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Unusual Machines Inc. (UMAC)
:UMAC
US Market

Unusual Machines Inc. (UMAC) AI Stock Analysis

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UMAC

Unusual Machines Inc.

(UMAC)

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Neutral 65 (OpenAI - 5.2)
Rating:65Neutral
Price Target:
$15.00
▲(1.76% Upside)
The score is held back primarily by weak financial performance (large TTM losses and negative free cash flow), despite balance-sheet strength. Offsetting this, technicals are strong with clear upside trend signals, and the latest earnings call and recent corporate updates point to improving operating momentum (first profitable quarter, growing enterprise orders, and optimistic cash flow expectations). Valuation remains a concern due to the negative P/E and no dividend yield support.
Positive Factors
Balance Sheet Strength
Extremely low leverage and a sizable equity base give Unusual Machines a durable liquidity and solvency buffer. This financial runway supports multi-quarter scaling investments, absorbs near-term losses, and reduces refinancing risk as the firm commercializes products and expands manufacturing.
Enterprise Order Momentum
Large enterprise purchase orders materially increase revenue visibility and lower customer concentration risk versus consumer sales. Recurring, contract-driven enterprise demand helps stabilize cash flows and supports a path to consistent operating cash generation as production scales.
U.S. Manufacturing & Defense Alignment
Investment in domestic motor production and NDAA-compliant supply positions the company to capture multi-year federal and defense procurement spending and onshoring trends. Vertical manufacturing capability strengthens competitive differentiation and long-term addressable market access.
Negative Factors
Negative Operating Cash Flow
Sustained negative operating and free cash flow is a durable constraint on financial flexibility. Even with large cash reserves, ongoing cash burn increases reliance on capital raises or asset sales and narrows the runway if revenue scaling or margin improvements are delayed.
Large Historical Net Losses
Material trailing losses and negative EBITDA indicate the business model has not yet delivered consistent profitability. One profitable quarter is encouraging, but sustained multi-quarter earnings improvement is required to preserve equity value and validate operating leverage assumptions.
Rising Operating Expenses from Scaling
Rapid headcount expansion, production ramp and one-time charges are driving operating costs higher. While necessary to scale, persistent elevated opex raises the breakeven revenue level and heightens sensitivity to demand disruptions, potentially delaying durable cash-flow positivity.

Unusual Machines Inc. (UMAC) vs. SPDR S&P 500 ETF (SPY)

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:Nov 06, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Mar 26, 2026
Earnings Call Sentiment Positive
The earnings call highlighted Unusual Machines' first profitable quarter, record revenue growth, expansion in enterprise sales, and a strong cash position, indicating positive momentum. However, increased operating expenses, the impact of the U.S. government shutdown, and challenges in the consumer segment were noted as concerns.
Q3-2025 Updates
Positive Updates
First Profitable Quarter
Unusual Machines reported its first profitable quarter with net income of $1.6 million.
Record Revenue Growth
Achieved record revenues for the sixth consecutive quarter with a 39% growth from the prior year, ending Q3 with over $2.1 million in revenue.
Enterprise Sales Expansion
More than 50% of revenue was from enterprise sales, with enterprise purchase orders totaling more than $16 million.
Successful Financing and Cash Position
Executed staircase financing strategy, resulting in over $130 million in the bank, with a strong cash position of $64.3 million at the end of the quarter.
Motor Production Facility Operational
The motor factory in Orlando became operational, and the company started producing American-made motors.
Significant Workforce Growth
The team expanded from 19 to over 60 people during the quarter to meet increasing demand.
Negative Updates
Increased Operating Expenses
Operating expenses increased quarter-over-quarter due to investments in motor and headset production, including non-cash stock compensation expense of $2.1 million and nonrecurring expenses of $1.2 million.
Impact of U.S. Government Shutdown
The government shutdown prevented customers from getting additional orders, affecting the company's ability to receive purchase orders.
Consumer Business Challenges
The consumer segment was down due to summer tariff uncertainty and stock issues, although a rebound is expected in Q4.
Company Guidance
During Unusual Machines' third quarter 2025 earnings call, the company provided an optimistic outlook, highlighting several key metrics. The company reported its first profitable quarter with net income of $1.6 million, supported by record revenues for the sixth consecutive quarter and its best gross margin to date. Unusual Machines achieved a revenue of $2.1 million for the three months ending September 30, 2025, marking a 39% increase from the previous year, while year-to-date revenue reached $6.3 million, up 55% year-over-year. The company also closed the Rotor Lab acquisition and commenced production at its motor factory in Orlando, aiming to scale production significantly. With over $130 million in cash reserves, Unusual Machines is well-capitalized to support its growth strategy, including expanding its workforce from 19 to over 60 employees. The company anticipates maintaining a low cash burn and expects positive cash flow from operations, projecting that the U.S. drone market will continue to grow significantly.

