Unusual Machines Inc. (UMAC)
XASE:UMAC
Want to see UMAC full AI Analyst Report?
Top Page
Unusual Machines Inc.
(NYSE MKT:UMAC)
Select Model
Select Model
Rating:58Neutral
Price Target:
$34.00
▲(141.31% Upside)
Action:Reiterated
Date:06/03/26
UMAC’s score is held back primarily by weak financial performance—large ongoing losses and significant cash burn—despite low leverage. Technicals are a key positive with strong trend momentum, though overbought indicators and high beta add risk. Earnings-call guidance and operational scaling plans provide upside potential, but execution, margin, and inventory risks remain material. Valuation is difficult to justify with negative earnings and no dividend support.
Positive Factors
Revenue growth & margin improvement
Unusual Machines shows a durable top-line ramp and improving gross margins, with multi-quarter revenue acceleration and Q4 margins near 35–36%. Sustained revenue growth plus margin expansion support scale economies, greater unit economics, and a clearer path to operating leverage if execution continues.
Negative Factors
Persistent cash burn & negative FCF
Despite strong liquidity today, sustained negative operating and free cash flows represent a structural funding risk. Continued cash burn increases dilution or refinancing needs, constrains reinvestment pacing, and places a hard requirement on the company to convert revenue growth into positive cash generation over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth & margin improvement
Unusual Machines shows a durable top-line ramp and improving gross margins, with multi-quarter revenue acceleration and Q4 margins near 35–36%. Sustained revenue growth plus margin expansion support scale economies, greater unit economics, and a clearer path to operating leverage if execution continues.
Read all positive factors
Unusual Machines Inc. (UMAC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.28B
Dividend YieldN/A
Average Volume (3M)7.31M
Price to Earnings (P/E)―
Beta (1Y)3.38
Revenue Growth146.87%
EPS Growth91.33%
CountryUS
Employees16
SectorTechnology
Sector Strength88
IndustryShell Companies
Share Statistics
EPS (TTM)-0.40
Shares Outstanding47,793,922
10 Day Avg. Volume14,583,609
30 Day Avg. Volume7,310,435
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 Cap0.67
Enterprise Value/Revenue49.34
Enterprise Value/Gross Profit141.89
Enterprise Value/Ebitda-36.95
Forecast
1Y Price Target
$29.00Price Target Upside105.82% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.4
Revenue Forecast (FY)$33.94M
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:Mar 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 13, 2026
Earnings Call Sentiment Positive
The call emphasized dramatic top-line growth, improving gross margins, a strong cash position from large equity raises, rapid onshoring and scaling of manufacturing (motors, headsets, planned batteries/cameras), and a large near-term market opportunity driven by regulatory changes and the Drone Dominance program. Key risks discussed include elevated operating expenses (notably noncash stock compensation), inventory buildup, supply-chain constraints and short-term margin volatility as new production and staffing scale. Management portrayed confidence in execution and sufficient capital to pursue growth and acquisitions, but acknowledged timing and operational risks and that reported numbers are unaudited.Positive Updates
Strong Top-Line Growth
Fiscal 2025 revenue of $11.2M, representing 101% year-over-year growth; fourth quarter revenue of ~$4.9M, the seventh consecutive quarter of record revenues and a sequential increase of ~133%.
Negative Updates
High Operating Expenses and Net Loss Impact
Operating expenses increased from $18.5M in 2024 to $29M in 2025 (~+56.8%), driven largely by noncash stock-based compensation of $15.6M, contributing to GAAP net losses despite revenue growth.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Top-Line Growth
Fiscal 2025 revenue of $11.2M, representing 101% year-over-year growth; fourth quarter revenue of ~$4.9M, the seventh consecutive quarter of record revenues and a sequential increase of ~133%.
