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PALLADYNE AI PROPRIETARY
Disclaimer
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PALLADYNE AI PROPRIETARY
PalladyneAI is defining the future of embodied AI for
Defense and Industrial markets with:
Embodied AI for Robots and Drones
Proprietary UAVs and Missiles
Electronics and Precision Components for UAVs
Engineering Services for Robots and Drones
Advanced Manufacturing and Assembly
America’s Cross-Domain Force Multiplier™
Intelligence at the edge, not
just in the cloud.
Built for defense, security,
and industrial operations.
Sense Think/Decide Act
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PALLADYNE AI PROPRIETARY
PalladyneAI At-a-Glance
NASDAQ
PDYN
Experience
30+ years of robotics engineering excellence.
Technology team led by CTO with 25+ years
of AI/ML expertise.
>140 as of 12/31/25
Team members, world-class robotics & AI/ML
software engineers.
Salt Lake City, UT
Innovation and operations headquarters
Robotics DNA
30+ years in robotics and robotics software.
Legacy leadership in dexterous mobile robot
technology across aviation, construction,
energy, and defense sectors.
Purchase from
Raytheon (2015)
2015
Sarcos Robotics
Begins Trading
Publicly (2021)
2021 2025
Raytheon Buys
Sarcos (2007)
1983 2024
Sarcos becomes
Palladyne AI (2024)
2007
Palladyne
AI
Sarcos Spins
Out of the
University of Utah
(1983)
Joins Russell 2000
and Russell 3000
(6/2025)
Palladyne AI acquires
GuideTech, MKR, and
Warnke (11/2025)
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PALLADYNE AI PROPRIETARY
TheInvestment Thesis
Technology Leadership
Palladyne AI is a disciplined, pioneer in embodied AI, bridging autonomy, design, and manufacturing.
Our advantage is structural. We own the software, the engineering, and the manufacturing.
That’s how we move faster, build smarter, and lead from strength.
Vertical Integration
Dual Growth Engines
Financial Strength
Strategic Timing
Proven autonomy
architecture
Full-stack capability from AI
to design to hardware to
manufacturing
Positioned for the new
rules of readiness
Well-funded for a multi-
year runway
Defense and commercial
synergy
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PALLADYNE AI PROPRIETARY
OurClosed-Loop Autonomy Software Portfolio Sits at the Core
Enabling autonomous capabilities for stationary and mobile machines in dynamic and/or complex environments.
Palladyne™ IQ (Commercial/Defense)
(Closed-loop Autonomy for Stationary Machines)
SwarmOS™
(Defense)
Palladyne™
Pilot (Commercial)
(Closed-loop Autonomous Detection, Tracking,
and Control1
for Mobile Machines)
1.Control of sensors only; does not control UAV/UGV’s flight or navigational functionalities.
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PALLADYNE AI PROPRIETARY
EthicalEmbodied AI +
Cost Effective Mission Effects +
Precision Harm Mitigation
Palladyne Defense:
Redefining The Mid-Tier Prime
Startups
Fast But Small
Primes
Large But Slow
The New Mid-Tier Prime
The Pentagon’s Replicator
initiative requires attritable,
intelligent systems that are
fast, flexible, and
affordable.
Deliver affordable, intelligent
systems built in America.
Bridge between fast but
small startups and massive
primes.
Provide DoW with an agile,
vertically integrated partner.
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PALLADYNE AI PROPRIETARY
SwarmOS™
ThreeInputs. One Exponential Advantage.
The next step in our transformation:
GuideTech, Warnke, and MKR acquisitions
bring together three powerful capabilities:
AI Core + UAVs and UAV components + U.S. Manufacturing
SwarmOS:
Embodied AI and autonomy core for defense
and public safety missions.
GuideTech:
Proprietary UAVs and component offerings
from aerospace design and avionics
engineering group that moves concepts from
digital model to flight prototype in less than 6
months.
Warnke and MKR (formerly Crucis):
Certified U.S. manufacturers supporting major
defense programs including F-16, F-35,
Tomahawk, Harpoon and Bradley.
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PALLADYNE AI PROPRIETARY
SwarmOS:Closed-Loop Autonomy for UAVs
Cooperative Autonomous Sensing for Enhanced Swarming Actions
Enabling a network of collaborating drones and sensors that self-orchestrate to provide superior capabilities for
defense and security applications including ISR.
