XTI Aerospace Reports Fourth Quarter and Full Year 2025 Results

XTI Aerospace Reports Fourth Quarter and Full Year 2025 Results DALLAS, April 15, 2026 /PRNewswire/ -- XTI Aerospace, Inc. (Nasdaq: XTIA) ("XTI Aerospace," "XTI," or the "Company"), a publicly traded aerospace and defense company operating across drone distribution, unmanned systems, and advanced manufacturing markets through three dedicated divisions, and parent company of Drone Nerds, LLC, a leading drone solutions platform serving enterprise and government customers, today announced financial results for its fourth quarter and full year ended December 31, 2025, and provided the Company's outlook for 2026.

2025 fourth quarter and full year highlights (includes the acquisition of Drone Nerds, LLC and Anzu Robotics, LLC (together, "Drone Nerds") in November 2025, Inpixon results excluded and reflected in discontinued operations):

For purposes of this release, the Company defines "pro forma" as unaudited supplemental combined financial information.

2025 pro forma fourth quarter XTI highlights (1) (includes Drone Nerds as if the acquisition had occurred as of January 1, 2024):

2025 full year pro forma, XTI reported the following highlights (1) (includes Drone Nerds as if the acquisition had occurred as of January 1, 2024):

Company guidance:

2025 fourth quarter events:

Recent events:

(1)

For information on unaudited supplemental combined financial information presented, see the section titled "Unaudited Supplemental Combined Financial Information" in this press release.

"The acquisition of Drone Nerds transformed XTI Aerospace into a scaled, revenue-generating platform," said Scott Pomeroy, Chief Executive Officer of XTI Aerospace. "Drone Nerds is a leading enterprise-focused UAS solutions provider with deep customer relationships and a proven operating model that continues to deliver strong performance. Its OEM-agnostic approach and broad supplier network position us to participate in a rapidly evolving market. Just as important, the platform provides real-time data and market intelligence that informs where we invest, build, and expand. We believe this foundation positions us to support growth and support our expansion into new markets and higher-value opportunities across the business."

"XTI Drones continues to scale as a cash-generating commercial engine. Our Advanced Technology and Manufacturing division strengthens our ability to expand our participation in the value chain through U.S.-based manufacturing. Our Autonomous Defense Systems initiative is building a pipeline of potential military and defense contract opportunities in a large and growing market. Together, these elements create a flywheel that we believe is designed to support growth, margin expansion, and long-term value creation. In 2026, our focus is execution."

Liquidity and Capital Resources

At December 31, 2025, the Company had $16.7 million of unrestricted cash and cash equivalents. An additional $0.2 million of cash is included in current assets of discontinued operations and is not included in unrestricted cash balances.

The Company does not currently expect to require additional capital to support the ordinary-course operating needs of the Drone Nerds business. However, the Company may seek additional capital in the future to support strategic acquisitions and the development of its advanced systems and domestic manufacturing initiatives.

Subsequent to December 31, 2025 and through the date of this filing, holders of certain warrants issued in connection with our 2025 public offerings exercised warrants to purchase 3,963,408 shares of the Company's common stock. These exercises resulted in aggregate cash proceeds to us of approximately $7.9 million. We engaged ThinkEquity LLC as our exclusive advisor in connection with the solicitation of these warrants for which we paid cash compensation of 3% of the gross proceeds, or approximately $0.2 million. After deducting such commissions, the net proceeds we received from these warrant exercises was approximately $7.7 million.

Unaudited Supplemental Combined Financial Information

The Company has provided unaudited supplemental financial information of the combined company in this press release. The following financial information combines XTI and Drone Nerds historical operating results as if the businesses had been operated together on a combined basis during prior periods. This financial information is intended to illustrate the current operating footprint of the Company following the acquisition of Drone Nerds and divestiture of the Company's Industrial IoT / Real-Time Location Systems business.

For the avoidance of doubt, the unaudited supplemental combined financial information was not prepared in accordance with Article 11 of Regulation S-X and differs from the unaudited pro forma condensed combined financial information included in the Pro Forma 8-K/A filing dated February 9, 2026 filed with the SEC (the "Pro Forma 8-K Filing"), which was prepared in accordance with Article 11 of Regulation S-X. Accordingly, the unaudited supplemental combined financial information was not prepared in accordance with Article 11 of Regulation S-X and is presented for illustrative purposes to assist investors in understanding the operational performance of the combined business, timing and operational impact of the acquisition, and integration of the combined business, and should not be considered a substitute for the pro forma financial information included in the Company's prior filings prepared in accordance with Article 11 of Regulation S-X.

