SWMR

Image source: The Motley Fool. Thursday, Aug. 13, 2026 at 4:30 p.m. ET President and U.S. CEO - Alex Fink Chief Financial Officer - Brooks Ensign Operator: Good afternoon. Welcome to the Swarmer, Inc. Second Quarter 2026 Earnings Conference Call. Joining us for today's presentation are the company's President and U.S. CEO, Alex Fink; and Chief Financial Officer, Brooks Ensign. [Operator Instructions] Before we begin, I want to remind everyone that today's call will include forward-looking statements within the meaning of the federal securities laws. These statements include, among others, statements regarding Swarmer strategy, market opportunity, customer engagement, product development, technology integrations, expansion into new markets, future revenue opportunities, expected customer mix, potential deployments and the anticipated benefits of the company's relationships, memorandum of understanding, partnerships and commercial initiatives. Forward-looking statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. Additional information about factors that could cause actual results to differ is included in the company's earnings release issued today and in the company's filings with the Securities and Exchange Commission including the risk factors described in those filings. The company undertakes no obligation to update forward-looking statements, except as required by law. Finally, I would like to remind everyone that this conference call is being webcasted, and the recording will be made available for replay on the company's Investor Relations website. In addition to the webcast, the company has posted a press release that accompanies these results which can also be found on the Investor Relations website. I will now turn the call over to Swarmer's President and U.S. CEO, Alex Fink, for his comments. Sir, please proceed. Alexander Fink: Thank you, operator, and thank you, everyone, for joining us. The second quarter of 2026 marked our first full quarter as a public company and an important period of progress across the business. We successfully expanded our customer base, advanced deployments across multiple unmanned platforms and continued investing in the people, technology and partnerships that we believe will support our next phase of growth. From a broader perspective, our investment thesis remains unchanged. We continue to believe the defense and security industries are in the early stages of a fundamental transition towards autonomous and collaborative systems. Millions of drones are expected to be produced annually. Yet the challenge is no longer simply manufacturing hardware. The challenge is coordinating, controlling and scaling large numbers of autonomous platforms operating in complex environments. That is the problem Swarmer was built to solve. Our software serves as the intelligence layer that enables one operator to coordinate large numbers of autonomous systems in the real time. Because we are platform-agnostic, our objective is not to build a drone. Our objective is to become the software layer that powers autonomous systems across air, land and maritime domains. What makes our platform unique is that it continues to learn from real-world operations. Since April of 2024, Swarmer technology has supported more than 100,000 combat missions in Ukraine. Those missions generate telemetry, sensor information and operational feedback that allows us to refine performance and improve our AI and autonomy capabilities over time. We believe this real-world data advantage is difficult to replicate and serves as a meaningful differentiator as autonomy becomes increasingly important. During the quarter, we continued to make progress in implementing this strategy. Perhaps the most visible example was the expansion of our SkyKnight program. As announced during the quarter, our customer expanded the original agreement adding approximately $1 million of contracted license value, increasing the potential value of the combined contract to approximately $14.2 million if all options are exercised. Importantly, SkyKnight is not one of the largest drone manufacturers operating in Ukraine today. By our estimates, there are 20 or more drone companies in Ukraine alone who are currently shipping higher volumes than SkyKnight and yet the single opportunity accounted for a contract of $3.9 million that could grow to $14.2 million if all options are exercised. We believe that this fact highlights the size of the opportunity in front of us. If a manufacturer of this scale can generate a software opportunity of this magnitude, we believe there are many additional manufacturers and platforms that could represent meaningful future opportunities as autonomy adoption continues to increase. Before moving on, I'd like to briefly address the accounting treatment of the expanded SkyKnight program as it impacted our reported revenue for the quarter. As disclosed in today's earnings release, we received $1.4 million during the quarter under the SkyKnight program, upon delivery of the software licenses to the customers. However, under the applicable accounting treatment, some of these amounts were not recognized as revenue and were instead recorded as an advance on our balance sheet. Importantly, this accounting treatment does not change the underlying commercial significance of the program. The licenses were delivered and the wire transfer was received. We continue to believe that SkyKnight demonstrates a scalable model that can be replicated across additional manufacturers and platforms, creating future opportunities for software licensing revenue as adoption of autonomy continues to expand. Beyond individual customer wins, we continue to strengthen the ecosystem around our platform, which we believe is a key driver of long-term adoption and growth. Each relationship addresses a different part of the value chain, whether that's computing hardware, data acquisition, interoperability, platform integration or operational deployment. For example, our partnership with Oak Grove Technologies demonstrate successful integration of Swarmer software on a proven U.S. platform from a company-based near Fort Bragg that is deeply embedded in the special operations community. Oak Grove is also well known as a training facility and provides courses to operators on things like drone use. So a partnership with them helped us cover the awareness layer and ensuring that operators are exposed to the existence of Swarmer's advanced autonomy and the possibilities it brings. Our collaboration with Lantronix is aimed at creating a next-generation compute platform for small unmanned systems. Most unmanned systems in Ukraine, if they require any level of autonomy use either Raspberry Pi on the low end or NVIDIA Jetson on the high end. There is no good option in between. We see an opportunity to create a wedge in the market by owning the compute platform that could become the industry standard for autonomous drones and by ensuring that everyone who uses this platform for their compute needs will also get Swarmer's operating system built in, and we'll be able to upgrade to full autonomy at the click of a button. Our cooperation with Molfar gives us access to a large database of open source intelligence data that can be used to improve our models and our cooperation with Brightline, which has already been in use by the special operations community in the U.S. allows us to gain access to operational data from a variety of unmanned platforms, even if the manufacturers of these platforms did not choose to integrate with us yet. We believe there is a data flywheel of success. Companies that get deployed more, gather more data, use this data to train better models and therefore, get deployed more because their models work better. We are already benefiting from this flywheel. But now with these additional sources of high-quality data, we can move even faster and train our models on data gathered by others too. Collectively, these relationships expand the reach of our software, increase the number of platforms we can support and create additional opportunities to scale adoption over time. We believe this ecosystem approach positions Swarmer to participate in a much larger portion of the autonomous systems market than would be possible through any single platform or program alone. While partnerships remain an important part of our growth strategy, we are also increasingly evaluating opportunities to invest and acquire and help scale complementary defense technologies that have been proven in real-world operational environments. As our Chairman, Erik Prince recently discussed in a Shareholder Letter, many of the most innovative defense companies in the world are being built under demanding battlefield conditions, yet often lack capital, commercial infrastructure, and international reach needed to scale globally. We believe access to capital, strategic support and distribution channels can be just as valuable as the technology itself. Our objective is not simply to expand Swarmer software footprint but to build a broader platform that helps identify, accelerate and commercialize proven defense technologies while creating long-term value for shareholders. Last but not least, as you'll hear from Brooks in a few minutes, we have raised over $26 million through our equity line of credit since it was announced. From a practical standpoint, we believe these additional resources may help us to explore opportunities and move faster when they arise. In accordance with the vision articulated by our Chairman, Erik Prince, in his letter to shareholders this quarter. Conceptually, we also believe it shows that investors are receptive to Erik's vision, and it has been well received. Operationally, we also continued building the company. During the quarter, we expanded our engineering and product capabilities, increased integrations across partner platforms and continue deploying systems with multiple manufacturers operating in active environments. As we discussed last quarter, revenue is often a lagging indicator in our industry because defense procurement cycles are lengthy, and deployments frequently precede scaled production. As a result, we continue to focus on indicators such as platform integrations, customer adoption, deployment success and progression from evaluation to production. We believe we are making meaningful progress on each of these fronts. Looking ahead, we remain focused on expanding adoption across a wider range of unmanned systems, deepening our integration with manufacturers, supporting programs as they transition into scale deployment and evaluating strategic opportunities that can accelerate growth and strengthen our position within the autonomous systems ecosystem. We continue to believe Swarmer can become a foundational software layer for autonomous and collaborative systems across multiple domains. With that, I will turn it over to Brooks to walk through the financials in more detail. Brooks Ensign: Thank you, Alex. Revenue for the second quarter of 2026 was approximately $216,000 compared to $138,000 in the second quarter of 2025. Alex discussed, we received $1.4 million under the SkyKnight program in the quarter upon delivery of the software licenses to the customers. However, under the applicable accounting treatment, approximately $200,000 was recognized as revenue, $100,000 was recorded as deferred revenue and the remainder was recorded as an advance on the balance sheet. As a result, the financial statements reflect minimal revenue from the deal. Despite this accounting presentation, the underlying contract value remains unchanged with the SkyKnight program representing approximately $3.9 million of contracted license value and up to approximately $14.2 million if all available options are exercised. We continue to view the program as an important commercial validation of our technology and a meaningful long-term opportunity. It is also worth noting that cash usage included a separate onetime contractual prepayment of approximately $2.2 million related to the program. Gross profit for the quarter was approximately $184,000 compared to $82,000 in the prior year period. The change primarily reflected the lower level of recognized revenue during the quarter as a result of the accounting treatment of the SkyKnight program. Operating expenses were approximately $7.5 million compared to approximately $855,000 in the second quarter of 2025. The increase was driven primarily by investments in personnel, engineering and product development, together with higher consulting, legal and professional services expenses associated with operating as a public company. Second quarter operating expenses also included onetime equipment purchases that are unlikely to recur in most quarters. Additionally, our operating expenses for the quarter included $1.2 million of noncash stock compensation expense. As investors evaluate our financial performance, we believe it is important to distinguish these onetime and noncash expenses from the cash costs required to operate and scale the business. Net loss for the quarter was approximately $7.2 million compared to a net loss of approximately $1.6 million in the prior year period. Turning to the balance sheet. Cash and cash equivalents at June 30, 2026, totaled approximately $25.3 million compared to $9.3 million at December 31, 2025. During the quarter, the company raised approximately $8.8 million through its equity line of credit program. Subsequent to quarter end through August 10, we collected an additional $17.9 million, further strengthening our liquidity position and supporting continued investment in growth initiatives. We remain committed to managing capital responsibly while investing in opportunities that we believe can generate long-term shareholder value. And with that, I'll turn the call over to the operator for questions. Operator? Operator: [Operator Instructions] Our first question comes from Alex Fuhrman with Lucid Capital Markets. Alex Fuhrman: Congratulations on a lot of your recent announcements and the progress you're making here. I wanted to ask about your gross margins. Obviously, these are really small numbers, what we've seen so far this year, but gross margin in Q2 was up pretty dramatically from what we saw in Q1 and what we saw last year. Can you talk a little bit about the mechanics of what's in cost of sales and why the gross margin was so high in Q2? And then just bigger picture, as you start to move into the millions of dollars of revenue where should we start to see gross margins shake out as volumes pick up? Brooks Ensign: Yes. This is Brooks. Thanks, Alex, for the question. Currently in cost of goods is a web-based data services only. We are assessing future will have some engineering services. So I would say going forward, the cost