Palladyne AI Reports Fourth Quarter and Full Year 2025 Results and Reiterates 2026 Revenue Guidance of $24 to $27 Million
Palladyne AI Corp. (NASDAQ: PDYN and PDYNW) (“Palladyne AI”), a U.S.-based defense and industrial technology company delivering embodied AI-powered collaborative autonomy solutions, advanced avion...
2026 revenue guidance implies 357% to 415% year-over-year growth, with backlog increasing more than 30% since year-end to nearly $18 million midway through the first quarter
2025 culminated in structural repositioning following November acquisitions
Launch of Palladyne Defense and commercialization of Palladyne IQ 2.0 position Company for execution in 2026
SALT LAKE CITY: Palladyne AI Corp. (NASDAQ: PDYN and PDYNW) (“Palladyne AI”), a U.S.-based defense and industrial technology company delivering embodied AI-powered collaborative autonomy solutions, advanced avionics, precision-manufactured components, UAVs, and advanced aerospace engineering services, today announced financial results for the fourth quarter and full year ended December 31, 2025.
Ben Wolff, President and Chief Executive Officer of Palladyne AI, commented:
“2025 was a year of operational validation that culminated in structural transformation. In November, we completed the acquisitions of GuideTech, Warnke Precision Machining and MKR Fabricators and launched Palladyne Defense. That repositioning expanded our capabilities beyond autonomy software to include advanced avionics, engineering services, proprietary airframe and missile development and certified U.S.-based manufacturing. We exited 2025 as a fundamentally different company, with expanded backlog, deeper defense engagement and an integrated autonomy-to-manufacturing stack aligned with evolving Department of War priorities.
“Over the past few months, we have moved decisively to execute across the defense and commercial parts of our business. We commercially released Palladyne IQ 2.0, integrating feedback from potential customers into its development, and recently signed our first customer for the product. We also introduced IntelliSwarm, integrating SwarmOS into the BRAIN X2 flight module, and demonstrated collaborative autonomy between our recently branded Gremlin-X™ (formerly Project Banshee) platform running IntelliSwarm and multiple Red Cat platforms operating with SwarmOS, validating distributed, multi-platform collaboration in real-world environments.
“We also established our presence in the space domain. Through our satellite-related development work with the Air Force Research Laboratory, we are extending SwarmOS capabilities to integrate communications with space-based systems. Separately, our engagement with Portal Space Systems advances propulsion design for next-generation space platforms and establishes a foundation for potential future collaboration surrounding collaborative autonomy.”
Recent Strategic and Operational Highlights
- Launched Palladyne Defense following the acquisitions of GuideTech, Warnke Precision Machining and MKR Fabricators, integrating autonomy software, advanced avionics engineering and design, components, proprietary UAVs and missile systems, and certified U.S.-based manufacturing;
- Commercially released Palladyne IQ 2.0 and signed an initial customer following customer-driven refinement throughout 2025;
- Hired Matt Muta as President of Commercial and Industrial to focus on capturing commercial opportunities;
- Branded Project Banshee (next-generation autonomous UAV mini-bomber platform currently under development) as Gremlin-X;
- Demonstrated collaborative autonomous swarming between the Gremlin-X platform utilizing IntelliSwarm, and multiple Red Cat platforms operating with SwarmOS;
- Expanded into the space domain through satellite-related development work with the Air Force Research Laboratory and propulsion design engagement with Portal Space Systems;
- Progressed development milestones across Gremlin-X and new BRAIN variants;
- Secured missile propulsion subsystem contract from a new defense prime customer; and
- Strengthened intellectual property portfolio through a new patent issuance supporting advanced swarming and decentralized autonomy architectures and filed four new patent applications related to Palladyne’s AI software products and technologies.
Fourth Quarter 2025 Financial Highlights (vs. fourth quarter 2024)
- Revenue increased 118% to $1.7 million compared to $0.8 million;
- Operating loss of ($9.3) million compared to ($6.5) million;
- GAAP net loss and basic and diluted loss per share (EPS) of ($1.5) million, and ($0.04), compared to ($53.0) million, and ($1.75);
- *Non-GAAP net loss and Non-GAAP EPS of ($6.9) million, and ($0.16), compared to ($5.2) million, and ($0.17);
- Cash, cash equivalents and marketable securities totaled $47.0 million at December 31, 2025;
- Backlog as of December 31, 2025, was $13.5 million.
