BETA Technologies, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported record quarterly revenue of $17.7 million for the three months ended September 30, 2026, representing a 98% year-over-year increase compared to $8.9 million in the same period in 2025; revenue was entirely organic.
• Revenue composition included $5.2 million in product revenue and $12.5 million in service revenue.
• Reported a net loss of $119.1 million for the quarter, compared to a net loss of $437.2 million in the prior year period.
• Reported Adjusted EBITDA of ($97.4) million for the quarter, compared to ($67.6) million in the prior year period.
• Gross margin was $12.7 million for the quarter, up from $6.2 million in the prior year period.
• Total operating expenses were $140.5 million for the quarter, compared to $86.8 million in the prior year period.
• Research and development expenses were $90.5 million for the quarter, compared to $56.4 million in the prior year period, including $5.8 million in non-cash warrant expense related to a GE Aerospace collaborative arrangement.
• General and administrative expenses were $50.0 million for the quarter, compared to $30.4 million in the prior year period.
• Capital expenditures were $28.8 million for the quarter, compared to $13.0 million in the prior year period.
• Cash and cash equivalents totaled $1,343.1 million as of September 30, 2026, compared to $687.6 million as of September 30, 2025.
• Total assets were $1,857.5 million as of September 30, 2026, compared to $2,106.3 million as of December 31, 2025.
• Total liabilities were $339.8 million as of September 30, 2026, compared to $288.4 million as of December 31, 2025.
• Deferred revenue was $5.5 million (current) and $14.6 million (non-current) as of September 30, 2026, compared to $3.7 million (current) and $12.6 million (non-current) as of December 31, 2025.
• Notes payable were $9.9 million (current) and $174.0 million (non-current) as of September 30, 2026.

Guidance and Future Outlook:

• Increased full-year 2026 revenue guidance to a range of $52 million to $57 million.
• Maintained full-year 2026 Adjusted EBITDA guidance in the range of ($400) million to ($445) million.
• Management noted that a reconciliation of forward-looking Adjusted EBITDA is not available due to uncertainties regarding stock-based compensation, warrant expense, and other factors outside the company's control.

Business Segments and Product Lines:

• Achieved a historic FAA Special Airworthiness Certificate for market surveys for the A250 electric VTOL aircraft, enabling demonstration flights with customers onboard ahead of type certification.
• Exceeded 250,000 nautical miles flown across the aircraft fleet ahead of schedule, covering both CTOL and VTOL aircraft.
• Expanded the open, interoperable charging network to 168 sites across the United States.
• Increased commercial aircraft backlog to just over $4.0 billion, surpassing the year-end target, representing 1,040 aircraft in firm and option orders supported by financial commitments.
• Launched 6 of the 7 selections in the FAA's eVTOL Integration Pilot Program (eIPP), including missions for medical supplies, emergency response equipment, and time-sensitive cancer medicines.

Market and Competitive Landscape:

• The company operates in the aerospace and defense sector, focusing on electric aircraft, propulsion systems, components, and charging systems for cargo, logistics, defense, passenger, and medical end markets.
• The A250 is the first electric VTOL aircraft to receive FAA market survey authorization for customer demonstration flights.

Risks and Challenges:

• The press release references forward-looking statements subject to inherent uncertainties, including regulatory outlook, progress and timing of certification, and capital needs.
• Actual results may differ materially due to factors such as the competitive and rapidly changing environment, new risks, and uncertainties not within the company's control.
• Specific risks include the inability to predict stock-based compensation and warrant expenses, which could materially affect future GAAP financial results.

Management Commentary and Tone:

• Kyle Clark, Founder and CEO, described the quarter as the "strongest quarter of revenue since inception" and stated the company is "exceeding the targets we set at the beginning of 2026."
• Management highlighted that their "vertically integrated, stepwise approach" allows them to apply field learning directly to aircraft improvements.
• The tone emphasized momentum in scaling production and advancing toward commercial certification.

Other Key Points:

• The company disclosed that cash and cash equivalents growth reflects successful private financings and IPO proceeds.
• The company plans to host a live webcast and conference call at 8:30 am ET to discuss results.
• BETA utilizes its website and social media channels (Instagram and LinkedIn) for material disclosures under Regulation FD.