of goods as a percentage will be a little bit higher. And we're working on our methodology for this. Right now, it's customized for each deal. So in the future -- go ahead. Alex Fuhrman: Okay. That's helpful. I don't know if you have more on that? Brooks Ensign: We're looking at probably around 80% or so. But yes, we're still looking at what types of engineering support will go into revenue deals. Alex Fuhrman: Okay. That's really helpful. And then if I could ask on the expanded licensing deal with SkyKnight. I think the original announcement was an initial contract value of around $3 million and the potential to scale up to around $13 million if all the options were exercised. Now we're talking about bigger numbers with the expansion of the contract and the addition of the Czech Republic. Can you just help us understand was the expansion that you just announced here recently, is that a matter of SkyKnight exercising an option that it had prior? Or is this something kind of beyond the scope of the initial announcement? And if it was beyond the scope related to the additional geography, are there still more geographies where this contract could get expanded to? Alexander Fink: Thank you for that question as well, it is beyond the scope of the original agreement. SkyKnight or Meta as the company is called has 2 types of drones. One is a large heavy quadcopter and the other one is a fixed-wing. So the initial deal included some licenses for quadcopters, some licenses for fixed-wing drones and it included operating system licenses for everything SkyKnight plans to manufacture going forward, which allows them to easily upgrade to the full platform, and that is the option. So the option is basically every time they have a drone that only has the operating system on it without autonomy at the click of a button, they can upgrade to full autonomy. Now what happened about 1.5 months later, is they increased their projected quantity of the fixed-wing drones. And so they acquired more autonomy licenses for that but that does not affect the option. They still have an option for the same quantity of drones to be upgraded from operating system to full platform. Operator: We will take our final question from Alex Latimore with Northland. Alexander Latimore: Can you hear me? Alexander Fink: Yes, we can. Alexander Latimore: Awesome. I'm glad to see everything is moving in the right direction. I had a question regarding the work with Powerus. I wonder if you could just give us an update on how things are moving on that front? And I was curious if you had any visibility into converting that MoU with Powerus into a full contract? Alexander Fink: I can't really comment on future plans. Those will be announced when it's time. I can state that the MOU was announcing our plans to integrate our software into several of their platforms, and that work begun and it's ongoing. So as soon as those platforms are ready to scale and they have buyers for them, we will have an announcement. But obviously, that is not guaranteed. So when it's time, then we will definitely announce it. Alexander Latimore: Understood. And maybe one follow-up there. How long does it take to integrate to a new manufacturer's drone such as Powerus? Alexander Fink: It depends on the platform and how similar it is to hardware that we've worked before. So if there is a platform that is very similar to something that we've launched before, let's say, a 10-inch, first-person view small drone, then that is a fairly quick process between 2 and 4 weeks, including field testing. If it is a very unusual or a different platform of the kind that we haven't encountered before, it could be several months. But it's worth noting, integration is something that we need to do. But then once it's integrated, the customer often has to go and actually sell the platform, right? And we will only receive revenue when there are buyers for the final integrated product from the end users who are typically government actors. So in some cases, the delay is not because the integration has not done. In some cases, the delay is the acquisition cycle that our customers have to go through to actually get their products to be acquired by governments at scale. Alexander Latimore: Understood. That's good color there. One final quick one here. Do you have any acquisition interest going forward? Alexander Fink: Well, our Chairman stated in a letter that we are definitely looking at opportunities in the market. So you could guess that we are likely following through on that promise, but I cannot announce anything at this time. Operator: At this time, this concludes our question-and-answer session. If you have any additional questions, you may contact Swarmer's Investor Relations team at [email protected]. I'd now like to turn the call back over to Mr. Fink for his closing remarks. Alexander Fink: Thanks again, everyone, for joining us today. As a reminder, you can find out more about our company, receive additional updates and learn about upcoming events from the Investor Relations section of our website. We look forward to updating you on exciting progress we are making in the defense technology market. Finally, I'd like to thank our employees, partners and shareholders for their continued support. Operator? Operator: Thank you for joining us today for Swarmer, Inc. Second Quarter 2026 Earnings Conference Call. You may now disconnect. Before you buy stock in Swarmer, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Swarmer wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $432,621!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,314!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. 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Download the Complete Report Here Key Takeaways: Revenue accelerated sharply from 1Q26, with SkyKnight license delivery and cash collection providing a better indication of underlying commercial progress than reported revenue alone. SWMR reported 2Q26 revenue of $216,413, up 56.6% y/y from $138,206 and more than 10x the $20,325 reported in 1Q26. The company invoiced approximately $1.5 million under the SkyKnight program and collected $1.4 million following license delivery, while only approximately $0.2 million was recognized as revenue, $0.1 million was deferred and the remaining amount was recorded as an advance. Certain deployment, integration and market-development payments associated with the program also reduced recognized revenue under the combined arrangement, creating a meaningful gap between commercial activity and revenue in the quarter. SkyKnight remains the clearest validation of SWMR’s licensing model, with contracted value expanding approximately 34% only weeks after the initial award without consuming the original upgrade optionality. The program’s contracted license value increased from approximately $2.9 million to $3.9 million after Meta Bureau increased projected production of its fixed-wing platform, while existing operating-system-to-full-autonomy upgrade options remain intact and could still lift the combined arrangement to approximately $14.2 million. Importantly, the approximately $1.0 million incremental award was outside the scope of the initial option structure rather than an exercise of previously disclosed upgrades. The original arrangement covered full-autonomy licenses across SkyKnight’s quadcopter and fixed-wing platforms together with operating-system licenses on planned production that can subsequently be upgraded to SWMR’s full platform. This structure gives SWMR two potential monetization layers as partner volumes grow: additional autonomy licenses as manufacturers increase production and higher-value software attach when OS-only units are upgraded over time. Oak Grove extends SWMR’s commercialization funnel beyond OEM integration into operator training and U.S. defense-channel exposure. SWMR’s relationship with Oak Grove Technologies integrates its autonomy software with the Chimera UAV platform, making Oak Grove the first U.S.-based company to integrate Swarmer’s autonomous software into its platform. Integration, testing and operational fielding were completed in late 2025 in Eastern Europe across ~100 test flights spanning varied weather and mission profiles, providing additional validation of the technology on a U.S. platform. Following the initial integration effort, the integrated Chimera systems remained overseas through early 2026 to support continued testing, operator evaluation and training before returning to Oak Grove’s U.S. headquarters for incorporation of operational feedback into future mission and training requirements. The partnership also benefits from Oak Grove’s established training and operational support activities with the U.S. special operations community, giving operators hands-on exposure to autonomous systems under realistic conditions and broadening SWMR’s customer-acquisition channel beyond direct OEM engagement. Combined with SWMR’s 100,000+ combat missions in Ukraine, the relationship provides a potential bridge between battlefield-proven autonomy and U.S. operator adoption, with the key commercial proof point remaining conversion of testing and training activity into funded defense programs. Lantronix creates a potentially scalable distribution wedge by embedding SWMR’s operating system at the compute layer rather than requiring software adoption after a drone is already designed. The collaboration is developing an NDAA-compliant compute platform for Group 1 unmanned systems with more than 400% greater onboard processing capability, targeting what SWMR sees as an underserved performance gap between lower-end Raspberry Pi systems and higher-end NVIDIA Jetson solutions commonly used for autonomy. With more than seven million drones projected to be manufactured this year, an embedded compute-layer position could provide SWMR with a scalable route into a substantially larger installed base. Strategically, the opportunity is larger than hardware integration alone: SWMR intends for its operating system to be embedded on the compute platform, allowing customers to upgrade to full autonomy through software rather than completing a separate integration. If adopted broadly, that architecture could shift customer acquisition earlier in the OEM design cycle, increase the installed base of upgradeable SWMR-enabled platforms, and create a lower-friction OS-to-full-stack monetization path. It also preserves the software-led business model because SWMR’s primary economics would remain tied to software penetration and upgrades rather than manufacturing the unmanned system itself. Brightline and Molfar expand the combat-data flywheel beyond platforms already running SWMR software, potentially accelerating AI development without waiting for every OEM integration to scale. SWMR continues to cite more than 100,000 real-world combat missions as a core source of telemetry, sensor information and operational feedback, but the new relationships broaden the available training dataset. Brightline provides access to operational data across unmanned platforms already used within the U.S. special operations community, including platforms whose manufacturers have not yet integrated SWMR, while Molfar contributes verified open-source and battlefield intelligence datasets to the AI training pipeline. The strategic implication is that model development can increasingly benefit from third-party operating data rather than only the installed SWMR fleet. This could broaden the range of mission profiles and operating conditions available for model training, strengthening the feedback loop between data capture, model improvement and subsequent deployment as the platform scales. Powerus illustrates both the scalability of SWMR’s integration model and why revenue can remain a lagging indicator even after technical work is complete. Integration work under the Powerus MOU has begun across several air and maritime platforms, with integration on familiar hardware configurations potentially requiring only 2-4 weeks including field testing, while substantially different platforms can require several months. More importantly, software integration does not itself trigger meaningful revenue. Once integration is completed, the manufacturer must still secure buyers for the finished platform, which are typically government customers operating through longer acquisition cycles. This creates a multi-stage funnel from MOU to integration, field testing, OEM production, government procurement and finally software revenue recognition. The relatively short 2-4 week integration period for familiar platforms indicates the technical layer can scale efficiently, but end-customer procurement remains the principal gating factor between integration progress and recognized revenue. The partnership strategy is broadening beyond defense deployments into dual-use autonomy applications, expanding SWMR’s addressable market without changing the core software architecture. In addition to Oak Grove, Lantronix, Brightline, Molfar and Powerus, SWMR is working with Tekmara and Florida International University to evaluate autonomous drone swarms for environmental monitoring and coastal restoration applications. These initiatives broaden the addressable use case beyond kinetic operations while leveraging the same multi-vehicle coordination architecture developed through more than 100,000 combat missions. The Tekmara/FIU initiative will evaluate coordinated autonomous operations across air, surface and underwater domains, using FIU’s Aquarius Reef Base as a real-world testing environment for persistent environmental monitoring and restoration. This supports SWMR’s broader dual-use strategy, with potential applications across environmental restoration, disaster relief, wildfire detection, search and rescue and other public-sector missions. Commercially, however, the initiatives remain at different stages of maturity, and the quarter did not disclose material revenue from these newer programs. We therefore view these programs as incremental extensions of the platform and customer funnel, with greater strategic relevance as they progress toward funded deployments and repeat licensing. Post-quarter leadership changes consolidate executive responsibility under Alex Fink while strengthening SWMR’s communications and market-development capabilities. Effective July 2026, Serhii Kupriienko resigned as Global CEO while remaining on SWMR’s Board, and President and U.S. CEO Alex Fink assumed the role of principal executive officer reporting directly to the Board. SWMR does not intend to appoint a successor Global CEO, streamlining the prior dual-CEO structure as the company scales commercialization and strategic execution. Separately, Swarmer promoted Garrett Kasper to Chief Communications Officer, bringing 30 years of experience across defense, aerospace, intelligence and cybersecurity, including prior work at L3Harris Technologies on the VAMPIRE counter-UAS program. In the expanded role, he will oversee global marketing, branding and corporate communications, supporting customer awareness and market development across U.S. and allied defense channels. SWMR expects gross margins to remain attractive as revenue scales, although they may moderate as engineering services are incorporated into customer contracts. 