Palladyne AI (NASDAQ:PDYN) Releases Quarterly Earnings Results

Palladyne AI (NASDAQ:PDYN) issued its quarterly earnings results on Tuesday, May 5th. The company reported ($0.28) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.16) by ($0.12), Zacks reports. Palladyne AI had a negative net margin of 358.04% and a negative return on equity of 49.17%. The business had revenue of $3.54 million for the quarter, compared to the consensus estimate of $4.93 million.

Here are the key takeaways from Palladyne AI’s conference call:

• Revenue grew 107% YoY to $3.5M, backlog rose to approximately $17M after ~$7M in new awards, and management reiterated 2026 revenue guidance of $24M–$27M, implying a material ramp in H2.
• Management highlighted major operational validation — a live heterogeneous autonomous swarming demo (Gremlin?X + Red Cat), two space?domain engagements (AFRL HANGTIME, Portal), a new patent and invitations to Northern Strike and AFRL Relentless Wolfpack — signaling accelerating product adoption and partner interest.
• Operating cash usage in Q1 ran above the guided quarterly range (?$10.2M vs $8–$9M expected), GAAP net loss was $12.6M, and full?year cash burn is forecast at $32M–$36M despite $43.7M in liquidity, increasing near?term funding sensitivity if revenue conversion delays persist.
• Manufacturing is underutilized (~30% capacity) and first?article costs compressed current consolidated gross margin (~30%), but management expects margins to improve as backlog converts and higher?margin software (SwarmOS/IntelliSwarm) revenue scales.

Palladyne AI Price Performance

Shares of Palladyne AI stock opened at $7.17 on Tuesday. Palladyne AI has a one year low of $4.14 and a one year high of $13.00. The business’s 50 day simple moving average is $6.65 and its two-hundred day simple moving average is $6.35. The stock has a market capitalization of $333.33 million, a P/E ratio of -11.75 and a beta of 3.59.

Insider Activity

In other news, CTO Denis Garagic sold 17,176 shares of the firm’s stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $6.14, for a total value of $105,460.64. Following the transaction, the chief technology officer owned 559,959 shares in the company, valued at approximately $3,438,148.26. This trade represents a 2.98% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Stephen Sonne sold 5,245 shares of the company’s stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $6.14, for a total transaction of $32,204.30. Following the sale, the insider owned 197,490 shares of the company’s stock, valued at $1,212,588.60. This represents a 2.59% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 54,378 shares of company stock valued at $372,509. 13.40% of the stock is currently owned by company insiders.

Institutional Trading of Palladyne AI

A number of institutional investors have recently modified their holdings of PDYN. Quarry LP bought a new stake in shares of Palladyne AI in the third quarter worth about $28,000. Boothbay Fund Management LLC purchased a new stake in Palladyne AI in the 4th quarter worth approximately $44,000. Osaic Holdings Inc. lifted its holdings in Palladyne AI by 94.3% in the 2nd quarter. Osaic Holdings Inc. now owns 5,098 shares of the company’s stock worth $44,000 after buying an additional 2,474 shares during the period. Atom Investors LP bought a new stake in shares of Palladyne AI in the 4th quarter worth approximately $56,000. Finally, Russell Investments Group Ltd. bought a new stake in shares of Palladyne AI in the 3rd quarter worth approximately $61,000. 26.02% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on PDYN. Lake Street Capital initiated coverage on shares of Palladyne AI in a research note on Friday, April 17th. They issued a “buy” rating and a $11.00 target price on the stock. Northland Securities set a $15.00 price target on shares of Palladyne AI in a research note on Monday. Wall Street Zen lowered shares of Palladyne AI from a “hold” rating to a “sell” rating in a report on Saturday, March 7th. Alliance Global Partners restated a “buy” rating on shares of Palladyne AI in a research report on Tuesday, May 5th. Finally, Weiss Ratings downgraded shares of Palladyne AI from a “hold (c-)” rating to a “sell (d-)” rating in a report on Wednesday, May 6th. Three investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $11.00.

Palladyne AI Company Profile

Palladyne AI Corp., a software company, focuses on delivering software that enhances the utility and functionality of third-party stationary and mobile robotic systems in the United States. Its Artificial Intelligence (AI)/ Machine Learning (ML) software platform enables robots to observe, learn, reason, and act in structured and unstructured environments. The company's software platform enables robotic systems to perceive their environment and quickly adapt to changing circumstances by generalizing from their experience using dynamic real-time operations without extensive programming and with minimal robot training.