AISP

Second Quarter 2026 Net Revenues of $4.12 Million, Gross Profit of $3.09 Million and Gross Margin of 75% Net Revenue Increase of 92% and Gross Profit Increase of 102% as Compared to Q2 of the Prior Year REDMOND, Wash., Aug. 06, 2026 (GLOBE NEWSWIRE) -- Airship AI Holdings, Inc. (NASDAQ: AISP) (“Airship AI” or the “Company”), a leader in AI-driven video, sensor, and data management surveillance solutions, today reported its financial and operational results for the second quarter ended June 30, 2026. Q2 2026 Financial Highlights Net revenues for the quarter ended June 30, 2026, were $4.12 million. Gross profits for the quarter ended June 30, 2026, were $3.09 million. Gross profit percentage was 75% for the quarter ended June 30, 2026. Higher margins were in part due to increased solution sales with more Airship AI branded hardware and software offerings. Operating loss was $1.49 million for the quarter ended June 30, 2026, reflected in increased stock-based compensation of $951,000 and increased investments in sales, marketing-related and research and development expenditures which should increase future sales. Other expense for the quarter ended June 30, 2026, was $916,000, primarily due to a loss from a change in the fair value of earnout liability of $193,000 and change in fair value of warrant liability of $833,000, offset by interest income of $110,000. Net loss for the quarter ended June 30, 2026, was $2.4 million, or $0.07 per basic share, and reflected noncash income of $2.08 million. Net cash used in operating activities was $235,000 in the quarter ended June 30, 2026. Cash and cash equivalents was $12.37 million as of June 30, 2026 and accounts receivable was $3.75 million. Q2 2026 & Subsequent Operational Highlights Backlog as of August 6, 2026 was $6.9 million, representing firm fixed price contracts awarded in in prior quarters that are expected to be shipped and invoiced in the following quarter(s). Backlog is not indicative of future quarterly revenue as approximately 75% of quarterly revenue is transactional and recognized in the same quarter. Total validated pipeline at the end of the quarter was approximately $206 million, consisting of single and multi-year opportunities for AI-driven edge, video, and sensor and data management platform across all our customer verticals. Our pipeline includes opportunities at varying stages of progression with expected award timeframes throughout the next 18-24 months. Progressed several of our largest opportunities in the existing pipeline that are anticipated to close in the third quarter of 2026. These opportunities are tied to procurement efforts within the Department of Homeland Security (DHS) supporting homeland security priorities for the agency as part of the current administration’s efforts to strengthen border security and protect the homeland. Awarded an additional one year agreement of $1.9 million for system maintenance and sustainment for an existing Fortune 100 customer leveraging the Company’s Acropolis Enterprise Video and Data Management platform supporting operational and physical security requirements. Significant pipeline growth in our commercial business (defined as new business going through business partners or integrators) as our new Director of Commercial Sales and Director of Federal Business Development were able to attend several industry events and partner events to help grow brand awareness and increase brand visibility. Due to the sensitive nature of many of our customers and deployment use cases, we are often restricted from publicly disclosing awards and / or limited as to the specifics of the customer and use case. Consequently, most of our awards are executed on closed or restricted contract vehicles, which further limits the sharing of information that might otherwise be available. 2026 Outlook Capitalize on growing momentum in the current fiscal year around long-term business development efforts that are forecasted to be funded in 2026 through the One Big Beautiful Bill Act (OB3). Maintain focus on improving gross margin percentages supporting our goal of cash flow positive operations by the end of 2026. Continue tactical and strategic investments across our sales and business development organizations through organic cash flow from business operations and the potential cash exercise of public warrants. Continue training and refinement of our edge (Outpost AI) and data center / cloud (Fortress) based analytic platforms supporting emerging edge analytic workflows. Continue refining our agentic AI engine (Ask Airship) which enables users to use natural language to extract intelligence from real-time and stored data across the users’ enterprise. Continue innovation across our core Acropolis software platform supporting new workflows for cloud-based deployments in highly secure operational environments. Expand brand awareness engagements in new verticals through targeted marketing outreach opportunities, social media platforms, Airship AI hosted technology events, and industry tradeshow events. Management Commentary "The second quarter was one of execution," said Paul Allen, President of Airship AI. "The awards we announced in the first quarter tied to National Special Security Events moved from contract to deployment, and our platform served as the intelligence layer unifying disparate sensors and imaging systems in live operational use, including unmanned aircraft and counter-UAS support for multiple DHS agencies during the FIFA World Cup and America 250th celebrations. Successfully operating at that scale during events of that size and criticality is a different proof point than an award announcement, also being the point our customers weigh most heavily when they evaluate us for future requirements.” "We also placed the first deployment of our new vehicle-based edge solution, Outpost AI Sentinel, which delivers 360-degree situational awareness around a moving vehicle while recognizing and classifying objects of interest defined by the customer. This extends our edge platform into mobile operational environments and opens requirements that fixed-site deployments cannot address.” "On procurement, the picture through the quarter was substantially as we described in May. Award activity remained constrained through most of the quarter, and we took advantage of that period to work alongside customers to finalize requirements and align them to agency prioritization goals so they would be ready to move once funding was in place. Funding for the remaining DHS components, namely U.S. Immigration and Customs Enforcement, including Homeland Security Investigations, and Customs and Border Protection's border security programs was enacted in June under the Secure America Act, consistent with the timeframe we outlined last quarter.” “Importantly, that funding extends through fiscal year 2029 rather than the current fiscal year alone, which gives these customers multi-year planning certainty for the technology investments our platform supports. OB3 funding also runs through September 30, 2029, the same horizon as the June appropriations act. Because award execution follows funding availability via a normal procurement interval, the requirements we developed during the quarter are now moving through contracting rather than waiting on appropriations.” "Our partner strategy advanced from interest to enablement during the quarter. Building on the integrator relationships established at ISC-West, we attended additional partner events and completed technical and sales training with selected integrators operating in the verticals we have targeted. That training produced immediate results: beyond uncovering new opportunities, these integrators moved active pursuits from incumbent competitive platforms to Airship AI as the lead offering based on differentiation they were able to demonstrate directly to their customers.” "We enter the final quarter of the federal fiscal year in a materially different position than we entered the second. The funding constraint is resolved, requirements are defined, and our partner channel is trained and in front of customers. What we said would need to happen has happened. Our focus now is straightforward: convert the requirements we have spent this year developing into awards and deliver against them with the same operational execution we demonstrated this quarter,” concluded Mr. Allen. About Airship AI Holdings, Inc. Founded in 2006, Airship AI (NASDAQ: AISP) is a U.S. owned and operated technology company headquartered in Redmond, Washington. Airship AI is an AI-driven video, sensor and data management surveillance platform that improves public safety and operational efficiency for public sector and commercial customers by providing predictive analysis of events before they occur and meaningful intelligence to decision makers. Airship AI’s product suite includes Outpost AI edge hardware and software offerings, Acropolis enterprise management software stack, and Command family of visualization tools. For more information, visit https://airship.ai. Forward-Looking Statements The disclosure herein includes certain statements that are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “project,” “forecast,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters, but the absence of these words does not mean that a statement is not forward looking. These forward-looking statements include, but are not limited to, (1) statements regarding estimates and forecasts of financial, performance and operational metrics and projections of market opportunity; (2) changes in the market for Airship AI’s services and technology, expansion plans and opportunities; (3) the projected technological developments of Airship AI; and (4) current and future potential commercial and customer relationships. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of Airship AI’s management and are not predictions of actual performance. These forward-looking statements are also subject to a number of risks and uncertainties, as set forth in the section entitled “Risk Factors” in its Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 17, 2026, and the other documents that the Company has filed, or will file, with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. In addition, forward looking statements reflect the Company’s expectations, plans or forecasts of future events and views as of the date of this press release. The Company anticipates that subsequent events and developments will cause its assessments to change. However, while it may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements. Investor Contact: Chris Tyson/Larry HolubMZ North [email protected] (1) Derived from the audited consolidated balance sheet.

