XTI Aerospace, Inc. (XTIA)·Q4 2024 Earnings Summary

Executive Summary

• Q4 2024 preliminary results: revenue approximately $1.00M; operating expenses approximately $10.6M; cash and cash equivalents approximately $4.1M; debt approximately $2.7M as of 12/31/24, with cash ~$10.5M and debt ~$2.1M as of 3/27/25 .
• The quarter was driven by continued engineering progress (FAA general familiarization presentation; Flight Transition Simulator v1.9 with OEI capability) and corporate developments (auditor transition to CBIZ; ongoing Nasdaq compliance process), while financials reflect early-stage commercialization and investment in development .
• No Wall Street consensus EPS/revenue estimates were available via S&P Global for Q4 2024; accordingly, beats/misses versus estimates cannot be assessed.
• Near-term stock catalysts include resolution of Nasdaq listing appeal, potential strategic financing progress, and continued FAA certification milestones .

What Went Well and What Went Wrong

What Went Well

• FAA engagement advanced: completion of the TriFan 600 general familiarization presentation to >60 FAA representatives, a “significant step forward” toward Type Certification .
• Engineering progress: released Flight Transition Simulator v1.9 with One-Engine-Inoperative capability to improve modeling of critical flight scenarios; “another step forward in ensuring the safety and reliability” of TriFan 600 .
• Strategic traction: Mesa Air Group’s conditional preorder for 100 TriFan 600 aircraft announced earlier in 2024 (approx. $1B at full exercise) and a proposed strategic equity investment of up to $55M at a $275M post-money valuation, validating market interest pending consummation .

What Went Wrong

• Heavy spend vs. nascent revenue: Q4 OpEx ($10.6M) far exceeded preliminary revenue ($1.0M), underscoring development-stage economics and the need for capital discipline .
• Listing risk: received Nasdaq minimum bid deficiency (July) and “Low Price Deficiency” (Nov.), with an appeal underway; the outcome remains uncertain (potential delisting risk) .
• Controls and legal overhangs: material weaknesses in ICFR noted historically; litigation includes the Xeriant complaint seeking damages “in excess of $500M” and a FINRA arbitration initiated by Chardan; change of auditor following CBIZ acquisition of Marcum attestation business adds transition complexity .

Financial Results

Notes: Q4 2024 cost of revenues, gross profit, net loss, and EPS were not provided in the preliminary 8‑K; Q2 2024 gross margin computed from disclosed revenue/gross profit.

Segment Breakdown (available period)

Selected KPIs

Consensus vs. Actuals (S&P Global)

Guidance Changes

Earnings Call Themes & Trends

Note: No Q4 2024 earnings call transcript was available in the documents reviewed.

Management Commentary

• “Completion of the Gen Fam presentation is a significant step forward for the TriFan 600 and our vision for transforming air travel.” – Scott Pomeroy, CEO .
• “We believe the inclusion of OEI in our Flight Transition Simulator is another step forward in ensuring the safety and reliability of this groundbreaking aircraft.” – Scott Pomeroy, CEO .
• “We are nearing the completion of our conceptual design review phase… transitioning into the preliminary design review stage in early 2025.” – Scott Pomeroy, CEO .
• “Assuming the order is fully exercised, [Mesa] would represent approximately $1 billion in revenue… validating the interest and support we are witnessing in the market.” – Scott Pomeroy, CEO (Q2 business update) .
• “Assuming the completion of the proposed investment, we believe the additional capital will help accelerate the development of the TriFan…” – Scott Pomeroy, CEO .

Q&A Highlights

Not applicable; no Q4 2024 earnings call transcript was available in the reviewed materials.

Estimates Context

• S&P Global consensus estimates for Q4 2024 EPS and revenue were unavailable for XTIA; therefore, no beat/miss determination versus Street estimates can be made at this time.
• Given preliminary Q4 revenue ($1.00M) and OpEx ($10.6M), and Q3 loss metrics, Street models (if any emerge) will likely need to reflect continued development-stage losses and modest Industrial IoT revenue contribution until certification and commercialization milestones convert to revenue .

Key Takeaways for Investors

• Development-stage profile persists: preliminary Q4 revenue (~$1.0M) against ~$10.6M OpEx highlights ongoing investment in certification and engineering; monitor cash runway and financing execution .
• Regulatory progress is tangible: FAA general familiarization completed; continued engagement should be viewed as a positive de-risking step toward Type Certification .
• Strategic optionality: proposed $55M equity investment at $275M valuation and Mesa conditional preorder signal potential commercial/financial validation, but both require execution to impact cash and backlog .
• Listing risk is a live overhang: Nasdaq “Low Price Deficiency” with appeal underway; a successful remediation plan is critical to avoid delisting and potential liquidity impact .
• Legal and controls: outstanding litigation (Xeriant; Chardan) and historical control weaknesses warrant ongoing diligence; auditor transition to CBIZ noted .
• Near-term trading lens: headline sensitivity to FAA milestones, financing closings, and Nasdaq decisions is high; updates on supplier selections and PDR timing could serve as positive catalysts .
• Medium-term thesis: success hinges on certification timeline, capital availability, and converting conditional demand into firm orders; Industrial IoT can provide incremental revenue but is unlikely to offset aviation development burn near term .

Sources

• Q4 2024 preliminary 8‑K (Item 2.02; auditor change):
• Engineering/FAA press releases (Oct–Dec 2024):
• Q3 2024 10‑Q (financials, segments, geography, listing, legal):
• Q2 2024 business update:
• Proposed investment press release: