Swarmer Stock price
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Key metrics
📘 Market Capitalization
📈 What is it?
Market capitalization shows how much a company is currently worth on the stock market.
🧮 How is it calculated?
🏛️ Why is it important?
It helps classify companies by size (Large, Mid, Small Cap) and indicates their market presence and relative stability.
🧮 Calculation
🎯 What does this mean for investors?
- Large-cap companies tend to be more stable, often pay dividends, but may grow more slowly.
- Smaller firms may offer higher growth potential but come with more volatility.
- Market capitalization is a useful indicator of company size — but not a measure of whether a stock is undervalued or overvalued.
📘 Enterprise Value (EV)
📈 What is it?
Enterprise Value represents the total cost to acquire a company — including its debt and excluding its cash reserves.
🧮 How is it calculated?
(= Market Cap + Net Debt)
🏛️ Why is it important?
EV gives a more complete picture of a company's value than market cap alone and is used in key valuation ratios like EV/FCF or EV/Sales.
🧮 Calculation
🎯 What does this mean for investors?
- Enterprise Value shows the true cost of buying a company, including all financial obligations.
- It is more accurate than just looking at market cap, especially when comparing companies with different levels of debt or cash.
- Professional investors prefer EV-based multiples because they better reflect the company’s full financial footprint.
📘 Net Debt
📈 What is it?
Net Debt shows how much debt remains after subtracting a company’s available cash reserves.
🧮 How is it calculated?
🏛️ Why is it important?
It indicates how dependent a company is on borrowed money and how easily it can service its debt in the short term.
🧮 Calculation
🎯 What does this mean for investors?
- Low or negative net debt signals financial strength and flexibility.
- Companies with strong cash positions are better positioned in crises.
- High net debt increases financial risk — especially in environments with rising interest rates or economic downturns.
📘 Cash
📈 What is it?
Cash represents all liquid assets a company can access immediately — including cash, bank deposits, and short-term investments.
🧮 How is it calculated?
🏛️ Why is it important?
It reflects a company’s financial flexibility and resilience — enabling investments, buybacks, or buffer in downturns.
🧮 Calculation
🎯 What does this mean for investors?
- A strong cash position means greater room for maneuver and crisis resistance.
- Cash-rich companies can invest, pay down debt, or repurchase shares.
- But excess idle cash might indicate a lack of growth opportunities.
📘 Shares Outstanding
📈 What is it?
Shares outstanding represent the total number of a company’s shares currently held by investors — excluding treasury stock.
🧮 How is it calculated?
🏛️ Why is it important?
It’s the basis for key metrics like Earnings Per Share (EPS), Market Capitalization, or the Price/Earnings ratio (P/E).
🧮 Calculation
🎯 What does this mean for investors?
- Fewer shares in circulation typically increase earnings per share — making each share more valuable.
- Share buybacks reduce the number of shares and boost per-share metrics.
- Issuing new shares does the opposite — diluting shareholder value and lowering per-share figures.
📘 Price-to-Earnings Ratio (P/E)
📈 What is it?
The P/E ratio shows how many times a company's earnings per share are reflected in its current share price — in other words, how "expensive" the stock appears relative to its profits.
🧮 How is it calculated?
🏛️ Why is it important?
The P/E ratio is one of the most widely used valuation metrics. It helps investors assess whether a stock appears cheap or expensive compared to its earnings power.
🎯 What does this mean for investors?
- A low P/E may indicate undervaluation — or signal underlying issues.
- A high P/E may reflect strong growth expectations — or an overvalued stock.
📘 Price-to-Sales Ratio (P/S)
📈 What is it?
The P/S ratio shows how much investors are paying for $1 of the company’s revenue – regardless of profitability.
🧮 How is it calculated?
🏛️ Why is it important?
P/S is especially useful for evaluating growth companies or businesses not yet profitable. It reflects how the market values the company’s sales.
🧮 Calculation
Market Cap = $382.97m | Estimated Revenue = $4.32m
🎯 What does this mean for investors?
- A low P/S may indicate undervaluation — or low profitability.
- A high P/S can reflect strong growth expectations — or excessive optimism.
- Especially helpful when evaluating companies where profits are low, volatile, or negative.
📘 Enterprise Value to Sales (EV/Sales)
📈 What is it?
EV/Sales shows how much investors are paying for $1 of revenue — considering not just equity, but also debt and cash. It’s the capital structure–adjusted version of the P/S ratio.
🧮 How is it calculated?
🏛️ Why is it important?
It’s ideal for comparing companies with different levels of debt. It reflects a company's true cost relative to its revenue.
🧮 Calculation
Enterprise Value = $357.68m | Forward Revenue = $4.32m
🎯 What does this mean for investors?
- EV/Sales allows for capital structure–neutral company comparisons.
- A lower ratio may indicate undervaluation; a higher one may signal strong growth expectations or overvaluation.
- Especially helpful when evaluating high-growth companies with low or negative earnings.
📘 Enterprise Value to Free Cash Flow (EV/FCF)
📈 What is it?
EV/FCF shows how many years it would take for a company to "pay back" its enterprise value using its free cash flow.
🧮 How is it calculated?
🏛️ Why is it important?
It focuses on real cash generation, ignoring accounting noise — ideal for assessing profitability and value based on liquidity, not earnings.
🎯 What does this mean for investors?
- A low EV/FCF may signal undervaluation and strong cash generation.
- A high EV/FCF might reflect weak recent cash flow or aggressive growth expectations.
- Best suited for stable, mature businesses with predictable free cash flows.
📘 Price-to-Book Ratio (P/B)
📈 What is it?
The P/B ratio compares a company’s market value to its book value — showing how much investors are paying for each dollar of net assets.
🧮 How is it calculated?
🏛️ Why is it important?
P/B is commonly used for asset-heavy industries like banks or industrials. It helps assess whether a stock is trading above or below its net asset value.
🧮 Calculation
🎯 What does this mean for investors?
- A P/B below 1 may signal undervaluation — or weak profitability.
- A P/B above 1 implies the market expects future value creation (e.g., brand, IP, growth).
- Best used for companies with tangible assets and strong balance sheets.
📘 Equity Ratio
📈 What is it?
The equity ratio indicates what portion of a company’s total assets is financed by shareholders’ equity – in other words, how much it relies on its own capital.
🧮 How is it calculated?
🏛️ Why is it important?
A high equity ratio reflects financial strength and stability, especially during downturns. It’s a key indicator of a company’s solvency and long-term risk profile.
🧮 Calculation
🎯 What does this mean for investors?
- Companies with high equity ratios are generally more resilient and less dependent on external debt.
- Low equity ratios can signal higher risk or aggressive financial strategies.
- Important: Always assess the equity ratio in combination with the return on equity (ROE). This shows not just how stable the company is – but also how efficiently it uses shareholder capital.
📘 Return on Equity (ROE)
📈 What is it?
Return on equity (ROE) shows how efficiently a company uses its shareholders’ equity to generate profit. In other words: how much net income is earned per dollar of equity.
🧮 How is it calculated?
🏛️ Why is it important?
ROE is a core profitability metric. It helps investors understand whether a company delivers attractive returns on the capital provided by its shareholders.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROE indicates that the company is using its capital efficiently and profitably.
- It’s especially meaningful for capital-intensive businesses or firms with high equity bases.
- Important: A very high ROE can also result from high debt levels – always interpret it alongside the equity ratio to assess financial health.
📘 Return on Capital Employed (ROCE)
📈 What is it?
ROCE measures how efficiently a company generates profits from its total capital – including both equity and interest-bearing debt.
