One-glance verdict
Not enough data
Fair value unavailable
Not enough cash-flow history to value this one with our method.
Fundamentals snapshot
Palladyne AI Corp.
PDYN · NGM · Technology · Software - Infrastructure
Current price
$5.39
52-week range
$4.14 - $10.73
Market cap
$265.93M
Balance sheet
Healthy
-16.67x Concerning
Net cash $33.19M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
1 Risk
1 rewards · 1 risks
- Reward Revenue grew 125.7% last year.
- Risk Return on equity was -48.4% last year — the company lost money on shareholders' equity.
What this company does
Palladyne AI Corp.
Palladyne AI creates intelligent software that gives robots and drones the ability to learn and adapt on their own. This allows a factory robot to handle unexpected disruptions or a group of drones to track objects without needing constant human programming. The company makes money by selling this advanced software to customers in large industries like manufacturing, defense, and energy.
How the company got here
Originally founded in 1983 as Sarcos, the company spent decades building advanced robots for a wide range of uses, from theme park attractions to military exoskeletons that help soldiers lift heavy loads. [1, 9] After being owned by defense contractor Raytheon for a period, it became an independent public company again. [2, 3] In a major turning point in 2023, the company decided to stop building robot hardware and focus entirely on creating the artificial intelligence (AI) software that makes machines smart, changing its name to Palladyne AI in 2024 to reflect this new direction. [1, 17]
What it actually does
Palladyne AI creates specialized software that acts as the brain for robots, drones, and other machines. This software, which the company calls "embodied AI," allows machines to observe their surroundings, make intelligent decisions, and act on them in real-time without needing a connection to the internet. [4, 10] This is like the difference between a remote-controlled toy car and a self-driving car that can navigate a messy room on its own. Palladyne's technology is used by the military for autonomous drones and by factories to make their industrial robots more adaptable and versatile. [5, 6]
Palladyne Defense
This is a major and relatively new part of the company, created through the purchase of several smaller firms that design and build aerospace components. [15, 16] This division sells AI-powered systems directly to the U.S. government and its allies for military use. [7, 8] It combines Palladyne's smart software with actual hardware like autonomous drones and missile systems, all made in the United States. [5, 16] This segment represents a significant and growing portion of the company's business, aiming to be a key supplier for defense technology. [16]
Palladyne Commercial
This part of the business focuses on selling its AI software to non-military industries like manufacturing, logistics (the business of moving and storing goods), and energy. [4, 6] Its main product, Palladyne IQ, is software that can be installed on existing industrial robots to give them the ability to learn new tasks and handle unexpected changes, like sorting different kinds of parts. [4, 6] Another product, Palladyne Pilot, allows a company to manage a whole fleet of drones or vehicles, making them work together as a coordinated team for tasks like facility surveillance. [4]
What management is betting on now
The company's main strategy is to lead in "embodied AI," which means making machines intelligent on their own, without relying on a remote data center. [5, 7] A huge bet is on their new Palladyne Defense division, which is vertically integrated (a business model where a company controls its entire production process, from raw materials and design to the final product). [5, 16] They are focusing on providing the U.S. military with intelligent, autonomous systems that are designed and built entirely in America. [7, 8] Management believes that making robots and drones that can collaborate and make decisions in complex, high-stakes environments is a major opportunity for growth. [14]
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-4.51M
FY2024 Q4
$-5.14M
FY2025 Q1
$-7.61M
FY2025 Q2
$-5.33M
FY2025 Q3
$-6.67M
FY2025 Q4
$-8.74M
FY2026 Q1
$-10.27M
FY2026 Q2
$-11.02M
Revenue
$5.78M
Net income
$-12.33M
Diluted EPS
-0.27
Operating cash flow
$-10.16M
Free cash flow
$-11.02M
Fetching…
Sources
Revenue
$3.54M
Net income
$-12.61M
Diluted EPS
-0.28
Operating cash flow
$-10.24M
Free cash flow
$-10.27M
Fetching…
Sources
Revenue
$1.66M
Net income
$-1.49M
Diluted EPS
-0.02
Operating cash flow
$-8.51M
Free cash flow
$-8.74M
Fetching…
Sources
Revenue
$860.00K
Net income
$-3.74M
Diluted EPS
-0.09
Operating cash flow
$-6.29M
Free cash flow
$-6.67M
Fetching…
Sources
Revenue
$1.01M
Net income
$-7.49M
Diluted EPS
-0.20
Operating cash flow
$-5.33M
Free cash flow
$-5.33M
Fetching…
Sources
Revenue
$1.71M
Net income
$22.76M
Diluted EPS
0.55
Operating cash flow
$-7.52M
Free cash flow
$-7.61M
Fetching…
Sources
Revenue
$761.00K
Net income
$-52.97M
Diluted EPS
-1.96
Operating cash flow
$-5.10M
Free cash flow
$-5.14M
Fetching…
Sources
Revenue
$871.00K
Net income
$-7.10M
Diluted EPS
-0.27
Operating cash flow
$-4.50M
Free cash flow
$-4.51M
Fetching…
Sources
Is it cheap or expensive?
Fair value — vs current price $5.39
We couldn't calculate a fair value right now.
Is it drowning in debt?
Healthy
Net cash $33.2M - more cash than debt. Interest coverage -16.7x.
Net debt
$-33.19M
Interest coverage
-16.67x
Palladyne AI Corp.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
PDYN
BASELINE
Palladyne AI Corp.
Total debt $10.56M Interest coverage -16.67x This is the baseline the peer rows are being compared against.
Total debt $128.81B Interest coverage 50.88x This peer still has a real interest-payment cushion, while PDYN does not.
Total debt $120.79B Interest coverage 175.32x This peer still has a real interest-payment cushion, while PDYN does not.
Total debt $38.86B Interest coverage 503.42x This peer still has a real interest-payment cushion, while PDYN does not.
Total debt $211.40M Interest coverage 407.50x This peer still has a real interest-payment cushion, while PDYN does not.
Total debt $2.76B Interest coverage -172.95x Neither company has much profit cushion over interest right now.
What you should know
The case for and against PDYN
1 Reward
1 Risk
Rewards
-
Revenue grew 125.7% last year.
Risks
-
Return on equity was -48.4% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
-7.38x
P/B
3.74x
P/S
22.46x
EV/EBITDA
-5.74x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
28.7%
Operating margin
-231.9%
Net margin
-254.7%
ROE
-48.4%
ROA
-30.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.15x
Current ratio
6.30x
Quick ratio
5.98x
Total debt
$10.56M
Total cash
$43.75M
Growth
How the business has been compounding
Revenue TTM
$11.84M
Revenue 5Y CAGR
0.8%
EPS TTM
-0.71
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-35.20M
Free CF TTM
$-28.35M
FCF margin
-239.4%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
—