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Palladyne Ai Corp. (PDYN)
NASDAQ:PDYN
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Palladyne AI Corp
(NASDAQ:PDYN)
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Rating:41Neutral
Price Target:
$8.00
▲(17.47% Upside)
Action:ReiteratedDate:11/05/25
Palladyne AI Corp's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues and significant losses. Technical analysis further indicates bearish momentum, with the stock trading below key moving averages and oversold conditions. Valuation metrics are weak, with a negative P/E ratio and no dividend yield, underscoring the company's financial difficulties.
Positive Factors
Strategic Partnerships
The collaboration with Draganfly enhances Palladyne's AI capabilities in UAV platforms, potentially expanding its market reach in government, defense, and commercial sectors, which could drive long-term growth and innovation.
Business Model
Palladyne's subscription-based model and licensing fees provide a recurring revenue stream, offering financial stability and predictability, which is crucial for long-term business sustainability and growth.
Gross Profit Margin
A strong gross profit margin indicates efficient cost management and pricing power, which can support profitability and provide a buffer against market fluctuations, aiding in long-term financial health.
Negative Factors
Revenue Decline
Declining revenues indicate challenges in maintaining market share or product demand, which can hinder long-term growth prospects and necessitate strategic adjustments to reverse the trend.
Profitability Issues
Negative net profit margins reflect operational inefficiencies and financial challenges, which can impact the company's ability to reinvest in growth initiatives and sustain operations over the long term.
Cash Flow Challenges
Negative cash flow growth indicates potential liquidity issues, which can limit the company's ability to invest in new projects, pay down debt, and support ongoing operations, affecting its long-term viability.
Palladyne AI Corp (PDYN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$286.27M
Dividend YieldN/A
Average Volume (3M)5.11M
Price to Earnings (P/E)―
Beta (1Y)3.90
Revenue Growth-44.07%
EPS Growth25.75%
CountryUS
Employees71
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.09
Shares Outstanding42,037,410
10 Day Avg. Volume1,483,942
30 Day Avg. Volume5,109,594
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)-34.46
Price to Sales (P/S)42.19
P/FCF Ratio-14.35
Enterprise Value/Market Cap0.93
Enterprise Value/Revenue60.95
Enterprise Value/Gross Profit105.79
Enterprise Value/Ebitda-10.87
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Palladyne AI Corp Business Overview & Revenue Model
Company DescriptionPalladyne 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) Foundational Technology enables robots to observe, learn, reason, and act in structured and unstructured environments. In addition, the company's technologies enable 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, training, or the latency associated with processing in the cloud. Further, it offers Palladyne IQ used with industrial robots and cobots, enabling them to learn multiple tasks and handle disruptions or obstacles; and develops Palladyne Pilot for use with unmanned platform, such as Class 1 UAVs to enable persistent detection, identification, tracking, and classification of objects of interest by sharing situational awareness information across multiple drones that is derived by fusing multi-modal sensor data. It serves industrial manufacturing, defense, infrastructure maintenance, repair and surveillance, energy, and aerospace and aviation industries. The company was formerly known as Sarcos Technology and Robotics Corporation and changed its name to Palladyne AI Corp. in March 2024. Palladyne AI Corp. is headquartered in Salt Lake City, Utah.
How the Company Makes MoneyPalladyne AI Corp generates revenue through a multi-faceted business model that includes software licensing, subscription services, and consulting fees. The company primarily earns money by licensing its AI software to businesses in the finance and healthcare sectors, where organizations pay for access to proprietary algorithms that improve efficiency and profitability. Additionally, recurring subscription fees for cloud-based AI services contribute significantly to revenue, as clients leverage the technology on an ongoing basis. Consulting services, which include tailored AI integration and support, also serve as a key revenue stream. Strategic partnerships with industry leaders and ongoing collaborations for research and development further enhance PDYN's market presence, driving additional income through joint ventures and shared innovations.
