XTIA

Company to Provide Second Quarter 2026 Earnings Update DALLAS, July 22, 2026 /PRNewswire/ -- XTI Aerospace, Inc. (Nasdaq: XTIA) ("XTI Aerospace," "XTI" or the "Company"), a publicly traded aerospace and defense company operating across drone distribution, unmanned systems and advanced manufacturing markets and parent company of Drone Nerds, LLC ("Drone Nerds"), a leading drone solutions platform serving enterprise and government customers, today announced that it will release its second quarter 2026 financial results on August 12, 2026, before the market opens. In conjunction with the earnings release, management will host an earnings webcast on August 12, 2026, at 3:30 PM CT (4:30 PM ET), which will consist of a video-based question and answer session with Scott Pomeroy, Chief Executive Officer, Brooke Turk, Chief Financial Officer and Jeremy Schneiderman, Chief Executive Officer, Drone Nerds. During the webcast, management will review the Company's second quarter 2026 financial results and provide updates on the continued execution of XTI's strategic transformation. The discussion will highlight operational progress, key cost reduction initiatives, commercial activity across its core businesses and progress toward positive average monthly cash flow. Management will also discuss how these initiatives are expected to strengthen operating performance and position the Company for sustainable growth in the rapidly expanding U.S. drone market during the second half of 2026. Rather than reading scripted remarks during the call, XTI will post prepared remarks, providing additional detail and context regarding the Company's financial results and business updates, to the Investor Relations section of its website at xtiaerospace.com, under "IR News & Events" on August 12 after the earnings release is issued, allowing more time in the call for live questions and answers. To participate in the call, please register in advance using this link: XTI Aerospace August 12 earnings call. The registration link is also available on the Investor Relations section of the Company's website under "IR News & Events." Dial-in information will be provided upon registration. A replay of the event will be available in the Investor Relations section of the Company's website under "IR News & Events" following the conclusion of the call and will remain available for at least 30 days. About XTI Aerospace, Inc. XTI Aerospace, Inc. (Nasdaq: XTIA) is a publicly traded aerospace company providing unmanned aircraft systems ("UAS") solutions through its commercial drone solutions division, operated through Drone Nerds, LLC and two development-stage divisions focused on autonomous defense systems and domestic manufacturing of unmanned systems components designed to support federal procurement and sourcing requirements. XTI's commercial drone solutions business provides hardware distribution, training, service, repair, and lifecycle support to enterprise, public safety and government customers. XTI Aerospace is headquartered in Dallas, Texas. For more information about XTI, please visit xtiaerospace.com and follow XTI on LinkedIn, Instagram, X, and YouTube. Contacts: General inquiries:Email: [email protected]: https://xtiaerospace.com/contact Investor Relations:[email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/xti-aerospace-schedules-second-quarter-2026-earnings-webcast-302831617.html

This article first appeared on GuruFocus. Release Date: May 14, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. XTI Aerospace Inc (NASDAQ:XTIA) has transitioned into a revenue-generating unmanned systems platform, focusing on operational execution, margin improvement, and cash flow discipline. The company expects to achieve positive and growing cash flow from operations starting in the third quarter of 2026 as revenue scales and operating efficiencies improve. There is broad-based demand across various sectors such as public safety, infrastructure, utilities, agriculture, education, surveying, mining, and energy. XTI Aerospace Inc (NASDAQ:XTIA) benefits from growing industry demand for NDAA compliant and domestically aligned drone solutions, enhancing its market position. The company has a strong liquidity position with $15.2 million in unrestricted cash and cash equivalents and additional liquidity available under its asset-based lending arrangement. The first quarter of 2026 was marked by a slower performance, traditionally being one of the slower quarters for Drone Nerds. There were major supply constraints in the fourth quarter of 2024, which affected sales and carried over into Q1 2025, making year-over-year comparisons challenging. The company is still in the process of reducing cash burn, having reported a negative EBITDA of $5 million in Q1 2026. The market for US enterprise drone distribution and services is highly fragmented, with over 100 regional resellers, posing competitive challenges. XTI Aerospace Inc (NASDAQ:XTIA) is still focusing on cost reduction and realigning its cost structure, indicating ongoing financial adjustments. Warning! GuruFocus has detected 4 Warning Signs with XTIA. Is XTIA fairly valued? Test your thesis with our free DCF calculator. Q: How should investors think about the difference between average EBITDA generation during the second half of 2026 versus the EBITDA run rate the company expects to exit the year with? A: Scott Pomeroy, CEO, explained that the quarter-to-quarter performance is not flat. Revenue and EBITDA are expected to grow throughout the second half of the year, with cost efficiencies continuing to take effect. The fourth quarter is anticipated to be more reflective of the ongoing run rate. Q: How should investors think about the seasonality and quarterly revenue cadence during 2026? A: Jeremy Schneiderman, CEO of Drone Nerds, noted that the first quarter is traditionally slower, with a ramp-up into the fourth quarter due to procurement cycles and seasonality in sectors like agriculture and public safety. The fourth quarter is typically the strongest. Q: How do you size the US enterprise drone distribution and services TAM, and how fragmented is the market? A: Jeremy Schneiderman stated that the US enterprise drone distribution and services TAM is in the multi-billion dollar range. Drone Nerds, with over $100 million in revenue, sees a market with about 100 regional resellers, mostly under $5 million, presenting consolidation opportunities. Q: What gives management confidence that XTI can achieve positive cash flow in Q3 2026? A: Brooke Turk, CFO, highlighted that the company is at an inflection point, with decreasing cash burn and expanding margins. The company expects revenue to ramp up and costs to come down, leading to positive cash flow in Q3 and Q4. Q: How does Drone Nerds differentiate itself from a traditional drone reseller? A: Jeremy Schneiderman emphasized that Drone Nerds is not just a reseller but a platform between manufacturers and enterprise customers. They offer a wide range of products, repair infrastructure, training capacity, and the ability to scale large programs, setting them apart from typical resellers. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Thursday, May 14, 2026, at 4:30 p.m. ET Chief Executive Officer — Scott Pomeroy Chief Financial Officer — Brooke Turk Chief Executive Officer, DroneNerds — Jeremy Schneiderman Need a quote from a Motley Fool analyst? Email [email protected] Operator: Good afternoon, and welcome to the XTI First Quarter 26 Earnings Call. Joining us today from XTI are Scott Pomeroy, chief executive officer, Brooke Turk, chief financial officer, and Jeremy Schneiderman, CEO of DroneNerds. Before we begin, please note that certain statements made during today's call may be considered forward-looking statements within the meaning of federal securities laws. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. A information regarding these risks and uncertainties can be found in the company's filings with the Securities and Exchange Commission. The forward-looking statements made today speak only as of today, and the company undertakes no obligation to update these statements except as required by law. In addition, during this call, we will make reference to certain non GAAP financial measures. A reconciliation of these non GAAP financial measures are available on the Investor Relations section of our website. Earlier today, the company posted its earnings news release slide presentation, and prepared remarks to the investor relations section of its website. Today's session will be conducted as a live video based earnings call. Scott Pomeroy, Brooke Turk, and Jeremy Schneiderman will be responding to questions from The discussion today will focus on first quarter 26 results. I will now turn the call over to Scott Pomeroy. Mr. Pomeroy, you may begin. Scott Pomeroy: Great. Thank you. Thanks, everybody, for joining us here this afternoon. it is great to have you here. As the moderator just pointed out, we did file earlier today, the along with the 10 q, the earnings release, as well as the script. As with last quarter, our objective with that is really to avoid having to spend time on this call reading through the script and maximizing the time that we have to answer questions. So we hope that continues to be an effective, mechanism and platform for you. And we will continue to do that. We have got good feedback. That it is helpful to carve out the time just for Q&A So we intend to do that. Really, since the acquisition in November, we have continued the transformational journey, of XTI. And we are now a revenue generating unmanned systems platform. We are focused on operational execution, on margin improvement and cash flow discipline. The 2026 marks the first quarter that we have had the full operating performance of DroneNerds in our results. And we have believe that we have demonstrated meaningful