Q4 2025 Financial Highlights EX-99.1 2 airsp_ex991.htm PRESS RELEASE EXHIBIT 99.1 Net Revenue Increase of 102% and Gross Margin Increase of 169% as Compared to Q4 of the Prior Year Airship AI Reports Fourth Quarter 2025 Financial Results Cash flow positive business operations for the quarter. Fourth Quarter 2025 Net Revenues of $6.5 Million, Gross Profit of $3.3 Million and Gross Margin of 51.2% Redmond, WA – February 17th, 2026 – Airship AI Holdings, Inc. (NASDAQ: AISP) ("Airship AI" or the "Company"), a l ...

分组1 - Airship AI Holdings, Inc. reported a quarterly loss of $0.01 per share, consistent with the Zacks Consensus Estimate, compared to a loss of $0.10 per share a year ago [1] - The company posted revenues of $6.49 million for the quarter ended December 2025, missing the Zacks Consensus Estimate by 0.09%, and this represents an increase from revenues of $3.21 million a year ago [2] - The stock has underperformed the market, losing about 15.9% since the beginning of the year, while the S&P 500 has declined by only 0.1% [3] 分组2 - The earnings outlook for Airship AI Holdings, Inc. is uncertain, and future stock performance will depend on management's commentary during the earnings call [3][4] - The current consensus EPS estimate for the upcoming quarter is -$0.01 on revenues of $6.4 million, and for the current fiscal year, it is $0.05 on revenues of $36 million [7] - The Zacks Industry Rank indicates that the Technology Services sector is in the bottom 41% of over 250 Zacks industries, suggesting potential challenges for stock performance [8]

Stock Performance and Ownership - Airship AI's common stock was last reported at $2.43, with public warrants having an exercise price of $4.50, indicating potential liquidity issues for warrant holders [205]. - Approximately 38.6% of the voting power is controlled by co-founders Victor Huang and Derek Xu, which may limit shareholder influence on corporate matters [194]. - The concentration of stock ownership may adversely affect the market price of common stock and deter potential acquirers from pursuing control of the company [196]. - The company is classified as a "smaller reporting company" and "emerging growth company" under U.S. federal securities laws, which may make its common stock less attractive to investors due to reduced reporting requirements [210]. - The company will remain a smaller reporting company until the market value of its common stock held by non-affiliates exceeds $250 million or annual revenues exceed $100 million and market value exceeds $700 million [211]. - The company will remain an emerging growth company until it has total annual gross revenue of at least $1.23 billion or issues more than $1 billion in non-convertible debt securities during the prior three-year period [212]. Financial Condition and Liabilities - The company has not capitalized any software development costs for the years ended December 31, 2025, and 2024, indicating a focus on operational expenses rather than capital investments [190]. - Airship AI is subject to significant tax liabilities and uncertainties, which could adversely affect its financial condition and results of operations [187]. - Changes in tax laws, such as those enacted by the 2017 Tax Cuts and Jobs Act, may impact the company's financial reporting and tax liabilities [189]. - The company faces risks related to limited insurance coverage, which may not fully protect against third-party claims, potentially impacting financial stability [186]. Corporate Governance and Legal Matters - The company does not intend to pay cash dividends in the foreseeable future, with any returns on investment expected to come from increases in stock value [203]. - The company is subject to extensive public company reporting requirements, which may strain resources and divert management's attention from core business activities [197]. - Anti-takeover provisions in the company's charter and bylaws could impair a takeover attempt, potentially limiting stockholders' opportunities to receive a premium for their shares [213]. - The company's charter requires that certain stockholder litigation matters be brought in the Court of Chancery of the State of Delaware, which may limit stockholders' ability to obtain a favorable judicial forum [216]. - The choice of forum provision may discourage lawsuits and result in increased costs for investors to bring claims against the company [217]. Market Conditions - The market price of Airship AI's equity securities may be volatile, influenced by various factors including operational performance and market conditions [204].

Fourth Quarter 2025 Net Revenues of $6.5 Million, Gross Profit of $3.3 Million and Gross Margin of 51.2% Net Revenue Increase of 102% and Gross Margin Increase of 169% as Compared to Q4 of the Prior Year Cash flow positive business operations for the quarter. REDMOND, Wash., Feb. 17, 2026 (GLOBE NEWSWIRE) -- Airship AI Holdings, Inc. (NASDAQ: AISP) (“Airship AI” or the “Company”), a leader in AI-driven video, sensor, and data management surveillance solutions, today reported its financial and operational ...

Core Insights - The article emphasizes the importance of the AI infrastructure and software development ecosystem for the future expansion of AI, highlighting investment opportunities beyond major chip manufacturers [1] Company Summaries Airship AI Holdings (NASDAQ:AISP) - Airship AI is a provider of AI software, hardware, and services, currently leveraging its cloud-based software ecosystem for video, data, and sensor management, with a focus on government contracts [2] - The company anticipates a 30% year-over-year revenue growth, with a current business pipeline estimated at $135 million, primarily from government-funded public safety projects [2] - Despite a year-to-date net income of approximately $6.5 million, the company faces challenges, including a $1.2 million underperformance compared to Q3 2024 and a 72% decline in gross profit due to federal budget uncertainties [3][4] Total Site Solutions (TSS) - TSS provides end-to-end data center integration services, focusing on hardware solutions, and is profitable while scaling with a major US-based IT OEM client [5] - Year-to-date revenues nearly doubled to $184.8 million, with $75.5 million in cash and equivalents and $19.1 million in operating cash flow as of Q3 [6] - The company trades at a discount compared to peers, but its revenue is heavily reliant on a limited customer base, posing a risk for investors [6] Veritone - Veritone is a leading provider of enterprise-level AI software and services, serving over 3,000 clients globally and employing over 430 people as of Q3 [7] - The company's primary revenue generator is software and related services, reaching $29.1 million in Q3, a $7.1 million increase from Q3 2024, but it still faces a 54% operating loss margin [8] - Management is working on improving the balance sheet by repaying senior secured term loan debt and retiring 50% of existing convertible notes, which is expected to reduce annual debt service costs by around $13 million [8] Conclusion - Airship AI, TSS, and Veritone are positioned to benefit from the AI boom, each offering unique products and services with varying risk profiles, making them attractive options for investors seeking high risk/reward opportunities in the AI infrastructure space [10]

Core Viewpoint - Airship AI's Q4 stock price correction is seen as excessive, presenting a buying opportunity for investors, especially given recent insider buying activity [2][4]. Financial Performance - The Q3 earnings report raised concerns due to one-off factors such as the impact of the change in the Trump administration, government staff downsizing, and the government shutdown, which affected AISP's business operations [3]. - The company has a robust pipeline valued at $166 million linked to a single government client, expected to close within 18-24 months, potentially leading to over 1000% revenue growth compared to the 2025 forecast [4]. Insider Activity - Significant insider purchases occurred in November, with CEO Victor Huang and another director buying shares, indicating strong internal confidence in the company's future [2][5]. - Victor Huang reportedly owns up to 12% of the stock through personal and family holdings, while total insider ownership ranges from 30% to 40% [4]. Market Dynamics - The stock is facing volatility due to high short interest, which was near 20% as of mid-November, and a lack of analyst coverage, with recent ratings being negative [6]. - The potential for a short squeeze exists if a strong catalyst emerges, which could significantly impact the stock price [6].