🧮 How is it calculated?
It evaluates the return on all capital employed, regardless of how it’s financed.
🏛️ Why is it important?
ROCE is ideal for comparing companies with different financing structures. It shows how well management uses capital to create value for both shareholders and creditors.
🎯 What does this mean for investors?
- A high ROCE means the company uses its capital efficiently – regardless of whether it's funded by debt or equity.
- The higher the ROCE compared to peers, the more value the company creates with its invested capital.
- Especially relevant for capital-intensive sectors like industrials, energy, or infrastructure.
📘 Return on Invested Capital (ROIC)
📈 What is it?
ROIC measures how efficiently a company generates returns from the capital invested in its core operations – regardless of whether the capital comes from equity or debt.
🧮 How is it calculated?
- NOPAT = Net Operating Profit After Taxes
- Invested Capital = Operating assets minus non-interest-bearing liabilities
🏛️ Why is it important?
ROIC is one of the most accurate indicators of capital efficiency. Unlike return on equity, it is not distorted by leverage and shows how much value is created for all capital providers.
🎯 What does this mean for investors?
- A high ROIC shows how effectively a company uses the capital that is truly invested in its core operations.
- Unlike ROCE, ROIC focuses only on the capital that is actively used to run the business – and that requires a return (i.e. interest-bearing).
- Especially useful when comparing companies with large amounts of excess cash or non-interest-bearing liabilities – giving a more realistic picture of capital efficiency.
📘 Leverage Ratio (Debt-to-Equity)
📈 What is it?
The leverage ratio indicates how much a company relies on interest-bearing debt (such as loans and bonds) relative to its shareholders’ equity.
🧮 How is it calculated?
🏛️ Why is it important?
This ratio helps assess a company’s financial structure and risk profile. High leverage can enhance returns – but also increases exposure to interest rate changes and financial stress.
🧮 Calculation
🎯 What does this mean for investors?
- A low leverage ratio signals financial strength and independence.
- A higher ratio can improve returns in good times but increases risk during downturns or rising interest rate periods.
- 👉 Always interpret in the context of industry, capital intensity, and interest rate environment.
📘 Revenue
📈 What is it?
Revenue shows how much a company earns in total from selling its products and services – the gross income before any costs are deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Revenue is one of the key figures to assess a company’s size, market position, and growth potential.
🧮 Calculation
🎯 What does this mean for investors?
- Growing revenue indicates rising demand and can be an early signal of future earnings growth.
- Comparing actual and expected revenue reveals trends in the market environment and analyst sentiment.
- Note: Strong revenue alone isn’t enough – margins and profitability matter just as much.
📘 EBITDA
📈 What is it?
EBITDA stands for “Earnings Before Interest, Taxes, Depreciation, and Amortization.” It reflects a company’s operating profit before the effects of financing, taxes, and accounting depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
EBITDA is widely used to evaluate a company’s operating performance – especially across capital-intensive sectors or international comparisons.
🎯 What does this mean for investors?
- A high or growing EBITDA indicates strong operational profitability – independent of taxes, interest, or accounting methods.
- It’s especially useful for comparing companies across sectors or geographies.
- Important: EBITDA is not a net income figure – it excludes key costs like depreciation and interest.
📘 EBIT
📈 What is it?
EBIT stands for “Earnings Before Interest and Taxes.” It reflects a company’s operating profit after depreciation, but before interest and tax expenses.
🧮 How is it calculated?
🏛️ Why is it important?
EBIT is a core profitability metric that shows how well the company performs in its main business operations – independent of capital structure and tax environment.
🎯 What does this mean for investors?
- A high EBIT indicates strong profitability from the company’s core business – before financial and tax effects.
- It allows better comparison between companies with different debt levels or tax structures.
- Compared to EBITDA, EBIT already accounts for depreciation and reflects capital intensity more clearly.
📘 Net Income
📈 What is it?
Net income is the company’s total profit – the amount left after all expenses, taxes, interest, and depreciation have been deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Net income is the most comprehensive measure of a company’s profitability – showing how much actual profit remains after all business and financing costs.
🎯 What does this mean for investors?
- Growing net income indicates that the company is managing all of its costs efficiently.
- It directly influences valuation metrics like P/E ratio and the company’s dividend capacity.
- Over time, net income trends reveal how resilient and profitable the business model really is.
📘 Free Cash Flow (FCF)
📈 What is it?
Free Cash Flow shows how much actual cash remains after a company covers its operating expenses and capital expenditures.
🧮 How is it calculated?
🏛️ Why is it important?
FCF reflects a company’s real financial strength – regardless of accounting profits. It shows how much flexibility a company has for dividends, share buybacks, or debt reduction.
🎯 What does this mean for investors?
- High free cash flow means the company generates real, usable cash – independent of reported net income.
- It’s often the most reliable base for sustainable dividends and buybacks.
- Declining FCF can be an early warning sign – even when profits appear stable.
📘 Revenue Growth
📈 What is it?
Revenue growth shows how much a company’s sales have changed compared to the previous year – both on a trailing basis (TTM) and based on forward projections.
🧮 How is it calculated?
Forward = (Expected revenue ÷ Revenue in prior year − 1) × 100
Forward growth is based on analyst estimates for the current fiscal year.
🏛️ Why is it important?
Rising revenue signals growing demand, business expansion, and market share gains – especially important for growth-oriented companies.
🧮 Calculation
🎯 What does this mean for investors?
- Growth is the engine of long-term value creation – especially in tech and growth sectors.
- What matters is not just current growth, but its sustainability.
- Forward projections reflect whether analysts expect continued momentum – or a slowdown.
📘 EBITDA Growth
📈 What is it?
EBITDA growth shows how much a company’s operating profit (before interest, taxes, depreciation, and amortization) has increased or decreased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBITDA ÷ EBITDA from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
Growing EBITDA indicates improving operational profitability – regardless of financing or accounting effects.
🎯 What does this mean for investors?
- Strong EBITDA growth signals operational efficiency and scalability – especially during growth phases.
- EBITDA growth can be an early indicator of margin and earnings expansion – but should be assessed alongside revenue and EBIT.
📘 EBIT Growth
📈 What is it?
EBIT growth shows how much a company’s operating profit (after depreciation, but before interest and taxes) has increased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBIT ÷ EBIT from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
EBIT growth is a direct indicator of a company’s business performance – taking into account capital intensity through depreciation.
🎯 What does this mean for investors?
- Rising EBIT signals improving operating profitability – even after accounting for depreciation.
- It’s especially important for evaluating companies with significant capital expenditures.
- Combined with revenue and EBITDA growth, EBIT growth provides a well-rounded view of operational progress.
📘 Net Income Growth
📈 What is it?
Net income growth shows how much a company’s bottom-line profit has increased or decreased compared to the previous year – both on a trailing basis (TTM) and based on analyst projections.
🧮 How is it calculated?
Forward = (Expected net income ÷ Net income from prior year − 1) × 100
The forward estimate reflects analysts’ expectations for the current fiscal year.
🏛️ Why is it important?
Net income is the ultimate measure of profitability. Growing net income signals stronger efficiency, cost control, and sustainable earnings power.
🎯 What does this mean for investors?
- Stronger net income boosts valuation, dividend potential, and investor confidence.
- If profits stall while revenue grows, it may signal margin pressure.
📘 Free Cash Flow Growth
📈 What is it?
Free cash flow (FCF) growth shows how a company’s available cash – after covering operating expenses and capital expenditures – has changed compared to the previous year.
🧮 How is it calculated?
🏛️ Why is it important?
