Ben Wolff, President and Chief Executive Officer of Palladyne AI, commented:<\/b><\/p>\n
\n\u201c2025 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.<\/p>\n
\n\u201cOver 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\u2122 (formerly Project Banshee) platform running IntelliSwarm and multiple Red Cat platforms operating with SwarmOS, validating distributed, multi-platform collaboration in real-world environments.<\/p>\n
\n\u201cWe 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.\u201d<\/p>\n
Recent Strategic and Operational Highlights<\/span><\/b><\/p>\n Fourth Quarter 2025 Financial Highlights (vs. fourth quarter 2024)<\/span><\/b><\/p>\n Full Year 2025 Financial Highlights (vs. full year 2024)<\/span><\/b><\/p>\n *see GAAP to Non-GAAP reconciliation at the end of this press release<\/i><\/p>\n 2026 Outlook<\/span><\/b><\/p>\n \nThe 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.<\/p>\n \nThe guidance reflects revenue contributions from acquired entities, backlog conversion and monetization of development programs secured during and following the Company\u2019s fourth quarter repositioning. Management believes recent contract wins and expanding program activity across air and space domains provide increased visibility into achieving these targets.<\/p>\n \nThe 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.<\/p>\n Conference Call<\/span><\/b><\/p>\n \nPalladyne AI will host a conference call today, Thursday, March 5, 2026, at 8:00 a.m. Eastern Time <\/b>to discuss its financial and operational results, strategy and future opportunities.<\/p>\n\n
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