First Quarter 2026 Net Revenues of $6.3 Million, Gross Profit of $3.2 Million and Gross Margin of 50% Net Revenue Increase of 15% and Gross Margin Increase of 42% as Compared to Q1 of the Prior Year REDMOND, Wash., May 11, 2026 (GLOBE NEWSWIRE) -- Airship AI Holdings, Inc. (NASDAQ: AISP) (“Airship AI” or the “Company”), a leader in AI-driven video, sensor, and data management surveillance solutions, today reported its financial and operational results for the first quarter ended March 31, 2026. Q1 2026 Financial Highlights Net revenues for the quarter ended March 31, 2026, were $6.3 million. Gross profits for the quarter ended March 31, 2026, were $3.2 million. Gross margin percentage was 50% for the quarter ended March 31, 2026. Higher margins were in part due to increased solution sales with more Airship AI branded hardware and software offerings. Operating loss was $1,582,000 for the quarter ended March 31, 2026, reflected in increased stock-based compensation of $666,000 and increased investments in sales and marketing-related expenditures and research and development expenses which are expected to increase future sales. Other income for the quarter ended March 31, 2026, was $861,000, primarily due to a gain from the change in fair value of warrant liability of $1.5 million, offset by a $726,000 loss on change in fair value of the earnout liability. Net loss for the quarter ended March 31, 2026, was $721,000, or $0.02 per basic share, primarily related to noncash expenses of $861,000 and stock-based compensation of $666,000. Net cash provided by operating activities was $814,000 in the quarter ended March 31, 2026. Cash and cash equivalents was $12.6 million and accounts receivable was $5.4 million as of March 31, 2026. Q1 2026 & Subsequent Operational Highlights Backlog as of May 8, 2026 was $4.6 million, representing firm fixed price contracts awarded in the fourth quarter of 2025 and the first quarter of 2026 that will be shipped and invoiced in the following quarter(s). Backlog is not indicative of future quarterly revenue as approximately 75% of quarterly revenue is transactional and recognized in the same quarter. Our total validated pipeline at May 8, 2026 was approximately $165.3 million, consisting of single and multi-year opportunities for AI-driven edge, video, and sensor and data management platform across all our customer verticals. Our pipeline includes opportunities at varying stages of progression with expected award timeframes throughout the next 18-24 months. New significant contract awards and or procurement activities during Q1 2026 include: $1.9 million brand name only award from a Department of Homeland Security (DHS) agency supporting National Special Security Event deployments. $2.1 million brand name only award from a DHS agency supporting technical surveillance requirements for border security operations. $3.0 million in cumulative awards from a large commercial customer supporting a technical refresh of deployed hardware and software. Added several new large opportunities to the pipeline that are tied to the One Big Beautiful Bill (OB3) funding for the current fiscal year. These opportunities are tied to large procurement efforts within DHS supporting homeland security priorities for the agency as part of the current administration’s efforts to strengthen border security and protect the homeland. Added a new Director of Commercial Sales and Director of Federal Business Development to the Company, both of whom bring extensive experience in the commercial integrator space, critical to our rapid expansion into the larger commercial market where a robust and attractive partner program is key to success. Added (Ret) Chief David Aguilar as our first Advisory Board Member. Chief Aguilar was the former Acting Commissioner of Customs and Border Protection, Deputy Commissioner, and Chief of the Border Patrol. Chief Aguilar brings a wealth of knowledge on border security operations and mission requirements, as well as operational leadership, which we believe will be incredibly valuable as we continue to expand our support to this and other agencies within the DHS. Due to the sensitive nature of many of our customers and deployment use cases, we are often restricted from publicly disclosing awards and/or limited as to the specifics of the customer and use case. Consequently, most of our awards are executed on closed or restricted contract vehicles, which further limits the sharing of information that might otherwise be available. 2026 Outlook Capitalize on growing momentum in the current fiscal year around long-term business development efforts that are forecasted to be funded in 2026 through the OB3. Maintain focus on improving gross margin percentages supporting our goal of cash flow positive operations before the end of 2026. Continue tactical and strategic investments across our sales and business development organizations through organic cash flow from business operations and the potential cash exercise of public warrants. Continue training and refinement of our edge (Outpost AI) and datacenter / cloud (Fortress) based analytic platforms supporting emerging edge analytic workflows. Continue refining our agentic AI engine (Ask Airship) which enables users to use natural language to extract intelligence from real-time and stored data across the user’s enterprise. Continue innovation across our core Acropolis software platform supporting new workflows for cloud-based deployments in highly secure operational environments. Expand brand awareness engagements in new verticals through targeted marketing outreach opportunities, social media platforms, Airship AI hosted technology events, and industry tradeshow events. Management Commentary “The first quarter of 2026 extended the momentum we built in the fourth quarter, particularly across preparatory procurement and teaming activities tied to several anticipated large award opportunities expected later in the current fiscal year,” said Paul Allen, President of Airship AI. “While certain fiscal appropriation procedural challenges at the Department of Homeland Security were addressed under new leadership, procurement activity during the quarter continued to be constrained by the absence of finalized budgets for the remaining DHS agencies and delays in the disbursement of OB3 funds. “Despite these budget-related headwinds, we successfully secured several awards supporting critical border technology initiatives and AI-driven public safety capabilities associated with National Special Security Events, including the World Cup and America’s 250th anniversary celebrations. At the same time, increasing market awareness of the breadth of our platform, the maturity of our integrations, and our ability to support mission-critical requirements led to several new partnerships in which we are serving as both prime and/or subcontractor. We believe these developments further strengthen our positioning and expand our ability to scale as procurement activity accelerates. “During the quarter, we attended several critical industry tradeshows, including ISC-West, the premier event for physical and cybersecurity in the US. Leveraging the extensive network from our newly added sales and business development leaders, we were able to substantially expand the number of security integrators interested in leading with Airship AI as a core product offering to their customers, from the regional to national level. These discussions and the follow-on customer engagements post-event highlight the strength in our differentiated approach to this marketplace. “At the show, we announced several key updates to our AI software suite, including enhanced functionality within Ask Airship, our agentic AI natural-language search tool. Based on feedback from initial customer and partner deployments, we believe these enhancements materially improve operational efficiency for customers managing federated and enterprise