Red Cat and Ondas Excluded from Pentagon Drone Program Round

Key Facts

Amid intensifying competition for defense technology contracts, publicly traded drone manufacturers are facing hurdles in securing major government mandates. According to reports, Red Cat and Ondas failed to secure spots in the top five of the Pentagon's Gauntlet II drone dominance round. The US Department of Defense's selection process for this initiative prioritized other private drone manufacturers over these publicly traded entities, marking a setback for their growth expectations within federal defense programs.

This exclusion highlights the competitive pressures within the unmanned aerial technology sector. Per market data, RCAT shares closed at $7.10, while ONDS shares recorded a close of $7.39 (close September 17, 2026). Analysts view the failure to qualify for this major defense contract round as a bearish catalyst for the sector, as the Pentagon's decision-making favored private competitors over the listed firms in this specific dominance round.

Monitoring current levels, RCAT stood at $7.10 following a daily low of $7.02, while ONDS traded between $7.30 and $7.53 (close September 17, 2026). With no immediate defense-specific catalysts in the upcoming economic calendar, investors will be watching for subsequent Department of Defense announcements that may clarify future procurement opportunities for the excluded firms.