ORLANDO, Fla., March 9, 2026, 10:05 EDT
Unusual Machines (UMAC) shares jumped roughly 7% early Monday, following a snapshot of 2025 figures from the drone-parts firm. Revenue more than doubled, with cash at year-end topping $100 million. Fourth-quarter sales also surged, more than doubling compared to the same period last year, according to the company.
These results arrive while Washington keeps up pressure on agencies and contractors to source secure drone equipment built outside restricted foreign supply chains. Being NDAA-compliant, simply put, requires following U.S. procurement rules that block certain systems or critical components from covered foreign countries. Back in January, the FCC announced that systems and parts on the Pentagon’s Blue UAS cleared list—and products satisfying Buy American rules—would stay off its Covered List until Jan. 1, 2027. Just last week, Reuters reported the Pentagon was moving to boost output of low-cost American-made drones through its Drone Dominance program.
Unusual Machines posted 2025 revenue of roughly $11.2 million, more than double its 2024 figure. Sales of Fat Shark FPV goggles and Rotor Riot drone equipment drove fourth-quarter revenue to around $4.9 million. By year-end, the company reported about $103.3 million in cash and $39 million in short-term investments, with zero debt. However, most of that balance-sheet boost was chalked up to proceeds from equity and warrant sales—not from the core business.
Chief Executive Allan Evans described 2025 as “a turning point,” noting that the business started to “scale rapidly” during the latter half of the year as enterprise demand increased. Headcount jumped from 19 at the end of the second quarter to 81 by year-end, according to the company. Its footprint ballooned—up from 6,900 square feet to 62,500 across five Orlando sites. U.S. motor production kicked off in November; Fat Shark headset production got underway in January.
Red Cat, trading in the U.S., moves military drones, while Ondas is in the drone and automated data space. But Unusual Machines goes a different direction—its business centers on motors, cameras, headsets and other drone components, not completed drones. Reuters
The shareholder letter put gross margin at roughly 36% for the fourth quarter and 35% for the full year, crediting the uptick to a tilt toward enterprise sales. Motor-production margins, Evans noted, hovered closer to 20%—and might slip again in the first quarter before picking back up, as new lines and facilities iron out their initial issues.
Unusual Machines continues to post losses, with the fourth-quarter operating loss jumping to roughly $9.7 million—up from $2.8 million the year before. Those 2025 numbers, the company noted, are still preliminary and unaudited, so they could shift once the annual report lands in the next few days. In its shareholder letter, Unusual Machines pointed to a handful of other red flags: heavy reliance on a small group of customers, the chance that inventory may go obsolete, ongoing supply-chain snags, and potential dilution if it raises more equity down the line.
Evans said Unusual Machines aims to hit cash-flow positivity by the end of 2026, banking on climbing revenue and improving margins as new operating centers and processes move past the costly launch phase. Management added that it doesn’t anticipate being “demand limited” for the next 18 months.
