Palladyne AI Corp (NASDAQ:PDYN) reported fourth-quarter and full-year 2025 results, pointing to a year of strategic transformation driven by acquisitions and expansion into defense and aerospace technologies.
The company said its purchases of GuideTech, Warnke Precision Machining and MKR Fabricators in November 2025, alongside the launch of Palladyne Defense, marked a shift from a pure autonomy software developer to a broader defense and industrial technology platform. The group now spans advanced avionics, UAV and missile systems, engineering services and precision manufacturing, while also expanding into space-related projects with the Air Force Research Laboratory and Portal Space Systems.
Fourth-quarter revenue rose 118% year over year to $1.7 million, although the operating loss widened to $9.3 million. For the full year, revenue declined 33% to $5.2 million, while operating loss reached $32.4 million, even as the company reported GAAP net income due to non-operational items.
Operationally, Palladyne AI released Palladyne IQ 2.0 and secured its first commercial customer. The company also demonstrated autonomous swarming capabilities between its Gremlin-X UAV platform and systems from Red Cat Holdings, and signed a missile propulsion subsystem contract with a new defense prime.
Backlog reached $13.5 million by the end of 2025 and rose to nearly $18 million by mid-February 2026. The company reiterated its 2026 revenue guidance of $24 million to $27 million, citing stronger visibility across air and space defense programs.
During the year, Palladyne AI also appointed a new President of Commercial and Industrial operations, progressed development of its Gremlin-X mini-bomber and new BRAIN platform variants, and secured a new patent alongside multiple applications tied to decentralized autonomy and swarming technologies.
More about Palladyne AI Corp
Palladyne AI develops embodied AI and collaborative autonomy technologies for defense and industrial applications. Its systems combine sensor fusion, adaptive AI models and edge computing to enable distributed operations across air, ground, maritime and industrial environments.
Through acquisitions such as GuideTech and the creation of Palladyne Defense, the company has expanded into UAV and missile development as well as certified U.S.-based manufacturing, positioning itself to pursue government, defense and commercial opportunities across multiple domains.