TLDR
- Ondas Holdings (ONDS) stock plummeted 15% Wednesday following a bearish JCapital Research report criticizing the company’s financial strategy
- The drone maker raised $829 million in 2025 while posting just $7.2 million in 2024 revenue, with plans for another $1 billion raise
- JCapital flagged the CEO’s $4.6 million share sale on December 31 before announcing new fundraising plans
- Earlier gains from a UK acquisition announcement and Asia-Pacific defense contract were completely erased
- Retail traders rejected the report as fear tactics designed to enable short selling activity
Ondas Holdings faced a brutal sell-off Wednesday. The stock dropped 15% in its worst session since November.
JCapital Research triggered the decline with a critical report. The firm questioned the drone company’s ability to deliver results.
The research focused on Ondas’ spending and fundraising patterns. Last year, the company raised $829 million through share offerings.
Yet Ondas only generated $7.2 million in net revenue during 2024. That massive gap raised red flags for JCapital.
The firm now plans to raise another $1 billion in 2026. Ondas intends to offer 19 million shares to reach that target.
JCapital accused the company of pursuing expensive acquisitions without clear profitability. The firm called it “buying its way into military contracts for nosebleed prices.”
CEO Stock Sale Draws Attention
The research report highlighted executive transactions. Ondas‘ CEO sold $4.6 million in shares on December 31, 2025.
JCapital questioned the timing of that sale. It came just before the company unveiled billion-dollar fundraising plans.
The firm labeled management as “promotional” in its report. JCapital claimed executives have repeatedly made promises they failed to keep.
The research concluded Ondas is “incinerating cash and value” through its current business model.
Good News Turns Bad
Wednesday started on a positive note. Ondas‘ Wasp drone received an invitation to compete in the U.S. Department of War’s Drone Dominance Program.
The stock had rallied Monday on acquisition news. Ondas announced plans to purchase Rotron Aero, a UK-based drone developer.
That announcement pushed shares up 3%. Tuesday brought another 7% gain.
Airobotics, an Ondas subsidiary, secured a government defense contract. The deal with an Asia-Pacific customer fueled Tuesday’s rally.
The JCapital report wiped out all those advances. One session erased an entire week of progress.
Ondas shares had climbed 17% through Tuesday’s close in 2026. The Wednesday crash left the stock down nearly 1% year-to-date.
Traders Reject the Narrative
Retail investors fought back against the report. Social media platforms filled with accusations of market manipulation.
Stocktwits users called the research a deliberate attempt to create panic. Many suggested JCapital aimed to help short sellers profit.
Investors argued the report contained no new information. They dismissed it as a tactic to drive down prices.
The Asia-Pacific defense contract will roll out in multiple phases. Initial deliveries are scheduled to begin in 2026.
The Rotron Aero acquisition will add long-range unmanned aerial vehicles to Ondas’ product lineup. The deal also brings autonomous strike platforms and UK market access.
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