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Palladyne AI Corp
(NASDAQ:PDYN)
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Rating:52Neutral
Price Target:
$6.00
▲(21.46% Upside)
Action:Reiterated
Date:08/07/26
Overall score is held back primarily by weak financial performance (heavy losses and sustained negative free cash flow) despite strong revenue growth and modest leverage. Earnings-call commentary and guidance provide a meaningful positive offset via rapid Q2 growth and expanding backlog, while technicals are mixed and valuation is constrained by the negative P/E and lack of dividend yield.
Positive Factors
Rapid Revenue Growth & Backlog
Sustained, outsized top-line growth and a materially larger backlog indicate strong product-market fit in defense autonomy. High win rates and visible contracted demand create a multi-quarter revenue runway as awards convert, supporting scaling of recurring government program sales and predictable near-term revenue.
Negative Factors
Persistent Cash Burn
Multi-year, large negative operating and free cash flow means operations rely on external capital. Continued cash burn elevates dilution and refinancing risk, forces use of ATM/issuances, and constrains strategic optionality unless revenue conversion materially reduces burn or profitability improves.
Read all positive and negative factors
Positive Factors
Negative Factors
Rapid Revenue Growth & Backlog
Sustained, outsized top-line growth and a materially larger backlog indicate strong product-market fit in defense autonomy. High win rates and visible contracted demand create a multi-quarter revenue runway as awards convert, supporting scaling of recurring government program sales and predictable near-term revenue.
Read all positive factors
Palladyne AI Corp (PDYN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$295.54M
Dividend YieldN/A
Average Volume (3M)1.92M
Price to Earnings (P/E)―
Beta (1Y)3.22
Revenue Growth171.79%
EPS Growth62.11%
CountryUS
Employees161
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.68
Shares Outstanding49,338,510
10 Day Avg. Volume849,884
30 Day Avg. Volume1,918,680
Financial Highlights & Ratios
PEG Ratio-0.15
Price to Book (P/B)2.22
Price to Sales (P/S)31.54
P/FCF Ratio-5.84
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$12.00Price Target Upside142.91% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.92
Revenue Forecast (FY)$24.65M
Palladyne AI Corp Business Overview & Revenue Model
Company Description
null...
How the Company Makes Money
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Palladyne AI Corp Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 18, 2026
Earnings Call Sentiment Positive
The call was overall constructive and bullish: management reported record sequential and year-over-year revenue growth, a meaningful increase in backlog and several operational and partnership milestones (fielding of SwarmOS in Army exercises, a major BRAIN follow-on order, IAI partnership, and multiple contracts). Liquidity remains supported by ~$44M cash and ATM authority. However, the company continues to run substantial operating losses and high cash burn, gross margins are depressed due to low capacity utilization, and many opportunities remain dependent on government funding and execution timing. On balance, the positive operational traction, bookings and partnerships materially outweigh the near-term financial and execution risks, but those risks warrant monitoring.Positive Updates
Record Quarterly Revenue
Q2 revenue of $5.8M, a 470% increase year-over-year (from $1.0M) and a 63% sequential increase vs. Q1 (~$3.5M). Management described the quarter as record revenue and broad-based growth across business units.
Negative Updates
Large Operating Losses and Widening Expenses
Q2 operating loss of $13.4M (vs. $8.1M year-ago). GAAP net loss of $12.3M ($0.27 per diluted share) vs. $7.5M a year ago. Non-GAAP net loss of $10.8M ($0.23) vs. $6.4M a year ago.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Revenue
Q2 revenue of $5.8M, a 470% increase year-over-year (from $1.0M) and a 63% sequential increase vs. Q1 (~$3.5M). Management described the quarter as record revenue and broad-based growth across business units.