2Q26 gross margin increased to 84.8% from 59.4% y/y, providing early evidence of the high-margin economics embedded in the licensing model. Currently, cost of sales primarily consists of web-based data services, resulting in relatively low direct costs. As the company scales, engineering support is expected to increase COGS as a percentage of revenue, with management currently targeting approximately 80% gross margins, although the methodology remains under development and may vary by deal. While the current revenue base remains small, sustaining margins near this level as licensing scales would be an important driver of the operating leverage embedded in the 2027E profitability outlook. Operating expenses increased sharply as SWMR scaled its operations and transitioned to a public-company cost structure. 2Q operating expenses rose to $7.5 million from $0.9 million y/y, driven primarily by higher personnel, engineering and product-development costs, as well as increased legal, consulting and professional expenses. SG&A increased to $5.7 million from $0.3 million y/y, while R&D rose to $1.8 million from $0.6 million, reflecting investment ahead of the expected licensing ramp. The quarter also included one-time equipment purchases and $1.2 million of non-cash stock compensation, meaning reported expenses were partly elevated by non-recurring and non-cash items. The key forward consideration is whether software revenue can begin scaling across this expanded cost base, rather than requiring a meaningful reduction in investment to reach profitability. Capital formation is providing SWMR with greater flexibility to fund growth and pursue strategic opportunities as it expands beyond its core autonomy software offering. Cash and equivalents increased to $25.3 million at June 30 from $9.3 million at December 31, supported by IPO proceeds and equity financing, with a further $17.9 million raised through August 10, taking cumulative ELOC proceeds above $26 million. The stronger liquidity supports continued investment in engineering and platform integration while giving SWMR capacity to invest in or acquire complementary defense technologies and potentially broaden its value capture beyond software licensing. This aligns with the broader strategic vision recently articulated by Chairman Erik Prince around identifying and scaling battlefield-proven defense technologies that may lack capital, commercial infrastructure or international distribution. However, the strategy remains subject to acquisition execution risk and shareholder dilution from equity-funded capital deployment. Street estimates embed a hockey-stick revenue ramp as SWMR moves toward scaled license activation. Street estimates sourced from TIKR suggest revenue of $4.24 million in 2026E before rising to $25.0 million in 2027E and $40.0 million in 2028E, with EBITDA margin inflecting to 17.8% in 2027E and 28.3% by 2028E. With 2Q26 revenue of $0.2 million despite $1.4 million received from SkyKnight, the key focus now shifts to whether deferred/advance amounts and the broader partnership pipeline convert into recognized revenue in 2H26 and beyond, with SkyKnight recognition, OS-to-full-autonomy upgrades and additional OEM production providing the clearest paths to the expected 2027E step-up. Disclaimer: Exec Edge does not publish proprietary estimates, ratings, price targets, or investment recommendations. The valuation discussion below is illustrative only and is based on company filings, management commentary, and third-party data and estimates. It does not constitute a recommendation, price target, rating, or prediction of future pricing. SWMR trades at a clear premium to broader public-market peers, but we believe that premium is defensible given its combat-validated software model, hardware-agnostic architecture and higher-margin licensing potential. SWMR currently trades at approximately 22x 2027E sales, reflecting its early commercialization stage and significant operating investment. However, the valuation also reflects SWMR’s positioning as a combat-validated, platform-agnostic autonomy software provider rather than a traditional defense hardware or drone manufacturer, with the company increasingly expanding its ecosystem through OEM integrations, compute partnerships, operational data relationships and potential strategic acquisitions. The multiple declines to 14x based on 2028E sales (source: TIKR), highlighting the meaningful forward valuation compression as the expected software-license ramp scales. In our view, further support for the current premium will depend on converting SkyKnight, Powerus, Lantronix and other integrations into scaled deployments, recurring software revenue and improving profitability. SWMR’s premium to public drone peers is notable, but defensible given its hardware-agnostic software model, combat validation and stronger margin potential. Relative to the broader listed comp set, SWMR’s higher multiple reflects a business model with less hardware intensity, greater software attach potential and a path toward materially higher gross margins as licensing scales, while sustained relative outperformance will depend on converting integrations and license deployments into recurring revenue and positive EBITDA. Street positioning also remains constructive, with a consensus price reference of approximately $60 providing an additional external valuation benchmark. Private-market defense-autonomy valuations also support premium forward revenue multiples for differentiated platforms. A recent Financial Times report indicates Helsing was valued at approximately 32x forecast 2026 revenue, Shield AI at approximately 21x revenue, and Anduril at approximately 13x forward revenue. Against this range, SWMR’s approximately 22x 2027E sales multiple sits within the premium private-market autonomy range. While differences in scale, maturity, valuation period and hardware exposure limit direct comparability, SWMR’s hardware-agnostic architecture, 100,000+ combat missions and high-margin licensing model provide a defensible basis for premium positioning as commercial adoption scales. Read Exec Edge’s Initiation on Swarmer Inc. Here Subscribe to our Weekly Newsletter to Receive All Research Contact: Executives-Edge.com [email protected] The post Swarmer’s SkyKnight & Platform Expansion Builds Commercial Momentum – Quarterly Update Report appeared first on ExecEdge.

Interested in Swarmer Inc? Here are five stocks we like better. Revenue increased to approximately $216,000 from $138,000 year over year, but the net loss widened to about $7.2 million as Swarmer invested heavily in personnel, engineering, product development and public-company costs. The SkyKnight program added roughly $1 million in contracted license value, bringing its potential value to approximately $14.2 million. Swarmer received $1.4 million during the quarter, though only about $200,000 was recognized as revenue due to accounting treatment. Liquidity improved significantly: cash totaled approximately $25.3 million at June 30, supported by $8.8 million raised through its equity line during the quarter and another $17.9 million collected afterward. Management also highlighted partnerships and platform integrations aimed at expanding adoption of its autonomous-systems software. Swarmer (NASDAQ:SWMR) reported second-quarter 2026 revenue of approximately $216,000, up from $138,000 in the prior-year period, as the autonomous-systems software company completed its first full quarter as a public company. The company also reported a wider net loss as it increased spending on personnel, engineering, product development and public-company operating costs. President and U.S. CEO Alex Fink said the company expanded its customer base, advanced deployments across unmanned platforms and continued investing in technology and partnerships during the quarter. Swarmer develops software intended to enable a single operator to coordinate large numbers of autonomous systems across air, land and maritime applications. → Lumentum Just Delivered the AI Growth Investors Wanted Fink said Swarmer's technology has supported more than 100,000 combat missions in Ukraine since April 2024. He characterized the operational data generated through those missions as a differentiator that helps the company refine its artificial intelligence and autonomy capabilities. A central focus of the call was Swarmer's expanded SkyKnight program. During the quarter, the customer added approximately $1 million in contracted license value, bringing the combined contract's potential value to approximately $14.2 million if all options are exercised. The program currently represents approximately $3.9 million of contracted license value, according to management. → Joby’s Defense Pivot Accelerates With $500M Resonant Sciences Deal Swarmer received $1.4 million under the SkyKnight program during the quarter after delivering software licenses. However, CFO Brooks Ensign said the accounting treatment limited the amount recognized in reported revenue. Approximately $200,000 was recognized as revenue, $100,000 was recorded as deferred revenue, and the remainder was recorded as an advance on the balance sheet. Fink said the contract expansion was outside the scope of the original agreement. He explained that SkyKnight, also called Meta, increased its projected quantity of fixed-wing drones and acquired additional autonomy licenses. The customer retains an option to upgrade certain drones equipped with Swarmer's operating system to the company's full autonomy platform. → Ryman Checks Into a $1.38B Hospitality Upgrade Ensign said the SkyKnight program also included a separate, one-time contractual prepayment of approximately $2.2 million that contributed to the company's cash usage during the quarter. Gross profit totaled approximately $184,000 in the second quarter, compared with $82,000 a year earlier. In response to an analyst's question, Ensign said cost of goods sold currently consists of web-based data services. He said engineering services could be included in future revenue arrangements and that the company was still evaluating its methodology, but estimated gross margins could be around 80%. Operating expenses rose to approximately $7.5 million from approximately $855,000 in the second quarter of 2025. Ensign attributed the increase primarily to investments in personnel, engineering and product development, as well as higher consulting, legal and professional-service expenses related to being a public company. The quarter's operating expenses included one-time equipment purchases that Ensign said are unlikely to recur in most quarters, along with $1.2 million in non-cash stock compensation expense. Net loss widened to approximately $7.2 million, compared with a loss of approximately $1.6 million in the prior-year quarter. Cash and cash equivalents stood at approximately $25.3 million as of June 30, compared with $9.3 million at the end of 2025. Swarmer raised approximately $8.8 million through its equity line of credit during the quarter and collected an additional $17.9 million subsequent to quarter-end through Aug. 10. Fink said the company had raised more than $26 million through the facility since it was announced. Management highlighted several partnerships intended to expand Swarmer's software reach and data access. Fink said the company's relationship with Oak Grove Technologies has resulted in Swarmer software being integrated on a U.S. platform. He also said Oak Grove's training presence in the special operations community could help increase operator awareness of Swarmer's autonomy capabilities. Swarmer is working with Lantronix on a compute platform for small unmanned systems. Fink said the company sees an opportunity between lower-end Raspberry Pi systems and higher-end NVIDIA Jetson products, with Swarmer's operating system intended to be built into the proposed platform. The company also cited its cooperation with Molfar for access to open-source intelligence data and its relationship with Brightline for operational data from unmanned platforms. Fink said the company believes additional data sources can support a “data flywheel” in which deployment data helps improve models and drives further deployments. During the question-and-answer session, Fink said work had begun and was continuing under Swarmer's memorandum of understanding with Powers to integrate its software into several of that company's platforms. He did not provide a timeline for converting the memorandum into a commercial contract, stating that an announcement would be made if and when the platforms are ready to scale and have buyers. Integration timelines can range from two to four weeks, including field testing, for platforms similar to systems Swarmer has previously deployed, Fink said. More unusual platforms can take several months. He added that revenue may be delayed even after a technical integration is completed because customers must sell the final product to end users, which are typically government entities. Fink also said Swarmer is evaluating opportunities to invest in, acquire or help scale complementary defense technologies, though he did not announce any potential transactions. Management said it remains focused on expanding adoption, deepening manufacturer integrations and supporting programs as they progress toward scaled deployment. We are launching the future of autonomous warfare through combat-proven software that enables military forces to deploy and coordinate drone swarms at significant scale. While hardware manufacturers compete and as the go-to in an increasingly commoditized market, we seek to establish ourself as a critical software layer operating system for autonomous swarm operations positioning us to capture increased value as the global military drone market experiences growth projected to exceed 12% compound annual growth through 2030. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Swarmer Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