Full Year 2025 Financial Highlights (vs. full year 2024)
- Revenue decreased 33% to $5.2 million compared to $7.8 million;
- Operating loss of ($32.4) million compared to ($26.9) million;
- GAAP net income and diluted EPS of $10.0 million, and $0.24, compared to a net loss of ($72.6) million, and ($2.71);
- *Non-GAAP net loss and Non-GAAP EPS of ($25.2) million, and ($0.60), compared to ($22.6) million, and ($0.84).
*see GAAP to Non-GAAP reconciliation at the end of this press release
2026 Outlook
The Company reiterates its previously announced full year 2026 revenue guidance of $24 million to $27 million, representing expected year-over-year growth of approximately 357% to 415% compared to 2025 revenue of $5.2 million. Supporting this guidance, Palladyne AI had a contracted 12-18 month backlog of nearly $18.0 million as of mid-February 2026, a more than 30% increase since December 31, 2025.
The guidance reflects revenue contributions from acquired entities, backlog conversion and monetization of development programs secured during and following the Company’s fourth quarter repositioning. Management believes recent contract wins and expanding program activity across air and space domains provide increased visibility into achieving these targets.
The Company continues to advance product maturation milestones and pursue early customer wins across Palladyne IQ 2.0, SwarmOS and BRAIN platforms while maintaining a disciplined focus on execution.
Conference Call
Palladyne AI will host a conference call today, Thursday, March 5, 2026, at 8:00 a.m. Eastern Time to discuss its financial and operational results, strategy and future opportunities.
Dial-in and Webcast Information | ||
Date/Time: | Thursday, March 5, 2026, at 8:00 a.m. Eastern Time | |
Toll-Free (North America): | 1-877-407-0789 | |
Toll/International: | 1-201-689-8562 | |
Conference Call ID: | 13758938 | |
Webcast Link: |
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| https://viavid.webcasts.com/starthere.jsp?ei=1753897&tp_key=50d08a7821 | ||
| Call me™: Participants can use the Guest dial-in #s above and be answered by an operator, or click the Call me™ link for instant telephone access to the event. Call me™ link will be made active 15 minutes prior to the scheduled start time. https://callme.viavid.com/viavid/?callme=true&passcode=13757186&h=true&info=company&r=true&B=6 | ||
| Replay Information | ||
Toll-Free (North America) | 1-844-512-2921 | |
Toll/International: | 1-412-317-6671 | |
Conference Call ID: | 13758938 | |
Expiration: | Thursday, March 19, 2026, 11:59 p.m. Central Time | |
About Palladyne AI
Palladyne AI is a U.S.-based technology company developing patented embodied artificial intelligence, collaborative autonomy solutions, advanced avionics, autonomous systems, advanced UAV engineering services, and precision-manufactured components for defense and industrial markets. Palladyne AI delivers secure, American-developed and operated platforms designed to meet the stringent requirements of U.S. government and public-sector customers, including data sovereignty, security, and compliance.
Palladyne AI’s embodied AI is designed to operate in complex, contested, and high-risk environments, enabling distributed tasking, human-on-the-loop decision-making, degraded-communications resilience, and multi-domain coordination. Its platform-agnostic autonomy stack combines real-time sensor fusion, adaptive AI models, and edge-native orchestration - without vendor lock-in - to support autonomous and collaborative systems across air, ground, maritime, and industrial domains where performance, resilience, and trust are paramount. For more information about Palladyne AI, including GuideTech and Palladyne Defense, please visit www.palladyneai.com/.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the capabilities or future capabilities of Palladyne AI’s technology and related products, including IntelliSwarm; anticipated growth, operating scale and operating inflection of the Company; the applicability of Palladyne AI’s products and technology to the space domain; 2026 expected financial performance, including expected revenue and sources of revenue; the time of customer acquisition, revenue recognition and backlog realization; the benefits of its AI software and other products and the markets for its products and services; and the applicability of IntelliSwarm and its autonomy software to different kinds of machines (such as UAVs, UGVs and ROVs); future development and qualification plans; and intended future target customers. Forward-looking statements are inherently subject to risks, uncertainties, and assumptions. Generally, statements that are not historical facts, including statements concerning possible or assumed future actions, business strategies, events, or results of operations, are forward-looking statements. These statements may be preceded by, followed by, or include the words “believes,” “estimates,” “expects,” “projects,” “forecasts,” “may,” “will,” “should,” “seeks,” “plans,” “scheduled,” “anticipates,” “intends” or “continue” or similar expressions. Such forward-looking statements involve risks and uncertainties that may cause actual events, results, or performance to differ materially from those indicated by such statements. These forward-looking statements are based on Palladyne AI’s management’s current expectations and beliefs, as well as a number of assumptions concerning future events. However, there can be no assurance that the events, results, or trends identified in these forward-looking statements will occur or be achieved. Forward-looking statements speak only as of the date they are made, and Palladyne AI is not under any obligation and expressly disclaims any obligation to update, alter or otherwise revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.
