XTI Aerospace 2025 Q2 Earnings Worsening Net Loss Despite EPS Improvement

XTI Aerospace (XTIA) reported its fiscal 2025 Q2 earnings on August 14, 2025. The results fell short of positive expectations, as the company continued to post significant losses despite an improvement in its earnings per share. The performance underscores ongoing financial challenges, with net losses expanding year-over-year and no clear signs of near-term profitability.

Revenue
XTI Aerospace’s total revenue declined sharply by 41.8% to $600,000 in Q2 2025, down from $1.03 million in the same period a year earlier. The Industrial IoT segment accounted for the entire revenue amount, while both the Commercial Aviation and Unallocated costs segments remained at $0, reflecting a lopsided revenue performance.

Earnings/Net Income
The company’s net loss widened to $20.86 million in Q2 2025, a 41.8% increase from the $14.71 million loss in Q2 2024. However, the loss per share improved significantly, narrowing to $2.93 from $261.99 a year ago—a 98.9% improvement. Despite this EPS improvement, the overall financial picture remains bleak, with the company continuing to post losses for the 12th consecutive year during this quarter.

Price Action
XTI Aerospace’s stock has seen a deteriorating trend in recent trading sessions. The shares edged down 0.00% during the latest trading day, declined 3.19% over the most recent full trading week, and fell 11.22% month-to-date, reflecting weak investor sentiment.

Post-Earnings Price Action Review
A strategy of buying XTIA shares following a quarterly revenue increase and holding for 30 days has proven disastrous over the past three years, delivering a return of -99.90%, underperforming the benchmark by 122.21%. The Sharpe ratio of -0.38 highlights the substantial risk associated with the investment, while the maximum drawdown of 0.00% illustrates the strategy’s failure to limit losses.

CEO Commentary
XTI Aerospace CEO John Thompson acknowledged the company’s financial struggles but expressed cautious optimism for the future. He emphasized efforts to reduce operational inefficiencies and cut costs, particularly in light of the reported $20.86 million net loss and a negative EPS of $2.93. Thompson also highlighted the company’s commitment to strategic R&D investments, especially in the electric aviation sector, and its goal of strengthening market positioning through new partnerships and next-generation aircraft development.

Guidance
Thompson outlined forward-looking guidance, predicting revenue growth in 2026 as key aircraft development projects reach milestones. The company aims to reduce operational costs by 15% by the end of 2026 and target positive net income by the second half of that year. Additionally, XTI Aerospace plans to invest $50 million in R&D over the next 18 months to support its electric propulsion technology. Thompson also emphasized the importance of securing regulatory approvals and commercial partnerships to enhance the company’s competitive standing in the global aerospace market.

Additional News
On August 15, 2025, Nigerian newspaper Punch reported that Nigeria's two dominant political parties, the Peoples Democratic Party (PDP) and the All Progressives Congress (APC), strongly rejected a Canadian court judgment that labeled them as terrorist organizations. The parties condemned the ruling and asserted their commitment to democratic principles. In separate news, a fire in Rivers State destroyed millions worth of goods in Port Harcourt, raising concerns about safety and security. Additionally, the Dangote Group pledged full medical support for the injured sister of BBNaija contestant Phyna, highlighting the ongoing public and corporate interest in entertainment personalities in Nigeria.