Revenue growth remains highly erratic, evidenced by a 106.9% surge in 2026Q1 following multiple quarters of contraction, while gross margins fluctuate wildly between a low of -46.1% and a peak of 79.4%.
| Sales/Revenue | 7.07M | 5.25M | 7.79M | 6.15M | 14.57M | 5.08M | 8.81M |
| Revenue Growth % | 16.83% | -32.62% | 26.68% | -57.81% | 187.07% | -42.41% | - |
| Cost of Goods Sold | 4.81M | 2.69M | 3.49M | 5.04M | 11.61M | 3.87M | 5.6M |
| COGS % of Revenue | - | 51.28% | 44.8% | 82.02% | 79.72% | 76.2% | 63.57% |
| Gross Profit | 2.26M | 2.56M | 4.3M | 1.1M | 2.96M | 1.21M | 3.21M |
| Gross Margin % | 32% | 48.72% | 55.2% | 17.98% | 20.28% | 23.8% | 36.43% |
| Gross Profit Growth % | - | -40.53% | 288.96% | -62.61% | 144.62% | -62.38% | - |
| Operating Expenses | 39.66M | 34.96M | 31.22M | 122.06M | 179.99M | 82.2M | 24.21M |
| OpEx % of Revenue | - | 666.41% | 400.99% | 1986.02% | 1235.45% | 1619.68% | 274.71% |
| Selling, General & Admin | 25.25M | 21.94M | 20.98M | 42.28M | 73.43M | 64.68M | 10.09M |
| SG&A % of Revenue | - | 418.28% | 269.41% | 687.96% | 504.01% | 1274.54% | 114.52% |
| Research & Development | 13.93M | 12.9M | 10.44M | 39.01M | 34.14M | 17.52M | 14.12M |
| R&D % of Revenue | - | 245.88% | 134.05% | 634.75% | 234.36% | 345.14% | 160.18% |
| Other Operating Expenses | 473K | 118K | -192K | 40.77M | 72.42M | 0 | 0 |
| Operating Income | -37.39M | -32.4M | -26.92M | -120.96M | -177.04M | -80.99M | -21M |
| Operating Margin % | -528.58% | -617.69% | -345.79% | -1968.04% | -1215.17% | -1595.88% | -238.27% |
| Operating Income Growth % | - | -20.36% | 77.74% | 31.68% | -118.59% | -285.69% | - |
| EBITDA | -35.81M | -31.31M | -26.1M | -116.58M | -173.44M | -80.46M | -20.54M |
| EBITDA Margin % | -506.22% | -596.87% | -335.19% | -1896.86% | -1190.51% | -1585.42% | -233.08% |
| EBITDA Growth % | -39.59% | -19.98% | 77.61% | 32.78% | -115.57% | -291.7% | - |
| D&A (Non-Cash Add-back) | 1.58M | 1.09M | 825K | 4.38M | 3.59M | 531K | 458K |
| EBIT | -33.07M | -32.29M | -27.11M | -83.01M | -106.8M | -80.99M | -21M |
| Net Interest Income | 1.26M | 1.94M | 1.24M | 3.29M | 1.83M | -34K | 40K |
| Interest Income | 1.26M | 1.94M | 1.24M | 3.29M | 1.83M | 0 | 40K |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 34K | 0 |
| Other Income/Expense | 9.53M | 39.91M | -45.69M | 5.37M | 16.02M | -516K | 74K |
| Pretax Income | -27.87M | 7.5M | -72.61M | -115.59M | -161.02M | -81.51M | -20.93M |
| Pretax Margin % | -393.92% | 142.99% | -932.6% | -1880.67% | -1105.24% | -1606.05% | -237.43% |
| Income Tax | -2.54M | -2.54M | 5K | 7K | -3.89M | 1K | 1K |
| Effective Tax Rate % | 9.11% | -33.84% | -0.01% | -0.01% | 2.42% | -0% | -0% |
| Net Income | -25.33M | 10.04M | -72.62M | -115.59M | -157.13M | -81.51M | -20.93M |
| Net Margin % | -358.04% | 191.36% | -932.66% | -1880.78% | -1078.52% | -1606.07% | -237.44% |
| Net Income Growth % | 40.59% | 113.82% | 37.18% | 26.43% | -92.78% | -289.51% | - |
| Net Income (Continuing) | -25.33M | 10.04M | -72.62M | -115.59M | -157.13M | -81.51M | -20.93M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | -3K |
| EPS (Diluted) | -0.56 | 0.24 | -2.77 | -4.51 | -6.42 | -4.32 | -1.21 |
| EPS Growth % | 68.8% | 108.66% | 38.58% | 29.75% | -48.61% | -257.02% | - |
| EPS (Basic) | - | 0.26 | -2.77 | -4.51 | -6.42 | -4.32 | -1.21 |
| Diluted Shares Outstanding | 45.07M | 42.13M | 26.77M | 25.64M | 24.47M | 18.86M | 17.34M |
| Basic Shares Outstanding | 45.07M | 38.84M | 26.77M | 25.64M | 24.47M | 18.86M | 17.34M |
| Dividend Payout Ratio | - | - | - | - | - | - | - |
Liquidity and operational viability
As indicated by the quarterly income statements, PDYN's revenue trajectory remains highly erratic, characterized by a 106.9% growth spike in 2026Q1 following multiple quarters of significant contraction, suggesting that the company's transition toward a software-centric model has yet to establish a predictable or sustainable baseline.
