XTI Aerospace Reports $27.7 Million Revenue in Q1 2026, Significant Growth from Previous Year

XTI Aerospace, Inc. reported a revenue of $27.7 million for the first quarter of 2026, marking a significant increase from zero revenue in the same period last year. This growth is attributed to the full integration of Drone Nerds, acquired in November 2025, into the company's operations. The cost of revenues for the quarter was $22.6 million, resulting in a gross profit of $5.1 million and a gross margin of approximately 19%. The company experienced a net loss of $35.3 million, which includes a loss from continuing operations of $31.7 million and a loss from discontinued operations of $3.3 million.

Comparatively, XTI Aerospace's operating expenses rose to $15.5 million, an increase of 89% from $8.2 million in the prior year. This rise is primarily due to increased personnel-related expenses and costs associated with the newly acquired Drone Nerds business. The company also reported a substantial increase in other expenses, totaling $21.4 million, largely driven by changes in the fair value of warrant liabilities, compared to $2.5 million in the previous year.

In terms of operational developments, XTI Aerospace has shifted its focus from the TriFan 600 aircraft program to its Unmanned Aircraft Systems (UAS) and Autonomous Defense Systems (ADS) segments. The ADS segment is in the early stages of development, emphasizing the design and production of unmanned platforms for defense applications. The company has also disposed of its Inpixon Business, which was completed in February 2026, allowing it to concentrate resources on its core UAS and aerospace development operations.

As of March 31, 2026, XTI Aerospace had cash and cash equivalents of approximately $15.2 million, down from $16.7 million at the end of 2025. The company has access to a $20 million asset-based revolving credit facility, of which $4.6 million was drawn, leaving $8.1 million available. Management believes that existing cash balances, expected operating cash flows from the UAS platform, and availability under the credit facility will be sufficient to meet obligations for at least the next twelve months.

Looking ahead, XTI Aerospace aims to strengthen its UAS platform while managing operating expenses and cash burn. The company is also exploring potential acquisitions to enhance its capabilities in unmanned systems and domestic manufacturing. However, it acknowledges the risks associated with market conditions, regulatory changes, and the integration of acquired operations, which could impact future performance.