Exyn Technologies — Second Quarter 2026 Earnings Summary

Financial Performance

• Revenue for the second quarter of 2026 was $950 thousand, a decrease from $1.4 million in the prior-year period, attributed to the timing of customer deployments and project revenue recognition.
• Cost of revenues decreased 37.4% to $504 thousand, compared with $806 thousand in the second quarter of 2025.
• Gross profit was $445 thousand, down from $552 thousand in the prior-year period.
• Gross margin increased 630 basis points to 46.9%, compared with 40.6% in the second quarter of 2025, driven by improved project mix and lower cost of revenues relative to revenue.
• Net loss was $6.9 million, or $1.55 per basic and diluted share, compared with a net loss of $2.9 million, or $2.22 per basic and diluted share, in the prior-year quarter.
• Cash and cash equivalents were approximately $7.8 million as of June 30, 2026, compared to $812 thousand as of December 31, 2025.

Guidance and Future Outlook

• Management expects commercial execution, expanding software and subscription revenue, and continued momentum in defense initiatives to support revenue growth in the second half of 2026.
• The Company anticipates further improving the quality of its revenue mix through increased software and subscription adoption.
• Management views defense as one of the largest long-term growth opportunities for Exyn.

Business Segments and Product Lines

• The Company rebranded its government subsidiary as Exyn Defense and initiated the Green UAS certification process for the Nexys autonomous mapping platform.
• Nexys was selected by a leading U.S. government research and engineering organization following a competitive evaluation against commercial LiDAR systems.
• Exyn expanded into the defense sustainment market through an agreement supporting autonomous aircraft inspection and digital twin initiatives at the U.S. Air Force's Warner Robins Air Logistics Complex.
• New customer contracts were secured across mining, infrastructure, and U.S. government sectors spanning three continents during the first half of 2026, including the U.S. Army Corps of Engineers.
• The Company continues to increase the contribution of higher-margin software and subscription revenue through its ExynAI platform, which can be licensed to third-party manufacturers via SDK and API.

Market and Competitive Landscape

• Exyn operates in the autonomous mapping and perception-driven navigation market for complex, GPS-denied environments.
• The Company competes against commercial LiDAR systems, having successfully won a selection against them for a government research organization.
• Management identifies a multibillion-dollar defense sustainment market as a key expansion area.

Risks and Challenges

• Forward-looking statements highlight risks including the ability to commercialize and deploy Exyn Nexys and other autonomy solutions.
• Potential risks include adoption rates of autonomous robotics and 3D mapping solutions, product performance, safety, cybersecurity, and integration in GPS-denied environments.
• Risks also encompass defense, OEM, industrial, and government customer purchasing decisions, procurement processes, and contract timing.
• Additional risks include the ability to convert initial deployments into recurring business, raising substantial additional funds, competition, technological change, supply chain, manufacturing, regulatory, export-control, and government-contracting risks, and IP protection.

Management Commentary and Tone

• Ben Williams, Chief Operating Officer, described the second quarter as an important milestone in the company's evolution, highlighting the acceleration of defense expansion and strengthening of core technology.
• Management emphasized that ExynAI represents a significant competitive moat built through years of real-world deployments and millions of autonomous decisions.
• The tone reflects confidence in the software-first model to create high-margin, recurring revenue and scale across an expanding installed base of third-party systems.
• Management noted that while second-quarter revenue reflected deployment timing, the company is focused on executing its growth strategy to expand top-line revenue and scale the platform across commercial and defense markets.

Other Key Points

• Exyn Technologies successfully completed its initial public offering in May 2026.
• The Company's proprietary ExynAI platform is hardware-agnostic and enables Level 4B autonomy for third-party manufacturers.
• The Company's technology enables teams to capture accurate 3D data in environments that are dark, disconnected, hazardous, or difficult to access.