Ondas Capital, the investment arm of Ondas Holdings Inc., announced a commitment of up to $11 million to acquire a stake in Drone Fight Group (DFG), a Ukrainian developer of advanced unmanned aerial systems. The investment will fund the localization of DFG’s technology in a U.S.‑based, NDAA‑compliant manufacturing facility and provide integrated customer support, training, and sustainment services for U.S. and allied defense customers.
The move underscores Ondas’ strategy of sourcing battle‑tested Ukrainian defense technology to accelerate product development and market entry. Ukraine has become a proving ground for modern unmanned systems, and the NDAA‑compliant facility will allow the company to secure U.S. defense contracts that require domestic production and compliance with national security regulations. By bringing DFG’s strike‑optimized FPV drones, ISR platforms, and autonomous mission technologies into its portfolio, Ondas aims to broaden its autonomous systems offering and strengthen its position in the growing U.S. defense drone market.
Ondas’ recent financial performance provides a solid backdrop for the investment. The company reported a 6‑fold year‑over‑year revenue jump to $10.1 million in Q3 2025, with a 26% gross margin, and a 555% year‑over‑year increase to $6.27 million in Q2 2025, supported by a 52.7% gross margin. The firm’s balance sheet remains strong, with more cash than debt and a current ratio of 15.3, giving it the liquidity to pursue strategic acquisitions and investments such as the $80 million purchase of Roboteam and a $35 million investment in Performance Drone Works.
Eric Brock, Chairman and CEO of Ondas, said, “Ukraine has become the proving ground for modern unmanned systems, driving unprecedented innovation under real operational pressures. Our planned investment in Drone Fight Group represents a deliberate step to bring this combat‑proven innovation into the United States and allied industrial base. Through Ondas Capital, we are building a bridge that accelerates access to high‑impact autonomous capabilities that meet urgent mission needs.”
The investment fits into a broader portfolio of initiatives aimed at expanding Ondas’ autonomous systems and defense capabilities. In addition to the DFG stake, the company has secured a government contract for an autonomous border protection system and an $8.2 million order for counter‑drone systems at a European airport. While the company’s revenue growth is robust, it continues to face profitability challenges, with negative operating and net margins in some periods. The DFG investment is expected to enhance revenue diversification and provide a new source of high‑margin defense contracts, potentially improving the company’s profitability profile over the medium term.
Overall, the $11 million commitment signals Ondas’ confidence in the commercial viability of Ukrainian drone technology and its readiness to meet U.S. defense procurement requirements. By localizing production and ensuring NDAA compliance, the company positions itself to capture a share of the expanding U.S. and allied drone market while leveraging its strong balance sheet to fund future growth initiatives.
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