Unusual Machines (UMAC) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $13.9M, up 551% YoY; nine-month revenue was $38.7M, up 515%, driven by enterprise demand for NDAA and Blue UAS products.

• Q3 gross margin was 35.47%; adjusted EBITDA loss was ~$0.7M and GAAP net loss was $25.0M, primarily reflecting investment valuation losses.

• Manufacturing, inventory, quality-system investments and the Upgrade Energy acquisition were intended to support growth through 2027.

Financial highlights

• Q3 revenue was $13.9M versus $16.7M in Q2; nine-month gross profit was $13.4M and gross margin was 34.5%.

• Q3 operating loss was $8.4M; net loss was $25.0M versus net income of $1.6M a year earlier, with $24.2M of unrealized investment losses cited as the primary driver.

• Q3 basic and diluted loss per share were $0.50; nine-month basic and diluted loss per share were $0.49.

• Enterprise revenue was $12.6M versus $1.0M YoY in Q3; retail revenue was $1.3M versus $1.2M. Nine-month enterprise revenue was $34.2M and retail revenue was $4.5M.

• Q3 net loss also included ~$5.5M in non-cash stock compensation; nine-month operating loss was $23.5M and net loss was $22.5M.

Outlook and guidance

• Q4 revenue target remains $25M; management cited high confidence and identified execution capacity, rather than demand, as the key risk.

• Demand is expected to exceed supply through 2027; orders and allocations were said to cover production through Q1 2027, including Powerus and some Drone Dominance II work.

• Sequential growth into 2027 depends on adding manufacturing space and avoiding major disruption from a prolonged government budget delay.

• Commercial revenue is expected to become more significant in late 2027 as FAA Part 108 rulemaking progresses and delivery fleets expand.

• Existing cash was expected to fund current operating plans for more than 12 months; margins may fluctuate with product mix and improve as manufacturing processes mature.