progress in reducing costs, improving operational alignment, and lowering our cash burn. That will continue throughout the balance of the year. But we are off to a good start. Based on our current operating plan, we continue to expect, to achieve positive and growing cash flow from operations. Throughout the balance of the year starting in the third quarter. As revenue scales and operating efficiencies improve. During the quarter, we continued to see broad based demand. in enterprise and government markets. That includes areas such as public safety, infrastructure, utilities, agriculture, education, surveying, mining, and energy customers. We also continue to benefit from the growing industry demand for NDAA compliant and domestically aligned drone solutions. As customers are increasingly focused on secure supply chains, and regulatory compliance. Jeremy can provide more color on that as we continue with our conversation here today. Our enterprise B2B pipeline strengthened throughout the quarter, and the momentum has continued into the second quarter. Based on the current operating plan, we continue to expect full year 2026 revenue of approximately $160 million or greater. With projected gross margins of between 19%-21% and EBITDA margins of between 9%-10%. Ended the quarter with about $15.2 million in unrestricted cash, and cash equivalents along with some substantial liquidity available under our asset based lending arrangement. As we move through the remainder of 2026, our priorities remain clear. it is about improving margins, strengthening liquidity, reducing cash burn, and continuing to build long term shareholder value through disciplined execution. With that, let me turn it back over to the moderator. Operator: Thank you. At this time, we will now open the floor for questions. If you would like to ask a question, please click on the raise hand button which can be found on the black bar at the bottom of your screen. When it is your turn, you will receive a screen from the host allowing you to talk, and then you will hear your name called. Please accept, unmute your audio, and ask your question. We will wait 1 moment to allow the queue to form. Our first question is a written submission. Our question is, how should investors think about the difference between average EBITDA generation during the 2026 versus the EBITDA run rate the company expects to exit the year with. Scott Pomeroy: Yeah. Great question. So as you know, we guided to second half of between 2 and 3 million of positive cash flow. I think the real key point there to keep in mind is that the quarter to quarter performance is not flat. We expect revenue and EBITDA to continue to grow. Throughout the second half of the year. And cost efficiencies and initiatives to continue to take effect. So you cannot really take the guidance of the full entire second half and extrapolate that into an average monthly or average quarter performance. The strength of the cash flows continues to grow as the year progresses. So it is really you know, we are looking to a solid fourth quarter and end of fourth quarter as being much more reflective of what our ongoing run rate will be. Operator: Next question is a written submission. Our question is, how should investors think about the seasonality and quarterly revenue cadence during 2026? Scott Pomeroy: Jeremy, why don’t you take that 1? Jeremy Schneiderman: Well, first, thank you, everybody, for joining us today. To tell you a little bit his historically about DroneNerds, you know, first quarter has always traditionally been 1 of our slower quarters, and we always see an eventual ramp up into the fourth quarter for multiple reasons. You have procurement cycles, You have seasonality in agriculture. Public safety has different budget timelines. But historically, if you look at our business, fourth quarter is always our strongest quarter with that ramp up into fourth quarter. If you were to compare Q1 26 versus Q1 25, you would have to really look a little deeper into what happened in Q1 2025. We had major supply constraints at the 2024 where we saw some of those sales move over into Q1 25. So if you were to look comparatively over the 2, it really would not be true indicative of what normal business would look like. Scott Pomeroy: So Q1 was a little bit overstated Jeremy, of 2025 and Q4 understated. Jeremy Schneiderman: Correct. Scott Pomeroy: In that demand delay. Operator: Next question is a written submission. Our question is, DroneNerds is the largest US enterprise drone distributor. With a $100 million-plus in 2024 revenue. Third party research from Grand View, drone industry insights, and Fortune Business Insights sizes the US commercial drone market in the roughly $5 billion to $8 billion range today, growing double digits. With strong policy tailwinds from executive order 14 thousand FCC foreign UAS action, and DAO Drone Dominance. That implies DroneNerds holds roughly 1% to 1.5% share of the multibillion dollar high fragmented market. As the number 1 domestic player, how do you size the US enterprise drone distribution and services TAM, and how fragmented is the long tail behind you? Scott Pomeroy: Jeremy, maybe touch on that, and then we could also weigh in a little bit. Jeremy Schneiderman: So we see the US enterprise drone distribution and services TAM as a multibillion dollar range. With our position at over a $100 million in revenue, we are the number 1 domestic player in the market, we see a market where the tail is about 100 plus regional resellers. Mostly that sub $5 million range. With very little infrastructure to deliver really robust solutions that we provide So we see that as a very opportunistic consolidation opportunity for us. And our position in the market is we are set up for success to capture it. Operator: The follow-up. Given that fragmentation, the policy environment, strategic capital, how should investors think about Drone Nerd's runway to consolidate share organically? And through tuck in M&A over the next 24 to 36 months. Scott Pomeroy: Well, I think there is a couple ways that you know, we should be looking at that. Obviously, as Jeremy just outlined, those being the largest by orders of magnitude in the domestically here in the US with really no close second player, it sets the market up strategically for interesting consolidation opportunities. And so we will look to capitalize on that. It also suggests that with some internal investment, we can compete organically and take share. So if I look at the broad base of this industry, that is growing by any mechanism or by any forecast you want to look at it is growing at 20% plus. So you have got a business that is going to grow at 20% plus just by keeping holding share. And then our ability to continue to consolidate and take share should add fuel to that growth rate. Over time. So we think these opportunities trade our direction. We will be opportunistic in looking at that. We do not we do not need to go out and consolidate 100 companies. There are a handful that make good sense for us. To consider. The rest of them, it is a competitive dynamic. it is also a potential for margin expansion as well as you eliminate some of those additional players that are in the market. So we look at the entire landscape as it being ripe for consolidation, growth, and margin expansion. Operator: Our next question comes from Robert Barrow. Robert, please unmute your line and ask your question. Robert, you may now unmute your line and ask your question. We are going to move to our next question. Our next question comes from Matthew Galinko with The Maxim Group. Matthew, please unmute your line and ask your question. Analyst (Matthew Galinko): Hey. Good afternoon. Thanks for taking my question. I was hoping you could maybe touch on what your visibility into, you know, the next 9 months, 12 months is for revenue for DroneNerds and sort of how you build that forecast? Scott Pomeroy: Thank you. Jeremy, maybe touch on that just a little bit as you look at your pipeline and your forward looking elements of it and maybe a generalization. Jeremy Schneiderman: Yeah. Scott Pomeroy: We have not we have not given quarterly guidance. We have just given annual But you know, we have talked about the first quarter. Being the low watermark, the fourth quarter being the high watermark. Of the year, but maybe just some general commentary on that. Jeremy Schneiderman: Yeah. Great question. Really, it is about how are we going to execute to hit the $160 million number that we have put out there. You know, what we do really, really well is serve the enterprise market. You know, we have increased our revenue year over year with very strategic investments focusing on that segment of our business. What we have done this year, and we have just started to implement, is increase our enterprise direct sales channel with investments into our sales team. We have made strategic investments into marketing specifically into those verticals. And with deep focus on specific verticals, like public safety, agriculture. These are the verticals that we are really starting to see that hockey stick growth. And we know we need to be in the center of that With the recent FCC regulations that have passed, we have seen an uptick for NDA compliant products. We are well positioned to serve that market because if you look at kind of what we do, we are kind of the centerpiece for manufacturers to get to customers. With the NDA solutions, they are so much more complicated full suite of solutions to sell that we are making a heavy effort into making sure that we are capitalizing in that marketplace. We are starting to see, as Scott mentioned, our pipeline is larger than it was year over year. Which is a good indication of what sales are going to be. We are going to continue to make those investments into those pro programs that is going to continue that