Ondas Tops US Fails-to-Deliver List Amid High Short Interest Debate
Ondas leads national delivery failures
Ondas, a defense drone company, recorded the highest number of failed share deliveries in the United States during the second half of August. This occurred while the stock faced intense scrutiny from both short-sellers and bullish investors.
A "failure to deliver" happens when a party responsible for providing shares to complete a trade does not do so. While often linked to debates about market manipulation, regulators note that harmless reasons are frequently the cause.
Record delivery numbers and short interest
- On the Monday following the company's latest quarterly earnings, 20,954,097 shares of ONDS remained undelivered in the National Securities Clearing Corporation's system.
- No other stock in America had more failed deliveries on that specific day.
- Short interest in Ondas stands at 40.9% of its float, a significant increase from roughly 4% a year ago.
- The stock was classified as a "Threshold Security" by Nasdaq from August 18 through August 27 due to sustained delivery failures.
Company performance versus stock price
Despite the market tension, Ondas reported $83.8 million in revenue for the second quarter. This figure is more than 13 times higher than its revenue in the same period of 2025. The company has also raised its full-year revenue target to over $525 million, citing numerous government contracts.
However, the stock price has not reflected this growth recently. Shares have lost 22% of their value since the start of 2026. Over the past 12 months, after a previous rally that saw the stock rise tenfold from penny stock levels, the price has remained flat.
Regulatory context on delivery failures
The Securities and Exchange Commission (SEC) publishes data on failures to deliver twice a month. The agency cautions that these failures are not necessarily the result of short selling and do not automatically prove abusive or "naked" short selling practices.
Bullish investors claim the company is on a "generational run," while short-sellers continue to bet against it. The divergence between the company's financial reports and its stock performance remains a central point of contention.
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