security environments, while also increasing their ability to extract actionable intelligence from both real-time and historical data. We believe this capability further differentiates our platform and supports the growing demand for more predictive, intelligence-driven security operations. “We also introduced several new integrated hardware and software offerings that enable customers to deploy our edge AI platform, Outpost AI, through turnkey operational sensor packages. By combining our software and hardware with commercial off-the-shelf and government off-the-shelf technologies, we are making it easier for customers to rapidly procure and deploy urgently needed public safety and physical security solutions. We believe these packaged offerings enhance the accessibility of our platform and create additional avenues for near-term growth. “While we remain primarily focused on expanding our AI software offerings, we continue to see meaningful opportunities to extend our platform through integration with both internally developed and third-party hardware solutions that broaden the reach of our ecosystem. This includes opportunities across both federal and commercial markets, particularly in areas where we see attractive greenfield potential, such as autonomous AI-driven robotic platforms designed to support public safety, security, and operational use cases. “As we move through the second half of the fiscal year, we remain highly encouraged by the strength of our pipeline, the progress we made during the quarter, and our team’s ability to execute against the opportunities ahead. Assuming budgets for the remaining federal agencies are approved within the next one to two months, we believe the foundation is in place for procurement activity to increase meaningfully, supporting what we expect will be a very active and momentum-driven finish to the year,” concluded Mr. Allen. About Airship AI Holdings, Inc. Founded in 2006, Airship AI (NASDAQ: AISP) is a U.S. owned and operated technology company headquartered in Redmond, Washington. Airship AI is an AI-driven video, sensor and data management surveillance platform that improves public safety and operational efficiency for public sector and commercial customers by providing predictive analysis of events before they occur and meaningful intelligence to decision makers. Airship AI’s product suite includes Outpost AI edge hardware and software offerings, Acropolis enterprise management software stack, and Command family of visualization tools. For more information, visit https://airship.ai. Forward-Looking Statements The disclosure herein includes certain statements that are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “project,” “forecast,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters, but the absence of these words does not mean that a statement is not forward looking. These forward-looking statements include, but are not limited to, (1) statements regarding estimates and forecasts of financial, performance and operational metrics and projections of market opportunity; (2) changes in the market for Airship AI’s services and technology, expansion plans and opportunities; (3) the projected technological developments of Airship AI; and (4) current and future potential commercial and customer relationships. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of Airship AI’s management and are not predictions of actual performance. These forward-looking statements are also subject to a number of risks and uncertainties, as set forth in the section entitled “Risk Factors” in its Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 17, 2026, and the other documents that the Company has filed, or will file, with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. In addition, forward looking statements reflect the Company’s expectations, plans or forecasts of future events and views as of the date of this press release. The Company anticipates that subsequent events and developments will cause its assessments to change. However, while it may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements. Investor Contact: Chris Tyson/Larry Holub MZ North America 949-491-8235 [email protected]

Fourth Quarter 2025 Net Revenues of $6.5 Million, Gross Profit of $3.3 Million and Gross Margin of 51.2% Net Revenue Increase of 102% and Gross Margin Increase of 169% as Compared to Q4 of the Prior Year Cash flow positive business operations for the quarter. REDMOND, Wash., Feb. 17, 2026 (GLOBE NEWSWIRE) -- Airship AI Holdings, Inc. (NASDAQ: AISP) (“Airship AI” or the “Company”), a leader in AI-driven video, sensor, and data management surveillance solutions, today reported its financial and operational results for the fourth quarter ended December 31, 2025. Q4 2025 Financial Highlights Net revenues for the quarter ended December 31, 2025, were $6.5 million. Gross profits for the quarter ended December 31, 2025, were $3.3 million. Gross margin percentage was 51.2% for the quarter ended December 31, 2025. Higher margins were in part due to increased solution sales with more Airship AI branded hardware and software offerings. Operating loss was $612,000 for the quarter ended December 31, 2025, reflected in increased stock-based compensation and increased investments in sales and marketing-related expenditures which should increase future sales. Other income for the quarter ended December 31, 2025, was $23.6 million, primarily due to a gain from a change in the fair value of earnout liability of $14.5 million and change in fair value of warrant liability of $9 million. Net income for the year ended December 31, 2025, was $29.3 million, or $0.90 per basic share, primarily related to noncash income of $36.5 million. Net cash used in operating activities was $3.5 million in the quarter ended December 31, 2025. This reflected a $5.2 million increase in accounts receivable. Cash and cash equivalents was $11.8 million as of December 31, 2025 and accounts receivable was $6.5 million. Q4 2025 & Subsequent Operational Highlights Backlog as of December 31, 2025 was $3.3 million, representing firm fixed price contracts awarded in the fourth quarter of 2025 that will be shipped and invoiced in the following quarter(s). Backlog is not indicative of future quarterly revenue as approximately 75% of quarterly revenue is transactional and recognized in the same quarter. Our total validated pipeline at the end of the quarter was approximately $173 million, consisting of single and multi-year opportunities for AI-driven edge, video, and sensor and data management platform across all our customer verticals. Our pipeline includes opportunities at varying stages of progression with expected award timeframes throughout the next 18-24 months. New significant contract awards during Q4 and into Q1 2026 include: $1.9 million award from Department of Homeland Security (DHS) supporting large National Special Security Events scheduled for 2026. $2.8 million award from a large commercial customer supporting a technical refresh of deployed hardware and software. Multiple awards at the DHS component agency level for critical infrastructure facilities to replace existing failing physical security solutions. Pilot opportunity for a DHS component agency level in-car vehicle recording system designed around officer and public safety. Through our expanding partner engagement activities, our pipeline substantially increased in both the commercial and federal sectors. Several opportunities added to the pipeline are enduring multi-year efforts that have the potential to expand Airship’s presence within the customer or agency significantly overtime, with long-term support contracts attached to them. Due to the sensitive nature of many of our customers and deployment use cases, we are often restricted from publicly disclosing awards and / or limited as to the specifics of the customer and use case. Consequently, most of our awards are executed on closed or restricted contract vehicles, which further limits the sharing of information that might otherwise be available. 