UUnusual Machines designs, manufactures, and sells drone components in the United States. It earns revenue from direct-to-consumer sales through the Rotor Riot platform and a B2B channel that supplies parts to other drone makers and enterprise clients, with the B2B segment growing since 2024. The company expands vertically by opening a drone motor factory in Orlando and by acquiring Rotor Lab, while focusing on NDAA-compliant, American-made parts validated through the Blue UAS Framework. Its goal is to become a leading domestic supplier of NDAA-compliant drone components for defense and commercial markets, supported by growth through acquisitions and expanded manufacturing.
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Industries
Company Size
51-200
Company Stage
IPO
Headquarters
Orlando, FL
Founded
2022
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Total Funding
$186.9M
Above
Industry Average
Funded Over
7 Rounds
Unusual Machines reported third-quarter revenue of $13.9 million, up 551% from a year earlier, and reaffirmed its $25 million revenue target for the fourth quarter. Chief executive officer Allan Evans said demand is already secured and the main risk is executing its scaling plans. The drone-parts maker posted a net loss of about $25 million, mostly from non-cash stock compensation and investment losses. Its adjusted EBITDA loss was about $700,000. Defense is expected to drive fourth-quarter sales, including a $16.9 million order from Powerus. The company is nearly fully allocated through the first quarter of 2027. It ended September with about $162 million in cash and $98.4 million in short-term investments. It is considering about 100,000 square feet of extra manufacturing space.
how InvestingPro's fair value spotted Unusual Machines' 43% decline. Published Nov 07, 2026, 06:02 AM (C) Reuters In March 2026, when Unusual Machines (NYSE:UMAC) was trading at $20.91 amid growing excitement around the U.S. drone industry, InvestingPro's Fair Value models identified a critical warning: the stock was severely overvalued. Eight months later, that analysis has proven remarkably accurate, with shares declining 43% to $11.90 despite explosive revenue growth and positive industry developments. Fair Value analysis helps investors understand a stock's intrinsic worth by combining multiple valuation methodologies, enabling better entry and exit decisions that can protect portfolios from overpriced assets. For investors seeking current opportunities, the most overvalued list provides real-time insights into stocks that may face similar pressure. Unusual Machines, an industrial sector company focused on drone manufacturing, caught InvestingPro's attention on March 17, 2026, when Fair Value models calculated an intrinsic value of just $11.93 - a stark 43% below the market price of $20.91. At the time, the company reported revenue of only $11.2 million with deeply negative EBITDA of -$25.0 million and losses of $0.74 per share. The stock had experienced extreme volatility in the preceding six months, with monthly swings ranging from -41.5% to +57.3%, suggesting speculative trading rather than fundamental strength. InvestingPro's financial health score of just 1.98 out of 5 signaled underlying weakness despite market enthusiasm. The subsequent eight months validated InvestingPro's overvaluation call with striking precision. Despite the stock briefly surging 117.8% in May 2026 on industry tailwinds - including Trump administration drone tariffs and Pentagon funding discussions - fundamental reality ultimately prevailed. The share price declined from $20.91 to $11.90, closely tracking InvestingPro's Fair Value estimate. This performance demonstrates how InvestingPro's models cut through market noise to identify true value, similar to how the platform's AI-powered ProPicks have delivered consistent outperformance. | Aaaaaa A | 110.79 | +74.49% | 193.32 | Great | Great | Fair | Excellent | Neutral | 9.07 | 5.30 | 12.37B | | Aaaaa Aaaaaaa A Aaa | 118.07 | +72.93% | 204.17 | Good | Fair | Fair | Great | Neutral | 3.10 | 5.22 | 20.59B | | Aaaaaaaaaaaaaaaaaaaa | 28.76 | +70.40% | 49.01 | Great | Fair | Great | Great | Neutral | 6.06 | 9.77 | 17.79B | | Aaaaaaa | 28.73 | +67.98% | 48.26 | Good | Good | Good | Great | Neutral | 4.26 | 11.46 | 15.15B | | Aaaaaaaaaa Aaaaaaaa | 239.30 | +67.22% | 400.16 | Great | Great | Good | Excellent | Neutral | 13.36 | 9.94 | 95.91B | Interestingly, Unusual Machines actually delivered impressive operational results during this period. Revenue surged 289% from $11.2 million to $43.6 million, with Q2 2026 revenue jumping 687% year-over-year. The company benefited from positive industry developments and received outperform ratings from analysts at Northland. However, EBITDA remained deeply negative at -$32.7 million, and insider selling by the president, CFO, and CRO totaling over $1.2 million suggested management recognized valuation concerns. The stock's decline despite positive news highlights why valuation matters - even good companies can be bad investments at the wrong