New Horizon Aircraft Ltd. (NASDAQ:HOVR) reported a fiscal second-quarter 2026 loss of $0.21 per share on Wednesday as it continues to invest in the development of its hybrid-electric vertical takeoff and landing (VTOL) aircraft. The company’s shares edged up 0.50% following the update.
The aerospace developer said it is making solid progress toward assembling its first full-scale Cavorite X7 prototype in 2026, with initial flight testing targeted for early 2027.
Horizon Aircraft also highlighted an improved financial position, ending the quarter with more than $24 million in cash, which management believes is sufficient to fund operations through 2026. In addition, the company secured a non-dilutive grant under the INSAT program valued at an estimated $10.5 million to support an all-weather eVTOL project.
“The progress achieved during the second quarter of fiscal 2026 provides strong momentum toward completing our full-scale aircraft and commencing initial testing within the next 12 to 18 months,” said Brandon Robinson, Co-Founder and CEO of Horizon Aircraft.
Over the past year, the company has doubled the size of its engineering team and plans to double overall headcount again by the end of 2026 as development accelerates. Horizon said operating efficiency has improved, with administrative costs growing more slowly than research and development spending as work on the full-scale aircraft advances.
CFO Brian Merker added, “With significantly improved working capital and incoming non-dilutive funding, coupled with a disciplined operating strategy that balances efficiency with growth, we are well positioned to continue investing in our people, advancing our technology, and executing toward completion of our full-scale aircraft.”
Horizon Aircraft is developing a hybrid-electric VTOL platform designed to conduct most of its missions in conventional wing-borne flight, a configuration the company says delivers leading speed, range and operational flexibility.