Consequently, the unaudited supplemental combined financial information is intentionally different from, but does not supersede, the pro forma financial information set forth in the Pro Forma 8-K Filing or the pro forma financial information set forth in the Company's most recent annual report on Form 10-K

In addition, the unaudited supplemental combined financial information does not purport to indicate the results that actually would have been obtained had the companies been operated together during the periods presented, or which may be realized in the future. The unaudited supplemental combined financial information has no impact on XTI or Drone Nerds previously reported consolidated balance sheets or statements of operations, cash flows or equity.

XTI Aerospace, Inc. and Subsidiaries

Pro Forma (1) Combined Financial Data

(Unaudited)

For the Three Months Ended

December 31,

2025

2024

(in thousands, except percentages)

Amount

$ Change

% Change

Revenues

41,709

26,832

14,877

Gross profit

8,149

3,694

4,455

121

Gross profit %

19.5

13.8

5.7

Net loss from continuing operations

(7,599)

(9,045)

1,446

(16)

For the Years Ended

2025

2024

(in thousands, except percentages)

Amount

$ Change

% Change

Revenues

121,590

111,201

10,389

Gross profit

26,784

17,333

9,451

Gross profit %

22.0

15.6

6.4

Net loss from continuing operations

(39,042)

(23,948)

(15,094)

(1)

For information on unaudited supplemental combined financial information presented, see the section titled "Unaudited Supplemental Combined Financial Information" in this press release.

The unaudited supplemental combined financial information excludes non-recurring transaction-related costs associated with the Drone Nerds acquisition.

Conference Call and Webcast (Live Q&A Format)

The Company will post prepared remarks to the Investor Relations section of its website before the market opens on April 15, 2026. These remarks are intended to provide additional detail and context regarding the Company's financial results and business update.

The Company will host a live webcast on April 15, 2026 at 3:30 PM CT (4:30 PM ET), which will consist of a video-based question and answer session with Scott Pomeroy, Chief Executive Officer, and Brooke Turk, Chief Financial Officer. As part of this format, prepared remarks will not be read but will be available in the Investor Relations section of the Company's website at xtiaerospace.com under "IR News & Events."

Investors and analysts are invited to participate and may register in advance using this link: XTI Aerospace April 15 Earnings Webcast. The registration link is also available in the "Investor Relations" section of the Company's website under "IR News & Events." Dial-in information will be included upon registration.

The replay of the event will be publicly available to all investors in the Investor Relations section, under "IR News & Events" section of the Company's website at xtiaerospace.com following the conclusion of the question and answer session and will remain available for 30 days.

About XTI Aerospace, Inc.

XTI Aerospace, Inc. (Nasdaq: XTIA) is a publicly traded aerospace and defense company operating across unmanned systems, advanced manufacturing, and drone distribution markets through three dedicated divisions.

The Company's Commercial division - XTI Drones, anchored by its Drone Nerds subsidiary, LLC, is one of the nation's leading drone solutions platforms, serving enterprise and government customers across sales, service, and support. The Commercial Division's market reach and transaction data provide XTI with unparalleled visibility into purchasing behavior across the unmanned systems industry — a strategic intelligence asset the Company may leverage to support future data and analytics initiatives.

The Company's Autonomous Defense Systems ("ADS") division is focused on the design, development, and integration of unmanned platforms for defense and commercial applications, with an emphasis on serving U.S. government customers and supporting domestic procurement initiatives aligned with national security priorities.

The Company's Advanced Technology and Manufacturing (ATM) division is developing a U.S.-based production platform for NDAA-compliant and Department of War ("DoW") Blue List-eligible unmanned systems components and technologies, designed to support domestic manufacturing and supply chain requirements and serve the growing demand for domestically sourced unmanned systems across defense and enterprise markets.

XTI Aerospace is headquartered in Addison, Texas.

For more information about XTI, please visit xtiaerospace.com and follow XTI on LinkedIn, Instagram, X, and YouTube.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact contained in this press release are forward-looking statements.

