Ben Wolff, President and Chief Executive Officer of Palladyne AI, commented:<\/b><\/p>\n
\n\u201cQ1 was our first full quarter as a vertically integrated defense and industrial AI company. Revenue increased 107% year-over-year to $3.5 million, and the quarter saw broad-based activity across defense programs, commercial deployment and intellectual property development. That activity is reflected in our backlog, which grew to approximately $17 million as of March 31, and we remain on track to achieve our 2026 revenue guidance of $24 million to $27 million.<\/p>\n
\n\u201cThe Department of War is committing historic resources to autonomous systems, collaborative swarming, counter-UAS, long-range precision fires and missile defense, and Palladyne AI is actively pursuing opportunities across those programs. We are executing on multiple fronts simultaneously with contracted backlog, deployed product and published intellectual property that together reflect the progress we are making and the category we are defining.\u201d<\/p>\n
First Quarter 2026 Strategic and Operational Highlights<\/b><\/p>\n
Defense, Space and Autonomy<\/b><\/p>\n Commercial and Industrial<\/b><\/p>\n Thought Leadership and Intellectual Property<\/b><\/p>\n First Quarter 2026 Financial Highlights (vs. first quarter 2025)<\/b><\/p>\n 2026 Outlook<\/b><\/p>\n \nPalladyne AI reiterates its 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. The Company expects revenue to be back-end weighted, with Q2 directionally above Q1 and growth accelerating through the second half as backlog converts, new contracts are awarded and performed, and commercial deployments expand.<\/p>\n \nBacklog of approximately $17 million as of March 31, 2026, reflects continued contract momentum during the quarter. Palladyne AI expects a majority of this backlog to be recognized as revenue over the next 12-18 months.<\/p>\n \nPalladyne AI continues to expect consolidated quarterly operating cash usage of approximately $8 million to $9 million, on average, for the full year 2026. First-quarter cash usage was modestly above this range, primarily reflecting lower-than-planned government revenue from the government shutdown and working capital investment associated with production activity. The Company expects cash usage to trend toward and within the guided range as revenue and margins ramp through the year.<\/p>\n \nBased on its liquidity position and expected backlog conversion, management believes it is well-positioned to execute its 2026 plan.<\/p>\n Conference Call<\/span><\/b><\/p>\n \nPalladyne AI will host a conference call today, 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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