Merlin Posts $24.1 Million Adjusted EBITDA Loss in Third Quarter

Merlin, Inc. (Nasdaq: MRLN) posted $3.5 million in third-quarter revenue and a $24.1 million adjusted EBITDA loss, alongside two new military awards for its autonomous flight programs.

The results, released at 4:05 p.m. ET (21:05 UTC) Thursday, Nov. 12, cover the quarter ended Sept. 30. Revenue increased from $2.2 million in the second quarter. Merlin’s adjusted EBITDA loss narrowed from $27.8 million, while its operating loss widened from $16.6 million a year earlier.

Merlin recorded $73.8 million in GAAP net income. That figure included a $103.6 million noncash gain from changes in the fair value of warrant liabilities.

The company received an $8.9 million task order from U.S. Special Operations Command (USSOCOM) for the next phase of its C-130J autonomy program, which is moving into integration. It also received a $500,000 U.S. Africa Command (USAFRICOM) contract for an initial casualty-evacuation demonstration using its Merlin Pilot system on a Cessna 208B Grand Caravan.

At Sept. 30, Merlin held $161.6 million in cash, cash equivalents and short-term investments, down from $183.9 million at June 30. The company had no debt.

Merlin expects its 2027 operating expenses to be meaningfully below 2026 levels as it focuses spending on programs with funded work and a clear path to revenue. Its goal is to fund its plan into 2029 without relying on capital raises.