Financial Performance - Q3 2025 net revenues were $1.2 million, with a gross profit of $0.6 million and a gross margin of 51%[4] - Operating loss for the quarter was $2.9 million, primarily due to increased investments in sales and marketing[4] - Net income for Q3 2025 was $6.4 million, or $0.20 per basic share, mainly due to noncash income of $8.8 million[4] - Net revenues for the nine months ended September 30, 2025, were $6,360,807, compared to a net loss of $7,288,520 for the same period in 2024[20] - Gross profit for the nine months ended September 30, 2025, was $4,371,357, while total operating expenses were $10,974,376, resulting in an operating loss of $6,603,019[18] - Basic net income per share for the nine months ended September 30, 2025, was $0.20, while diluted net income per share was $0.15[18] - The total comprehensive income for the nine months ended September 30, 2025, was $6,353,398, compared to a loss of $7,279,182 in 2024[18] Cash Flow and Liquidity - Cash and cash equivalents as of September 30, 2025, were $5.8 million, with an additional $9.7 million raised from warrant exercises post-quarter[4] - Cash and cash equivalents at the end of the period were $5,755,661, down from $11,414,830 at the beginning of the period[21] - The company experienced a net cash used in operating activities of $4,502,421 for the nine months ended September 30, 2025[21] - The company reported a decrease in cash and cash equivalents of $5,651,760 for the nine months ended September 30, 2025[21] - The company issued common stock for earnout shares amounting to $5,282,125 during the reporting period[21] Business Development and Opportunities - The validated pipeline at the end of Q3 2025 was approximately $166 million, with expected award timeframes over the next 18-24 months[4] - The company closed approximately $11 million in new opportunities by the end of Q3 2025, most scheduled to ship in Q4 2025 and early 2026[7] - The company plans to release new Outpost AI product offerings and expand custom-trained AI models for emerging edge analytic workflows[8] - Airship AI is focusing on brand awareness and engagement in new verticals through targeted marketing and industry events[8] Strategic Outlook - The company aims to return to positive operational cash flow while navigating uncertainties related to federal funding and government shutdowns[9] Research and Development - Research and development expenses for the nine months ended September 30, 2025, were $2,213,182, compared to $2,471,872 for the same period in 2024[18] Government Funding - The Big Beautiful Bill includes over $70 billion in supplemental funding for U.S. Customs and Border Protection, with $6.2 billion earmarked for border security technology[9]

Core Insights - Airship AI Holdings, Inc. reported net revenues of $1.2 million and gross profit of $0.6 million for Q3 2025, with a gross margin of 51% [1][4] - The company faced challenges due to changes in the federal acquisition process and a government shutdown, which slowed contracting activity, particularly within the Department of Homeland Security [4][7] - The total validated pipeline at the end of the quarter was approximately $166 million, indicating potential growth opportunities in the coming months [4][7] Financial Highlights - Net income for Q3 2025 was $6.4 million, or $0.20 per basic share, primarily due to noncash income of $8.8 million [4][18] - Operating loss for the quarter was $2.9 million, attributed to increased investments in sales and marketing [4][9] - Cash and cash equivalents stood at $5.8 million as of September 30, 2025, with an additional $9.7 million raised from warrant exercises post-quarter [4][8] Operational Highlights - The company closed approximately $11 million in new opportunities by the end of Q3 2025, with most scheduled to ship in Q4 2025 and early 2026 [7][9] - Airship AI continued to expand its sales and operational teams to support existing and anticipated awards [4][5] - The company participated in multiple industry tradeshows, enhancing visibility and engagement in the market [8] Market Outlook - The new U.S. Border Security Administration is expected to provide macro tailwinds for 2025 and beyond, with significant funding allocated for border security technology [7] - The legislation includes over $70 billion in supplemental funding for U.S. Customs and Border Protection, with a focus on AI and innovative technologies [7] - The company anticipates that delayed opportunities will move forward as the government enters its new fiscal year, reinforcing a positive medium-term outlook [7][9]

