XTI Aerospace posted $121.6 million in pro forma revenue for 2025 following its transformative acquisition of drone solutions provider Drone Nerds, according to financial results released Tuesday — a stark reversal for a company that generated zero revenue in 2024.

The Dallas-based aerospace and defense firm completed its approximately $40 million acquisition of Drone Nerds in November 2025, simultaneously securing a $25 million strategic investment from Unusual Machines (NASDAQ: UMAC). The deal reshaped XTI's business model overnight, converting it from a development-stage aircraft manufacturer into a revenue-generating drone distribution platform.

On a pro forma basis — treating the acquisition as if it had occurred at the start of 2024 — XTI reported full-year gross profit of $26.8 million at a 22% margin, according to the company's earnings release. That represents a 55% improvement over the prior year's combined gross profit of $17.3 million at a 15.6% margin.

However, the transformation came at a cost. Net loss from continuing operations widened to $39 million in 2025 from $23.9 million in 2024 on a pro forma basis, driven largely by merger-related transaction costs of $3.9 million and elevated general and administrative expenses that more than doubled year-over-year.

Fourth Quarter Shows Acquisition Impact

For the three months ended December 31, 2025 — XTI's first full quarter as owner of Drone Nerds — the company reported actual revenue of $22.5 million with gross profit of $4.9 million, representing a 21.9% margin. On a pro forma basis including pre-acquisition Drone Nerds results, fourth-quarter revenue totaled $41.7 million.

The quarterly figures mark XTI's debut as a commercial enterprise after years focused on developing its TriFan 600 vertical takeoff and landing aircraft. That project now sits within the company's restructured Autonomous Defense Systems division, which has yet to generate revenue but is pursuing military and government contracts.

"The acquisition of Drone Nerds transformed XTI Aerospace into a scaled, revenue-generating platform," said CEO Scott Pomeroy in a statement. "Drone Nerds is a leading enterprise-focused UAS solutions provider with deep customer relationships and a proven operating model that continues to deliver strong performance."

Three-Division Strategy Takes Shape

XTI has reorganized around three divisions following the Drone Nerds deal. The Commercial division, branded as XTI Drones and anchored by Drone Nerds, serves enterprise and government customers across drone sales, service, and support. The company emphasized that Drone Nerds' transaction data provides "unparalleled visibility into purchasing behavior across the unmanned systems industry."

The Autonomous Defense Systems (ADS) division — the renamed XTI Aircraft unit — focuses on unmanned platform design and integration for defense applications. The Advanced Technology and Manufacturing (ATM) division, still in formation, aims to establish U.S.-based production of NDAA-compliant drone components to serve domestic manufacturing requirements.

According to the company, it divested its Inpixon real-time location systems business to streamline focus on the drone platform. XTI also secured a $20 million asset-based lending facility with JPMorgan, subject to customary conditions and availability requirements.

Capital Position and Warrant Exercises

XTI reported $16.7 million in unrestricted cash and equivalents as of December 31, 2025. The company stated it does not currently expect to require additional capital for ordinary operations of the Drone Nerds business, though it may seek funding for strategic acquisitions and development of advanced systems.

After year-end, warrant holders exercised options to purchase nearly 4 million shares, generating approximately $7.7 million in net proceeds after advisor fees paid to ThinkEquity LLC.

The company also formed a strategic alliance with Valkyrie Intelligence LLC, including an investment and services agreement to leverage intelligence from Drone Nerds' industry data set.

Guidance Points to Continued Growth

For full-year 2026, XTI projects revenue of $160 million or greater — representing at least 32% growth over the 2025 pro forma figure. The company did not provide earnings guidance or detail expected margin progression.

Operating expenses totaled $47.7 million for 2025 on a pro forma basis, including $5.2 million in research and development, $5.6 million in sales and marketing, and $32.8 million in general and administrative costs. Merger-related transaction costs and intangible asset amortization added another $4.1 million.

XTI strengthened its board of directors with the appointments of Clinton Weber and Jonathan Ornstein, both bringing aviation and unmanned systems expertise.

The company noted that its pro forma financial information was not prepared in accordance with SEC Regulation S-X Article 11 and differs from pro forma statements filed previously. The supplemental data excludes non-recurring transaction costs and is intended to illustrate current operational performance rather than serve as a formal pro forma presentation.

XTI Aerospace shares trade on the Nasdaq under ticker symbol XTIA. The company is headquartered in Addison, Texas, and operates through its Drone Nerds subsidiary alongside its defense-focused and manufacturing divisions.