Merlin (MRLN) investor relations material

Executive summary

• Completed first quarter as a public company after a business combination in March 2026, focusing on certifiable autonomous flight systems adaptable to any airframe and mission.

• Launched Condor, targeting large multi-crew aircraft in both civil and defense markets, with initial partnerships and commercial rollout agreements announced.

• Achieved key technical milestones, including first fully automated takeoffs on certification candidate aircraft in the U.S. and New Zealand.

• Strengthened leadership with new Chief Marketing Officer and Chief Revenue Officer appointments.

• Closed significant financing, increasing cash and short-term investments to $183 million as of May 1, 2026.

Financial highlights

• Q1 2026 revenue was $1.0 million, up 15% year-over-year, primarily from defense contracts.

• GAAP net loss was $90.4 million, compared to $12.7 million in Q1 2025, impacted by non-cash items and higher operating expenses.

• Adjusted EBITDA loss was $23.3 million, up from $10.4 million in the prior year quarter, reflecting increased investment in engineering and certification.

• Cash, cash equivalents, and short-term investments totaled $183 million as of May 1, 2026, up from $123 million on March 31, 2026, with no debt.

• R&D expenses were $14.1 million in Q1 2026, reflecting deliberate investment in certification and product development.

Outlook and guidance

• Near-term financial trajectory depends on certification milestones, program awards, and Condor's commercial introduction.

• Focus remains on achieving civil certification for fully automated, fixed-wing flight and advancing product verticals.

• Targeting commercial cargo and defense markets with Condor product family, addressing pilot shortages.

• Current cash runway expected to extend beyond near-term certification and commercial milestones.

• Anticipates further steps toward market-building and enterprise sales as programs mature.