2025 fourth quarter and full year highlights (includes the acquisition of Drone Nerds, LLC and Anzu Robotics, LLC (together, "Drone Nerds") in November 2025, Inpixon results excluded and reflected in discontinued operations):
Revenue of $22.5 million
Gross profit of $4.9 million
Gross profit as a percentage of revenue of 21.9 percent
For purposes of this release, the Company defines "pro forma" as unaudited supplemental combined financial information.
2025 pro forma fourth quarter XTI highlights(1) (includes Drone Nerds as if the acquisition had occurred as of January 1, 2024):
Revenue of $41.7 million
Gross profit of $8.1 million
Gross profit as a percentage of revenue of 19.5 percent
Net loss from continuing operations of $7.6 million
2025 full year pro forma, XTI reported the following highlights(1) (includes Drone Nerds as if the acquisition had occurred as of January 1, 2024):
Revenue of $121.6 million
Gross profit of $26.8 million
Gross profit as a percentage of revenue of 22.0 percent
Net loss from continuing operations of $39.0 million
Company guidance:
Expecting full year 2026 revenue of $160 million or greater
2025 fourth quarter events:
Completed approximately $40 million acquisition of Drone Nerds, a leading U.S. drone solutions provider, and secured a concurrent $25 million strategic investment from Unusual Machines, Inc. (NASDAQ:UMAC)
Formed strategic alliance with Valkyrie Intelligence LLC ("Valkyrie Sciences"), including an investment and services agreement, to harness the intelligence derived from the sizable drone industry data set built by Drone Nerds
Recent events:
Completed the divestiture of the Inpixon RTLS business to streamline the Company's focus on its drone platform
Secured $20 million Asset-Based Lending ("ABL") credit facility with JPMorgan to support growth and liquidity, subject to customary borrowing conditions, covenants and availability
The Autonomous Defense Systems ("ADS") division, formed through the reorganization and redesignation of the Company's XTI Aircraft division, and the Advanced Technology and Manufacturing ("ATM") division, which the Company is in the process of establishing and which has not yet generated revenue
Strengthened the composition of XTI's Board of Directors with aviation and unmanned systems expertise through the appointments of Clinton Weber and Jonathan Ornstein
(1)
For information on unaudited supplemental combined financial information presented, see the section titled "Unaudited Supplemental Combined Financial Information" in this press release.
"The acquisition of Drone Nerds transformed XTI Aerospace into a scaled, revenue-generating platform," said Scott Pomeroy, Chief Executive Officer of XTI Aerospace. "Drone Nerds is a leading enterprise-focused UAS solutions provider with deep customer relationships and a proven operating model that continues to deliver strong performance. Its OEM-agnostic approach and broad supplier network position us to participate in a rapidly evolving market. Just as important, the platform provides real-time data and market intelligence that informs where we invest, build, and expand. We believe this foundation positions us to support growth and support our expansion into new markets and higher-value opportunities across the business."
"XTI Drones continues to scale as a cash-generating commercial engine. Our Advanced Technology and Manufacturing division strengthens our ability to expand our participation in the value chain through U.S.-based manufacturing. Our Autonomous Defense Systems initiative is building a pipeline of potential military and defense contract opportunities in a large and growing market. Together, these elements create a flywheel that we believe is designed to support growth, margin expansion, and long-term value creation. In 2026, our focus is execution."
Liquidity and Capital ResourcesAt December 31, 2025, the Company had $16.7 million of unrestricted cash and cash equivalents. An additional $0.2 million of cash is included in current assets of discontinued operations and is not included in unrestricted cash balances.
The Company does not currently expect to require additional capital to support the ordinary-course operating needs of the Drone Nerds business. However, the Company may seek additional capital in the future to support strategic acquisitions and the development of its advanced systems and domestic manufacturing initiatives.
