Overview

• US drone solutions provider reported Q1 revenue of $27.7 mln, gross margin at 18.6%

• Pro forma combined revenue and gross profit declined yr/yr after business realignment

• Adjusted EBITDA loss narrowed to $4.9 mln as cost reduction and realignment efforts continued

Outlook

• Company expects full-year 2026 revenue of $160 mln or greater

• Company sees 2026 gross profit margin between 19% and 21%

• Company expects to achieve breakeven cash flow in Q3 2026

Result Drivers

• BUSINESS REALIGNMENT - Co said Q1 results reflect impact of Inpixon RTLS divestiture and renewed focus on drone platform

• COST REDUCTION - Adjusted EBITDA loss narrowed due to actions to streamline operations, reduce spending and better align cost structure

• ENTERPRISE AND GOVERNMENT ENGAGEMENT - Co said Drone Nerds expanded engagement with enterprise and government customers, strengthening pipeline activity entering Q2

Company press release: ID:nPn49gF4ja

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue		$27.7 mln
Q1 Net Income		-$35 mln
Q1 Income from Operations		-$10.39 mln
Q1 Operating Expenses		$15.54 mln

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the aerospace & defense peer group is "buy"

• Wall Street's median 12-month price target for XTI Aerospace Inc is $5.00, about 171.7% above its May 13 closing price of $1.84

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