XTI Aerospace Reports Fourth Quarter and Full Year 2025 Results

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Apr 15, 2026, 08:50 ET

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

⁽¹⁾	For information on unaudited supplemental combined financial information presented, see the section titled "Unaudited Supplemental Combined Financial Information" in this press release.

"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.

XTI Aerospace, Inc. and Subsidiaries Pro Forma⁽¹⁾ Combined Financial Data (Unaudited)

	For the Three Months Ended December 31,
	2025			2024
(in thousands, except percentages)	Amount			Amount			$ Change			% Change
Revenues	$	41,709		$	26,832		$	14,877			55	%
Gross profit		8,149			3,694			4,455			121	%
Gross profit %		19.5	%		13.8	%		5.7	%		41	%
Net loss from continuing operations		(7,599)			(9,045)			1,446			(16)	%

	For the Years Ended
	2025			2024
(in thousands, except percentages)	Amount			Amount			$ Change			% Change
Revenues	$	121,590		$	111,201		$	10,389			9	%
Gross profit		26,784			17,333			9,451			55	%
Gross profit %		22.0	%		15.6	%		6.4	%		41	%
Net loss from continuing operations		(39,042)			(23,948)			(15,094)			63	%


⁽¹⁾	For information on unaudited supplemental combined financial information presented, see the section titled "Unaudited Supplemental Combined Financial Information" in this press release.

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]

XTI Aerospace, Inc. and Subsidiaries Consolidated Statements of Operations *(In thousands, except per share data)* (Unaudited)

		For the Three Months Ended December 31,				For the Year Ended December 31,
		2025		2024		2025		2024
Revenues	$	22,490	$	—	$	22,490	$	—
Cost of Revenues		17,569		—		17,569		—
Gross Profit		4,921		—		4,921		—

Operating Expenses
Research and development		1,287		491		5,240		1,970
Sales and marketing		2,323		545		5,604		1,517
General and administrative		12,719		4,505		32,845		19,660
Merger-related transaction costs		3,429		—		3,887		6,490
Amortization of intangible assets		142		8		166		30
Total Operating Expenses		19,900		5,549		47,742		29,667

Loss from Operations		(14,979)		(5,549)		(42,821)		(29,667)

Other (Expense) Income
Interest expense, net		(51)		(229)		(270)		(782)
Amortization of deferred loan costs		—		—		—		(17)
Loss on conversion of note receivable to equity instrument		—		(2,630)		—		(2,630)
Loss on extinguishment of debt		—		—		(421)		(6,732)
Provision for expected credit losses on convertible note investment		(2,039)		—		(2,039)		—
Change in fair value of convertible notes payable		—		—		—		12,882
Change in fair value of equity securities		—		(1,068)		(349)		(1,068)
Change in fair value of warrant liability		2,684		—		(596)		(281)
Warrant issuance expense		—		—		(6,580)		—
Other income, net		30		24		30		42
Total Other (Expense) Income		624		(3,903)		(10,225)		1,414

Loss from continuing operations before income taxes		(14,355)		(9,452)		(53,046)		(28,253)
Income tax benefit (provision)		4		—		10		(16)
Net loss from continuing operations, net of tax		(14,351)		(9,452)		(53,036)		(28,269)
Loss from discontinued operations, net of tax		(6,964)		(4,404)		(15,455)		(7,334)
Net loss		(21,315)		(13,856)		(68,491)		(35,603)
Net loss attributable to noncontrolling interest		(270)		—		(270)		—
Net loss attributable to XTI Aerospace, Inc.		(21,585)		(13,856)		(68,761)		(35,603)

Preferred stock dividends		(408)		(110)		(437)		(606)
Deemed dividends		—		(258)		—		(772)
Net Loss Attributable to Common Stockholders	$	(21,993)	$	(14,224)	$	(69,198)	$	(36,981)

Net loss per share - basic and diluted:
Continuing operations	$	(0.45)	$	(14.28)	$	(3.28)	$	(129.24)
Discontinued operations	$	(0.21)	$	(6.41)	$	(0.96)	$	(33.54)
Net loss	$	(0.66)	$	(20.69)	$	(4.24)	$	(162.78)

Weighted Average Shares Outstanding, Basic and Diluted		32,744,968		687,471		16,337,782		227,193

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.

