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what it is
It sells AI software that helps robots and unmanned machines work in messy real-world settings without constant human control.
how it gets paid
Last year Palladyne Ai made $5M in revenue. industrial robot software was the main engine at $1.6M, or 32% of sales.
why growth slowed
Revenue fell 32.6% last year. $4 million of quarterly revenue matters because one quarter now equals roughly 80% of the prior full-year revenue base.
what just happened
The quarter was all about revenue jumping to $4M, up 317% vs. prior year on a very small base.
At a glance
B balance sheet — gets the job done, barely
-$0.96 fy2024 eps est
$8M fy2024 rev est
n/a operating margin
2.15 beta
xvary composite: 47/100 — below average
What they do
It sells AI software that helps robots and unmanned machines work in messy real-world settings without constant human control.
Palladyne is trying to be the software layer inside other companies' robots, not the robot maker itself. That matters because its tools are built for minimal integration effort, which means your customer does not need to rebuild the whole machine to use them. With just 71 employees and only $9 million of long-term debt, it is small enough to move fast and light enough to survive mistakes.
How they make money
$5M
annual revenue · their business grew -32.6% last year
industrial robot software
$1.6M
cobot software
$0.8M
unmanned aerial vehicle software
$1.0M
unmanned ground vehicle software
$0.9M
remote vehicle autonomy software
$0.7M
The products that matter
ai software for industrial robots
Palladyne IQ
revenue not broken out
it's the first commercial product, but management does not break out sales. when total company revenue was only $5.2M in 2025, that missing detail matters.
commercial product
autonomy software for drones
SwarmOS
defense-facing
this is the defense angle in the story. the $24M–$27M 2026 target implies software like this starts converting into reported revenue fast.
2026 swing factor
services and other revenue
Service & Other
$1.3M · 25% of revenue
this was $1.3M in 2025 after falling 33%. it keeps the lights on, but it is not large enough to carry the valuation by itself.
small base
Key numbers
n/a
operating margin
Prior margin KPI failed sanity check — verify in filings. Operating margin → profit after running the business → so what: Palladyne burned about $6.18 for every $1 of revenue in 2024.
-$0.96
2024 EPS est
Estimated 2024 EPS improved from a -$4.51 loss in 2023 to -$0.96, which means losses narrowed, but you still do not own a profitable business.
$9M
long-term debt
Long-term debt equals just 3% of capital, so the balance sheet is not the main problem. The income statement is.
2.15
beta
Beta → how hard a stock swings versus the market → so what: this name trades more like a rumor than a mature software company.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 3 — safer than 50% of stocks
- price stability 5 / 100
- long-term debt $9M (3% of capital)
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for PDYN right now.
source: institutional data · return history unavailable
What just happened
beat estimates
The quarter was all about revenue jumping to $4M, up 317% vs. prior year on a very small base.
Revenue growth looked huge because the comparison point was tiny. The bigger picture is still rough: annual revenue was about $5 million and losses remain severe.
$4M
revenue
$0.29
eps
n/a
n/a
the number that mattered
$4 million of quarterly revenue matters because one quarter now equals roughly 80% of the prior full-year revenue base.
source: company earnings report, 2026
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What could go wrong
the #1 risk is turning the $24M–$27M 2026 revenue target into reported sales.
med
Commercialization miss
The company needs to move from $5.2M of 2025 revenue to $24M–$27M in 2026. After a 33% decline last year, that is a radical change in trajectory.
If that jump does not start showing up in quarterly results, the market is left valuing promises instead of sales.
med
Losses that dwarf revenue
PDYN reported a $49.7M net loss on $5.2M of revenue in 2025. That's a n/a net margin.
Even with only $9M of long-term debt, losses this large can force capital raises or delay the path to self-funded growth.
med
Thin disclosure on product economics
Management has not broken out revenue by Palladyne IQ versus SwarmOS, and the snapshot does not show gross margin targets for 2026.
That makes it hard to judge whether future revenue is high-quality software revenue or just one-off project activity.
At ~$322M market cap, this stock is priced for a business far larger than the current $5.2M revenue base. If the 2026 ramp slips, the narrative does too.
source: institutional data · regulatory filings · risk analysis
Pay attention to
the number that matters
quarterly revenue pace toward $24M–$27M
Management set the bar. You now need to see quarterly results build toward an annual run rate that supports that target.
calendar
may backlog realization
Management flagged May as a key conversion point. For a company this small, one delayed deal can move the whole year.
risk check
whether losses start shrinking relative to revenue
A business losing $49.7M on $5.2M of revenue does not need perfect margins overnight. It does need the gap to stop looking absurd.
trend
proof that product revenue is real demand
Both reported revenue buckets fell 33% last year. You want to see growth that looks repeatable, not just timing noise from a tiny base.
Analyst rankings
risk profile
average
risk rank 3 — typical risk profile — neither especially safe nor risky.
chart momentum
below average
momentum rank 4 — analysts see underperformance risk in the near term.
source: institutional data
Institutional activity
institutional ownership data for PDYN is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$6
current price
n/a
target midpoint · n/a from current
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