Unusual Machines (UMAC) Earnings: Q3 2026 Results

The quarter ended September 30, 2026 and Unusual Machines published the results on November 5, 2026. Revenue and diluted EPS are shown against Q3 2025, the same quarter a year earlier, which takes seasonal swings out of the comparison.

• Unusual Machines holds large stakes in public companies (Powerus, Xtend and XTIA Aerospace / Drone Nerds), and changes in their market value run through net income. Q3 2026 included an $18.4 million unrealized loss on short-term investments; Q3 2025 included a $5.8 million unrealized gain.
• The Upgrade Energy acquisition closed on October 19, 2026, after the quarter ended, so Q3 2026 revenue does not include it.

Source: Unusual Machines Q3 2026 shareholder letter, November 5, 2026. Also in the Form 10-Q for the quarter ended September 30, 2026. Figures as reported; checked against the release on November 10, 2026.

How Unusual Machines splits revenue in its own release, under its own labels, for Q3 2026 against Q3 2025. Indented lines are parts of the line above them.

• Unusual Machines's Enterprise revenue revenue was $12.6 million in Q3 2026, up 1187% from $1.0 million in Q3 2025, 90% of total revenue.
• Unusual Machines's Retail revenue revenue was $1.3 million in Q3 2026, up 16% from $1.2 million in Q3 2025, 10% of total revenue.

Segment lines are the figures writers cite most often, because they show where the growth in a quarter came from. Companies redraw their segments from time to time and restate the prior year to match, so a year-ago figure here can differ from the one printed a year ago. When that has happened, the note above says so.

From the earnings release

Unusual Machines gives no numeric revenue or EPS outlook in its shareholder letter; these are the CEO's stated goals.

In its Q3 2026 release, Unusual Machines said:

“I continue to believe that Unusual Machines can achieve positive adjusted EBITDA in 2027 without compromising our growth plans.”

“We will work toward our 40% margin target, but achieving it may take longer as we prioritize rapid growth while managing losses.”

Source: Unusual Machines Q3 2026 shareholder letter (Form 8-K, Exhibit 99.1), Nov 5, 2026.

This is the company's own guidance as of Nov 5, 2026, quoted as given. Walnut does not make forecasts of its own. Analyst estimates for the coming quarters are on the UMAC forecast page.

Revenue and diluted EPS for the last 5 quarters. Each date links to that quarter's release.

GAAP revenue and diluted net income (loss) per share, each as first reported. Q4 2025 revenue is the 2025 annual figure less the first nine months; the Q4 2025 shareholder letter gave full-year per-share results only, so Q4 2025 EPS is left blank.

We do not hold a confirmed date for Unusual Machines's next report. Companies post the date on their investor relations site a few weeks ahead, usually with the time of the conference call.

Each quarter keeps its own page with the figures as reported, so a link to one stays pointed at the same numbers after the next report.

• Q3 2026 (this page), reported Nov 5, 2026

Unusual Machines makes NDAA-compliant drone components: flight controllers, electronic speed controllers, video systems, motors, FPV headsets and cameras, and sells to consumers through its Fat Shark and Rotor Riot brands. Revenue was $13.9 million in Q3 2026, up 551% from $2.1 million a year earlier and down 17% from Q2 2026. (Unusual Machines Q3 2026 shareholder letter, Nov 5, 2026)

Enterprise customers and distributors now make up most of the business: enterprise revenue was $12,556,925 in Q3 2026, against $976,139 a year earlier, while retail revenue from individual consumers was $1,346,107. About $2.0 million of the quarter's revenue came from related parties; Red Cat, whose CEO sits on the Unusual Machines board, accounted for about $4.2 million over nine months. Revenue outside the United States was about $1.5 million for the nine months. (Unusual Machines Form 10-Q, Q3 2026, Nov 5, 2026)

The CEO's letter says the sequential decline came from time spent on foundational work: more motor production equipment, scaling Upgrade Energy before the deal closed, and new additive manufacturing capacity. The single best-selling product was about 19% of revenue, and headcount rose from 240 to 276 during the quarter. (Unusual Machines Q3 2026 shareholder letter, Nov 5, 2026)

Inventory and prepaid inventory rose from $42.4 million at the end of Q2 2026 to $65.9 million, and accounts receivable from $9.3 million to $18.7 million. The letter cites demand from Department of War programs, including the $1.1 billion Drone Dominance Program, and a $16.9 million order from Powerus. (Unusual Machines Q3 2026 shareholder letter, Nov 5, 2026)