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.
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.
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue8.30M5.57M0.000.004.99K
Gross Profit2.69M1.55M0.000.004.99K
EBITDA-35.61M-31.80M-2.38M-1.17M-161.88K
Net Income-35.75M-31.98M-2.38M-1.17M-161.88K
Balance Sheet
Total Assets113.08M16.11M1.53M3.33M3.90M
Cash, Cash Equivalents and Short-Term Investments81.14M3.76M894.77K3.10M3.79M
Total Debt1.28M329.99K0.000.000.00
Total Liabilities7.06M1.29M114.50K131.93K0.00
Stockholders Equity106.02M14.82M1.41M3.20M3.90M
Cash Flow
Free Cash Flow-14.22M-4.00M-1.78M-1.19M-162.82K
Operating Cash Flow-12.67M-4.00M-1.78M-1.19M-162.82K
Investing Cash Flow-12.46M-852.80K-3.16K40.65K0.00
Financing Cash Flow87.73M7.71M-424.93K462.07K3.95M

Unusual Machines Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price14.74
Price Trends
50DMA
11.12
Positive
100DMA
11.81
Positive
200DMA
9.70
Positive
Market Momentum
MACD
1.20
Negative
RSI
61.32
Neutral
STOCH
60.92
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 14.74 is above the 20-day moving average (MA) of 12.30, above the 50-day MA of 11.12, and above the 200-day MA of 9.70, indicating a bullish trend. The MACD of 1.20 indicates Negative momentum. The RSI at 61.32 is Neutral, neither overbought nor oversold. The STOCH value of 60.92 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$522.53M-4.18-57.08%133.20%-253.98%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
UMAC
Unusual Machines Inc.
14.74
3.68
33.27%
ANSC
Agriculture & Natural Solutions Acquisition Corporation Class A
11.19
0.70
6.67%
GPAT
GP-Act III Acquisition Corporation Class A
10.73
0.55
5.46%
GIG
GigCapital7 Corp. Class A
10.53
0.51
5.09%
AAM
AA Mission Acquisition Corp. Class A
10.66
0.54
5.34%

Unusual Machines Inc. Corporate Events

Business Operations and StrategyFinancial Disclosures
Unusual Machines unveils growth strategy for U.S. drone components
Positive
Jan 12, 2026

On January 12, 2026, Unusual Machines Inc. disclosed that it had uploaded a new investor presentation outlining its strategy to capitalize on surging demand for U.S.-made small drone components, underscored by quarter-over-quarter revenue growth from $8 million to $20 million annualized, $20 million in enterprise purchase orders expected to be fulfilled through the first half of 2026, and a balance sheet showing $100 million in cash, $10 million in inventory and no debt. The presentation highlights an aggressive growth plan built on expanded U.S. production lines, automation investments and elevated inventory levels, while recent U.S. legislation, FCC actions and a large Pentagon drone procurement initiative collectively reinforce the company’s competitive position as a domestic, NDAA-compliant supplier in a market it sizes at roughly $600 million for U.S.-made drone components.

The most recent analyst rating on (UMAC) stock is a Buy with a $17.00 price target. To see the full list of analyst forecasts on Unusual Machines Inc. stock, see the UMAC Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Unusual Machines Secures Major Purchase Order for Drone Program
Positive
Dec 22, 2025

On December 22, 2025, Unusual Machines Inc. announced it had received an initial $3.75 million purchase order from Performance Drone Works as part of a strategic supplier relationship to support PDW’s AM-FPV program and strengthen America’s small unmanned aircraft systems supply base. The order, which follows Unusual Machines’ recent investments in U.S.-based manufacturing for motors and headset assembly, underscores the company’s role in building a domestic supply chain for critical drone components and aligns it with U.S. defense-focused demand, potentially enhancing its position as a key domestic provider to the U.S. drone and defense robotics ecosystem.

The most recent analyst rating on (UMAC) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Unusual Machines Inc. stock, see the UMAC Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Unusual Machines Shareholders Reelect Full Board at Annual Meeting
Positive
Dec 19, 2025

At its 2025 Annual Meeting held on December 19, 2025, Unusual Machines Inc. reported that stockholders elected five directors—Dr. Allan Evans, Cristina A. Colón, Robert Lowry, Sanford Rich and Jeffrey Thompson—to serve one-year terms expiring at the company’s next annual meeting. Shareholders also had been asked to approve a potential adjournment of the meeting to allow additional proxy solicitation if needed, but because Proposal 1 received sufficient support, the adjournment measure became moot, signaling solid shareholder backing for the company’s current board slate and governance direction.

