Palladyne AI Corp (PDYN) AI Stock Analysis

• Market Cap: $225.05M
• Dividend Yield: N/A
• Average Volume (3M): 4.35M
• Price to Earnings (P/E): ―
• Beta (1Y): 4.67
• Revenue Growth: 26.68%
• EPS Growth: 39.88%
• Country: US
• Employees: 71
• Sector: Technology
• Sector Strength: 45
• Industry: Software
• EPS (TTM): -2.71
• Shares Outstanding: 35,219,700
• 10 Day Avg. Volume: 2,830,059
• 30 Day Avg. Volume: 4,349,626
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 30.08
• Price to Cash Flow (P/CF): -11.50
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $15.00
• Price Target Upside: 134.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Palladyne AI Corp's overall score reflects a challenging financial situation with persistent operational inefficiencies and negative profitability. However, recent corporate events indicate a potential turnaround, with strategic improvements in financial health and product development. Technical indicators suggest some recovery potential, but valuation remains a concern due to negative earnings. The overall score balances these elements, highlighting the need for careful consideration by investors.

Palladyne AI Corp Business Overview & Revenue Model

Company Description

Rotor Acquisition Corp is a blank check company.

How the Company Makes Money

Palladyne AI Corp generates revenue primarily through the sale of its AI software licenses and subscription-based services. The company offers customized AI solutions tailored to specific industry needs, allowing businesses to integrate these technologies into their operations. Additionally, PDYN engages in strategic partnerships with other technology firms and enterprises to co-develop and deploy AI applications, which often includes revenue-sharing agreements. The company also provides consulting services for AI strategy and implementation, further diversifying its income streams.

Palladyne AI Corp Financial Statement Overview

Summary

Palladyne AI Corp faces substantial financial challenges. Despite some revenue growth, profitability remains elusive, with significant operational losses and negative margins. The balance sheet is weakened by negative equity and high leverage, raising concerns about financial stability. Cash flow struggles further compound operational inefficiencies, suggesting that strategic changes are necessary to improve financial health.

Income Statement

Palladyne AI Corp shows significant revenue volatility and persistent negative profitability. The company experienced revenue growth of 26.68% from 2023 to 2024, but gross and net profit margins are deeply negative. This indicates challenges in converting sales into profits, with EBIT and EBITDA margins also being negative, reflecting operational inefficiencies.

Balance Sheet

The balance sheet reveals a concerning financial structure, with negative stockholders' equity in 2024, indicating potential solvency issues. The debt-to-equity ratio is not calculable due to negative equity, which is a red flag. The equity ratio is negative, and the company is highly leveraged, posing significant financial risk.

Cash Flow

Cash flow analysis indicates significant challenges with negative free cash flow and operating cash flow. The company showed improvement in free cash flow from 2023 to 2024, but it remains negative, highlighting ongoing cash burn issues. The ratios of cash flow to net income are unfavorable, reflecting inefficiencies in generating cash from operations.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
7.79M	6.15M	14.57M	5.08M	8.81M
	Gross Profit
4.30M	1.10M	2.96M	1.21M	3.21M
	EBIT
-26.92M	-83.01M	-177.04M	-80.99M	-21.00M
	EBITDA
-26.29M	-78.64M	-103.21M	-80.46M	-20.54M
	Net Income Common Stockholders
-72.62M	-115.59M	-157.13M	-81.51M	-20.93M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
40.07M	39.09M	114.50M	217.11M	33.66M
	Total Assets
56.25M	60.43M	167.63M	235.82M	38.05M
	Total Debt
11.04M	12.40M	13.28M	7.00K	2.63M
	Net Debt
-20.15M	-10.74M	-21.88M	-217.11M	-31.03M
	Total Liabilities
65.79M	19.52M	23.18M	21.86M	5.15M
	Stockholders Equity
-9.53M	40.91M	144.45M	213.96M	32.91M
Cash Flow		Free Cash Flow
-22.89M	-77.40M	-66.89M	-46.79M	-17.83M
	Operating Cash Flow
-22.63M	-76.62M	-65.39M	-42.10M	-16.88M
	Investing Cash Flow
6.88M	64.68M	-109.05M	-4.69M	-950.00K
	Financing Cash Flow
23.80M	-82.00K	-7.52M	230.24M	42.30M

Palladyne AI Corp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.39
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PDYN, the sentiment is Negative. The current price of 6.39 is below the 20-day moving average (MA) of 7.73, below the 50-day MA of 8.66, and above the 200-day MA of 3.86, indicating a neutral trend. The MACD of -0.56 indicates Positive momentum. The RSI at 40.90 is Neutral, neither overbought nor oversold. The STOCH value of 27.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PDYN.

Palladyne AI Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MSFT	81 Outperform	$2.83T	30.62	34.29%	0.83%	15.04%	12.38%
NVDA	75 Outperform	$2.65T	36.41	119.18%	0.03%	114.20%	146.26%
GOOGL	74 Outperform	$2.03T	21.62	32.91%	0.36%	13.89%	38.99%
AMZN	73 Outperform	$2.08T	35.60	24.29%	―	10.99%	91.61%
IBM	67 Neutral	$230.84B	39.97	24.14%	2.60%	1.45%	-20.56%
Sector *	58 Neutral	$21.35B	10.05	-19.26%	2.35%	5.02%	-22.63%
PDYN	49 Neutral	$225.05M	―	-462.94%	―	26.68%	39.88%

Palladyne AI Corp Corporate Events

Palladyne AI Corp Achieves Financial Milestones and Growth

Palladyne AI Corp announced key achievements for 2024, including a substantial improvement in their financial position with no debt and increased cash reserves. The company met its financial and product development objectives, launching the commercial version of its Palladyne IQ for industrial robots and preparing the Palladyne Pilot for small drones for release in early 2025. Revenue increased by 27% while operating expenses decreased by 73%, reflecting a transformative year for the company. Additionally, the company is focused on securing customers for 2025, with promising interest from various industries. A successful collaboration with Red Cat Holdings demonstrated the integration of Palladyne Pilot AI software in drones. CEO Ben Wolff emphasized the company’s unique approach to AI in physical robotics, contrasting it with digital world AI models that require extensive cloud connectivity.

Palladyne AI Corp Appoints Michael Young to Board

Palladyne AI Corp. announced the appointment of Michael T. Young to its Board of Directors, effective February 24, 2025. Young, bringing over 35 years of experience from companies like Caterpillar and Dell, is expected to provide valuable insights as Palladyne AI commercializes its AI software solutions. Young’s appointment coincides with the retirement of Laura J. Peterson from the Board on February 23, 2025, who has been instrumental in guiding the company through critical phases of development.

Palladyne AI Extends CEO Contract Through 2027

Palladyne AI Corp has finalized an amended and restated employment agreement with its President and CEO, Benjamin G. Wolff, extending his term through December 31, 2027. The agreement outlines changes in salary, bonus eligibility, and conditions for cash payments, reflecting a strategic move to retain leadership and ensure continuity in the company’s executive management, which could influence its future market positioning and stakeholder confidence.