CEO Eric Brock's Share Sale Highlights Ongoing Risks at Ondas Holdings

What happened

Ondas Holdings CEO Eric Brock sold 475,000 shares at $9.71 each on December 31, 2025, reducing his stake amid a stock price that has surged approximately 976% over the past year. This sale comes as Ondas remains a chronically loss-making entity with 9M25 revenue of $20.6m still resulting in a $32.4m net loss and persistent negative free cash flow. The company's $3.2bn market cap is largely driven by sentiment around its MC-IoT and autonomous drone platforms, not supported by current economics. Brock's decision to sell a significant portion of his holdings at elevated prices may signal a lack of confidence in the near-term prospects, especially given the firm's history of dilution and complex capital structure. This insider action reinforces the DeepValue report's STRONG SELL judgment, which cites fragile moats and high execution risks.

Implication

Investors should view this sale as a red flag, indicating that even top executives may not believe the current stock price is sustainable given the company's financial weaknesses. Ondas has a track record of heavy losses, with an accumulated deficit of $268.7m by 9M25, and relies on external capital, leading to substantial dilution. The stock's 976% surge contrasts sharply with negative earnings and a DCF value of -$6.88 per share, highlighting a significant disconnect from fundamentals. Competition from established LTE/5G vendors and regulatory hurdles further threaten Ondas' ability to scale profitably. Consequently, this news reinforces the need for caution, suggesting that the STRONG SELL recommendation remains prudent until evidence of sustainable profitability and capital discipline emerges.

Thesis delta

The DeepValue report's STRONG SELL thesis is based on Ondas' weak fundamentals and high valuation. Eric Brock's share sale provides additional evidence of insider doubt, potentially exacerbating downside risks. While not a fundamental shift, it strengthens the case for avoiding the stock until management demonstrates greater confidence through actions rather than sales.