AUSTIN, Texas, Aug. 13, 2026 (GLOBE NEWSWIRE) -- Swarmer, Inc (“Swarmer” or the “Company”) (Nasdaq: SWMR), a drone autonomy software company which has supported more than 100,000 real-world combat missions in Ukraine since April 2024, today announced financial results for the quarter ended June 30, 2026 (“Q2 2026”), and discussed recent business developments. Management CommentarySwarmer President & U.S. CEO Alex Fink stated: “The second quarter of 2026 marked our first full quarter as a public company and a period of meaningful progress across the business. We successfully added several new customers and advanced deployments across multiple unmanned platforms while continuing to invest in the team and technology needed to support future growth. “These developments reinforce our belief that Swarmer is well positioned to capitalize on a rapidly expanding market as demand for autonomous and collaborative unmanned systems continues to accelerate. We believe the expansion of the SkyKnight program validates both our technology and business model. As we connect with larger manufacturers and deployment volumes continue to grow across the industry, we see a significant opportunity to expand adoption of our software with additional platforms. “Looking ahead, we remain focused on expanding adoption across a wider range of unmanned systems, deepening our integration with manufacturers, and supporting programs as they transition from evaluation into scaled deployment. We will also continue to evaluate strategic opportunities that align with our long-term growth objectives and enhance our capabilities. As these initiatives mature, we believe Swarmer can become a foundational software layer for autonomous and collaborative systems across multiple domains, supporting long-term growth and value creation.” Second Quarter 2026 and Recent Operational Highlights Expanded the SkyKnight software licensing program, increasing the total contracted license value from $2.9 million to $3.9 million. Existing customer upgrade options, if fully exercised, would bring the maximum arrangement value to approximately $14.2 million. Partnered with Oak Grove Technologies to integrate Swarmer’s autonomy software into the Chimera UAV platform, advancing autonomous swarming capabilities for U.S. Special Operations and defense missions. Signed an MOU with Powerus to explore the integration of Swarmer's autonomy and swarming software across air and maritime autonomous systems. Collaborated with Lantronix to develop a custom NDAA-compliant compute platform for Group 1 unmanned aerial systems, increasing onboard processing power by more than 400%. Partnered with Brightline Interactive to integrate Swarmer's autonomy software with Brightline’s platform and expand access to operational data for AI model training. Established a strategic data partnership with Molfar Intelligence to integrate verified battlefield intelligence datasets into Swarmer's AI training pipeline. Collaborated with Tekmara and Florida International University to evaluate autonomous drone swarms for environmental monitoring and coastal restoration applications. Second Quarter 2026 Financial ResultsResults compare Q2 2026 to the 2025 second quarter ended June 30, 2025 (“Q2 2025”), unless otherwise indicated. Revenue for Q2 2026 was $216,413, compared to $138,206 in Q2 2025. The Company invoiced $1.5 million under the SkyKnight program during the quarter, of which $1.4 million has been collected; $0.2 million was recognized as revenue, $0.1 million was recorded as deferred revenue, and the remainder was recorded as an advance on the balance sheet. Gross margin for Q2 2026 was $183,597 compared to $82,030 in Q2 2025, driven primarily by license revenue recognized under the SkyKnight program. Operating expenses for Q2 2026 were $7.5 million compared to $854,847 in Q2 2025. The increase primarily reflects investments in personnel, engineering, product development and platform integration capabilities, as well as higher consulting, legal and professional services expenses associated with operating as a public company. Q2 2026 operating expenses also included approximately $1.2 million of non-cash stock-based compensation expense and certain one-time equipment purchases that are not expected to recur on a regular basis. Net loss for Q2 2026 was $(7.3) million compared to $(1.6) million in Q2 2025, primarily reflecting higher operating expenses. Cash and cash equivalents at June 30, 2026 totaled $25.3 million compared to $9.3 million at December 31, 2025. The increase primarily reflects proceeds of approximately $16.0 million from the IPO, net of underwriting costs, $8.8 million raised through the Company's equity line of credit and $3.5 million from the sale of Series A-1 convertible preferred stock. Cash usage in Q2 2026 included a one-time $2.2 million contractual prepayment under the SkyKnight program; excluding this payment, underlying cash burn was generally consistent with prior quarters. Subsequent to quarter end through August 10, 2026, the Company collected an additional $17.9 million from sales of common shares under its equity line of credit, including the $4.6 million receivable outstanding at June 30, 2026. Conference CallThe Company’s management will host a conference call today, August 13, 2026, at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss these results, followed by a question-and-answer period. Registration Link: https://swarmer-2q2026.open-exchange.net/ Please connect 5-10 minutes prior to the start time. If you have any difficulty connecting with the conference call, please contact Gateway Group at 949-574-3860. The conference call will also be available for replay here. About SwarmerSwarmer™ is a defense technology company that specializes in vendor-agnostic software which allows one operator to intuitively control hundreds of autonomous platforms in real time. Swarmer’s primary mission areas include autonomous swarm coordination, integration of multi-domain unmanned systems and AI-powered autonomy software for distributed operations. Swarmer is not a drone manufacturer and does not depend on any single platform, supplier or hardware lifecycle. Instead, Swarmer operates at the intelligence layer, developing autonomy, coordination and decision-making software that enables large numbers of low-cost unmanned systems to operate collectively as one coherent, resilient force. Swarmer’s technology has been rigorously validated in real-world kinetic environments and was first deployed in combat operations in Ukraine in April 2024. Since then, it has completed more than 100,000 combat missions, generating terabytes of proprietary data that informs its machine-learning models and enables the replication of advanced pilot performance at scale. Swarmer’s routine use in combat missions generates continuous streams of telemetry, sensor data and operational feedback which are then used to refine performance, increase resilience and accelerate learning. Swarmer has headquarters in Austin, Texas, and maintains operations and teams in Ukraine, Poland and Estonia. Forward-Looking StatementsThis press release contains forward-looking statements within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements about Swarmer’s strategy, market opportunity, customer engagement, product development, technology integrations, expansion into new markets, future revenue opportunities, expected customer mix, potential deployments, and the anticipated benefits of the Company’s relationships, memoranda of understanding, partnerships, and other commercial initiatives; the Company's plans to expand adoption of its autonomy software across additional unmanned platforms and domains; the expected benefits of partnerships and collaborations with Oak Grove Technologies, Powerus, Lantronix, Brightline Interactive, Molfar Intelligence, Tekmara, and Florida International University; the Company's strategy to evaluate and pursue additional strategic opportunities; planned investment in engineering, product development, and platform integration capabilities; and the Company's ability to become a foundational software layer for autonomous and collaborative systems. Forward-looking statements are based on current expectations, estimates, forecasts, and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. These risks and uncertainties include, among others: the Company’s limited operating history as a public company; its history of losses and limited current revenue; customer concentration and the timing, non-renewal, or loss of customer engagements; the Company’s ability to convert pilot programs, memoranda of understanding, and development-stage relationships into binding commercial contracts or revenue; defense procurement cycles and government budget priorities; geopolitical conditions affecting operations, customers, suppliers, and deployments in Ukraine and other regions; export control, sanctions, defense trade, procurement, and other regulatory requirements; competition in the defense technology and autonomous systems markets; the Company’s ability to develop, validate, scale, and integrate its software across third-party unmanned platforms; risks associated with artificial intelligence, machine learning, data availability, data quality, cybersecurity, and operational performance in real-world environments; reliance on key personnel and technical talent; supply chain and manufacturing constraints affecting the Company’s customers or partners; and the other risks described in the Company’s filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date of this release. The Company undertakes no obligation to update or revise any forward-looking statements, except as required by law. Additional risks and uncertainties are described in Swarmer’s filings with the Securities and Exchange Commission, including under the caption “Risk Factors” in Swarmer’s most recent registration statement, most recent Quarterly Report on Form 10-Q and other filings filed with or furnished to the SEC. Investor Relations Contact: [email protected] Media Relations Contact: [email protected]

AUSTIN, Texas, July 31, 2026 (GLOBE NEWSWIRE) -- Swarmer, Inc (“Swarmer”) (Nasdaq: SWMR), a drone autonomy software company which has supported more than 100,000 real-world combat missions in Ukraine since April 2024, will hold a conference call on Thursday, August 13, 2026, at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss its financial results for the quarter ended June 30, 2026. Financial results will be issued in a press release prior to the call. Swarmer management will host the presentation, followed by a question-and-answer period. Date: Thursday, August 13, 2026Time: 4:30 p.m. ET (1:30 p.m. PT)Registration Link: https://swarmer-2q2026.open-exchange.net/ Please connect 5-10 minutes prior to the start time. If you have any difficulty connecting with the conference call, please contact Gateway Group at 949-574-3860. The conference call will also be available for replay here. About SwarmerSwarmer™ (Nasdaq: SWMR) is a defense technology company that specializes in vendor-agnostic software which allows one operator to intuitively control hundreds of autonomous platforms in real time. Swarmer’s primary mission areas include autonomous swarm coordination, integration of multi-domain unmanned systems and AI-powered autonomy software for distributed operations. Swarmer is not a drone manufacturer and does not depend on any single platform, supplier or hardware lifecycle. Instead, Swarmer operates at the intelligence layer, developing autonomy, coordination and decision-making software that enables large numbers of low-cost unmanned systems to operate collectively as one coherent, resilient force. Swarmer’s technology has been rigorously validated in real-world kinetic environments and was first deployed in combat operations in Ukraine in April 2024. Since then, it has completed more than 100,000 combat missions, generating terabytes of proprietary data that informs its machine-learning models and enables the replication of advanced pilot performance at scale. Swarmer’s routine use in combat missions generates continuous streams of telemetry, sensor data and operational feedback which are then used to refine performance, increase resilience and accelerate learning. Swarmer has headquarters in Austin, Texas, and maintains operations and teams in Ukraine, Poland and Estonia. Investor Relations Contact: [email protected] Relations Contact: [email protected]

Download the Complete Report Here Key Takeaways: 1Q26 establishes the starting revenue baseline ahead of expected sequential growth. Meta Bureau’s $2.86 million SkyKnight award covers 16,000+ licenses, with $10.4 million of upgrade options creating software attach upside. Japan / Rakuten, HIMERA, and interceptor initiatives broaden SWMR’s funnel across allied markets, resilient communications, and counter-UAS applications. Cash increased to $23.5 million after IPO and Series A-1 proceeds, supporting engineering, product development, and integration capacity. Platform expansion, strategic partnerships, and autonomy adoption support a premium valuation framework. 