Palladyne AI (NASDAQ:PDYN – Get Free Report) posted its quarterly earnings results on Thursday. The company reported ($0.27) EPS for the quarter, missing the consensus estimate of ($0.23) by ($0.04), Zacks reports. Palladyne AI had a negative net margin of 254.75% and a negative return on equity of 54.38%. The company had revenue of $5.78 million during the quarter, compared to analyst estimates of $5.80 million.
Here are the key takeaways from Palladyne AI’s conference call:
- Record revenue and backlog growth: Q2 revenue rose 63% sequentially to approximately $5.8 million, while backlog increased 43% to $24.6 million after roughly $13 million of new contract awards. Management reiterated 2026 revenue guidance of $24 million–$27 million.
- Cash burn and expenses remain elevated: Operating cash burn, including CapEx, was $11.1 million in Q2, above the company’s targeted quarterly pace, and GAAP net loss widened to $12.3 million. Palladyne used $10.8 million in ATM proceeds during the quarter, with stock-based compensation expected to increase materially in Q3.
- Autonomy technology gained field validation: SwarmOS and Gremlin-X were used by soldiers in the Ivy Mass and larger PCC6 exercises, demonstrating multi-vendor drone coordination, operation under degraded communications, and control of multiple systems by a single operator. The company said the results led to additional exercise invitations and potential future procurement opportunities.
- Product and defense-program opportunities expanded: Palladyne received a follow-on order for more than 1,000 BRAIN flight computers valued at approximately $2.3 million, advanced Gremlin-X to TRL7, and entered a partnership with Israel Aerospace Industries to Americanize and manufacture loitering munitions. Management also cited more than 20 submitted Department of War proposals representing several hundred million dollars of potential initial value, though outcomes and timing remain uncertain.
Palladyne AI Stock Up 1.7%
NASDAQ PDYN traded up $0.10 during trading on Friday, hitting $5.99. The stock had a trading volume of 676,554 shares, compared to its average volume of 926,729. The company has a market capitalization of $278.48 million, a PE ratio of -8.81 and a beta of 3.65. The firm has a 50 day moving average price of $6.01 and a 200 day moving average price of $6.48. Palladyne AI has a twelve month low of $4.14 and a twelve month high of $10.73.
Palladyne AI News Summary
- Positive Sentiment: Record growth and expanding backlog: Palladyne highlighted explosive second-quarter growth and a stronger backlog, supporting the outlook for future revenue as demand develops across its AI, aerospace and defense businesses. Palladyne AI Delivers Explosive Q2 Growth and Backlog
- Positive Sentiment: SwarmOS receives additional military validation: The company said its SwarmOS autonomy platform successfully performed again during the U.S. Army’s division-scale test of future warfare. Continued performance at a major defense exercise could improve Palladyne’s credibility and support potential follow-on opportunities. Palladyne AI SwarmOS Army Test
- Positive Sentiment: Full-year revenue outlook remains intact: Palladyne issued 2026 revenue guidance of $24 million to $27 million, a range that brackets the $24.6 million analyst consensus. Maintaining this outlook despite near-term execution challenges provides some support for the shares. Palladyne AI Reports Second Quarter 2026 Results
- Neutral Sentiment: Management emphasized strategic growth: The earnings call focused on record revenue, defense applications and the company’s strategic direction. Investors will likely look for evidence that backlog converts into sustained commercial revenue and improving margins. Palladyne AI Q2 2026 Earnings Call Transcript
- Negative Sentiment: Quarterly loss exceeded expectations: Palladyne reported a second-quarter loss of $0.27 per share, worse than the expected $0.23 loss and the $0.20 loss recorded a year earlier. Revenue of $5.78 million also narrowly missed the $5.80 million consensus estimate, while the company continues to report deeply negative profitability. Palladyne AI Q2 Loss and Revenue Results
Insider Transactions at Palladyne AI
In other news, CTO Denis Garagic sold 17,176 shares of the stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $6.14, for a total transaction of $105,460.64. Following the sale, the chief technology officer owned 559,959 shares of the company’s stock, valued at approximately $3,438,148.26. This represents a 2.98% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Stephen Sonne sold 5,245 shares of the firm’s stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $6.14, for a total transaction of $32,204.30. Following the completion of the transaction, the insider directly owned 197,490 shares of the company’s stock, valued at $1,212,588.60. This represents a 2.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 26,982 shares of company stock valued at $165,669. 13.40% of the stock is currently owned by corporate insiders.
Institutional Inflows and Outflows
Hedge funds and other institutional investors have recently bought and sold shares of the stock. Price T Rowe Associates Inc. MD grew its position in shares of Palladyne AI by 102.3% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 25,910 shares of the company’s stock worth $111,000 after buying an additional 13,100 shares in the last quarter. Vontobel Holding Ltd. grew its holdings in Palladyne AI by 30.9% during the 4th quarter. Vontobel Holding Ltd. now owns 27,799 shares of the company’s stock worth $118,000 after acquiring an additional 6,556 shares in the last quarter. Aristides Capital LLC purchased a new stake in shares of Palladyne AI in the 4th quarter valued at approximately $99,000. Virtu Financial LLC acquired a new stake in shares of Palladyne AI in the 3rd quarter valued at $86,000. Finally, BNP Paribas Financial Markets raised its holdings in shares of Palladyne AI by 136.7% in the 2nd quarter. BNP Paribas Financial Markets now owns 10,759 shares of the company’s stock valued at $93,000 after purchasing an additional 6,213 shares in the last quarter. 26.02% of the stock is currently owned by hedge funds and other institutional investors.
Analysts Set New Price Targets
Several research firms have weighed in on PDYN. Weiss Ratings reiterated a “sell (d-)” rating on shares of Palladyne AI in a report on Monday. Northland Securities set a $15.00 target price on Palladyne AI in a research note on Monday, June 8th. Lake Street Capital started coverage on Palladyne AI in a report on Friday, April 17th. They set a “buy” rating and a $11.00 price target for the company. Jefferies Financial Group raised shares of Palladyne AI to a “hold” rating in a research note on Wednesday, June 10th. Finally, Alliance Global Partners restated a “buy” rating on shares of Palladyne AI in a report on Tuesday, May 5th. Three investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $11.00.
Check Out Our Latest Research Report on Palladyne AI
About Palladyne AI
Palladyne AI Corp., a software company, focuses on delivering software that enhances the utility and functionality of third-party stationary and mobile robotic systems in the United States. Its Artificial Intelligence (AI)/ Machine Learning (ML) software platform enables robots to observe, learn, reason, and act in structured and unstructured environments. The company's software platform enables robotic systems to perceive their environment and quickly adapt to changing circumstances by generalizing from their experience using dynamic real-time operations without extensive programming and with minimal robot training.
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