Unusual Machines lost $25.0 million, or $0.50 per share, in Q3 2026, against net income of about $1.6 million, or $0.05 per share, a year earlier. The swing came mostly from investments: an $18.4 million unrealized loss on short-term investments, against a $5.8 million unrealized gain in Q3 2025. Stock compensation expense was $5.5 million, against $2.1 million. (Unusual Machines Q3 2026 shareholder letter, Nov 5, 2026)

The company reports adjusted EBITDA, not an adjusted EPS. Adjusted EBITDA was a loss of $0.7 million after adding back the unrealized investment loss, stock compensation, depreciation and $2.0 million of non-recurring expenses and removing $1.7 million of interest income. Gross margin was 35.4%, against 39.4% a year earlier, as revenue shifted to enterprise from retail and the company ramped up manufacturing. (Unusual Machines Q3 2026 shareholder letter, Nov 5, 2026)

Weighted-average shares were 49,968,207, against 30,581,194 diluted shares a year earlier, after a common stock offering in March 2026, an at-the-market offering in May 2026 and warrant exercises. Cash was $162.0 million at September 30, 2026, down from $229.6 million at June 30 after $24.8 million of inventory purchases and $35.0 million of short-term investments and a loan receivable. (Unusual Machines Q3 2026 shareholder letter, Nov 5, 2026; Unusual Machines Form 10-Q, Q3 2026, Nov 5, 2026)

Diluted EPS divides net income by the weighted average number of shares outstanding in the quarter, plus the shares that options and other equity awards could add. Buybacks shrink that count and lift EPS for the same profit; share issuance and stock awards enlarge it.

Unusual Machines gives no numeric revenue or EPS guidance. The CEO's letter says the company aims for positive adjusted EBITDA in 2027, will work toward a 40% gross margin target that may take longer to reach, and expects its growth initiatives to contribute meaningful revenue in the fourth quarter of 2026 and through 2027. (Unusual Machines Q3 2026 shareholder letter, Nov 5, 2026)

The letter lists capacity plans: a new automated motor line expected to support 100,000 additional motors per month, about 100,000 square feet of added space in the fourth quarter, and domestic camera manufacturing in early 2027. The Upgrade Energy purchase price is estimated at $52.0 million, paid with 1,792,012 shares and $1 million in cash. (Unusual Machines Q3 2026 shareholder letter, Nov 5, 2026; Unusual Machines Form 10-Q, Q3 2026, Nov 5, 2026)

A consensus figure is the average of the models published by the analysts who cover Unusual Machines, collected by a data provider and revised up to the day of the report. A quarter that lands above it says how expectations were set as much as how the business did, and the share price on the day also reflects the guidance and the lines no consensus covers.

The consensus figures on this page are Yahoo Finance's, as pulled on the date shown. Each comes with the number of analysts behind it; the smaller that number, the more one revised estimate can move the average.

The figures below are the ones Unusual Machines's own release and filings put weight on for Q3 2026, with the latest reported value for each.

What the quarter means for a holding is a separate question from what it reported. The case for and against owning UMAC is on is UMAC a buy or a sell?, what analysts expect next is on the UMAC forecast, and what the company does is on the Unusual Machines (UMAC) stock page.

Every number on this page can be traced to a document Unusual Machines published. Checking one takes a couple of minutes, and it is worth doing before you quote a figure anywhere.

• The results release is the document linked in the source line above. Companies publish it on their investor relations site at the moment results go out, and it carries the headline tables: revenue, operating income, net income and EPS for the quarter and the year-ago quarter.
• The same release is filed with the SEC as Exhibit 99.1 to a Form 8-K under Item 2.02, usually on the day of the report. The SEC copy does not change after the fact, which makes it the safer thing to link when you cite a number.
• The quarterly report (Form 10-Q) follows within a few weeks and carries the full financial statements, the segment note and management's discussion of what changed. The fourth quarter is covered by the annual report (Form 10-K) instead.
• Restated comparisons are flagged in the notes on this page. When a company redraws its segments or changes how it adjusts EPS, it restates the year-ago column, so the year-ago figure in a new release can differ from the one printed a year ago. This page always uses the comparison in the newer release, because that is the like-for-like one.

A walk-through of every line in a release, with what each one tells you, is in how to read an earnings report.