Ondas Holdings Inc. (NASDAQ: ONDS) is facing continued pressure in Friday's pre-market trading, with shares plunging 5.34% following a volatile session on Thursday. The extended decline comes despite the company reporting better-than-expected third-quarter results and raising its full-year 2025 revenue guidance.

On Thursday, Ondas shares initially surged by as much as 31.58% to $7.250 after the company announced impressive Q3 financials. Revenue for the quarter came in at $10.1 million, significantly beating analyst estimates of $7.039 million and representing a remarkable 582% year-over-year increase. The company also narrowed its net loss to $0.03 per diluted share, outperforming expectations of a $0.05 loss. Furthermore, Ondas raised its full-year 2025 revenue outlook from $25 million to at least $36 million.

However, despite the strong results and improved guidance, Ondas stock failed to maintain its gains and eventually closed down 5.49% on Thursday. The sharp reversal and subsequent pre-market plunge on Friday could be attributed to profit-taking by investors or broader market trends, as major U.S. stock indices were trading lower during Thursday's session. This volatility underscores the unpredictable nature of small-cap stocks, even in the face of positive fundamental news, and suggests that investors remain cautious about Ondas Holdings' near-term prospects.