Palladyne AI Corp Earnings Call Summary
Earnings Call Date:Nov 12, 2025
(Q3-2025)
| Next Earnings Date:Feb 26, 2026
Earnings Call Sentiment Positive
The call emphasizes a strategic and transformative set of acquisitions that materially expand Palladyne AI from a small, software-centric firm into a vertically integrated defense and commercial autonomy company. Key positives include a strengthened balance sheet, an 18‑month backlog >$10M at Crucis, direct Air Force and Navy contracts, a patent, substantial production capacity, and expected >3x revenue benefit for 2026 relative to 2024. Notable risks include the relatively small historical revenue base (~$8M in 2024), material acquisition consideration plus a large earn-out contingent on high revenue hurdles, integration and timing uncertainty for embedding software into hardware/product lines, further investment needs (e.g., $5M to reach TRL‑9), and the long sales cycles inherent in commercial and government defense procurement. On balance, the positive strategic momentum, clear go-to-market expansion and strengthened leadership and capabilities outweigh the near-term execution and disclosure risks.Q3-2025 Updates
Positive Updates
Major Strategic Acquisitions and New Business Unit
Closed acquisitions of GuideTech and Crucis and launched Palladyne Defense, creating a vertically integrated defense business combining AI (SwarmOS), aerospace design (GuideTech) and U.S. manufacturing (Crucis). Management expects the combined businesses to operate as one integrated stack serving both primes and direct government customers.
Projected Revenue Expansion — More than Triple 2024
Management expects the combined acquisitions to push consolidated 2026 revenue to more than triple 2024 revenue of about $8 million (i.e., >200% increase vs. 2024), driven by expanded defense and manufacturing revenue streams.
Strong Cash Position and Runway
Ended the quarter with $57.1 million in cash and equivalents and used approximately $6.3 million in operating cash for the quarter. Management states roughly $50 million in cash post-acquisitions, providing runway to integrate acquisitions and advance products.
Backlog and Government Contracts
Crucis has a growing 18-month backlog exceeding $10 million and management reports ongoing development contracts and direct engagements with the U.S. Air Force and U.S. Navy, increasing near-term revenue visibility on the defense side.
Technology and Cost Advantages
BRAIN avionics reportedly delivers legacy flight computer performance at roughly 1/10 of the cost (~90% cost reduction versus legacy systems), designed for attritable/autonomous systems. Company announced a new U.S. patent covering embodied AI and autonomous coordination capabilities.
Product & R&D Commitments
Announced plans to invest $5 million over the next 12–18 months to advance Banshee and SwarmStrike from TRL-6 to TRL-9, and highlighted rapid prototyping capabilities (GuideTech can iterate from concept to flight prototype in under 6 months; first flight in ~4.5 months for SwarmStrike).
Manufacturing and Capacity
Combined operations now include more than 100,000 square feet of production capacity; Crucis is AS9100/9100 certified and supplies components to major defense programs (F-16, F-35, Tomahawk, Harpoon, Bradley), enabling in‑house prototype-to-production capability and surge capacity for U.S. customers.
Strengthened Leadership & Partnerships
Added senior defense and national security leaders to the board and executive team (retired Lt. Gen. Twitty, Doug Dynes, retired Maj. Gen. Lee Levy) and announced collaborations with partners like Red Cat and Draganfly, supporting credibility and go-to-market for defense programs.
Negative Updates
Modest Historical Revenue Base
Palladyne's 2024 revenue was approximately $8 million (a small base), meaning projected growth to >3x 2024 depends heavily on successful integration and ramp of acquired businesses and contract wins.
Acquisition Consideration and Earn‑out Risk
Total consideration paid for the two transactions is roughly $31 million (stock, cash, assumed equipment and real estate debt) plus an earn-out of up to $25 million over five years if GuideTech-related revenues exceed $71 million — a material contingent liability tied to substantial revenue targets.
Integration and Timing Uncertainty
While management expects relatively rapid technical integration (SwarmOS on various boards took weeks historically), they acknowledged SwarmOS embedding into GuideTech and full operational integration is not immediate and details/installed base figures will be disclosed only after the first quarter, creating short-term visibility risk.
Ongoing Investment Needs and Product Risk
Planned $5 million investment to advance Banshee and SwarmStrike to TRL-9 and continued R&D for IntelliSwarm and BRAIN imply additional capital deployment and program execution risk before these products generate meaningful revenue.
