Airship AI (AISP) Financials

Airship AI’s latest statements show improving revenue and gross-margin performance compared with the same quarter last year, but the company remains unprofitable and carries negative shareholders’ equity. The results also contain unusually large non-operating gains and losses in prior periods, making operating trends more useful than headline net income.

• Revenue growth remains strong year over year. Q2 2026 revenue was $4.1 million, up approximately 92% from the restated $2.1 million reported in Q2 2025. However, revenue declined from $6.4 million in Q1 2026, indicating significant quarter-to-quarter volatility.
• Gross-margin performance improved materially. Gross profit was $3.1 million in Q2 2026, representing a margin of roughly 75%, compared with about 71% in Q2 2025 and 50% in Q1 2026. Lower cost of revenue helped offset the quarter’s lower sales.
• Liquidity is adequate in the near term. Airship AI held $12.4 million of cash and equivalents at June 30, 2026, against $5.3 million of current liabilities. This implies a current ratio of approximately 3.2, although the company’s cash position declined by about $202,000 during Q2.
• Operating cash flow improved substantially from the prior year. Q2 2026 operating cash outflow was $235,000, versus an outflow of $1.8 million in the restated Q2 2025 period. Operating cash flow for the first half of 2026 was approximately $579,000 positive, although this improvement has not yet translated into sustained profitability.
• Customer collections and working capital were mixed. Accounts receivable fell from $5.4 million at March 31, 2026, to $3.7 million at June 30, which supported cash conversion. At the same time, current and noncurrent deferred revenue totaled approximately $8.9 million, creating future revenue-recognition obligations and making reported sales more dependent on contract timing.
• Research and development spending is stable. Q2 2026 R&D expense was $854,000, close to the $844,000 recorded in Q1 and modestly above the prior-year quarter. Continued investment may support product development, but it also contributes to the company’s ongoing operating losses.
• Airship AI remains structurally unprofitable at the operating level. The company posted a Q2 2026 operating loss of $1.5 million and a net loss of $2.4 million, or $0.07 per share. Operating expenses of $4.6 million exceeded gross profit of $3.1 million, and the company has not reported a quarterly operating profit in the supplied recent history.
• Net results are being affected by volatile non-operating items. Q2 2026 included approximately $1.0 million of net other expense, compared with $773,000 of other income in Q1. Earlier periods included very large gains and losses, including a $23.5 million other-income benefit in Q4 2025 and a $21.8 million other-expense charge in Q2 2025. These items make headline earnings difficult to use as a measure of recurring performance.
• The balance sheet remains highly leveraged relative to assets. Total liabilities were $26.4 million at June 30, 2026, compared with total assets of $17.7 million. Total shareholders’ equity was negative $8.6 million, an improvement from negative $40.1 million in Q3 2025 but still a significant financial weakness.
• Share dilution and financing risk remain important concerns. Weighted-average basic shares increased to approximately 34.4 million in Q2 2026 from 31.9 million in the restated Q2 2025 period. With negative equity, recurring operating losses and only modest financing inflows in 2026, Airship AI may need additional capital if cash generation does not improve.

Overall, the operating picture is mixed: Airship AI is growing revenue on a year-over-year basis and recently produced stronger gross margins and improved operating cash flow. Nevertheless, the latest quarter still showed a meaningful operating loss, negative book equity and considerable earnings volatility from non-operating items. Investors should focus on whether revenue growth becomes consistent, operating expenses decline relative to gross profit and cash flow remains positive without relying on financing.