Palladyne AI Corp. Common Stock (PDYN)

FairStock Score: 60/100 — STEADY

Key Financials

AI Analysis

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

As a value investor, I begin with durable earning power, and Palladyne does not yet show it. The company sells embodied AI software for robots, but in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $5.8M while net income was $-12.3M. In fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $3.5M and net income was $-12.6M. The annual picture is uneven: in fiscal year 2025, the year ended 2025-12-31, net income was $10.0M on revenue of $5.2M, after fiscal year 2024, the year ended 2024-12-31, produced a $72.6M net loss on $7.8M of revenue. FairStock classifies this as a Lynch turnaround because it returned to profit after a loss within the last three years, but the latest quarters show losses are still large. Financial health is weak: FairStock calculates trailing free cash flow of $-36.7M, an FCF yield of -16.0%, ROE of -48.39%, ROCE of -30.91%, an Altman Z-Score of -1.52, and a Piotroski F-Score of 4/9. Debt is modest at D/E 0.15, but cash consumption is the real risk. Valuation offers little margin of safety: at the 2026-10-13 close of $4.64, FairStock shows a P/E of -6.54 and P/B of 3.22. Beta of 3.66 signals high volatility. A competitive moat is not evident from these numbers. The price may be fair only if losses shrink and revenue becomes durable; otherwise it is expensive relative to today's fundamentals.

In plain English: Palladyne AI makes software that helps robots and machines understand and act in the real world. The company is small, has grown revenue sharply from a low base, but it is still losing a lot of money and burning cash. At $4.64, the price looks speculative rather than clearly cheap because the business has not yet shown steady profits.

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) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

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