Want to see UMAC full AI Analyst Report?
Top Page
Unusual Machines Inc.
(UMAC)
Select Model
Select Model
Rating:54Neutral
Price Target:
$27.00
▲(39.46% Upside)
Action:Reiterated
Date:08/10/26
UMAC’s score is held back primarily by very weak financial performance (large losses and severe cash burn), which outweighs the balance-sheet benefit of low leverage. Technicals are supportive with price above key moving averages and positive MACD, and the earnings call points to strong revenue momentum and ample liquidity, but execution risks (supply constraints, quality issues, and margin volatility) keep the overall rating in the mid-range.
Positive Factors
Rapid revenue growth and enterprise customer mix
Sustained high single-quarter growth and a clear shift to enterprise customers indicate durable market traction and higher-quality revenue. Enterprise concentration typically yields larger, repeatable contracts and stickier relationships that support scaling revenue and predictable demand over the next several quarters.
Negative Factors
Severe cash burn and persistent losses
Extremely negative operating and free cash flow coupled with large net losses create a durable funding pressure. Even with current cash, ongoing burn increases the probability of future dilutive financings or costly capital solutions, challenging the path to sustained positive cash generation and profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Rapid revenue growth and enterprise customer mix
Sustained high single-quarter growth and a clear shift to enterprise customers indicate durable market traction and higher-quality revenue. Enterprise concentration typically yields larger, repeatable contracts and stickier relationships that support scaling revenue and predictable demand over the next several quarters.
Read all positive factors
Unusual Machines Inc. (UMAC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.30B
Dividend YieldN/A
Average Volume (3M)4.09M
Price to Earnings (P/E)―
Beta (1Y)3.70
Revenue Growth313.57%
EPS Growth95.76%
CountryUS
Employees16
SectorTechnology
Sector Strength88
IndustryShell Companies
Share Statistics
EPS (TTM)-0.24
Shares Outstanding49,956,505
10 Day Avg. Volume3,328,806
30 Day Avg. Volume4,092,184
Financial Highlights & Ratios
PEG Ratio0.21
Price to Book (P/B)1.89
Price to Sales (P/S)29.59
P/FCF Ratio-14.26
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$38.00Price Target Upside96.28% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)-0.3
Revenue Forecast (FY)$39.49M
Unusual Machines Inc. Business Overview & Revenue Model
Company Description
Unusual 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 Un...
How the Company Makes Money
null...
Unusual Machines Inc. Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational momentum: exceptional revenue growth (687% YoY, 107% QoQ), improved adjusted EBITDA trend, healthy gross margins and a robust cash/working capital position. Management acknowledged significant supply chain and quality challenges, elevated operating expenses tied to deliberate scaling, and capacity constraints that require near-term infrastructure investment. The positives — rapid top-line expansion, liquidity buffer, enterprise revenue mix, and tangible progress toward automated motor production — materially outweigh the operational and execution risks described, though those risks require active mitigation to capture the large government-driven demand pipeline.Positive Updates
Massive Revenue Growth
Operating revenue of $16.7M in Q2 2026, a 687% year-over-year increase and a 107% sequential increase from Q1 2026; revenue year-to-date of $24.8M.
Negative Updates
GAAP Loss and Elevated Operating Expenses
GAAP loss of approximately $7.8M in Q2 2026; operating expenses increased to $13.6M including $5.7M noncash stock compensation and ~$1.8M in nonrecurring expenses, with management expecting additional operating expense increases as they hire and expand facilities.
Read all updates
Q2-2026 Updates
Positive
Negative
Massive Revenue Growth
Operating revenue of $16.7M in Q2 2026, a 687% year-over-year increase and a 107% sequential increase from Q1 2026; revenue year-to-date of $24.8M.
Read all positive updates
Company Guidance
Management did not give formal guidance but provided internal targets and outlook: after Q2 revenue of $16.7M (up 687% YoY and 107% sequential, YTD $24.8M), adjusted EBITDA loss narrowed from ~$1.6M in Q1 to ~$0.4M in Q2, GAAP net loss was ~$7.8M or $0.16/share (vs $0.32/share prior-year), gross margin was 34.7%, operating expenses were $13.6M (including $5.7M stock‑comp and $1.8M nonrecurring), headcount rose from 141 to 240, cash was $229M with total working capital ~ $367.5M, short‑term investments >$86M and inventory/prepaids ≈ $42–42.7M. For the near term they’re targeting $12–14M of revenue in Q3 and an internal target of ~$25M in Q4, expect demand to remain supply‑constrained into 2027 (citing >60,000 drones expected in H2’26), anticipate continued margin volatility in 2026 while scaling manufacturing (high‑speed motor line being installed) and expanding space (now ~70k sq ft plus additions of 15k, 4k, 18k and a search for 100–200k more), and aim long‑term toward sustaining low‑30%+ gross margins with a longer‑term aspiration around a $250M addressable opportunity in 2027.Unusual Machines Inc. Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
66
Positive
Cash Flow
14
Very Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 31.85M | 11.20M | 5.57M | 0.00 | 0.00 | 4.99K |
| Gross Profit | 11.01M | 3.77M | 1.55M | 0.00 | 0.00 | 4.99K |
| EBITDA | -23.80M | -25.01M | -31.80M | -2.38M | -1.17M | -161.88K |
| Net Income | -6.46M | -19.19M | -31.98M | -2.38M | -1.17M | -161.88K |
Balance Sheet | ||||||
| Total Assets | 397.49B | 182.71M | 16.11M | 1.53M | 3.33M | 3.90M |
| Cash, Cash Equivalents and Short-Term Investments | 229.60B | 142.48M | 3.76M | 894.77K | 3.10M | 3.79M |
| Total Debt | 3.16B | 2.63M | 329.99K | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 9.45B | 7.77M | 1.29M | 114.50K | 131.93K | 0.00 |
| Stockholders Equity | 388.04B | 174.94M | 14.82M | 1.41M | 3.20M | 3.90M |
Cash Flow | ||||||
| Free Cash Flow | -39.42B | -23.24M | -4.00M | -1.78M | -1.19M | -162.82K |
| Operating Cash Flow | -38.91B | -21.18M | -4.00M | -1.78M | -1.19M | -162.82K |
| Investing Cash Flow | -35.82B | -37.09M | -852.80K | -3.16K | 40.65K | 0.00 |
| Financing Cash Flow | 201.10B | 157.77M | 7.71M | -424.93K | 462.07K | 3.95M |
Unusual Machines Inc. Technical Analysis
Positive
19.36
Price Trends
22.69
Positive
18.75
Positive
15.90
Positive
Market Momentum
1.20
Negative
60.88
Neutral
81.72
Negative
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 19.36 is below the 20-day moving average (MA) of 20.54, below the 50-day MA of 22.69, and above the 200-day MA of 15.90, indicating a bullish trend. The MACD of 1.20 indicates Negative momentum. The RSI at 60.88 is Neutral, neither overbought nor oversold. The STOCH value of 81.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UMAC.
Unusual Machines Inc. Risk Analysis
Unusual Machines Inc. disclosed 39 risk factors in its most recent earnings report. Unusual Machines Inc. 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
Unusual Machines Inc. Peers Comparison
UnderperformOutperform
Sector (61)
UMAC
Unusual Machines Inc.
27.14
17.18
172.49%
ANSC
Agriculture & Natural Solutions Acquisition Corporation Class A
11.45
0.57
5.24%
GPAT
GP-Act III Acquisition Corporation Class A
11.05
0.51
4.79%
Unusual Machines Inc. Corporate Events
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Unusual Machines Posts Surging Q2 Revenue, Narrows Losses
Positive
Aug 6, 2026
On August 6, 2026, Unusual Machines reported second-quarter 2026 results showing $16.7 million in revenue, a 687% year-over-year and 106% quarter-over-quarter increase, driven by rapid headcount and capacity expansion to 240 employees while mainta...
Business Operations and StrategyM&A Transactions
Unusual Machines Expands Orlando Facility for Battery Manufacturing
Positive
Jun 25, 2026
On June 25, 2026, Unusual Machines, Inc. signed a long-term lease with FGHP Triplex, LLC for approximately 14,000 square feet of manufacturing and operational space in Orlando, Florida. The new facility is intended to support the company’s e...
Business Operations and StrategyExecutive/Board Changes
Unusual Machines Extends CEO Services Agreement, Increases Fee
Positive
May 29, 2026
On May 21, 2026, Unusual Machines, Inc. amended its Management Services Agreement with 8 Consulting LLC, which provides services of the company’s chief executive officer, extending the agreement’s termination date to Dec. 31, 2026. The...
Business Operations and StrategyM&A Transactions
Unusual Machines Unveils Growth Plan for U.S. Drone Market
Positive
May 26, 2026
On May 26, 2026, Unusual Machines Inc. posted a new investor presentation outlining its strategy to capitalize on a projected $3 billion to $5 billion U.S. market for domestically produced small drone components. The presentation highlights the co...
Business Operations and StrategyM&A Transactions
Unusual Machines Announces Merger to Expand Battery Manufacturing
Positive
May 11, 2026
On May 7, 2026, Unusual Machines entered a $52 million merger agreement under which a newly formed subsidiary will acquire DroneNX LLC, doing business as Upgrade Energy, in a cash-and-stock deal that includes 1,792,012 shares at $13.9508 each, $1 ...
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.