Palladyne AI Corp. (PDYN) shares have decreased by 15.8% following the release of its quarterly earnings for Q2 2025, which ended June 30. In contrast, the S&P 500 rose by 1.3% during the same period. The company reported a loss of $0.20 per share, with revenues falling 63% to $1 million, down from $2.7 million a year prior, due to reduced product development contract revenue.
For the first half of 2025, Palladyne AI’s revenue was $2.7 million, a 56% decline from $6.2 million year-over-year. The company experienced a net loss of $7.5 million, expanded from a $5.3 million loss previously, while operational costs rose to $9.1 million, driven by a 33% increase in R&D expenditures. The company maintains a liquidity position of $62.7 million in cash and equivalents and has a backlog of $1.7 million, with expectations for modest revenue growth in 2025.
Looking ahead, Palladyne AI expects continued short-term losses as it invests in commercialization efforts. In July 2025, it sold 77,960 shares, raising approximately $0.7 million under its equity program, signaling possible plans for further capital raises under favorable market conditions.