1
4
2
3
1
2
3
4
5
Ground Moving Target 1:
BMP-3, 99%
Ground Moving Target 2:
BMP-3, 99%
Ground Moving Target 3:
BMP-3, 99%
Ground Moving Target 4:
BMP-3, 99%
Ground Moving Target 5:
BMP-3, 99%
5
1
2
3
4
5
Multi-Sensor Drones Exchange
Information, Not Data
NOTIONAL UAS VENDOR COTS GUI
Low-Bandwidth Drone Messages
Induce Relevant Display Updates
Drones Use Game Theory
to Determine Sensor–
Target Assignments
Drones Share Situation Awareness Information – Target Locations,
Motions, & Characteristics
Drones Control Sensors
via Reinforcement Learning to
Maintain Track Custody
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PALLADYNE AI PROPRIETARY
GuideTech:A Full Design-to-Field Process
Accelerating Autonomous System Development
• Former prime engineers with deep
missile/UAS design pedigree.
• Design and iterate new systems in less than
6 months: Shortens DoW evaluation and
field cycles.
• Already supplying avionics and prototypes
to multiple defense customers: Supports
both partner systems and proprietary
programs.
Design, Prototype, Test Design for
Manufacture
Low Cost, High
Rate MFG
Preliminary
Design
Detailed Design and
Software Dev
Hardware Integration and
Ground Testing
Flight
Test
Operations
and Production
Concept → Simulation → Prototype → Flight Test → Initial Production
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PALLADYNE AI PROPRIETARY
TheGuideTech Roadmap
High performance at a fraction of legacy cost.
o Compact modular flight controller @~1/10 the
cost and weight of legacy avionics.
o Integrated CPU/GPU core enables onboard AI
inference — autonomy without external
compute.
o Multiple variants in various stages of
development (one is currently TRL9/production
ready, others are TRL 6/7).
o BRAIN / SwarmOS integration completed in
less than 3 weeks to form IntelliSwarm
BRAIN Avionics: Lightweight, Mission-Grade Compute Project Banshee: Precision Loitering Munition
o Designed for tactical and strategic missions -
not hobby/consumer UAVs.
o Comparable or better range and payload vs.
incumbent systems, at lower cost.
o Designed to support SwarmOS / IntelliSwarm
integration.
o Designed for mass production (currently at
TRL 6/7) - superior cost-per-effect in
contested airspace.
Project SwarmStrike: Deep Reach at a New Price Point
o Cruise-class autonomous system with
hundreds of miles of range at attritable cost.
o Designed for swarm-enabled, multi-domain
operations.
o Represents the future of AI-enabled tactical
saturation and deterrence.
o TRL 6/7 with successful flight
demonstration
Conventional Avionics:
IMU+GPS+Autonomy
Module+Realtime Module
BRAIN:
GPS+INS+Mag+Baro
Warhead Size
Range
# Missions
Cost/Target Effect
3 lbm
20 km
30+
<$1K
0.5 lbm
20 km
1
$58K
Comparable
existing platform
Cost
Weight
Compute
~$6k
0.5 lbs
10 CPU + 1024GPU
>$50k
5 lbs.
10 CPU + 1024GPU
Warhead Size
Range (Ground/Air)
Cost
30 lbm
550/920 km
$150k
Variable
Up to 1,000 km
$1.5 – $3.5M
Comparable existing
cruise-class platforms
Project
Banshee
Project
SwarmStrike
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PALLADYNE AI PROPRIETARY
PalladyneManufacturing: Precision
Manufacturing for Priority Programs
Warnke and MKR provide Palladyne with U.S.-based
production, supply-chain depth, and scalability.
• F-35, F-16, Tomahawk, Bradley, JDAM, M1A1, more
• Mining and construction
Vertically integrated manufacturing:
• Machining, assembly
• Defense and industrial markets
Supplies major programs:
Certified: AS9100 and ISO 9001: 2015
Expanding capacity enables near-term scale for
Palladyne AI.
Experienced team to oversee internal and contract
manufacturing for GuideTech products.
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PALLADYNE AI PROPRIETARY
Capacityto Scale
We don’t just build parts...we build
trust. It’s where our innovation
becomes production.
