v3.26.3
Segments
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segments Segments
The Company’s Chief Executive Officer (“CEO”), acting as the Chief Operating Decision Maker (“CODM”) regularly reviews and manages certain areas of its businesses, resulting in the Company identifying two reportable segments for the three and six months ended June 30, 2026: Unmanned Aircraft Systems (“UAS”) and Advanced Defense Systems (“ADS”). The Company manages and reports its operating results through these two reportable segments. During the three months ended June 30, 2026, the Company decided to wind-down the ADS segment as it would require substantial additional time and capital in order to generate revenue. While the Company completes the wind-down operations, the CODM continues to review the financial information of these two reportable segments, and this decision does not result in a change to Company’s reporting segments.
For the three and six months ended June 30, 2025, the Company operated as two segments: Internet of Things (“IoT”) and Commercial Aviation, which included the TriFan 600 development program. During fourth quarter of the prior year, in connection with the sale of the Inpixon Business, the IoT segment was retroactively reclassified to discontinued operations, as a result the financial information for the IoT segment is not presented below. Additionally, in early 2026, the TriFan 600 program was paused and replaced with the ADS segment. Given the strategic shift, the disposal of the IOT segment, and the addition of the UAS segment in the fourth quarter of the prior year, the Company did not recast the segment financial information for the three and six months ended June 30, 2025.
The UAS segment includes the operating results of Drone Nerds and Anzu Robotics, which are owned by the Company’s majority-owned subsidiary, XTI Drones Holdings, which provides an integrated suite of UAS solutions across hardware distribution, training, compliance management support, repair and maintenance, fleet sustainment, and related services. This segment is focused on revenue generation and lifecycle support for enterprise, public safety, and government related customers.
Beginning in the second quarter of 2026, the Company changed the measure of segment profit or loss used by its CODM from income (loss) from operations to Adjusted EBITDA. The change reflects a change in the manner in which the Company’s CODM evaluates segment performance and allocates resources.
The Company has presented Adjusted EBITDA as the measure of segment profit or loss for the three and six months ended June 30, 2026. The Company has not recast prior-period segment information to present Adjusted EBITDA because Adjusted EBITDA was not the measure of segment profit or loss used by the CODM during those prior periods. The CODM used net loss to evaluate segment performance and allocate resources during the first quarter of 2026 and prior periods.

The CODM uses Segment Adjusted EBITDA as management’s primary segment measure of profit or loss in assessing segment performance and in deciding how to allocate the Company’s resources. Segment Adjusted EBITDA is calculated as segment revenues less significant segment expenses, specifically, cost of revenue, research and development (excluding stock-based compensation expense), sales and marketing (excluding stock-based compensation expense), and general and administrative (excluding stock-based compensation and depreciation expense). Significant segment expenses also exclude certain costs that are nonrecurring, non-cash or are not related to the segments’ underlying business performance. A reconciliation of total Segment Adjusted EBITDA to consolidated loss from continuing operations before income taxes for the three and six months ended June 30, 2026 is included in the tables below. Unallocated operating expenses include costs that are not specific to a particular segment include administrative and accounting staff, public company costs, general liability and other insurance, professional fees, and other similar corporate expenses.
During the three and six months ended June 30, 2025 the CODM managed the business as two reportable segments. The CODM used consolidated net loss to measure segment performance. Unallocated operating expenses include costs that are not specific to a particular segment include administrative and accounting staff, public company costs, general liability and other insurance, professional fees, and other similar corporate expenses. The UAS segment reflects the results of Drone Nerds beginning in November 2025, there were no UAS segment operations during the three and six months ended June 30, 2025. Segment operating results are presented on a consolidated basis prior to the allocation of net income (loss) attributable to noncontrolling interests.

Substantially all revenues and long-lived assets for continuing operations are located in the United States. Segment assets are not provided because the Company’s chief operating decision maker does not regularly review or receive asset information by reportable segment for purposes of allocating resources or assessing segment performance.

