehicles and autonomous strike platforms to the portfolio.

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