Palladyne AI Corp (PDYN) AI Stock Analysis

• Market Cap: $273.24M
• Dividend Yield: N/A
• Average Volume (3M): 1.37M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.73
• Revenue Growth: -44.07%
• EPS Growth: 25.75%
• Country: US
• Employees: 71
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): N/A
• Shares Outstanding: 42,037,410
• 10 Day Avg. Volume: 1,232,674
• 30 Day Avg. Volume: 1,368,455
• PEG Ratio: 0.12
• Price to Book (P/B): -34.46
• Price to Sales (P/S): 42.19
• P/FCF Ratio: -14.35
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 76.07
• Enterprise Value/Gross Profit: 132.03
• Enterprise Value/Ebitda: -13.56
• 1Y Price Target: $11.00
• Price Target Upside: 69.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: $8.00 ▲(23.08% Upside)

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 Business Overview & Revenue Model

Company Description

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) 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 Money

Palladyne 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 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.

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	4.35M	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

• Technical Analysis Sentiment: Neutral
• Last Price: 6.50
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PDYN, the sentiment is Neutral. The current price of 6.5 is above the 20-day moving average (MA) of 4.86, above the 50-day MA of 5.72, and below the 200-day MA of 7.31, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 66.98 is Neutral, neither overbought nor oversold. The STOCH value of 93.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PDYN.

Palladyne AI Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ZENA	51 Neutral	$136.79M	-6.96	-100.32%	―	312.20%	―
VERI	50 Neutral	$440.67M	-2.11	―	―	-17.50%	-51.25%
GRRR	48 Neutral	$296.06M	―	―	―	―	―
AI	47 Neutral	$1.95B	-4.89	-46.77%	―	1.84%	-27.74%
BBAI	46 Neutral	$2.69B	-4.34	-111.83%	―	-6.95%	-53.69%
PDYN	41 Neutral	$273.24M	-3.84	-110.11%	―	-44.07%	25.75%

Palladyne AI Corp Corporate Events

Palladyne AI Corp Unveils Defense-Focused Transformation

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.

Palladyne AI Corp Acquires GuideTech and Crucis

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.

Palladyne AI Corp Appoints Lt. Gen. Twitty to Board

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.