IN Brief:
- Third-quarter Guerrilla RF revenue increased 61% year on year to $10.1 million, with a gross margin of 71.7%.
- Aerospace and defence contributed $4.1 million as demand increased for drone, satellite, and tactical communications components.
- The company ended September with $16.2 million in backlog and expects GaN products to contribute more meaningfully from 2027.
Guerrilla RF increased third-quarter revenue by 61% year on year to $10.1 million in 2026, led by rising demand for radio-frequency semiconductors in aerospace and defence. The North Carolina company reported a 71.7% gross margin, $2.4 million in operating income, and a record $16.2 million product backlog at 30 September. Growth in satellite, drone, and tactical communications programmes was central to its performance during the period.
Revenue was also 26% higher than in the second quarter, while gross profit grew 70% year on year to $7.2 million. Gross margin increased by approximately 416 basis points, reflecting the combination of sales growth and product mix. Operating expenses rose by 8% to $4.8 million, considerably more slowly than revenue, and the company moved from a $0.2 million operating loss a year earlier to a $2.4 million operating profit. Its operating margin reached 24.1%.
Aerospace and defence sales reached $4.1 million, up 259% from the comparable quarter and accounting for approximately 40% of total revenue. The segment had represented 18% in the third quarter of 2025 and 28% in the second quarter of 2026. Guerrilla RF attributes the growth to devices used in drones, satellite communications, and tactical networks, where RF components are selected against requirements for gain, noise figure, linearity, frequency coverage, and power efficiency.
The company has changed its market reporting to present aerospace and defence separately from the catalogue business, where those sales were previously grouped. Comparative figures have been recast on the new basis. The remaining catalogue category contributed $2.5 million, an increase of 32%, while infrastructure revenue rose 78% to $1.4 million. Infrastructure demand includes repeaters, distributed antenna systems, and base stations, whose radio chains depend on amplification and signal-conditioning components across multiple frequency bands.
Automotive revenue fell 9% from the previous year to $2.1 million, despite improving 11% from the second quarter. Guerrilla RF cited lower demand linked to satellite digital audio radio, navigation, and vehicle-to-everything applications, partly offset by stronger compensator sales. The contrast with aerospace orders reflects differences in customer programmes and the devices required within each receiver or transmitter path. Orders and production schedules can change the mix of components shipped even where related applications use similar RF circuit functions.
Alongside existing products, Guerrilla RF is developing its gallium nitride (GaN) portfolio. GaN devices are used in RF power amplifiers where high power density, frequency capability, and efficiency are relevant design requirements. Achievable output and thermal performance depend on the device structure and surrounding circuit, including biasing, matching, and heat removal. Management expects the portfolio to contribute more meaningfully to revenue from 2027, making device qualification and commercial adoption part of its forward growth programme.
The company also recorded a $3.7 million statutory net loss, compared with a $0.6 million loss a year earlier, primarily because of a $6.0 million non-cash charge from remeasuring warrant liabilities. That accounting movement reduced reported net income during a quarter in which the underlying business generated positive operating profit. Adjusted EBITDA, its non-GAAP operating measure, rose to $2.9 million from $0.3 million, equivalent to 28.5% of revenue. The statutory and adjusted figures describe different aspects of the same quarter.
Operating activities generated $2.3 million in cash in the quarter, and cash at 30 September stood at $6.3 million. Across the first nine months, revenue increased 53% to $24.6 million, while operating cash flow reached $3.5 million, compared with a $2.5 million outflow a year earlier. The cash performance sits alongside higher operating profitability and continued investment in RF devices and manufacturing support.
Product backlog rose from $13.6 million at the end of June to $16.2 million at September’s close, compared with $6.6 million a year earlier. The figure captures orders remaining to be fulfilled, with subsequent revenue recognition depending on delivery schedules. The quarterly filing also records two customers accounting for 46% and 23% of revenue respectively. The scale of these relationships makes the timing of major customer programmes especially influential on component shipments and reported quarterly sales.
Guerrilla RF enters the final quarter of 2026 with higher aerospace and defence sales, an expanded order book, and stronger operating cash generation. Automotive demand remains mixed, while its planned GaN expansion will depend on qualification and sales during 2027. The next earnings period will show how far the larger backlog converts into deliveries and whether the reported segment growth is maintained.
