Unusual Machines (UMAC) investor relations material

Executive summary

• Achieved first profitable quarter with net income of $1.6 million, reversing a $2.1 million loss in Q3 2024, and positive cash flow from operations.

• Q3 2025 revenue reached $2.13 million, up 39% year-over-year, with over 50% of revenue from enterprise sales and major B2B and defense orders.

• Year-to-date revenue for 2025 was $6.3 million, up 77% year-over-year, with a net loss of $8.6 million due to higher non-cash stock-based compensation.

• Closed Rotor Lab acquisition, expanding U.S. motor manufacturing, and began domestic production in Orlando.

• Team expanded from 19 to over 60 employees, with key leadership hires to support scaling operations.

Financial highlights

• Gross margin for Q3 2025 was 39.4%, up from 26.1% in Q3 2024; year-to-date gross margin improved from 28% to 34%.

• Interest income of $0.7 million and unrealized gains of $5.8 million from short-term investments in Q3.

• Operating expenses increased due to investments in production, scaling, and $2.1 million in non-cash stock compensation and $1.2 million in non-recurring professional fees.

• Ended Q3 with $64.3 million in cash and $16.8 million in short-term investments; net working capital at $85.8 million.

• Over $130 million in cash currently, bolstered by $48.5 million and $72 million capital raises.

Outlook and guidance

• Strong enterprise orders to be fulfilled in Q4, with expected seasonal retail strength and thousands of motors to ship by month-end.

• Headset production to begin shipping from U.S. facility in January 2026.

• $16 million in purchase orders expected to be delivered through Q2 2026; forecasts indicate continued scaling into late 2026.

• Targeting $30 million in annual revenue to sustain positive cash flow, expected in the latter half of 2026.

• Working capital outlays expected to continue ahead of revenue growth due to long supply chain lead times.