Palladyne AI (NASDAQ:PDYN) Releases Quarterly Earnings Results, Misses Expectations By $0.07 EPS

Key Points

• Palladyne AI reported Q1 EPS of ($0.23), missed expectations by $0.07 and posted revenue of $3.54M versus $4.93M expected, sending shares down about 7.7% on the day.
• Management highlighted strong operational progress — revenue grew 107% YoY, backlog rose to ~ $17M after ~ $7M in new awards — and reiterated 2026 revenue guidance of $24M–$27M, implying a material H2 ramp if conversion occurs.
• Cash metrics are a concern: operating cash use in Q1 was above guidance (~$10.2M vs $8–$9M expected), GAAP net loss was $12.6M, and full‑year cash burn is forecast at $32M–$36M, raising near‑term funding sensitivity despite $43.7M in liquidity.

Palladyne AI (NASDAQ:PDYN - Get Free Report) posted its quarterly earnings data on Tuesday. The company reported ($0.23) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.16) by ($0.07), FiscalAI reports. The company had revenue of $3.54 million during the quarter, compared to the consensus estimate of $4.93 million. Palladyne AI had a net margin of 191.37% and a return on equity of 8.82%.

Here are the key takeaways from Palladyne AI's conference call:

• Revenue grew 107% YoY to $3.5M, backlog rose to approximately $17M after ~$7M in new awards, and management reiterated 2026 revenue guidance of $24M–$27M, implying a material ramp in H2.
• Management highlighted major operational validation — a live heterogeneous autonomous swarming demo (Gremlin‑X + Red Cat), two space‑domain engagements (AFRL HANGTIME, Portal), a new patent and invitations to Northern Strike and AFRL Relentless Wolfpack — signaling accelerating product adoption and partner interest.
• Operating cash usage in Q1 ran above the guided quarterly range (≈$10.2M vs $8–$9M expected), GAAP net loss was $12.6M, and full‑year cash burn is forecast at $32M–$36M despite $43.7M in liquidity, increasing near‑term funding sensitivity if revenue conversion delays persist.
• Manufacturing is underutilized (~30% capacity) and first‑article costs compressed current consolidated gross margin (~30%), but management expects margins to improve as backlog converts and higher‑margin software (SwarmOS/IntelliSwarm) revenue scales.

Palladyne AI Trading Down 7.7%

Shares of NASDAQ PDYN traded down $0.51 during trading hours on Tuesday, reaching $6.02. The stock had a trading volume of 1,867,241 shares, compared to its average volume of 3,544,502. The firm has a market cap of $279.67 million, a price-to-earnings ratio of 27.34 and a beta of 3.52. The business's fifty day moving average price is $6.73 and its two-hundred day moving average price is $6.46. Palladyne AI has a 52-week low of $4.14 and a 52-week high of $13.00.

Analysts Set New Price Targets

A number of research firms have recently commented on PDYN. Weiss Ratings raised Palladyne AI from a "sell (d-)" rating to a "hold (c-)" rating in a research note on Thursday, March 5th. Zacks Research upgraded Palladyne AI to a "hold" rating in a report on Wednesday, April 8th. Lake Street Capital assumed coverage on Palladyne AI in a report on Friday, April 17th. They issued a "buy" rating and a $11.00 price target for the company. Wall Street Zen lowered Palladyne AI from a "hold" rating to a "sell" rating in a report on Saturday, March 7th. Finally, Jefferies Financial Group boosted their price target on Palladyne AI from $7.00 to $8.00 and gave the company a "hold" rating in a report on Tuesday, March 10th. Two analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, Palladyne AI currently has an average rating of "Hold" and an average price target of $9.67.

Insider Buying and Selling

In other news, CTO Denis Garagic sold 12,945 shares of the company's stock in a transaction on Thursday, March 12th. The stock was sold at an average price of $7.55, for a total transaction of $97,734.75. Following the transaction, the chief technology officer directly owned 592,284 shares of the company's stock, valued at approximately $4,471,744.20. This represents a 2.14% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Trevor Thatcher sold 7,649 shares of the company's stock in a transaction on Thursday, March 12th. The shares were sold at an average price of $7.55, for a total value of $57,749.95. Following the completion of the transaction, the chief financial officer directly owned 183,288 shares in the company, valued at approximately $1,383,824.40. The trade was a 4.01% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 27,396 shares of company stock valued at $206,840 over the last 90 days. Corporate insiders own 13.40% of the company's stock.

Hedge Funds Weigh In On Palladyne AI

Several hedge funds have recently made changes to their positions in the company. Osaic Holdings Inc. increased its position in shares of Palladyne AI by 94.3% in the 2nd quarter. Osaic Holdings Inc. now owns 5,098 shares of the company's stock valued at $44,000 after acquiring an additional 2,474 shares during the period. Quarry LP acquired a new position in shares of Palladyne AI in the 3rd quarter valued at $28,000. Bridgeway Capital Management LLC increased its position in shares of Palladyne AI by 9.7% in the 2nd quarter. Bridgeway Capital Management LLC now owns 48,700 shares of the company's stock valued at $422,000 after acquiring an additional 4,300 shares during the period. BNP Paribas Financial Markets increased its position in shares of Palladyne AI by 136.7% in the 2nd quarter. BNP Paribas Financial Markets now owns 10,759 shares of the company's stock valued at $93,000 after acquiring an additional 6,213 shares during the period. Finally, Vontobel Holding Ltd. boosted its holdings in Palladyne AI by 30.9% in the fourth quarter. Vontobel Holding Ltd. now owns 27,799 shares of the company's stock valued at $118,000 after purchasing an additional 6,556 shares during the last quarter. 26.02% of the stock is owned by institutional investors and hedge funds.

Palladyne AI Company Profile

Palladyne AI Corp., a software company, focuses on delivering software that enhances the utility and functionality of third-party stationary and mobile robotic systems in the United States. Its Artificial Intelligence (AI)/ Machine Learning (ML) software platform enables robots to observe, learn, reason, and act in structured and unstructured environments. The company's software platform enables robotic systems to perceive their environment and quickly adapt to changing circumstances by generalizing from their experience using dynamic real-time operations without extensive programming and with minimal robot training.

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