Swarmer Posts $9.3 Million Quarterly Loss as Revenue Falls
Key Facts
Swarmer reported on November 10 results for the third quarter ended September 30, 2026, posting a net loss of about $9.3 million, compared with about $3.4 million in the same period of 2025, according to a filing with the U.S. Securities and Exchange Commission. The results show a widening loss alongside lower revenue and higher operating expenses. Revenue was $25,554, versus $35,771 a year earlier. The company said revenue mainly reflected support services under existing customer agreements. Gross loss also widened to $47,093 from $9,670 in the third quarter of 2025.
Operating expenses were about $9.4 million in the third quarter, compared with $0.8 million in the same period a year earlier, according to the filing. The period's expenses included about $1.7 million in noncash stock-based compensation, versus $18,000 in the third quarter of 2025. This came alongside a decline in quarterly revenue, which remained tied mainly to support services for existing customers. In an earlier filing on first-half results, the company said most of its historical losses were related to research and development costs. It also noted at the time higher sales and administrative expenses, including stock-based compensation, professional services and preparations to operate as a public company.
Cash and cash equivalents totaled about $37.3 million on September 30, 2026, compared with $25.3 million on June 30, the company said. Swarmer attributed the increase mainly to proceeds from an equity line of credit. The company posted a net loss of $7.3 million in the second quarter of 2026, versus $1.6 million in the second quarter of 2025. For the first half, it recorded a loss of $11.8 million, compared with $2.3 million in the same period. SWMR shares closed at $8.97 on November 9, according to EL7 data.
The third-quarter results do not include Ratel's financial performance, as its acquisition remains pending, according to Swarmer's filing. The company signed a definitive agreement to acquire Ratel on September 9, 2026, and said it expects to complete the transaction in November, subject to the remaining conditions being met. It said Ratel's unaudited preliminary revenue was $42.1 million in the first nine months of 2026, including $32.5 million in the third quarter and $14.9 million in September. Ratel's management prepared these figures, and Swarmer has neither reviewed nor audited them. In an earlier announcement of the transaction, Swarmer said the consideration includes a mix of cash and stock worth up to $224 million upon achievement of all milestones, with completion subject to conditions and approvals.
Swarmer said in its transaction announcement that Ratel secured contracts totaling $86 million during 2026 and was in contractual discussions with several NATO countries under the "Build With Ukraine" initiative. Alex Fink, the company's chief executive in the United States, described the deal as part of a planned shift from an independent software provider to a supplier of integrated defense solutions spanning air and ground systems. The deal reflects the company's expansion beyond its current software business, but was not included in the reported third-quarter results. Ratel's revenue figures in the filing remain preliminary and unaudited. As a result, consolidated financial comparisons will depend on completion of the transaction and inclusion of the acquired company's results in subsequent periods.
Looking ahead, Swarmer's management said it expects Ratel to generate revenue of between $35 million and $40 million in the fourth quarter of 2026, with operating margins of between 13% and 17%. The company said these figures are estimates and not a guarantee of future performance. Management is scheduled to hold a third-quarter results call on November 10, 2026, at 5 p.m. Eastern time, followed by a question-and-answer session, according to the filing. The reported third-quarter results remain those of Swarmer before accounting for Ratel's performance, while inclusion of the latter depends on completion of the acquisition. The company announced on October 28 that the call would be held on November 10.