Read all positive updates
Company Guidance
Management reiterated full‑year 2026 revenue guidance of $24.0M–$27.0M (roughly 357%–415% growth versus 2025 revenue of $5.2M), supported by Q2 revenue of $5.8M (up 470% YoY and 63% sequential), backlog of ~$24.6M (≈$25M) after booking about $13M of new business in Q2, and an expectation that a majority of backlog will convert to revenue over the next 12–18 months; they also reaffirmed full‑year operating cash burn of $32M–$36M inclusive of CapEx (≈$8M–$9M per quarter on average), noted Q2 operating cash burn of $11.1M, ended the quarter with ~$43.7M in cash/cash equivalents and marketable securities, and highlighted access to their ATM (net proceeds of $17.3M YTD at an average $6.84/share with ≈$24M remaining capacity) while expecting cash burn to decline in the second half as revenue and margins ramp.Palladyne AI Corp Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
63
Positive
Cash Flow
22
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.84M | 5.25M | 7.79M | 6.15M | 14.57M | 5.08M |
| Gross Profit | 3.40M | 2.56M | 4.30M | 1.10M | 2.96M | 1.21M |
| EBITDA | -30.58M | 8.59M | -26.29M | -78.64M | -103.21M | -80.94M |
| Net Income | -30.17M | 10.04M | -72.62M | -115.59M | -157.13M | -81.51M |
Balance Sheet | ||||||
| Total Assets | 94.39M | 95.71M | 56.25M | 60.43M | 167.63M | 235.82M |
| Cash, Cash Equivalents and Short-Term Investments | 43.75M | 47.05M | 40.07M | 39.09M | 114.50M | 217.11M |
| Total Debt | 10.56M | 10.78M | 11.04M | 12.40M | 13.28M | 7.00K |
| Total Liabilities | 23.55M | 21.04M | 65.79M | 19.52M | 23.18M | 21.86M |
| Stockholders Equity | 70.84M | 74.67M | -9.53M | 40.91M | 144.45M | 213.96M |
Cash Flow | ||||||
| Free Cash Flow | -36.70M | -28.35M | -22.89M | -77.40M | -66.89M | -46.79M |
| Operating Cash Flow | -35.20M | -27.64M | -22.63M | -76.62M | -65.39M | -42.10M |
| Investing Cash Flow | 27.06M | -24.58M | 6.88M | 64.68M | -109.05M | -4.89M |
| Financing Cash Flow | 21.76M | 39.25M | 23.80M | -82.00K | -7.52M | 230.44M |
Palladyne AI Corp Technical Analysis
Neutral
4.94
Price Trends
6.10
Negative
6.25
Negative
6.34
Negative
Market Momentum
<0.01
Negative
57.48
Neutral
86.14
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PDYN, the sentiment is Neutral. The current price of 4.94 is below the 20-day moving average (MA) of 5.31, below the 50-day MA of 6.10, and below the 200-day MA of 6.34, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.48 is Neutral, neither overbought nor oversold. The STOCH value of 86.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PDYN.
Palladyne AI Corp Risk Analysis
Palladyne AI Corp disclosed 65 risk factors in its most recent earnings report. Palladyne AI Corp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Palladyne AI Corp Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | $295.54M | -9.17 | -45.15% | ― | 171.79% | 62.11% | |
52 Neutral | $365.01M | -7.84 | -26.16% | ― | ― | ― | |
46 Neutral | $146.96M | -1.23 | -120.57% | ― | 719.35% | ― | |
45 Neutral | $1.59B | -3.10 | -63.91% | ― | -35.67% | -49.96% | |
45 Neutral | $1.57B | -19.00 | -12.34% | ― | -13.72% | 87.44% | |
40 Underperform | $121.77M | -0.92 | -331.54% | ― | -9.07% | 35.07% |
* Technology Sector Average
PDYN
Palladyne AI Corp
6.19
-1.32
-17.58%
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GRRR
Gorilla Technology Group Inc.
13.49
-3.34
-19.85%
ZENA
ZenaTech, Inc.
1.71
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-64.38%
Palladyne AI Corp Corporate Events
Business Operations and StrategyFinancial Disclosures
Palladyne AI Delivers Explosive Q2 Growth and Backlog
Positive
Aug 6, 2026
Palladyne AI reported that second-quarter 2026 revenue surged 470% year over year to $5.8 million and 63% sequentially, driven by both acquisitions and organic growth, while backlog rose 43% during the quarter to $24.6 million as of June 30, 2026,...
Business Operations and StrategyFinancial Disclosures
Palladyne AI Reports Surging Defense Revenue and Backlog
Positive
Jul 8, 2026
On July 8, 2026, Palladyne AI Corp reported preliminary unaudited results for the quarter ended June 30, 2026, highlighting a sharp acceleration in its defense-focused operations. Second-quarter revenue is expected to be about $5.8 million, repres...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Palladyne AI Shareholders Approve Expanded Equity Incentive Plan
Positive
Jun 8, 2026
At its 2026 annual meeting, Palladyne AI Corp stockholders approved an amendment and restatement of the 2021 Equity Incentive Plan, increasing the shares of common stock available for issuance under the plan by 4,500,000, and ratified the appointm...
Business Operations and Strategy
Palladyne AI, IAI Partner on U.S. Loitering Munitions
Positive
Jun 8, 2026
On June 8, 2026, Palladyne AI Corp., a U.S.-based defense and industrial technology company specializing in embodied AI, autonomy software, advanced avionics, and precision manufacturing, announced a strategic partnership with Israel Aerospace Ind...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.