XTI Aerospace Reports $20.9 Million Net Loss and Revenue Decline Amid Strategic Developments

XTI Aerospace, Inc. reported a net loss of approximately $20.9 million for the three months ended June 30, 2025, compared to a net loss of $14.7 million for the same period in 2024, marking a 41.8% increase in losses year-over-year. Revenue for the quarter was $600,000, down 41.8% from $1.03 million in the prior year, primarily due to supply chain disruptions affecting hardware deliveries. The company's gross profit decreased to $483,000 from $662,000, although the gross margin improved to 80.5% from 64.2%, attributed to a shift towards higher-margin software solutions.

Operating expenses for the second quarter of 2025 totaled $11.6 million, a decrease of 20.4% from $14.6 million in the previous year. This reduction was influenced by the absence of nonrecurring expenses related to the merger and prior executive compensation. However, the company experienced increases in research and development and sales and marketing expenses as it continued to invest in the development of its TriFan 600 aircraft. Notably, the company recognized a $4.05 million impairment charge related to goodwill and intangible assets during the quarter.

In terms of strategic developments, XTI Aerospace completed a merger with XTI Aircraft Company on March 12, 2024, which was accounted for as a reverse acquisition. The merger has allowed the company to focus on developing its TriFan 600, a vertical takeoff and landing aircraft. The company has also expanded its corporate advisory board to enhance strategic opportunities and has opened a Prototyping & Innovation Lab in North Dakota to support its aircraft development efforts.

As of June 30, 2025, XTI Aerospace reported cash and cash equivalents of approximately $20 million, a significant increase from $4.1 million at the end of 2024. The company raised approximately $41.8 million in net proceeds through various public offerings and warrant exercises during the first half of 2025. This capital has been crucial in reducing debt and funding ongoing development activities. The company anticipates continued losses until it can commence sustainable commercial operations of the TriFan 600, with FAA certification expected no earlier than 2030.

Looking ahead, XTI Aerospace aims to mitigate liquidity concerns through ongoing capital raises and strategic partnerships. The company is focused on advancing the TriFan 600 towards certification while exploring opportunities in the broader vertical lift market, including unmanned aerial vehicles. However, the company acknowledges the inherent risks associated with its development timeline and the need for additional financing to support its operations and growth initiatives.