BRAIN flight computer selected for counter-UAS system; contract drives near-term revenue and deepens GuideTech’s customer pipeline

Palladyne AI (NASDAQ: PDYN), a U.S.-based defense and industrial technology company delivering embodied AI-powered collaborative autonomy solutions, advanced avionics, precision-manufactured components, UAVs, and advanced aerospace design services, today announced that its subsidiary, GuideTech, has secured a new $2.3 million contract with a defense prime contractor to deploy its BRAIN flight computer and FLEX flight software framework in support of development, testing, and deployment of their low-cost kinetic counter-UAS interceptor system.

This contract represents a direct product sale of GuideTech’s BRAIN hardware and related software capabilities, with potential for follow-on production orders. GuideTech’s early support of the customer included a pre-integrated digital and avionics toolchain: BRAIN flight computer, FLEX flight software and simulation capabilities, and Reveal flight performance and analytics platform, to help quantify key design trades early and accelerate integration and verification enabling rapid design and test of the system which is now flight tested.

“This contract reflects the commercial traction we are seeing for GuideTech’s product platforms,” said Ben Wolff, President and CEO of Palladyne AI. “BRAIN is a scalable platform for autonomous systems, and we continue to see customers adopt it for operational deployments. Product wins like this generate revenue today while expanding the pipeline of opportunities as customers progress toward production.”

For more information on Palladyne AI and GuideTech, please visit https://www.palladyneai.com.

About Palladyne AI

Palladyne AI is a U.S.-based technology company developing patented embodied artificial intelligence, collaborative autonomy solutions, and autonomous systems for defense and industrial markets. Palladyne AI delivers secure, American-developed and operated platforms designed to meet the stringent requirements of U.S. government and public-sector customers, including data sovereignty, security, and compliance.

Palladyne AI’s embodied AI is designed to operate in complex, contested, and high-risk environments, enabling distributed tasking, human-on-the-loop decision-making, degraded-communications resilience, and multi-domain coordination. Its platform-agnostic autonomy stack combines real-time sensor fusion, adaptive AI models, and edge-native orchestration to support autonomous and collaborative systems across air, ground, maritime, and industrial domains. For more information about Palladyne AI, including GuideTech and Palladyne Aerospace and Defense, please visit www.palladyneai.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the capabilities GuideTech’s products, software and services; the timing of revenue from the new contract; and the expected context for the products and services to be provided under the new contract. Forward-looking statements are inherently subject to risks, uncertainties, and assumptions. Generally, statements that are not historical facts, including statements concerning possible or assumed future actions, business strategies, events, or results of operations, are forward-looking statements. These statements may be preceded by, followed by, or include the words “believes,” “estimates,” “expects,” “projects,” “forecasts,” “may,” “will,” “should,” “seeks,” “plans,” “scheduled,” “anticipates,” “intends” or “continue” or similar expressions. Such forward-looking statements involve risks and uncertainties that may cause actual events, results, or performance to differ materially from those indicated by such statements. These forward-looking statements are based on Palladyne AI’s management’s current expectations and beliefs, as well as a number of assumptions concerning future events. However, there can be no assurance that the events, results, or trends identified in these forward-looking statements will occur or be achieved. Forward-looking statements speak only as of the date they are made, and Palladyne AI is not under any obligation and expressly disclaims any obligation, to update, alter or otherwise revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.

Readers should carefully review the statements set forth in the reports which Palladyne AI has filed or will file from time to time with the Securities and Exchange Commission (the “SEC”), in particular the risks and uncertainties set forth in the sections of those reports entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements,” for a description of risks facing Palladyne AI and that could cause actual events, results or performance to differ from those indicated in the forward-looking statements contained herein. The documents filed by Palladyne AI with the SEC may be obtained free of charge at the SEC’s website at www.sec.gov.

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“This contract reflects the commercial traction we are seeing for GuideTech’s product platforms,” said Ben Wolff, President and CEO of Palladyne AI.