Palladyne AI Sees Q4 Revenue Up 118% to $1.7M, Backlog Nears $18M
Palladyne AI’s Q4 revenue surged 118% year-over-year to $1.7 million driven by mid-November acquisitions, with an operating loss of $9.3 million. It reiterated 2026 revenue guidance of $24–27 million (4–5x 2025), backlog rose from $13.5 million to $18 million, and it secured its first commercial IQ 2.0 and missile propulsion deals.
1. Q4 Financial Results
Palladyne AI reported Q4 revenue of $1.7 million, up 118% year-over-year, driven by post-acquisition contributions. Operating loss widened to $9.3 million, reflecting increased R&D and G&A expenses, and the company ended the quarter with approximately $47 million in cash, equivalents, and marketable securities.
2. 2026 Guidance & Backlog
Management reiterated 2026 revenue guidance of $24 million to $27 million, representing four- to five-times 2025 revenue. Backlog increased from about $13.5 million at year-end 2025 to nearly $18 million in early Q1, driven by new contract wins net of normal invoicing.
3. Product & Commercial Contracts
The company completed Palladyne IQ 2.0 and secured its first commercial IQ customer contract through a systems integration partner deploying robotic surface preparation. It also won a missile propulsion subsystem contract from a major defense prime, expected to contribute to 2026 revenue.
4. Acquisitions & Platform Evolution
Mid-November acquisitions of GuideTech, Warnke Precision Machining, and MKR Fabricators expanded in-house avionics design, precision components manufacturing, and UAV systems capabilities. These deals, alongside the launch of Palladyne Defense, transitioned the firm into a vertically integrated industrial and defense platform.