Unusual Machines, Inc. (UMAC) AI Stock Analysis
UMAC AI stock analysis summary
AI ResearchUnusual Machines, Inc. (UMAC) designs ultra-low latency video goggles for drone pilots and operates an e-commerce platform for drone enthusiasts. The company generated $31.9M in trailing twelve-month revenue, reflecting rapid recent quarterly growth of 687.3% year-over-year. However, it continues to operate at a loss, recording a net income of -$19.2M in FY2025 and an operating margin of -46.9% over the trailing twelve months.
- Market cap
- $814.8M
- Revenue (TTM)
- $31.9M
- P/E
- — fwd 67.6x
- 1Y return
- 27.9% S&P 500 16.8%
- Avg. target
- $39.00 139.1% vs last close
Bull case
- Trailing twelve-month revenue reached $31.9M, supported by a 687.3% year-over-year surge in the latest quarter.
- The balance sheet maintains strong liquidity with $313.2M in net cash and a current ratio of 53.82 as of June 30, 2026.
- Analyst consensus sets a mean price target of $39.00, indicating 139.1% potential upside from the last closing price of $16.31.
Bear case
- The company continues to produce significant losses, including a net loss of -$19.2M and negative free cash flow of -$23.2M in FY2025.
- Valuation multiples remain elevated, with a price-to-sales ratio of 25.6x compared to the US-listed Technology peer median of 2.8x.
- Dilution has been substantial, evidenced by a 553.9% increase in share count over five years.
What Unusual Machines does
Unusual Machines, Inc., based in San Juan, Puerto Rico, specializes in the design, manufacturing, and distribution of ultra-low latency video goggles built specifically for drone pilots. These goggles deliver real-time visual feedback to enhance precision and control in drone flights. The company also runs an e-commerce marketplace catering to the drone enthusiast community. Founded in 2019 as AerocarveUS Corporation, the business rebranded to Unusual Machines, Inc. in July 2022 to represent its broader focus on drone technology. It operates out of Puerto Rico to leverage the local tech ecosystem and talent pool for hardware innovation and product development.
Growth and profitability
Unusual Machines grew revenue from $4,989 in FY2021 to $158.3M in FY2023, before declining 96.5% to $5.6M in FY2024. In FY2025, revenue rebounded 101.2% to $11.2M, with gross margin widening from 27.8% in FY2024 to 33.6%. The company reported net losses of -$32.0M in FY2024 and -$19.2M in FY2025, translating to an EPS of -$3.65 in FY2025. In the trailing twelve months ending June 30, 2026, revenue stood at $31.9M, driven by quarterly revenue growth of 687.3% year-over-year. Operating margin for the trailing twelve months was -46.9%, while profit margin was -20.3%.
Balance sheet and cash flow
As of June 30, 2026, Unusual Machines held $316.4M in cash and short-term investments against $3.2M in total debt, yielding net cash of $313.2M. The current ratio stood at 53.82, and debt-to-equity was 0.01. In FY2025, the company used -$21.2M in operating cash flow and recorded free cash flow of -$23.2M, which included $2.1M in capital expenditures. Share count increased 553.9% over five years.
Valuation and performance
At $16.31 per share, Unusual Machines carries a market capitalization of $814.8M and an enterprise value of $820.3M. The stock trades at a price-to-sales multiple of 25.6x and an EV-to-revenue multiple of 25.8x, compared to a median price-to-sales multiple of 2.8x for US-listed Technology peers. Its forward price-to-earnings multiple of 67.6x also exceeds the peer median forward P/E of 18.8x. Over the past year, the stock returned 27.9%, outperforming the 16.8% one-year return for the S&P 500 (SPY).
What analysts expect
Wall Street coverage includes 2 Strong Buy ratings and 1 Buy rating, with no Hold, Sell, or Strong Sell recommendations. The mean price target is $39.00, representing a 139.1% upside compared to the last close of $16.31. For the current fiscal year ending December 31, 2026, analysts estimate revenue of $56.4M and an EPS of -$0.20. For the next fiscal year, 3 analysts project revenue of $112.2M and an EPS of -$0.32. The company has beat EPS estimates in 2 of the last 4 quarters, and its next earnings date is November 5, 2026.
Key risks and what to watch
- Ongoing cash burn could pressure liquidity if operating cash flow remains negative, following a -$21.2M cash outflow in FY2025.
- The stock exhibits extreme volatility, reflected by a beta of 14.73 and a short interest of 17.1% of float.
- A failure to achieve projected growth toward the $56.4M current fiscal year revenue estimate could compress the company's 25.8x EV-to-revenue multiple.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this UMAC AI stock analysis
This page is an AI-written research summary of Unusual Machines, Inc. (UMAC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: UMAC income statement, UMAC balance sheet, UMAC key metrics, UMAC analyst forecast, UMAC chart. See the UMAC stock overview for the latest quote and news.
UMAC AI stock analysis FAQ
What products does Unusual Machines sell?
Unusual Machines designs, manufactures, and sells ultra-low latency video goggles tailored for drone pilots. The company also operates an e-commerce marketplace dedicated to drone enthusiasts.
Is Unusual Machines profitable?
No, Unusual Machines is not profitable. It reported a net loss of -$19.2M in FY2025 and an EPS of -$0.25 over the trailing twelve months ending June 30, 2026.
What is the analyst outlook for UMAC stock?
Analysts hold 2 Strong Buy ratings and 1 Buy rating on UMAC, with a mean price target of $39.00. That target sits 139.1% above the stock's closing price of $16.31.
How much cash does Unusual Machines have on its balance sheet?
As of June 30, 2026, the company held $316.4M in cash and short-term investments against $3.2M in total debt, resulting in net cash of $313.2M.