shift into our highest margin segment of our business. Operator: Our next question is a written submission. Our question is, why does management believe DroneNerds is differentiated versus a traditional drone reseller? Scott Pomeroy: Jeremy, I am gonna keep coming to you. I think that is a good 1 for you to touch on. Jeremy Schneiderman: Great question. So we do not we do not think of ourselves as a reseller, and I do not think the market does either. Right? A typical reseller is 1 that would just move boxes. We look at ourselves as a platform between manufacturers and the enterprise customer. And it comes down to different things that are kind of our secret sauce. Right? You know, our scale where we are in our scale the guy that is just a reseller moving simple box they do not have the plethora of inventory and the portfolio of products that we have. They do not have the repair infrastructure. The training capacity, really what it takes to scale up the largest programs in the United States. A reseller is really good at selling 1 or 2 boxes. But if you want to stand up a large program there is a lot more to it than just buying the drone. You know, having the right selection of products to serve enterprises is 1 of our keys. We have got I always say we have the largest toolbox in the industry. To sell a full solution, you have to have the right hardware, the right software, the right sensor, ultimately, the right service to stand behind it. To stand up the large programs. So we do not we do not see ourselves as your traditional reseller. We are much more sophisticated and pretty unmatched in the industry. Because of our scale. Operator: Our next question is a written submission. Our question is, what gives management confidence that XTI can achieve positive cash flow in quarter 26? Scott Pomeroy: Brooke, maybe you can take that 1. Brooke Turk: Hi, everyone. Good to see everybody. Yeah. So we are at a really important inflection point at the company, this year. As you saw, we have been steadily decreasing our cash burn as we reflected in our EBITDA results, we came down from a negative $10 million EBITDA in Q4 25, and down to negative $5 million in, at the end of Q1 26. So, we continue to, ramp our revenue. It will continue to ramp throughout the rest of the year, and it is expanding our margin. For the rest of the year, and then we are continuing to tighten our belts and cut additional costs. So what you are going to see is the lines are going to cross. And so as we continue to ramp up revenue and costs come down, you are going to see that starting to reflect in our Q3 and Q4 results. Operator: Our next question is a written submission. Our question is, what progress has the company made on liquidity and balance sheet stability? Scott Pomeroy: That sounds like a Brooke question. Brooke. Brooke Turk: Sure does. Sure. Yes. So we ended the quarter with about $15.2 million in cash and cash equivalents. As you know, we stood up a $20 million ABL with JPMorgan in Q1. Of which we had drawn by the end of the quarter about $4.8 million down, and then that left us with a little over $8 million in borrowing base still to borrow against. So still strong liquidity available to us. So, you know, we guided that we will end the year at around, $15 to $17 million in cash. So we feel like the balance sheet is very stable. This year. Operator: Our next question is a written submission. What gives management confidence that XTI can achieve positive cash flow quarter 26? Excuse me. We already asked that question. Our next question just asked. Scott Pomeroy: Yes. Is that a trick? Operator: This is a good time, I think, to prompt the audience. If anybody wants to raise their hand for a question, please click on the raise hand button, which can be found on the black bar at the bottom of your screen. When it is your turn, you will receive a message on your screen from the host, allowing you to talk. You will then hear your name called. Please accept, unmute your audio, and ask your question. We will wait another moment to allow the queue to form. Okay. Next question comes from Robert Barrow. Robert, please unmute your line and ask your question. A: Guys, how are you doing? And girls, I am sorry. Scott Pomeroy: Yeah. Good. A: Is there, with Drone well, we have all invested what we can because we trust the company and we trust what you guys are doing. And the biggest question is besides the US government military, you work with other countries also? With drones? Scott Pomeroy: Yeah. Jeremy, touch on that. I think it is a good question. Jeremy Schneiderman: Great question. We do provide other parts of the world drones. We have strategic partnership in Colombia where we provide into Colombia. the Latin market is a significant market for us as well. And we have also supported Poland, with technology as well as Israel. So we are a global company. Scott Pomeroy: Yep. Good. Thank you. Operator: Our next question comes from Matthew Galinko. Matthew, please unmute your line and ask your question. Scott Pomeroy: Hey, Matt. Matthew? Analyst (Matthew Galinko): Hey. Thanks for taking my follow-up. Maybe I guess, looking a little bit past this year and into when it gets a little bit more complex to deliver NDAA and kind of qualify, you know, domestic source. Products. You know, how do you see that affecting your gross margin? And EBITDA margin over time? And, you know, should we expect to see some of the incremental value that you deliver in the margin and what time frame should we be thinking about for that? Scott Pomeroy: Why do not you start that, Jeremy, and then I will I will pile on a little bit. Jeremy Schneiderman: So I would say we are already selling NDAA products and Blue UAS products today. We have been since the since the Blue UAS program has started, So it is I think it is only going to get better. I do not think it is going to get more difficult. I think your question mentioned it is going to get more complicated. I think it is actually going to get easier in the future as our partners that are our OEMs that are providing this technology, you know, continue to scale up. Scott Pomeroy: What I'd probably add to that, Matt, is as that scale occurs, the margin profile is better for us with those newer NDAA compliant sellers, OEMs. We expect the mix to work in our favor. Also, I think your question also implied the notion of some of these other services that we provide, and the enhancement of those services tends to drive margin up as well, which we would agree. Right now the services tends to be a quite a low percentage of our overall mix. As we see more in the area of repair, maintenance, training, et cetera, some of the areas that Jeremy talked to, we would expect margin to expand. You know, the question behind the question is what do we believe about margins over time? You know, this is a business that can see a fairly, as a percentage, a fairly significant increase from where we are today. You know, it's not infinite, but, you know, we can see better than the 19%-21% that we've guided to. We would expect that to be higher in future years. Operator: As a final reminder, if you would like to ask a question, please click on the Raise Hand button, which can be found on the black bar at the bottom of your screen. When it is your turn, you will receive a message on your screen from the host allowing you to talk, and then you will hear your name called. Please accept, unmute your audio, and ask your question. We will wait for one moment to allow the queue to form. Our final question will be a follow-up from Robert Barrow. Robert, please unmute your line and ask your question. Robert Barrow: Yeah. When it gets to $10 a share, can I get a vest like yours? Scott Pomeroy: You know, I'd probably get you a vest sooner than that, Robert. I'm not gonna be greedy. I won't wait till $10. Robert Barrow: I just figured I'd add a little lightheartedness to the whole thing. Scott Pomeroy: Yeah. No, thank you very much. Robert Barrow: Yeah. Scott Pomeroy: Thank you. As the last question, you know, I do want to again reiterate our gratitude for you spending time with us here again this afternoon. Hopefully the, you know, the information is substantive, it's on point, it's clarifying. Our objective is to be transparent and forthcoming with both our performance, our current performance and our anticipated performance with the business. Our focus again as a business is really on the Drone Nerds platform, our unmanned systems platform. We think we're extremely well-positioned as a company. Many of you may have heard, you know, my use of the predicate of Amazon. I know it's a bold statement, but I think it's absolutely appropriate that Drone Nerds is the Amazon of the drone industry and the commercial and enterprise space. What does that mean at the end of the day? Well, what that means is, we understand all the demand signals that are out there. We know why people are buying, we know what they're buying, we know what matters, we know what configurations matter to them. Then that kind of insight evidenced through the data gives us almost infinite ability to maneuver in the future. Whether that's in the area of manufacturing or that's in the area of really expanding ourselves into government work. None of that is possible if we don't have our base solid and solidified. Right now, our focus is squarely on ensuring that Drone Nerds is optimized fully. We will be opportunistic in other areas. We will limit any kind of spending that we're doing right now on anything other than Drone Nerds. We'll just simply allow the market to evolve around us as we enjoy the fruits of the labor here with Drone Nerds. We continue to see revenue growth, margin expansion, cash flow improvement. Once you have that base solidified, there's a number of things you can do with the business. Until that's, you know, until your house is in order, you can't. We're, you know, we're in the process of coming off of a longstanding development, a design and development business. We had to focus on radical cost reduction. We're continuing that in through the second quarter as we realign our cost structure for the business that we are today. You'll see that in the numbers as each quarter progresses. We anticipate, you know, very productive, very significant things for the company in the future. Thank you all for your support, for your continued interest in us. You know, we just invite all of you to keep taking a look at us, holding us accountable, and we'll keep bringing you the information. Thanks. Operator: This concludes today's call. Thank you for joining us. You may now disconnect. Before you buy stock in XTI Aerospace, 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 XTI Aerospace wasn’t one of them. The 10 stocks that made the cut 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 $481,589!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,345,714!* Now, it’s worth noting Stock Advisor’s total average return is 993% — a market-crushing outperformance compared to 208% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 23, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. XTI Aerospace (XTIA) Q1 2026 Earnings Transcript was originally published by The Motley Fool

