XTI Aerospace (XTIA) Q4 2025 earnings summary

Executive summary

• Integrated Drone Nerds, establishing new objectives and strategies for growth, leveraging its 8+ year history of profitability and scale, and completed its $40M acquisition in November 2025.

• Exited a division and set a bold new vision to capitalize on significant aerospace market opportunities, including divesting the Industrial IoT/RTLS business.

• Distribution business (Drone Nerds) is the core engine, generating $121.6M in FY2025 pro forma revenue with positive cash flow and 22% gross margin.

• Retained engineering and flight control capabilities from legacy VTOL efforts, now focused on autonomous defense systems and government contracts.

• Strategic focus on U.S.-based manufacturing and defense contracting to address supply chain gaps and capture high-value government contracts.

Financial highlights

• Q4 2025 pro forma revenue was $41.7M, up 55% year-over-year, with gross profit of $8.1M and a 19.5% margin.

• FY2025 pro forma revenue reached $121.6M, gross profit $26.8M, and gross margin improved to 22.0%.

• Net loss from continuing operations was $39.0M for FY2025.

• FY2026 revenue is projected to exceed $160M, with a 30%+ growth rate expected.

• Unrestricted cash and cash equivalents at year-end 2025 were $16.7M, with a $20M asset-based lending facility secured.

Outlook and guidance

• FY2026 revenue expected to exceed $160M, with revenue per employee projected above $1.2M and a focus on execution, growth, and margin expansion.

• Anticipates being acquisitive, leveraging M&A experience to drive further growth and consolidation.

• Targeting NDAA-compliant, domestically manufactured hardware for enterprise and defense markets.