Subsequent to December 31, 2025 and through the date of this filing, holders of certain warrants issued in connection with our 2025 public offerings exercised warrants to purchase 3,963,408 shares of the Company's common stock. These exercises resulted in aggregate cash proceeds to us of approximately $7.9 million. We engaged ThinkEquity LLC as our exclusive advisor in connection with the solicitation of these warrants for which we paid cash compensation of 3% of the gross proceeds, or approximately $0.2 million. After deducting such commissions, the net proceeds we received from these warrant exercises was approximately $7.7 million.
Unaudited Supplemental Combined Financial InformationThe Company has provided unaudited supplemental financial information of the combined company in this press release. The following financial information combines XTI and Drone Nerds historical operating results as if the businesses had been operated together on a combined basis during prior periods. This financial information is intended to illustrate the current operating footprint of the Company following the acquisition of Drone Nerds and divestiture of the Company's Industrial IoT / Real-Time Location Systems business.
For the avoidance of doubt, the unaudited supplemental combined financial information was not prepared in accordance with Article 11 of Regulation S-X and differs from the unaudited pro forma condensed combined financial information included in the Pro Forma 8-K/A filing dated February 9, 2026 filed with the SEC (the "Pro Forma 8-K Filing"), which was prepared in accordance with Article 11 of Regulation S-X. Accordingly, the unaudited supplemental combined financial information was not prepared in accordance with Article 11 of Regulation S-X and is presented for illustrative purposes to assist investors in understanding the operational performance of the combined business, timing and operational impact of the acquisition, and integration of the combined business, and should not be considered a substitute for the pro forma financial information included in the Company's prior filings prepared in accordance with Article 11 of Regulation S-X.
Consequently, the unaudited supplemental combined financial information is intentionally different from, but does not supersede, the pro forma financial information set forth in the Pro Forma 8-K Filing or the pro forma financial information set forth in the Company's most recent annual report on Form 10-K
In addition, the unaudited supplemental combined financial information does not purport to indicate the results that actually would have been obtained had the companies been operated together during the periods presented, or which may be realized in the future. The unaudited supplemental combined financial information has no impact on XTI or Drone Nerds previously reported consolidated balance sheets or statements of operations, cash flows or equity.
XTI Aerospace, Inc. and SubsidiariesPro Forma(1) Combined Financial Data(Unaudited)
For the Three Months Ended
December 31,
2025
2024
(in thousands, except percentages)
Amount
Amount
$ Change
% Change
Revenues
$
41,709
$
26,832
$
14,877
55
%
Gross profit
8,149
3,694
4,455
121
%
Gross profit %
19.5
%
13.8
%
5.7
%
41
%
Net loss from continuing operations
(7,599)
(9,045)
1,446
(16)
%
For the Years Ended
2025
2024
(in thousands, except percentages)
Amount
Amount
$ Change
% Change
Revenues
$
121,590
$
111,201
$
10,389
9
%
Gross profit
26,784
17,333
9,451
55
%
Gross profit %
22.0
%
15.6
%
6.4
%
41
%
Net loss from continuing operations
(39,042)
(23,948)
(15,094)
63
%
(1)
For information on unaudited supplemental combined financial information presented, see the section titled "Unaudited Supplemental Combined Financial Information" in this press release.
The unaudited supplemental combined financial information excludes non-recurring transaction-related costs associated with the Drone Nerds acquisition.
Conference Call and Webcast (Live Q&A Format)The Company will post prepared remarks to the Investor Relations section of its website before the market opens on April 15, 2026. These remarks are intended to provide additional detail and context regarding the Company's financial results and business update.
The Company will host a live webcast on April 15, 2026 at 3:30 PM CT (4:30 PM ET), which will consist of a video-based question and answer session with Scott Pomeroy, Chief Executive Officer, and Brooke Turk, Chief Financial Officer. As part of this format, prepared remarks will not be read but will be available in the Investor Relations section of the Company's website at xtiaerospace.com under "IR News & Events."
Investors and analysts are invited to participate and may register in advance using this link: XTI Aerospace April 15 Earnings Webcast. The registration link is also available in the "Investor Relations" section of the Company's website under "IR News & Events." Dial-in information will be included upon registration.