Interested in XTI Aerospace, Inc.? Here are five stocks we like better. XTI Aerospace said Q1 2026 was the first full quarter reflecting its Drone Nerds acquisition, and management stressed cost cuts, margin improvement, and a path to positive operating cash flow starting in Q3. The company reaffirmed full-year 2026 guidance for about $160 million or more in revenue, with gross margins of 19% to 21% and EBITDA margins of 9% to 10%, while also pointing to $2 million to $3 million of positive cash flow in the second half. Management said Drone Nerds should drive the revenue ramp, supported by growing enterprise and government demand for NDAA-compliant and domestically aligned drone solutions, especially in public safety, agriculture, and other industrial verticals. XTI Aerospace (NASDAQ:XTIA) said its first quarter of 2026 marked the first full reporting period that included the operating performance of Drone Nerds, the unmanned systems platform it acquired in November, as management emphasized cost reduction, margin improvement and a path toward positive cash flow later this year. Chief Executive Officer Scott Pomeroy said the company has continued a “transformational journey” since the acquisition and is now a revenue-generating unmanned systems platform focused on operational execution. He said XTI has made “meaningful progress” in reducing costs, improving alignment and lowering cash burn. → Micron Investors Face a High-Stakes Moment After the Latest Rally “Based on our current operating plan, we continue to expect to achieve positive and growing cash flow from operations throughout the balance of the year, starting in the third quarter as revenue scales and operating efficiencies improve,” Pomeroy said. XTI reiterated its expectation for full-year 2026 revenue of approximately $160 million or greater. The company also maintained projected gross margins of 19% to 21% and EBITDA margins of 9% to 10%. → How Bad Could Tesla’s Cybertruck Recall Be for Shares? In response to an investor question about second-half EBITDA generation, Pomeroy said investors should not view the second half as flat from quarter to quarter. He said the company expects revenue and EBITDA to grow as the year progresses and as cost initiatives take effect. “We’re looking to a solid fourth quarter and end of fourth quarter as being much more reflective of what our ongoing run rate will be,” Pomeroy said. He also referenced prior guidance for $2 million to $3 million of positive cash flow in the second half of 2026. → Reading the Stripes: Is The Industrial Recession Over? The company ended the quarter with about $15.2 million in unrestricted cash and cash equivalents. In comments attributed during the call to Chief Financial Officer Brooke Turk, management said XTI established a $20 million asset-based lending facility with JPMorgan in the first quarter, had drawn about $4.8 million by quarter-end and had a little more than $8 million of borrowing base still available. The company said it expects to end the year with about $15 million to $17 million in cash. Drone Nerds CEO Jeremy Schneiderman said the first quarter has historically been one of the company’s slower periods, with revenue typically ramping into the fourth quarter. He cited procurement cycles, agricultural seasonality and varying public safety budget timelines as factors behind the cadence. Schneiderman also cautioned that comparing the first quarter of 2026 with the first quarter of 2025 requires additional context. He said supply constraints in the fourth quarter of 2024 pushed some sales into the first quarter of 2025, making that period less representative of a normal seasonal pattern. Asked about visibility into the coming nine to 12 months, Schneiderman said Drone Nerds is focused on execution against the company’s $160 million revenue target. He said the company has increased its enterprise direct sales channel, invested in marketing and is focusing on verticals such as public safety and agriculture, where it is seeing strong growth. “Our pipeline is larger than it was year-over-year, which is a good indication of what sales are gonna be,” Schneiderman said. Pomeroy said the company continued to see broad-based demand across enterprise and government markets, including public safety, infrastructure, utilities, agriculture, education, surveying, mining and energy. He said the company is benefiting from growing demand for NDAA-compliant and domestically aligned drone solutions as customers place more emphasis on secure supply chains and regulatory compliance. Schneiderman said Drone Nerds is already selling NDAA-compliant products and Blue UAS products, adding that he expects the market to become easier to serve as original equipment manufacturer partners scale up. Pomeroy said the margin profile for newer NDAA-compliant OEMs is better for XTI and that a favorable product mix could help margins over time. Pomeroy also said services such as repair, maintenance and training could support margin expansion, though he noted that services currently represent a relatively low percentage of the overall mix. He said the company believes margins can improve beyond the 19% to 21% range it has guided for 2026 in future years. Schneiderman described the U.S. enterprise drone distribution and services market as a multi-billion-dollar opportunity. He said Drone Nerds, with more than $100 million in revenue, is the largest domestic player, while the rest of the market includes more than 100 regional resellers, many with less than $5 million in revenue and limited infrastructure to deliver broader solutions. Pomeroy said that fragmentation creates opportunities both for organic share gains and selective consolidation. He said the company does not need to acquire a large number of businesses but may consider “a handful” of companies that make strategic sense. Schneiderman said Drone Nerds is differentiated from a traditional drone reseller because it operates as a platform between manufacturers and enterprise customers. He cited inventory scale, a broad product portfolio, repair infrastructure and training capacity as key advantages. “A reseller is really good at selling one or two boxes, but if you wanna stand up a large program, there’s a lot more to it than just buying the drone,” Schneiderman said. During the closing remarks, Pomeroy said XTI’s focus is “squarely” on optimizing Drone Nerds. He said the company will limit spending on areas outside Drone Nerds while continuing to realign its cost structure after moving away from what he described as a longstanding design and development business. Schneiderman also said Drone Nerds operates globally, citing a strategic partnership in Colombia, activity in the Latin American market and support for Poland and Israel with technology. Pomeroy said XTI expects continued revenue growth, margin expansion and cash flow improvement, while emphasizing the need to keep the company’s operating base solid before pursuing broader opportunities. XTI Aerospace Inc (NASDAQ: XTIA) is an early‐stage aerospace company headquartered in Englewood, Colorado, focused on the design and development of vertical takeoff and landing (VTOL) aircraft for the business and specialty aviation markets. The company's core mission is to deliver a next‐generation hybrid wing–body aircraft capable of both VTOL and short-takeoff and landing (STOL) operations, addressing the growing demand for point-to-point air transportation without the need for traditional airport infrastructure. The company's flagship product, the TriFan 600, is a six- to eight-seat business aircraft powered by a proprietary tri-fan propulsion system. 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 "XTI Aerospace Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

