XTI Aerospace Reports $22.5 Million Revenue in Fiscal Year 2025 Following Merger and Acquisition

XTI Aerospace, Inc. reported a significant shift in its financial performance for the fiscal year ending December 31, 2025, following its merger with XTI Aircraft Company and the acquisition of Drone Nerds, LLC. The company generated revenues of $22.5 million, a notable increase from zero in the previous year, as it transitioned from a development-stage aircraft company to a provider of unmanned aerial systems (UAS) solutions. The cost of revenues was reported at $17.6 million, resulting in a gross profit of approximately $4.9 million, reflecting a gross margin of 21.9%. However, the company also reported a net loss of $68.5 million, which included substantial operating expenses of $47.7 million, primarily driven by increased general and administrative costs associated with operating as a public company and expenses related to the acquisition.

The company's operational landscape underwent significant changes in 2025, including the acquisition of Drone Nerds, which was completed in November. This acquisition is expected to enhance XTI's UAS distribution capabilities and expand its market presence in the commercial and public sector. The company also committed to a plan to dispose of its historical Inpixon Business, which was classified as discontinued operations, resulting in impairment charges of approximately $10.5 million. The strategic focus has shifted towards scaling the UAS platform and developing unmanned systems for defense applications, while the TriFan 600 aircraft program has been paused.

In terms of operational metrics, XTI Aerospace's UAS segment generated all of its revenues in 2025, with a breakdown showing $15.3 million from wholesale, $4.4 million from direct sales, and $2.7 million from retail. The company reported a working capital of approximately $4.2 million as of December 31, 2025, a significant improvement from a working capital deficit of $8.8 million in the previous year. This improvement was attributed to successful capital raising activities, including public offerings that generated approximately $62.8 million in net proceeds.

Looking ahead, XTI Aerospace's management expressed optimism about the future, anticipating that the operations of Drone Nerds will contribute positively to cash flows. The company has also entered into a new secured asset-based revolving credit facility to support its working capital needs. However, the future resumption of the TriFan 600 program will require additional capital, and the company is exploring various funding alternatives to support its strategic initiatives. The overall outlook remains cautious, with management acknowledging the need to navigate market conditions and operational challenges effectively.