Active supplier to primes and Tier-1s;
provides immediate channel access
Ideal platform for DoW-driven
reshoring and surge capacity
Opportunity to implement
Palladyne IQ for AI-driven efficiency
Brings total manufacturing/assembly
capacity to ~120,000 Sq. Ft.
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PALLADYNE AI PROPRIETARY
WhyPalladyne Manufacturing Matters
Gives Palladyne AI certified, U.S.-based
production tied to priority programs.
Completes the loop by enabling domestic scale,
reliability, and reshoring for next-generation
defense systems.
Anchors Palladyne AI in the DoW’s
industrial-base modernization agenda.
Provides experienced manufacturing
executives to oversee in-house and third-
party manufacturing.
+
State of the art manufacturing tools and
processes
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PALLADYNE AI PROPRIETARY
WhereIt All Comes Together
Design + AI + Manufacturing
Partner and supplier to primes; opportunistic
system provider where gaps exist.
Aligns with DoW priorities for cost-effective,
rapidly fielded autonomous systems.
Autonomy, affordability, and American
industrial power.
Palladyne Defense integrates SwarmOS™
,
GuideTech, and Palladyne Manufacturing
into one business.
This is where our vision
becomes reality — intelligence
that acts, capability that
scales, and a company built for
this era of readiness.
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PALLADYNE AI PROPRIETARY
PalladyneCommercial: Scaling the Palladyne IQ Platform
Palladyne IQ is our original AI platform –
Palladyne Pilot was derived from IQ for
UAV autonomy.
Palladyne IQ is the foundation of our AI ecosystem, delivering intelligence
that powers industrial and operational efficiency.
Targets industrial robots used in
manufacturing, logistics, and
infrastructure sectors.
Hardware agnostic and enterprise-wide to
integrate across robots and systems.
Delivers a recurring software
licensing and services model.
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PALLADYNE AI PROPRIETARY
PalladyneIQ Architecture
Designed to Maximize System Flexibility, Adaptability, Mobility & Learning. Cloud Connectivity Not Required for
Autonomous Robot Operations.
1. Optional hardware, future roadmap.
1
2019 2023 2024
Palladyne
IQ
Software
Development
Begins (2019)
Complete
MVP (5/2024)
Initial
Customer
Trials Begin
(10/2024)
Commercial
Release
(9/2024)
CH STRATFI
Contract Awarded1
(9/2023)
CH STRATFI First
Phase Complete
(10/2024)
CH STRATFI
Additional
Funding (4/2025)
2025
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PALLADYNE AI PROPRIETARY
PalladyneIQ v2.0 Software Platform
Secure, embodied AI
• Hardware agnostic1
• Addresses robotic-specific challenges beyond integration
• Solves for system stability and pose estimation/end effector
orientation
• Robots able to plan and execute complex combination of tasks
over extended periods of time, even in dynamic and unstructured
environments
1. Designed to work with most industrial robots being sold today. According to the Proficient Market Insights’ “Global
Robot Operating System” report, ROS 1 robots comprised of 74% of the total ROS market in 2021, “Global Robot
Operating System (ROS) Market 2022 Size Of $ (globenewswire.com).
• Full stack, closed-loop autonomy enables adaptability to dynamic
changes in environment or defined task without human
intervention or reprogramming
• Uses probabilistic machine learning (ML) techniques to learn the
task, accounting for uncertainty and variability
• Dynamic model inference methods require much less training
data; robots can learn to generalize with only a few
demonstrations (1~ 5)4
• Computational efficiencies gained through use of Palladyne AI’s
domain-specific language models
• Complex task-learning capabilities are similar to humans; in some
cases, we believe robots can be trained in significantly less time
than it takes relying on current state-of-the-art approaches3
• Enables edge computing; lower total cost of ownership (TCO) with
no need to incur recurring cloud services costs
• Improves system implementation and startup times
• Fuses multi-sensor data inputs together to improve system
flexibility & adaptability
• Flexible instructional input options for task model learning (i.e.,
LLMs, DSLs2
, motion-capture-based teleoperation, etc.)
