XTI Aerospace Reports First Quarter 2026 Results
Rhea-AI Summary
XTI Aerospace (Nasdaq: XTIA) reported first quarter 2026 revenue of $27.7 million, gross profit of $5.1 million and gross margin of 18.6%. Net loss from continuing operations was $31.7 million, largely impacted by a $21.4 million non-cash warrant liability charge.
For 2026, XTI targets revenue ≥$160 million, gross margin of 19–21%, breakeven cash flow in Q3, second-half adjusted EBITDA of $2–3 million+, year-end cash of $15–17 million, and ABL availability of $5–10 million.
AI-generated analysis. Not financial advice.
Positive
- Q1 2026 revenue of $27.7 million from continuing operations
- 2026 revenue guidance of at least $160 million
- Adjusted EBITDA loss improved from about -$10 million to about -$5 million quarter-over-quarter
- Secured $20 million ABL credit facility plus $7.4 million warrant exercise proceeds
- Guidance for breakeven cash flow in Q3 2026 and positive thereafter
- Second-half 2026 consolidated adjusted EBITDA guidance of $2–3 million or greater
Negative
- Q1 2026 net loss from continuing operations of $31.7 million
- Pro forma revenues down 9% year-over-year and gross profit down 29%
- Gross margin declined to 18.6% from 23.6% on a pro forma basis
- Total operating expenses of $15.5 million versus gross profit of $5.1 million
- General and administrative expenses increased to $11.7 million from $6.8 million year-over-year
- Non-cash loss of $21.4 million from change in fair value of warrant liability
News Market Reaction – XTIA
On the day this news was published, XTIA declined 3.26%, reflecting a moderate negative market reaction. Argus tracked a peak move of +2.6% during that session. Argus tracked a trough of -13.6% from its starting point during tracking. Our momentum scanner triggered 9 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $2M from the company's valuation, bringing the market cap to $72.52M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Before this earnings release, XTIA was down 2.65%. Among key aerospace/defense peers, several were also negative (e.g., SIF -2.51%, SIDU -2.69%, CVU -4.09%, KITT -0.5%), while PRZO gained 2.71%, suggesting mixed but generally soft sector sentiment rather than a clean, sector-wide move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| May 12 | Earnings webcast notice | Neutral | +2.2% | Announced timing and format of upcoming Q1 2026 earnings webcast. |
| Apr 15 | Full-year 2025 earnings | Neutral | +14.1% | Reported 2025 results post-Drone Nerds deal and reiterated 2026 revenue outlook. |
| Apr 10 | Earnings webcast notice | Neutral | -5.4% | Set schedule for Q4 and full-year 2025 results and related webcast. |
| Nov 19 | Q3 2025 results | Positive | -4.3% | Detailed Q3 2025 milestones, financing, and Drone Nerds acquisition progress. |
| Aug 14 | Q2 2025 results | Positive | -2.8% | Reported Q2 2025 results and TriFan 600 development and financing progress. |
Recent earnings-related headlines have produced relatively modest and mixed single-day moves, with some positive operational updates met by negative price reactions.
Over the past year, XTI Aerospace has used earnings and related updates to communicate its transition toward drones and unmanned systems and to integrate the Drone Nerds acquisition. Prior results highlighted strong pro forma revenue growth but persistent net losses and capital raises. Scheduling webcasts around these events has become standard. This first-quarter 2026 release continues that pattern, combining detailed financials, updated guidance for 2026, and emphasis on cost controls and liquidity after divesting the Inpixon RTLS business.
Historical Comparison
Past earnings-related headlines moved XTIA by an average of 0.76% over one day. The pre-news move of -2.65% into this Q1 2026 report was larger than that typical earnings-day magnitude.
Earnings communications have traced XTI’s shift from aircraft development toward drones and unmanned systems, from Q2 and Q3 2025 updates through full-year 2025 results and now the first full quarter incorporating Drone Nerds with divested Inpixon operations.
