Drone Maker's Stock Sees Surge of More Than 8%

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Unusual Machines Inc. (UMAC:NYSEAMERICAN) shares ended the Friday trading session with an 8.1% increase, closing at US$12.84, according to an October 27 report by Zacks Equity Research on Yahoo! Finance.

The rise occurred on impressive trading volume, with more shares exchanging hands than usual. This contrasts with the stock's 9.4% decline over the past four weeks, Zacks noted.

The price surge is attributed to the company's strong enterprise sales, favorable tariffs and regulations for domestic drone companies, and the expansion of Rotor Riot’s operations, which have boosted margins.

The company is anticipated to report quarterly earnings of US$0.13 per share in an upcoming release, marking a year-over-year increase of 143.3%. Revenues are projected to reach US$2.76 million, an 80.4% rise from the same quarter last year, the article said.

While earnings and revenue growth expectations provide insight into a stock's potential strength, empirical research indicates that trends in earnings estimate revisions are closely linked to short-term stock price movements. For Unusual Machines, Inc., the consensus EPS estimate for the quarter has been revised upward by 71.4% over the past 30 days. A positive trend in earnings estimate revisions often leads to price appreciation. Therefore, it is important to monitor UMAC to see if this recent increase can translate into further strength, Zacks said.

The stock currently holds a Zacks Rank #2 (Buy) on the Monday list of Zack's Rank #1 (Strong Buy) stocks.

101st Airborne Order

The company announced an order from the U.S. Army's 101st Airborne Division for 3,500 NDAA-compliant motors manufactured at its new facility in the United States in an October 15 release.

These motors will aid the division in deploying the new Attritable Battlefield Enabler (A.B.E.) V1.01 drones. Alongside the motors, the order includes U.S.-made, NDAA-compliant, and BLUE UAS-listed components: the Aura Analog Camera, Aura VTX, Brave Flight Controller, and Brave ESC. Together, these components ensure the drones adhere to strict compliance standards, UMAC said. The Army has also expressed intentions to expand procurement, aiming for an additional order of 20,000 components, including motors, from Unusual Machines in 2026.

"Supporting American businesses means building the strength we rely on in the field — it ensures our systems are trustworthy and built to our standards," said Chief Warrant Officer 4 John Brown, Robotics, Automation & Innovation Directorate for the 101st Airborne Division. "The ability to train like we fight, using drones that are reliable, NDAA-compliant, and under a US$1,000 price point, gives our soldiers the confidence they need for real-world scenarios. The A.B.E. V1.01 is an important step forward in that effort."

Stacy Wright, executive vice president of revenue at Unusual Machines, said, "This order demonstrates the value of investing in U.S. manufacturing and compliance. The motors produced at our new facility are designed to meet both the Army's requirements and the broader push for U.S.-based production. We are proud to support the 101st Airborne Division as they adopt the A.B.E. V1.01 platform."

A 'Cost-Effective Approach' to Prototyping

From October 17 to 19, 2025, Litchfield Hills Analyst Barry Sine attended Unusual Machines' annual Rotor Riot Rampage, often described as the "Burning Man for Drones," at the Barnwell Nuclear Fuel Plant in Barnwell County, South Carolina.

The event drew approximately 250 FPV (first-person view) drone enthusiasts for racing, freestyle flying, and community interaction, Sine noted in an updated research note on October 23.

"We engaged with numerous customers and key UMAC executives, gaining insights into the company’s retail e-commerce strategy, which, despite the focus on its growing enterprise business (such as a recent 3,500-unit U.S. Army order), accounted for the majority of Q2 2025 revenue," Sine wrote. "UMAC's investment in this event highlights its dedication to balancing its retail roots with defense-sector ambitions."

Rotor Riot Rampage exemplifies UMAC's dual-track strategy: maintaining retail leadership through rotorriot.com while expanding enterprise sales, the analyst noted.

With NDAA-compliant parts gaining popularity, as evidenced by orders from the 101st Airborne Division, UMAC is well-positioned to secure defense contracts while fostering its FPV community, the analyst said.

"We recommend monitoring rotorriot.com's sales metrics and future event expansions for retail upside," Sine said in the report. The analyst rated the stock a Buy with a US$25 per share target price, a 115% return from the US$11.67 per share at the time the note was written.