The replay of the event will be publicly available to all investors in the Investor Relations section, under "IR News & Events" section of the Company's website at xtiaerospace.com following the conclusion of the question and answer session and will remain available for 30 days.
About XTI Aerospace, Inc.XTI Aerospace, Inc. (NASDAQ:XTIA) is a publicly traded aerospace and defense company operating across unmanned systems, advanced manufacturing, and drone distribution markets through three dedicated divisions.
The Company's Commercial division - XTI Drones, anchored by its Drone Nerds subsidiary, LLC, is one of the nation's leading drone solutions platforms, serving enterprise and government customers across sales, service, and support. The Commercial Division's market reach and transaction data provide XTI with unparalleled visibility into purchasing behavior across the unmanned systems industry, a strategic intelligence asset the Company may leverage to support future data and analytics initiatives.
The Company's Autonomous Defense Systems ("ADS") division is focused on the design, development, and integration of unmanned platforms for defense and commercial applications, with an emphasis on serving U.S. government customers and supporting domestic procurement initiatives aligned with national security priorities.
The Company's Advanced Technology and Manufacturing (ATM) division is developing a U.S.-based production platform for NDAA-compliant and Department of War ("DoW") Blue List-eligible unmanned systems components and technologies, designed to support domestic manufacturing and supply chain requirements and serve the growing demand for domestically sourced unmanned systems across defense and enterprise markets.
XTI Aerospace is headquartered in Addison, Texas.
For more information about XTI, please visit xtiaerospace.com and follow XTI on LinkedIn, Instagram, X, and YouTube.
Cautionary Statement Regarding Forward-Looking StatementsThis press release contains certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact contained in this press release are forward-looking statements.
Forward-looking statements may be identified by words such as "believe," "continue," "could," "would," "will," "expect," "intend," "plan," "target," "estimate," "project," or similar expressions. These statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied. Such risks include, but are not limited to, market adoption, regulatory requirements, supply chain conditions, technological development, integration of the acquired businesses, availability of capital and liquidity, and changes in applicable laws or regulations as well as the other risks and uncertainties described in the Company's filings with the U.S.
165 Securities and Exchange Commission. XTI undertakes no obligation to update any forward-looking statements to reflect subsequent events or circumstances, except as required by applicable law. Readers are encouraged to review the risk factors described in XTI's filings with the U.S. Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent filings.
Contacts:
General inquiries:Email: [email protected]Web: https://xtiaerospace.com/contact
Investor Relations:Dave Gentry, CEORedChip Companies, Inc.Phone: 1-407-644-4256Email: [email protected]
XTI Aerospace, Inc. and SubsidiariesConsolidated Statements of Operations(In thousands, except per share data)(Unaudited)
For the Three Months Ended
December 31,
For the Year Ended
December 31,
2025
2024
2025
2024
Revenues
$
22,490
$
—
$
22,490
$
—
Cost of Revenues
17,569
—
17,569
—
Gross Profit
4,921
—
4,921
—
Operating Expenses
Research and development
1,287
491
5,240
1,970
Sales and marketing
2,323
545
5,604
1,517
General and administrative
12,719
4,505
32,845
19,660
Merger-related transaction costs
3,429
—
3,887
6,490
Amortization of intangible assets
142
8
166
30
Total Operating Expenses
19,900
5,549
47,742
29,667
Loss from Operations
(14,979)
(5,549)
(42,821)
(29,667)
Other (Expense) Income
Interest expense, net
(51)
(229)
(270)
(782)
Amortization of deferred loan costs
—
—
—
(17)
Loss on conversion of note receivable to equity
instrument
—
(2,630)
—
(2,630)
Loss on extinguishment of debt
—
—
(421)
(6,732)
Provision for expected credit losses on convertible
note investment
(2,039)
—
(2,039)
—
Change in fair value of convertible notes payable
—
—
—
12,882
Change in fair value of equity securities
—
(1,068)
(349)
(1,068)
Change ...