Financial Performance - For the three months ended September 30, 2025, net revenues decreased by $1,691,000 to $1,177,000, a decline of 59.0% compared to $2,868,000 in the same period of 2024 [182]. - Gross profit for the same period was $603,000, down 72.0% from $2,154,000 in Q3 2024 [182]. - Operating loss for the three months ended September 30, 2025, was $2,867,000, an increase of 80.7% compared to a loss of $1,587,000 in Q3 2024 [182]. - Net revenues for the nine months ended September 30, 2025 decreased by $11,017,000 to $8,827,000, a decline of 55.5% compared to $19,844,000 for the same period in 2024 [192]. - Operating loss for the nine months ended September 30, 2025 was $6,603,000, compared to an operating loss of $2,014,000 for the same period in 2024, an increase of $4,589,000 [193]. - Net income for the nine months ended September 30, 2025 was $6,361,000, compared to a net loss of $7,289,000 for the same period in 2024, representing a turnaround of $13,650,000 [201]. - Other income for the nine months ended September 30, 2025 was $12,964,000, compared to other expense of $5,275,000 for the same period in 2024, an increase of $18,239,000 [199]. Expenses - Research and development expenses for the three months ended September 30, 2025, were $753,000, a 29.9% decrease from $1,074,000 in the same period of 2024 [182]. - Research and development expenses for the nine months ended September 30, 2025 decreased by $259,000 to $2,213,000, a decline of 10.5% compared to $2,472,000 for the same period in 2024 [197]. - Selling, general and administrative expenses for the nine months ended September 30, 2025 increased by $69,000 to $8,761,000, a slight increase of 0.8% compared to $8,830,000 for the same period in 2024 [198]. Liabilities and Backlog - The backlog as of October 6, 2025, was approximately $11 million, representing firm fixed price contracts awarded in Q3 2025 [157]. - The total liabilities measured at fair value as of September 30, 2025, were $39,430,170, down from $57,485,426 as of December 31, 2024 [173]. Cash Flow and Liquidity - Net cash used in operating activities for the nine months ended September 30, 2025 was $4,502,000, primarily related to net income of $6,361,000 and noncash items of $11,339,000 [204]. - Liquidity assessment indicates no substantial doubt about the company's ability to continue as a going concern, with an accumulated deficit of $68.6 million as of September 30, 2025 [203]. Real Estate and Leases - The company entered into a lease for 15,567 square feet of office and warehouse space in Redmond, WA, starting October 1, 2023, with monthly payments of $25,000 [208]. - The company entered into an office lease in Mooresville, North Carolina, for 5,240 square feet with a net monthly payment of $9,105, expiring on January 31, 2028, with a 3% increase in payment starting February 1, 2026 [209]. Accounting and Reporting - The consolidated financial statements are prepared in accordance with U.S. GAAP, requiring estimates and assumptions that could differ materially from actual results due to economic uncertainties [212]. - The significant accounting policies have not materially changed from those discussed in the Annual Report for the year ended December 31, 2024 [213]. - The company does not have applicable quantitative and qualitative disclosures about market risk as it is classified as a smaller reporting company [214]. Other Financial Metrics - The company reported a gain from the change in fair value of the earnout liability of $3,893,000, down 29.4% from $5,512,000 in the previous year [182]. - The gain from the change in fair value of warrant liability was $5,331,000, an increase of 115.7% compared to $2,471,000 in Q3 2024 [182]. - Cost of net revenues for the nine months ended September 30, 2025 decreased by $6,100,000 to $4,456,000, a reduction of 57.8% compared to $10,556,000 for the same period in 2024 [195]. - There are no off-balance sheet arrangements that are likely to materially affect the company's financial condition, revenue, or expenses [210].

Core Insights - Airship AI Holdings Inc. has secured 16 contracts from various government agencies, including the Department of Justice and the Department of Homeland Security, highlighting its position as a promising AI stock under $20 [1][2]. Group 1: Company Overview - Airship AI Holdings Inc. specializes in AI-driven surveillance and data management platforms for government, defense, and commercial sectors [3]. - The company's technology processes data from multiple sources, such as video cameras and sensors, to identify and extract critical information like license plates and aircraft tail numbers [3]. Group 2: Contract Details - The 16 federal contracts are aimed at utilizing Airship's AI-driven video, sensor, and data management solutions to improve public safety and investigative capabilities [2]. - The contracts reflect a growing demand for AI-driven surveillance solutions, which are seen as essential for enhancing operational efficiency, accuracy, and threat detection in law enforcement [3]. Group 3: Market Context - The increasing focus on national security by the administration is driving the demand for AI technologies, positioning Airship AI as a key player in this sector [3].