The most recent analyst rating on (UMAC) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Unusual Machines Inc. stock, see the UMAC Stock Forecast page.

Business Operations and StrategyProduct-Related Announcements
Unusual Machines Unveils Growth Strategy Amid Drone Demand
Positive
Dec 17, 2025

On December 17, 2025, Unusual Machines Inc. announced an investor presentation detailing its aggressive growth strategy aimed at meeting increasing demand for U.S.-made drone components fueled by regulatory shifts, global conflicts, and federal funding initiatives. With $16 million in purchase orders expected by mid-2026, the company plans to expand production through automation, specialized facilities, and inventory optimization, while maintaining strong financial positioning with over $100 million in cash and no debt. These developments position Unusual Machines to benefit from growing market opportunities and establish itself as a leading supplier in the multi-year expansion away from foreign-made drone products.

The most recent analyst rating on (UMAC) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Unusual Machines Inc. stock, see the UMAC Stock Forecast page.

Business Operations and Strategy
Unusual Machines Secures Strategic Supplier Agreement
Positive
Dec 8, 2025

On December 8, 2025, Unusual Machines announced a strategic supplier agreement with Dynamic Aerospace Systems to provide NDAA-compliant drone components for DAS’s commercial and defense unmanned aerial systems. This partnership supports DAS’s expansion into new markets in the Middle East and Europe, enhancing Unusual Machines’ revenue mix and reinforcing the value of American-made components.

The most recent analyst rating on (UMAC) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Unusual Machines Inc. stock, see the UMAC Stock Forecast page.

Shareholder Meetings
Unusual Machines Adjourns Annual Meeting Due to Quorum
Neutral
Dec 4, 2025

On December 4, 2025, Unusual Machines, Inc. announced the adjournment of its Annual Meeting of Stockholders, initially convened on December 1, 2025, due to a lack of quorum. The meeting is rescheduled for December 19, 2025, to solicit additional proxies for approving the election of five directors for a one-year term. The company emphasizes the importance of this proposal for its and its stockholders’ best interests, urging stockholders to vote by December 18, 2025.

The most recent analyst rating on (UMAC) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Unusual Machines Inc. stock, see the UMAC Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
Unusual Machines Invests $25M in XTI Aerospace
Positive
Nov 14, 2025

On November 12, 2025, Unusual Machines, Inc. invested $25 million in XTI Aerospace, Inc. by purchasing 25,000 shares of XTI’s Series 10 Convertible Preferred Stock through a private placement. This strategic investment, which included an advance of $10.5 million on November 10, 2025, positions Unusual Machines to benefit from XTI’s growth and potentially enhances its market influence in the drone sector.

The most recent analyst rating on (UMAC) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Unusual Machines Inc. stock, see the UMAC Stock Forecast page.

Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Unusual Machines Reports First Profitable Quarter in Q3 2025
Positive
Nov 6, 2025

On November 6, 2025, Unusual Machines, Inc. announced its first profitable quarter with a net gain of $0.05 per share for Q3 2025, driven by a 39% year-over-year revenue increase to $2.13 million, primarily from enterprise sales. The company raised $72.1 million in October, boosting its cash position to over $133 million, and plans to expand its manufacturing footprint and workforce to capitalize on growing enterprise sales and achieve consistent cash flow positivity by 2026.

The most recent analyst rating on (UMAC) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Unusual Machines Inc. stock, see the UMAC Stock Forecast page.

Business Operations and Strategy
Unusual Machines Expands Drone Manufacturing in Orlando
Positive
Nov 5, 2025

On October 30, 2025, Unusual Machines Inc. signed a lease for a new 25,000-square-foot facility in Orlando, Florida, to expand its drone manufacturing capabilities. This expansion is part of the company’s strategy to enhance its U.S. operations by improving coordination between manufacturing and logistics, thereby better meeting the increasing demand for drone components across consumer, enterprise, and defense sectors.

The most recent analyst rating on (UMAC) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Unusual Machines Inc. stock, see the UMAC Stock Forecast page.

Business Operations and StrategyProduct-Related AnnouncementsRegulatory Filings and Compliance
Unusual Machines Secures Major U.S. Army Contract
Positive
Oct 15, 2025

On October 15, 2025, Unusual Machines announced a significant order from the U.S. Army’s 101st Airborne Division for 3,500 NDAA-compliant motors and additional components for their A.B.E. V1.01 drones. This order highlights the company’s commitment to U.S.-based manufacturing and compliance, potentially strengthening its market position as the Army plans further procurement in 2026.

The most recent analyst rating on (UMAC) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Unusual Machines Inc. stock, see the UMAC 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.Date of analysis: Jan 13, 2026