DALLAS, May 14, 2026 /PRNewswire/ -- XTI Aerospace, Inc. (Nasdaq: XTIA) ("XTI Aerospace," "XTI," or the "Company"), an aerospace and advanced technology platform and parent company of Drone Nerds, LLC, ("Drone Nerds"), a leading drone solutions platform serving commercial, enterprise and government customers, today announced financial results for its first quarter ended March 31, 2026, and provided an update on the Company's outlook for 2026. 2026 first quarter highlights (Inpixon results excluded and reflected in discontinued operations): Revenue of $27.7 million Gross profit of $5.1 million Gross profit as a percentage of revenue of 18.6 percent 2026 Financial Outlook and Guidance(1):The Company expects to achieve the following targets for the full year 2026: Full year 2026 revenue of $160 million or greater Full year 2026 gross profit as a percentage of revenue of 19 percent to 21 percent Breakeven cash flow in the third quarter 2026 Cash at year-end in the range of $15 million to $17 million Drone Nerds earnings before interest, income taxes, depreciation and amortization ("EBITDA") as a percentage of revenue in the range of 9 percent to 10 percent End 2026 with $5 million to $10 million of availability under its asset-based lending ("ABL") facility Second-half of 2026 consolidated adjusted EBITDA in the range of $2 million to $3 million or greater (1) Please refer to the "Non-GAAP Measures" and Schedule 1 for the definitions and reconciliations of our Non-GAAP financial measures including "Adjusted EBITDA". 2026 first quarter events: In February 2026, completed the divestiture of the Inpixon RTLS business to further streamline the Company's focus on its drone platform and core growth initiatives In February 2026, secured $20 million Asset-Based Lending ("ABL") credit facility with JPMorgan to support growth and liquidity, subject to customary borrowing conditions, covenants and availability Received approximately $7.4 million in net proceeds from the exercise of warrants during the quarter Appointed Clinton Weber and Jonathan Ornstein to XTI's Board of Directors, further enhancing the Board's aviation, aerospace and unmanned systems experience "We believe the first quarter demonstrated continued progress in repositioning XTI Aerospace around a more scalable and financially disciplined operating model," said Scott Pomeroy, Chairman and Chief Executive Officer of XTI Aerospace. "Drone Nerds continued to expand its enterprise and government engagement, pipeline activity strengthened entering the second quarter, and we continued executing against our cost reduction and operational efficiency initiatives. Our focus remains on disciplined execution, margin improvement, liquidity management, and building long-term shareholder value." Liquidity and Capital ResourcesAs of March 31, 2026, the Company had $15.2 million of unrestricted cash and cash equivalents, $4.6 million drawn and $8.1 million of remaining availability on the borrowing base under its credit facility. The Company expects to end the year between $15 million and $17 million in cash and cash equivalents. From a liquidity and cash flow perspective, the Company has made meaningful progress during the first quarter of 2026 and continued executing on its cost reduction and operational realignment initiatives. Adjusted EBITDA improved significantly compared to prior periods, with adjusted EBITDA loss improving from approximately negative $10 million in fourth quarter 2025 to approximately negative $5 million this quarter, reflecting the impact of actions taken to streamline operations, reduce spending and better align its cost structure with the current scale and focus of the business. The Company is on track to cross a key threshold which should result in the permanent transition from its historical cash burn to positive cash flow during the third quarter of 2026. From there, the Company expects to continue to deliver ongoing and increasing positive cash flow during its fourth quarter of 2026 and beyond. In addition, the Company expects to have between $5 million and $10 million in available capacity under its ABL facility as of December 31, 2026. Based on management's current operating plans and assumptions, including expected cash flows from the Drone Nerds business and availability under the Company's ABL credit facility, the Company believes its existing sources of liquidity are intended to support the ordinary-course operating needs of the Drone Nerds business. The Company may, however, require or seek additional capital to support strategic acquisitions and to address the Company's overall capital structure. Unaudited Supplemental Combined Financial InformationFor purposes of this release, the Company defines "pro forma" as unaudited supplemental combined financial information. The Company has provided unaudited supplemental financial information of the combined company in this press release. The following financial information combines XTI and Drone Nerds historical operating results as if the businesses had been operated together on a combined basis during prior periods. This financial information is intended to illustrate the current operating footprint of the Company following the acquisition of Drone Nerds and divestiture of the Company's Industrial IoT / Real-Time Location Systems business. The unaudited supplemental combined financial information is not "pro forma" financial information as that term is used in Article 11 of Regulation S-X. The unaudited supplemental combined financial information was not prepared in accordance with Article 11 of Regulation S-X and differs from the unaudited pro forma condensed combined financial information included in the Current Report on Form 8-K/A filed with the SEC on February 9, 2026 (the "Pro Forma 8-K Filing"), which was prepared in accordance with Article 11 of Regulation S-X. The unaudited supplemental combined financial information was not prepared in accordance with Article 11 of Regulation S-X and is presented for illustrative purposes to assist investors in understanding the operational performance of the combined business, timing and operational impact of the acquisition, and integration of the combined business, and should not be considered a substitute for the pro forma financial information included in the Company's prior filings prepared in accordance with Article 11 of Regulation S-X. Consequently, the unaudited supplemental combined financial information is intentionally different from, but does not supersede, the pro forma financial information set forth in the Pro Forma 8-K Filing or the pro forma financial information set forth in the Company's most recent annual report on Form 10-K In addition, the unaudited supplemental combined financial information does not purport to indicate the results that actually would have been obtained had the companies been operated together during the periods presented, or which may be realized in the future. The unaudited supplemental combined financial information has no impact on XTI's or Drone Nerds' previously reported consolidated balance sheets or statements of operations, cash flows or equity. The unaudited supplemental combined financial information excludes non-recurring transaction-related costs associated with the Drone Nerds acquisition. Conference Call and Webcast (Live Q&A Format) The Company will post prepared remarks to the Investor Relations section of its website before the market opens on Thursday, May 14, 2026. These remarks are intended to provide additional detail and context regarding the Company's financial results and business update. The Company will host a live webcast on Thursday, May 14, 2026 at 3:30 PM CT (4:30 PM ET), which will consist of a video-based question and answer session with Scott Pomeroy, Chief Executive Officer, Jeremy Schneiderman, Chief Executive Officer of Drone Nerds, and Brooke Turk, Chief Financial Officer. As part of this format, prepared remarks will not be read but will be available in the Investor Relations section of the Company's website at xtiaerospace.com under "IR News & Events." Investors and analysts are invited to participate and may register in advance using this link: XTI Aerospace May 14 Earnings Webcast. The registration link is also available in the "Investor Relations" section of the Company's website under "IR News & Events." Dial-in information will be included upon registration. The replay of the event will be publicly available to all investors in the Investor Relations section, under "IR News & Events" section of the Company's website at xtiaerospace.com following the conclusion of the question and answer session and will remain available for 30 days. About XTI Aerospace, Inc. XTI Aerospace, Inc. (Nasdaq: XTIA) is an aerospace company providing unmanned aircraft systems ("UAS") solutions through its commercial drone solutions division, operated through Drone Nerds, LLC and two development-stage divisions focused on autonomous defense systems and domestic manufacturing of unmanned systems components designed to support federal procurement and sourcing requirements. XTI's commercial drone solutions business provides hardware distribution, training, service, repair, and lifecycle support to enterprise, public safety and government customers. XTI Aerospace is headquartered in Addison, Texas. For more information about XTI, please visit xtiaerospace.com and follow XTI on LinkedIn, Instagram, X, and YouTube. Cautionary Statement Regarding Forward-Looking StatementsThis press release contains certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact contained in this press release are forward-looking statements. Forward-looking statements may be identified by words such as "believe," "continue," "could," "would," "will," "expect," "intend," "plan," "target," "estimate," "project," or similar expressions. These statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied. Such risks include, but are not limited to, market adoption, regulatory requirements, supply chain conditions, technological development, integration of the acquired businesses, the Company's liquidity and ability to access additional capital on acceptable terms or at all, the Company's negative stockholders' equity and the sufficiency of its capital resources, and changes in applicable laws or regulations, customer demand variability and seasonal purchasing patterns, the Company's ability to achieve projected gross margins and operating cost reductions, working capital timing and inventory management, the outcome of pending legal proceedings involving the Company and its subsidiaries, the Company's ability to maintain relationships with key suppliers, restrictions and covenants under the Company's ABL credit facility, risks related to the Company's development-stage ADS and ATM divisions which have not generated revenues, and the potential for significant non-cash charges related to changes in the fair value of warrant liabilities as well as the other risks and uncertainties described in the Company's filings with the SEC. XTI undertakes no obligation to update any forward-looking statements to reflect subsequent events or circumstances, except as required by applicable law. Readers are encouraged to review the risk factors described in XTI's filings with the SEC, including its most recent Annual Report on Form 10-K and subsequent filings. Non-GAAP Measures:This press release contains certain financial measures that are not recognized under generally accepted accounting principles in the United States ("GAAP"). XTI uses earnings before interest, income taxes, depreciation amortization ("EBITDA") and Adjusted EBITDA and important supplemental measures of the Company's operating performance. