Ondas Holdings Inc. (NASDAQ: ONDS) shares fell 1.07% to $8.77 on Thursday, retreating from an intraday high above $9.10, following news that its recently acquired DZYNE Technologies unit secured a defense contract worth more than $6 million from the Air Force Research Laboratory (AFRL) to advance an autonomous aerial logistics system.

AFRL Contract Supports Long-Range Grasshopper Program

AFRL awarded the contract to support the Long-Range Grasshopper development program, an autonomous, runway-independent aerial delivery system designed for long-distance logistics missions in remote, contested, and infrastructure-limited operating areas. The award aligns with a broader Department of Defense push to modernize contested logistics, as the Pentagon increasingly prioritizes autonomous resupply platforms capable of operating in environments where traditional cargo aircraft and ground convoys face heightened threats.

DZYNE will carry out the contract work through Ondas Sentinel, the company's dedicated United States defense division, which Ondas established after completing its acquisition of DZYNE Technologies. The acquisition expanded Ondas' capabilities into autonomous logistics, precision strike, surveillance, and counter-drone systems.

The award builds on several years of development collaboration between AFRL and DZYNE's engineering teams. Previous flight tests evaluated autonomous deployment, jet-engine activation, long-range navigation, and precise payload delivery. The new funding is intended to advance the platform toward broader military deployment.

Platform Designed for Agile Combat Employment

The Long-Range Grasshopper supports the Air Force's Agile Combat Employment strategy, which requires distributed forces to operate from smaller locations with limited support infrastructure. Autonomous delivery systems can resupply those forces without exposing large crewed aircraft to threats. The concept has gained urgency as the military refines plans for operations across the Indo-Pacific and other regions where vast distances and dispersed basing complicate traditional supply chains.

The contract will fund extended flight range, longer endurance, and modular payload integration. Development efforts will also focus on improving autonomous navigation in environments where GPS signals are weak, blocked, or unavailable. Engineers will work to strengthen system reliability and simplify production for larger-scale deployment.

The platform builds on DZYNE's existing Grasshopper glider design, which can deliver payloads of up to 500 pounds into difficult operating areas. That established architecture provides Ondas with a tested foundation for the jet-powered long-range variant.

Ondas Expands Autonomous Defense Portfolio

Ondas acquired DZYNE to strengthen its position in autonomous defense technology. The acquisition added systems spanning intelligence, surveillance, reconnaissance, aerial security, and autonomous mission support, while also broadening the company's access to U.S. defense programs and customers.

Ondas Sentinel now integrates DZYNE's platforms with Ondas' existing defense technologies, focusing on autonomous systems for air operations, logistics, security, and threat response. The Long-Range Grasshopper joins LEAP, ULTRA, and several counter-unmanned aircraft systems within the company's portfolio.

AFRL's contract provides Ondas with additional funding to advance low-cost, scalable aerial logistics capabilities. At more than $6 million, the award represents an early-stage development investment rather than a full-scale procurement commitment, reflecting the program's continued prototyping phase. Despite the contract announcement, Ondas shares recorded a slight decline during Thursday's trading session.