Free cash flow reflects real financial strength. Growing FCF indicates more flexibility for dividends, share buybacks, and reinvestment.
🎯 What does this mean for investors?
- Declining FCF may point to rising investments, increasing costs, or weaker operating performance.
- Especially for dividend investors, FCF growth is critical – since dividends are paid from actual available cash.
- A negative trend isn't always bad, but it deserves closer attention.
📘 Gross Margin
📈 What is it?
Gross margin shows how much of a company’s revenue remains after deducting the direct costs of goods sold (like materials and production). It represents the company’s “raw profit” before fixed costs, taxes, and interest.
🧮 How is it calculated?
Or simply: Gross Margin = Gross Profit ÷ Revenue × 100
🏛️ Why is it important?
Gross margin indicates how efficiently a company can produce or procure what it sells. It is a key measure of product-level profitability and pricing power.
🎯 What does this mean for investors?
- A high gross margin suggests strong pricing power and efficient production.
- Falling margins may signal rising input costs or competitive pressure.
- Compared to peers, gross margin offers insights into the quality of a business model.
📘 EBITDA Margin
📈 What is it?
The EBITDA margin shows how much of a company’s revenue remains as operating profit before interest, taxes, depreciation, and amortization.It reflects operating efficiency without being distorted by financing or accounting factors.
🧮 How is it calculated?
🏛️ Why is it important?
The EBITDA margin reveals how much operating income a company generates per dollar of revenue – independent of capital structure and tax effects.
🎯 What does this mean for investors?
- A high EBITDA margin reflects strong core profitability – before accounting distortions.
- It allows for effective comparisons across companies and sectors.
- A stable or growing margin signals efficient cost control and business scalability.
📘 EBIT Margin
📈 What is it?
The EBIT margin shows what percentage of revenue remains as operating profit after depreciation but before interest and taxes.
🧮 How is it calculated?
🏛️ Why is it important?
The EBIT margin reflects a company’s core profitability while accounting for capital intensity (e.g. machinery, infrastructure). It’s especially useful for comparing businesses with different levels of depreciation.
🎯 What does this mean for investors?
- A high EBIT margin shows that the company remains efficient even after factoring in depreciation.
- It’s especially relevant for capital-intensive industries.
- Stable or rising EBIT margins over time are a strong indicator of pricing power and business quality.
📘 Net margin
📈 What is it?
Net margin shows how much of a company’s revenue remains as bottom-line profit after deducting all costs, interest, taxes, and depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
Net margin reflects a company’s overall efficiency – across operations, financing, and taxation. It shows how much actual profit is generated from each dollar of revenue.
🎯 What does this mean for investors?
- A high net margin means the company is not only strong operationally but also manages financing and taxes efficiently.
- Peer comparisons reveal business quality and competitiveness.
- Declining margins despite revenue growth can be a red flag for rising costs or inefficiencies.
📘 Free cash flow margin
📈 What is it?
The free cash flow (FCF) margin shows how much of a company’s revenue remains as actual free cash after covering all operating expenses and capital expenditures.
🧮 How is it calculated?
🏛️ Why is it important?
This margin reflects the true liquidity generated by the business – independent of accounting rules or depreciation. It’s especially relevant for dividends, buybacks, and reinvestment decisions.
🎯 What does this mean for investors?
- A high FCF margin means a company consistently generates strong cash flow.
- It’s a positive signal for financial stability and shareholder returns.
- The long-term trend is key – a declining margin may indicate rising investments or weakening operating efficiency.
📘 Earnings per share (EPS)
📈 What is it?
Earnings per Share (EPS) shows how much profit is attributable to a single share – and is one of the most important metrics for evaluating a company's performance.
🧮 How is it calculated?
The diluted share count reflects potential new shares that could be issued through options, convertible bonds, or other rights.
🏛️ Why is it important?
EPS is the basis for many key valuation metrics like P/E ratio, PEG ratio, or payout ratio. It enables comparisons of profitability across companies, regardless of their size.
🎯 What does this mean for investors?
- EPS captures per-share profitability and is especially useful for comparisons over time or with analyst estimates.
- Rising EPS may signal consistent growth or share buybacks.
- Important: Always use diluted EPS for more realistic valuations – especially in companies with stock-based compensation.
📘 Free cash flow per share (FCF per share)
📈 What is it?
Free Cash Flow per Share shows how much free cash flow a company generates per outstanding share – after investments, but before dividends or debt repayments.
🧮 How is it calculated?
Free cash flow is calculated as operating cash flow minus capital expenditures (CapEx).
🏛️ Why is it important?
FCF per Share reveals how much real cash is available per share – useful for dividends, buybacks, or reducing debt. Unlike net income, free cash flow is harder to manipulate and often seen as a more reliable metric.
🧮 Calculation
🎯 What does this mean for investors?
- High FCF per share signals strong financial flexibility.
- It shows how much capital the company can effectively reinvest or return to shareholders.
- Particularly relevant for dividend payers and capital-efficient businesses.
📘 Short interest
📈 What is it?
Short interest indicates how many shares of a company are currently sold short – that is, borrowed and sold by investors who expect the price to decline.
🧮 How is it calculated?
It reflects the percentage of a company’s shares that are being shorted relative to the total shares available.
🏛️ Why is it important?
Short interest serves as a sentiment indicator: A high value may signal skepticism or bearish expectations – but also increases the potential for a short squeeze if prices rise unexpectedly.
🧮 Calculation
🎯 What does this mean for investors?
- Low short interest usually indicates market confidence in the company.
- High short interest can be a warning sign – or an opportunity if sentiment shifts.
- Especially relevant in volatile markets or ahead of key earnings releases.
📘 Employees
📈 What is it?
The employee count shows how many people a company employs worldwide – offering insights into its size, structure, and business model.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess operational scale, labor intensity, and cost structure. Combined with revenue and profit, it enables key metrics like revenue per employee or productivity.
🎯 What does this mean for investors?
- A high headcount can signal operational complexity – but also significant growth capacity.
- Revenue per employee is a key indicator of efficiency.
- Especially useful for comparing tech, industrial, or service-heavy companies.
📘 Turnover per employee
📈 What is it?
Revenue per employee indicates how much revenue a company generates on average per employee – a key measure of efficiency and productivity.
🧮 How is it calculated?
The employee count is typically taken from the most recent annual report.
🏛️ Why is it important?
This metric helps compare business models – especially between labor-intensive and technology-driven companies. A high value suggests automation, operational efficiency, or strong value creation per head.
🎯 What does this mean for investors?
- A high revenue per employee indicates a scalable and margin-strong business model.
- A low figure may reflect labor-intensive operations or lower value-add.
- Especially helpful when comparing tech companies to industrial or service sectors.
Swarmer Stock Analysis
Analyst Opinions
7 Analysts have issued a Swarmer forecast:
Analyst Opinions
7 Analysts have issued a Swarmer forecast:
Swarmer Events
Past Events
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AUG
13
Q2 2026 Earnings Call
about one month ago
|
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MAY
13
Q1 2026 Earnings Call
4 months ago
|
StocksGuide Free
Swarmer — Q2 2026 Earnings Call
1. Management Discussion
Good afternoon. Welcome to the Swarmer, Inc. Second Quarter 2026 Earnings Conference Call.
Joining us for today's presentation are the company's President and U.S. CEO, Alex Fink; and Chief Financial Officer, Brooks Ensign. [Operator Instructions]
Before we begin, I want to remind everyone that today's call will include forward-looking statements within the meaning of the federal securities laws. These statements include, among others, statements regarding Swarmer strategy, market opportunity, customer engagement, product development, technology integrations, expansion into new markets, future revenue opportunities, expected customer mix, potential deployments and the anticipated benefits of the company's relationships, memorandum of understanding, partnerships and commercial initiatives.