2026 Outlook Capitalize on growing momentum coming out of Q4 into the new fiscal year around long-term business development efforts that are forecasted to be funded in 2026 through the One Big Beautiful Bill Act (OBBB). Maintain focus on improving gross margin percentages supporting our goal of cash flow positive operations before the end of 2026. Continue tactical and strategic investments across our sales and business development organizations through organic cash flow from business operations and the cash exercise of public warrants. Continue training and refinement of our edge (Outpost AI) and datacenter / cloud (Fortress) based analytic platforms supporting emerging edge analytic workflows. Continue innovation across our core Acropolis software platform supporting new workflows for cloud-based deployments in highly secure operational environments. Expand brand awareness engagements in new verticals through targeted marketing outreach opportunities, social media platforms, Airship AI hosted technology events, and industry tradeshow events. Management Commentary “The fourth quarter of 2025 saw positive contracting momentum with multiple agencies across the federal government,” said Paul Allen, President of Airship AI. “While fiscal appropriation processes put in place by the current administration have continued to slow down or impact some agencies ability to spend, those agencies engaged in mission critical activities around homeland security were able to move forward on several programs to solve for critical technology-based gaps in the quarter. “Notable new procurement activities under OBBB included movement on the CBP 'Smart Wall' construction with $4.5 billion in new contracts awarded. Airship is actively working with numerous prime contractors in support of meeting requirements as part of the 'Smart Wall' IDIQ, providing traditional and AI based video surveillance capabilities that will further strengthen our ability to control the border. “Additionally, progress was made on transitioning pilot / non-programmatic efforts that Airship was engaged with to the programmatic level, in some cases including new authorities to operate on trusted federal government networks. We believe this progression cements Airship’s position as a trusted vendor for highly secure AI driven solutions supporting federal government mission critical requirements now and into the future. "Our continued expansion into the partner / integrator space also added significantly to our pipeline, as we were exposed to multiple large projects supporting both federal and commercial customer opportunities, leveraging in part our existing footprint and trusted reputation as a solution provider. Being able to provide partners a turn-key market ready solution that is hardened and secure yet operator friendly is something that the market has been needing, one that operates as easily on-premises as it can in a datacenter or the cloud. "Our AI offerings increased as we closed out the end of the year with our Agentic AI natural-language search tool called 'Ask Airship' being released to select customers, allowing them to easily interact with data created by our growing sets of computer vision models running at the edge on our existing Outpost AI appliance and now released datacenter / cloud server offering called Fortress. “We expanded the use of our edge AI capabilities across additional sensor modalities and operational platforms, including mobile autonomous platforms, starting with bipedal and quadrupedal robots. We believe these platforms present the opportunity to reach a wider range of customers and solve a growing number of operational requirements as customers and agencies look to best leverage the efficiencies that robotic platforms offer when combined with AI at the edge. “Entering into 2026 we are highly optimistic about the opportunities in our pipeline and the strength of our team to collectively execute against them. While 2026 budgets at the DHS level aren’t fully resolved yet, with the existing funding in place for contingency and mission critical requirements, the growing breadth of our pipeline helps hedge the risks of funding challenges at any specific agency or component level,” concluded Mr. Allen. About Airship AI Holdings, Inc. Founded in 2006, Airship AI (NASDAQ: AISP) is a U.S. owned and operated technology company headquartered in Redmond, Washington. Airship AI is an AI-driven video, sensor and data management surveillance platform that improves public safety and operational efficiency for public sector and commercial customers by providing predictive analysis of events before they occur and meaningful intelligence to decision makers. Airship AI’s product suite includes Outpost AI edge hardware and software offerings, Acropolis enterprise management software stack, and Command family of visualization tools. For more information, visit https://airship.ai. Forward-Looking Statements The disclosure herein includes certain statements that are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “project,” “forecast,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters, but the absence of these words does not mean that a statement is not forward looking. These forward-looking statements include, but are not limited to, (1) statements regarding estimates and forecasts of financial, performance and operational metrics and projections of market opportunity; (2) changes in the market for Airship AI’s services and technology, expansion plans and opportunities; (3) the projected technological developments of Airship AI; and (4) current and future potential commercial and customer relationships. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of Airship AI’s management and are not predictions of actual performance. These forward-looking statements are also subject to a number of risks and uncertainties, as set forth in the section entitled “Risk Factors” in its Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 17, 2026, and the other documents that the Company has filed, or will file, with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. In addition, forward looking statements reflect the Company’s expectations, plans or forecasts of future events and views as of the date of this press release. The Company anticipates that subsequent events and developments will cause its assessments to change. However, while it may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements. Investor Contact: Chris Tyson/Larry Holub MZ North America 949-491-8235 [email protected]

Third Quarter 2025 Net Revenues of $1.2 Million, Gross Profit of $.6 Million and Gross Margin of 51% New Pro-U.S. Border Security Administration Provides Additional Macro Tailwinds for 2025 & Beyond with Validated Pipeline of $166 Million Raised $9.7 Million in Aggregate Proceeds from the Exercise of Warrants Subsequent to Quarter End, Fortifying Balance Sheet and Providing Additional Operational and Financial Flexibility REDMOND, Wash., Nov. 17, 2025 (GLOBE NEWSWIRE) -- Airship AI Holdings, Inc. (NASDAQ: AISP) (“Airship AI” or the “Company”), a leader in AI-driven video, sensor, and data management surveillance solutions, today reported its financial and operational results for the third quarter ended September 30, 2025. Q3 2025 Financial Highlights Net revenues for the quarter ended September 30, 2025, were $1.2 million. The third quarter of 2025 presented a number of challenges as recent changes in the federal acquisition process under the new administration slowed the pace of planned contracting activity, particularly within the Department of Homeland Security, along with the government shutdown. Gross profits for the quarter ended September 30, 2025, were $0.6 million. Gross margin percentage was 51% for the quarter ended September 30, 2025. Lower