Financial Data and Key Metrics Changes - For fiscal year 2025, the company reported revenue of $123 million, reflecting a transition from a record fiscal 2024 to a more normalized revenue base, with a significant contribution from Gridspertise in the previous year [15][16] - In Q4 2025, revenue was $28.8 million, a sequential increase from $28.5 million in the prior quarter, and approximately 4% higher than Q4 2024 when excluding Gridspertise [17] - GAAP gross margin for Q4 was 40%, down from 43.5% in the prior quarter, but up from 38.1% in the year-ago period, while non-GAAP gross margin was 40.6% [17][18] - GAAP net loss for fiscal 2025 was $2.6 million, or $0.07 per share, compared to a net income of $400,000, or $0.01 per share in the year-ago quarter [19][20] - The company ended the fiscal year with cash and cash equivalents of $20.1 million, up from the prior quarter, and generated positive operating cash flow of $7.3 million for the year [21][22] Business Line Data and Key Metrics Changes - The core revenue base stabilized in the second half of fiscal 2025, driven by continued momentum in Edge IoT products [16][17] - The company is beginning to see traction in its Edge AI strategy, with visibility in fiscal 2026 improving due to momentum across strategic pillars [14][22] Market Data and Key Metrics Changes - The company sees a multi-year growth cycle for unmanned aerial systems, supported by record defense funding, with over $13 billion earmarked for unmanned platforms in 2026 [6][10] - Recent wins include a multi-year agreement with a major U.S. mobile carrier to modernize over 50,000 backup power systems, which is expected to contribute to high-margin annual recurring revenue [11][12] Company Strategy and Development Direction - The company is transitioning from a traditional hardware supplier to a strategic platform partner, focusing on high-margin business and deepening long-term relationships with customers [12][25] - The integration of the Netcomm IoT acquisition and partnership with Qualcomm is aimed at expanding capabilities in edge IoT and AI-driven innovation [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand environment for their solutions, highlighting strong early market feedback and expectations for revenue contributions from new partnerships [10][14] - The outlook for fiscal 2026 includes expected revenue in the range of $28.5 million to $30.5 million, with non-GAAP EPS projected between $0.02 and $0.04 per share [22] Other Important Information - The company has made significant progress in reducing costs and improving supply chain efficiency, with a focus on manufacturing products outside of China to minimize tariff exposure [18][19] - The company has streamlined operations and optimized its cost structure, resulting in a leaner operating model [20][25] Q&A Session Summary Question: What is the potential for the drone market? - Management is excited about the drone market, with over 10 different drone makers being worked with, primarily in military or industrial applications, and expects this market to grow significantly into fiscal 2026 [28][29] Question: What are the dynamics driving growth in September? - Management noted broad-based momentum across core business areas, including Edge IoT and networking, contributing to confidence in fiscal 2026 [30] Question: How will gross margins evolve over the next twelve months? - Management anticipates gross margins returning to 44% to 45% for the fiscal year, despite one-off items affecting margins in June [34][35] Question: Can you elaborate on the backup generator opportunity? - Management confirmed a significant mobile carrier win involving 50,000 gateways, with expectations for this to grow substantially over the next few years [41][42] Question: What is the average dollar content per device in the drone market? - The average dollar content per device is approximately $500, which could lead to meaningful revenue as volumes increase [48][49] Question: What is the expected revenue contribution from the drone market in fiscal 2026? - Management indicated that the drone market could contribute millions of dollars in fiscal 2026, with potential for it to become 10% to 15% of total revenue by fiscal 2027 [50][60]

