Swarmer’s revenue and shares fall ahead of Ratel Robotics deal: key points from Q3 report

Ukrainian-American drone swarm software developer Swarmer has announced its Q3 financial results. The company’s revenue returned to its Q1 level, at $25,554. The developer earned most of its revenue from support services under existing customer agreements. Last quarter, Swarmer generated $216,000 in revenue by invoicing drone manufacturer SkyKnight for its software.

Operating expenses, meanwhile, rose to $9.4m, compared with $7.5m last quarter. Of this, $1.7m was share-based payments. The shares are currently priced at $8.7 each. Their value has been gradually falling since the start of autumn, when they peaked at $35.6.

Net loss was approximately $9.3m, compared with $7.3m in the previous quarter. At the same time, Swarmer’s cash and cash equivalents also increased. As of 30 September, they stood at $37.3m, against $25.3m last quarter. This is driven by proceeds under the company’s equity line of credit.

Swarmer calls Q3 a pivotal period for the company, as it moved closer to its goal of supplying battle-proven technologies to allied countries. The acquisitions of several Ukrainian manufacturers announced in previous months are expected to help with this.

The acquisition of Ratel Robotics is due to close this month. The deal is worth $224m, to be paid in cash and shares. The financial report also discloses Ratel’s figures: $42.1m in revenue over the first nine months of this year. The company’s management expects it to earn a further $35–40m in Q4.

The report also mentions the purchase of part of the intellectual property of Ukrainian drone manufacturer Vataga Drone. However, Swarmer gives no new details beyond those previously known.

The partnership with Vectus Air Defense Systems is also expected to bring the company closer to its stated goal. As Defender reported, Swarmer plans to launch production in Poland of integrated air defence systems, which Vectus will procure and deploy.