Swarmer NASDAQ: SWMR reported second-quarter 2026 revenue of approximately $216,000, up from $138,000 in the prior-year period, as the autonomous-systems software company completed its first full quarter as a public company. The company also reported a wider net loss as it increased spending on personnel, engineering, product development and public-company operating costs.
President and U.S. CEO Alex Fink said the company expanded its customer base, advanced deployments across unmanned platforms and continued investing in technology and partnerships during the quarter. Swarmer develops software intended to enable a single operator to coordinate large numbers of autonomous systems across air, land and maritime applications.
Fink said Swarmer's technology has supported more than 100,000 combat missions in Ukraine since April 2024. He characterized the operational data generated through those missions as a differentiator that helps the company refine its artificial intelligence and autonomy capabilities.
SkyKnight Program and Revenue Accounting
A central focus of the call was Swarmer's expanded SkyKnight program. During the quarter, the customer added approximately $1 million in contracted license value, bringing the combined contract's potential value to approximately $14.2 million if all options are exercised. The program currently represents approximately $3.9 million of contracted license value, according to management.
Swarmer received $1.4 million under the SkyKnight program during the quarter after delivering software licenses. However, CFO Brooks Ensign said the accounting treatment limited the amount recognized in reported revenue. Approximately $200,000 was recognized as revenue, $100,000 was recorded as deferred revenue, and the remainder was recorded as an advance on the balance sheet.
Fink said the contract expansion was outside the scope of the original agreement. He explained that SkyKnight, also called Meta, increased its projected quantity of fixed-wing drones and acquired additional autonomy licenses. The customer retains an option to upgrade certain drones equipped with Swarmer's operating system to the company's full autonomy platform.
Ensign said the SkyKnight program also included a separate, one-time contractual prepayment of approximately $2.2 million that contributed to the company's cash usage during the quarter.
Costs, Loss and Liquidity
Gross profit totaled approximately $184,000 in the second quarter, compared with $82,000 a year earlier. In response to an analyst's question, Ensign said cost of goods sold currently consists of web-based data services. He said engineering services could be included in future revenue arrangements and that the company was still evaluating its methodology, but estimated gross margins could be around 80%.
Operating expenses rose to approximately $7.5 million from approximately $855,000 in the second quarter of 2025. Ensign attributed the increase primarily to investments in personnel, engineering and product development, as well as higher consulting, legal and professional-service expenses related to being a public company.
The quarter's operating expenses included one-time equipment purchases that Ensign said are unlikely to recur in most quarters, along with $1.2 million in non-cash stock compensation expense. Net loss widened to approximately $7.2 million, compared with a loss of approximately $1.6 million in the prior-year quarter.
Cash and cash equivalents stood at approximately $25.3 million as of June 30, compared with $9.3 million at the end of 2025. Swarmer raised approximately $8.8 million through its equity line of credit during the quarter and collected an additional $17.9 million subsequent to quarter-end through Aug. 10. Fink said the company had raised more than $26 million through the facility since it was announced.
Partnerships and Platform Integrations
Management highlighted several partnerships intended to expand Swarmer's software reach and data access. Fink said the company's relationship with Oak Grove Technologies has resulted in Swarmer software being integrated on a U.S. platform. He also said Oak Grove's training presence in the special operations community could help increase operator awareness of Swarmer's autonomy capabilities.
Swarmer is working with Lantronix on a compute platform for small unmanned systems. Fink said the company sees an opportunity between lower-end Raspberry Pi systems and higher-end NVIDIA Jetson products, with Swarmer's operating system intended to be built into the proposed platform.
The company also cited its cooperation with Molfar for access to open-source intelligence data and its relationship with Brightline for operational data from unmanned platforms. Fink said the company believes additional data sources can support a “data flywheel” in which deployment data helps improve models and drives further deployments.
Integration Timelines and Strategic Opportunities
During the question-and-answer session, Fink said work had begun and was continuing under Swarmer's memorandum of understanding with Powers to integrate its software into several of that company's platforms. He did not provide a timeline for converting the memorandum into a commercial contract, stating that an announcement would be made if and when the platforms are ready to scale and have buyers.
Integration timelines can range from two to four weeks, including field testing, for platforms similar to systems Swarmer has previously deployed, Fink said. More unusual platforms can take several months. He added that revenue may be delayed even after a technical integration is completed because customers must sell the final product to end users, which are typically government entities.
Fink also said Swarmer is evaluating opportunities to invest in, acquire or help scale complementary defense technologies, though he did not announce any potential transactions. Management said it remains focused on expanding adoption, deepening manufacturer integrations and supporting programs as they progress toward scaled deployment.
About Swarmer (NASDAQ:SWMR)
We are launching the future of autonomous warfare through combat-proven software that enables military forces to deploy and coordinate drone swarms at significant scale. While hardware manufacturers compete and as the go-to in an increasingly commoditized market, we seek to establish ourself as a critical software layer operating system for autonomous swarm operations positioning us to capture increased value as the global military drone market experiences growth projected to exceed 12% compound annual growth through 2030.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
Before you consider Swarmer, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Swarmer wasn't on the list.
While Swarmer currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
With the proliferation of data centers and electric vehicles, the electric grid will only get more strained. Download this report to learn how energy stocks can play a role in your portfolio as the global demand for energy continues to grow.
Get This Free Report