Financial Data and Key Metrics Changes - For fiscal year 2025, the company reported revenue of $123 million, reflecting a transition from a record fiscal 2024 to a more normalized revenue base, with a significant contribution from Gridspertise in the previous year [16] - In Q4 2025, revenue was $28.8 million, a sequential increase from $28.5 million in the prior quarter, and approximately 4% higher than Q4 2024 when excluding Gridspertise [17] - GAAP gross margin for Q4 was 40%, down from 43.5% in the prior quarter, but up from 38.1% in the year-ago period [18] - GAAP net loss for fiscal 2025 was $2.6 million, or $0.07 per share, compared to a net income of $400,000, or $0.01 per share in the year-ago quarter [20] Business Line Data and Key Metrics Changes - The core revenue base stabilized in the second half of fiscal 2025, driven by continued momentum in Edge IoT products [16][17] - The company is transitioning from a traditional hardware supplier to a strategic platform partner, enhancing long-term relationships and embedding solutions in critical operations [13] Market Data and Key Metrics Changes - The company sees a multi-year growth cycle for unmanned aerial systems, supported by record defense funding, with over $13 billion earmarked for unmanned platforms in 2026 [6] - Recent wins include a multi-year agreement with a major U.S. mobile carrier to modernize over 50,000 backup power systems, which is expected to contribute to high-margin annual recurring revenue [12][13] Company Strategy and Development Direction - The company is focused on building a strong foundation for sustainable long-term growth, emphasizing Edge AI and infrastructure modernization [25] - Strategic partnerships, such as with Qualcomm, are aimed at expanding capabilities in Edge IoT and AI-driven innovation [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand environment for their solutions, highlighting strong traction in the drone market and positive early feedback on new products [11][14] - The outlook for fiscal 2026 includes expected revenue in the range of $28.5 million to $30.5 million, with non-GAAP EPS projected between $0.02 and $0.04 per share [23] Other Important Information - The company has made significant progress in reducing costs and improving supply chain efficiency, with a net cash position of $8.3 million as of June 30, 2025 [22][23] - The company has successfully integrated the Netcomm IoT acquisition and mitigated tariff exposure, which supports improved gross margin performance [25] Q&A Session Summary Question: Drone opportunity and potential - Management is excited about the drone market, currently working with over 10 different drone makers, mainly in military or industrial applications, with expectations for significant growth in fiscal 2026 [29] Question: Bookings and order perspective for September - Management noted broad-based momentum across core business segments, including Edge IoT and networking, indicating confidence for fiscal 2026 [31] Question: Gross margin evolution - Management anticipates gross margins returning to 44% to 45% for the fiscal year, despite one-off items affecting margins in June [35][36] Question: Backup generator opportunity - A significant mobile carrier win involves 50,000 gateways, with expectations for long-term growth and the introduction of annual recurring revenue as devices come online [42][44] Question: Average dollar content per device in drone market - The average dollar content per device is approximately $500, with potential revenue opportunities ranging from $3 million to $5 million per customer annually [48][50] Question: Recurring revenue component from carrier opportunity - The carrier opportunity includes a recurring revenue component, with ongoing RFPs and potential for significant growth in the coming years [68][70]

Core Insights - AgEagle Aerial Systems Inc. partnered with F9 Distribution Baltic to host Drone Days, showcasing the capabilities of eBee VISION and eBee TAC drones to decision makers in the Baltic states [1][2] - The event attracted over 150 key decision makers from defense, military, and public safety sectors, featuring live flight demonstrations that highlighted the drones' surveillance and mapping capabilities [2] Company Overview - AgEagle Aerial Systems Inc. is a leading provider of unmanned aerial systems (UAS) and sensors for military, public safety, and commercial use, originally founded to serve the agriculture industry [5] - The company has evolved to provide full stack UAS, sensors, and software solutions across various sectors including energy, construction, agriculture, and government [5] Product Performance - The eBee VISION and eBee TAC drones demonstrated exceptional reliability and adaptability during flight demonstrations, even in strong wind conditions reaching 43 km/h (26.7 mph) [3][6] - The eBee VISION showcased advanced capabilities such as rapid ascent and descent, operating at altitudes of 450 meters and Beyond Visual Line of Sight (BVLOS) up to 2.4 km [6]