Regulatory & Risk Context
An effective S-3 shelf dated 2026-01-15 covers resale of up to 18,031,466 existing shares. XTI Aerospace is not selling shares under this registration and does not receive proceeds; sales are by existing holders and could add selling pressure as they choose to exit positions.
Market Pulse Summary
This announcement outlines XTI Aerospace’s first quarter 2026 as a transitional period: revenue reached $27.7M with gross margin of 18.6%, while net loss from continuing operations was about $31.7M. Management reaffirmed 2026 targets, including $160M+ revenue, 19%–21% gross margin, and breakeven cash flow in Q3. Investors may watch execution around cost reductions, use of the $20M ABL facility, progress toward positive adjusted EBITDA, and potential selling from holders of the 18,031,466 registered resale shares.
Key Terms
ebitda financial
adjusted ebitda financial
asset-based lending financial
abl financial
pro forma financial
gaap financial
warrant liability financial
regulation s-x regulatory
AI-generated analysis. Not financial advice.
2026 first quarter highlights (Inpixon results excluded and reflected in discontinued operations):
- Revenue of
$27.7 million - Gross profit of
$5.1 million - Gross profit as a percentage of revenue of 18.6 percent
2026 Financial Outlook and Guidance(1):
The Company expects to achieve the following targets for the full year 2026:
- Full year 2026 revenue of
$160 million - Full year 2026 gross profit as a percentage of revenue of 19 percent to 21 percent
- Breakeven cash flow in the third quarter 2026
- Cash at year-end in the range of
$15 million $17 million - Drone Nerds earnings before interest, income taxes, depreciation and amortization ("EBITDA") as a percentage of revenue in the range of 9 percent to 10 percent
- End 2026 with
$5 million $10 million - Second-half of 2026 consolidated adjusted EBITDA in the range of
$2 million to$3 million or greater
(1) Please refer to the "Non-GAAP Measures" and Schedule 1 for the definitions and reconciliations of our Non-GAAP financial measures including "Adjusted EBITDA".
2026 first quarter events:
- In February 2026, completed the divestiture of the Inpixon RTLS business to further streamline the Company's focus on its drone platform and core growth initiatives
- In February 2026, secured
$20 million - Received approximately
$7.4 million - Appointed Clinton Weber and Jonathan Ornstein to XTI's Board of Directors, further enhancing the Board's aviation, aerospace and unmanned systems experience
"We believe the first quarter demonstrated continued progress in repositioning XTI Aerospace around a more scalable and financially disciplined operating model," said Scott Pomeroy, Chairman and Chief Executive Officer of XTI Aerospace. "Drone Nerds continued to expand its enterprise and government engagement, pipeline activity strengthened entering the second quarter, and we continued executing against our cost reduction and operational efficiency initiatives. Our focus remains on disciplined execution, margin improvement, liquidity management, and building long-term shareholder value."
Liquidity and Capital Resources
As of March 31, 2026, the Company had
The Company expects to end the year between
In addition, the Company expects to have between
Based on management's current operating plans and assumptions, including expected cash flows from the Drone Nerds business and availability under the Company's ABL credit facility, the Company believes its existing sources of liquidity are intended to support the ordinary-course operating needs of the Drone Nerds business. The Company may, however, require or seek additional capital to support strategic acquisitions and to address the Company's overall capital structure.
Unaudited Supplemental Combined Financial Information
For purposes of this release, the Company defines "pro forma" as unaudited supplemental combined financial information.
The Company has provided unaudited supplemental financial information of the combined company in this press release. The following financial information combines XTI and Drone Nerds historical operating results as if the businesses had been operated together on a combined basis during prior periods. This financial information is intended to illustrate the current operating footprint of the Company following the acquisition of Drone Nerds and divestiture of the Company's Industrial IoT / Real-Time Location Systems business.
The unaudited supplemental combined financial information is not "pro forma" financial information as that term is used in Article 11 of Regulation S-X. The unaudited supplemental combined financial information was not prepared in accordance with Article 11 of Regulation S-X and differs from the unaudited pro forma condensed combined financial information included in the Current Report on Form 8-K/A filed with the SEC on February 9, 2026 (the "Pro Forma 8-K Filing"), which was prepared in accordance with Article 11 of Regulation S-X. The unaudited supplemental combined financial information was not prepared in accordance with Article 11 of Regulation S-X and is presented for illustrative purposes to assist investors in understanding the operational performance of the combined business, timing and operational impact of the acquisition, and integration of the combined business, and should not be considered a substitute for the pro forma financial information included in the Company's prior filings prepared in accordance with Article 11 of Regulation S-X.
Consequently, the unaudited supplemental combined financial information is intentionally different from, but does not supersede, the pro forma financial information set forth in the Pro Forma 8-K Filing or the pro forma financial information set forth in the Company's most recent annual report on Form 10-K
In addition, the unaudited supplemental combined financial information does not purport to indicate the results that actually would have been obtained had the companies been operated together during the periods presented, or which may be realized in the future. The unaudited supplemental combined financial information has no impact on XTI's or Drone Nerds' previously reported consolidated balance sheets or statements of operations, cash flows or equity.
XTI Aerospace, Inc. and Subsidiaries | ||||||||||||||||
For the Three Months Ended March 31, | ||||||||||||||||
2026 | 2025 | |||||||||||||||
(in thousands, except percentages) | Amount | Amount | $ Change | % Change | ||||||||||||
Revenues | $ | 27,696 | $ | 30,587 | $ | (2,891) | (9) | % | ||||||||
Gross profit | 5,146 | 7,228 | (2,082) | (29) | % | |||||||||||
Gross profit % | 18.6 | % | 23.6 | % | (5.0) | % | (21) | % | ||||||||
Net loss from continuing operations | (31,746) | (7,265) | (24,481) | (337) | % | |||||||||||
(1) For information on unaudited supplemental combined financial information presented, see the section titled "Unaudited Supplemental Combined Financial Information" in this press release. |
The unaudited supplemental combined financial information excludes non-recurring transaction-related costs associated with the Drone Nerds acquisition.
Conference Call and Webcast (Live Q&A Format)
The Company will post prepared remarks to the Investor Relations section of its website before the market opens on Thursday, May 14, 2026. These remarks are intended to provide additional detail and context regarding the Company's financial results and business update.
The Company will host a live webcast on Thursday, May 14, 2026 at 3:30 PM CT (4:30 PM ET), which will consist of a video-based question and answer session with Scott Pomeroy, Chief Executive Officer, Jeremy Schneiderman, Chief Executive Officer of Drone Nerds, and Brooke Turk, Chief Financial Officer. As part of this format, prepared remarks will not be read but will be available in the Investor Relations section of the Company's website at xtiaerospace.com under "IR News & Events."
Investors and analysts are invited to participate and may register in advance using this link: XTI Aerospace May 14 Earnings Webcast. The registration link is also available in the "Investor Relations" section of the Company's website under "IR News & Events." Dial-in information will be included upon registration.
The replay of the event will be publicly available to all investors in the Investor Relations section, under "IR News & Events" section of the Company's website at xtiaerospace.com following the conclusion of the question and answer session and will remain available for 30 days.
About XTI Aerospace, Inc.
XTI Aerospace, Inc. (Nasdaq: XTIA) is an aerospace company providing unmanned aircraft systems ("UAS") solutions through its commercial drone solutions division, operated through Drone Nerds, LLC and two development-stage divisions focused on autonomous defense systems and domestic manufacturing of unmanned systems components designed to support federal procurement and sourcing requirements. XTI's commercial drone solutions business provides hardware distribution, training, service, repair, and lifecycle support to enterprise, public safety and government customers.
XTI Aerospace is headquartered in
Cautionary Statement Regarding Forward-Looking Statements
This press release contains certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact contained in this press release are forward-looking statements.