1Q26 establishes the starting revenue baseline ahead of expected sequential growth. SWMR’s first reported quarter as a public company showed revenue of $20,325, down 81.6% y/y from $110,704, gross profit moving to a $(19,599) loss from $65,162, and net loss widening to $(4.5) million from $(0.7) million. The revenue decline was primarily tied to the wind-down of service-related deferred revenue from the company’s historically largest Ukraine customer, from which SWMR does not expect future revenue, while the current focus has shifted toward higher-volume Ukraine and international opportunities. The quarter therefore looks more like a transition point in reported revenue than a demand signal, with the forward story tied to license activation, deployment timing, and partner production. Street estimates sourced from TIKR show that revenue is expected to increase to $1.0 million in 2Q26, $3.0 million in 3Q26, and $5.0 million in 4Q26, implying that sequential growth is expected to begin immediately as new awards and integrations start contributing to recognized revenue. Nasdaq listing strengthened the balance sheet and funded the next phase of product integration. During the quarter, Swarmer completed its IPO and began trading on the Nasdaq Capital Market under the ticker SWMR, raising approximately $17.3 million in gross proceeds to support continued investment in engineering, product development, and growth initiatives. Combat-proven intelligence layer underpins SWMR’s differentiation as drone coordination demand scales. SWMR’s platform is positioned around the core bottleneck in modern unmanned systems: coordinating, controlling, and automating large numbers of low-cost drones rather than building the hardware itself. The company’s most differentiated product input is its combat operating history, with the technology supporting more than 100,000 real-world missions in Ukraine since April 2024 across nearly 50 military units. That field exposure matters because the autonomy stack is being refined in contested environments involving jamming, operator constraints, multi-drone coordination, and rapidly changing mission requirements rather than only through lab testing or simulation. Meta Bureau’s ~$2.9 million contract expands deployment footprint and creates meaningful upgrade optionality. In May, Meta Bureau LLC awarded SWMR’s subsidiary, Swarmer Estonia OÜ, a contract with an initial value of $2.86 million for more than 16,000 software licenses to be deployed aboard SkyKnight quadcopter bombers and other unmanned aerial vehicles (UAVs). The agreement includes two separate license allocations for Swarmer’s full autonomy platform including Swarmer OS, AI, and UI as well as an additional allocation for Swarmer OS-only licenses, which can later be upgraded to the full autonomy stack via over-the-air software updates. If all upgrade options are exercised, the total contract value could increase by an additional $10.4 million, bringing the potential aggregate value to approximately $13.2 million. Management noted that the deployment is expected to further expand the company’s real-world operational dataset and strengthen integration with battle-proven UAV platforms operating in Ukraine. New initiatives broaden SWMR’s commercialization surface area beyond the initial license ramp, adding three paths to convert platform validation into larger programs: allied-market expansion, resilient communications, and counter-UAS/site-defense applications. Japan/Rakuten expands SWMR’s allied-market commercialization channel. SWMR’s expansion into Japan with support from Rakuten gives the company a local route into one of the world’s more advanced robotics and unmanned systems markets. The initiative broadens SWMR’s funnel beyond Ukraine-linked demand and supports potential applications across defense, emergency response, infrastructure, research, and industrial use cases. The successful demonstration of an autonomous “seek and hit” operation using eight-inch attritable drones also reinforces the company’s focus on low-cost, scalable unmanned systems. The key milestone is whether Rakuten-supported market entry converts into local integrators, signed programs, or paid deployments. HIMERA partnership strengthens SWMR’s autonomy stack with resilient battlefield communications. SWMR’s memorandum of understanding with HIMERA adds jam-resistant, frequency-hopping communications technology to the company’s next-generation autonomy stack. That matters because scaled autonomous operations depend on reliable connectivity in contested and degraded environments, particularly when coordinating multiple vehicles across aerial, ground, and maritime domains. The partnership could lower integration complexity for vendors by combining resilient communications with SWMR’s autonomy and coordination layer in a more deployable solution. Joint engagement with system vendors and integrators should be the next proof point for whether the partnership can move from technical integration to commercial adoption. Interceptor collaboration expands SWMR into counter-UAS and site-defense applications. SWMR announced MOUs with X-Drone, Norda Dynamics, and Kara Dag Technologies to develop an end-to-end drone interceptor system for Group 1-3 UAVs and unmanned surface vessels up to eight meters. The planned solution would integrate detection, targeting, terminal guidance, and autonomous coordination into SWMR’s platform, creating a lower-cost alternative to traditional missile-based defense for critical infrastructure and maritime threats. The partner base adds credibility, with X-Drone having delivered more than 70,000 unmanned systems, Norda software deployed on more than 60,000 attritable drones, and Kara Dag contributing distributed RF / acoustic detection capabilities. Strategically, the initiative extends SWMR from enabling drone operations into autonomous interception, broadening the platform’s use cases while keeping the company anchored in software-led coordination rather than hardware manufacturing. Management indicated initial deployment timelines could range from two-to-four months, making interceptor integration a tangible 2H26 milestone if testing and partner integration progress as planned. We note that publicly announced partnerships likely represent only a portion of the company’s broader commercial pipeline. SWMR acknowledged that several customers and programs remain undisclosed due to the sensitive nature of defense-related engagements and customer confidentiality considerations. Importantly, management noted that currently announced partnerships and reported revenue are generally trailing indicators, with most publicly disclosed projects typically reflecting business development and integration work completed approximately three to nine months earlier. As a result the underlying pipeline may be materially deeper than what is currently visible publicly, with additional updates expected as programs progress and disclosure becomes possible. Appointment of Mykhailo Nestor strengthens product leadership as SWMR scales its autonomy platform. SWMR appointed Nestor as Chief Product Officer to lead product strategy and development across swarm coordination, multi-domain integration, AI-powered collaborative autonomy, and distributed command-and-control systems. Nestor spent seven years as Chief Product Officer and board member at Kyivstar, part of VEON, where he helped build large-scale digital platforms used by millions of customers. His experience scaling complex software infrastructure should support SWMR’s transition from field-tested autonomy software to repeatable, partner-integrated products across allied defense and autonomous systems markets. SWMR’s hardware-agnostic intelligence layer addresses the core coordination problem in modern unmanned operations. SWMR is focused on solving three challenges facing autonomous systems: coordinating large numbers of unmanned platforms across multiple domains, enabling real-time decision making in contested environments, and maintaining effectiveness when communications are degraded or denied. The company operates at the software layer rather than manufacturing drones, positioning SWMR to support interoperability across aerial, ground, and maritime systems. That hardware-agnostic approach is important as defense customers increasingly prioritize scalable autonomy, resilient command-and-control, and coordination across heterogeneous unmanned fleets. Combat mission history shows increasing autonomy and mission complexity over time. SWMR’s combat deployments began in April 2024 with relatively simple multi-drone reconnaissance and mining operations involving approximately three drones, then expanded toward formations of roughly eight-to-10 larger unmanned systems. Early missions were semi-autonomous, with operators maintaining partial control during flight toward target areas, while more recent missions have moved toward higher levels of autonomy. Reconnaissance drones can autonomously identify and transmit battlefield data, while attack drones coordinate target engagement decisions internally based on probability-of-hit calculations rather than direct operator assignment. This progression shows that SWMR’s 100,000+ combat missions are not just validation points, but inputs into more sophisticated mission templates and broader hardware integrations. Per-unit licensing gives SWMR a flexible pricing framework as unmanned system volumes scale. SWMR currently prices its autonomy software primarily on a per-unit licensing basis, with pricing determined case-by-case based on integration complexity, hardware class, and expected production scale. Higher-volume platforms may carry lower per-unit pricing given broader deployment potential, while lower-volume systems such as larger fixed-wing platforms may command higher pricing because upfront integration work is spread across fewer units. The company also noted that percentage-of-system-value pricing could become relevant over time, but the market remains early and commercialization is currently focused on flexible structures that scale with customer deployment volumes. Margins and opex should be viewed through early-stage scale, not 1Q26 profitability. 1Q26 gross margin was (96.4)% because revenue was only $20,325 and gross profit was a $(19,599) loss, versus 58.9% gross margin on $110,704 of revenue in 1Q25. Operating expenses also stepped up to $4.5 million from $0.8 million, reflecting public-company costs, consulting and professional services, and higher engineering and product development investment. Future spending is expected to remain primarily opex-focused, including additional engineering hires and integration capacity across a broader range of hardware platforms. SWMR also suggested that long-term gross margins could exceed 70% as the business scales, reflecting the high-margin potential of a software-centric licensing model despite service and implementation obligations. As revenue begins to scale, the key test is whether new license activations and repeat integrations start to absorb the higher public-company and engineering cost base. Balance sheet supports engineering and integration priorities, with working capital tied to program conversion. SWMR ended 1Q26 with $23.5 million of cash and equivalents, up 152.7% from $9.3 million at year-end 2025, reflecting $17.3 million of IPO gross proceeds and $3.5 million of Series A-1 convertible preferred proceeds. Capital deployment is focused on hiring engineers, expanding integration capacity, and supporting product development rather than balance-sheet-heavy capex. As license awards and partner programs scale, the more relevant working-capital items will be deferred revenue, milestone billings, receivables, and customer advances tied to activation and service obligations. Street estimates frame a sharp 2Q26-2028E revenue ramp and 2027E EBITDA inflection as license activation scales. Street estimates sourced from TIKR forecast revenue of $1.0 million in 2Q26, $3.0 million in 3Q26, and $5.0 million in 4Q26, producing $9.0 million of 2026E revenue before rising to $25.0 million in 2027E and $40.0 million in 2028E. That implies growth of 178% in 2027E and 60% in 2028E, with EBITDA margin improving from (69.3)% in 2026E to 20.2% in 2027E and 30.1% in 2028E. The estimate path is consistent with a software license model moving from activation to scale, but it requires visible conversion from contract value, partner integrations, and development-stage programs into recognized revenue. We view 2Q26 as the first key checkpoint, with the $1 million estimate providing an early read on whether license activation is beginning to convert into the expected revenue ramp. The following valuation analysis is presented for illustrative purposes only and does not constitute a recommendation, investment advice, solicitation, or a price target. The analysis is based on publicly available information and company disclosures and reflects a valuation framework rather than a definitive assessment of fair value. Any implied upside or downside referenced herein is not intended as a prediction of future share price performance. Valuation screens elevated on near-term revenue, but the multiple compresses quickly if SWMR executes against the expected software-license ramp. SWMR currently trades at approximately 41.3x 2026E sales based on Street estimates sourced from TIKR for 2026 revenue of $9.0 million, which is demanding on near-term financial metrics and reflects the company’s early-stage commercialization profile. However, we believe the market is valuing SWMR less like a traditional defense contractor or hardware-centric drone company and more like a scarce autonomy software platform, supported by combat-validated technology, hardware-agnostic positioning, and exposure to growing unmanned systems and counter-UAS demand. The valuation moderates meaningfully as revenue scales, with the P/S multiple declining to 14.9x 2027E sales on projected revenue of $25.0 million and 9.3x 2028E sales assuming revenue reaches $40.0 million. In our view, the key to sustaining a premium multiple versus defense hardware peers will be evidence that license deployments, platform integrations, OS-to-full-stack upgrade opportunities, and international partnerships can convert into recurring software revenue and improving EBITDA visibility. Software-led autonomy positioning: SWMR’s hardware-agnostic autonomy platform supports a premium to hardware-centric defense and drone peers if it becomes an embedded software layer across OEMs, unmanned platforms, and mission types. Asset-light model: Unlike traditional defense manufacturers, SWMR does not manufacture drones or heavy hardware, allowing capital to be directed toward software development, integration capacity, and engineering talent rather than balance-sheet-heavy production infrastructure. Revenue scaling potential: Current revenue reflects early-stage deployments, but Street estimates sourced from TIKR call for revenue to rise from $9.0 million in 2026E to $25.0 million in 2027E and $40.0 million in 2028E as license activation scales. Profitability glidepath: Management highlighted the operating leverage embedded in SWMR’s model, while Street estimates sourced from TIKR show that EBITDA and EPS are likely to turn positive in 2027E as software license revenue scales. Defense autonomy tailwinds: Rising defense spending, accelerating unmanned systems adoption, counter-UAS demand, and battlefield lessons from Ukraine create a supportive backdrop for AI-enabled drone coordination and autonomy platforms. Private-market autonomy valuations support a premium framework for scaled AI-defense platforms. Shield AI, a private-market comparable within the defense autonomy ecosystem, announced a $1.5 billion Series G raise at a $12.7 billion post-money valuation in March 2026, alongside $500 million of fixed-return preferred equity financing. Media reports and private-company estimates indicate Shield AI generated approximately $300 million of revenue for the year ended March 2025 and is projected to exceed $540 million in 2026, implying roughly 42x trailing sales and 24x forward sales. The comparison is relevant despite Shield AI’s larger scale and broader platform mix because both companies are positioned around AI-enabled autonomy, collaborative unmanned operations, and software-centric defense applications. In that context, SWMR’s current 41.3x 2026E sales multiple appears more defensible if the company converts its combat-validated software stack, hardware-agnostic architecture, strategic partnerships, and license deployments into the expected revenue ramp. Download the Complete Report Here Read Exec Edge’s Initiation on Swarmer Inc. Here Subscribe to our Weekly Newsletter to Receive All Research Contact: Executives-Edge.com [email protected]