Forward-looking statements may be identified by words such as "believe," "continue," "could," "would," "will," "expect," "intend," "plan," "target," "estimate," "project," or similar expressions. These statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied. Such risks include, but are not limited to, market adoption, regulatory requirements, supply chain conditions, technological development, integration of the acquired businesses, availability of capital and liquidity, and changes in applicable laws or regulations as well as the other risks and uncertainties described in the Company's filings with the U.S.

165 Securities and Exchange Commission. XTI undertakes no obligation to update any forward-looking statements to reflect subsequent events or circumstances, except as required by applicable law. Readers are encouraged to review the risk factors described in XTI's filings with the U.S. Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent filings.

Contacts:

General inquiries:

Email: [email protected]

Web: https://xtiaerospace.com/contact

Investor Relations:

Dave Gentry, CEO

RedChip Companies, Inc.

Phone: 1-407-644-4256

Email: [email protected]

XTI Aerospace, Inc. and Subsidiaries

Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

For the Three Months Ended

December 31,

For the Year Ended

December 31,

2025

2024

2025

2024

Revenues

22,490

—

22,490

—

Cost of Revenues

17,569

—

17,569

—

Gross Profit

4,921

—

4,921

—

Operating Expenses

Research and development

1,287

491

5,240

1,970

Sales and marketing

2,323

545

5,604

1,517

General and administrative

12,719

4,505

32,845

19,660

Merger-related transaction costs

3,429

—

3,887

6,490

Amortization of intangible assets

142

166

Total Operating Expenses

19,900

5,549

47,742

29,667

Loss from Operations

(14,979)

(5,549)

(42,821)

(29,667)

Other (Expense) Income

Interest expense, net

(51)

(229)

(270)

(782)

Amortization of deferred loan costs

—

(17)

Loss on conversion of note receivable to equity

instrument

—

(2,630)

—

(2,630)

Loss on extinguishment of debt

—

(421)

(6,732)

Provision for expected credit losses on convertible

note investment

(2,039)

—

(2,039)

—

Change in fair value of convertible notes payable

—

12,882

Change in fair value of equity securities

—

(1,068)

(349)

(1,068)

Change in fair value of warrant liability

2,684

—

(596)

(281)

Warrant issuance expense

—

(6,580)

—

Other income, net

Total Other (Expense) Income

624

(3,903)

(10,225)

1,414

Loss from continuing operations before income

taxes

(14,355)

(9,452)

(53,046)

(28,253)

Income tax benefit (provision)

—

(16)

Net loss from continuing operations, net of tax

(14,351)

(9,452)

(53,036)

(28,269)

Loss from discontinued operations, net of tax

(6,964)

(4,404)

(15,455)

(7,334)

Net loss

(21,315)

(13,856)

(68,491)

(35,603)

Net loss attributable to noncontrolling interest

(270)

—

(270)

—

Net loss attributable to XTI Aerospace, Inc.

(21,585)

(13,856)

(68,761)

(35,603)

Preferred stock dividends

(408)

(110)

(437)

(606)

Deemed dividends

—

(258)

—

(772)

Net Loss Attributable to Common Stockholders

(21,993)

(14,224)

(69,198)

(36,981)

Net loss per share - basic and diluted:

Continuing operations

(0.45)

(14.28)

(3.28)

(129.24)

Discontinued operations

(0.21)

(6.41)

(0.96)

(33.54)

Net loss

(0.66)

(20.69)

(4.24)

(162.78)

Weighted Average Shares Outstanding, Basic and

Diluted

32,744,968

687,471

16,337,782

227,193

Net loss per share from continuing and discontinued operations is calculated based on net loss attributable to common stockholders. Preferred stock dividends and deemed dividends are allocated to continuing and discontinued operations on a proportional basis.