Lengthy Commercial Sales Cycle and Dependence on Government Procurement
Commercial IQ sales retain a 12–18 month sales cycle; defense sales remain dependent on government award processes and budgets. Although management reported reengagement post-shutdown, dependence on multi-stage government procurement introduces timing risk and potential seasonality in awards.
Limited Granular Financial Transparency at Close
Management declined to provide detailed installed-base, average deal-size, or channel revenue breakdowns for GuideTech and Crucis immediately post-close, postponing quantitative disclosure until after integration and the next quarter.
Presentation Execution Glitch
Two planned video demonstrations during the call experienced audio gaps and one incorrect video, indicating a minor execution issue during the investor presentation.
Company Guidance
The company provided forward guidance that the combined GuideTech and Crucis acquisitions are expected to more than triple consolidated 2024 revenue (about $8.0M) in 2026 (i.e., >$24M), with the two acquisitions contributing positive adjusted EBITDA, and a growing 18‑month backlog exceeding $10M (including USAF and USN development contracts); total deal consideration was ~ $31M (stock, cash and assumed equipment/real estate debt) plus an earn‑out of up to $25M over five years if GuideTech‑related revenues exceed $71M. Management said it will invest ~$5M over the next 12–18 months to advance Banshee and SwarmStrike from TRL‑6 to TRL‑9, expects to retain roughly $50M in cash post‑acquisitions (the company had $57.1M in cash and equivalents as of Sept. 30 and used ~$6.3M in operating cash that quarter), now has >100,000 sq ft of production capacity, and highlighted BRAIN avionics at ~1/10 the cost of legacy flight computers and GuideTech’s sub‑6‑month design‑to‑prototype cycle (SwarmStrike first flight ~4.5 months) as key enablers of faster time‑to‑revenue.Palladyne AI Corp Financial Statement Overview
Summary
Palladyne AI Corp faces significant financial challenges with declining revenues and persistent losses. The income statement shows a negative revenue growth rate and deeply negative net profit margin. The balance sheet indicates a stable capital structure but poor profitability, with a negative return on equity. Cash flow analysis reveals negative free cash flow growth and cash flow challenges.Income Statement
Palladyne AI Corp's income statement reveals significant challenges. The TTM data shows a negative revenue growth rate of -28.04%, indicating declining sales. Gross profit margin is relatively healthy at 67.71%, but the net profit margin is deeply negative at -7.04%, reflecting substantial losses. EBIT and EBITDA margins are also negative, suggesting operational inefficiencies.30
Negative
Balance Sheet
The balance sheet shows a moderate debt-to-equity ratio of 0.38, indicating manageable leverage. However, the return on equity is negative at -236.83%, highlighting poor profitability. The equity ratio stands at 68.73%, suggesting a stable capital structure despite ongoing losses.40
Negative
Cash Flow
Cash flow analysis indicates negative free cash flow growth of -2.65% TTM, with operating cash flow to net income ratio at -7.30, reflecting cash flow challenges. The free cash flow to net income ratio is slightly positive at 1.01, suggesting some alignment between cash flow and accounting profits.35
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.35M | 7.79M | 6.15M | 14.57M | 5.08M | 8.81M |
| Gross Profit | 2.50M | 4.30M | 1.10M | 2.96M | 1.21M | 3.21M |
| EBITDA | -24.38M | -26.29M | -78.64M | -103.21M | -80.46M | -20.54M |
| Net Income | -41.44M | -72.62M | -115.59M | -157.13M | -81.51M | -20.93M |
Balance Sheet | ||||||
| Total Assets | 72.93M | 56.25M | 60.43M | 167.63M | 235.82M | 38.05M |
| Cash, Cash Equivalents and Short-Term Investments | 57.15M | 40.07M | 39.09M | 114.50M | 217.11M | 33.66M |
| Total Debt | 10.19M | 11.04M | 12.40M | 13.28M | 7.00K | 2.63M |
| Total Liabilities | 21.08M | 65.79M | 19.52M | 23.18M | 21.86M | 5.15M |
| Stockholders Equity | 51.85M | -9.53M | 40.91M | 144.45M | 213.96M | 32.91M |
Cash Flow | ||||||
| Free Cash Flow | -24.75M | -22.89M | -77.40M | -66.89M | -46.79M | -17.83M |
| Operating Cash Flow | -24.23M | -22.63M | -76.62M | -65.39M | -42.10M | -16.88M |
| Investing Cash Flow | -29.21M | 6.88M | 64.68M | -109.05M | -4.69M | -950.00K |
| Financing Cash Flow | 59.47M | 23.80M | -82.00K | -7.52M | 230.24M | 42.30M |
Palladyne AI Corp Technical Analysis
Positive
6.81
Price Trends
5.98
Positive
6.73
Positive
7.41
Negative
Market Momentum
0.16
Positive
52.32
Neutral
61.67
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 6.81 is above the 20-day moving average (MA) of 6.78, above the 50-day MA of 5.98, and below the 200-day MA of 7.41, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 52.32 is Neutral, neither overbought nor oversold. The STOCH value of 61.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PDYN.