Forward-looking statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. Additional information about factors that could cause actual results to differ is included in the company's earnings release issued today and in the company's filings with the Securities and Exchange Commission including the risk factors described in those filings.
The company undertakes no obligation to update forward-looking statements, except as required by law. Finally, I would like to remind everyone that this conference call is being webcasted, and the recording will be made available for replay on the company's Investor Relations website.
In addition to the webcast, the company has posted a press release that accompanies these results which can also be found on the Investor Relations website.
I will now turn the call over to Swamer's President and U.S. CEO, Alex Fink, for his comments. Sir, please proceed.
Thank you, operator, and thank you, everyone, for joining us. The second quarter of 2026 marked our first full quarter as a public company and an important period of progress across the business. We successfully expanded our customer base, advanced deployments across multiple unmanned platforms and continued investing in the people, technology and partnerships that we believe will support our next phase of growth.
From a broader perspective, our investment thesis remains unchanged. We continue to believe the defense and security industries are in the early stages of a fundamental transition towards autonomous and collaborative systems. Millions of drones are expected to be produced annually. Yet the challenge is no longer simply manufacturing hardware. The challenge is coordinating, controlling and scaling large numbers of autonomous platforms operating in complex environments. That is the problem Swarmer was built to solve.
Our software serves as the intelligence layer that enables one operator to coordinate large numbers of autonomous systems in the real time. Because we are platform-agnostic, our objective is not to build a drone. Our objective is to become the software layer that powers autonomous systems across air, land and maritime domains.
What makes our platform unique is that it continues to learn from real-world operations. Since April of 2024, Swarmer technology has supported more than 100,000 combat missions in Ukraine. Those missions generate telemetry, sensor information and operational feedback that allows us to refine performance and improve our AI and autonomy capabilities over time.
We believe this real-world data advantage is difficult to replicate and serves as a meaningful differentiator as autonomy becomes increasingly important.
During the quarter, we continued to make progress in implementing this strategy. Perhaps the most visible example was the expansion of our SkyKnight program. As announced during the quarter, our customer expanded the original agreement adding approximately $1 million of contracted license value, increasing the potential value of the combined contract to approximately $14.2 million if all options are exercised. Importantly, SkyKnight is not one of the largest drone manufacturers operating in Ukraine today. By our estimates, there are 20 or more drone companies in Ukraine alone who are currently shipping higher volumes than SkyKnight and yet the single opportunity accounted for a contract of $3.9 million that could grow to $14.2 million if all options are exercised.
We believe that this fact highlights the size of the opportunity in front of us. If a manufacturer of this scale can generate a softer opportunity of this magnitude, we believe there are many additional manufacturers and platforms that could represent meaningful future opportunities as autonomy adoption continues to increase.
Before moving on, I'd like to briefly address the accounting treatment of the expanded SkyKnight program as it impacted our reported revenue for the quarter. As disclosed in today's earnings release, we received $1.4 million during the quarter under the SkyKnight program, upon delivery of the software licenses to the customers. However, under the applicable accounting treatment, some of these amounts were not recognized as revenue and were instead recorded as an advance on our balance sheet. Importantly, this accounting treatment does not change the underlying commercial significance of the program. The licenses were delivered and the wire transfer was received. We continue to believe that SkyKnight demonstrates a scalable model that can be replicated across additional manufacturers and platforms, creating future opportunities for software licensing revenue as adoption of autonomy continues to expand.
Beyond individual customer wins, we continue to strengthen the ecosystem around our platform, which we believe is a key driver of long-term adoption and growth. Each relationship addresses a different part of the value chain, whether that's computing hardware, data acquisition, interoperability, platform integration or operational deployment. For example, our partnership with Oak Grove Technologies demonstrate successful integration of Swarmer software on a proven U.S. platform from a company-based near Fort Bragg that is deeply embedded in the special operations community.
Oak Grove is also well known as a training facility and provides courses to operators on things like drones. So a partnership with them helped us cover the awareness layer and ensuring that operators are exposed to the existence of Swarmer's advanced autonomy and the possibilities it brings.
Our collaboration with Lantronix is aimed at creating a next-generation compute platform for small unmanned systems. Most unmanned systems in Ukraine, if they require any level of autonomy use either Raspberry pie on the low end or NVIDIA Jetson on the high end. There is no good option in between. We see an opportunity to create a wedge in the market by owning the compute platform that could become the industry standard for autonomous drones and by ensuring that everyone who uses this platform for the compute needs will also get Swarmer's operating system built in, and we'll be able to upgrade to full autonomy at the click of a button.
Our cooperation with Molfar gives us access to a large database of open source intelligence data that can be used to improve our models and our cooperation with Brightline, which has already been and used by the special operations community in the U.S. allows us to gain access to operational data from a variety of unmanned platforms, even if the manufacturers of these platforms did not choose to integrate with us yet.
We believe there is a data flywheel of success. Companies that get deployed more, gather more data, use this data to train better models and therefore, get deployed more because the models work better. We are already benefiting from this flywheel. But now with these additional sources of high-quality data, we can move even faster and train our models on data gathered by others too.
Collectively, these relationships expand the reach of our software, increase the number of platforms we can support and create additional opportunities to scale adoption over time. We believe this ecosystem approach positions Swarmer to participate in a much larger portion of the autonomous systems market than would be possible through any single platform or program alone.
While partnerships remain an important part of our growth strategy, we are also increasingly evaluating opportunities to invest and acquire and help scale complementary defense technologies that have been proven in real-world operational environments.
As our Chairman, Eric Brent recently discussed in a shareholder letter, many of the most innovative defense companies in the world are being built under demanding battlefield conditions, yet often like capital, commercial infrastructure, and international reach needed to scale globally. We believe access to capital, strategic support and distribution channels can be just as valuable as the technology itself.
Our objective is not simply to expand Swarmer software footprint but to build a broader platform that helps identify, accelerate and commercialize proven defense technologies while creating long-term value for shareholders.
Last but not least, as you'll hear from Brooks in a few minutes, we have raised over $26 million through our equity line of credit since it was announced. From a practical standpoint, we believe these additional resources may help us to explore opportunities and move faster when they arise. In accordance with the vision articulated by our Chairman, Eric Brent, in his letter to shareholders this quarter. Conceptually, we also believe it shows that investors are receptive to Eric's vision, and it has been well received.
Operationally, we also continued building the company. During the quarter, we expanded our engineering and product capabilities, increased integrations across partner platforms and continue deploying systems with multiple manufacturers operating in active environments. As we discussed last quarter, revenue is often a lagging indicator in our industry because defense procurement cycles are lengthy, and deployments frequently preceded scaled production. As a result, we continue to focus on indicators such as platform integrations, customer adoption, deployment success and progression from evaluation to production. We believe we are making meaningful progress on each of these fronts.
Looking ahead, we remain focused on expanding adoption across a wider range of unmanned systems, deepening our integration with manufacturers, supporting programs as they transition into scale deployment and evaluating strategic opportunities that can accelerate growth and strengthen our position within the autonomous systems ecosystem.
We continue to believe Swarmer can become a foundational software layer for autonomous and collaborative systems across multiple domains.
With that, I will turn it over to Brooks to walk through the financials in more detail.