Interested in Swarmer Inc? Here are five stocks we like better. Swarmer’s Q1 revenue dropped sharply to $20,325 from $110,704 a year earlier, with management blaming the decline on the winding down of deferred revenue from a former major customer in Ukraine. The quarter also showed a larger net loss of $4.5 million as public-company and product development costs rose. The company is positioning itself as the software “intelligence layer” for unmanned systems, not a drone maker, and says its platform has supported more than 100,000 combat missions in Ukraine. Management says long defense procurement cycles make revenue lumpy, so they are watching deployments and integrations as key growth indicators. Swarmer highlighted new growth opportunities including a $2.86 million contract with Meta Bureau that could expand by $10.4 million, plus an exclusive distribution deal in Japan with Rakuten. The company is also developing a drone interceptor kit with partners and plans to keep investing in engineering and integrations. Swarmer (NASDAQ:SWMR) reported a sharp year-over-year decline in first-quarter revenue in its first earnings call as a public company, while management emphasized that the company is investing in platform development, partnerships and international expansion as it seeks to position its autonomy software for larger unmanned systems deployments. President and U.S. CEO Alex Fink said the first quarter of 2026 was a “major milestone” for the company, marked by the completion of its initial public offering, additions to the leadership team and continued development of its software platform for autonomous and unmanned systems. → Rocket Lab Just Hit a New All-Time High—Time to Buy or Let It Breathe? Fink framed Swarmer’s opportunity around what he described as a shift in the global defense market toward artificial intelligence, autonomy and lower-cost unmanned platforms. He said the company is focused on the “intelligence layer” of unmanned systems rather than manufacturing drones, with software intended to coordinate large numbers of systems across different hardware platforms. “As these systems proliferate by the millions, the limiting factor is no longer hardware,” Fink said. “It is the ability to coordinate, control, and scale those systems effectively.” → MercadoLibre Boldly Invests in Growth: Discount Deepens CFO Brooks Ensign said revenue for the first quarter of 2026 was $20,325, compared with $110,704 in the first quarter of 2025. The decline primarily reflected the wind-down of residual service-related deferred revenue associated with the company’s historically largest customer in Ukraine. Ensign said the company does not expect future revenue from that customer. Gross loss for the quarter was $19,599, compared with gross profit of $65,162 a year earlier. Operating expenses rose to $4.5 million from $800,000 in the prior-year period, driven by consulting and professional services costs tied to becoming a public company, as well as increased spending on engineering and product development. → MP Materials Is Quietly Building a Rare Earth Powerhouse Net loss was $4.5 million, compared with a net loss of $0.7 million in the first quarter of 2025. Cash and cash equivalents totaled $23.5 million as of March 31, 2026, up from $9.3 million at Dec. 31, 2025. Ensign said the increase primarily reflected about $17.3 million in gross IPO proceeds and roughly $3.5 million in gross proceeds from the sale of Series A-1 convertible preferred stock. Management cautioned that revenue may fluctuate between periods because Swarmer’s model is generally tied to customer deployment and software activation timelines. Ensign said software license revenue is typically recognized upon activation, while revenue tied to support and service obligations may be deferred and recognized over the applicable service period. Fink said revenue can be a “trailing indicator” because of long procurement cycles in the defense sector. He said the company is monitoring indicators such as platform integrations, partner integrations, adoption within programs and movement from development toward production and deployment. Fink said Swarmer’s platform has been used in more than 100,000 combat missions in Ukraine since April 2024 across nearly 50 military units. He said those missions generate telemetry, sensor data and operational feedback that the company uses to refine the platform. During the question-and-answer session, Fink said early missions involved relatively simple operations such as multi-drone reconnaissance or mining operations, later progressing to bombing operations with multiple drones. He said Ukrainian deployments initially involved small groups of drones, starting with three and growing to roughly eight to 10 in some cases. Fink said the missions have included varying levels of autonomy. In some earlier missions, the software controlled drones on the way to and from a target area while a pilot handled the moment of engagement. In later missions, he said operators could mark targets on a screen from reconnaissance drone feeds, with the system determining which attack drone should engage which target. “That was not a decision for the operator to make,” Fink said, adding that the system evaluates which drone has the highest probability of hitting a target. Swarmer announced a $2.86 million contract with Meta Bureau, a Kyiv-based drone producer, during the quarter. Fink said the company’s technology will be used onboard SkyKnight quadcopter bombers and other UAVs. The agreement also includes optional upgrades that could add $10.4 million if fully executed. In response to a question from Lucid Capital Markets analyst Alex Fuhrman, Fink said the customer selected Swarmer’s full autonomy stack for a portion of its drones and the company’s base operating system, Swarmer OS, for the rest of its production. Fink said Swarmer OS includes features such as encryption, security, secure messaging between drones and video streaming to multiple viewers, but does not include autonomy. The customer can later upgrade drones using Swarmer OS to the full autonomy stack, including after deployment, he said. The company also discussed its approach to pricing. Fink said Swarmer has chosen a per-unit licensing model because management expects drone unit volumes in the market to increase significantly. He said pricing depends on factors such as the integration effort required, the scalability of a device class and overall production volume. Fink said Swarmer is expanding beyond Eastern Europe, including a move into Japan with support from Rakuten Group, which agreed to serve as the company’s exclusive distributor in the market. He said the partnership is intended to introduce Swarmer’s autonomy platform into Japan’s unmanned systems ecosystem, with potential applications in defense, infrastructure and industrial markets. The company also recently completed a demonstration of an autonomous “seek-and-hit” operation using attributable 8-inch drones, which Fink described as an early validation step for regional partners and customers. Swarmer also announced that it is developing a deployable end-to-end drone interceptor kit in partnership with XDrone, NORDA Dynamics and Karadag Technologies. Fink said XDrone has delivered more than 70,000 drone systems to frontlines in Ukraine, NORDA’s software has been used on more than 60,000 drones and Karadag provides sensing technology for incoming threats. Fink said Swarmer’s role is to integrate detection, guidance, coordination and execution capabilities into a unified autonomy layer. He estimated that integration for the interceptor effort could take roughly two to four months, while noting that the timeline could change depending on integration complexity and test results. Fink said the company’s near-term investment priorities include hiring more engineers, particularly for integration work across different hardware platforms. He said Swarmer’s goal is to move quickly to create tools that can be deployed and scaled for warfighters. The company also highlighted the appointment of Mykhailo Nestor as chief product officer. Fink said Nestor previously helped scale digital product platforms at Kyivstar Group Ltd., part of VEON Ltd., and helped establish Kyivstar.Tech. Asked by Northland Capital Markets analyst Michael Latimore about longer-term margins, Ensign said it was reasonable to think of gross margins above 70% as the company scales, while noting that the business includes service obligations and implementation work. Fink closed the call by saying the company remains focused on expanding adoption, deepening integration with partners and supporting programs as they move into larger-scale fielding. We are launching the future of autonomous warfare through combat-proven software that enables military forces to deploy and coordinate drone swarms at significant scale. While hardware manufacturers compete and as the go-to in an increasingly commoditized market, we seek to establish ourself as a critical software layer operating system for autonomous swarm operations positioning us to capture increased value as the global military drone market experiences growth projected to exceed 12% compound annual growth through 2030. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Swarmer Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

AUSTIN, Texas, May 13, 2026 (GLOBE NEWSWIRE) -- Swarmer, Inc (“Swarmer” or the “Company”) (Nasdaq: SWMR), a drone autonomy software company which has supported more than 100,000 real-world combat missions in Ukraine since April 2024, today announced financial results for the quarter ended March 31, 2026 (“Q1 2026”), and discussed recent business developments. Management CommentarySwarmer President & U.S. CEO Alex Fink stated: “The first quarter of 2026 represented an important step forward for Swarmer as we completed our initial public offering, strengthened our leadership team and continued to expand our presence within the autonomous systems ecosystem. These milestones support our ability to pursue a rapidly expanding market, as demand for autonomous and collaborative unmanned systems continues to accelerate amid rising deployment volumes and persistent operator constraints. Swarmer’s software is purpose‑built for this environment, and we are seeing expanding engagement from manufacturers developing next‑generation, high‑volume platforms across multiple domains. “Looking ahead, we are focused on expanding adoption across a wider range of unmanned platforms, deepening our integration with leading manufacturers and supporting programs as they transition from development into scaled deployment. As these initiatives mature, we believe Swarmer can serve as a foundational software layer for autonomous and collaborative systems, enabling long‑term growth as deployment volumes increase across multiple domains.” First Quarter 2026 and Recent Operational Highlights Successfully listed on the Nasdaq Capital Market under the ticker symbol "SWMR” and raised $17.3 million in cash proceeds from the Company’s initial public offering. Awarded $2.8 million contract for more than 16,000 software licenses to be used aboard SkyKnight quadcopter bombers and other unmanned aerial vehicles. Expanded into Japan with support from Rakuten Group, accelerating market entry and advancing deployment of Swarmer’s solutions within Japan’s advanced unmanned systems ecosystem. Entered into a memorandum of understanding with HIMERA, a Ukraine-based provider of jam-resistant radios, to integrate resilient communications into Swarmer's next-generation autonomy stack. Announced the development of a deployable drone interceptor kit, leading the collaboration with X-Drone, Norda Dynamics, and Kara Dag Technologies to create an affordable counter-drone solution. Appointed Mykhailo Nestor as Chief Product Officer to lead product strategy and development, bringing seven years of experience as Chief Product Officer at Kyivstar Group Ltd., Ukraine's largest digital operator. First Quarter 2026 Financial ResultsResults compare Q1 2026 to the 2025 first quarter ended March 31, 2025 (“Q1 2025”), unless otherwise indicated. Revenue for Q1 2026 was $20,325 compared to $110,704 in Q1 2025. The decline reflects the wind-down of service-related deferred revenue associated with the Company’s historically largest customer in Ukraine. The Company does not expect future revenue from this customer and is focused on scaling engagements with higher-volume customers in Ukraine and international markets. Gross profit (loss) for Q1 2026 was $(19,599) compared to $65,162 in Q1 2025, driven primarily by lower revenue during the period. Operating expenses for Q1 2026 were $4.5 million compared to $0.8 million in Q1 2025. The increase was primarily attributable to higher consulting and professional services expenses associated with becoming a public company, together with increased investment in engineering and product development initiatives. The Company continues to prioritize investment in engineering, product development and platform integration capabilities to support long-term growth initiatives. Net income (loss) for Q1 2026 was $(4.5) million compared to $(0.7) million in Q1 2025, primarily reflecting higher operating expenses. Cash and cash equivalents at March 31, 2026 totaled $23.5 million compared to $9.3 million at December 31, 2025. The increase primarily reflects gross proceeds of approximately $17.3 million from the Company’s initial public offering, together with approximately $3.5 million in gross proceeds from the sale of Series A-1 convertible preferred stock. Conference CallThe Company’s management will host a conference call today, May 13, 2026, at 9:00 a.m. Eastern time (6:00 a.m. Pacific time) to discuss these results, followed by a question-and-answer period. Toll-Free Number: 877-407-6184International Number: +1 201-389-0877Webcast: Register and Join Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Group at 949-574-3860. The conference call will be broadcast simultaneously and available for webcast replay here. About SwarmerSwarmer™ is a defense technology company that specializes in vendor-agnostic software which allows one operator to intuitively control hundreds of autonomous platforms in real time. Swarmer’s primary mission areas include autonomous swarm coordination, integration of multi-domain unmanned systems and AI-powered autonomy software for distributed operations. Swarmer is not a drone manufacturer and does not depend on any single platform, supplier or hardware lifecycle. Instead, Swarmer operates at the intelligence layer, developing autonomy, coordination and decision-making software that enables large numbers of low-cost unmanned systems to operate collectively as one coherent, resilient force. Swarmer’s technology has been rigorously validated in