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measures for historical periods is provided in Schedule 1. As noted above under "2026 Financial Outlook and Guidance," the Company is unable to provide a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP measures without unreasonable efforts due to the inherent difficulty in forecasting and quantifying certain reconciling items, including, without limitation, changes in the fair value of warrant liability. The Company's 2026 financial outlook is based on management's current expectations and assumptions regarding customer demand, product availability, gross margin trends, operating cost levels, and the timing of working capital normalization. These targets are forward-looking statements and are subject to the risks and uncertainties described below and in the Company's filings with the U.S. Securities and Exchange Commission (the "SEC"), including with respect to pending legal proceedings, liquidity, the Company's capital structure and the other matters described under "Cautionary Statement Regarding Forward-Looking Statements" below. The Company has not provided a reconciliation of forward-looking Adjusted EBITDA or other forward-looking non-GAAP measures to the most directly comparable GAAP financial measures because certain reconciling items, including changes in the fair value of warrant liability and other items, depend on future events outside the Company's control and cannot be reasonably predicted or determined without unreasonable efforts. The variability of these items could have a significant and potentially unpredictable impact on future GAAP results. Contacts: General inquiries:Email: [email protected]: https://xtiaerospace.com/contact Investor Relations:Dave Gentry, CEORedChip Companies, Inc.Phone: 1-407-644-4256Email: [email protected] Net loss per share from continuing and discontinued operations is calculated based on net loss attributable to common stockholders. Preferred stock dividends and deemed dividends are allocated to continuing and discontinued operations on a proportional basis.     Schedule 1XTI Aerospace, Inc. and SubsidiariesReconciliation of Non-GAAP Financial MeasuresEBITDA and Adjusted EBITDA(In thousands)(Unaudited) EBITDA and Adjusted EBITDAXTI Aerospace defines EBITDA as net income (loss) before interest, income taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted for certain items including, (i) non-cash stock-based compensation expense; (ii) severance and restructuring charges; (iii) change in the fair value of warrant liability; and (iv) selected charges that are unusual or non-recurring. The Company believes that EBITDA and Adjusted EBITDA financial measures assist our board of directors, management, investors, and lenders in comparing our operating performance and establishing operational goals on a consistent basis across periods by removing the effects of our capital structure and other items that impact the comparability of financial results from period to period. We present EBITDA and Adjusted EBITDA because we believe they provide useful information regarding the factors and trends affecting our business in addition to measures calculated under GAAP. EBITDA and Adjusted EBITDA are non-GAAP financial measures and should not be considered in isolation or as a substitute for financial information provided in accordance with GAAP. These non-GAAP financial measures may not be computed in the same manner as similarly titled measures used by other companies. The most comparable GAAP financial measures, net income, and information reconciling the GAAP and non-GAAP financial measures are included in the table below:     View original content to download multimedia:https://www.prnewswire.com/news-releases/xti-aerospace-reports-first-quarter-2026-results-302772324.html

Company to Provide 1Q2026 Earnings Update DALLAS, May 12, 2026 /PRNewswire/ -- XTI Aerospace, Inc. (Nasdaq: XTIA) ("XTI Aerospace," "XTI" or the "Company"), a publicly traded aerospace and defense company operating across drone distribution, unmanned systems and advanced manufacturing markets and parent company of Drone Nerds, LLC ("Drone Nerds"), a leading drone solutions platform serving enterprise and government customers, today announced that it will release its first quarter 2026 financial results on May 14, 2026, before the market opens. In conjunction with the earnings release, management will host an earnings webcast on May 14, 2026, at 3:30 PM CT (4:30 PM ET), which will consist of a video-based question and answer session with Scott Pomeroy, Chief Executive Officer, and Brooke Turk, Chief Financial Officer. Rather than reading scripted remarks during the call, XTI will post prepared remarks, providing additional detail and context regarding the Company's financial results and business update, to the Investor Relations section of its website at xtiaerospace.com under "IR News & Events" on May 14 after the earnings release is issued, allowing more time in the call for live questions and answers. To participate in the call, please register in advance using this link: XTI Aerospace May 14 earnings call. The registration link is also available in the Investor Relations section of the Company's website under "IR News & Events." Dial-in information will be provided upon registration. A replay of the event will be available in the Investor Relations section of the Company's website under "IR News & Events" following the conclusion of the call and will remain available for at least 30 days. About XTI Aerospace, Inc.XTI Aerospace, Inc. (Nasdaq: XTIA) is a publicly traded aerospace company providing unmanned aircraft systems ("UAS") solutions through its commercial drone solutions division, operated through Drone Nerds, LLC and two development-stage divisions focused on autonomous defense systems and domestic manufacturing of unmanned systems components designed to support federal procurement and sourcing requirements. XTI's commercial drone solutions business provides hardware distribution, training, service, repair, and lifecycle support to enterprise, public safety and government customers. XTI Aerospace is headquartered in Addison, Texas. For more information about XTI, please visit xtiaerospace.com and follow XTI on LinkedIn, Instagram, X, and YouTube. Contacts: General inquiries:Email: [email protected]: https://xtiaerospace.com/contact Investor Relations:Dave Gentry, CEORedChip Companies, Inc.Phone: 1-407-644-4256Email: [email protected]   View original content to download multimedia:https://www.prnewswire.com/news-releases/xti-aerospace-schedules-first-quarter-2026-earnings-webcast-302769418.html

XTI Aerospace Inc. (NASDAQ:XTIA) is one of the 10 Unstoppable Stocks That Could Double Your Money. XTI Aerospace Inc. (NASDAQ:XTIA) is one of the unstoppable stocks that could double your money. On April 15, XTI Aerospace reported Q4 and 2025 results. This period was marked by the acquisition of Drone Nerds LLC and Anzu Robotics LLC. Following the November 2025 merger, the company reported annual revenue of $22.5 million and a gross profit of $4.9 million. On a pro forma basis (treating the acquisition as if it had occurred at the start of 2024), the company’s full-year performance reached $121.6 million in revenue with a gross profit of $26.8 million, representing a 22% margin. Q4 was highlighted by the completion of the ~$40 million acquisition of Drone Nerds, a major US drone solutions provider. This move was supported by a $25 million strategic investment from Unusual Machines. Additionally, XTI Aerospace allied with Valkyrie Intelligence LLC to utilize the extensive drone industry data sets established by its newly acquired divisions. These corporate developments have transformed XTI Aerospace into a multifaceted aerospace and defense firm operating across drone distribution, unmanned systems, and advanced manufacturing. Jirat Teparaksa/Shutterstock.com For 2026, XTI Aerospace Inc. (NASDAQ:XTIA) issued optimistic guidance, projecting full-year revenue to reach $160 million or greater. Despite reporting a pro forma net loss from continuing operations of $39.0 million for 2025, the company is focused on scaling its enterprise and government drone solutions platform. Management intends to capitalize on its 3 dedicated divisions and its partnership with Valkyrie Sciences to drive growth and harness intelligence-led opportunities in the unmanned systems market. XTI Aerospace Inc. (NASDAQ:XTIA) is an aircraft development company that offers TriFan 600, which is a vertical takeoff & landing aircraft, as well as real-time location systems, indoor intelligence software, and hardware products. While we acknowledge the potential of XTIA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy. Disclosure: None. Follow Insider Monkey on Google News.