Thank you, Alex. Revenue for the second quarter of 2026 was approximately $216,000 compared to $138,000 in the second quarter of 2025. Alex discussed, we received $1.4 million under the SkyKnight program in the quarter upon delivery of the software licenses to the customers. However, under the applicable accounting treatment, approximately $200,000 was recognized as revenue, $100,000 was recorded as deferred revenue and the remainder was recorded as an advance on the balance sheet.
As a result, the financial statements reflect minimal revenue from the deal. Despite this accounting presentation, the underlying contract value remains unchanged with the SkyKnight program representing approximately $3.9 million of contracted license value and up to approximately $14.2 million if all available options are exercised.
We continue to view the program as an important commercial validation of our technology and a meaningful long-term opportunity. It is also worth noting that cash usage included a separate onetime contractual prepayment of approximately $2.2 million related to the program.
Gross profit for the quarter was approximately $184,000 compared to $82,000 in the prior year period. The change primarily reflected the lower level of recognized revenue during the quarter as a result of the accounting treatment of the SkyKnight program.
Operating expenses were approximately $7.5 million compared to approximately $855,000 in the second quarter of 2025. The increase was driven primarily by investments in personnel, engineering and product development, together with higher consulting, legal and professional services expenses associated with operating as a public company.
Second quarter operating expenses also included onetime equipment purchases that are unlikely to recur in most quarters. Additionally, our operating expenses for the quarter included $1.2 million of noncash stock compensation expense. As investors evaluate our financial performance, we believe it is important to distinguish these onetime and noncash expenses from the cash costs required to operate and scale the business.
Net loss for the quarter was approximately $7.2 million compared to a net loss of approximately $1.6 million in the prior year period.
Turning to the balance sheet. Cash and cash equivalents at June 30, 2026, totaled approximately $25.3 million compared to $9.3 million at December 31, 2025. During the quarter, the company raised approximately $8.8 million through its equity line of credit program. Subsequent to quarter end through August 10, we collected an additional $17.9 million, further strengthening our liquidity position and supporting continued investment in growth initiatives. We remain committed to managing capital responsibly while investing in opportunities that we believe can generate long-term shareholder value.
And with that, I'll turn the call over to the operator for questions. Operator?
[Operator Instructions] Our first question comes from Alex Fuhrman with Lucid Capital Markets.
2. Question Answer
Congratulations on a lot of your recent announcements and the progress you're making here. I wanted to ask about your gross margins. Obviously, these are really small numbers, what we've seen so far this year, but gross margin in Q2 was up pretty dramatically from what we saw in Q1 and what we saw last year. Can you talk a little bit about the mechanics of what's in cost of sales and why the gross margin was so high in Q2?
And then just bigger picture, as you start to move into the millions of dollars of revenue where should we start to see gross margins shake out as volumes pick up?
Yes. This is Brooks. Thanks, Alex, for the question. Currently in cost of goods is a web-based data services only. We are assessing future will have some engineering services. So I would say going forward, the cost of goods as a percentage will be a little bit higher. And we're working on our methodology for this.
Right now, it's customized for each deal. So in the future -- go ahead.
I was going to say that's helpful. I don't know if you have more on that.
We're looking at probably around 80% or so. But yes, we're still looking at what types of engineering support will go into revenue deals.
Okay. That's really helpful. And then if I could ask on the the expanded licensing deal with SkyKnight. I think the original announcement was an initial contract value of around $3 million and the potential to scale up to around $13 million of all of the options were exercised. Now we're talking about bigger numbers with the expansion of the contract and the addition of the Czech Republic.
Can you just help us understand was the expansion that you just announced here recently. Is that a matter of SkyKnight exercising an option that it had prior? Or is this something kind of beyond the scope of the initial announcement? And if it was beyond the scope related to the additional geography, are there still more geographies where this contract could get expanded to?
Thank you for that question as well, it is beyond the scope of the original agreement. SkyKnight or Meta as the company is called has 2 types of drones. One is a large heavy quadcopter and the other one is a fixed wing. So the initial deal included some licenses for quad copters, some licenses for fixed wing drones and it included operating system licenses for everything SkyKnight plans to manufacture going forward, which allows them to easily upgrade to the full platform, and that is the option.
So the option is basically every time they have a drone that only has the operating system on it without autonomy at the click of a button, they can upgrade to full autonomy. Now what happened about 1.5 months later, is they increased their projected quantity of the fixed-wing drones. And so they acquired more autonomy licenses for that but that does not affect the option. They still have an option for the same quantity of drones to be upgraded from operating system to full platform.
We will take our final question from Alex Latimore with Northland.
Can you hear me?
Yes, we can.
Awesome. I'm glad to see everything is moving in the right direction. I had a question regarding the work with Powerus. I wonder if you could just give us an update on how things are moving on that front. And I was curious if you had any visibility into converting that MoU with Powerus into a full contract?
I can't really comment on future plans. Those will be announced when it's time. I can state that the MOU was announcing our plans to integrate our software into several of their platforms, and that work begun and it's ongoing. So as soon as those platforms are ready to scale and they have buyers for them, we will have an announcement. But obviously, that is not guaranteed. So when it's time, then we will definitely announce it.
Understood. And maybe one follow-up there. How long does it take to integrate to a new manufacturer's drone such as Powerus?
It depends on the platform and how similar it is to hardware that we've worked before. So if there is a platform that is very similar to something that we've launched before, let's say, a 10-inch first person view small drone, then that is a fairly quick process between 2 and 4 weeks, including field testing. If it is a very unusual or a different platform of the kind that we haven't encountered before, it could be several months. But it's worth noting, integration is something that we need to do. But then once it's integrated, the customer often has to go and actually sell the platform, right? And we will only receive revenue when there are buyers for the final integrated product from the end users who are typically government actors.
So in some cases, the delay is not because the integration has not done. In some cases, the delay is the acquisition cycle that our customers have to go through to actually get their products to be acquired by governments at scale.
Understood. That's good color there. One final quick one here. Do you have any acquisition interest going forward?
Well, our Chairman stated in a letter that we are definitely looking at opportunities in the market. So you could guess that we are likely following through on that promise, but I cannot announce anything at this time.
At this time, this concludes our question-and-answer session. If you have any additional questions, you may contact Swarmer's Investor Relations team at [email protected]. I'd now like to turn the call back over to Mr. Fink for his closing remarks.
Thanks again, everyone, for joining us today. As a reminder, you can find out more about our company, receive additional updates and learn about upcoming events from the Investor Relations section of our website. We look forward to updating you on exciting progress we are making in the defense technology market.
Finally, I'd like to thank our employees, partners and shareholders for their continued support. Operator?
Thank you for joining us today for Swarmer, Inc. Second Quarter 2026 Earnings Conference Call. You may now disconnect.
Swarmer — Q1 2026 Earnings Call
1. Management Discussion
Good morning, and welcome to the Swarmer, Inc. First Quarter 2026 Earnings Conference Call. Joining us for today's presentation are the company's President and U.S. CEO, Alex Fink; CFO, Brooks Ensign; and Global CEO, Serge Kupriienko. [Operator Instructions]
Before we begin, I want to remind everyone that today's call will include forward-looking statements within the meaning of the federal securities laws. These statements include, among others, statements regarding Swarmer's strategy, market opportunity, customer engagement, product development, technology integrations, expansion into new markets, future revenue opportunities, expected customer mix, potential deployments and the anticipated benefits of the company's relationships, memorandum of understanding partnerships and commercial initiatives.
Forward-looking statements are based on current expectations and assumptions and are subject to risks and uncertainties that can cause actual results to differ materially. Additional information about factors that can cause actual results to differ is included in the company's earnings release issued today and in the company's filings with the Securities and Exchange Commission, including the risk factors described in those filings. The company undertakes no obligation to update forward-looking statements, except as required by law.
