Swarmer (NASDAQ:SWMR) reported a wider third-quarter loss as it increased spending on engineering, operations and strategic initiatives, while executives outlined plans to expand from drone software into unmanned vehicles and air defense systems.
The company reported revenue of approximately $26,000 for the quarter ended Sept. 30, 2026, down from approximately $36,000 a year earlier. Net loss widened to approximately $9.3 million from $3.4 million, Chief Financial Officer Brooks Ensign said on the earnings call.
President and U.S. CEO Alex Fink said Swarmer’s pending acquisition of Ukrainian unmanned ground vehicle maker Ratel Robotics, along with a separate pending deal for intellectual property and research and development personnel from Vataga Drone, would support its shift toward selling complete hardware and software systems.
Ratel Deal and Revenue Targets
Fink said Swarmer expects the Ratel acquisition to close in November 2026. The companies signed a definitive agreement on Sept. 9, and Swarmer shareholders approved the related share issuance on Nov. 2, he said. No governmental approvals are required, according to Fink.
Ratel generated $42.1 million in revenue during the first nine months of 2026, including $32.5 million in the third quarter, Fink said. September alone accounted for $14.9 million. He said the third-quarter figures were unaudited.
Fink estimated Ratel’s fourth-quarter revenue would be between $35 million and $40 million, with operating margins of 13% to 17%. Ratel is increasing manufacturing capacity to fulfill $86 million in previously signed government contracts, he said. Ratel’s results were not included in Swarmer’s third-quarter results.
Most of the consideration for Ratel is contingent on earnouts tied to revenue and operating income targets, Fink said. The agreement sets revenue targets of $77 million for 2026, $130 million for 2027 and $187 million for 2028. The corresponding operating income targets are $8.47 million, $14.3 million and $20.57 million. An additional bonus payment would be due if Ratel reaches $249 million in revenue and $27.39 million in operating income in 2028.
Fink acknowledged uncertainty around geopolitics and Ukraine’s future budgets. In response to an analyst’s question, he said all of Swarmer’s revenue to date, all of Ratel’s revenue and the Ratel guidance discussed on the call were in Ukraine. The same was true of Vataga’s revenue, he said.
Ratel has successfully launched unmanned aerial vehicles from ground vehicle prototypes and tested other uses, including mounting military hardware and demining, Fink said. If the deal closes, the companies plan to work on scaling and productizing those capabilities.
Air Defense and Drone Expansion
Swarmer also announced a memorandum of understanding under which it intends to manufacture and sell complete air defense systems for Vectus Air Defense Systems. Swarmer is a founding partner and holds a 20% equity stake in Vectus; an entity managed by Erik Prince, Swarmer’s non-executive chairman, holds the remainder, Fink said.
Vectus has expressed an intent to purchase at least 40 systems in the first year after production begins and 80 or more in the second year, subject to definitive agreements and customary approvals. Fink estimated the manufacturer’s suggested retail price at $5 million to $6 million per system.
The pending Vataga transaction would add intellectual property and personnel associated with quadcopters, interceptors and initiation boards. Fink said Swarmer expects to focus more heavily on direct government sales, while continuing to offer software that can be used by other drone makers.
Quarterly Spending and Cash
Third-quarter operating expenses rose to approximately $9.4 million from $0.8 million a year earlier, including approximately $1.7 million in non-cash stock-based compensation. Ensign attributed the increase to investments in engineering, product development, infrastructure, public-company requirements and strategic initiatives.
Swarmer ended the quarter with approximately $37.3 million in cash and cash equivalents, up from $25.3 million at June 30. Ensign said the increase was primarily driven by capital raised through the company’s equity line of credit.
About Swarmer (NASDAQ:SWMR)
Swarmer, Inc. is a defense technology company focused on software for coordinating and managing unmanned aerial systems. Its technology is designed to help operators control multiple drones, automate mission planning, and improve the efficiency of drone-based operations. The company’s primary offering is an artificial intelligence-powered platform intended to enable autonomous or semi-autonomous drone swarms. The platform can support coordination among drones, adaptation to changing mission conditions, and the integration of different unmanned systems into a single operating environment.