Read all positive updates
Company Guidance
Management guided that 2026 will be a year of rapid, sequential revenue growth (with potential supply‑chain hiccups) driven by aggressive capacity builds: an automated motor line targeted for H2 2026 (installation target ~July) that could scale motors from the current ~15,000/month to well over 100,000/month, headset production ramping to ~100 headsets/shift/day by April, battery pack production coming online in H2 2026, and U.S. camera manufacturing by year‑end 2026, with the explicit goal of being able to meet Phase 2 Drone Dominance demand by September 2026. Management highlighted the size of the opportunity—the Drone Dominance program plans to buy 90,000 drones in 2026 (~$90M in component opportunity) and 250,000 in 2027 (~$250M), a U.S. small‑drone market of roughly $10B/year with a $3–5B parts TAM—and noted they have about $12M of outstanding purchase orders (≈$9M non‑Drone Dominance) and placed >$15M of raw‑material orders in January. Financially they finished 2025 with ~$11.2M revenue (101% YoY), Q4 revenue of ~$4.9M (133% sequential) and Q4 gross margin ~36% (FY ~35%), raised ~ $157.8M of equity in 2025, ended the year with ~ $103M cash and ~ $157M in net working capital, inventory (including prepaid) >$15M, no debt, and a headcount that grew from 15 to 81 in 2025 and is now >140; they cautioned margins may dip in Q1–Q2 2026 as new lines and hires ramp, but expect operating efficiencies once automation is live.Unusual Machines Inc. Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
72
Positive
Cash Flow
14
Very Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 17.25M | 11.20M | 5.57M | 0.00 | 0.00 | 4.99K |
| Gross Profit | 6.00M | 3.77M | 1.55M | 0.00 | 0.00 | 4.99K |
| EBITDA | -23.04M | -25.01M | -31.80M | -2.38M | -1.17M | -161.88K |
| Net Income | -5.64M | -19.19M | -31.98M | -2.38M | -1.17M | -161.88K |
Balance Sheet | ||||||
| Total Assets | 339.70M | 182.71M | 16.11M | 1.53M | 3.33M | 3.90M |
| Cash, Cash Equivalents and Short-Term Investments | 222.94M | 142.48M | 3.76M | 894.77K | 3.10M | 3.79M |
| Total Debt | 3.33M | 2.63M | 329.99K | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 8.07M | 7.77M | 1.29M | 114.50K | 131.93K | 0.00 |
| Stockholders Equity | 331.64M | 174.94M | 14.82M | 1.41M | 3.20M | 3.90M |
Cash Flow | ||||||
| Free Cash Flow | -40.16M | -23.24M | -4.00M | -1.78M | -1.19M | -162.82K |
| Operating Cash Flow | -37.40M | -21.18M | -4.00M | -1.78M | -1.19M | -162.82K |
| Investing Cash Flow | -42.47M | -37.09M | -852.80K | -3.16K | 40.65K | 0.00 |
| Financing Cash Flow | 297.79M | 157.77M | 7.71M | -424.93K | 462.07K | 3.95M |
Unusual Machines Inc. Technical Analysis
Positive
14.09
Price Trends
16.63
Positive
16.08
Positive
13.94
Positive
Market Momentum
4.15
Negative
58.35
Neutral
73.31
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 14.09 is below the 20-day moving average (MA) of 20.63, below the 50-day MA of 16.63, and above the 200-day MA of 13.94, indicating a bullish trend. The MACD of 4.15 indicates Negative momentum. The RSI at 58.35 is Neutral, neither overbought nor oversold. The STOCH value of 73.31 is Neutral, 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.
25.85
16.67
181.59%
ANSC
Agriculture & Natural Solutions Acquisition Corporation Class A
11.39
0.60
5.56%
GPAT
GP-Act III Acquisition Corporation Class A
10.83
0.27
2.56%
Unusual Machines Inc. Corporate Events
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 ...
Business Operations and StrategyPrivate Placements and Financing
Unusual Machines Expands NDAA-Compliant Drone Supply Chain
Positive
May 5, 2026
On May 5, 2026, Unusual Machines, Inc. announced it had placed approximately $75 million in strategic materials and inventory purchase orders with U.S. suppliers to support its NDAA-compliant drone component product lines. The move follows a recen...
Business Operations and Strategy
Unusual Machines Wins Major Counter-Drone Components Order
Positive
Apr 21, 2026
Unusual Machines, Inc., a leading producer of NDAA-compliant drone components and FPV systems, has built its business around supplying domestically manufactured parts and consumer FPV products to the expanding U.S. drone sector. Through brands suc...
Business Operations and Strategy
Unusual Machines Expands Orlando Motor Plant Production Capacity
Positive
Apr 10, 2026
On April 10, 2026, Unusual Machines reported that its Orlando, Florida motor manufacturing facility has ramped output to about 15,000 motors per month and is now running on second and third shifts. The company said upgrades to equipment, staffing,...
Business Operations and StrategyFinancial Disclosures
Unusual Machines Highlights Growth and NDAA-Compliant Drone Opportunity
Positive
Mar 31, 2026
On March 31, 2026, Unusual Machines Inc. posted a detailed investor presentation outlining rapid operational scaling and strong recent growth, including an increase in annualized revenue from about $8 million to $20 million between the third and f...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Unusual Machines Completes $150 Million Common Stock Offering
Positive
Mar 23, 2026
On March 19, 2026, Unusual Machines, Inc. entered into a placement agency agreement with Dominari Securities and JonesTrading for a confidentially marketed public offering of 8,823,529 common shares at $17.00 per share. The offering closed on Marc...
Business Operations and StrategyPrivate Placements and Financing
Unusual Machines Launches Public Offering to Expand Drone Inventory
Positive
Mar 19, 2026
On March 19, 2026, Unusual Machines, Inc., listed on the NYSE American as UMAC, announced it had commenced a public offering of common stock to fund an expansion of its U.S. drone parts inventory and to support working capital and general corporat...
Business Operations and StrategyFinancial Disclosures
Unusual Machines Details Aggressive Growth Strategy Amid U.S. Demand
Positive
Mar 18, 2026
Unusual Machines Inc. is an Orlando, Fla.-based manufacturer of components for small drones, producing U.S.-made and NDAA-compliant flight controllers, electronic speed controllers, video systems, motors and FPV headsets for enterprise, defense an...
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.