Earnings Releases·Nov 12, 2026, 4:14 PM ET

Merlin, Inc. — Third Quarter 2026 Earnings Summary

Q3 2026 revenue reached $3.5 million, up from $2.2 million in Q2 2026, while GAAP net income reversed to a $73.8 million profit from a $58.4 million loss in the prior quarter, driven by a $103.6 million non-cash gain from warrant liability fair value changes.
The company secured a new $8.9 million task order from USSOCOM for the C-130J autonomy program, which carries a total IDIQ ceiling exceeding $100 million, alongside a $500,000 USAFRICOM contract for the Merlin Pilot™ demonstration.
Management targets 2027 operating expenses to be meaningfully below 2026 levels, aiming to establish a lower cost base to fund operations through 2029 without capital raises, despite Q3 operating expenses rising to $29.7 million from $14.6 million in Q2.
As of September 30, 2026, the company reported $161.6 million in cash and short-term investments with no outstanding debt, down from $183.9 million at June 30, 2026.