The following tables reflect the results of operations from our business segments for the periods indicated below (in thousands):
Three Months Ended June 30, 2026
UASADS Unallocated
Costs 		Total
Revenue$32,449 $— $— $32,449 
Less:
Cost of revenue26,806 — — 26,806 
Research and development61 516 — 577 
Sales and marketing (1)1,584 22 285 1,891 
General and administrative (2)1,840 362 5,920 8,122 
Segment Adjusted EBITDA$2,158 $(900)$(6,205)(4,947)
Reconciling items to consolidated loss from continuing operations before income taxes
Depreciation and amortization(271)
Interest expense, net(148)
Merger and acquisition transaction costs(90)
Stock-based compensation expense(3,774)
Change in fair value of warrant liability8,413 
Other(33)
Consolidated loss from continuing operations before income taxes$(850)
(1) The difference between this significant segment expense and “Sales and marketing” within the Company’s Consolidated Statements of Operations relates to stock-based compensation ($0.08 million).
(2) The difference between this significant segment expense and “General and administrative” within the Company’s Consolidated Statements of Operations relates to stock-based compensation ($3.7 million) and depreciation ($0.04 million).
Six Months Ended June 30, 2026
UASADSUnallocated
Costs		Total
Revenue$60,145 $— $— $60,145 
Cost of revenue49,356 — — 49,356 
Research and development (1)108 1,408 — 1,516 
Sales and marketing (2)3,010 31 799 3,840 
General and administrative (3)3,707 725 11,384 15,816 
Segment Adjusted EBITDA$3,964 $(2,164)$(12,183)(10,383)
Reconciling items to consolidated loss from continuing operations before income taxes
Depreciation and amortization(550)
Interest expense, net(302)
Merger and acquisition transaction costs(90)
Stock-based compensation expense(8,449)
Change in fair value of warrant liability(13,034)
Other212 
Consolidated loss from continuing operations before income taxes$(32,596)
(1) The difference between this significant segment expense and “Research and development” within the Company’s Consolidated Statements of Operations relates to stock-based compensation ($0.3 million).
(2) The difference between this significant segment expense and “Sales and marketing” within the Company’s Consolidated Statements of Operations relates to stock-based compensation ($0.5 million).
(3) The difference between this significant segment expense and “General and administrative” within the Company’s Consolidated Statements of Operations relates to stock-based compensation ($7.7 million) and depreciation ($0.09 million).
Three Months Ended June 30, 2025
Commercial
Aviation 		Unallocated
Costs 		Total
Operating expenses
Research and development$1,380 $— $1,380 
Sales and marketing280 654 934 
General and administrative(1)
138 3,336 3,474 
Other expenses(2)
8 — 8 
Total operating expenses1,806 3,990 5,796 
Loss from operations(1,806)(3,990)(5,796)
Other expense— (9,719)(9,719)
Net loss from continuing operations before income tax(1,806)(13,709)(15,515)
Income tax expense— (9)(9)
Net loss from continuing operations$(1,806)$(13,718)$(15,524)
Six Months Ended June 30, 2025
Commercial
Aviation		Unallocated
Costs		Total
Operating expenses
Research and development$2,504 $— $2,504 
Sales and marketing333 876 1,209 
General and administrative(1)
687 9,583 10,270 
Other expenses(2)
16 — 16 
Total operating expenses3,540 10,459 13,999 
Loss from operations(3,540)(10,459)(13,999)
Other expense— (12,214)(12,214)
Net loss from continuing operations before income tax(3,540)(22,673)(26,213)
Income tax benefit— 6 6 
Net loss from continuing operations$(3,540)$(22,667)$(26,207)
(1)Unallocated general and administrative costs primarily consist of stock compensation, personnel expenses, professional fees, and public company costs.
(2)Other expenses include amortization of intangibles.