Key Highlights

  • Merlin was trading up 20.3% at USD 1.1602 on Friday, November 13, 2026, in market data, after reporting third-quarter 2026 results following the close on November 12.
  • Third-quarter Revenue was USD 3.46 million, up from USD 2.2 million in the second quarter and ahead of a published USD 2.00 million estimate.
  • GAAP Net Income was USD 73.8 million, or USD 0.37 a diluted share, driven by a USD 103.6 million non-cash gain on the Fair Value of Warrant liabilities.
  • Adjusted EBITDA was a loss of USD 24.1 million, narrower than USD 27.8 million in the second quarter, and cash and short-term investments were USD 161.6 million.

A Warrant Gain Creates a Headline Profit

Merlin (NASDAQ:MRLN) was trading up 20.3% at USD 1.1602 on Friday, November 13, 2026, after it reported third-quarter results on November 12. The company posted GAAP net income of USD 73.8 million, but a USD 103.6 million non-cash gain from the change in fair value of warrant liabilities drove it, so the profit is an accounting item, not operating income. One Earnings calendar page shows a loss of USD 0.42 a share, which conflicts with the USD 0.37 profit in the company income statement; the company figure is used here. A prior close near USD 0.96 is implied (calculated). The screener move is the figure of record for the live session.

Revenue Beat, a Narrower Loss and a 2029 Funding Claim

Revenue of USD 3.46 million, about 57% above the second quarter (calculated), beat a USD 2.00 million estimate, and adjusted EBITDA was a loss of USD 24.1 million against USD 27.8 million a quarter earlier. Cash, equivalents and short-term investments were USD 161.6 million at September 30, down USD 22.3 million from June 30 (calculated). Management gave no numeric guidance but said 2027 operating expenses should be meaningfully below 2026 levels and that its plan funds operations into 2029 without Capital raises. The Boston company develops AI-powered autonomous flight software, including the Merlin Pilot, for aircraft, and has about 125 employees.

Market Value Near Cash and the Risks Ahead

With 101.07 million shares outstanding, the Market Value at USD 1.1602 is about USD 117 million (calculated), below the USD 161.6 million of cash and investments, which shows how heavily the market discounts the cost of reaching revenue scale. The second-quarter net loss was USD 58.4 million on USD 2.19 million of revenue, and the 52-week range was USD 0.82 to USD 17.00. Risks include slow certification, the lumpy nature of early contracts and a low share price after a steep decline. On October 20 the company expanded flight operations to North Central State Airport. At the current adjusted loss rate, cash would last about 6.7 quarters (calculated), so the 2029 claim depends on spending falling.

Where Things Stand

The rally appears tied to the third-quarter report, though the headline profit is not the reason to read into it. Merlin (NASDAQ:MRLN) was trading up 20.3% after revenue beat estimates, the adjusted loss narrowed and management pointed to lower 2027 spending and funding into 2029, while the USD 73.8 million net profit came from a warrant fair value gain. Cash of USD 161.6 million exceeds the calculated market value. Next markers are quarterly filings, contract announcements, certification milestones and the pace of cash use.