Swarmer — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue was $25,554 for the third quarter ended September 30, 2026, compared to $35,771 in the prior-year quarter.
• Gross loss was $47,093 for the third quarter of 2026, compared to a gross loss of $9,670 in the third quarter of 2025.
• Operating expenses were approximately $9.4 million for the third quarter of 2026, compared to $0.8 million in the third quarter of 2025.
• Operating expenses in the third quarter of 2026 included approximately $1.7 million in noncash stock-based compensation, compared to $18 thousand in the prior-year quarter.
• Net loss was approximately $9.3 million for the third quarter of 2026, compared to approximately $3.4 million in the prior-year quarter.
• Cash and cash equivalents totaled approximately $37.3 million as of September 30, 2026, compared to $25.3 million as of June 30, 2026.
• The increase in cash was primarily driven by proceeds under the company's equity line of credit.
• Reported results do not include the financial performance of Ratel Robotics as the acquisition remains pending.

Guidance and Future Outlook:

• Management expects Ratel Robotics to generate fourth quarter 2026 revenue of $35 million to $40 million.
• Management expects Ratel Robotics to achieve operating margins of 13% to 17% in the fourth quarter of 2026.
• As of September 30, 2026, Ratel Robotics has approximately $65.1 million in backlog under previously signed government contracts.
• The Ratel acquisition agreement includes performance-based earnouts tied to future revenue and operating income targets.
• Vectus Air Defense Systems has expressed an intent to purchase at least 40 systems in the first year after production begins and at least 80 in the second year, subject to definitive agreements and customary approvals.
• The estimated MSRP for Vectus systems is $5 million to $6 million per system; these are not binding orders or recognized revenue.

Business Segments and Product Lines:

• Ratel Robotics: Swarmer signed a definitive agreement on September 9, 2026, to acquire Ratel Robotics, a manufacturer of unmanned ground vehicles (UGV).
• Shareholders approved the issuance of common stock related to the Ratel acquisition on November 2, 2026.
• Swarmer expects the Ratel acquisition to close in November 2026, subject to remaining closing conditions.
• Ratel's preliminary unaudited revenue was $42.1 million for the first nine months of 2026, including $32.5 million in the third quarter and $14.9 million in September.
• Vataga Drone: Swarmer announced a pending acquisition of intellectual property and R&D personnel, including designs and technologies for combat-tested quadcopters, interceptors, and initiation boards.
• Vectus Air Defense Systems: Swarmer entered into a memorandum of understanding to manufacture and sell complete air defense systems.
• Swarmer holds a 20% equity interest in Vectus Air Defense Systems.
• Ground vehicles, air defense, and integrated autonomous drone kits represent the three pillars of the company's expanding market position.

Market and Competitive Landscape:

• Swarmer's autonomy software has supported more than 100,000 real-world combat missions in Ukraine since April 2024.
• The company aims to transform from a standalone software provider into a supplier of integrated, end-to-end defense solutions.
• Swarmer plans to pursue larger opportunities through direct government sales.
• The company remains committed to a vendor-agnostic software platform while investing in hardware capabilities to deliver complete solutions.

Risks and Challenges:

• Ratel's preliminary financial figures were prepared by Ratel's management, have not been reviewed or audited by Swarmer's independent registered public accounting firm, were not prepared in accordance with U.S. GAAP, and may change.
• The Ratel acquisition is subject to remaining closing conditions and may not be completed on the anticipated timeline or at all.
• There is a risk that the unaudited financial information and estimates for Ratel Robotics may change materially or not reflect results achieved as part of the Company.
• Forward-looking statements regarding Ratel's revenue and margins are not guarantees of future performance.
• The Vectus purchase intent is not a binding order or recognized revenue.
• Risks include limited operating history as a public company, history of losses, limited current revenue, and the need for additional capital.
• Risks include potential dilution from sales under the equity line of credit and the risk that the acquisition of Ratel Robotics is not completed.
• Risks include difficulties integrating acquired businesses, technology, and personnel, including in Ukraine.
• Risks include customer concentration, non-renewal or loss of customer engagements, and the ability to convert pilot programs and memoranda of understanding into binding contracts.
• Risks include defense procurement cycles, geopolitical conditions, export control, sanctions, and regulatory requirements.
• Risks include competition in the defense technology and autonomous systems markets and supply chain constraints.

Management Commentary and Tone:

• Alex Fink, President and U.S. CEO, stated the third quarter marked a pivotal period in bringing combat-tested technologies from Ukraine to allied nations.
• Management believes the Ratel acquisition, Vataga Drone IP acquisition, and relationship with Vectus are transforming Swarmer into a supplier of integrated, end-to-end defense solutions.
• Management anticipates these initiatives will strengthen capabilities and position the company to pursue larger opportunities through direct government sales.

Other Key Points:

• Ratel's preliminary unaudited revenue figures for the first nine months of 2026 ($42.1 million) and specific quarterly breakdowns ($32.5 million in Q3, $14.9 million in September) were disclosed.
• The company hosted a third-quarter earnings conference call on November 10, 2026, at 5:00 p.m. Eastern time.
• Swarmer maintains operations and teams in Ukraine, Poland, and Estonia, with headquarters in Austin, Texas.
• The company's technology generates terabytes of proprietary data from combat missions to inform machine-learning models.
• The Ratel acquisition agreement includes performance-based earnouts tied to future revenue and operating income targets.