The stock currently holds a Zacks Rank #2 (Buy) on the Monday list of Zack's Rank #1 (Strong Buy) stocks.

In an earlier note on Oct 14, Sine highlighted two benefits for the 101st of acquiring the parts online and assembling the drones internally. The total cost of the parts needed to build a single ABE 1.01 was US$750, more than three times lower than commercial alternatives priced at about US$2,400 each. This is "a cost-effective approach to rapid prototyping," noted Sine.

Of the US$750, about two-thirds, or US$505.86, went to Rotor Riot. This included a US$170.52 UMAC 2087 Motor, a US$66.76 Brave F7 Flight Controller, a US$132.77 Brave 55A ESC, a US$66.76 Fat Shark Aura Camera, and a US$69.05 Fat Shark Aura VTX. The remainder, US$93.52, was spent with Triumph for a nano receiver and a 5.8 GHz antenna; a total of US$150.62 was spent on U.S. Army-manufactured parts: US$28.99 for both an internally 3D-printed frame and Jaw Dropper; and another US$121.63 went to other miscellaneous U.S. Army parts, such as screws and electrical connectors.

"Notably, recent price reductions on RotorRiot.com have lowered the total component cost by 7% to US$700," wrote Sine.

In addition to the cost, the ability to quickly assemble and deploy the ABE 1.01 drone is advantageous for military users, he said. Soldiers can assemble one in about 20 minutes. This is ideal for field use, such as reconnaissance (it has a camera) and potential combat applications, including payload delivery, in the future.

The Catalyst: Rapid Tech Advances Driving Fueling Industry Expansion

According to Grand View Research, the global drone market was estimated to be worth US$73.06 billion in 2024 and is anticipated to grow to US$163.60 billion by 2030, with a compound annual growth rate (CAGR) of 14.3% from 2025 to 2030.

This expansion is largely fueled by rapid technological advancements in drones, improvements in battery efficiency, AI-driven autonomous systems, and enhanced imaging sensors, which are broadening the use of drones across various industries, as noted by Grand View.

In 2024, North America dominated the drone market, capturing over 39% of the share. The hardware segment accounted for the largest revenue share by component, surpassing 58% in 2024, and the multi-rotor segment held the largest revenue share by product in 2024, according to researchers.

Investment in defense innovation in the sector is gaining momentum. Bloomberg reported on a new venture capital initiative from Point72 Asset Management. Led by billionaire Steve Cohen, the firm is raising US$400 million for the Deterrence Fund, focusing on early-stage investments in defense, energy, and security. According to investor documents cited in the report, Point72 plans to invest between US$1 million and US$30 million per startup, emphasizing the need for agile technologies capable of modernizing defense infrastructure.

"The opportunity in defense tech investing isn't just bigger than it was in 2023 — it's more urgent," Point72 wrote in a blog post. The firm argued that autonomy, AI, and software-first systems will redefine future conflict.

These developments are part of a broader structural shift across the sector. In an August 2 report for AI Invest, analyst Oliver Blake described the industry as entering a "new era of opportunity" driven by AI, hypersonic technology, and space-based surveillance.

He noted that global defense spending rose to US$2.72 trillion in 2024, marking the largest year-over-year increase since the Cold War. In the U.S., military spending reached US$997 billion, supported by policies from both the Trump and Biden administrations.

The demand for drones in emergency response has significantly increased, according to a July 30 commentary from FN Media Group. The emergency responder drone market was valued at US$5.68 billion in 2023 and is projected to grow to US$12.5 billion by 2032.

A report from Market Research Future highlighted the growing role of drones in public safety, emphasizing advancements in imaging, payload capacity, and battery life. "These trends reflect a broader move toward adopting aerial technologies as essential tools in enhancing public safety and emergency management strategies globally," the firm stated.

Ownership and Share Structure¹

About 7.5% of the company is owned by management and insiders. The rest, 92.5%, is retail and institutional investors.

Unusual Machines has 33.1 million shares outstanding. Its market cap is US$508.82 million. Its 52-week high and low share prices are US$23.62 and US$1.28 per share, respectively.