Palladyne AI reported second-quarter revenue of $5.783 million, up 470% year-over-year and 63% sequentially. The company attributes the growth to acquisitions and organic expansion, though it has yet to generate software-product revenue. The firm ended June with $24.6 million in backlog, rising 43% during the quarter. Management reiterated 2026 revenue guidance of $24 million to $27 million, representing 357% to 415% growth. Most backlog is expected to convert to revenue within 12 to 18 months. Operating loss widened to $13.413 million from $8.094 million a year earlier. Palladyne held $43.746 million in cash and marketable securities against projected full-year operating cash burn of $32 million to $36 million. The company sold 2,531,336 shares in the first half through its at-the-market programme, raising $17.8 million.

Palladyne AI reported preliminary second quarter 2026 revenue of approximately $5.8 million, representing a 480% increase year-over-year and 66% sequential growth from the first quarter. The defence and industrial technology company's backlog reached approximately $24 million as of 30 June, up from $17.3 million at the end of March. The company secured approximately $12.5 million in new contracts during the quarter across its operations. Palladyne AI expects to recognise the majority of its backlog as revenue over the next 12 to 18 months. Chief executive Ben Wolff highlighted a recent partnership with Israel Aerospace Industries, which grants Palladyne AI exclusive US rights to a family of loitering munition systems. The company maintained approximately $44 million in cash, cash equivalents and marketable securities as of quarter-end.

Palladyne AI has appointed retired Lt. Gen. Sean A. Gainey to its Defense Advisory Board. Gainey previously served as Commanding General of U.S. Army Space and Missile Defense Command and Commander of Joint Task Force-Gold, overseeing homeland integrated air and missile defence operations for Golden Dome. Gainey founded the Joint Counter-UAS Office and developed joint force doctrine for counter-drone operations. His appointment follows Palladyne AI's exclusive U.S. partnership with Israel Aerospace Industries to manufacture HARPY, HAROP and Mini HARPY loitering munition systems domestically, marking the first U.S.-produced portfolio of long-range loitering munitions available to the military. CEO Ben Wolff said Gainey's experience will help the company align its roadmap with operational requirements and engage more effectively with defence customers on autonomous systems and precision fires.