Ondas Eyes 35% Revenue Upside In FY26 After DZYNE Technologies Acquisition – A Look At Why The Deal Matters

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Ondas acquired DZYNE Technologies via a combination of cash and stock for $875.8 million.

  • Following the acquisition, Ondas raised its revenue outlook to $525 million, compared to the previous forecast of $390 million.
  • DZYNE shareholders will own about 13.8% of Ondas’ outstanding shares after the completion of the transaction.
  • This marks Ondas’ second major acquisition this year, following the buyout of Mistral in March.

Shares of Ondas (ONDS) were in the spotlight on Monday after the defense firm raised its fiscal 2026 revenue guidance following the acquisition of autonomous aerial systems developer DZYNE Technologies.

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ONDS stock was up around 1.4% at the time of writing.

ONDS To Pay Via Cash And Stock

Ondas paid a total consideration of $875.8 million, funding the transaction with a combination of $200 million in cash and approximately 85 million shares valued at $675 million. DZYNE shareholders will own about 13.8% of Ondas’ outstanding shares.

“We structured this transaction to take the majority of our consideration in Ondas equity because we believe in the long-term value of the combined platform,” said Jeff Hull, President and Chief Executive Officer of Highlander Partners, the majority owner of DZYNE. 

ONDS Expects FY2026 Revenue Of $525M

Following the acquisition, Ondas raised its 2026 revenue outlook to at least $525 million, up from its previous forecast of at least $390 million. DZYNE is expected to contribute $191 million in revenue in 2026 and more than $300 million in 2027, while maintaining positive earnings before interest, tax, depreciation, and amortization (EBITDA). DZYNE expects margins in the mid-teens in 2027, rising to the mid-20% range by 2028.

The target firm expects strong growth driven by demand for its ultra-long-endurance intelligence, surveillance, and reconnaissance (ISR) platform, IonStrike interceptor system, and Dronebuster counter-drone products.

ONDS’ Federal Contracts Push

Earlier this year, Ondas acquired Mistral, a prime contractor for U.S. military and government programs, giving the company direct access to major U.S. Department of Defense contracts, including programs with the U.S. Army and Special Operations forces.

Mistral holds more than $1 billion in defense contracts spanning weapon systems, drones, and unmanned platforms, and also supplies equipment and security solutions to federal, state, and local law enforcement agencies.

What Is Retail’s Take On ONDS?

Retail sentiment on Stocktwits remained ‘bullish’ over the past 24 hours, amid ‘high’ message volumes. ONDS was also among the top trending tickers at the time of writing.

Following the acquisition, one bullish user highlighted “two windows of business opportunity into the federal government.”

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ONDS shares have declined 33.4% so far this year.

Also read – SK Hynix’s Offering Attracts $7B Interest From Investment Firms – This Investor Believes Demand Will ‘Remain Relatively Robust’

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