XTI Aerospace Reports Preliminary Revenue of $35.3 Million as Liquidity Needs Persist
Key Facts
XTI Aerospace on 22 October reported preliminary unaudited revenue of $35.3 million for the quarter ended 30 September 2026, as it continued efforts to address near-term liquidity needs. Interim Chief Executive Jeremy Schneiderman said revenue rose about 9% from the previous quarter, driven by continued demand for enterprise drone solutions. Second-quarter revenue was $32.4 million, excluding the Inpixon business classified as discontinued operations, according to the company's disclosure for that period. The preliminary revenue figures remain subject to completion of financial closing procedures and review by the independent accountant, and actual results could differ materially. Second-quarter gross profit was $5.6 million, also excluding Inpixon. That equated to a gross margin of approximately 17% of revenue for the period, according to the previous quarter's earnings disclosure.
Management attributed revenue growth to demand for drone solutions and an expanded product offering for public safety, government, energy, infrastructure, agriculture and commercial markets. The expansion follows the company's acquisition of Drone Nerds on 10 November 2025, according to the announcement of the deal's completion. Total disclosed acquisition consideration was about $40 million at closing. In another step toward focusing its business on drones, the company sold its Inpixon business effective 3 February 2026. Sale consideration was €4.64 million, equivalent to about $5.48 million, according to the divestment announcement. The company classified the divested business as discontinued operations and excluded it from second-quarter revenue and gross profit.
On cash, preliminary operating cash outflows from ADS operations and corporate headquarters averaged about $1.1 million a month during the third quarter of 2026, according to the company. That average fell about 42% from the second quarter, with Drone Nerds operations excluded from the measure. Preliminary unrestricted cash and cash equivalents stood at $5.1 million at the end of September 2026. Management said it continues to address near-term liquidity needs, including restructuring acquisition-related promissory notes. The company had warned in its previous quarter's earnings disclosure of substantial doubt about its ability to continue as a going concern. It nevertheless set the fourth quarter of 2026 as its target for achieving positive net cash flow from operating activities.
The operating developments coincided with leadership changes and an internal review that the company said had been completed. Scott Pomeroy resigned as chairman, chief executive and a board member, effective 17 August 2026, according to the company's filing with the U.S. Securities and Exchange Commission. When announcing the completion of the internal review, the company said "no financial misstatement was identified." A committee of independent board members oversaw the review, assisted by independent outside legal counsel. Following its completion, the company intends to improve its governance framework, policies and procedures under the board's oversight.
For the full year, the company is targeting revenue of between $125 million and $130 million in 2026, according to guidance in its second-quarter earnings disclosure. The outlook depends on continued availability of the asset-backed credit facility. It also assumes no further material changes in tariff policy. On shareholder communications, the company intends to resume investor calls alongside the release of its third-quarter 2026 results. It did not hold a call alongside the previous quarter's earnings announcement.