Forward-looking statements may be identified by words such as "believe," "continue," "could," "would," "will," "expect," "intend," "plan," "target," "estimate," "project," or similar expressions. These statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied. Such risks include, but are not limited to, market adoption, regulatory requirements, supply chain conditions, technological development, integration of the acquired businesses, the Company's liquidity and ability to access additional capital on acceptable terms or at all, the Company's negative stockholders' equity and the sufficiency of its capital resources, and changes in applicable laws or regulations, customer demand variability and seasonal purchasing patterns, the Company's ability to achieve projected gross margins and operating cost reductions, working capital timing and inventory management, the outcome of pending legal proceedings involving the Company and its subsidiaries, the Company's ability to maintain relationships with key suppliers, restrictions and covenants under the Company's ABL credit facility, risks related to the Company's development-stage ADS and ATM divisions which have not generated revenues, and the potential for significant non-cash charges related to changes in the fair value of warrant liabilities as well as the other risks and uncertainties described in the Company's filings with the SEC. XTI undertakes no obligation to update any forward-looking statements to reflect subsequent events or circumstances, except as required by applicable law. Readers are encouraged to review the risk factors described in XTI's filings with the SEC, including its most recent Annual Report on Form 10-K and subsequent filings.
Non-GAAP Measures:
This press release contains certain financial measures that are not recognized under generally accepted accounting principles in
A reconciliation of these non-GAAP measures to the most directly comparable GAAP measures for historical periods is provided in Schedule 1. As noted above under "2026 Financial Outlook and Guidance," the Company is unable to provide a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP measures without unreasonable efforts due to the inherent difficulty in forecasting and quantifying certain reconciling items, including, without limitation, changes in the fair value of warrant liability.
The Company's 2026 financial outlook is based on management's current expectations and assumptions regarding customer demand, product availability, gross margin trends, operating cost levels, and the timing of working capital normalization. These targets are forward-looking statements and are subject to the risks and uncertainties described below and in the Company's filings with the
The Company has not provided a reconciliation of forward-looking Adjusted EBITDA or other forward-looking non-GAAP measures to the most directly comparable GAAP financial measures because certain reconciling items, including changes in the fair value of warrant liability and other items, depend on future events outside the Company's control and cannot be reasonably predicted or determined without unreasonable efforts. The variability of these items could have a significant and potentially unpredictable impact on future GAAP results.
Contacts:
General inquiries:
Email: contact@xtiaerospace.com
Web: https://xtiaerospace.com/contact
Investor Relations:
Dave Gentry, CEO
RedChip Companies, Inc.
Phone: 1-407-644-4256
Email: XTIA@redchip.com
XTI Aerospace, Inc. and Subsidiaries | |||||||||
For the Three Months Ended March 31, | |||||||||
2026 | 2025 | ||||||||
Revenues | $ | 27,696 | $ | — | |||||
Cost of Revenues | 22,550 | — | |||||||
Gross Profit | 5,146 | — | |||||||
Operating Expenses | |||||||||
Research and development | 1,197 | 1,124 | |||||||
Sales and marketing | 2,363 | 275 | |||||||
General and administrative | 11,746 | 6,796 | |||||||
Amortization of intangible assets | 230 | 8 | |||||||
Total Operating Expenses | 15,536 | 8,203 | |||||||
Loss from Operations | (10,390) | (8,203) | |||||||
Other (Expense) Income | |||||||||
Interest expense, net | (154) | (217) | |||||||
Loss on extinguishment of debt | — | (421) | |||||||
Warrant issuance expense | — | (2,016) | |||||||
Change in fair value of warrant liability | (21,447) | 503 | |||||||
Other income (expense), net | 245 | (344) | |||||||
Total Other (Expense) Income | (21,356) | (2,495) | |||||||
Loss from continuing operations before income taxes | (31,746) | (10,698) | |||||||
Income tax benefit | — | 15 | |||||||
Net loss from continuing operations, net of tax | (31,746) | (10,683) | |||||||
Loss from discontinued operations, net of tax | (3,252) | (2,189) | |||||||
Net loss | (34,998) | (12,872) | |||||||
Net income attributable to noncontrolling interest | (272) | — | |||||||
Net loss attributable to XTI Aerospace, Inc | (35,270) | (12,872) | |||||||
Less: Preferred stock dividends | (42) | (29) | |||||||
Net Loss Attributable to Common Stockholders | $ | (35,312) | $ | (12,901) | |||||
Net loss per share - basic and diluted: | |||||||||
Continuing operations | $ | (0.91) | $ | (3.16) | |||||
Discontinued operations | $ | (0.09) | $ | (0.64) | |||||
Net loss | $ | (1.00) | $ | (3.80) | |||||
Weighted Average Shares Outstanding, Basic and Diluted | 35,284,100 | 3,384,736 | |||||||
Net loss per share from continuing and discontinued operations is calculated based on net loss attributable to common stockholders. Preferred stock dividends and deemed dividends are allocated to continuing and discontinued operations on a proportional basis.