margins were in part due to increased solution sales with more third-party hardware than Airship AI software. Operating loss was $2.9 million for the quarter ended September 30, 2025, primarily due to increased investments in sales and marketing related expenditures, which should increase future sales. Other income for the quarter ended September 30, 2025, was $9.3 million, primarily due to a gain from a change in the fair value of earnout liability of $3.9 million and change in fair value of warrant liability of $5.3 million. Net income for the quarter ended September 30, 2025, was $6.4 million, or $0.20 per basic share, primarily related to noncash income of $8.8 million. Net cash used in operating activities was $0.6 million in the quarter ended September 30, 2025. Cash and cash equivalents were $5.8 million as of September 30, 2025. Subsequent to the quarter end, the Company raised approximately $9.7 million in aggregate gross proceeds from the exercise of existing warrants. Q3 2025 & Subsequent Operational Highlights Backlog as of September 30, 2025, was $11 million, representing firm fixed price contracts awarded in the third quarter of 2025 that will be shipped and invoiced through the remainder of calendar year 2025 and early 2026. Backlog is not indicative of future quarterly revenue as approximately 75% of quarterly revenue is transactional and recognized in the same quarter. Our total validated pipeline at the end of the quarter was approximately $166 million, consisting of single and multi-year opportunities for AI-driven edge, video, and sensor and data management platform across our customer verticals. Our pipeline includes opportunities at varying stages of progression with expected award timeframes over the next 18-24 months. Due to the sensitive nature of many of our customers and deployment use cases, we are often restricted from publicly disclosing awards and/or limited as to the specifics of the customer and use case. Consequently, most of our awards are executed on closed or restricted contract vehicles, which further limits the sharing of information that might otherwise be available. We continued to add to our sales team during the quarter as well as added to our development, quality assurance, and operational teams in support of existing and anticipated awards that will require additional resources and capabilities to fulfill. We participated in multiple customer-facing tradeshows during the quarter including new industry wide and vertically focused shows where we had a significantly increased level of participation and visibility as compared to historical participation. As part of our transition to a partner-driven sales model, we participated in several partner shows and events, including those sponsored by integrators and dealers and those by manufacturers of hardware sensors and solutions that we integrate with and manage for our customers. On October 8, 2025, the Company entered into warrant exercise inducement offer letter with the holder of its existing common stock warrants exercisable for an aggregate of 2,162,162 shares of its common stock to exercise its existing warrants at the existing exercise price of $4.50 per share in exchange for the Company’s agreement to issue new common stock warrants to purchase 2,702,702 shares of common stock at an exercise price per share of $6.20. The aggregate gross proceeds from the exercise of the existing warrants were approximately $9.7 million before deducting financial advisory fees. The Company intends to use the net proceeds from the exercise of the existing warrants for working capital and general corporate purposes. 2025 Outlook Make tactical and strategic investments across our sales and business development organizations through organic cash flow from business operations and the potential cash exercise of public warrants. Release new Outpost AI product offerings as well as expand custom trained AI models supporting emerging edge analytic workflows. Continue innovation across our core Acropolis software platform supporting new workflows for cloud-based deployments in highly secure operational environments. Develop and execute expansionary opportunities in the commercial and retail markets, particularly around those companies involved in combating organized retail crime. Improve sourcing, supply chain management, and production-based process efficiencies to help drive continued margin expansion. Focus on brand awareness and engagement in new verticals through targeted marketing outreach opportunities, social media platforms, Airship AI hosted technology events, and industry tradeshow events. Management Commentary “The third quarter of 2025 presented a number of challenges as recent changes in the federal acquisition process under the new administration, along with the government shutdown, slowed the pace of planned contracting activity, particularly within the Department of Homeland Security,” said Paul Allen, President of Airship AI. “Despite these headwinds, we closed approximately $11 million in new opportunities by the end of the quarter, most of which are scheduled to ship in the fourth quarter of 2025 and early 2026.” “As the government enters its new fiscal year we expect several opportunities that were delayed to move forward in the coming months with many forecasted for the government’s first fiscal quarter. In addition, with funding from the Big Beautiful Bill expected to flow down to agencies and components we have identified and added multiple new programs to our pipeline, further reinforcing our medium-term outlook.” “The legislation includes more than $70 billion over the next four years in supplemental funding for U.S. Customs and Border Protection (“CBP”), including $6.2 billion earmarked for border security technology. Notably, the bill highlights investments in artificial intelligence, machine learning, and other innovative technologies aimed at combating illicit trafficking. It also allocates approximately $46.6 billion for physical barriers, cameras, sensors, and related infrastructure as well as $5 billion for CBP facility upgrades, all areas where Airship AI’s technologies and solutions are well aligned.” “Encouragingly, our recent awards and our expanding pipeline feature our edge AI platform, Outpost AI, as a central component of proposed and deployed solutions. The awards received to date underscore our strategic evolution toward delivering fully integrated, turnkey systems that combine Outpost AI with our backend software and tailored implementation services, positioning us to pursue broader, higher-value opportunities.” “In the commercial market, we continue to see growing traction across multiple verticals. The shift to a partner-based go-to-market model is showing clear progress as demonstrated by ongoing pilots with several enterprise customers and continued success with flagship accounts. These initiatives leverage our proven approach from the federal sector with artificial intelligence remaining a key differentiator.” “Looking ahead, we remain disciplined in executing on our fiscal year objectives, including a return to positive operational cash flow. While the ongoing uncertainty surrounding federal funding and the government shutdown adds near-term complexity, we are encouraged by the momentum in our pipeline and the progress toward several large opportunities expected to advance this quarter. Taken together, these factors provide a foundation for optimism as we approach the end of calendar 2025,” concluded Mr. Allen. About Airship AI Holdings, Inc. Founded in 2006, Airship AI (NASDAQ: AISP) is a U.S. owned and operated technology company headquartered in Redmond, Washington. Airship AI is an AI-driven video, sensor and data management surveillance platform that improves public safety and operational efficiency for public sector and commercial customers by providing predictive analysis of events before they occur and meaningful intelligence to decision makers. Airship AI’s product suite includes Outpost AI edge hardware and software offerings, Acropolis enterprise management software stack, and Command family of visualization tools. For more information, visit https://airship.ai. Forward-Looking Statements The disclosure herein includes certain statements that are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “project,” “forecast,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters, but the absence of these words does not mean that a statement is not forward looking. These forward-looking statements include, but are not limited to, (1) statements regarding validated pipeline, estimates and forecasts of financial, performance and operational metrics and projections of market opportunity; (2) changes in the market for Airship AI’s services and technology, expansion plans and opportunities; (3) the projected technological developments of Airship AI; and (4) current and future potential commercial and customer relationships. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of Airship AI’s management and are not predictions of actual performance. These forward-looking statements are also subject to a number of risks and uncertainties, as set forth in the section entitled “Risk Factors” in its Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 28, 2025, and the other documents that the Company has filed, or will file, with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. In addition, forward looking statements reflect the Company’s expectations, plans or forecasts of future events and views as of the date of this press release. The Company anticipates that subsequent events and developments will cause its assessments to change. However, while it may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements. Investor Contact: Chris Tyson/Larry Holub MZ North America 949-491-8235 [email protected]

Second Quarter 2025 Net Revenues of $2.1 Million, Gross Profit of $1.5 Million and Gross Margin of 71% Significant Customer Engagement Activities Throughout the Quarter Provide Strong Tailwinds Heading into Government Fiscal Year End New Pro-U.S. Border Security Administration Provides Additional Macro Tailwinds for 2025 & Beyond REDMOND, Wash., Aug. 05, 2025 (GLOBE NEWSWIRE) -- Airship AI Holdings, Inc. (NASDAQ: AISP) (“Airship AI” or the “Company”), a leader in AI-driven video, sensor, and data management surveillance solutions, today reported its financial and operational results for the second quarter ended June 30, 2025. Q2 2025 Financial Highlights Net revenues for the quarter ended June 30, 2025, were $2.1 million. Gross profits for the quarter ended June 30, 2025, were $1.5 million. Gross margin percentage was 71% for the quarter ended June 30, 2025. Operating loss was $2.0 million for the quarter ended June 30, 2025 reflected in non-cash expenses of $0.5 million. The Company increased sales and marketing, research and development and technical support expenses which is expected to increase future sales. Other expense was $21.7 million for the quarter ended June 30, 2025, primarily due to a loss from the change in the fair value of earnout and warrant liabilities. The Company’s share price increased during the quarter ended June 30, 2025. Net cash used in operating activities was $3.9 million in the quarter ended June 30, 2025. Cash and cash equivalents was $6.3 million as of June 30, 2025. Q2 2025 & Subsequent Operational Highlights Our total validated pipeline at the end of the quarter was approximately $128 million, consisting of single and multi-year opportunities for AI-driven edge, video, and sensor and data management platform across all our customer verticals. Our pipeline includes opportunities at varying stages of progression with expected award timeframes throughout the next 18-24 months. Due to the sensitive nature of many of our customers and deployment use cases, we are often restricted from publicly disclosing awards and or limited as to the specifics of the customer and use case. Consequently, most of our awards are executed on closed or restricted contract vehicles, which further limits the sharing of information that might otherwise be available. We significantly grew our internal sales and sales engineering force, adding seasoned sales professionals with deep industry expertise, partner relationships, and customer knowledge that we expect will allow us to ramp up quickly. We participated in multiple customer facing tradeshows during the quarter including brand new industry wide and vertically focused shows where we had a significantly increased level of participation and visibility as compared to historical participation. As part of our transition to a partner driven sales model, we participated in several partner shows and events, including those sponsored by integrators and dealers, and those by manufacturers of hardware sensors and solutions that we integrate with and manage for our customers. On April 23, 2025, the Company entered into an At the Market Offering Agreement with Roth Capital Partners, LLC, as sales agent, pursuant to which we may, from time to time, offer and sell shares of our common stock up to a maximum of $25 million. The shares that may be issued pursuant to this offering is a part of a registration statement that the Company filed with the U.S. Securities and Exchange Commission (the “SEC”), using a “shelf” registration process. Under this shelf registration process, the Company may offer to sell any of the securities, or any combination of the securities, described in such prospectus, in each case, in one or more offerings, up to $50 million. Featured in Fox News Article. 2025 Outlook 30% revenue growth and positive cash flow expected for calendar year 2025 supported by a strong and validated pipeline of ~$128 million, improving gross profit margins, and a strong recurring revenue model. Make tactical and strategic investments across our sales and business development organizations through organic cash flow from business operations and the potential cash exercise of public warrants. Release new Outpost AI product offerings as well as expand custom-trained AI models supporting emerging edge analytic workflows. Continue innovation across our core Acropolis software platform supporting new workflows for cloud-based deployments in highly secure operational environments. Develop and execute expansionary opportunities in the commercial and retail markets, particularly around those companies involved in combating organized retail crime (“ORC”). Improve sourcing, supply chain management and production-based process efficiencies to help drive continued margin expansion. Focus on brand awareness and engagement in new verticals through targeted marketing outreach opportunities, social media platforms, Airship AI hosted technology events, and industry tradeshow events. Management Commentary “The second quarter of 2025 was incredibly busy with the Full-Year Continuing Appropriations and Extensions Act of 2025 being passed, as well as the passage of the Big Beautiful Bill (P.L. 119-21) (“BBB”), which provided substantial additional funding to federal agencies across the Department of Homeland Security and Department of Justice,” said Paul Allen, President of Airship AI. “With the full year continuing resolution approval and BBB passage, supported agencies were finally able to begin procurement activities in support of several critical efforts that Airship AI has been working on during the last twelve to eighteen months. “Included in the BBB was more than $70 billion over the next four years in supplemental funding for U.S. Customers and Border Protection (“CBP”), which includes $6.2 billion for border security technology, specifically calling out artificial intelligence, machine learning, and “other innovative technologies” to combat the trafficking of illicit substances. Also included was $46.55 billion