The extreme quarterly fluctuations in top-line performance imply that revenue is currently driven by lumpy, milestone-based project work rather than recurring software subscriptions. Investors should monitor whether the recent growth surge represents a genuine inflection in commercial adoption or merely the timing of specific government contract recognition.
Based on reported financial data, PDYN's gross margins have demonstrated significant instability, ranging from a low of -46.1% in 2023Q4 to a peak of 79.4% in 2025Q1, which highlights the difficulty of maintaining profitability while transitioning away from a hardware-heavy cost structure toward software-based service delivery.
The wide variance in gross margins suggests that the company is still absorbing significant pass-through costs or labor-intensive implementation expenses that undermine the scalability of its software offerings. This lack of margin consistency makes it difficult to forecast the long-term profitability of the Palladyne AI platform.
According to the provided income statement data, PDYN continues to carry a heavy burden of R&D and SG&A expenses, with operating losses consistently exceeding $6 million per quarter, which indicates that the company's current cost structure is not yet aligned with its limited revenue generation capacity.
The persistent reliance on high R&D spending suggests that the company is still in a heavy development phase, yet the lack of corresponding revenue growth raises questions about the efficiency of this capital allocation. Without a significant reduction in operating overhead, the company may struggle to reach a break-even point.
As reported in financial filings, the 191.36% net margin observed in 2025Q1 appears to be an anomaly driven by non-operating accounting gains rather than core business performance, masking the underlying reality of a company that continues to experience significant quarterly net losses and negative operating cash flow.
The discrepancy between reported net income and operating performance warrants extreme caution, as it suggests that non-recurring items are being used to bridge the gap in operational funding. Analysts should focus on operating income as the primary metric for evaluating the company's true financial health.
Based on the provided figures, the most significant risk to the investment thesis is the company's limited cash runway, as the persistent operating losses and lack of recurring revenue suggest that PDYN may face a liquidity crunch without further dilutive financing or a rapid commercial breakthrough.
Short-term observers may focus on the company's inability to convert its AI-focused rebranding into consistent, high-margin revenue growth. The reliance on government contracts, combined with a high burn rate, leaves the company vulnerable to shifts in federal spending and capital market sentiment.
Quick answers to the most common questions about buying PDYN stock.
For fiscal year 2025, Palladyne AI Corp. (PDYN) reported total revenue of $5.2M. This represents a 40.5% decline compared to $8.8M in 2020.
Palladyne AI Corp. (PDYN) is profitable, generating $10.0M in net income for the fiscal year ending 2025 with a net profit margin of 191.4%.
Palladyne AI Corp. (PDYN) reported an operating income of $-32.4M, resulting in an operating profit margin of -617.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Palladyne AI Corp. (PDYN) generated $2.6M in gross profit for the year, representing a gross profit margin of 48.7%. This demonstrates the company's core pricing power and production efficiency.