XTI Aerospace Reports 120% Revenue Increase to $484,000 in Q1 2025

XTI Aerospace, Inc. reported a significant increase in revenue for the first quarter of 2025, generating $484,000 compared to $220,000 in the same period last year, marking a 120% increase. The company's gross profit also rose to $335,000 from $141,000, reflecting a gross margin of 69.2%. However, XTI Aerospace incurred a net loss of approximately $12.9 million, a substantial increase from the $2.6 million loss reported in the prior year, primarily due to higher operating expenses and nonrecurring costs associated with the merger and other strategic initiatives.

The company's operating expenses for the quarter totaled $10.7 million, up from $9.0 million in the previous year. This increase was driven by heightened research and development costs related to the TriFan 600 aircraft, which rose by $1.3 million, and increased sales and marketing expenses. Additionally, the company recognized a $2.3 million nonrecurring consulting expense linked to a prior CEO's consulting agreement, which was terminated as part of a settlement agreement. The overall rise in expenses reflects the company's ongoing investment in its aircraft development and market positioning.

In terms of operational metrics, XTI Aerospace's cash and cash equivalents increased to $8 million as of March 31, 2025, up from $4.1 million at the end of 2024. The company raised approximately $23.3 million through public offerings and an at-the-market (ATM) program during the quarter, which allowed it to repay outstanding debts, including secured promissory notes. The company also redeemed its Series 9 Preferred Stock, eliminating previous restrictions on capital raising.

Geographically, XTI Aerospace's revenue is primarily derived from the United States and the United Kingdom, with the Industrial IoT segment generating the majority of its income. The company is focusing on expanding its customer base and enhancing its product offerings, particularly in the software sector, as it continues to develop the TriFan 600. The company has indicated that it does not expect to generate significant revenue from aircraft sales until it completes the design, development, and certification processes, which are projected to extend into 2030.

Looking ahead, XTI Aerospace remains committed to advancing the TriFan 600 project and is actively seeking additional capital to support its operations and development efforts. The company has acknowledged the challenges it faces, including the need for FAA certification and the potential for delays in aircraft delivery, which could impact its financial stability. Despite these challenges, XTI Aerospace is optimistic about its strategic direction and the potential for growth in the VTOL aircraft market.