for physical barriers along the southern and northern borders, which includes cameras, lights, sensors and more, as well $5 billion for the construction and improvement of CBP facilities, which includes new, enhanced, or upgraded video surveillance capabilities. “Based on the increased procurement activities we saw as we exited the second quarter, and the follow-on activities we have seen through the third quarter thus far, we are anticipating a very busy close to the September 30 of fiscal year end for our U.S. Government partnered federal agencies. "In the commercial segment, our strategic push into new market verticals, driven by partnerships with integrators and business collaborators, has continued to result in pipeline expansion beyond our traditional customer segments. Early wins around our AI driven differentiated physical security solution have led to further expansionary opportunities across retail, logistics, healthcare, and oil and gas customer verticals.” "With our AI digital transformation strategy fully underway, the efficiencies created are allowing us to roll out new models at the edge at an increasingly faster rate, while in parallel build out more advanced back-end AI tools to create efficiencies for our customers who are already overwhelmed with the sheer volume of video and associated data being collected. Most notably, our natural language generative AI based approach to interfacing with our software stack is creating significant interest as we change the way customers think about their data and how they best extract real-time information from it. “With these significant tailwinds in place, we expect to leave the third quarter with a significant backlog of awarded business. Due to our digital transformation efforts already underway, we believe we have the tools and processes in place that allow us to promptly execute to-be awarded business. Additionally, we have started to pre-order and position critical components that will be needed, as well as lock in deal registration through strategic partnership plans with our OEM vendors and sub-contractors. We believe these preparatory actions will allow us to best execute in a timely manner against urgent customer requirements as we head into the fourth quarter,” concluded Mr. Allen. About Airship AI Holdings, Inc. Founded in 2006, Airship AI (NASDAQ: AISP) is a U.S. owned and operated technology company headquartered in Redmond, Washington. Airship AI is an AI-driven video, sensor and data management surveillance platform that improves public safety and operational efficiency for public sector and commercial customers by providing predictive analysis of events before they occur and meaningful intelligence to decision makers. Airship AI’s product suite includes Outpost AI edge hardware and software offerings, Acropolis enterprise management software stack, and Command family of visualization tools. For more information, visit https://airship.ai. Forward-Looking Statements The disclosure herein includes certain statements that are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “project,” “forecast,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters, but the absence of these words does not mean that a statement is not forward looking. These forward-looking statements include, but are not limited to, (1) statements regarding estimates and forecasts of financial, performance and operational metrics and projections of market opportunity; (2) changes in the market for Airship AI’s services and technology, expansion plans and opportunities; (3) the projected technological developments of Airship AI; and (4) current and future potential commercial and customer relationships. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of Airship AI’s management and are not predictions of actual performance. These forward-looking statements are also subject to a number of risks and uncertainties, as set forth in the section entitled “Risk Factors” in its Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 28, 2025, and the other documents that the Company has filed, or will file, with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. In addition, forward looking statements reflect the Company’s expectations, plans or forecasts of future events and views as of the date of this press release. The Company anticipates that subsequent events and developments will cause its assessments to change. However, while it may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements. Investor Contact: Chris Tyson/Larry Holub MZ North America 949-491-8235 [email protected]

First Quarter 2025 Net Revenues of $5.5 Million, Gross Profit of $2.2 Million and Gross Margin of 40% Increased Investments In Our People And Digital Transformation Will Enable Us To Stay Resilient and Ready In A Rapidly Changing Marketplace New Pro-U.S. Border Security Administration Provides Additional Macro Tailwinds for 2025 & Beyond REDMOND, Wash., May 15, 2025 (GLOBE NEWSWIRE) -- Airship AI Holdings, Inc. (NASDAQ: AISP) (“Airship AI” or the “Company”), a leader in AI-driven video, sensor, and data management surveillance solutions, today reported its financial and operational results for the first quarter ended March 31, 2025. Q1 2025 Financial Highlights Net revenues for the quarter ended March 31, 2025 were $5.5 million. Gross profits for the quarter ended March 31, 2025 were $2.2 million. Gross margin percentage was 40% for the quarter ended March 31, 2025. The margins reflected increased solution sales with more third-party hardware than Airship AI software. Operating loss was $1.7 million for the quarter ended March 31, 2025 reflected in increased stock based compensation and increased investments in sales and marketing related expenditures which should increase future sales. Other income for the quarter ended March 31, 2025 was $25.4 million, primarily due to a gain from a change in the fair value of earnout liability of $9.8 million, and a change in fair value of warrant liability of $15.5 million. Net income for the quarter ended March 31, 2025 was $23.7 million, or $0.75 per basic share, primarily related to noncash income of $25.4 million. Net cash used in operating activities was $2.1 million in the quarter ended March 31, 2025. Cash and cash equivalents were $8.8 million as of March 31, 2025. Q1 2025 & Subsequent Operational Highlights Backlog as of March 31, 2025 was $2.0 million, representing firm fixed price contracts awarded in the fourth quarter of 2024 or first quarter of 2025 that will be shipped and invoiced through the remainder of calendar year 2025. Backlog is not indicative of future quarterly revenue as approximately 75% of quarterly revenue is transactional and recognized in the same quarter. Our total validated pipeline at the end of the quarter was approximately $135 million, consisting of single and multi-year opportunities for AI-driven edge, video, and sensor and data management platform across all our customer verticals. Our pipeline includes opportunities at varying stages of progression with expected award timeframes throughout the next 18-24 months. Due to the sensitive nature of many of our customers and deployment use cases, we are often restricted from publicly disclosing awards and or limited as to the specifics of the customer and use case. Consequently, most of our awards are executed on closed or restricted contract vehicles which further limits the sharing of information that might be otherwise available. We grew our internal sales and sales engineering force, adding seasoned sales professionals with deep industry expertise, partner relationships, and customer knowledge that will allow us to ramp up quickly. We participated in multiple customer facing tradeshows during the quarter including brand new industry wide and vertically focused shows where we had a significantly increased level of participation and or visibility as compared to historical participation. As part