XTI Aerospace targets Q3 cash flow inflection behind commercial drone push

XTI Aerospace (NASDAQ:XTIA) reported its first-quarter 2026 financial results on Thursday, highlighting a strategic transition as the company consolidates its operations around its newly acquired commercial unmanned aircraft systems (UAS) platform.

XTI Aerospace reported total revenue of $27.7 million for the first quarter ended March 31, 2026, with a gross profit of $5.1 million and an initial gross margin of 18.6%.

The operational performance was driven almost entirely by the integration of its Drone Nerds division, which established a stable, commercial baseline following the divestiture of the company's legacy Inpixon RTLS business in February.

On a reported basis, the company posted a net loss from continuing operations of $31.7 million.

However, the bottom line was heavily distorted by a $21.4 million non-cash charge stemming from the fair value revaluation of warrant liabilities.

Stripping out these adjustments and one-time restructuring costs, XTI’s adjusted EBITDA loss improved significantly to $4.9 million—roughly half the loss recorded in the fourth quarter of 2025.

The company solidified its financial foundation during the quarter, securing a new $20 million asset-based lending (ABL) credit facility with JPMorgan to support manufacturing and working capital.

XTI also brought in $7.4 million in net proceeds from warrant exercises.

At quarter-end, the company maintained $15.2 million in unrestricted cash, with $8.1 million still available under its ABL borrowing base.

Looking ahead, management issued confident targets for the remainder of fiscal 2026.

XTI expects full-year revenue to reach or exceed $160 million, representing more than 30% annualized growth, with full-year gross margins expanding to a range of 19% to 21%.