XTI Aerospace, Inc. (Nasdaq: XTIA) reported preliminary third-quarter revenue of $35.3 million for the period ended September 30, 2026, a figure that sits within its previously stated full-year outlook of $125 million to $130 million. The company, which operates Drone Nerds, LLC, noted that this revenue level raises questions about its ability to manage near-term liquidity while sustaining growth in the unmanned aircraft systems sector.
The preliminary results are unaudited and based on currently available information, subject to final financial closing procedures and review by the company's independent registered public accounting firm. Actual results may differ materially from these preliminary figures. The company's full-year revenue outlook was provided in its second-quarter results release earlier this week.
Jeremy Schneiderman, Interim Chief Executive Officer, stated that the third quarter saw an approximately 9% sequential increase from the second quarter of 2026. He attributed this growth to sustained demand for enterprise drone solutions and a broader range of products offered to customers in public safety, government, energy, infrastructure, agriculture, and commercial markets. Schneiderman indicated that this revenue growth, along with reductions in corporate overhead and lower cash burn achieved during the quarter, reflects progress on the company's plan.
Despite the revenue growth, Schneiderman acknowledged that the company continues to work on addressing near-term liquidity needs. These efforts include the restructuring of acquisition-related notes. XTI Aerospace operates as an aerospace and advanced technology platform and is the parent company of Drone Nerds, LLC. Drone Nerds serves commercial, enterprise, and government customers in sectors including public safety, agriculture, construction, and energy. The company supports customers across the drone program lifecycle, from hardware sourcing and deployment to training, service, repair, and its proprietary Always Flying program.
The company's press release includes a cautionary statement regarding forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially. Key risks cited include the company's ability to obtain a waiver of existing cross-defaults under its asset-based credit facility and to restructure or repay acquisition-related promissory notes before a limited waiver period expires. This waiver period may occur on ten days' notice from noteholders and no later than December 31, 2026. Additional risks include the possibility that lenders decline further advances or accelerate outstanding borrowings, substantial doubt about the company's ability to continue as a going concern, and the ability to maintain the listing of its common stock on Nasdaq.
Other identified risks involve the impact of Section 232 tariffs and other trade measures, pending regulatory inquiries and proceedings, and potential conflicts of interest arising from the Interim Chief Executive Officer's economic interest in holders of the acquisition-related notes. The company also faces risks related to market adoption, regulatory requirements, supply chain conditions, and technological development. Financial risks include negative stockholders' equity, the sufficiency of capital resources, and the ability to access additional capital on acceptable terms. The release notes that the wind-down of the ADS division and the development of the ATM division, which has not generated revenues, present additional risks. The company has negative stockholders' equity and faces potential significant non-cash charges related to changes in the fair value of warrant liabilities.