of our transition to a partner driven sales model, we participated in several partner shows and events, including those sponsored by integrators and dealers, and those by manufacturers of hardware sensors and or solutions that we integrate with and manage for our customers. We hosted our invite only government focused customer event outside Austin, TX, demonstrating and training on the latest in Airship AI developed and or supported solutions. This year’s focus was on solutions supporting challenges along the southern border and was well attended by agencies across the federal government. On April 23, 2025, we entered into an At the Market Offering Agreement with Roth Capital Partners, LLC, as sales agent, pursuant to which we may, from time to time, offer and sell shares of our common stock up to a maximum of $25 million, which shares are registered on a registration statement that we filed with the U.S. Securities and Exchange Commission (the “SEC”), using a “shelf” registration process. Under this shelf registration process, we may offer to sell any of the securities, or any combination of the securities, described in this prospectus, in each case, in one or more offerings, up to $50 million. On March 21, 2025, our shelf registration statement on Form S-3 for the sale of up to $50 million of our securities was declared effective by the SEC. 2025 Outlook 30% revenue growth and positive cash flow for calendar year 2025 supported by a strong and validated pipeline of ~$135 million, improving gross profit margins, and a strong recurring revenue model. Make tactical and strategic investments across our sales and business development organizations through organic cash flow from business operations and the potential cash exercise of public warrants. Release new Outpost AI product offerings as well as expand custom trained AI models supporting emerging edge analytic workflows. Continue innovation across our core Acropolis software platform supporting new workflows for cloud-based deployments in highly secure operational environments. Develop and execute expansionary opportunities in the commercial and retail markets, particularly around those companies involved in combating organized retail crime. Improve sourcing, supply chain management and production-based process efficiencies to help drive continued margin expansion. Focus on brand awareness and engagement in new verticals through targeted marketing outreach opportunities, social media platforms, Airship AI hosted technology events, and industry tradeshow events. Management Commentary “The first quarter of 2025 was largely overshadowed by the actions of the new administration as they worked to finalize the approval and release of budgets and special appropriations,” said Paul Allen, President of Airship AI. “In the face of these headwinds, our team was able to generate solid revenues for the quarter of $5.5 million at a gross margin percentage of 40%, while increasing our investments in our people and customers. “As we worked to successfully execute awarded contracts in our current backlog, we dedicated significant time and resources to advancing pipeline opportunities. These efforts are positioning us to move quickly once budgets are approved and released. Based on current forecasts, we anticipate meaningful activity beginning mid-second quarter, with continued growth expected through the end of Q2 and into Q3. "Simultaneously, many of our federal customers are projecting increased funding through supplemental appropriations. This has initiated a wave of market research discussions focused on potential solutions to address emerging mission needs. We anticipate that many of these conversations will evolve into tangible opportunities extending across the current and upcoming fiscal years. "In the commercial segment, our strategic push into new market verticals, driven by partnerships with integrators and business collaborators, has been met with strong interest. Several early wins confirm both the market’s appetite for differentiated solutions and the soundness of our strategic investment in people and partners. This validation further supports continued investment to build on our momentum and drive sustained growth. "These collected efforts have also affirmed that we are on the right track with our digital transformation strategy, focused squarely on how AI at the far and near edge can solve for our customers’ existing and emerging threats in the public safety and security space. Building on our existing investments in the AI Factory, we expect to launch several new products in 2025, including advanced computer vision analytics powered by machine learning and a Generative AI application that will transform how customers access and interact with their data. “Finally, amid broader macroeconomic conditions, we are closely monitoring tariff developments. As a U.S.-based software company, we do not expect these tariffs to significantly impact our core business. In areas where we provide hardware solutions, such as our Outpost AI edge appliance, we work proactively with global suppliers to maintain optimal inventory levels. This approach helps us manage costs effectively and ensure timely, competitively priced delivery of our products and services. “The combination of our strong existing pipeline focused on leveraging existing budgets, increased business development opportunities leveraging supplemental appropriations, and the investments in people and customers already made leaves us confident in our ability to execute against our stated objectives of 30% YoY revenue growth and achieving cash flow positive operations,” concluded Mr. Allen. About Airship AI Holdings, Inc. Founded in 2006, Airship AI (NASDAQ: AISP) is a U.S. owned and operated technology company headquartered in Redmond, Washington. Airship AI is an AI-driven video, sensor and data management surveillance platform that improves public safety and operational efficiency for public sector and commercial customers by providing predictive analysis of events before they occur and meaningful intelligence to decision makers. Airship AI’s product suite includes Outpost AI edge hardware and software offerings, Acropolis enterprise management software stack, and Command family of visualization tools. For more information, visit https://airship.ai. Forward-Looking Statements The disclosure herein includes certain statements that are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “project,” “forecast,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters, but the absence of these words does not mean that a statement is not forward looking. These forward-looking statements include, but are not limited to, (1) statements regarding estimates and forecasts of financial, performance and operational metrics and projections of market opportunity; (2) changes in the market for Airship AI’s services and technology, expansion plans and opportunities; (3) the projected technological developments of Airship AI; and (4) current and future potential commercial and customer relationships. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of Airship AI’s management and are not predictions of actual performance. These forward-looking statements are also subject to a number of risks and uncertainties, as set forth in the section entitled “Risk Factors” in its Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 28, 2025, and the other documents that the Company has filed, or will file, with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. In addition, forward looking statements reflect the Company’s expectations, plans or forecasts of future events and views as of the date of this press release. The Company anticipates that subsequent events and developments will cause its assessments to change. However, while it may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements. Investor Contact: Chris Tyson/Larry HolubMZ North [email protected]