Ondas Holdings Inc. (NASDAQ: ONDS) saw its stock drop 14.7% on Wednesday. The sharp decline followed a critical report from JCapital Research, which questioned the company’s business model and financial health.
In its “Equity Dispatch” report, JCapital warned that Ondas “won’t live up to the hype.” The firm expressed doubts about the drone company’s revenue growth strategy. It criticized Ondas for relying on “high-priced, money-losing acquisitions” funded by heavy share dilution.
The report highlighted troubling financial trends. While Ondas generated just $7.2 million in net revenue in 2024, it raised $829 million through share offerings in 2025. This year, the company has already issued 19 million shares to raise another $1 billion. JCapital argued that this approach shows a lack of a clear path to profitability.
The research firm also raised governance concerns. It noted that Ondas’ CEO sold $4.6 million in shares on December 31, 2025. This sale came just before what JCapital described as a “tsunami of dilution.”
JCapital was highly critical of Ondas’ management team. It labeled them as “promotional” and accused them of making unfulfilled revenue promises over the years. The report concluded that Ondas is “incinerating cash and value” with its current practices.
The stock’s steep decline reflects growing investor unease. Concerns are mounting over the sustainability of Ondas’ growth strategy and its ability to deliver returns amid significant dilution.
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