Palladyne AI Corp (PDYN) AI Stock Analysis

• Market Cap: $283.92M
• Dividend Yield: N/A
• Average Volume (3M): 2.97M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.54
• Revenue Growth: -16.95%
• EPS Growth: 54.71%
• Country: US
• Employees: 71
• Sector: Technology
• Sector Strength: 89
• Industry: Software - Infrastructure
• EPS (TTM): -1.87
• Shares Outstanding: 35,713,528
• 10 Day Avg. Volume: 2,203,028
• 30 Day Avg. Volume: 2,967,993
• PEG Ratio: -0.01
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.23
• Enterprise Value/Market Cap: 3.23
• Enterprise Value/Revenue: 30.19
• Enterprise Value/Gross Profit: 223.40
• Enterprise Value/Ebitda: -6.90
• 1Y Price Target: $12.00
• Price Target Upside: 41.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 47 Neutral
• Price Target: $9.50 ▲(11.76%Upside)

The overall stock score for Palladyne AI Corp is primarily impacted by its poor financial performance, including declining revenues and negative cash flows. While technical indicators show some positive momentum, the negative valuation metrics and absence of dividends raise concerns. Recent strategic announcements provide a positive outlook for future growth, but the financial weaknesses weigh heavily on the stock's current evaluation.

Palladyne AI Corp Business Overview & Revenue Model

Company Description

Palladyne AI Corp (PDYN) is a leading technology company specializing in the development of advanced artificial intelligence solutions. Operating within the AI and machine learning sectors, Palladyne AI Corp offers a range of products and services designed to enhance decision-making processes, automate business operations, and provide predictive analytics. The company's core offerings include AI-driven software platforms, customizable AI models, and data analytics services tailored for industries such as finance, healthcare, and manufacturing.

How the Company Makes Money

Palladyne AI Corp generates revenue through a diversified business model primarily centered around software licensing and subscription fees for its AI platforms and services. The company offers tiered subscription plans for its AI software, catering to various business sizes and needs, which provides a steady stream of recurring revenue. Additionally, Palladyne AI Corp engages in strategic partnerships with enterprises across different sectors, offering bespoke AI solutions and consultancy services that are billed on a project basis. The company also monetizes its proprietary AI models through licensing agreements, allowing other businesses to integrate Palladyne's technology into their operations, thus expanding its market reach and revenue potential.

Palladyne AI Corp Financial Statement Overview

Summary

Palladyne AI Corp is experiencing financial difficulties, with declining revenue, negative EBIT and net income, weakening balance sheet stability, and significant cash flow challenges. These factors indicate major struggles with profitability, financial health, and cash conversion efficiency.

Income Statement

Palladyne AI Corp's revenue has shown a declining trend over recent periods, evidenced by a negative revenue growth rate from the last annual report to the TTM (Trailing-Twelve-Months) period. The company consistently reports negative EBIT and net income figures, resulting in negative net profit and EBIT margins, indicating struggles with profitability and operational efficiency.

Balance Sheet

The company's balance sheet reveals a moderate debt-to-equity ratio, indicating some reliance on debt, but the positive stockholders' equity suggests some stability. However, the equity ratio has been decreasing, indicating a reduction in financial strength. Overall, while there is some equity cushion, the liabilities and equity position suggest potential financial risks.

Cash Flow

Palladyne AI Corp faces significant cash flow challenges, with negative operating and free cash flows, which indicate insufficient cash generation to cover operational and capital expenditures. The free cash flow growth rate is negative, suggesting worsening cash flow issues, and both the operating and free cash flow to net income ratios are unfavorable, pointing to inefficiencies in converting income to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.05M	7.79M	6.15M	14.57M	5.08M	8.81M
Gross Profit	4.10M	4.30M	1.10M	2.96M	1.21M	3.21M
EBITDA	-25.93M	-26.29M	-78.64M	-103.21M	-80.46M	-20.54M
Net Income	-42.63M	-72.62M	-115.59M	-157.13M	-81.51M	-20.93M
Balance Sheet
Total Assets	63.30M	56.25M	60.43M	167.63M	235.82M	38.05M
Cash, Cash Equivalents and Short-Term Investments	46.64M	40.07M	39.09M	114.50M	217.11M	33.66M
Total Debt	10.71M	11.04M	12.40M	13.28M	7.00K	2.63M
Total Liabilities	35.00M	65.79M	19.52M	23.18M	21.86M	5.15M
Stockholders Equity	28.30M	-9.53M	40.91M	144.45M	213.96M	32.91M
Cash Flow
Free Cash Flow	-23.20M	-22.89M	-77.40M	-66.89M	-46.79M	-17.83M
Operating Cash Flow	-22.91M	-22.63M	-76.62M	-65.39M	-42.10M	-16.88M
Investing Cash Flow	-36.61M	6.88M	64.68M	-109.05M	-4.69M	-950.00K
Financing Cash Flow	37.78M	23.80M	-82.00K	-7.52M	230.24M	42.30M

Palladyne AI Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PDYN, the sentiment is Positive. The current price of 8.5 is below the 20-day moving average (MA) of 8.57, above the 50-day MA of 7.65, and above the 200-day MA of 6.07, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 52.21 is Neutral, neither overbought nor oversold. The STOCH value of 32.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PDYN.

Palladyne AI Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HPAI	72 Outperform	$170.81M	19.36	56.45%	―	―	―
KLTR	64 Neutral	$304.17M	―	-89.29%	―	2.40%	54.99%
Sector *	63 Neutral	$33.87B	5.80	-11.87%	1.82%	5.31%	-18.50%
BLZE	59 Neutral	$297.01M	―	-74.75%	―	21.81%	28.80%
ARQQ	49 Neutral	$511.89M	―	-160.52%	―	-67.43%	87.17%
PDYN	47 Neutral	$283.92M	―	-136.41%	―	-16.95%	54.71%

Palladyne AI Corp Corporate Events

Palladyne AI Corp Amends CEO Employment Agreement

Palladyne AI Corp announced an amended employment agreement with CEO Benjamin G. Wolff, extending his term until 2027 and entitling him to a cash payment based on the company’s stock value. However, a restricted stock award granted to Wolff in July 2025 reduced this cash payment to zero, as approved by the company’s board and stockholders.

The most recent analyst rating on (PDYN) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Palladyne AI Corp stock, see the PDYN Stock Forecast page.

Palladyne AI Corp Holds Annual Stockholders Meeting

On June 11, 2025, Palladyne AI Corp. held its annual stockholders meeting where key decisions were made regarding the election of directors, ratification of KPMG LLP as the independent auditor, and approval of restricted stock awards for the CEO. The meeting also highlighted an amended employment agreement with CEO Benjamin G. Wolff, which ties his compensation to the company’s stock performance, aligning his interests with shareholders and offering a lower cash salary compared to industry standards.

The most recent analyst rating on (PDYN) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Palladyne AI Corp stock, see the PDYN Stock Forecast page.

Palladyne AI Unveils Strategic Vision in New Presentation

On May 19, 2025, Palladyne AI Corp released an investor presentation on its website, outlining its business strategy and future plans. The presentation includes forward-looking statements about the company’s market opportunities and product developments, emphasizing the potential benefits of its AI technologies. The company aims to automate complex tasks traditionally limited by current AI approaches, thereby reducing human intervention and increasing return on investment for robotic platforms. Palladyne AI’s vision is to enable machines to observe, learn, reason, and act like humans, thus transforming the landscape of industrial automation.

The most recent analyst rating on (PDYN) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Palladyne AI Corp stock, see the PDYN Stock Forecast page.