Merlin Posts $1M Q1 Revenue with 15% Growth and $90M Loss, Eyes $105M C-130J Award
Merlin delivered Q1 revenue of $1 million, a 15% year-over-year increase, while posting a net loss of $90 million driven by non-cash items from its recent business combination. The company achieved its first fully automated takeoffs in the U.S. and New Zealand and completed the C-130J Preliminary Design Review, targeting a Critical Design Review en route to a potential $105 million award.
1. Q1 Financial Performance
Merlin reported Q1 revenue of $1 million, reflecting 15% year-over-year growth, while posting a net loss of $90 million largely due to non-cash charges tied to its recent business combination. This performance underscores the company’s early commercialization stage and ongoing investment in technology development.
2. Autonomous Flight Milestones
The company executed its first fully automated takeoffs on certification-candidate aircraft in both the U.S. and New Zealand, validating key components of its autonomy software and hardware. These achievements bolster Merlin’s technical maturity and pave the way for end-to-end certification of autonomous flight.
3. C-130J IDIQ Program Progress
Merlin completed the Preliminary Design Review for the C-130J IDIQ contract, marking the inaugural integration of autonomy on an operational Air Force aircraft. The upcoming Critical Design Review will determine progress toward a potential $105 million award and further deployment on C-130J platforms.
4. Strategic Partnerships and Growth Plans
Merlin is collaborating with Worldstar Aviation to scale its Condor product in the commercial cargo conversion market and plans to leverage M&A to expand its autonomy core. It also stands to gain from a $53 billion fiscal 2027 defense budget allocation for the Autonomous Warfare Group.