Merlin Inc. Common Stock (MRLN)

FairStock Score: 20/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses whose earnings are visible, whose competitive position is durable, and whose price offers a margin of safety. Merlin does not yet fit that mold. It sells AI-powered autonomous flight software for aircraft, a promising field, but the reported figures show a company still proving itself. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $2.2 million and net income was -$58.4 million, or -$1.40 per diluted share. In fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $1.0 million and net loss was $90.4 million. Compare fiscal Q2 2025, the quarter ended 2025-06-30: revenue was $3.1 million and net loss was $16.3 million, so the recent quarter had lower revenue and a much larger loss. FY2025, period ended 2025-12-31, showed net income of $6.0 million, but the quarterly record is wildly uneven. The FairStock metrics at the 2026-10-13 close of $1.29 show a P/E of -0.22, ROCE of -53.48%, TTM free cash flow of -$84.8 million, and FCF yield of -65.1%. The Altman Z-Score is -3.68, indicating financial stress, though debt-to-equity is low at 0.04. The Piotroski F-Score is 5/9, middling. A moat is not evident from these numbers; the company must demonstrate repeatable revenue, narrowing losses, and positive cash generation. The 52-week range of $1.14 to $17.00 shows how violently expectations have reversed. At 20/100 FairStock Score and no Lynch category because only one year of filed results is available, this is speculation, not value. I would need far more evidence before calling the price cheap.

In plain English: Merlin makes software and hardware that helps aircraft fly autonomously. The business looks weak today: it brings in very little revenue, loses large amounts of money, and spends much more cash than it brings in. At $1.29, the share price may look low, but the financial numbers suggest a risky, unproven company rather than a clearly cheap bargain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer