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Unusual Machines Inc. (UMAC)
:UMAC
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Unusual Machines Inc.
(NYSE MKT:UMAC)
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Rating:41Neutral
Price Target:―
Unusual Machines Inc. faces significant challenges with profitability and sustainability, as reflected in its low financial performance score. The technical analysis indicates volatility, with bearish sentiment prevailing. Valuation is unattractive due to negative earnings. The earnings call showed mixed results with some positive strategic developments, while recent corporate events indicate potential for future growth. These factors result in an overall low stock score.
Positive Factors
Revenue Growth
Record revenue growth indicates strong market demand and effective sales strategies, positioning the company for continued expansion.
Strategic Investments
Strategic investments in the drone industry can enhance UMAC's market position and technological capabilities, supporting long-term growth.
Debt Elimination
Eliminating debt improves financial stability and reduces interest obligations, allowing more resources for growth initiatives.
Negative Factors
Profitability Challenges
Significant net losses highlight ongoing profitability challenges, which can hinder reinvestment and long-term sustainability.
Cash Flow Issues
Negative cash flows indicate operational inefficiencies and reliance on external funding, impacting financial health and growth potential.
European Market Challenges
Failure to capture expected European market opportunities limits revenue diversification and growth prospects in a key region.
Unusual Machines Inc. (UMAC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$393.09M
Dividend YieldN/A
Average Volume (3M)2.94M
Price to Earnings (P/E)―
Beta (1Y)2.79
Revenue Growth279.38%
EPS Growth-468.91%
CountryUS
Employees16
SectorGeneral
Sector StrengthN/A
IndustryShell Companies
Share Statistics
EPS (TTM)-0.32
Shares Outstanding30,448,557
10 Day Avg. Volume3,782,646
30 Day Avg. Volume2,936,865
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.38
Enterprise Value/Revenue19.21
Enterprise Value/Gross Profit67.91
Enterprise Value/Ebitda-3.76
Forecast
1Y Price Target
$18.00Price Target Upside30.43% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Unusual Machines Inc. Business Overview & Revenue Model
Company DescriptionUnusual Machines, Inc. designs, manufactures, and sells ultra-low latency video goggles for drone pilots. It also operates a drone-focused e-commerce marketplace. The company was formerly known as AerocarveUS Corporation and changed its name to Unusual Machines, Inc. in July 2022. Unusual Machines, Inc. was incorporated in 2019 and is based in San Juan, Puerto Rico.
How the Company Makes MoneyUMAC generates revenue through the sale of its advanced robotics and automation systems to businesses across multiple sectors. The company offers both direct sales and leasing options, allowing clients to choose the most suitable financial model for their needs. Additionally, UMAC provides ongoing maintenance and support services, which contribute to recurring revenue streams. The company may also engage in strategic partnerships with other technology firms to co-develop solutions, thereby expanding its reach and creating additional revenue opportunities. Revenue is further bolstered by licensing its proprietary technology to other companies, enabling them to incorporate UMAC's innovations into their own products.
Unusual Machines Inc. Earnings Call Summary
Earnings Call Date:Aug 14, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 13, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong performance in terms of revenue growth and cash position, along with strategic expansion and acquisition plans. However, challenges such as increased tariff costs and higher operating expenses leading to a net loss were noted. The positive aspects slightly outweigh the negatives, pointing towards a cautiously optimistic outlook.Q2-2025 Updates
Positive Updates
Record Revenue Growth
Unusual Machines reported its highest revenue quarter of all time for Q2 2025, marking the fifth consecutive record-breaking quarter with a 51% increase over Q2 last year, generating $2.12 million in sales.
Increased Gross Margin and Enterprise Sales
The company achieved a 37% gross margin in Q2 2025, up from 31% year-to-date, with enterprise sales surpassing 30% of total sales.
Strong Cash Position
Unusual Machines increased its cash position to over $80 million after raising $44.9 million in Q3, with no debt reported.
Expansion and Hiring Plans
The company is expanding its workforce from 19 to 50 employees by the end of 2025 and is setting up new facilities for motor production and headset assembly in Orlando.
Strategic Acquisitions
Unusual Machines expects to close the purchase of Rotor Lab in Australia in Q3 2025, pending final approval from the Australian government.
Negative Updates
Increased Tariff Costs
The company faced increased tariff costs during Q2 2025, which they were able to pass on to customers, but remain a challenge moving forward.
Operating Expenses and Net Loss
Operating expenses increased due to setup costs for new facilities, and the company reported a net loss of approximately $6.9 million, including $6.1 million of non-recurring and non-cash costs.
Company Guidance
During the second quarter earnings call for Unusual Machines, guidance was provided with a focus on several key metrics and future expectations. The company reported a record revenue of $2.12 million, marking a 51% growth compared to the same quarter last year, and achieved a gross margin of 37%. They anticipate the delivery of their first motors in September 2025 and expect to close the acquisition of Rotor Lab in the third quarter. The workforce is projected to grow from 29 to 50 employees by the end of 2025. Unusual Machines also highlighted their strong cash position, starting the quarter with $5 million, ending with $38.9 million, and having raised an additional $44.9 million, which positions them comfortably with over $80 million in cash. The company aims to become cash flow positive by 2026, targeting $20 million to $30 million in annual revenue to reach that goal. They also expect the U.S. drone market to expand significantly and are preparing to scale their production and supply chains accordingly while maintaining low cash burn.Unusual Machines Inc. Financial Statement Overview
Summary
Unusual Machines Inc. faces significant profitability and cash flow challenges despite a large revenue increase. The company benefits from low leverage, but operational inefficiencies and poor cash flow sustainability are major concerns for long-term viability.Income Statement
The company shows a dramatic increase in revenue from 2023 to 2024, but this is accompanied by substantial negative net income and EBIT margins, indicating operational inefficiencies and potential sustainability concerns. The net profit margin is deeply negative, suggesting the company is not currently profitable.25
Negative
Balance Sheet
The company has a high equity ratio, indicating low leverage and a solid equity base, which is a potential strength. However, the significant negative net income impacts the return on equity negatively. The debt levels are low, suggesting low financial risk from debt obligations.40
Negative
Cash Flow
The company has negative operating and free cash flows, which is a red flag for sustainability. However, there is a significant inflow from financing activities, possibly indicating reliance on external funding to maintain operations.30
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.70M | 5.57M | 158.28M | 0.00 | 4.99K |
| Gross Profit | 2.18M | 1.47M | 158.28M | -885.00 | 4.99K |
| EBITDA | -39.34M | -31.80M | -2.38M | -1.24M | -161.88K |
| Net Income | -39.49M | -31.98M | -2.38M | -1.24M | -161.88K |
Balance Sheet | |||||
| Total Assets | 52.45M | 16.11M | 1.53M | 3.33M | 3.90M |
| Cash, Cash Equivalents and Short-Term Investments | 38.93M | 3.76M | 894.77K | 3.10M | 3.79M |
| Total Debt | 297.33K | 329.99K | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 1.14M | 1.29M | 114.50K | 120.94K | 0.00 |
| Stockholders Equity | 51.31M | 14.82M | 1.41M | 3.21M | 3.90M |
Cash Flow | |||||
| Free Cash Flow | -2.72B | -4.00M | -1.78M | -1.24M | -162.82K |
| Operating Cash Flow | -2.72B | -4.00M | -1.78M | -1.23M | -162.82K |
| Investing Cash Flow | -852.21M | -852.80K | -3.16K | -4.58K | 0.00 |
| Financing Cash Flow | 4.40B | 7.71M | -424.93K | 549.90K | 3.95M |
Unusual Machines Inc. Technical Analysis
Positive
13.80
Price Trends
10.63
Positive
9.09
Positive
9.28
Positive
Market Momentum
0.95
Negative
65.59
Neutral
58.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UMAC, the sentiment is Positive. The current price of 13.8 is above the 20-day moving average (MA) of 11.38, above the 50-day MA of 10.63, and above the 200-day MA of 9.28, indicating a bullish trend. The MACD of 0.95 indicates Negative momentum. The RSI at 65.59 is Neutral, neither overbought nor oversold. The STOCH value of 58.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UMAC.
Unusual Machines Inc. Peers Comparison
UnderperformOutperform
Sector (55)
UMAC
Unusual Machines Inc.
13.80
12.27
801.96%
IVCAF
Investcorp AI Acquisition
12.98
1.45
12.58%
SVII
Spring Valley Acquisition Corp. II Class A
12.70
1.41
12.49%
ISRL
Israel Acquisitions Corp. Class A
12.20
1.02
9.12%
OAKU
Oak Woods Acquisition Corporation Class A
11.90
0.78
7.01%
BAYA
Bayview Acquisition Corp Class A
11.13
0.65
6.20%
Unusual Machines Inc. Corporate Events
Business Operations and StrategyFinancial Disclosures
Unusual Machines Inc. Highlights Strategic Growth in Drone Market
Positive
Mar 17, 2025
On March 17, 2025, Unusual Machines, Inc. presented at an investor conference, highlighting its strategic growth in the American drone market. The company reported significant revenue increases, a strong cash position, and no debt, positioning itself to capitalize on new U.S. legislation favoring domestic drone production. The company is expanding its market presence with a focus on organic growth, acquisitions, and leveraging its B2C foundation to drive B2B and B2G sales, particularly in the defense sector.
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.