XTI Aerospace, Inc. And Subsidiaries Consolidated Balance Sheets (In thousands) (Unaudited)

		As of December 31, 2025				As of December 31, 2024
Assets
Current Assets
Cash and cash equivalents		$		16,696		$		3,972
Accounts receivable, net of allowance for credit losses				12,093				—
Other receivables				—				513
Inventories				15,400				—
Prepaid expenses and other current assets				3,989				888
Current assets of discontinued operations				3,645				3,208
Total Current Assets				51,823				8,581
Property and equipment, net				385				72
Operating lease right-of-use asset, net				2,965				310
Intangible assets, net				9,338				284
Goodwill				11,544				—
Other assets				403				1,095
Non-current assets of discontinued operations				4,788				13,949
Total Assets		$		81,246		$		24,291

Liabilities
Current Liabilities
Accounts payable	$		5,212		$		5,190
Related party payables			—				51
Accrued expenses and other current liabilities			6,165				6,071
Accrued interest			391				522
Customer deposits			3,071				1,350
Warrant liability			22,561				—
Operating lease obligation, current			550				88
Short-term debt			7,931				2,657
Current liabilities of discontinued operations			1,722				1,492
Total Current Liabilities			47,603				17,421
Long Term Liabilities
Long-term debt			450				65
Operating lease obligation, noncurrent			2,427				231
Non-current liabilities of discontinued operations			322				—
Total Liabilities			50,802				17,717

Commitments and Contingencies

Representative and placement agent warrants, net of issuance costs			2,701				—

Stockholders' Equity
Preferred Stock			—				—
Series 4 Convertible Preferred Stock			—				—
Series 5 Convertible Preferred Stock			—				—
Series 9 Preferred Stock			—				1,331
Series 10 Convertible Preferred Stock			21,793				—
Common Stock			33				2
Additional paid-in capital			157,354				99,425
Accumulated other comprehensive income			881				(622)
Accumulated deficit			(162,323)				(93,562)
Total Stockholders' Equity			17,738				6,574
Noncontrolling interest			10,005				—
Total Equity			27,743				6,574
Total Liabilities, Mezzanine Equity and Equity	$		81,246		$		24,291

XTI Aerospace, Inc. and Subsidiaries Consolidated Statements of Cash Flows (In thousands) (Unaudited)

	For the Years Ended December 31,
	2025		2024
Cash Flows Used in Operating Activities
Net loss	$	(68,491)	$	(35,603)
Adjustment to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		148		113
Amortization of intangible assets		387		622
Amortization of right-of-use asset		114		237
Non-cash interest expense, net		145		417
Stock-based compensation		12,046		4,121
Impairment of goodwill		9,895		—
Impairment of intangible assets		631		2,507
Provision for credit losses		2,129		—
Loss on conversion of note receivable to equity investment		—		2,630
Unrealized loss on equity investment		—		628
Change in fair value of convertible notes payable		—		(12,882)
Loss on extinguishment of debt		421		6,732
Warrant issuance expense		6,580		—
Change in fair value of warrant liability		596		281
Other		4		359
Changes in operating assets and liabilities:
Accounts receivable and other receivables		(1,993)		(18)
Inventories		2,618		611
Prepaid expenses and other current assets		4,572		922
Other assets		311		40
Accounts payable		(2,543)		346
Related party payables		(51)		—
Accrued expenses and other current liabilities		(3,696)		6,039
Accrued interest		116		259
Customer deposits		(271)		—
Deferred revenue		(167)		(435)
Operating lease obligation		(112)		(233)
Net Cash Used in Operating Activities		(36,611)		(22,307)
Cash Flows (Used in) Provided by Investing Activities
Purchase of property and equipment		(215)		(68)
Cash received in purchase of Inpixon		—		2,968
Investment in convertible note receivable		(2,000)		—
Acquisition of Drone Nerds, net of cash acquired		(16,547)		—
Purchase of intangible asset		—		(47)
Net Cash (Used in) Provided by Investing Activities		(18,762)		2,853
Cash Flows Provided by Financing Activities
Net proceeds from sale of common stock and pre-funded warrants via public offerings		57,051		—
Net proceeds from ATM stock offerings		1,667		22,213
Net proceeds from issuance of Series 10 Convertible Preferred Stock		22,750		—
Net proceeds from the exercise of equity classified warrants		—		2
Net proceeds from the exercise of liability classified warrants		4,061		—
Net proceeds from issuance of promissory notes		—		2,000
Net proceeds from loan from Inpixon (prior to merger)		—		1,012
Redemptions of Series 9 Preferred Stock		(1,427)		(795)
Repayments of debt		(15,892)		(868)
Net Cash Provided by Financing Activities		68,210		23,564
Effect of Foreign Exchange Rate on Changes on Cash		(23)		(10)
Net Increase in Cash and Cash Equivalents		12,814		4,100
Cash and Cash Equivalents – Beginning of year		4,105		5
Cash and Cash Equivalents – End of year	$	16,919	$	4,105