XTI Aerospace, Inc. And Subsidiaries

Consolidated Balance Sheets

(In thousands)

(Unaudited)

As of

December 31,

2025

As of

December 31,

2024

Assets

Current Assets

Cash and cash equivalents

16,696

3,972

Accounts receivable, net of allowance for credit losses

12,093

—

Other receivables

—

513

Inventories

15,400

—

Prepaid expenses and other current assets

3,989

888

Current assets of discontinued operations

3,645

3,208

Total Current Assets

51,823

8,581

Property and equipment, net

385

Operating lease right-of-use asset, net

2,965

310

Intangible assets, net

9,338

284

Goodwill

11,544

—

Other assets

403

1,095

Non-current assets of discontinued operations

4,788

13,949

Total Assets

81,246

24,291

Liabilities

Current Liabilities

Accounts payable

5,212

5,190

Related party payables

—

Accrued expenses and other current liabilities

6,165

6,071

Accrued interest

391

522

Customer deposits

3,071

1,350

Warrant liability

22,561

—

Operating lease obligation, current

550

Short-term debt

7,931

2,657

Current liabilities of discontinued operations

1,722

1,492

Total Current Liabilities

47,603

17,421

Long Term Liabilities

Long-term debt

450

Operating lease obligation, noncurrent

2,427

231

Non-current liabilities of discontinued operations

322

—

Total Liabilities

50,802

17,717

Commitments and Contingencies

Representative and placement agent warrants, net of issuance costs

2,701

—

Stockholders' Equity

Preferred Stock

—

Series 4 Convertible Preferred Stock

—

Series 5 Convertible Preferred Stock

—

Series 9 Preferred Stock

—

1,331

Series 10 Convertible Preferred Stock

21,793

—

Common Stock

Additional paid-in capital

157,354

99,425

Accumulated other comprehensive income

881

(622)

Accumulated deficit

(162,323)

(93,562)

Total Stockholders' Equity

17,738

6,574

Noncontrolling interest

10,005

—

Total Equity

27,743

6,574

Total Liabilities, Mezzanine Equity and Equity

81,246

24,291

XTI Aerospace, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

For the Years Ended

December 31,

2025

2024

Cash Flows Used in Operating Activities

Net loss

(68,491)

(35,603)

Adjustment to reconcile net loss to net cash used in operating activities:

Depreciation and amortization

148

113

Amortization of intangible assets

387

622

Amortization of right-of-use asset

114

237

Non-cash interest expense, net

145

417

Stock-based compensation

12,046

4,121

Impairment of goodwill

9,895

—

Impairment of intangible assets

631

2,507

Provision for credit losses

2,129

—

Loss on conversion of note receivable to equity investment

—

2,630

Unrealized loss on equity investment

—

628

Change in fair value of convertible notes payable

—

(12,882)

Loss on extinguishment of debt

421

6,732

Warrant issuance expense

6,580

—

Change in fair value of warrant liability

596

281

Other

359

Changes in operating assets and liabilities:

Accounts receivable and other receivables

(1,993)

(18)

Inventories

2,618

611

Prepaid expenses and other current assets

4,572

922

Other assets

311

Accounts payable

(2,543)

346

Related party payables

(51)

—

Accrued expenses and other current liabilities

(3,696)

6,039

Accrued interest

116

259

Customer deposits

(271)

—

Deferred revenue

(167)

(435)

Operating lease obligation

(112)

(233)

Net Cash Used in Operating Activities

(36,611)

(22,307)

Cash Flows (Used in) Provided by Investing Activities

Purchase of property and equipment

(215)

(68)

Cash received in purchase of Inpixon

—

2,968

Investment in convertible note receivable

(2,000)

—

Acquisition of Drone Nerds, net of cash acquired

(16,547)

—

Purchase of intangible asset

—

(47)

Net Cash (Used in) Provided by Investing Activities

(18,762)

2,853

Cash Flows Provided by Financing Activities

Net proceeds from sale of common stock and pre-funded warrants via public offerings

57,051

—

Net proceeds from ATM stock offerings

1,667

22,213

Net proceeds from issuance of Series 10 Convertible Preferred Stock

22,750

—

Net proceeds from the exercise of equity classified warrants

—

Net proceeds from the exercise of liability classified warrants

4,061

—

Net proceeds from issuance of promissory notes

—

2,000

Net proceeds from loan from Inpixon (prior to merger)

—

1,012

Redemptions of Series 9 Preferred Stock

(1,427)

(795)

Repayments of debt

(15,892)

(868)

Net Cash Provided by Financing Activities

68,210

23,564

Effect of Foreign Exchange Rate on Changes on Cash

(23)

(10)