price. InvestingPro's Fair Value methodology aggregates multiple valuation approaches including discounted cash flow models, comparable company analyses, and analyst consensus targets to calculate intrinsic worth. This comprehensive framework incorporates margin of safety principles and future cash flow projections, helping investors distinguish between temporary market sentiment and fundamental value. The approach proved particularly valuable for UMAC, where speculative excitement around drone stocks created a significant disconnect from underlying financials. The successful identification of Unusual Machines' overvaluation demonstrates the power of systematic Fair Value analysis. InvestingPro subscribers gain access to Fair Value estimates on thousands of stocks, along with financial health scores, ProTips, and real-time alerts that help navigate volatile markets. Learn more about InvestingPro to access the tools that spotted this opportunity eight months before the market corrected - and discover which stocks today may be similarly mispriced. Ever wondered how to spot an undervalued gem? Trusted by 50M+ investors 4.6/5 (1.3M reviews) Find Undervalued Stocks
Unusual Machines (NYSEAMERICAN:UMAC) releases quarterly earnings results, beats estimates by $0.18 EPS. November 6, 2026 Key points. * Unusual Machines beat quarterly estimates: It reported a loss of $0.02 per share versus expectations of a $0.20 loss, while revenue of $13.9 million exceeded forecasts and rose 551% year over year. * Management maintained its $25 million Q4 revenue target and said customer orders largely fill production capacity through Q1 2027; the company is considering additional manufacturing space to support growth. * The company remained unprofitable, with a roughly $25 million GAAP net loss, largely reflecting non-cash investment losses and stock compensation. It ended September with $162 million in cash and $98.4 million in short-term investments. * MarketBeat previews top five stocks to own in December. Unusual Machines (NYSEAMERICAN:UMAC - Get Free Report) posted its quarterly earnings results on Thursday. The company reported ($0.02) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.20) by $0.18, FiscalAI reports. Unusual Machines had a negative net margin of 20.29% and a negative return on equity of 7.62%. The business had revenue of $13.90 million during the quarter, compared to analysts' expectations of $12.39 million. Here are the key takeaways from Unusual Machines' conference call: * Q3 revenue rose 551% year over year to $13.9 million, with a 35.4% gross margin and an adjusted EBITDA loss of about $700,000. Revenue was down from $16.7 million in Q2, which management attributed to delivery timing and operational investments. * Management maintained its $25 million Q4 revenue target, citing strong demand and saying customer orders already largely fill production capacity through Q1 2027. Executives said the key risk is executing the scale-up, not demand. * The company reported a roughly $25 million GAAP net loss, including $18.4 million in non-cash unrealized losses on short-term investments and $5.5 million in stock compensation. Management said weaker investor sentiment in the drone sector reduced the marked value of its investments. * Unusual Machines ended September with $162 million in cash, $98.4 million in short-term investments, and $342 million in working capital, while inventory and related deposits climbed to $65.9 million. The company is considering about 100,000 square feet of additional manufacturing space; management said capacity and operational execution will be important to support expected 2027 growth. Unusual Machines trading up 10.8%. Shares of Unusual Machines stock traded up $1.16 on Friday, reaching $11.90. 4,603,838 shares of the stock were exchanged, compared to its average volume of 2,607,622. The business has a fifty day moving average price of $20.44 and a two-hundred day moving average price of $19.11. Unusual Machines has a 1-year low of $7.24 and a 1-year high of $34.93. Insider activity at Unusual Machines. In related news, President Andrew Ross Camden sold 9,625 shares of Unusual Machines stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $26.01, for a total transaction of $250,346.25. Following the completion of the transaction, the president directly owned 237,125 shares of the company's stock, valued at approximately $6,167,621.25. The trade was a 3.90% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CRO Stacy Rochelle Wright sold 27,500 shares of the company's stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $26.00, for a total transaction of $715,000.00. Following the completion of the sale, the executive directly owned 68,750 shares in the company, valued at $1,787,500. This trade represents a 28.57% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 48,538 shares of company stock worth $1,262,198 over the last 90 days. Company insiders own 4.87% of the company's stock. Wall Street analyst weigh in. UMAC has been the subject of a number of research analyst reports. Needham & Company LLC reduced their price objective on shares of Unusual Machines from $40.00 to $22.00 and set a "buy" rating for the company in a research report on Friday. Piper Sandler lowered their price objective on Unusual Machines from $38.00 to $29.00 and set an "overweight" rating on the stock in a research note on Friday, October 23rd. National Bank Financial set a $42.00 price target on shares of Unusual Machines in a research note on Wednesday, July 15th. HC Wainwright began coverage on Unusual Machines in a report on Wednesday, July 15th. They set a "buy" rating and a $42.00 price target for the company. Finally, Northland Securities assumed coverage on Unusual Machines in a report on Friday, October 23rd. They issued an "outperform" rating and a $30.00 price objective on the stock. Seven investment analysts have rated the stock with a Buy rating. Based on data from MarketBeat, the company currently has a consensus rating of "Buy" and a consensus price target of $32.14. Discover more MarketBeat All Access MarketBeat Portfolio Tracker MarketBeat Research Tools Key headlines impacting Unusual Machines. Here are the key news stories impacting Unusual Machines this week: * Third-quarter revenue rose 551% year over year to $13.9 million, beating estimates, while the $0.02-per-share loss was narrower than analysts expected. * Management is targeting $25 million in fourth-quarter revenue and plans to expand manufacturing capacity by 100,000 square feet. The company also said defense contracts have filled production capacity through the first quarter of 2027, signaling strong near-term demand. * Needham lowered its price target from $40 to $22 but maintained a Buy rating. The reduction may weigh on sentiment, though the analyst remains positive on the shares. * UMAC remains unprofitable, reporting a quarterly loss despite beating expectations. Investors may look for evidence that rapid growth and added capacity can translate into improved profitability. About Unusual Machines. Unusual Machines, Inc develops, manufactures and sells unmanned aircraft systems and components, with a focus on first-person-view (FPV) drones. Its product offerings include complete drones, motors, propellers, frames, flight controllers and other replacement parts used by recreational pilots, commercial operators and drone builders. The company also markets FPV-related electronics and accessories, including video equipment and goggles. Its portfolio has included the Rotor Riot and Fat Shark brands, which are associated with FPV drones, pilot content and immersive flight products. Further reading. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. Before you consider Unusual Machines, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Unusual Machines wasn't on the list. While Unusual Machines currently has a Buy rating among analysts, top-rated analysts believe these five stocks are better buys. Oil still powers the global economy, but AI is reshaping the energy opportunity. Discover seven stocks spanning traditional energy, infrastructure, and next-generation power. Continue following MarketBeat
Powerus Corporation completed its Nasdaq listing on 1 October through a merger with Aureus Greenway Holdings. One day later, Backpack Securities issued a tokenised representation of PUSA shares on Solana blockchain. The defence technology company develops autonomous drones and counter-drone systems. Its xNav AI architecture combines sensor data to identify threats and coordinate autonomous operations. Subsidiary Tandem Defense holds a US Air Force contract with a ceiling of up to $90 million through mid-2028. The merger gave legacy Powerus shareholders roughly 83% of common stock and approximately 93% of voting power. Investors include Eric Trump and Donald Trump Jr through American Venture Partners, alongside a $50 million strategic investment. The tokenised shares are redeemable one-to-one for underlying Nasdaq-listed securities, enabling blockchain-based distribution whilst maintaining regulatory compliance.
Counter-drone startup Fortem Technologies has closed a $50 million Series B funding round, following an initial $25 million investment from Lockheed Martin in April. Drone component manufacturer Unusual Machines and other undisclosed strategic and institutional investors participated in the round, which valued the Utah-based company "under a billion dollars." Founded in 2016, Fortem builds complete counter-drone systems including radar sensors, command-and-control software, and autonomous interceptor drones. The company recently secured a prime spot on a $1 billion-plus Department of Homeland Security contract and won an $18 million three-year US Army contract to defend installations. Fortem is the only kinetic countermeasure authorised in the US for counter-drone operations and plans to use the new funding to scale hiring and production.
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Industries
Company Size
51-200
Company Stage
IPO
Headquarters
Orlando, FL
Founded
2022
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