XTI Aerospace (XTIA) Investor update summary

Financial performance and outlook

• Expects over 30% revenue growth in FY2026, with revenue per employee exceeding $1.2M and positive monthly cash flow by year-end.

• FY2026 revenue plan targets $160M+, with average monthly burn improving from ($3.8M) to +$1.9M.

• Ending cash for FY2026 projected above $16M, with disciplined cost structure and no anticipated capital raise outside of acquisitions.

• Market capitalization increased from under $10 million in April 2025 to nearly $65 million by January 2026.

• Proforma results for nine months ended September 2025 show lower revenue but improved gross profit due to a shift from retail to enterprise sales and successful price increases.

Market positioning and growth strategy

• Positioned as a leading U.S. commercial enterprise drone solutions provider, currently holding only 1.5% of the global drone market.

• Market is highly fragmented, with regulatory changes favoring secure, domestic solutions and creating tailwinds for growth.

• Growth plan includes holding market share for ~50% of planned growth, with additional gains from organic growth, M&A, product additions, and digital expansion.

• Expansion into military and federal government markets is a key focus, leveraging COTS and missionized solutions.

• FCC restrictions on foreign-made drones and components are expected to accelerate demand for U.S.-made solutions.

Strategic transformation and acquisition

• Completed acquisition of Drone Nerds for $40 million, shifting focus to UAS platforms for enterprise and government markets.

• Drone Nerds brings over $100 million in 2024 revenue, strong customer relationships, and a leading position in the U.S. drone sector.

• Acquisition supported by private placement investment from UMAC, an NDAA-compliant UAS component manufacturer.

• Leadership from Drone Nerds remains in place, ensuring continuity and leveraging sector expertise.

• Integration of Drone Nerds expected to provide a stable, high-quality revenue source and leverage deep UAS expertise.