Palladyne AI (NASDAQ:PDYN) Announces Quarterly Earnings Results, Misses Estimates By $0.04 EPS

Palladyne AI (NASDAQ:PDYN) posted its quarterly earnings results on Thursday. The company reported ($0.27) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.23) by ($0.04), Zacks reports. The business had revenue of $5.78 million during the quarter, compared to analyst estimates of $5.80 million. Palladyne AI had a negative net margin of 254.75% and a negative return on equity of 54.38%.

Here are the key takeaways from Palladyne AI’s conference call:

• Record revenue and backlog growth: Q2 revenue rose 63% sequentially to approximately $5.8 million, while backlog increased 43% to $24.6 million after roughly $13 million of new contract awards. Management reiterated 2026 revenue guidance of $24 million–$27 million.
• Cash burn and expenses remain elevated: Operating cash burn, including CapEx, was $11.1 million in Q2, above the company’s targeted quarterly pace, and GAAP net loss widened to $12.3 million. Palladyne used $10.8 million in ATM proceeds during the quarter, with stock-based compensation expected to increase materially in Q3.
• Autonomy technology gained field validation: SwarmOS and Gremlin-X were used by soldiers in the Ivy Mass and larger PCC6 exercises, demonstrating multi-vendor drone coordination, operation under degraded communications, and control of multiple systems by a single operator. The company said the results led to additional exercise invitations and potential future procurement opportunities.
• Product and defense-program opportunities expanded: Palladyne received a follow-on order for more than 1,000 BRAIN flight computers valued at approximately $2.3 million, advanced Gremlin-X to TRL7, and entered a partnership with Israel Aerospace Industries to Americanize and manufacture loitering munitions. Management also cited more than 20 submitted Department of War proposals representing several hundred million dollars of potential initial value, though outcomes and timing remain uncertain.

Palladyne AI Stock Performance

NASDAQ PDYN traded up $0.10 during trading hours on Friday, hitting $5.99. The company had a trading volume of 676,554 shares, compared to its average volume of 926,729. Palladyne AI has a 1-year low of $4.14 and a 1-year high of $10.73. The company has a market cap of $278.48 million, a PE ratio of -8.81 and a beta of 3.65. The business has a 50 day moving average of $6.01 and a 200-day moving average of $6.48.

Insiders Place Their Bets

In other news, CFO Trevor Thatcher sold 4,561 shares of Palladyne AI stock in a transaction dated Thursday, May 21st. The stock was sold at an average price of $6.14, for a total transaction of $28,004.54. Following the sale, the chief financial officer owned 175,697 shares in the company, valued at approximately $1,078,779.58. The trade was a 2.53% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CTO Denis Garagic sold 17,176 shares of the business’s stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $6.14, for a total value of $105,460.64. Following the completion of the sale, the chief technology officer directly owned 559,959 shares of the company’s stock, valued at $3,438,148.26. The trade was a 2.98% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 26,982 shares of company stock valued at $165,669. 13.40% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Quarry LP acquired a new stake in shares of Palladyne AI in the third quarter valued at approximately $28,000. Boothbay Fund Management LLC acquired a new position in shares of Palladyne AI in the 4th quarter valued at $44,000. Osaic Holdings Inc. raised its position in Palladyne AI by 94.3% in the 2nd quarter. Osaic Holdings Inc. now owns 5,098 shares of the company’s stock valued at $44,000 after purchasing an additional 2,474 shares during the last quarter. Atom Investors LP acquired a new stake in Palladyne AI during the 4th quarter worth $56,000. Finally, Russell Investments Group Ltd. acquired a new stake in Palladyne AI during the 3rd quarter worth $61,000. Institutional investors and hedge funds own 26.02% of the company’s stock.

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on PDYN. Lake Street Capital began coverage on Palladyne AI in a research report on Friday, April 17th. They set a “buy” rating and a $11.00 price objective for the company. Northland Securities set a $15.00 target price on Palladyne AI in a research report on Monday, June 8th. Jefferies Financial Group raised Palladyne AI to a “hold” rating in a report on Wednesday, June 10th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Palladyne AI in a report on Monday. Finally, Alliance Global Partners reissued a “buy” rating on shares of Palladyne AI in a report on Tuesday, May 5th. Three research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $11.00.

Key Stories Impacting Palladyne AI

Here are the key news stories impacting Palladyne AI this week:

• Positive Sentiment: Record growth and expanding backlog: Palladyne highlighted explosive second-quarter growth and a stronger backlog, supporting the outlook for future revenue as demand develops across its AI, aerospace and defense businesses. Palladyne AI Delivers Explosive Q2 Growth and Backlog
• Positive Sentiment: SwarmOS receives additional military validation: The company said its SwarmOS autonomy platform successfully performed again during the U.S. Army’s division-scale test of future warfare. Continued performance at a major defense exercise could improve Palladyne’s credibility and support potential follow-on opportunities. Palladyne AI SwarmOS Army Test
• Positive Sentiment: Full-year revenue outlook remains intact: Palladyne issued 2026 revenue guidance of $24 million to $27 million, a range that brackets the $24.6 million analyst consensus. Maintaining this outlook despite near-term execution challenges provides some support for the shares. Palladyne AI Reports Second Quarter 2026 Results
• Neutral Sentiment: Management emphasized strategic growth: The earnings call focused on record revenue, defense applications and the company’s strategic direction. Investors will likely look for evidence that backlog converts into sustained commercial revenue and improving margins. Palladyne AI Q2 2026 Earnings Call Transcript
• Negative Sentiment: Quarterly loss exceeded expectations: Palladyne reported a second-quarter loss of $0.27 per share, worse than the expected $0.23 loss and the $0.20 loss recorded a year earlier. Revenue of $5.78 million also narrowly missed the $5.80 million consensus estimate, while the company continues to report deeply negative profitability. Palladyne AI Q2 Loss and Revenue Results

About Palladyne AI

Palladyne AI Corp., a software company, focuses on delivering software that enhances the utility and functionality of third-party stationary and mobile robotic systems in the United States. Its Artificial Intelligence (AI)/ Machine Learning (ML) software platform enables robots to observe, learn, reason, and act in structured and unstructured environments. The company's software platform enables robotic systems to perceive their environment and quickly adapt to changing circumstances by generalizing from their experience using dynamic real-time operations without extensive programming and with minimal robot training.