Business Wire·Nov 10, 2026, 7:00 AM ET

Palladyne AI Reports Record Third Quarter 2026 Results

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Palladyne AI Corp. reported Q3 2026 revenue of $8.6 million, an 895% year-over-year increase and a 48% sequential increase.
The company raised its full-year 2026 revenue guidance low end to $25 million while reiterating the $27 million top end, projecting 377% to 415% year-over-year growth.
Q3 revenue saw a 26% sequential increase driven by the components business and a 135% quarter-over-quarter rise in government contract revenue.
Company backlog stood at $18.7 million as of September 30, 2026, with $15.3 million funded and $2.7 million in new net contracts added during the quarter.
SwarmOS received the highest possible rating on all nine key performance criteria evaluated by the U.S. Army at Project Convergence Capstone 6.
Palladyne AI shipped record volumes of BRAIN flight computers, including the first units of the cost-optimized BRAIN FC-1 variant.
Strategic partnerships expanded to include fixed-wing aircraft integration with Orkid Tech, Underdog module integration with NORDA Dynamics, and an industrial automation collaboration with FANUC America.
Following the expiration of 20.5 million warrants and 2.3 million contingent shares, the fully diluted share count decreased by 9%.
The company reported a GAAP net loss of $12.0 million for the quarter, driven by increased stock-based compensation, headcount growth, and R&D expenses.
Operating cash burn decreased sequentially in Q3 due to strong revenue performance, though full-year 2026 burn is expected to be close to or slightly above the high end of the guided range.
Palladyne AI holds $47.0 million in cash, cash equivalents, and marketable securities as of September 30, 2026, providing sufficient funding for at least the next 12 months.
Full-year 2026 non-GAAP net loss is projected to be $29.1 million based on nine-month results, with fourth-quarter burn expected to be lower than the year-to-date average.