Unusual Machines Inc. Common Stock (UMAC)

FairStock Score: 57/100 — STEADY

Key Financials

AI Analysis

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

As a Buffett/Graham investor, I start with whether the business earns money and whether the price offers a margin of safety. Unusual Machines fails the first test today. In fiscal Q2 2026, the quarter ended 2026-06-30, it reported revenue of $16.7 million and a net loss of $7.8 million, or diluted EPS of -$0.16. Yes, sales are expanding: fiscal FY2024 revenue was $5.6 million, fiscal FY2025 revenue was $11.2 million, and Q2 2026 revenue dwarfed the $2.1 million reported in Q2 2025. But the company lost $19.2 million in FY2025 and $32.0 million in FY2024, and the Lynch rules show losses in each of the last four years. Free cash flow is negative $58.5 million over the trailing twelve months, a negative 6.0% FCF yield on the $971.2 million market cap at the 2026-10-13 close of $19.44. The balance sheet looks lightly levered with debt-to-equity of 0.01, and Altman Z of 62.53, but low debt does not fix poor economics. ROE is -2.94% and ROCE is -8.27%. The Piotroski F-Score is 3/9, suggesting weak fundamental momentum. A Q1 2026 profit of $10.3 million on $8.1 million revenue is a positive oddity, but one quarter does not create a durable moat. The drone-components business may have growth, yet competition in hardware is brutal, and the stock's beta of 14.73 signals extreme volatility. At 2.5 times book with no earnings, the price already discounts a lot of future success. I would need evidence of sustainable profits and cash generation before calling this a value investment.

In plain English: Unusual Machines makes small drones and important parts for them, selling to businesses and through stores and online. Sales are growing quickly, but the company is still losing money and using cash. At the recent price, the stock looks expensive compared with today's profits, because there are none yet.

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