Shares of Palladyne AI Corp. (NASDAQ: PDYN) rose 19 per cent on Wednesday on the back of a substantially improved balance sheet, and positive sentiment over deals involving big name tech retailers and developers.
Over the last year, Palladyne AI delivered a total shareholder return of 227.36 per cent, significantly outperforming the US market and the US Machinery industry, which returned 13.1 per cent and 4.4 per cent, respectively. The company also showcased a sales rise to USD$7.79 million and a considerably reduced net loss of USD$73 million.
Furthermore, a major contract in October 2024 with the Air Logistics Complex strengthened Palladyne’s software integration capabilities. Later on, in January 2025, the company formed a strategic alliance with Red Cat Holdings, expanding its drone capability initiatives. Additionally, Palladyne AI further advanced its product development in December 2024 by successfully integrating its Palladyne Pilot AI software into third-party drones.
Between January 1, 2025, and February 12, 2025, the company raised another USD$14.4 million (before commissions and offering expenses), with no debt or long-term financial obligations on the balance sheet, aside from its long-term office lease. The company achieved its second-half 2024 target of a USD$1.6-$2.0 million net cash burn per month and expects to maintain a similar rate throughout 2025.
Palladyne IQ is a closed-loop, full-stack artificial intelligence (AI) software product built on our AI/ML (machine learning) foundational technology. It’s designed to make robots smarter and enable them to perform tasks that have historically been too complex to automate.
It enhances the utility and functionality of third-party robotic systems by allowing them to quickly observe, learn, reason, and act in structured, unstructured, and dynamic environments.
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2024 was a transformative year for the company
Palladyne AI has been vocal about its 2025 goals, particularly the commercialization of its flagship AI software offerings. The Palladyne Pilot platform, designed for small drones, is set for a commercial release by the end of Q1 2025. The release will directly follow with integration into Red Cat Holdings’ drones.
Meanwhile, the Palladyne IQ software for industrial robots is preparing for customer trials in the first half of the year.
“2024 was a transformative year for the company,” according to president and CEO Ben Wolff.
“We set out early in 2024 with an objective to commercialize our novel AI/ML software products which are designed to enable robots and other remote controlled machines to learn, reason, and act in a manner similar to humans.
Palladyne AI began 2025 with Palladyne IQ ready for testing by prospective customers.
Earlier versions of the software underwent trials with a large global manufacturer and the U.S. Air Force.
The company anticipates that its AI will continue to improve over time, much like an infant’s cognitive functioning, dexterity, and skill develop rapidly after birth.
Although still in the early stages, Palladyne AI is seeing strong interest from companies across various industries.
The company anticipates this interest translating into customer on-site trials and sales. However, the company is still in the process of understanding the typical buyer’s journey. This includes the length of the sales cycle, key decision-makers, and how to address potential sales objections. As a result, it remains too early to provide near-term revenue projections.
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