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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
$423.33M
Dividend YieldN/A
Average Volume (3M)4.77M
Price to Earnings (P/E)―
Beta (1Y)3.01
Revenue Growth133.20%
EPS Growth-253.98%
CountryUS
Employees16
SectorTechnology
Sector Strength88
IndustryShell Companies
Share Statistics
EPS (TTM)0.05
Shares Outstanding36,875,550
10 Day Avg. Volume4,084,635
30 Day Avg. Volume4,766,481
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)9.45
Price to Sales (P/S)25.16
P/FCF Ratio-35.04
Enterprise Value/Market Cap0.90
Enterprise Value/Revenue0.18
Enterprise Value/Gross Profit0.45
Enterprise Value/Ebitda0.24
Forecast
1Y Price Target
$18.00Price Target Upside56.79% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.54
Revenue Forecast (FY)$10.86M
Unusual Machines Inc. Business Overview & Revenue Model
Company DescriptionUnusual Machines Inc. (UMAC) is a cutting-edge technology company that specializes in the development and manufacturing of innovative robotics and automation solutions for various industries, including manufacturing, logistics, and healthcare. The company is committed to advancing the field of robotics through its state-of-the-art products and services, which aim to enhance operational efficiency and productivity for its clients.
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.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 | 2.14B | 5.57M | 0.00 | 0.00 | 4.99K |
| Gross Profit | 842.23M | 1.55M | 0.00 | 0.00 | 4.99K |
| EBITDA | 1.59B | -31.80M | -2.38M | -1.17M | -161.88K |
| Net Income | 1.57B | -31.98M | -2.38M | -1.17M | -161.88K |
Balance Sheet | |||||
| Total Assets | 113.08B | 16.11M | 1.53M | 3.33M | 3.90M |
| Cash, Cash Equivalents and Short-Term Investments | 81.14B | 3.76M | 894.77K | 3.10M | 3.79M |
| Total Debt | 1.28B | 329.99K | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 7.06B | 1.29M | 114.50K | 131.93K | 0.00 |
| Stockholders Equity | 106.02B | 14.82M | 1.41M | 3.20M | 3.90M |
Cash Flow | |||||
| Free Cash Flow | -12.95B | -4.00M | -1.78M | -1.24M | -162.82K |
| Operating Cash Flow | -11.40B | -4.00M | -1.78M | -1.23M | -162.82K |
| Investing Cash Flow | -12.46B | -852.80K | -3.16K | -4.58K | 0.00 |
| Financing Cash Flow | 84.38B | 7.71M | -424.93K | 549.90K | 3.95M |
Unusual Machines Inc. Technical Analysis
Negative
11.48
Price Trends
12.86
Negative
11.32
Negative
9.31
Positive
Market Momentum
-0.56
Positive
40.82
Neutral
22.34
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UMAC, the sentiment is Negative. The current price of 11.48 is below the 20-day moving average (MA) of 12.86, below the 50-day MA of 12.86, and above the 200-day MA of 9.31, indicating a neutral trend. The MACD of -0.56 indicates Positive momentum. The RSI at 40.82 is Neutral, neither overbought nor oversold. The STOCH value of 22.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UMAC.
Unusual Machines Inc. Peers Comparison
UnderperformOutperform
Sector (61)
UMAC
Unusual Machines Inc.
10.86
8.04
285.11%
ANSC
Agriculture & Natural Solutions Acquisition Corporation Class A
11.06
0.63
6.04%
GPAT
GP-Act III Acquisition Corporation Class A
10.66
0.58
5.75%
GIG
GigCapital7 Corp. Class A
10.56
0.61
6.08%
AAM
AA Mission Acquisition Corp. Class A
10.67
0.61
6.06%
HOND
HCM II Acquisition Corp. Class A
13.66
3.66
36.60%
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.