• Can provide language-to-motion instructions ideal for edge
computing/robotics applications; doesn’t require cost/latency
associated with use of LLMs requiring connectivity to the Cloud
2. Domain specific languages.
3. Robotics Transformer 1 & 2 deep learning-based approach, 2022 – 2023.
4. Based on internal testing, actual figures will vary depending on complexity of the task.
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PALLADYNE AI PROPRIETARY
FinancialsOverview
$5.0 - $5.5M
$24.0 – 27.0M
2025
(Prelim)
2026
(Est.)
FY26 Revenue Guidance:
Acquired revenue (Engineering services + components) +
government/commercial AI development contracts
FY26 Estimated Cash Burn
• ~$6-7M/quarter (roughly flat to FY25)2
• Excludes planned $5 million development expense (over
12-18 months) to bring Project Banshee and Project
SwarmStrike to commercial readiness.
Acquired businesses targeted to be adjusted
EBITDA1
positive in 2026
>$13 million 12-month backlog2
and growing
(as of 12/31/25)
Cash to support growth: ~$47 million (cash equivalents and
marketable securities as of 12/31/25)
Combined Revenue Guidance
1
Adjusted EBITDA is defined as earnings (loss) before interest, taxes, depreciation and amortization, stock
compensation expense, transaction-related expenses, other non-recurring expenses and excludes $5M in planned
product development investments over the next 12-18 months to bring acquired products to TRL 9 (proven
operational).”
2
Backlog” represents the total value of signed and fully funded or committed customer contracts and purchase orders.
Backlog excludes unfunded options and reflects only amounts contractually confirmed as of the measurement date. The
Company expects that the majority of its backlog will be recognized as revenue within the next 12 months.
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PALLADYNE AI PROPRIETARY
FromValidation to Scale: A Clear Path to Revenue Acceleration
Growth driven by acquisitions and government development contracts in the near-term, followed by
customer adoption and scaled deployments across autonomous defense and security platforms.
Potential Revenue & Growth Drivers
• Meaningful revenue growth driven primarily
by recent acquisitions w/incremental revenue from
U.S. government and DoD development contracts
• Platform validation across autonomy, swarm and
edge intelligence
Potential Revenue & Growth Drivers
• Accelerating revenue growth driven by scaled
deployments
• ARR starts to scale
• Improving margins and operating leverage
Potential Revenue & Growth Drivers
• Additional customer wins across Palladyne IQ,
SwarmOS and BRAIN
• Follow-on government development contracts and
program expansions
• Expanded partnerships
• UAV commercialization
Optionality
• New proprietary products
• Allied countries wins
• Opportunistic M&A
Optionality
• Large customer deployments for Palladyne IQ, SwarmOS o
r BRAIN
• Opportunistic M&A
Optionality
• Early customer wins for Palladyne IQ, SwarmOS or BRAIN
• Opportunistic M&A
Potential Catalysts: Milestones
• Palladyne IQ: customer trials and live demonstrations
• SwarmOS / IntelliSwarm: customer and partner demos
with Red Cat and Draganfly
• GuideTech: development milestones for Banshee,
SwarmStrike and ALRRM
• BRAIN: Existing customer contract expansion
• New government and commercial development contracts
Potential Catalysts: Product & Platform
• UAV contract wins
• Early recurring revenue
• OEM integrations
Potential Catalysts:
• Broad enterprise and government deployments
• Repeat customers and multi-year contracts
• Platform standardization across customer systems
2026: Crawl
Prove, integrate, and de-risk
2027: Walk
Conversion from validation to contracts
2028+: Run
Scale
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PALLADYNE AI PROPRIETARY
TwoBusinesses. One Platform.
BRAIN Avionics,
Project SwarmStrike,
Project Banshee
Palladyne Defense Palladyne Commercial
Palladyne™ IQ,
Palladyne™ Pilot
Shared technology, shared intelligence one company leading autonomy for industry and defense.
IntelliSwarm™
architecture
SwarmOS
AI-enabled
mission
systems
Industrial
autonomy
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PALLADYNE AI PROPRIETARY
DoWcost-per-effect mandate
Priorities shifting from “the biggest” to “the smartest,
cheapest, fastest.”
Recent executive orders
• Warning shot to defense contractors about
manufacturing.
• Expanding military budget.
Reshoring and sovereignty: Rebuilding domestic
manufacturing for strategic independence.
AI in mission systems: Autonomy deployed into real
problems, not just analysis.
Tailwinds from Multiple Structural Shifts Driving Demand
Why Now? The World Has Changed.