XTI Aerospace, Inc. and Subsidiaries Reconciliation of Non-GAAP Financial Measures (In thousands) (Unaudited)

	For the Three Months Ended December 31, 2025
(in thousands)	GAAP		Drone Nerds Pre-Acquisition Activity		Transaction Accounting Adjustments			Proforma
Revenues	$	22,490	$	19,219	$	-			41,709
Cost of revenues		17,569		15,991		-			33,560
Gross profit		4,921		3,228		-			8,149
Operating expenses		19,900		1,254		(5,221)	a		15,933
Loss from operations		(14,979)		1,974		5,221			(7,784)
Other (expense) income		624		(263)		(180)	b		181
Net income (loss), before tax		(14,355)		1,711		5,041			(7,603)
Income tax benefit		4		-		-			4
Net income (loss)	$	(14,351)	$	1,711	$	5,041		$	(7,599)


a)	Non-recurring transaction costs associated with Drone Nerds acquisition (less $5,442) and amortization of the purchase price allocation for intangible assets identified for Drone Nerds (plus $221)
b)	Interest on the promissory notes issued as part of the Drone Nerds acquisition consideration

	For the Three Months Ended December 31, 2024
(in thousands)	GAAP		Drone Nerds Pre-Acquisition Activity		Transaction Accounting Adjustments			Proforma
Revenues	$	-	$	26,832	$	-			26,832
Cost of revenues		-		23,138		-			23,138
Gross profit		-		3,694		-			3,694
Operating expenses		5,549		2,695		221	a		8,465
Loss from operations		(5,549)		999		(221)			(4,771)
Other (expense) income		(3,903)		(191)		(180)	b		(4,274)
Net income (loss), before tax		(9,452)		808		(401)			(9,045)
Income tax benefit		-		-		-			-
Net income (loss)	$	(9,452)	$	808	$	(401)		$	(9,045)


a)	Amortization of the purchase price allocation for intangible assets identified for Drone Nerds
b)	Interest on the promissory notes issued as part of the Drone Nerds acquisition consideration

	For the Twelve Months Ended December 31, 2025
(in thousands)	GAAP		Drone Nerds Pre-Acquisition Activity		Transaction Accounting Adjustments			Proforma
Revenues	$	22,490	$	99,100	$	-			121,590
Cost of revenues		17,569		77,237		-			94,806
Gross profit		4,921		21,863		-			26,784
Operating expenses		47,742		11,311		(4,763)	a		54,290
Loss from operations		(42,821)		10,552		4,763			(27,506)
Other (expense) income		(10,225)		(601)		(720)	b		(11,546)
Net income (loss), before tax		(53,046)		9,951		4,043			(39,052)
Income tax benefit		10		-		-			10
Net income (loss)	$	(53,036)	$	9,951	$	4,043		$	(39,042)


a)	Non-recurring transaction costs associated with Drone Nerds acquisition (less $5,442), Drone Nerds amortization (less $206), amortization of the purchase price allocation for intangible assets identified for Drone Nerds (plus $885)
b)	Interest on the promissory notes issued as part of the Drone Nerds acquisition consideration

	For the Twelve Months Ended December 31, 2024
(in thousands)	GAAP		Drone Nerds Pre-Acquisition Activity		Transaction Accounting Adjustments			Proforma
Revenues	$	-	$	111,201	$	-			111,201
Cost of revenues		-		93,868		-			93,868
Gross profit		-		17,333		-			17,333
Operating expenses		29,667		13,401		(5,605)	a		37,463
Loss from operations		(29,667)		3,932		5,605			(20,130)
Other (expense) income		1,414		(952)		(4,264)	b		(3,802)
Net income (loss), before tax		(28,253)		2,980		1,341			(23,932)
Income tax provision		(16)		-		-			(16)
Net income (loss)	$	(28,269)	$	2,980	$	1,341		$	(23,948)


a)	Non-recurring transaction costs associated with Drone Nerds acquisition (less $6,490) and amortization of the purchase price allocation for intangible assets for Drone Nerds (plus $885)
b)	Interest on the promissory notes issued as part of the Drone Nerds acquisition consideration (less $744). The pro forma results for the year ended December 31, 2024 exclude nonrecurring merger-related transaction costs and losses recognized in connection with the conversion and extinguishment of convertible notes, including related fair value adjustments and inducement expenses, as these items are directly attributable to prior recapitalization transactions and do not have a continuing impact on the combined company (less $3,520).