Finally, I would like to remind everyone that this conference call is being webcasted, and a recording will be made available for replay on the company's Investor Relations website. In addition to the webcast, the company has posted a press release that accompanies these results, which could also be found on the Investor Relations website.
I will now turn the call over to Swarmer's President and U.S. CEO, Alex Fink, for his comments. Sir, please proceed.
Thank you. Welcome, everyone, and thank you for joining us on Swarmer's first earnings call as a public company. The first quarter of 2026 marked a major milestone for Swarmer. We completed our initial public offering, strengthened our leadership team and put in place the resources needed to support the next phase of our growth. More importantly, we continue to build momentum around what we believe is a fundamental shift in how unmanned systems are deployed and operated globally.
At a high level, the global defense landscape is undergoing a structural transformation. Advances in artificial intelligence, autonomy and low-cost unmanned platforms are shaping how modern conflicts are fought. As these systems proliferate by the millions, the limiting factor is no longer hardware. It is the ability to coordinate, control and scale those systems effectively. That is the problem Swarmer is built to solve.
There are three core challenges that drone operators face today. First, coordinating large numbers of unmanned systems across multiple domains. Second, enabling those systems to make reliable decisions in real time, especially in contested environments. And third, maintaining performance when communications are degraded or denied. Swarmer operates at what we describe as the intelligence layer. This is the software that allows large numbers of unmanned systems to function as a cohesive and a resilient force.
We are not a drone manufacturer, and we are not dependent on any single hardware platform. Our goal is to enable interoperability and scalable autonomy across a wide range of systems. What differentiates Swarmer is that our software is not theoretical. It is built and validated in real-world operational environments. Since April of 2024, our platform has been used in more than 100,000 combat missions in Ukraine across nearly 50 military units. These missions generate continuous streams of telemetry, sensor data and operational feedback. We use that data to refine performance, improve resilience and accelerate learning across the platform.
This compounding feedback loop is extremely difficult to replicate outside of real-world conditions, and it is a key driver of our long-term advantage. From an operator's perspective, the outcome is straightforward. One operator can effectively control large numbers of autonomous systems in real time. That is what enables scale. As deployment volumes continue to rise globally, that capability becomes increasingly essential.
During the first quarter, we continue to see growing engagement from manufacturers developing next-generation unmanned platforms. These programs are increasingly designed for higher volumes, lower-cost systems and some distributed operating models. That shift aligns directly with Swarmer's architecture and capabilities.
Before going further, I want to briefly address our reported financial results because context here is important. As with many platform software companies operating alongside hardware manufacturers, revenue recognition in our business is tied to production and deployment time lines rather than contract execution. Our revenue model is generally tied to customer deployment and activation time lines. As a result, reported revenue may fluctuate between periods based on production and fielding schedules, even as underlying platform adoption and customer engagement continue to expand. That dynamic creates timing gap in reported results, but it also reflects our shift towards significantly larger deployment opportunities over time.
The more relevant indicator for our business is the scale potential of the platforms we support rather than short-term revenue. At the same time, the market itself is evolving quickly. Earlier in our life cycle, a portion of our revenue was tied to legacy platform types that have become less relevant as operational requirements have changed. Over the past year, we have deliberately shifted our focus towards next-generation higher-volume platforms, including First-Person View class systems and emerging interceptor architectures.
Newer programs are moving through development and early production, and we are finding the right partners in these spaces. This morning, we announced that we were awarded a $2.86 million contract from Meta Bureau, a Kyiv-based drone producer. Under the contract, our battle-proven technology will be used onboard SkyKnight quadcopter bombers and other UAVs. The contract also includes optional upgrades that the customer can install, which would add an additional $10.4 million if fully executed. These are the types of opportunities that we are beginning to realize, and we are ensuring that we are positioning the business to capture them.
We are also expanding our geographic footprint. While we have historically been focused on Eastern Europe because of the strong demand, last week, we announced our expansion into Japan with support from Rakuten Group. Rakuten is one of the largest and best-known companies in Japan, and it agreed to sign on as our exclusive distributor in this market. This marks an important step in extending Swarmer's presence into one of the world's most advanced robotics and technology markets.
Through this collaboration, we are introducing our autonomy platform into Japan's unmanned systems ecosystem and supporting a range of potential applications spanning defense, infrastructure and industrial use cases. In connection with that effort, we recently completed the successful demonstration of an autonomous seek and hit operation using attritable 8-inch drones. This type of validation is an important early step as we engage with partners and customers in the region.
Taken together, these developments highlight the growing demand for our platform and the operating leverage embedded in our model. We are not only converting opportunities into initial deployments, but also structuring agreements with meaningful expansion potential while simultaneously opening new strategic markets. On the product side, our recently announced collaboration with HIMERA strengthens the performance and resilience of our autonomy platform. By integrating their battlefield-proven jam-resistant communications into our next-generation autonomy stack, we're embedding a reliable backbone for multi-vehicle operations in contested environments.
More broadly, this reflects our strategy to unify sensing, communication, coordination and execution into a single interoperable system, making it easier for customers to deploy scalable, reliable autonomy across air, ground and maritime domains. We also announced yesterday that we are developing a deployable end-to-end drone interceptor kit. This is an important step in our product development as we are seeing an urgent demand for rapid interceptor solutions across the globe. As part of this initiative, we are partnering with X-Drone, Norda Dynamics, and Kara Dag Technologies.
X-Drone has delivered more than 70,000 drone systems to the front lines in Ukraine and has battle-proven designs of both drones and interceptors. Norda provides thermal guidance capabilities and their software has been used on more than 60,000 drones. Kara Dag provides sensing technology for incoming threats and has also delivered thousands of systems to the front lines already. Swarmer's role is to integrate these components into a unified autonomy and coordination layer. We believe that partial solutions like a radar by itself or an interceptor by itself are not the right way to protect critical infrastructure at scale.
We are working to unify these battle-tested technologies to create an end-to-end solution that can be deployed quickly. And we believe that Swarmer's platform can be the glue that binds these parts together. Put together, we believe that our approach to all of these partnerships will allow Swarmer to succeed in the long run and be the de facto embedded software across multiple programs and platform types.
From an operational standpoint, the first quarter was a period of intentional investment. We incurred material onetime costs associated with our public listing, and we increased spending in engineering and product development as well. These investments are focused on expanding our ability to integrate with different hardware platforms and operate effectively across a broader set of environments and mission profiles. We also recently strengthened our leadership team with the addition of Mykhailo Nestor as our Chief Product Officer. Mykhailo brings meaningful experience scaling complex technology platforms, most recently at Kyivstar Group Ltd., which is a part of the global telecommunication group, VEON Ltd.
During his tenure, he built and led the product organization responsible for large-scale digital platforms and services used by millions of customers. He also helped establish Kyivstar.Tech, a dedicated technology company focused on modern digital product development. We look forward to having him on board and know that he will play an important role in advancing our product road map.
As we look ahead, we believe that due to the long procurement cycle, typical of the defense sector, revenue is a trailing indicator. Internally, we'll monitor several indicators of progress, including platform integrations, partner integrations, adoption within programs and progression from development towards production and deployment. We look forward to sharing updates on these when we can.
Looking ahead, our focus remains on expanding adoption, deepening integration with leading partners and supporting programs as they move into larger scale fielding. As these initiatives mature, we believe Swarmer can become a foundational software layer for autonomous and collaborative systems, and support long-term growth as deployment volumes increase across multiple domains. We are still early on that journey, but we are encouraged by the momentum we are seeing and the opportunities ahead.