The New Rules of Readiness
SwarmOS™
GuideTech (UAV & Components)
Palladyne Manufacturing
Palladyne™ IQ
SwarmOS
GuideTech (UAV & Components)
Palladyne Manufacturing
Palladyne IQ
Palladyne Manufacturing
Palladyne AI Overall
Palladyne AI Delivers
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PALLADYNE AI PROPRIETARY
ClosingVision: Built for This Moment
Palladyne AI has evolved from an autonomy software pioneer into a
vertically-integrated, U.S.-based, embodied AI company.
Palladyne AI is redefining readiness with intelligent systems
designed, built, and scaled in America.
We’ve built something rare... An American AI company that can
think, design, and build. We are ready for what’s next.
Our two businesses — Palladyne Defense and Palladyne Commercial —
share a common AI foundation and serve distinct but synergistic markets.
Together, they form a platform that merges autonomy, design, and
manufacturing — the blueprint for America’s next generation of readiness.
Backed by a strong balance sheet, expanding partnerships, and a
clear path to commercialization, Palladyne AI is entering its growth
phase from a position of strength.
• Palladyne Defense delivers intelligent systems for national security,
speed, and mission adaptability.
• Palladyne Commercial extends the same proven technology into industrial
automation, infrastructure, and operational intelligence.
26.
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PALLADYNE AI PROPRIETARY
ThankYou.
Investor Contact:
Brian Siegel, IRC, MBA
Senior Managing Director,
Investor Relations, Hayden IR
www.palladyneai.com
brian@haydenir.com
(346) 396-8696
linkedin.com/company/palladyneaicorp
Editor's Notes
#2 “Embodied AI is our foundation — it’s AI that actually touches the physical world.”
“It’s the difference between an algorithm in a data center and a system that can execute a mission, avoid threats, and deliver effects.”
“This is exactly where Department of War priorities are moving – away from analytics alone toward autonomous systems that can deliver outcomes in the battlespace and in the industrial base.”
#3 “Embodied AI is our foundation — it’s AI that actually touches the physical world.”
“It’s the difference between an algorithm in a data center and a system that can execute a mission, avoid threats, and deliver effects.”
“This is exactly where Department of War priorities are moving – away from analytics alone toward autonomous systems that can deliver outcomes in the battlespace and in the industrial base.”
#5 Technology Leadership — Proven Autonomy Architecture:
Proprietary Embodied AI software (Palladyne IQ and Palladyne Pilot) enables real-world autonomous coordination across industrial and defense systems, validated through awarded patents and upcoming field deployments
Vertical Integration — Full-Stack Capability from AI to Hardware:
With GuideTech (engineering) and Crucis (manufacturing), Palladyne delivers an end-to-end U.S.-based capability — from AI design and testing to full production — a structural advantage unmatched among peers
Dual Growth Engines — Defense and Commercial Synergy:
Palladyne Defense targets rapid-growth defense autonomy markets, while Palladyne Commercial leverages the same AI foundation to drive industrial efficiency, creating both cyclical and recurring revenue streams
Financial Strength — Well-Funded and Debt-Free:
$57.1 million in cash and marketable securities, and minimal debt post acquistion. disciplined cash management provide a multi-year operating runway and flexibility to fund strategic growth.
Strategic Timing — Positioned for the New Rules of Readiness:
Rising defense demand for attritable, AI-enabled systems, combined with reshoring and cost-effectiveness mandates, creates a powerful backdrop for Palladyne’s vertically integrated model
#7 “We’re focused on precision and mission outcomes, not indiscriminate volume.”
“Every system is designed for controlled autonomy – human command authority, auditability, and compliance with the law of armed conflict are built into our architecture.”
“That’s important for DoW and for investors who care about how ‘defense AI’ is being used.”
#8 “This is the product of years of learning about what the DoW actually needs – not just a PowerPoint idea.”
“It’s a structure that can respond to rapid prototyping solicitations, OTA contracts, and Replicator-like initiatives with real hardware and software.”
#10 Built by senior engineers from Raytheon, Lockheed, and other primes
Core capability: rapid airframe design and iteration new systems in 6–9 months
Enables agile response to evolving DoW requirements
Works collaboratively with integrators; strengthens the defense ecosystem
Provides PDYN with design agility the industry has lacked for decades
“When the Department of War leadership says ‘we need to field things faster,’ this is what it looks like in practice.”