Drone Nerds has been fully integrated and now serves as XTI’s financial engine, producing over $121 million in 2025 pro forma revenue, positive cash flow, and a customer/data "flywheel" from 14,000+ customers that informs product and market strategy. Management views FCC restrictions on foreign drone models as "disruptive, not traumatic" and is positioning XTI to replace DJI dependence by distributing a broader set of brands—including U.S.‑made, NDAA‑compliant hardware—to reduce reliance on Chinese products and pursue margin expansion. XTI has paused the legacy TriFan VTOL program to prioritize capital allocation and redeploy core engineering and flight‑control capabilities into its Autonomous Defense Systems (ADS) group, while bidding on nearly $150 million of contract value tied to over $1.5 billion in potential production opportunities with government customers. Interested in XTI Aerospace, Inc.? Here are five stocks we like better. XTI Aerospace (NASDAQ:XTIA) used its full-year 2025 earnings call to emphasize how the company has been reshaped over the past five months following the closing of its Drone Nerds acquisition, with management framing the distribution business as the company’s current financial engine and the foundation for expanded ambitions in manufacturing and defense-related autonomous systems. Chief Executive Officer and Chairman Scott Pomeroy said the company has “fully integrated” Drone Nerds, exited one division, and established “a clear and bold new vision” aimed at capturing what he described as a significant market opportunity in aerospace. The company also posted its earnings release, investor presentation, and prepared remarks to its website and filed its script in advance, with Pomeroy saying the goal was to prioritize investor Q&A rather than reading prepared remarks on the call. → TSMC: Despite Post-Earnings Fall, Signs of AI Weakness are Scant In response to a written question about what drives the business today, Pomeroy said XTI’s drones distribution operation—“represented by Drone Nerds today”—is “really the engine of the company.” He said the company generated “over $121 million in 2025 pro forma revenue and positive cash flow,” describing it as “a scaled commercial platform, serving enterprise and increasingly defense customers.” Pomeroy also highlighted the role of customer and transaction data in shaping strategy. He said the distribution platform serves “over 14,000 customers” and sells “tens of thousands of units” annually, which he said produces “demand signals” that inform expansion into government development and manufacturing. “Data is incredibly important,” he said, calling the business a “flywheel” in which distribution scale informs what the company should build and sell in other segments. → JBHT Burns Rubber, Hits the Highway to a $300 Price Tag During a question from Matthew Galinko of Maxim Group about potential disruption tied to FCC-related restrictions affecting future drone models from foreign manufacturers, Pomeroy said the company views the situation as manageable over time rather than an immediate shock. Pomeroy described the current ban as prospective—applying to “future SKUs, future models” of certain foreign drones, including DJI and Autel—designed to allow time for customers to transition. He said customer response has varied, with some government agencies moving sooner while others are treating adoption as a slower, multi-year process as new models lose FCC certification. → Could These 3 New-to-Market Quantum Computing Firms Threaten D-Wave? While acknowledging the regulatory uncertainty, Pomeroy said the company does not expect “a flash cut” or an overnight change. He added that XTI is preparing to “fill that gap” and mitigate risk by offering a broader set of brands as a distributor. “To the extent that our customers begin to sunset their dependence on…DJI, we are replacing that with other models,” he said, including drones produced in other locations “including the U.S.” He also said customers are relying on XTI to navigate compliance requirements, citing NDAA and Blue UAS considerations. Overall, Pomeroy characterized the situation as “disruptive,” but “not…traumatic.” Another theme on the call was XTI’s decision to pause its legacy vertical takeoff and landing (VTOL) program, TriFan, and redeploy key technical capabilities. Michael Molnar of MiG Advisors asked whether engineering and R&D from the earlier VTOL effort remained relevant as the company’s revenue base shifts toward Drone Nerds. Pomeroy said the decision to pause VTOL was driven by capital allocation priorities, describing TriFan as a “long-dated asset” compared with a market environment that he said is “more short-term in nature in terms of capital raising.” However, he said the company retained core competencies that can be applied to autonomous systems, including: Engineering “Touch labor,” which he described as the ability to turn engineering into testable flight hardware Flight control system capabilities Pomeroy said these skills now sit within what the company calls its Autonomous Defense Systems (ADS) division, formerly XTI Aircraft, and are being used to pursue government programs tied to autonomous flight. He described the shift as moving from a manned VTOL concept to a focus on autonomy, saying, “the current future is in autonomous flight.” Addressing how XTI is positioned in defense and autonomous systems, Pomeroy said the retained engineering, manufacturing, and flight-control capabilities allow the company to participate in government drone efforts, particularly in Group 3 through Group 5 aircraft categories. He said XTI is “bidding and proposing on nearly $150 million of contract value” tied to “over $1.5 billion in production value,” while cautioning that the company does not expect to win all opportunities. Pomeroy said XTI is pursuing work directly with government entities “such as the Navy, the Marines, the Air Force, SOCOM,” and is also looking to participate with prime contractors on government bids. He also confirmed that counter-drone efforts are “certainly an area of focus” for the military, and discussed growing interest in smaller Group 1 and Group 2 drones based on lessons learned from current conflicts. On personnel, Pomeroy pointed to leadership in the ADS group, citing Steve Zourabian and his background at Boeing Phantom Works and Piasecki, in support of the company’s ability to execute government-related autonomous aircraft work. Galinko also asked about capital allocation and potential M&A. Pomeroy responded that the company expects to be acquisitive, though he acknowledged constraints tied to XTI’s market capitalization and available cash resources. Still, he said management believes it has experience buying and integrating assets and pointed to Drone Nerds as an example of what he called buying “right.” He described the drone industry as consolidating and said, “To the extent you’re not a consolidator, you’re a consolidatee,” adding that XTI believes it can be “a successful consolidator” due to its market knowledge derived from distribution and customer demand signals. On revenue mix trends, Pomeroy said he expects growth in government and continued growth in enterprise. He described an ongoing shift toward more direct customer relationships, with Drone Nerds positioned as a value-added reseller aimed at “consume more share of wallet” and create “a stickier relationship” with enterprise, commercial, and government customers. He noted the business historically had higher retail exposure but has been moving away from it “for margin considerations,” and said that as the mix shifts and reliance on Chinese products is reduced, he expects “some margin expansion.” In closing remarks, Pomeroy reiterated that Drone Nerds provides the baseline foundation, stating the company is “delivering over $120 million of revenue at over 20% gross margins” and “strong EBITDA out of that.” He said XTI is targeting “NDAA-compliant, domestically manufactured hardware” for enterprise and defense procurement, and emphasized that the company is not currently spending on the TriFan program. Pomeroy said the company believes its distribution-driven “flywheel” strategy—linking customer adoption, data, manufacturing capability, and military opportunities—will support top-line growth, margin expansion, and long-term value creation. XTI Aerospace Inc (NASDAQ: XTIA) is an early‐stage aerospace company headquartered in Englewood, Colorado, focused on the design and development of vertical takeoff and landing (VTOL) aircraft for the business and specialty aviation markets. The company's core mission is to deliver a next‐generation hybrid wing–body aircraft capable of both VTOL and short-takeoff and landing (STOL) operations, addressing the growing demand for point-to-point air transportation without the need for traditional airport infrastructure. The company's flagship product, the TriFan 600, is a six- to eight-seat business aircraft powered by a proprietary tri-fan propulsion system. The article "XTI Aerospace Q4 Earnings Call Highlights" was originally published by MarketBeat.

