ONDS Stock Slips After-Hours: Retail Shrugs Off Palantir AI Boost As 1.2B Share Plan Sparks Dilution Fears

• Ondas plans to increase its authorized share capital from 800 million to 1.2 billion to fund acquisitions and scale its autonomous systems platform.
• Over 50% of shares are already issued, with 25% reserved for warrants at $20 and $28, limiting flexibility.
• Ondas flagged a pipeline of over 25 acquisition targets with a potential $500 million revenue run rate this year.

Shares of Ondas Holdings (ONDS) slipped 1% in extended trading on Monday as investors focused on dilution risks from a proposed 1.2 billion share authorization, overshadowing fresh momentum from its expanding AI partnership with Palantir Technologies.

ONDS stock declined 6% on Monday to end at $9.73. 

Dilution Fears Rise On 1.2B Share Plan

The move follows a shareholder letter in which Ondas sought approval to increase its authorized shares from 800 million to 1.2 billion, calling the proposal “critical” to execute its growth strategy based on acquisitions, platform expansion and scaling its autonomous systems business.

The company said that more than 50% of its shares are already issued and outstanding, while nearly 25% of authorized shares are reserved for warrants with strike prices of $20 and $28, limiting flexibility to pursue additional opportunities. Ondas highlighted an active acquisition pipeline of over 25 opportunities with a combined potential run rate of about $500 million in revenue this year.

The drone company noted that it has already completed five acquisitions this year worth $557 million, which are expected to contribute $230 million in revenue.

“We want to be clear: we are committed to using our authorized shares responsibly and with a focus on long-term value creation. Our strategy is centered on highly accretive investments that strengthen our platform, expand our market position, and support growth in stockholder value over time,” CEO Eric Brock said in the letter. 

Palantir AI Push Gains Ground

The decline in ONDS shares comes even as Ondas deepens its AI strategy through its partnership with Palantir. On its latest earnings call, Palantir said Ondas, alongside World View, is expanding use of its AI platform to drive operations in the stratosphere and build scalable mission infrastructure. “Palantir-powered workflows don't just make one launch faster; they make dozens or 100 simultaneous launches possible with the same operational efficiency,” the company said.

The comments build on a March partnership deal in which Ondas said it would integrate Palantir’s Foundry platform to unify data and provide real-time data across production, supply chain, and customer operations for its Optimus and Iron Drone platforms. The broader agreement between Palantir and World View focuses on building a multi-domain stack spanning aerial, ground, and stratospheric systems, enabling surveillance and reconnaissance capabilities through AI-driven decision-making.

ONDS Defense Orders Add Momentum

Ondas has also been expanding its defense footprint alongside its AI push. The company recently completed a $175 million merger with Mistral, boosting its access to U.S. Army and special operations programs and lifting its pro forma backlog to $457 million as of March 31.

Mistral also showcased its battlefield-ready drone systems at Modern Day Marine 2026 and recently secured a contract to deliver THOR tactical drone systems to the U.S. Army for reconnaissance, surveillance, communications, and cargo missions.

How Do Retail Traders Feel About ONDS?

On Stocktwits, retail sentiment for ONDS has been ‘bearish’ since a month amid over a 400% surge in 24-hour message volumes.

One bullish user noted Ondas’ mention on Palantir’s earnings call and said, “This is a big deal. Palantir doesn’t highlight companies unless they’re strategically important.”

Another user said, “given the horrid performance of our stock since early January, it's beyond me why shareholders would vote for anything proposed by our CEO.”

While ONDS stock has rocketed more than 1,000% over the past year, it has slipped 0.3% since January.  

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