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Palladyne AI (PDYN) investor relations material
Palladyne AI Q2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Revenue for Q2 2025 was $1.0 million, down 63% year-over-year, driven by lower product development contract revenue and minimal product sales.
Net loss for Q2 2025 was $7.5 million, compared to a net loss of $5.3 million in Q2 2024; net income for the six months ended June 30, 2025 was $15.3 million, primarily due to a $29.4 million gain on warrant liabilities.
Achieved first half 2025 objectives, including initial commercial launches of Palladyne MIQ and Pilot products.
Focus shifting to completion and release of Version 2 of Palladyne IQ in H2 2025, with enhancements based on user feedback.
Positioned to benefit from U.S. policy shifts toward domestic manufacturing, defense spending, and AI-driven automation.
Financial highlights
Q2 2025 revenue was $1.0 million, down from $2.7 million in Q2 2024; six-month revenue was $2.7 million, down 56% year-over-year.
Ended June 30, 2025, with $62.7 million in cash, cash equivalents, and marketable securities; working capital of $62.0 million.
Operating expenses for Q2 2025 were $9.1 million, up 7% year-over-year, with R&D expenses increasing 33% to $3.1 million.
Net loss for Q2 2025 was $7.5 million; net income for the six months ended June 30, 2025 was $15.3 million, driven by a $29.4 million gain on warrant liabilities.
Cash used in operating activities for the first half of 2025 was $12.8 million; net cash provided by financing activities was $34.9 million.
Outlook and guidance
Initial commercial revenues from AI/ML software products are expected in H2 2025, with modest growth anticipated in 2026.
Sufficient funds to operate for at least 2.5 years without new revenue beyond current contracts.
Management expects continued losses and negative cash flows from operations in the near term as commercialization efforts continue.
Plans to continue investing in marketing, sales, and product development while managing expenses.
Filing new ATM equity offering for up to $50 million to enable strategic opportunities.
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