Ondas (ONDS) Stock Crashes 15% as Research Firm Sounds Alarm

TLDR

• Ondas Holdings (ONDS) stock crashed 15% on Wednesday after JCapital Research released a bearish report questioning the company’s business model
• JCapital criticized Ondas for pursuing expensive acquisitions funded by massive share dilution, raising $829 million in 2025 despite only $7.2 million in 2024 revenue
• The research firm noted Ondas CEO sold $4.6 million in shares on December 31, 2025, before announcing plans to raise another $1 billion in 2026
• The stock decline erased year-to-date gains that came from positive news including a UK acquisition and new defense contracts in Asia-Pacific
• Retail traders dismissed the report as manipulation, arguing JCapital aimed to create panic and enable short selling

Ondas Holdings saw its shares tumble 15% on Wednesday. The drop marked the stock’s worst day since November.

Ondas Holdings Inc., ONDS

JCapital Research released a report questioning the drone company’s path to profitability. The research firm warned investors that Ondas “won’t live up to the hype.”

The criticism focused on Ondas’ acquisition strategy and capital raising activities. JCapital accused the company of pursuing “high-priced, money-losing acquisitions funded by massive share dilution.”

The numbers paint a stark picture. Ondas generated just $7.2 million in net revenue during 2024.

Yet the company raised $829 million through share offerings in 2025. Ondas has already announced plans to offer 19 million shares to raise another $1 billion in 2026.

JCapital described this approach as “buying its way into military contracts for nosebleed prices.” The firm questioned whether this strategy could deliver returns to shareholders.

Governance Concerns Emerge

The research report highlighted a transaction by Ondas‘ CEO. He sold $4.6 million in shares on December 31, 2025.

JCapital characterized this timing as suspicious. The sale came before what the firm called a “tsunami of dilution.”

The research firm also took aim at management’s track record. JCapital described the leadership team as “promotional.”

The report claimed management has made unfulfilled revenue promises over the years. JCapital concluded that Ondas is “incinerating cash and value.”

Recent Catalysts Couldn’t Save the Stock

The timing of the report was particularly painful for Ondas investors. The stock had been climbing earlier in the week.

Shares jumped nearly 3% on Monday after Ondas announced an acquisition. The company entered a definitive agreement to acquire Rotron Aero, a UK-based developer of unmanned aerial systems.

On Tuesday, the stock gained another 7%. Ondas’ subsidiary Airobotics secured a strategic contract with a government defense customer in the Asia-Pacific region.

Wednesday morning brought more good news. Ondas’ Wasp drone was invited to compete in Phase I of the Drone Dominance Program by the U.S. Department of War.

But the JCapital report wiped out these gains. The stock ended Wednesday down 15%.

Through Tuesday’s close, Ondas shares had gained 17% in 2026. The Wednesday drop left the stock down nearly 1% for the year.

Retail Traders Push Back

Retail investors quickly rejected the JCapital report. On social platforms, traders accused the research firm of manipulation.

One Stocktwits user claimed JCapital released the report to drive retail panic. The user suggested this would enable short selling.

Retail traders argued the report offered no new insights. They dismissed the concerns as attempts to stir fear.

The Asia-Pacific contract Airobotics secured is expected to be executed over multiple phases. Initial deliveries are scheduled to begin this year.

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