DALLAS, April 15, 2026 /PRNewswire/ -- XTI Aerospace, Inc. (Nasdaq: XTIA) ("XTI Aerospace," "XTI," or the "Company"), a publicly traded aerospace and defense company operating across drone distribution, unmanned systems, and advanced manufacturing markets through three dedicated divisions, and parent company of Drone Nerds, LLC, a leading drone solutions platform serving enterprise and government customers, today announced financial results for its fourth quarter and full year ended December 31, 2025, and provided the Company's outlook for 2026. 2025 fourth quarter and full year highlights (includes the acquisition of Drone Nerds, LLC and Anzu Robotics, LLC (together, "Drone Nerds") in November 2025, Inpixon results excluded and reflected in discontinued operations): Revenue of $22.5 million Gross profit of $4.9 million Gross profit as a percentage of revenue of 21.9 percent For purposes of this release, the Company defines "pro forma" as unaudited supplemental combined financial information. 2025 pro forma fourth quarter XTI highlights(1) (includes Drone Nerds as if the acquisition had occurred as of January 1, 2024): Revenue of $41.7 million Gross profit of $8.1 million Gross profit as a percentage of revenue of 19.5 percent Net loss from continuing operations of $7.6 million 2025 full year pro forma, XTI reported the following highlights(1) (includes Drone Nerds as if the acquisition had occurred as of January 1, 2024): Revenue of $121.6 million Gross profit of $26.8 million Gross profit as a percentage of revenue of 22.0 percent Net loss from continuing operations of $39.0 million Company guidance: Expecting full year 2026 revenue of $160 million or greater 2025 fourth quarter events: Completed approximately $40 million acquisition of Drone Nerds, a leading U.S. drone solutions provider, and secured a concurrent $25 million strategic investment from Unusual Machines, Inc. (Nasdaq: UMAC) Formed strategic alliance with Valkyrie Intelligence LLC ("Valkyrie Sciences"), including an investment and services agreement, to harness the intelligence derived from the sizable drone industry data set built by Drone Nerds Recent events: Completed the divestiture of the Inpixon RTLS business to streamline the Company's focus on its drone platform Secured $20 million Asset-Based Lending ("ABL") credit facility with JPMorgan to support growth and liquidity, subject to customary borrowing conditions, covenants and availability The Autonomous Defense Systems ("ADS") division, formed through the reorganization and redesignation of the Company's XTI Aircraft division, and the Advanced Technology and Manufacturing ("ATM") division, which the Company is in the process of establishing and which has not yet generated revenue Strengthened the composition of XTI's Board of Directors with aviation and unmanned systems expertise through the appointments of Clinton Weber and Jonathan Ornstein "The acquisition of Drone Nerds transformed XTI Aerospace into a scaled, revenue-generating platform," said Scott Pomeroy, Chief Executive Officer of XTI Aerospace. "Drone Nerds is a leading enterprise-focused UAS solutions provider with deep customer relationships and a proven operating model that continues to deliver strong performance. Its OEM-agnostic approach and broad supplier network position us to participate in a rapidly evolving market. Just as important, the platform provides real-time data and market intelligence that informs where we invest, build, and expand. We believe this foundation positions us to support growth and support our expansion into new markets and higher-value opportunities across the business." "XTI Drones continues to scale as a cash-generating commercial engine. Our Advanced Technology and Manufacturing division strengthens our ability to expand our participation in the value chain through U.S.-based manufacturing. Our Autonomous Defense Systems initiative is building a pipeline of potential military and defense contract opportunities in a large and growing market. Together, these elements create a flywheel that we believe is designed to support growth, margin expansion, and long-term value creation. In 2026, our focus is execution." Liquidity and Capital Resources At December 31, 2025, the Company had $16.7 million of unrestricted cash and cash equivalents. An additional $0.2 million of cash is included in current assets of discontinued operations and is not included in unrestricted cash balances. The Company does not currently expect to require additional capital to support the ordinary-course operating needs of the Drone Nerds business. However, the Company may seek additional capital in the future to support strategic acquisitions and the development of its advanced systems and domestic manufacturing initiatives. Subsequent to December 31, 2025 and through the date of this filing, holders of certain warrants issued in connection with our 2025 public offerings exercised warrants to purchase 3,963,408 shares of the Company's common stock. These exercises resulted in aggregate cash proceeds to us of approximately $7.9 million. We engaged ThinkEquity LLC as our exclusive advisor in connection with the solicitation of these warrants for which we paid cash compensation of 3% of the gross proceeds, or approximately $0.2 million. After deducting such commissions, the net proceeds we received from these warrant exercises was approximately $7.7 million. Unaudited Supplemental Combined Financial Information The Company has provided unaudited supplemental financial information of the combined company in this press release. The following financial information combines XTI and Drone Nerds historical operating results as if the businesses had been operated together on a combined basis during prior periods. This financial information is intended to illustrate the current operating footprint of the Company following the acquisition of Drone Nerds and divestiture of the Company's Industrial IoT / Real-Time Location Systems business. For the avoidance of doubt, the unaudited supplemental combined financial information was not prepared in accordance with Article 11 of Regulation S-X and differs from the unaudited pro forma condensed combined financial information included in the Pro Forma 8-K/A filing dated February 9, 2026 filed with the SEC (the "Pro Forma 8-K Filing"), which was prepared in accordance with Article 11 of Regulation S-X. Accordingly, the unaudited supplemental combined financial information was not prepared in accordance with Article 11 of Regulation S-X and is presented for illustrative purposes to assist investors in understanding the operational performance of the combined business, timing and operational impact of the acquisition, and integration of the combined business, and should not be considered a substitute for the pro forma financial information included in the Company's prior filings prepared in accordance with Article 11 of Regulation S-X. Consequently, the unaudited supplemental combined financial information is intentionally different from, but does not supersede, the pro forma financial information set forth in the Pro Forma 8-K Filing or the pro forma financial information set forth in the Company's most recent annual report on Form 10-K In addition, the unaudited supplemental combined financial information does not purport to indicate the results that actually would have been obtained had the companies been operated together during the periods presented, or which may be realized in the future. The unaudited supplemental combined financial information has no impact on XTI or Drone Nerds previously reported consolidated balance sheets or statements of operations, cash flows or equity. The unaudited supplemental combined financial information excludes non-recurring transaction-related costs associated with the Drone Nerds acquisition. Conference Call and Webcast (Live Q&A Format) The Company will post prepared remarks to the Investor Relations section of its website before the market opens on April 15, 2026. These remarks are intended to provide additional detail and context regarding the Company's financial results and business update. The Company will host a live webcast on April 15, 2026 at 3:30 PM CT (4:30 PM ET), which will consist of a video-based question and answer session with Scott Pomeroy, Chief Executive Officer, and Brooke Turk, Chief Financial Officer. As part of this format, prepared remarks will not be read but will be available in the Investor Relations section of the Company's website at xtiaerospace.com under "IR News & Events." Investors and analysts are invited to participate and may register in advance using this link: XTI Aerospace April 15 Earnings Webcast. The registration link is also available in the "Investor Relations" section of the Company's website under "IR News & Events." Dial-in information will be included upon registration. The replay of the event will be publicly available to all investors in the Investor Relations section, under "IR News & Events" section of the Company's website at xtiaerospace.com following the conclusion of the question and answer session and will remain available for 30 days. About XTI Aerospace, Inc. XTI Aerospace, Inc. (Nasdaq: XTIA) is a publicly traded aerospace and defense company operating across unmanned systems, advanced manufacturing, and drone distribution markets through three dedicated divisions. The Company's Commercial division - XTI Drones, anchored by its Drone Nerds subsidiary, LLC, is one of the nation's leading drone solutions platforms, serving enterprise and government customers across sales, service, and support. The Commercial Division's market reach and transaction data provide XTI with unparalleled visibility into purchasing behavior across the unmanned systems industry — a strategic intelligence asset the Company may leverage to support future data and analytics initiatives. The Company's Autonomous Defense Systems ("ADS") division is focused on the design, development, and integration of unmanned platforms for defense and commercial applications, with an emphasis on serving U.S. government customers and supporting domestic procurement initiatives aligned with national security priorities. The Company's Advanced Technology and Manufacturing (ATM) division is developing a U.S.-based production platform for NDAA-compliant and Department of War ("DoW") Blue List-eligible unmanned systems components and technologies, designed to support domestic manufacturing and supply chain requirements and serve the growing demand for domestically sourced unmanned systems across defense and enterprise markets. XTI Aerospace is headquartered in Addison, Texas. For more information about XTI, please visit xtiaerospace.com and follow XTI on LinkedIn, Instagram, X, and YouTube. Cautionary Statement Regarding Forward-Looking Statements This press release contains certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact contained in this press release are forward-looking statements. Forward-looking statements may be identified by words such as "believe," "continue," "could," "would," "will," "expect," "intend," "plan," "target," "estimate," "project," or similar expressions. These statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied. Such risks include, but are not limited to, market adoption, regulatory requirements, supply chain conditions, technological development, integration of the acquired businesses, availability of capital and liquidity, and changes in applicable laws or regulations as well as the other risks and uncertainties described in the Company's filings with the U.S. 165 Securities and Exchange Commission. XTI undertakes no obligation to update any forward-looking statements to reflect subsequent events or circumstances, except as required by applicable law. Readers are encouraged to review the risk factors described in XTI's filings with the U.S. Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent filings. Contacts: General inquiries: Email: [email protected] Web: https://xtiaerospace.com/contact Investor Relations: Dave Gentry, CEO RedChip Companies, Inc. Phone: 1-407-644-4256 Email: [email protected] Net loss per share from continuing and discontinued operations is calculated based on net loss attributable to common stockholders. Preferred stock dividends and deemed dividends are allocated to continuing and discontinued operations on a proportional basis. View original content to download multimedia:https://www.prnewswire.com/news-releases/xti-aerospace-reports-fourth-quarter-and-full-year-2025-results-302743204.html