XTI Aerospace, Inc. And Subsidiaries | ||||||||||||||||
As of March 31, | As of December 31, | |||||||||||||||
Assets | ||||||||||||||||
Current Assets | ||||||||||||||||
Cash and cash equivalents | $ | 15,185 | $ | 16,696 | ||||||||||||
Accounts receivable, net of allowance for credit losses | 9,051 | 12,093 | ||||||||||||||
Inventories | 19,413 | 15,400 | ||||||||||||||
Prepaid expenses and other current assets | 6,688 | 3,989 | ||||||||||||||
Current assets of discontinued operations | — | 3,645 | ||||||||||||||
Total Current Assets | 50,337 | 51,823 | ||||||||||||||
Property and equipment, net | 417 | 385 | ||||||||||||||
Operating lease right-of-use asset, net | 1,677 | 2,965 | ||||||||||||||
Intangible assets, net | 9,108 | 9,338 | ||||||||||||||
Goodwill | 11,544 | 11,544 | ||||||||||||||
Note receivable | 4,330 | — | ||||||||||||||
Other assets | 929 | 403 | ||||||||||||||
Non-current assets of discontinued operations | — | 4,788 | ||||||||||||||
Total Assets | $ | 78,342 | $ | 81,246 | ||||||||||||
Liabilities | ||||||||||||||||
Current Liabilities | ||||||||||||||||
Accounts payable | $ | 3,413 | $ | 5,212 | ||||||||||||
Accrued expenses and other current liabilities | 6,879 | 6,165 | ||||||||||||||
Accrued interest | 342 | 391 | ||||||||||||||
Customer deposits | 2,480 | 3,071 | ||||||||||||||
Warrant liability | 64,895 | 22,561 | ||||||||||||||
Operating lease obligation, current | 682 | 550 | ||||||||||||||
Note payable-related party | 450 | — | ||||||||||||||
Short-term debt | 10,569 | 7,931 | ||||||||||||||
Income tax payable | 1,241 | — | ||||||||||||||
Current liabilities of discontinued operations | — | 1,722 | ||||||||||||||
Total Current Liabilities | 90,951 | 47,603 | ||||||||||||||
Long Term Liabilities | ||||||||||||||||
Note payable-related party | — | 450 | ||||||||||||||
Operating lease obligation, noncurrent | 1,020 | 2,427 | ||||||||||||||
Non-current liabilities of discontinued operations | — | 322 | ||||||||||||||
Total Liabilities | 91,971 | 50,802 | ||||||||||||||
Commitments and Contingencies | ||||||||||||||||
Representative and placement agent warrants, net of issuance costs | 2,701 | 2,701 | ||||||||||||||
Stockholders' Equity | ||||||||||||||||
Preferred Stock | — | — | ||||||||||||||
Series 4 Convertible Preferred Stock | — | — | ||||||||||||||
Series 5 Convertible Preferred Stock | — | — | ||||||||||||||
Series 10 Convertible Preferred Stock | — | 21,793 | ||||||||||||||
Common Stock | 38 | 33 | ||||||||||||||
Additional paid-in capital | 170,948 | 157,354 | ||||||||||||||
Accumulated other comprehensive income | — | 881 | ||||||||||||||
Accumulated deficit | (197,593) | (162,323) | ||||||||||||||
Total Stockholders' Equity | (26,607) | 17,738 | ||||||||||||||
Noncontrolling interest | 10,277 | 10,005 | ||||||||||||||
Total Equity | (16,330) | 27,743 | ||||||||||||||
Total Liabilities, Mezzanine Equity and Equity | $ | 78,342 | $ | 81,246 | ||||||||||||
XTI Aerospace, Inc. and Subsidiaries | ||||||||
For the Three Months Ended | ||||||||
2026 | 2025 | |||||||
Cash Flows Used in Operating Activities | ||||||||
Net loss | $ | (34,998) | $ | (12,872) | ||||
Adjustment to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization | 56 | 32 | ||||||