With that, I will turn it over to Brooks to walk through the financials in more detail.
Thank you, Alex, and good morning, everyone. I will now review our results for the quarter. Revenue in the first quarter of 2026 was $20,325 compared to $110,704 in Q1 2025. The decline primarily reflects the wind-down of residual service-related deferred revenue associated with the company's historically largest customer in Ukraine. The company does not expect future revenue from this customer and is focused on expanding engagements with higher volume customers in Ukraine and international markets.
The company's revenue model is generally tied to customer deployment and software activation time lines. Revenue associated with software licenses is typically recognized upon activation, while a portion related to ongoing support and service obligations is deferred and recognized over the applicable service period. As a result, reported revenue in any given period may fluctuate based on customer production and deployment schedules as programs transition from development into broader fielding.
Gross loss for the first quarter of 2026 was $19,599 compared to gross profit of $65,162 in the first quarter of 2025, driven primarily by lower revenue during the period. Operating expenses for the first quarter of 2026 were $4.5 million compared to $800,000 in Q1 2025. As Alex mentioned, operating expenses increased primarily due to higher consulting and professional services expenses associated with becoming a public company, together with increased investment in engineering and product development initiatives. While certain public company transition costs incurred during the quarter were nonrecurring, we expect to continue investing in engineering, product development and strategic growth initiatives as we scale the business. Net loss for the first quarter of 2026 was $4.5 million compared to $0.7 million in the first quarter of 2025, primarily reflecting higher operating expenses.
Turning to the balance sheet. Cash and cash equivalents at March 31, 2026, totaled $23.5 million compared to $9.3 million at December 31, 2025. The increase primarily reflects gross proceeds of approximately $17.3 million from the company's IPO, together with approximately $3.5 million in gross proceeds from the sale of Series A-1 convertible preferred stock.
And with that, we'll turn the call over to the operator for questions. Operator?
[Operator Instructions] Our first question come from the line of Alex Fuhrman with Lucid Capital Markets.
2. Question Answer
Congratulations on the successful listing recently. I wanted to ask about the recently announced SkyKnight deal that sounds like a big growth opportunity for Swarmer. Specifically, can you help me understand, it looks like about a $2.9 million award for the 16,000 software license, but then an option to upgrade the licenses for north of $10 million. That's almost a 5x increase in revenue if these licenses are upgraded. Can you help us understand what that upgrade would entail and what needs to happen in order for that upgrade to be exercised?
Sure. So the customer chose to install our full autonomy stack, the Swarmer platform on a portion of their drones and our base operating system, Swarmer OS on everything else that they manufacture. And they have the option later on, even after those drones are deployed to upgrade any drone with Swarmer OS on it to the full autonomy stack. So this Swarmer OS includes basic functionality like proper encryption, security, secure messaging between the drones, video streaming to multiple viewers, et cetera. But it does not include any autonomy. The autonomy, they are starting out with putting it on a portion of the drones on specific models, but they have the option to enable it everywhere, essentially once their end user sees it in action and chooses to have it in every single drone deployed.
Okay. That's really helpful. I appreciate that. And then can you talk about the recent announcement, it looks like just the other day to partner with some other firms to build a drone interceptor system. That seems like something that's obviously very high in demand right now. What kind of a time line do you expect this collaboration to take? When could that start to actually be becoming deployable?
So let me start from the demand side because we're absolutely seeing demand from multiple places around the globe. But the problem that we're seeing is that all the countries that need site defense solutions that need interceptors probably wouldn't be able to actually use an interceptor if they bought one because an interception process requires multiple steps. You need to be able to detect the threat. You need to be able to coordinate that information and transfer the information about the target and where it's heading to the interception system. And then if you don't have interceptor pilots, which most countries in the world don't, you need to actually have a software system that guides that interceptor to the target and tracks it and actually terminates it.
So all of these things need to work in concert with each other, and you need to have this end-to-end solution. Ukraine right now has these partial solutions that are integrated manually by highly competent, highly trained and very experienced people. Most places don't have that. So we think that for Ukraine as well, it would be useful, but for every other country around the world, it would be necessary to just provide a solution that works end-to-end that starts with the detection method and ends with the target being terminated with all the steps in between being coordinated with a single software stack. So that's what we're building here to enable that and to be able to protect critical infrastructure around the West and around all the countries that we want to help.
But for that to happen, we need to coordinate multiple players together. That's why you're seeing the detection company that we are working with Kara Dag. That's why you're seeing the interceptor company itself, X-Drone, as drone and Norda, which provides thermal guidance for some of these scenarios. So with the time line, we will have to obviously work with these partners to see the complexity of the integration. My personal estimate would be that it's a matter of somewhere between 2 and 4 months, but it could be more complex or simpler depending on what's under the hood and depending on how initial tests go. Obviously, when it comes to deploying something like this, you need to test it. You cannot just look at the software and estimate the integration. So we will update everyone as this progresses regarding the actual time line when we have a more precise estimate.
Okay. That's really exciting. And then lastly, you've got more than $20 million of cash on the balance sheet now following the IPO, not a ton of OpEx here. How do you prioritize investing in M&A versus CapEx versus potentially adding more headcount?
Our goal was always to move as fast as possible and to create tools that help the warfighter and to have the greatest impact that we can on the battlefield to help the good guys win. So whatever allows us to move faster and achieve these goals is probably what's going to get the priority. So I think that primarily OpEx would be where we would be investing and hiring more engineers, especially on the integration side to work with more hardware. But it's all of the above. We need to move fast. We need to get this thing to work. We need it to be useful for the warfighter, and we need to be deployed and scaled as quickly as possible.
Our next question comes from the line of Michael Latimore with Northland Capital Markets.
Congrats on being public here. As you ramp over time, I assume this is a software kind of model, so we should think of gross margins being 70% plus as you scale over time. Is that a fair assessment?
Brooks, do you want to take this one?
Yes. Certainly, that is a fair assessment. We have some service obligations for the revenue and some implementation. But yes, that is a reasonable estimate.
Okay. And then how do you price this? Is it like a percent of overall system value? Or, like, just some more color on how price -- how you price? It would be great.
So it is, to some extent, a work in progress because the market itself is evolving. So we chose a per unit licensing model because we see the volume of units being manufactured in this market going up exponentially. And so we think that, that is the best way to scale along with the market. But what is the price per unit, that is, definitely it depends on the amount of effort of integrating this particular class of device. It depends on how scalable that class of device is. So for higher volume manufacturing, perhaps the prices could be slightly lower for something that is manufactured in very low volume overall, like very large fixed wing-drones, for example, the prices need to be higher because it's a large integration investment that only gets amortized over a small number of units. So it would be ideal if we could always just charge a certain percentage of the bill of materials, but that is likely unrealistic. So we will try to figure out what pricing makes sense on a case-by-case basis.
And you've had a number of nice customer and partner announcements. I guess, are those the main ones that should be generating revenue here? Or do you have several that are unannounced? I'm guessing there's plenty of companies that don't want to announce projects ahead of time?
Yes. There are certainly companies that don't want to announce projects ahead of time. And as I mentioned in the introduction to this, the announcements and the revenue tends to be a trailing indicator. So the work that we are seeing out in public right now typically reflects work that we've done more between 3 and 9 months ago. So in many cases, the pipeline is quite deep. And we're looking forward to sharing more information when we're able to about what's next.
Great. And just last one for me. Impressive that you guys have had 100,000 combat missions. Can you give a little bit more detail on those missions? Maybe how many drones were in operation per mission? Were they kinetic strikes or surveillance? Just a little more color on that would be great.