Palladyne AI Corp Risk Analysis
Palladyne AI Corp disclosed 62 risk factors in its most recent earnings report. Palladyne AI Corp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Palladyne AI Corp Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | $127.31M | -4.57 | -100.31% | ― | 312.20% | ― | |
48 Neutral | $282.76M | -1.32 | ― | ― | -17.50% | -51.25% | |
48 Neutral | $258.88M | ― | ― | ― | ― | ― | |
47 Neutral | $1.49B | -3.78 | -46.77% | ― | 1.84% | -27.74% | |
46 Neutral | $1.79B | -2.95 | -111.83% | ― | -6.95% | -53.69% | |
41 Neutral | $286.27M | -4.24 | -110.11% | ― | -44.07% | 25.75% |
* Technology Sector Average
PDYN
Palladyne AI Corp
6.87
0.39
6.02%
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Palladyne AI Corp Corporate Events
Business Operations and StrategyProduct-Related Announcements
Palladyne AI Corp Unveils Defense-Focused Transformation
Positive
Nov 17, 2025
On November 17, 2025, Palladyne AI Corp released an investor presentation outlining its strategic transformation into a defense-focused business. The company has launched Palladyne Defense, integrating AI intelligence, design engineering, and U.S.-based manufacturing to meet the demand for affordable, intelligent systems. This move positions Palladyne AI as a bridge between startups and large primes, aiming to provide agile, vertically integrated solutions for defense and public safety missions.
The most recent analyst rating on (PDYN) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Palladyne AI Corp stock, see the PDYN Stock Forecast page.
Business Operations and StrategyM&A Transactions
Palladyne AI Corp Acquires GuideTech and Crucis
Positive
Nov 17, 2025
On November 14, 2025, Palladyne AI Corp completed the acquisition of GuideTech LLC and the Crucis Companies, marking a significant transformation into a vertically integrated defense technology company. These acquisitions are expected to more than triple Palladyne’s 2024 revenue by 2026 and align with the Department of War’s modernization priorities, enhancing U.S. defense capabilities through reshored production and advanced autonomous systems.
The most recent analyst rating on (PDYN) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Palladyne AI Corp stock, see the PDYN Stock Forecast page.
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Palladyne AI Corp Appoints Lt. Gen. Twitty to Board
Positive
Nov 12, 2025
Palladyne AI Corp. reported its third-quarter fiscal 2025 results, highlighting a strong financial position with $57.1 million in cash and no debt, alongside strategic advancements in defense applications. The company announced the issuance of a new patent for its closed loop tasking and control architecture, enhancing its AI-driven autonomy platform. Additionally, Palladyne AI is optimistic about a potential development award from the Department of War and has appointed Lieutenant General Stephen M. Twitty to its Board of Directors, strengthening its alignment with defense priorities. The company is also collaborating with Draganfly to integrate its Palladyne Pilot software into UAV platforms, expanding its reach in defense environments.
The most recent analyst rating on (PDYN) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Palladyne AI Corp stock, see the PDYN Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.