MRLN · Merlin, Inc.

Merlin, Inc. reported its first quarterly results as a public company following its business combination with Inflection Point Acquisition Corp. IV on March 16, 2026. Revenue for Q1 2026 was $1.0 million, slightly up from $0.9 million in the prior year period, reflecting initial contract revenue from its C-130J autonomy program and other development work. Gross profit improved to $1.8 million from $0.2 million, driven by a contract loss adjustment of $2.5 million that reversed prior provisions. Operating expenses increased significantly to $28.8 million from $11.6 million, with research and development spending more than doubling to $14.1 million and general and administrative expenses rising to $14.1 million, reflecting the costs of being a public company and scaling operations. The GAAP net loss of $90.4 million was heavily impacted by non-cash fair value changes: a $87.8 million loss on convertible promissory notes (settled in the merger) and a $26.6 million gain on warrant liabilities. Excluding these and other items, Adjusted EBITDA loss was $23.3 million, compared to $10.4 million in Q1 2025. Cash and short-term investments stood at $122.8 million at quarter end, with no debt. Subsequent to quarter end, on May 1, 2026, Merlin closed an equity financing led by an existing institutional shareholder, boosting cash to approximately $183 million. Management highlighted operational milestones including automated takeoffs and certification progress, and introduced Condor, a new product family targeting large multi-crew aircraft. The company's focus remains on scaling commercialization and advancing its autonomous flight technology.