Ondas Stock Rises on Drone Funding Reports Despite Weak Q1

Ondas Inc. shares jumped Thursday after reports that the U.S. government is considering funding domestic drone companies. Ondas was not named in those reports. The share gain came the same day the company disclosed wider first-quarter losses and requested shareholder approval to increase authorized common shares.

Ondas reported first-quarter sales rose about 11-fold year over year to just over $50 million, with much of that growth driven by acquisitions. The company completed six defense-technology acquisitions in 2026. Ondas recorded a first-quarter operating loss of $42.7 million. Management expects adjusted EBITDA losses to remain elevated in the second quarter and does not expect company-wide profitability until early 2028.

At its annual meeting, Ondas asked shareholders to raise authorized common shares from 800 million to 1.2 billion, a change that would allow for additional share issuance. The company is targeting $390 million in full-year revenue and reported a $457 million pro forma backlog it intends to convert into recognized sales. Those targets depend on integrating recent acquisitions and converting backlog into revenue at the projected pace.

Traders bid up Ondas shares on the sector news despite no direct link between the company and any government award. The stock traded roughly 10% below its year-to-date high after the rally. Technical indicators show the relative strength index in the high 60s. Ondas traded under $1.00 as recently as a year ago. Over the past six years, the company’s shares have tended to decline in June.

Investors will monitor integration of the acquisitions, the company’s path to reduce adjusted EBITDA losses, and the conversion of backlog to recognized revenue as Ondas works toward its revenue and profitability timelines.