$XTIA earnings report

XTI Aerospace disclosed preliminary third-quarter revenue of $35.3 million for the quarter ended September 30, 2026. The Company characterized this result as in line with its 2026 revenue outlook of $125 million to $130 million. Management also described an approximately 9% sequential increase from the second quarter of 2026, although the filing does not provide the second-quarter revenue figure or a year-over-year comparison on the revenue line.

Management attributed the sequential revenue increase to continued demand for enterprise drone solutions and expanded product offerings. The cited demand areas were public safety, government, energy, infrastructure, agriculture and commercial markets. The filing presents no segment revenue, customer concentration, order, backlog, unit-volume, or geographic disclosures, so the composition and durability of the reported demand cannot be assessed from this release.

Management said the Company achieved reductions in corporate overhead and lower cash burn during the third quarter. However, the filing provides no gross margin, operating expense, operating income, net income, EPS, operating cash flow, free cash flow, cash balance, debt balance, or capital-return data. As a result, the release offers a preliminary revenue update rather than a full assessment of profitability, margin progression, cash consumption, or balance-sheet capacity.

Liquidity is the central issue in the filing. The Company said it continues to address near-term liquidity needs, including restructuring acquisition-related notes, and identified substantial doubt about its ability to continue as a going concern among its risks. It also identified risks related to cross-default waivers under its asset-based credit facility, potential limits on further lender advances or accelerated borrowings, negative stockholders’ equity, and capital-resource sufficiency. Investors should focus on final third-quarter results, the note restructuring or repayment process, credit-facility status, and quantified liquidity disclosures when available.

XTI’s supplemental combined business generated Q2 revenue of $32,449 (in thousands), up $7,319 (in thousands), or 29 %, from $25,130 (in thousands) in the 2025 pro forma comparison. The growth indicates increased activity at the current combined operating footprint centered on Drone Nerds. The company identified continuing demand across enterprise and government buyers and expanded its portfolio through the XREAL xbx a01+ addition and the DBOX partnership.

Revenue growth did not translate into improved gross profitability in the supplemental combined comparison. Gross profit was 5,643 (in thousands), down from 6,047 (in thousands), while gross profit percentage fell to 17.4 % from 24.1 %. The full-year gross-profit-percentage outlook of 17 percent to 19 percent places the reported quarter within the guided range, but the margin decline makes execution on product mix, supply conditions and tariff exposure important.

Consolidated GAAP operations remained loss-making. Q2 loss from operations was (9,082 ) (in thousands), following total operating expenses of 14,725 (in thousands), including 11,855 (in thousands) of general and administrative expense. Net loss was (2,450 ) (in thousands), with other income and expense materially affected by an 8,413 (in thousands) change in fair value of warrant liability. For the six months ended June 30, 2026, net cash used in operating activities was (21,008 ) (in thousands).

Liquidity remains the central constraint. Cash and cash equivalents were $7,214 (in thousands) at June 30, 2026, and preliminary unrestricted cash and cash equivalents were $5.1 million at September 30, 2026. The company cited $9.1 million of remaining borrowing-base availability, reported an $8,760 (in thousands) asset-based revolving line of credit balance, and disclosed cross-default, refinancing and going-concern risks. Management has reduced corporate and ADS costs and expects positive net cash provided by operating activities in the fourth quarter of 2026. The revenue outlook is $125 million to $130 million, subject to continued credit-facility access and no material further tariff-policy changes.

XTI Aerospace reported preliminary second-quarter revenue of approximately $32.4 million, gross profit of approximately $5.6 million and loss from operations of approximately $9.1 million. The release did not provide prior-year or prior-quarter figures, growth rates, margins, net income, EPS, or cash-flow measures, limiting assessment of underlying demand, mix and period-over-period performance. The figures are expressly preliminary and unaudited and remain subject to closing procedures and review by the Company's independent registered public accounting firm.

The central development was completion of the internal review initiated in July 2026. Management said no financial misstatements were discovered. The review was overseen by a special committee of independent directors with independent outside counsel, and the Company plans governance, policy and procedural enhancements under Board oversight.

Profitability remains the principal reported financial issue. The Company expects to report a loss from operations of approximately $9.1 million against gross profit of approximately $5.6 million. Because the filing contains no operating-expense breakdown, gross margin, net-loss or cash-flow data, it does not identify the cost categories or cash requirements underlying the operating loss.

The Company withdrew previously issued 2026 financial guidance and expects to provide a comprehensive update later. The release also identifies an expectation that the delayed Form 10-Q will disclose substantial doubt about XTI's ability to continue as a going concern. The Company said it is on track to file the Form 10-Q by October 26, 2026, making the final reported second-quarter results, going-concern disclosure and updated outlook the key forthcoming disclosures.

The release highlights filing and listing risk alongside operational uncertainty. It identifies potential inability to file the Form 10-Q or subsequent periodic reports, failure to satisfy Nasdaq continued-listing requirements, and possible trading suspension or delisting as risks. It also cautions that additional information could affect previously issued financial statements, disclosure controls and procedures, or internal control over financial reporting.