Swarmer (SWMR) Q3 2026 Earnings Call Transcript

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DATE

Tuesday, Nov. 10, 2026

CALL PARTICIPANTS

• President and U.S. Chief Executive Officer – Alex Fink
• Chief Financial Officer – Brooks Ensign

TAKEAWAYS

• Revenue — $25,554, representing a decrease from $35,771 year over year driven by a focus on support services under existing customer agreements.
• Gross Loss — $47,093, reflecting a fixed allocation of cloud storage costs compared with a loss of $9,670 in the prior year period.
• Operating Expenses — $9.4 million, representing increased investments in engineering, product development, and strategic initiatives.
• Net Loss — $9.3 million, compared with a net loss of $3.4 million in the third quarter of 2025.
• Cash and Cash Equivalents — $37.3 million, an increase from $25.3 million at the end of the second quarter primarily driven by capital raised through an equity line of credit.
• Stock-Based Compensation — $1.7 million, recorded as a noncash expense during the quarter.
• Ratel Robotics Year-to-Date Revenue — $42.1 million (unaudited), including $32.5 million generated during the third quarter.
• Ratel Robotics September Revenue — $14.9 million (unaudited), reflecting the expansion of manufacturing capacity to meet government demand.
• Ratel Robotics Q4 Guidance — $35 million to $40 million in revenue, with projected operating margins between 13% and 17%.
• Ratel Robotics Backlog — $65.1 million, in previously signed government contracts as of Sept. 30, 2026.
• Ratel Robotics 2026 Revenue Target — $77 million, serving as the first performance threshold for acquisition earn-outs.
• Ratel Robotics 2027 Targets — $130 million in revenue and $14.3 million in operating income.
• Ratel Robotics 2028 Targets — $187 million in revenue and $20.57 million in operating income, with a bonus available if revenue reaches $249 million.
• Ratel Robotics Market Share — 37% of all unmanned ground vehicle purchases by the Ukrainian government during the Spring 2026 procurement cycle.
• Vectus Air Defense Projections — 40 systems in the first year following the start of production and at least 80 systems in the second year.
• Vectus Air Defense MSRP — $5 million to $6 million per system, with the company acting as the intended manufacturer under a memorandum of understanding.
• Vectus Equity Ownership — 20%, representing the company’s current interest in Vectus Air Defense Systems.
• Combat Mission Count — 100,000, representing real-world missions in Ukraine supported by the company’s software since April 2024.

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RISKS

• Fink noted, “we understand the uncertainty of geopolitics and of Ukraine’s future budgets,” when discussing the long-term outlook for government procurement.
• Management cautioned in the earnings release that Ratel’s preliminary financial figures “were not prepared in accordance with U.S. generally accepted accounting principles, and may change.”

SUMMARY

Swarmer, Inc (SWMR -2.23%) reported a strategic transition toward becoming an end-to-end provider of autonomous defense hardware and software for allied nations. Management announced the pending acquisition of Ratel Robotics, a major manufacturer of unmanned ground vehicles in Ukraine, and the planned acquisition of intellectual property from Vataga Drone. The company also signed a memorandum of understanding to manufacture complete air defense systems for Vectus Air Defense Systems. These developments are intended to capture the entire value chain of autonomous systems, moving beyond the company’s original software-only licensing model. Management indicated that these hardware and software capabilities will be unified into integrated kits starting in Q1 2027.

• The company expects to complete the acquisition of Ratel Robotics in November 2026.
• CEO Fink stated, “We are making the strategic, proactive investment to own the entire value chain end-to-end.”
• Management is pursuing manufacturing partnerships with General Dynamics and entities in Germany, Denmark, and the Netherlands to scale capacity under the Build With Ukraine program.
• The acquisition of Vataga Drone personnel and intellectual property will add combat-tested quadcopters and interceptors to the hardware portfolio.
• CEO Fink stated, “We believe this complete end-to-end kit can be codified in Q1 and help make autonomy more widely adopted on the Ukrainian battlefield.”

INDUSTRY GLOSSARY

• UGV: Unmanned Ground Vehicle, a robotic platform that operates on land without an onboard human presence.
• MOU: Memorandum of Understanding, a non-binding agreement outlining the terms and details of a mutual understanding between parties.
• B2G: Business-to-Government, a business model involving the sale of products or services to government agencies.
• MSRP: Manufacturer’s Suggested Retail Price.
• Earn-outs: Performance-based payments made to the sellers of a business after an acquisition is completed.
• Interceptors: Drones specifically designed to locate and neutralize other unmanned aerial vehicles.
• Initiation boards: Electronic components used to trigger payloads or systems on a drone.

Full Conference Call Transcript

Operator: Good afternoon. Welcome to the Swarmer, Inc. Third Quarter 2026 Earnings Conference Call. Joining us for today’s presentation are the company’s President and U.S. CEO, Alex Fink; and Chief Financial Officer, Brooks Ensign. [Operator Instructions] Before we begin, I want to remind everyone that today’s call will include forward-looking statements within the meaning of the federal securities laws. These statements include, among others, statements regarding Swarmer’s strategy, market opportunity, customer engagement, product development, technology integrations, expansion into new markets, future revenue opportunities, expected customer mix, potential deployments and the anticipated benefits of the company’s relationships, memorandum of understanding, partnerships and commercial initiatives.

Forward-looking statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. Additional information about factors that could cause actual results to differ is included in the company’s earnings release issued today and in the company’s filings with the Securities and Exchange Commission, including the risk factors described in those filings. The company undertakes no obligation to update the forward-looking statements, except as required by law. Finally, I’d like to remind everyone that this conference call is being webcasted, and a recording will be made available for replay on the company’s Investor Relations website.

In addition to the webcast, the company has posted a press release that accompanies these results, which can also be found on the Investor Relations website. I will now turn the call over to Swarmer’s President and U.S. CEO, Alex Fink, for

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