XTI Aerospace (XTIA) investor relations material

Executive summary

• Strategic pivot to Drone Nerds and commercial/enterprise UAS is substantially complete; aircraft operations and ADS spending were discontinued or wound down, and resources shifted to revenue-generating drone operations.

• Q3 revenue was $35.3M; reported net income was driven mainly by a non-cash $32.0M warrant fair-value gain, while operating cash burn and substantial going-concern doubt remain.

Financial highlights

• Q3 revenue was $35.3M, up 8.8% sequentially and 46.1% versus Q3 2025 supplemental combined revenue; reported prior-year continuing-operations revenue was zero and is not comparable.

• Gross profit was $7.7M and reported gross margin 21.7%; excluding the net non-recurring tariff refund and inventory/vendor adjustment benefit, gross profit was $5.6M and margin 16.0%.

• Operating loss was $5.0M, versus $9.1M in Q2; consolidated net income was $26.6M, including a $32.0M warrant fair-value gain. Net income attributable to common stockholders was $26.0M, with basic EPS of $0.68 and diluted EPS of $0.19.

• Q3 supplemental combined Adjusted EBITDA was $1.6M, versus a $5.6M loss in Q3 2025; management also cited improvement from a $4.9M loss in Q2 2026.

• 9M revenue was $95.5M, gross profit $18.5M and operating loss $24.5M; consolidated net loss was $10.9M.

Outlook and guidance

• FY2026 revenue guidance remains $125M–$130M and gross margin guidance 17%–19%; Q3 margin was below the expected full-year level.

• Positive operating cash flow is targeted for Q4 2026, supported by portfolio growth, Drone Nerds results and disciplined expense management; results depend on sales, margins, inventory turnover and spending.

• Guidance assumes continued access to the asset-based credit facility and no material further tariff-policy changes; demand, product availability, margins, costs and working-capital timing remain uncertainties.

• Corporate and development monthly cash outflow is expected to fall significantly below Q3's $1.1M in Q4, with substantially all restructuring activities expected to be completed during the quarter.