Merlin (MRLN) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $3.461M, up 79.9% YoY and 58% sequentially; Adjusted EBITDA loss was $24.110M, down $3.7M QoQ.

• GAAP net income was $73.837M, largely due to a $103.620M non-cash warrant-liability fair-value gain; nine-month net loss was $75.009M.

• USSOCOM and USAFRICOM awards advanced autonomy programs, while planned 2027 cost reductions target runway into 2029 without dependence on capital raises.

Financial highlights

• Q3 revenue was $3.461M vs. $1.924M in Q3 2025; nine-month revenue was $6.657M vs. $5.899M.

• Q3 operating expenses were $29.696M vs. $14.586M YoY; nine-month expenses were $91.940M vs. $37.195M.

• Q3 gross loss was $1.777M; nine-month gross loss narrowed to $0.081M from $1.826M, including a $2.229M favorable contract-loss provision adjustment.

• Nine-month operating cash outflow was $70.823M; cash and cash equivalents were $161.444M at Sept. 30, 2026.

Outlook and guidance

• 2027 operating expenses are expected to be meaningfully below 2026, with spending focused on funded programs and customers with a clear path to revenue.

• The planned lower cost base is intended to fund operations into 2029 without relying on capital raises; further planning detail is expected with Q4 results.

• C-130J ground and flight testing is anticipated within the next year, subject to integration testing and aircraft availability; first Merlin Pilot deployment is targeted within three years.