real-world kinetic environments and was first deployed in combat operations in Ukraine in April 2024. Since then, it has completed more than 100,000 combat missions, generating terabytes of proprietary data that informs its machine-learning models and enables the replication of advanced pilot performance at scale. Swarmer’s routine use in combat missions generates continuous streams of telemetry, sensor data and operational feedback which are then used to refine performance, increase resilience and accelerate learning. Swarmer has headquarters in Austin, Texas, and maintains operations and teams in Ukraine, Poland and Estonia. Forward-Looking StatementsThis press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include statements about Swarmer’s strategy, market opportunity, customer engagement, product development, technology integrations, expansion into new markets, future revenue opportunities, expected customer mix, potential deployments, and the anticipated benefits of the Company’s relationships, memoranda of understanding, partnerships, and other commercial initiatives. Forward-looking statements are based on current expectations, estimates, forecasts, and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. These risks and uncertainties include, among others: the Company’s limited operating history as a public company; its history of losses and limited current revenue; customer concentration and the timing, non-renewal, or loss of customer engagements; the Company’s ability to convert pilot programs, memoranda of understanding, and development-stage relationships into binding commercial contracts or revenue; defense procurement cycles and government budget priorities; geopolitical conditions affecting operations, customers, suppliers, and deployments in Ukraine and other regions; export control, sanctions, defense trade, procurement, and other regulatory requirements; competition in the defense technology and autonomous systems markets; the Company’s ability to develop, validate, scale, and integrate its software across third-party unmanned platforms; risks associated with artificial intelligence, machine learning, data availability, data quality, cybersecurity, and operational performance in real-world environments; reliance on key personnel and technical talent; supply chain and manufacturing constraints affecting the Company’s customers or partners; and the other risks described in the Company’s filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date of this release. The Company undertakes no obligation to update or revise any forward-looking statements, except as required by law. Investor Relations Contact: [email protected] Media Relations Contact: [email protected]

On Wednesday, Swarmer (NASDAQ:SWMR) discussed first-quarter financial results during its earnings call. The full transcript is provided below. Benzinga APIs provide real-time access to earnings call transcripts and financial data. Visit https://www.benzinga.com/apis/ to learn more. Access the full call at https://event.choruscall.com/mediaframe/webcast.html?webcastid=elMnSXGk Swarmer completed its first quarter of 2026 as a public company, having successfully conducted its IPO and expanded its leadership team. The company is focused on software solutions for unmanned systems, emphasizing interoperability and scalable autonomy, with over 100,000 combat missions conducted in Ukraine. Swarmer's revenue model is tied to customer deployments and software activation timelines, leading to potential fluctuations in reported revenue. The company announced a $2.86 million contract with NASA Bureau, with potential upgrades worth an additional $10.4 million, and expanded into Japan with Rakuten Group as a distributor. Operational expenses increased due to IPO-related costs and investment in engineering and product development, resulting in a net loss of $4.5 million for the quarter. Swarmer aims to expand its geographic footprint and deepen integration with partners, with a focus on developing a deployable end-to-end drone interceptor kit. Swarmer's cash position improved to $23.5 million post-IPO, and the company plans to prioritize investment in engineering and strategic growth initiatives. OPERATOR Good morning and welcome to The Swarmer Inc. First quarter 2026 earnings conference call. Joining us for today's presentation are the company's president and U.S. CEO Alex Fink, CFO Brooks Ensign, and global CEO Serge Kubrienko. At this time, all participants are in a listen only mode. Following management's remarks, we will open the call for questions. Before we begin, I want to remind everyone that today's call will include forward looking statements within the meaning of the federal securities laws. These statements include, among others, statements regarding Swarmware strategy, market opportunity, customer engagement, product development, technology integrations, expansion into new markets, future revenue opportunities, expected customer mix, potential deployments, and the anticipated benefits of the Company's relationships, Memoranda of Understanding, partnerships and commercial initiatives. Forward looking statements are based on current expectations and assumptions are subject to risks and uncertainties that can cause actual results to differ materially. Additional information about factors that can cause actual results to differ is included in the Company's earnings release issued today and in the Company's filings with the securities and Exchange Commission, including the risk factors described. This conference call is being webcast and a recording will be made available for replay on the Company's investor relations website. In addition to the webcast, the Company has posted a press release of the Company's results, which could also be found on the investor relations website. I will now turn the call over to Swarmer's President and US CEO Alex Fink for his comments. Sir, please proceed. Alex Fink (President and U.S. CEO) Thank you. Welcome everyone and thank you for joining us on SSwarmer's first earnings call as a public company. The first quarter of 2026 marked a major milestone for SSwarmer. We completed our initial public offering, strengthened our leadership team, and put in place the resources needed to support the next phase of our growth. More importantly, we continued to build momentum around what we believe is a fundamental shift and how unmanned systems are deployed and operated globally. At a high level, the global defense landscape is undergoing a structural transformation. Advances in artificial intelligence, autonomy and low cost unmanned platforms are shaping how modern conflicts are fought as these systems proliferate by the millions. The limiting factor is no longer hardware. It is the ability to coordinate, control and scale those systems effectively. That is the problem. SSwarmer is built There are three core challenges that drone operators face today. First, coordinating large numbers of unmanned systems across multiple domains. Second, enabling those systems to make reliable decisions in real time, especially in contested environments and third, maintaining performance when communications are degraded or denied, SSwarmer operates, at what we describe as the intelligence layer. This is the software that allows large numbers of unmanned systems to to function as a cohesive and resilient force. We are not a drone manufacturer and we are not dependent on any single hardware platform. Our goal is to enable interoperability and scalable autonomy across a wide range of systems. What differentiates Swarmer is that our software is not theoretical. It is built and validated in real world operational environments. Since April of 2024, our platform has been used in more than 100,000 combat missions in Ukraine across nearly 50 military units. These missions generate continuous streams of telemetry, sensor data and operational feedback. We use that data to refine performance, improve resilience and accelerate learning across the platform. This compounding feedback loop is extremely difficult to replicate outside of real world conditions and it is a key driver of our long term advantage. From an operator's perspective, the outcome is straightforward. One operator can effectively control large numbers of autonomous systems in real time. That is what enables scale. As deployment volumes continue to rise globally, that capability becomes increasingly essential. During the first quarter, we continue to see growing engagement for manufacturers developing next generation unmanned platforms. These programs are increasingly designed for higher volumes, lower cost systems and some distributed operating models that shift aligns directly with SSwarmer's architecture, and capabilities. Before going further, I want to briefly address our reported financial results because context here is important. As with many platform software companies operating alongside hardware manufacturers, revenue recognition in our business is tied to production and deployment timelines rather than contract execution. Our revenue model is generally tied to to customer deployments and activation timelines. As a result, reported revenue may fluctuate between periods based on production and fielding schedules, even as underlying platform adoption and customer engagement continue to expand. That dynamic creates timing gap in reported results, but it also reflects our shift towards significantly larger deployment opportunities over time. The more relevant indicator for our business is the scale potential of the platforms we support rather than short term revenue. At the same time, the market itself is evolving quickly. Earlier in our life cycle, a portion of our revenue was tied to legacy platform types, that have become less relevant as operational requirements have changed over the past year. We have deliberately shifted our focus towards next generation higher volume platform including first person view class systems and emerging interceptor architectures. Newer programs are moving through development and early production and we are finding the right partners in these spaces. This morning we announced. OPERATOR Okay, sir. You might be good. Alex Fink (President and U.S. CEO) At the same time, the market itself is evolving quickly. Earlier in our life cycle, A portion of our revenue was tied to legacy platform types that have become less relevant as operational requirements have changed over the past year. We have deliberately shifted our focus towards next generation higher volume platforms including first person view class systems that were awarded a 2.86 million dollar contract from NASA Bureau, a key of the drone producer. Under the contract, our battle-proven technology will be used on board SkyKnight Quadcopter bombers and other UAVs. The contract also includes optional upgrades that the customer can install which would add an additional 10.4 million if fully executed. These are the types of opportunities that we are beginning to realize and we are ensuring that we are positioning the business to capture them. We are also expanding our geographic footprint. While we have historically been focused on Eastern Europe because of the strong demand, last week we announced our expansion into Japan with support from Rakuten Group. Rakuten is one of the largest and best known companies in Japan and it agreed to sign on as our exclusive distributor in this market. This marks an important step in extending Swarmer's presence into one of the world's most advanced robotics and technology markets. Through this collaboration, we are introducing our Autonomy platform into Japan's unmanned systems ecosystem and supporting a range of potential applications, planning, defense infrastructure and industrial use cases. In connection with that effort, we recently completed the successful demonstration of an autonomous seek and hit operation using attritable, 8 inch drones. This type of validation is an important early step as we engage with partners and customers in the region. Taken together, these developments highlight the growing demand for our platform and the operating leverage embedded in our model. We are not only converting opportunities into initial deployments, but also structuring agreements with meaningful expansion potential while simultaneously opening new strategic markets. On the product side, our recently announced collaboration with Himera strengthens the performance and resilience of our Autonomy platform. By integrating their battlefield proven jam resistant communications into our next generation Autonomy stack, we're embedding a reliable backbone for multi vehicle operations in contested environments. More broadly, this reflects our strategy to unify sensing, communication, coordination and execution into a single interoperable system, making it easier for customers to deploy scalable, reliable autonomy across air, ground and maritime domains. We also announced yesterday that we are developing a deployable end to end drone interceptor kit. This is an important step in our product development as we are seeing an urgent demand for rapid interceptor solutions across the globe. As part of this initiative we are partnering with XDrone, Nordadynamics and Caradac Technologies. XDrone has delivered more than 70,000 drone systems to the front lines in Ukraine and has battle proven designs of both drones and interceptors. NORDA provides thermal guidance capabilities and their software has been used on more than 60,000 drones. Keradag provides sensing technology for incoming threats and has also delivered thousands of systems to the front lines already. Woma's role is to integrate these components into a unified autonomy and coordination layer. We believe that partial solutions like a radar by itself or an interceptor by itself are not the right way to protect critical infrastructure at scale. We are working to unify these battle tested technologies to create an end to end solution that can be deployed quickly and we believe that swarmit's platform can be the glue that binds these parts together put together. We believe that our approach to all of these partnerships will allow Swarming to succeed in the long run and be the de facto embedded software across multiple programs and platform types. From an operational standpoint, the first quarter was a period of intentional investment. We incurred material one time costs associated with our public listing and we increased spending in engineering and product developments as well. These investments are focused on expanding our ability to integrate with different hardware platforms and operate effectively across a broader set of environments and mission profiles. We also recently strengthened our leadership team with the addition of Mihailo Nestor as our Chief