Amortization of intangible assets | 230 | 91 | ||||||
Amortization of right-of-use asset | 223 | 53 | ||||||
Non-cash interest (income), expense, net | (82) | 145 | ||||||
Stock-based compensation | 4,847 | 455 | ||||||
Impairment of intangible assets | — | 531 | ||||||
Loss on extinguishment of debt | — | 421 | ||||||
Warrant issuance expense | — | 2,016 | ||||||
Change in fair value of warrant liability | 21,447 | (503) | ||||||
Loss on disposal of Inpixon Business | 831 | — | ||||||
Other income | (250) | — | ||||||
Other | (2) | 3 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable and other receivables | 4,335 | 157 | ||||||
Inventories | (3,994) | (19) | ||||||
Prepaid expenses and other current assets | (2,729) | (594) | ||||||
Other assets | 12 | 348 | ||||||
Accounts payable | (1,854) | (624) | ||||||
Related party payables | — | (51) | ||||||
Accrued expenses and other current liabilities | 2,136 | (4,892) | ||||||
Accrued interest | (49) | 67 | ||||||
Deferred revenue | (416) | 46 | ||||||
Operating lease obligation | (197) | (52) | ||||||
Net Cash Used in Operating Activities | (10,454) | (15,242) | ||||||
Cash Flows Used in Investing Activities | ||||||||
Purchase of property and equipment | (131) | (45) | ||||||
Net cash paid on disposal of the Inpixon Business | (694) | — | ||||||
Net Cash Used in Investing Activities | (825) | (45) | ||||||
Cash Flows Provided by Financing Activities | ||||||||
Net proceeds from the exercise of liability classified warrants | 7,439 | 1 | ||||||
Net proceeds from sale of common stock and pre-funded warrants via public offerings | — | 21,651 | ||||||
Net proceeds from ATM stock offerings | — | 1,667 | ||||||
Redemptions of Series 9 Preferred Stock | — | (1,427) | ||||||
Net borrowings on line-of-credit | 4,638 | — | ||||||
Payment of debt issuance costs | (565) | — | ||||||
Repayments of promissory notes | (2,000) | (2,719) | ||||||
Net Cash Provided by Financing Activities | 9,512 | 19,173 | ||||||
Effect of Foreign Exchange Rate on Changes on Cash | 33 | 17 | ||||||
Net (Decrease) Increase in Cash and Cash Equivalents | (1,734) | 3,903 | ||||||
Cash and Cash Equivalents – Beginning of period | 16,919 | 4,105 | ||||||
Cash and Cash Equivalents – End of period | $ | 15,185 | $ | 8,008 | ||||
XTI Aerospace, Inc. and Subsidiaries | ||||||||||||||||
For the Three Months Ended March 31, 2025 | ||||||||||||||||
(in thousands) | GAAP | Drone Nerds | Transaction | Proforma | ||||||||||||
Revenues | $ | — | $ | 30,587 | $ | — | 30,587 | |||||||||
Cost of revenues | — | 23,359 | — | 23,359 | ||||||||||||
Gross profit | — | 7,228 | — | 7,228 | ||||||||||||
Operating expenses | 8,203 | 3,177 | 201 | a | 11,581 | |||||||||||
(Loss) income from operations | (8,203) | 4,051 | (201) | (4,353) | ||||||||||||
Other expense | (2,495) | (246) | (186) | b | (2,927) | |||||||||||
Net (loss) income, before tax | (10,698) | 3,805 | (387) | (7,280) | ||||||||||||
Income tax benefit | 15 | — | — | 15 | ||||||||||||
Net (loss) income | $ | (10,683) | $ | 3,805 | $ | (387) | $ | (7,265) | ||||||||
a) | Amortization of the purchase price allocation for intangible assets identified for Drone Nerds |
b) | Interest on the promissory notes issued as part of the Drone Nerds acquisition consideration |