“GuideTech is essentially an in-house skunkworks that can go from a concept sketch to a flight-tested system in under a year.”
#12 “BRAIN is the hardware anchor we’ll eventually merge with SwarmOS to form IntelliSwarm, our unified autonomy platform.”
“From a DoW cost-per-effect lens, reducing avionics cost and weight by an order of magnitude is exactly the type of shift they’re seeking.”
#14 “Crucis is exactly what the National Defense Industrial Strategy is calling for – resilient, scalable, domestic manufacturing tied to mission-critical systems.”
“It also gives us immediate credibility – we’re not asking the DoW to bet on a greenfield facility; we’re scaling an already active supplier.”
#17 The intent is not to compete head-to-head with primes on their core franchises.
We want to supply them with avionics, components, software, and design capability, and occasionally build proprietary systems where there is a clear gap that no one is addressing.
#18 The Origin: IQ is Palladyne’s original AI platform, built to orchestrate complex real-world systems — Pilot was derived from it to specialize in UAV autonomy
Core Focus: IQ enables embodied AI for industrial robots used in manufacturing, energy, logistics, and infrastructure sectors
Scalability: Platform designed to scale operational capabilities across the enterprise with a unified platform for any robot type
Revenue Model: Software licensing generates recurring, high-margin revenue
#20
CHALLENGES
Implementation of industrial robotics is time consuming; requires highly skilled, and difficult-to-find staff for programming and implementation, making it costly to deploy
Installed base of industrial robots are highly programmed for a single task and unable to easily adapt to dynamic changes in environment or defined tasks
Today’s AI approaches (e.g., LLM for generative AI) require vast amounts of training data restricting the capability to adapt to situational changes and adds significantly to the TCO for systems trained in this manner
Sensors are discrete and not optimized to work in unison or to adapt and adjust for lost functionality of a single sensor
WHAT OUR PRODUCT DOES
Accelerates robotic task programming and enables ability to successfully complete tasks despite environmental & task variations
Full stack, closed-loop autonomy for dynamic and unstructured environments – intelligent autonomous system that solves long-horizon tasks in arbitrary environments
Dynamic reasoning and learning for novel tasks with minimal demonstrations (1-5) ~1,000 times more data-efficient complex task learning compared to deep learning-based methods1
Suitable for tasks with limited training data and significant structured variation between instances
Instructional demonstration input options for task model learning: LLMs, Domain Specific Languages (DSLs), motion-capture-based teleoperation, AR/VR, video input
Low power/data requirements enable on-device edge computing
#21 The release lays out more detail, but at a high level, these are structurally friendly deals.
We are using equity and a modest amount of cash and assumed equipment debt to acquire revenue-generating businesses that we expect to be adjusted EBITDA positive in 2026.
On top of that, the GuideTech earnout is fully performance based and only kicks in if product revenue from BRAIN, Banshee, SwarmStrike and related systems exceeds seventy one million dollars over five years.
#22 The release lays out more detail, but at a high level, these are structurally friendly deals.
We are using equity and a modest amount of cash and assumed equipment debt to acquire revenue-generating businesses that we expect to be adjusted EBITDA positive in 2026.
On top of that, the GuideTech earnout is fully performance based and only kicks in if product revenue from BRAIN, Banshee, SwarmStrike and related systems exceeds seventy one million dollars over five years.
#24 Tomorrow’s advantage won’t come from size — it will come from speed, intelligence, and cost-effectiveness. That’s exactly where Palladyne operates.
“DoW leadership is increasingly explicit about cost per effect – how much impact a dollar of capability delivers, especially versus peer adversaries.”
“The Replicator initiative is a perfect example: thousands of small, smart, attritable autonomous systems across domains – ‘small, smart, and cheap’ instead of a few exquisite assets.”
“The National Defense Industrial Strategy underscores the need for resilient, U.S.-based production and flexible partners. That’s exactly where Palladyne Defense sits with the additions of Crucis and GuideTech.”
#25 “The Department of War is asking for smarter systems, lower cost per effect, and a more resilient domestic industrial base.”
“Palladyne AI is built at that intersection – an American embodied AI company that can think, design, and build.”