Readers should carefully review the statements set forth in the reports which Palladyne AI has filed or will file from time to time with the Securities and Exchange Commission (the “SEC”), in particular the risks and uncertainties set forth in the sections of those reports entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements,” for a description of risks facing Palladyne AI and that could cause actual events, results or performance to differ from those indicated in the forward-looking statements contained herein. The documents filed by Palladyne AI with the SEC may be obtained free of charge at the SEC’s website at www.sec.gov.
PALLADYNE AI CORP. CONSOLIDATED BALANCE SHEETS (unaudited) (in thousands, except share data) | ||||||||
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| As of |
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| December 31, 2025 |
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| December 31, 2024 |
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Assets |
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Current assets: |
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Cash and cash equivalents |
| $ | 18,219 |
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| $ | 31,188 |
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Marketable securities |
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| 28,836 |
|
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| 8,883 |
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Accounts receivable, net of allowance for credit losses of $0.0 million and $0.3 million at December 31, 2025 and 2024, respectively |
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| 1,055 |
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| 134 |
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Unbilled receivables |
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| 2,455 |
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| 1,179 |
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Inventories |
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| 339 |
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| 71 |
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Prepaid expenses and other current assets |
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| 1,653 |
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| 1,275 |
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Total current assets |
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| 52,557 |
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| 42,730 |
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Property and equipment, net |
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| 8,889 |
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| 4,244 |
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Intangible assets, net |
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| 10,430 |
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| - |
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Goodwill |
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| 14,731 |
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| - |
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Operating lease assets |
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| 8,645 |
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| 8,841 |
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Other non-current assets |
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| 460 |
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| 438 |
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Total assets |
| $ | 95,712 |
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| $ | 56,253 |
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Liabilities and stockholders’ equity (deficit) |
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Current liabilities: |
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Accounts payable |
| $ | 1,058 |
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| $ | 435 |
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Accrued liabilities |
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| 3,550 |
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| 2,919 |
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Current operating lease liabilities |
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| 1,058 |
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| 1,079 |
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Total current liabilities |
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| 5,666 |
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| 4,433 |
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Warrant liabilities |
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| 2,772 |
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| 51,396 |
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Operating lease liabilities |
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| 9,725 |
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| 9,957 |
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Other non-current liabilities |
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| 2,874 |
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| - |
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Total liabilities |
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| 21,037 |
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| 65,786 |
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Commitments and contingencies |
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Stockholders’ equity (deficit): |
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Common stock, $0.0001 par value, 165,000,000 shares authorized as of December 31, 2025 and December 31, 2024; 46,117,164 and 33,883,894 shares issued and outstanding as of December 31, 2025 and December 31, 2024, respectively |
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| 5 |
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| 3 |
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Additional paid-in capital |
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| 555,451 |
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| 481,289 |
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Accumulated other comprehensive income |
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| 11 |
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| 6 |
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Accumulated deficit |
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| (480,792 | ) |
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| (490,831 | ) |
Total stockholders’ equity (deficit) |
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| 74,675 |
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| (9,533 | ) |
Total liabilities and stockholders’ equity (deficit) |
| $ | 95,712 |
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| $ | 56,253 |
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PALLADYNE AI CORP. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in thousands, except share and per share data) | ||||||||||||||||
Three Months Ended December 31, |
| Year Ended December 31, |
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| | 2025 |
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| 2024 |
| | 2025 |
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| 2024 |
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Revenue, net | | $ | 1,661 |
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| $ | 761 |
| | $ | 5,246 |
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| $ | 7,786 |
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Operating expenses: | |
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Cost of revenue (exclusive of items shown separately below) |
| 1,402 |
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