Swarmer Expects Ratel Revenue of $35 Million to $40 Million in Fourth Quarter
Key Facts
Swarmer management expects the Ratel unit to generate revenue of $35 million to $40 million in the fourth quarter of 2026, with an operating margin of 13% to 17%, according to a company statement issued on November 10. The forecast puts Ratel at the center of Swarmer’s operational update, while the deal to bring the unit into the company remains pending. Management said the figures are estimates and targets, not guarantees of future performance. The outlook comes as Swarmer redirects its focus toward selling integrated defense solutions while continuing to sell software. The company’s shares closed at $8.77 in the November 10 session, according to EL7 data.
According to preliminary, unaudited figures announced by Swarmer, Ratel generated revenue of $42.1 million in the first nine months of 2026. The total included $32.5 million in the third quarter, of which $14.9 million was in September. The order backlog was also about $65.1 million as of September 30, under previously signed government contracts. The company said Ratel management prepared the figures and Swarmer’s independent accountant had not reviewed or audited them. It added that they were not prepared in accordance with U.S. generally accepted accounting principles and may change, making them preliminary indicators of activity rather than audited results.
The chief executive said the company would increase its focus on direct sales to governments, including the Ukrainian government and others, while continuing software sales to businesses as a source of revenue. He added that all Swarmer and Ratel revenue to date, as well as Ratel’s current forecast, is tied to Ukraine. Management says it sees an opportunity to bring technologies tested in Ukraine to allied countries, and that direct government sales could enable it to pursue larger opportunities. The company also identified three areas for expansion: ground vehicles, air defense and integrated autonomous drone packages. U.S. chief executive Alex Fink said the company is shifting from an independent software provider to a supplier of end-to-end integrated defense solutions.
Ratel revenue is not included in Swarmer’s reported third-quarter results because the acquisition remained pending when the results were issued. Swarmer reported revenue of $25,554 in the third quarter, compared with $35,771 in the same period of 2025. Its net loss was about $9.3 million, versus about $3.4 million a year earlier. Operating expenses rose to about $9.4 million from $0.8 million, including about $1.7 million in non-cash stock-based compensation, compared with $18,000 in the third quarter of 2025. Cash and cash equivalents were about $37.3 million as of September 30, up from $25.3 million as of June 30; the company attributed the increase mainly to proceeds from its equity line of credit.
Swarmer signed a definitive agreement to acquire Ratel on September 9, and shareholders approved the share issuance related to the deal on November 2. The company expects to complete the acquisition in November, subject to satisfaction of the remaining conditions. The agreement includes performance-based earnout payments tied to future revenue and operating income targets. Swarmer also owns a 20% stake in Vectus, which has indicated an intention to buy at least 40 systems in the first year after production begins and at least 80 in the second year. That intention remains subject to definitive agreements and customary approvals; it does not constitute binding orders or recognized revenue.
On product development, the chief executive said the company believes it can complete an integrated hardware and software package in the first quarter of 2027. This is part of Swarmer’s effort to expand its offering from software to defense solutions that combine multiple components. The company said its autonomy software has supported more than 100,000 real-world combat missions in Ukraine since April 2024. Management links this experience to its efforts to expand direct sales to governments. Ratel’s operating forecast remains separate from Swarmer’s published results until the acquisition is completed and the unit’s performance is included in reporting.