Ondas Holdings Inc. shares declined 4.8% in pre-market trading after the company disclosed plans to acquire Aran Defense Ltd., the defense unit of Israel-based Aran Ltd., for approximately $33 million.
The transaction, valued at roughly 1.3 times Aran Defense’s projected 2026 revenue of $26 million, is expected to close in the third quarter of 2026. The purchase will be financed through a mix of cash and Ondas common stock, though the exact allocation was not specified.
The news follows Ondas’s Q2 2026 results, reported on August 13, which showed record revenue of $83.8 million. The company also raised its full-year revenue guidance to a range of $525–$550 million, up from prior estimates. However, adjusted loss per share of about $0.19 nearly doubled the analyst consensus, contributing to investor unease.
Institutional activity added to the pressure, as Millennium Management fully exited its position of approximately 5.6 million shares during the quarter. Short interest in Ondas remains elevated, estimated between 40% and 44% of the float.
Analysts at Ladenburg Thalmann maintained a Buy rating on Ondas but raised its price target to $22.75 from $21.50, citing the acquisition as a potential growth driver despite near-term profitability challenges.
Broader market conditions also weighed on sentiment, with the NASDAQ down 1.2% and the S&P 500 modestly lower on the day of the report.
