Unusual Machines is increasing its manufacturing capacity.
Management pegs the company's near-term addressable market at $250 million.
Shares of Unusual Machines (NYSEMKT: UMAC) rose on Tuesday after the drone parts manufacturer issued a bullish long-term growth forecast.
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Unusual Machines raised capital via multiple stock offerings in 2025 to bolster its balance sheet and fund its expansion initiatives. The company ended the year with $142 million in cash and investments and no debt.
Now, the drone component maker is turning its focus toward scaling its manufacturing network to meet the soaring demand for domestically produced drones.
Unusual Machines' full-year revenue surged 101% to $11.2 million in 2025. Moreover, the drone stock's growth is accelerating. Fourth-quarter revenue increased 133% sequentially to $4.9 million.
Still, Unusual Machines is not yet profitable. It generated a net loss of $19.2 million in 2025. However, the company expects to produce positive operating cash flow by the end of 2026.
Unusual Machines also noted that the Defense Department's Drone Dominance program will help to expand its market opportunity to over $90 million in 2026 and $250 million in 2027.
"We believe the U.S. drone industry is still in the early stages of development, and the need for secure, domestic supply chains will continue to grow," CEO Allan Evans said.
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Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.