Palladyne AI (NASDAQ:PDYN) reported a significant year-over-year revenue increase for the fourth quarter of 2025, marking the beginning of a major operational transition toward becoming a mid-tier defense prime contractor.
For the quarter ended December 31, 2025, the Salt Lake City-based company posted revenue of $1.7 million, a 118% increase from the $0.8 million recorded in the same period last year.
While the company’s operating loss widened to $9.3 million due to heavy investments in its autonomy stack and recent acquisitions, its GAAP net loss saw a dramatic improvement, shrinking to $1.5 million from a $53 million loss in the prior-year period.
The year concluded with a "structural transformation" following the November acquisitions of GuideTech, Warnke Precision Machining, and MKR Fabricators.
These moves enabled the launch of Palladyne Defense, expanding the company’s reach from software into advanced avionics, UAV airframes, and certified U.S.-based manufacturing.
This integration is already showing results, with the year-end backlog reaching $13.5 million—a more than 30% increase since mid-November.