Palladyne AI Corp.

Palladyne AI Corp. stockholders approved an amendment to the 2021 Equity Incentive Plan, increasing the number of shares authorized for issuance by 4,500,000. Additionally, stockholders approved restricted stock unit awards totaling 5,360,659 shares for senior executives, which are now effective and eligible for vesting. The company also announced the election of Dennis Weibling as a Class II director and the ratification of KPMG LLP as its independent auditor for fiscal year 2026.

Palladyne AI Corp. announced a strategic partnership with Israel Aerospace Industries (IAI) to exclusively manufacture and market IAI's combat-proven loitering munition systems to the U.S. government. The Memorandum of Understanding (MOU) includes the HAROP, HARPY, and Mini-HARPY systems, which are designed for suppressing and destroying enemy air defenses. Palladyne AI will adapt the systems to U.S. requirements, establish domestic manufacturing, and pay IAI royalties on sales. The partnership has a potential term of up to ten years and aims to fulfill the U.S. Department of War's increasing demand for advanced loitering munitions.

Palladyne AI Corp. reported a net loss of $12.6 million for Q1 2026, a significant decline from a net income of $22.8 million in Q1 2025, primarily due to a loss on warrant liabilities. Despite this, total revenue more than doubled to $3.5 million, driven by new product and engineering services revenue streams. The company continues to incur operating losses and negative cash flows, with cash and marketable securities totaling $43.7 million as of March 31, 2026.

Palladyne AI Corp. reported its first quarter 2026 financial results, with revenue increasing 107% year-over-year to $3.5 million. The company's backlog grew to approximately $17 million, reflecting $7 million in new contract awards during the quarter. Despite significant revenue growth and strategic operational advancements in defense and commercial sectors, the company posted a GAAP net loss of ($12.6) million and a non-GAAP net loss of ($10.2) million. Palladyne AI reiterated its full-year 2026 revenue guidance of $24 million to $27 million, expecting sequential growth with acceleration in the second half.