Palladyne AI Corp (PDYN) AI Stock Analysis

• Market Cap: $322.17M
• Dividend Yield: N/A
• Average Volume (3M): 2.85M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.49
• Revenue Growth: -50.07%
• EPS Growth: 40.90%
• Country: US
• Employees: 71
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Infrastructure
• EPS (TTM): -1.87
• Shares Outstanding: 41,948,875
• 10 Day Avg. Volume: 1,547,815
• 30 Day Avg. Volume: 2,846,514
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.11
• Enterprise Value/Revenue: 8.47
• Enterprise Value/Gross Profit: 14.79
• Enterprise Value/Ebitda: -1.31
• 1Y Price Target: $7.00
• Price Target Upside: -11.05% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: $7.00 ▼(-11.05% Downside)

Palladyne AI Corp's overall stock score is primarily impacted by its significant financial challenges, including declining revenues and persistent losses. Technical analysis shows mixed signals, and valuation metrics are unfavorable due to unprofitability. However, recent corporate events provide a positive outlook with strategic growth initiatives and a strengthened balance sheet.

Palladyne AI Corp Business Overview & Revenue Model

Company Description

Palladyne AI Corp (PDYN) is a cutting-edge technology firm specializing in artificial intelligence solutions across various sectors, including finance, healthcare, and logistics. The company develops advanced AI algorithms and machine learning models that enhance operational efficiencies, improve decision-making processes, and provide predictive analytics to its clients. With a focus on innovation, Palladyne AI Corp aims to empower businesses by integrating AI technologies into their existing frameworks, driving transformation and growth.

How the Company Makes Money

Palladyne AI Corp generates revenue primarily through a subscription-based model, offering its AI software solutions to businesses on a monthly or annual basis. Additionally, the company earns income through one-time licensing fees for its proprietary technology, as well as through consulting services that help clients implement and optimize these AI solutions. Key revenue streams include partnerships with large enterprises for customized AI projects, maintenance and support services, and training programs designed to educate clients on AI best practices. Strategic alliances with technology providers and industry leaders also contribute to Palladyne's earnings by expanding its market reach and enhancing its product offerings.

Palladyne AI Corp Financial Statement Overview

Summary

Palladyne AI Corp faces significant financial challenges with declining revenues and persistent losses. The income statement reveals a negative revenue growth rate of -28.04% and a deeply negative net profit margin of -7.04%. The balance sheet shows a moderate debt-to-equity ratio but a negative return on equity of -236.83%. Cash flow analysis indicates 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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.36M	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	-28.14M	-26.29M	-78.64M	-103.21M	-80.46M	-20.54M
Net Income	-44.79M	-72.62M	-115.59M	-157.13M	-81.51M	-20.93M
Balance Sheet
Total Assets	78.31M	56.25M	60.43M	167.63M	235.82M	38.05M
Cash, Cash Equivalents and Short-Term Investments	62.70M	40.07M	39.09M	114.50M	217.11M	33.66M
Total Debt	10.43M	11.04M	12.40M	13.28M	7.00K	2.63M
Total Liabilities	24.48M	65.79M	19.52M	23.18M	21.86M	5.15M
Stockholders Equity	53.83M	-9.53M	40.91M	144.45M	213.96M	32.91M
Cash Flow
Free Cash Flow	-22.59M	-22.89M	-77.40M	-66.89M	-46.79M	-17.83M
Operating Cash Flow	-22.44M	-22.63M	-76.62M	-65.39M	-42.10M	-16.88M
Investing Cash Flow	-42.05M	6.88M	64.68M	-109.05M	-4.69M	-950.00K
Financing Cash Flow	58.80M	23.80M	-82.00K	-7.52M	230.24M	42.30M

Palladyne AI Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.87
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 7.87 is above the 20-day moving average (MA) of 7.74, below the 50-day MA of 8.62, and above the 200-day MA of 7.23, indicating a neutral trend. The MACD of -0.32 indicates Negative momentum. The RSI at 46.81 is Neutral, neither overbought nor oversold. The STOCH value of 77.68 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	$149.11M	19.36	56.45%	―	―	―
BLZE	66 Neutral	$458.78M	―	-69.83%	―	19.08%	28.99%
Sector *	61 Neutral	$35.62B	7.50	-10.94%	1.87%	8.86%	-10.27%
KLTR	56 Neutral	$247.19M	―	-94.40%	―	2.56%	59.00%
PDYN	46 Neutral	$322.17M	―	-107.11%	―	-50.07%	40.90%
ARQQ	42 Neutral	$453.18M	―	-160.52%	―	-67.43%	87.17%
MLGO	―	$105.59M	5.11		―	―	―

Palladyne AI Corp Corporate Events

Palladyne AI Corp Reports Strong H1 2025 Financials

On August 6, 2025, Palladyne AI Corp. announced significant business and financial achievements for the first half of 2025, including a strengthened balance sheet with $62.7 million in cash and no debt, and the successful raising of $34.8 million through market offerings. The company met its financial and product development objectives and plans to release Version 2 of its Palladyne IQ software later in 2025. Amidst U.S.-China tensions and reshoring policies, Palladyne AI sees increased demand for AI-driven robotics in manufacturing and defense sectors. Despite market uncertainties slowing sales momentum, the company is optimistic about long-term growth opportunities in AI-driven automation, public safety, and defense spending, with plans to expand its business through strategic relationships and potential acquisitions.

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.

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.