Airship AI Reports Fourth Quarter 2025 Financial Results

Financial Performance - For Q4 2025, the company reported net revenues of $6.5 million, a 102% increase compared to the same quarter of the previous year, and a gross profit of $3.3 million with a gross margin of 51.2% [1][5] - The operating loss for the quarter was $612,000, attributed to increased stock-based compensation and investments in sales and marketing [5] - Other income for the quarter was $23.6 million, primarily from a gain in the fair value of earnout liability ($14.5 million) and warrant liability ($9 million) [5] Operational Highlights - The company had a backlog of $3.3 million as of December 31, 2025, representing firm fixed-price contracts awarded in Q4 2025 [5] - The total validated pipeline at the end of the quarter was approximately $173 million, consisting of opportunities for AI-driven solutions across various customer verticals [5] - Significant contract awards included a $1.9 million contract from the Department of Homeland Security and a $2.8 million award from a large commercial customer [5] Management Commentary - The President of the company noted positive contracting momentum with federal agencies, despite some fiscal appropriation challenges [7] - The company is focused on improving gross margin percentages and aims to achieve cash flow positive operations by the end of 2026 [12] - The company is expanding its partner engagement activities, which have significantly increased its pipeline in both commercial and federal sectors [12] Product Development - The company launched its Agentic AI natural-language search tool called 'Ask Airship' to select customers, enhancing data interaction capabilities [11] - The company is expanding its edge AI capabilities across various platforms, including mobile autonomous platforms [13] - Continued innovation in the core Acropolis software platform is aimed at supporting new workflows for cloud-based deployments in secure environments [12]