So we need to be somewhat careful and only expose things that we were authorized to expose. So I think that we've shared previously that the first combat mission started in April 2024. Initially, it was relatively simple operations like multi-drone reconnaissance or mining operations, then it progressed to bombing operations with multiple drones. Again, in Ukraine, typically, those were relatively small groups started with 3, grew to somewhere between 8 and 10, but these were relatively large drones early on.
And the types of autonomy that were run in these missions also varied. So early on, we had a lot of engagements that were semi-autonomous, where we would control the drones on the way to the target area, but then a pilot would control the drones for the actual moment where they fired the shot. And then we would control the drone on the way back. Later on, it progressed to more autonomous missions where we would control recon drones to send a video feed of the target area back to an operator. The operator would paint the targets on the screen, and then we would control the attack drones that engage the target.
And in fact, we would also decide which attack drone takes which target. That was not a decision for the operator to make. That was a decision for the drones that are in the target -- so yes, we would determine which attack drone engages which target because that information is more available in the target area and better made based on who has the highest probability of hitting it. These are the missions that are primarily running now, but we are progressing along with the hardware. When we integrate new hardware, new types of mission templates become available.
Thank you so much. We have reached the end of our question-and-answer session. With that, I'd like to turn the call back over to Alex Fink for any closing comments.
Thanks, everyone, for joining us today. As a reminder, you can find out more about our company, receive additional updates and learn about upcoming events from the Investor Relations section on our website. We look forward to updating you on the exciting progress we are making in the defense and technology market.
Finally, I'd like to thank our employees, partners and shareholders for their continued support. Operator?
Thank you, ladies and gentlemen. This does now conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.
Swarmer — Q1 2026 Earnings Call
Swarmer reports heavy short-term revenue volatility but shows battlefield-validated software traction, new partners, and IPO cash to fund growth.
📊 Quarter at a Glance
- Revenue: $20,325 in Q1 2026 vs $110,704 in Q1 2025 (-82% YoY); recognition tied to customer deployment/activation timing.
- Gross: Gross loss $19,599 vs gross profit $65,162 YoY, driven by much lower recognized revenue.
- OpEx: $4.5M vs $0.8M YoY; higher due to one‑time public company costs and increased engineering spend.
- Net loss: $4.5M vs $0.7M YoY, reflecting higher operating expenses and lower revenue.
- Cash: $23.5M at March 31, 2026 after initial public offering (IPO) and preferred sale proceeds, up from $9.3M.
🎯 What Management Says
- Product focus: Swarmer is an "intelligence layer" software (not a drone maker) that coordinates large numbers of unmanned systems and is validated in real operational combat missions (>100,000 missions).
- Market shift: Management is pivoting from legacy platforms to next‑generation, high‑volume, lower‑cost systems and uses a per‑unit licensing model to scale with manufacturing volumes.
- Partnerships & expansion: Announced $2.86M Meta Bureau contract (optional $10.4M upgrade), exclusive distributor in Japan with Rakuten, and interceptor kit collaborations plus jam‑resistant comms integration.
🔭 Outlook & Guidance
- Revenue cadence: Revenue is a trailing indicator in defense procurement; timing depends on production, activations and program fielding schedules.
- Profit potential: CFO said long‑run gross margins could be ~70%+, but no formal multi‑quarter guidance was provided.
- Cash & upside: $23.5M cash provides runway to invest in engineering and integrations; optional contract upgrades (e.g., Meta Bureau) represent material upside if exercised.
❓ Analyst Q&A
- SkyKnight upgrade: Base "Swarmer OS" (security, messaging, streaming) is being licensed now; customers can later enable the full autonomy stack on deployed units — the optional upgrade drives the stated ~$10.4M upside.
- Interceptor timeline: Management estimates 2–4 months for initial integration of interceptor kit partners but cautioned testing and integration complexity could extend that.
- Pricing & margins: Per‑unit licensing is the chosen model; pricing varies by platform class and integration effort — management declined a single formula and said case‑by‑case pricing will persist.
⚡ Bottom Line
Swarmer is an early, operationally proven software player with strong partner momentum and IPO funding, but current financials are lumpy and negative due to timing of activations; upside depends on converting optional upgrades and scaling integrations across higher‑volume platforms.
Disclaimer: This analysis was generated with AI. AI can also make mistakes. This is not investment advice.
Financial data from Swarmer
Revenue
Revenue is the sum of all sales generated by a company, e.g. for its products or services.
Revenue (TTM) metric explainedDirect Costs
Direct costs are the costs incurred directly in connection with the manufacture of the product or service.
Gross Profit
Gross Profit indicates how much of the revenue remains in the company after deducting direct production costs. If the percentage share of sales is calculated, this is referred to as the gross margin.
Gross Profit metric explainedSelling and Administrative Expenses
Selling, general and administrative expenses (SG&A) include all expenses for marketing and sales as well as the general administration of the company.
Research and Development Expense
Research and development costs (R&D) provide information on how much the company invests in the research and development of its products. The costs are particularly interesting as a percentage of revenue and in comparison to direct competitors.
EBITDA
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the company's earnings before interest, taxes, depreciation and amortization. The EBITDA margin is calculated as a percentage of sales.
Depreciation and Amortization
Depreciation represents reductions in the value of the company's assets (e.g. due to wear and tear on machinery).
EBIT (Operating Income)
EBIT (Earnings Before Interest and Taxes) is the company's profit before interest and taxes, also known as the operating income. The EBIT Margin is calculated as a percentage of sales at
.
Net Profit
Net Profit represents the profit or loss after deduction of all costs.
Net Profit metric explainedStocksGuide Premium
| Jun '26 |
+/-
%
|
||
| Revenue | 0.22 0.22 |
57%
57%
100%
|
|
| - Direct Costs | 0.03 0.03 |
50%
50%
14%
|
|
| Gross Profit | 0.18 0.18 |
125%
125%
82%
|
|
| - Selling and Administrative Expenses | 5.66 5.66 |
1,921%
1,921%
2,573%
|
|
| - Research and Development Expense | 1.81 1.81 |
212%
212%
823%
|
|
| EBITDA | -7.22 -7.22 |
-
-3,282%
|
|
| - Depreciation and Amortization | 0.06 0.06 |
-
27%
|
|
| EBIT (Operating Income) EBIT | -7.28 -7.28 |
845%
845%
-3,309%
|
|
| Net Profit | -7.33 -7.33 |
350%
350%
-3,332%
|
|
In millions USD.
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Swarmer Stock News
Company Profile
Swarmer Inc is a US-based company operating in Aerospace & Defense industry. The company is headquartered in Austin, Texas. The company went IPO on 2026-03-17. Swarmer Inc is a provider of autonomous drone swarm software and artificial intelligence (AI) solutions, specializing in vendor-agnostic technologies that address critical operational challenges faced by modern military forces. The firm delivers software platforms and AI systems that enable military organizations to deploy and coordinate large-scale unmanned systems operations without requiring proportional increases in trained operators. Its mission areas include autonomous swarm coordination, multi-domain unmanned systems integration, AI-powered collaborative autonomy, and command and control software for distributed robotic operations. Its autonomous swarm software platform includes STYX AI Command & Control System, MINAS Autonomy and Collaboration AI and TRIDENT Embedded Drone Operating System. Its STYX AI Command & Control System platform enables operators to manage swarms ranging from dozens to hundreds of autonomous drones through an intuitive interface.
StocksGuide Premium
| Head office | United States |
| Website | www.getswarmer.com |