Schedule 1
XTI Aerospace, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
EBITDA and Adjusted EBITDA
(In thousands)
(Unaudited)
EBITDA and Adjusted EBITDA
XTI Aerospace defines EBITDA as net income (loss) before interest, income taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted for certain items including, (i) non-cash stock-based compensation expense; (ii) severance and restructuring charges; (iii) change in the fair value of warrant liability; and (iv) selected charges that are unusual or non-recurring.
The Company believes that EBITDA and Adjusted EBITDA financial measures assist our board of directors, management, investors, and lenders in comparing our operating performance and establishing operational goals on a consistent basis across periods by removing the effects of our capital structure and other items that impact the comparability of financial results from period to period. We present EBITDA and Adjusted EBITDA because we believe they provide useful information regarding the factors and trends affecting our business in addition to measures calculated under GAAP. EBITDA and Adjusted EBITDA are non-GAAP financial measures and should not be considered in isolation or as a substitute for financial information provided in accordance with GAAP. These non-GAAP financial measures may not be computed in the same manner as similarly titled measures used by other companies. The most comparable GAAP financial measures, net income, and information reconciling the GAAP and non-GAAP financial measures are included in the table below:
For the Three Months Ended March 31, | |||||||||
2026 | 2025 | ||||||||
Net loss from continuing operations, net of tax, as reported (GAAP) | $ | (31,746) | $ | (10,683) | |||||
Interest expense, net | 154 | 217 | |||||||
Income tax benefit | — | (15) | |||||||
Depreciation and amortization | 279 | 19 | |||||||
EBITDA | (31,313) | (10,462) | |||||||
Non-cash stock-based compensation | 4,675 | 412 | |||||||
Severance and restructuring charges | 263 | — | |||||||
Change in fair value of warrant liability | 21,447 | (503) | |||||||
Selected charges that are unusual or non-recurring | — | 2,781 | a | ||||||
Adjusted EBITDA | $ | (4,928) | $ | (7,772) | |||||
a) | Consists of warrant issuance expense, change in fair value of investment, and loss on debt extinguishment |
For the Three Months Ended | |||||||||
March 31, 2026 | December 31, | ||||||||
Net loss from continuing operations, net of tax, as reported (GAAP) | $ | (31,746) | $ | (14,355) | |||||
Interest expense, net | 154 | 51 | |||||||
Income tax benefit | — | (4) | |||||||
Depreciation and amortization | 279 | 165 | |||||||
EBITDA | (31,313) | (14,143) | |||||||
Non-cash stock-based compensation | 4,675 | 4,405 | |||||||
Severance and restructuring charges | 263 | — | |||||||
Change in fair value of warrant liability | 21,447 | (2,684) | |||||||
Selected charges that are unusual or non-recurring | — | 2,039 | a | ||||||
Adjusted EBITDA | $ | (4,928) | $ | (10,383) | |||||
a) | Consists of the provision for credit loss on convertible promissory note receivable |
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SOURCE XTI Aerospace, Inc.