Earnings Releases·Nov 5, 2026, 4:00 PM ET

Unusual Machines — Third Quarter 2026 Earnings Summary

Revenue surged 551% year-over-year to $13.9 million but declined 17% quarter-over-quarter; net loss widened to $25.0 million ($0.50/share) from a $1.6 million profit in Q3 2025, driven largely by non-cash items and an $18.4 million unrealized loss on investments.
Gross margin contracted to 35.4% from 39.4% YoY, while operating loss increased to $8.4 million; however, cash reserves grew to $162.0 million, and management targets positive adjusted EBITDA in 2027.
Strategic expansion includes the recent Upgrade Energy acquisition adding battery and additive manufacturing capabilities, a new automated motor line targeting 100,000 units/month, and anticipated domestic camera manufacturing in early 2027.
Future outlook remains supported by allocated government budgets through Q1 2027 and the finalized Drone Dominance Program, though the company anticipates increased customer concentration and faces challenges regarding inventory buildup and capital raising in a lower-multiple market.