Net Increase in Cash and Cash Equivalents

12,814

4,100

Cash and Cash Equivalents – Beginning of year

4,105

Cash and Cash Equivalents – End of year

16,919

4,105

XTI Aerospace, Inc. and Subsidiaries

Reconciliation of Non-GAAP Financial Measures

(In thousands)

(Unaudited)

For the Three Months Ended

December 31, 2025

(in thousands)

GAAP

Drone Nerds

Pre-Acquisition

Activity

Transaction

Accounting

Adjustments

Proforma

Revenues

22,490

19,219

41,709

Cost of revenues

17,569

15,991

33,560

Gross profit

4,921

3,228

8,149

Operating expenses

19,900

1,254

(5,221)

15,933

Loss from operations

(14,979)

1,974

5,221

(7,784)

Other (expense) income

624

(263)

(180)

181

Net income (loss), before tax

(14,355)

1,711

5,041

(7,603)

Income tax benefit

Net income (loss)

(14,351)

1,711

5,041

(7,599)

Non-recurring transaction costs associated with Drone Nerds acquisition (less $5,442) and amortization of the purchase price allocation for intangible assets identified for Drone Nerds (plus $221)

Interest on the promissory notes issued as part of the Drone Nerds acquisition consideration

For the Three Months Ended

December 31, 2024

(in thousands)

GAAP

Drone Nerds

Pre-Acquisition

Activity

Transaction

Accounting

Adjustments

Proforma

Revenues

26,832

Cost of revenues

23,138

Gross profit

3,694

Operating expenses

5,549

2,695

221

8,465

Loss from operations

(5,549)

999

(221)

(4,771)

Other (expense) income

(3,903)

(191)

(180)

(4,274)

Net income (loss), before tax

(9,452)

808

(401)

(9,045)

Income tax benefit

Net income (loss)

(9,452)

808

(401)

(9,045)

Amortization of the purchase price allocation for intangible assets identified for Drone Nerds

Interest on the promissory notes issued as part of the Drone Nerds acquisition consideration

For the Twelve Months Ended

December 31, 2025

(in thousands)

GAAP

Drone Nerds

Pre-Acquisition

Activity

Transaction

Accounting

Adjustments

Proforma

Revenues

22,490

99,100

121,590

Cost of revenues

17,569

77,237

94,806

Gross profit

4,921

21,863

26,784

Operating expenses

47,742

11,311

(4,763)

54,290

Loss from operations

(42,821)

10,552

4,763

(27,506)

Other (expense) income

(10,225)

(601)

(720)

(11,546)

Net income (loss), before tax

(53,046)

9,951

4,043

(39,052)

Income tax benefit

Net income (loss)

(53,036)

9,951

4,043

(39,042)

Non-recurring transaction costs associated with Drone Nerds acquisition (less $5,442), Drone Nerds amortization (less $206), amortization of the purchase price allocation for intangible assets identified for Drone Nerds (plus $885)

Interest on the promissory notes issued as part of the Drone Nerds acquisition consideration

For the Twelve Months Ended

December 31, 2024

(in thousands)

GAAP

Drone Nerds

Pre-Acquisition

Activity

Transaction

Accounting

Adjustments

Proforma

Revenues

111,201

Cost of revenues

93,868

Gross profit

17,333

Operating expenses

29,667

13,401

(5,605)

37,463

Loss from operations

(29,667)

3,932

5,605

(20,130)

Other (expense) income

1,414

(952)

(4,264)

(3,802)

Net income (loss), before tax

(28,253)

2,980

1,341

(23,932)

Income tax provision

(16)

Net income (loss)

(28,269)

2,980

1,341

(23,948)

Non-recurring transaction costs associated with Drone Nerds acquisition (less $6,490) and amortization of the purchase price allocation for intangible assets for Drone Nerds (plus $885)

Interest on the promissory notes issued as part of the Drone Nerds acquisition consideration (less $744). The pro forma results for the year ended December 31, 2024 exclude nonrecurring merger-related transaction costs and losses recognized in connection with the conversion and extinguishment of convertible notes, including related fair value adjustments and inducement expenses, as these items are directly attributable to prior recapitalization transactions and do not have a continuing impact on the combined company (less $3,520).

SOURCE XTI Aerospace, Inc.