Product Officer. Mihailo brings meaningful experience scaling complex technology platforms, most recently at Kiev Star Group Ltd, which is a part of the Global Telecommunication Group Veon lpd. During his tenure he built and led the product organization responsible for large scale digital platforms and services used by know that he, will play an important role in advancing our product roadmap as we look ahead. We believe that due to the long procurement cycle typical of the defense sector, revenue is a trailing indicator. Internally, we'll monitor several indicators of progress including platform integrations, partner integrations, adoption within programs, and progression from development towards production and deployment. We look forward to sharing updates on these when we can. Looking ahead, our focus remains on expanding adoption, deepening integration with leading partners and supporting programs as they move into larger scale fielding. As these initiatives mature, we believe Swarmer can become a foundational software layer for autonomous and collaborative systems and support long term growth as deployment volumes increase across multiple domains. We are still early on the journey, but we are encouraged by the momentum we are seeing and the opportunities ahead. With that, I will turn it over to Brooks to walk through the financials in more detail. Brooks Ensign (Chief Financial Officer) Thank you Alex and good morning everyone. I will now review our results for the quarter. Revenue in the first quarter of 2026 was $20,325 compared to $110,704 in Q1 2025. The decline primarily reflects the wind down of residual service related deferred revenue associated with the company's historically largest customer in Ukraine. The company does not expect future revenue from this customer and is focused on expanding engagements with higher volume customers in Ukraine and international markets. The Company's revenue model is generally tied to customer deployment and software activation timelines. Revenue associated with software licenses is typically recognized upon activation, while a portion related to ongoing support and service obligations is deferred and recognized over the applicable service period. As a result, reported revenue in any given period may fluctuate based on customer production and deployment schedules as programs transition from development into broader fielding. Gross loss, for the first quarter of 2026 was 19,599 compared to gross profit of 65,162 in the first quarter of 2025, driven primarily by lower revenue during the period. Operating expenses for the first quarter of 2026 were $4.5 million compared to 800,000 in Q1 2025. As Alex mentioned, operating expenses increased primarily due to higher consulting and professional services expenses associated with becoming a public company, together with increased investment in engineering and product development initiatives. While certain public company transition costs incurred during the quarter were non recurring, we expect to continue investing in engineering, product development and strategic growth initiatives as we scale the business Net loss for the first quarter 2026 was $4.5 million compared to $0.7 million in the first quarter of 2025, primarily reflecting higher operating expenses. Turning to the balance sheet cash and Cash equivalents at March 31, 2026 totaled $2$3.5 million, compared to $9.3 million at December 31, 2025. The increase primarily reflects gross proceeds of approximately $17.3 million from the Company's IPO, together with approximately $3.5 million in gross proceeds from the sale of Series A1 Convertible Preferred Stock. And with that, we'll turn the call over to the operator for questions. Operator OPERATOR thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press Star one on your telephone keypad. The confirmation tone will indicate your line is in the question queue. You may press star2 to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the Star keys. One moment please. While we poll for your questions, our first questions come from the line of Alex Furman with Lucid Capital Markets. Please proceed with your questions. Alex Furman (Equity Analyst) Great. Thanks very much for taking my question, and congratulations on the successful listing recently wanted to ask about stand, it looks like about a $2.9 million award for the 16,000 software license, but then an option to upgrade the licenses for over $10 million. That's, that's almost five times increase in revenue if these licenses are upgraded. Can you help us understand what that upgrade would entail and what needs to happen in order for that upgrade to be exercised? Alex Fink (President and U.S. CEO) Sure. So the customer chose to install our full autonomy stack, the Swarmer platform, on a portion of their drones and our base operating system, Swarmer OS on everything else that they manufacture. And they have the option later on, even after those drones are deployed, to upgrade any drone with Swarmer OS on it to the full autonomy stack. So the Swarmer OS includes basic functionality like proper encryption,, security, secure messaging between the drones, video streaming to multiple viewers, etc. But it does not include any autonomy. The autonomy they are starting out with putting us on a portion of the drones on specific models, but they have the option to enable it everywhere essentially once their end user sees it in action and chooses to have it in every single drone deployed. Alex Furman (Equity Analyst) Okay, that's really helpful, appreciate that. And then interceptor system,, that seems like something that's obviously very high in demand right now. What kind of a timeline do you expect this collaboration to take? When could that start to actually be becoming deployable? Alex Fink (President and U.S. CEO) Let me start from the demand side, because we're absolutely seeing demand from multiple places around the globe. But the problem that we're seeing is that all the countries that need site-defense solutions, that need interceptors, probably wouldn't be able to actually use an interceptor if they bought one, because an interception process requires multiple steps. You need to be able to detect the threat, you need to be able to coordinate that information and transfer information about the target and where it's heading to the interception system. And then if you don't have interceptor pilots, which most countries around the world don't, you need to actually have a software system that guides that interceptor to the target and tracks it and actually terminates it. So all of these things need to work in concert with each other and we need to have this end to end solution. Ukraine right now has these partial solutions that are integrated manually by highly competent, highly trained, very experienced people. Most places don't have that. So we think that for Ukraine as well it would be useful. But for every other country around the world, it would be necessary to just provide a solution that works end to end, that starts with the detection method and ends with the target being terminated with all the steps in between being coordinated with a single software stack. So that's what we're building here to enable that and to be able to protect critical infrastructure around the west and around all the countries that we want to help. But for that to happen, we need to coordinate multiple players together. That's why you're seeing the detection company that we are working with, Caradag. That's why you're seeing the interceptor company itself, Edge Drone and norda, which provides thermal guidance for at least some of these scenarios. So the timeline, we will have to obviously work with these partners to see the complexity of the integration. My personal estimate would be that it's a matter of somewhere between two and four months, but it could be more complex or simpler, depending on what's under the hood and depending on how initial tests go. Obviously, when it comes to deploying something like this, you need to test it. You cannot just look at the software and estimate the integration. So we will update everyone as this progresses regarding the actual timeline, when we have a more precise estimate. Alex Furman (Equity Analyst) Okay, that's really exciting. Thanks for the update on that. And then lastly, you've got more than $20 million of cash on the balance sheet now following the IPO. You know, not a ton of operational expenses (OPEX) here. How do you prioritize investing in M and A versus Capex versus potentially adding more headcount? Alex Fink (President and U.S. CEO) Our goal was always to move as fast as possible and to create tools that help the war fighter and to have the greatest impact that we can on the battlefield to help the good guys win. So whatever allows us to move faster and achieve these goals is probably what's going to get the priority specifically. Am I audible now? You're audible. Yes. Okay, I apologize for that. So I think that primarily OPEX would be where we would be investing and hiring more engineers, especially on the integration side to work with more hardware. But all of the above, we need to move fast. We need to get this thing to work. We need it to be useful for the warfighter, and we need it to be deployed and scaled as quickly as possible. Okay. Alex Furman (Equity Analyst) Appreciate the insight. Thank you very much. OPERATOR Thank you. Our next question has come from the line of Michael Lattimore with Northland Capital Markets. Please proceed with your questions. Michael Lattimore (Equity Analyst) All right, Good morning. Congrats on being public here. You know, as you ramp over time, I assume this is a software model, so we should think of gross margins being, you know, 70% plus as you scale over time. Is that fair assessment? Brooks Ensign (Chief Financial Officer) Brooks, do you want to take this one? Yes, certainly that is a fair assessment, we have some service obligations for the revenue and some implementation. But yes, that, that is a reasonable estimation. Michael Lattimore (Equity Analyst) Okay, and then how do you price this? Is it like a percent of overall system value or like just more color on how price. how you price it. Alex Fink (President and U.S. CEO) Right. So it is to some extent a work in progress because the market itself is evolving. So we chose a per-unit licensing model because we see the volume of units being manufactured in this market going up exponentially. And so we think that that is the best way to scale along with the market. But what is the price per unit? That is definitely. It depends on the amount of effort of integrating this particular class of device. It depends on how scalable that class of device is. So for higher volume manufacturing, perhaps the prices could be slightly lower. For something that is manufactured in very low volume overall, like very large fixed wing loans, for example, the prices need to be higher because it's a large integration investment that only gets amortized over a small number of units. So it would be ideal if we could always just charge a certain percentage of the bill of materials,. But that is likely unrealistic. So we will try to figure out what pricing makes sense on a case by case basis. Michael Lattimore (Equity Analyst) And you've had a number of nice customer and partner announcements, I guess. Are those the main ones that should be generating revenue here or do you have several that are unannounced? I'm guessing there's plenty of companies that don't want to announce projects ahead of time. Alex Fink (President and U.S. CEO) There are certainly companies that don't want to announce projects ahead of time. And as I mentioned in the introduction to this, the announcements and the revenue tends to be a trailing indicator. So the work that you're seeing out in public right now typically reflects work that we've done more between three and nine months ago. So in many cases the pipeline is quite deep and we're looking forward to sharing more information when we're able to about what's next. Michael Lattimore (Equity Analyst) Great. And just last one for me, impressive that you guys have had 100,000 combat missions,. Can you get a little bit more detail on those missions? Maybe you know how many drones were in operation per mission? Were they kinetic strikes or surveillance? Yeah, just one more color on that would be great. Alex Fink (President and U.S. CEO) So we need to be somewhat careful and only expose things that we were authorized to expose. So I think that we've shared previously that the first combat mission started in April 2024. Initially it was relatively simple. Operations like multi drone reconnaissance or mining started with 3, grew to somewhere between 8 and 10. But these were relatively large drones early on, and the types of autonomy that were run in these missions also vary. So early on, we had a lot of engagements that were semi autonomous where we would control the drones on the way to the target area. More autonomous missions where we would control recon drones to send a video feed of the target area back to an operator. The operator would paint the targets on the screen, and then we would control the attack drones that engage the target. And in fact, we would also decide which attack drone takes which target. That was not a decision for the operator to make. That was a decision for the drones that are in the target. I'm sorry, was I audible for the last part of this? The last 15 seconds was not. Okay, I apologize. This conference system is creating some issues. So, yes, we would determine which attack drone engages which target because that information is more available in the target area and better made based on who has the highest probability of hitting it. These are the missions that are primarily running now, but we are progressing along with the hardware. When we integrate new hardware, new types of mission templates become available. Michael Lattimore (Equity Analyst) Okay, great. Thanks very much. OPERATOR Thank you so much. We have reached the end of our question and answer session. With that, I'd like to turn the call back over to Alex Fink for any closing comments. Alex Fink (President and U.S. CEO) Thanks, everyone, for joining us today. As a reminder, you can find out more about our company, receive additional updates, and learn about upcoming events from the investor relations section of our website. We look forward to updating you on the exciting progress we are making in defense and technology markets. Finally, I'd like to thank our employees, partners, and shareholders for their continued support. Operator. Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice. UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. 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