D&I Anchors Growth, Pelican Scale Drives Execution - Profits Still a Watchpoint
 
Growth Accelerates. Revenue grew 42% y/y to $94M, beating consensus by 4% and marking a second straight quarter of >40% growth. The beat was led by sovereign demand, with D&I revenue up 68% y/y, while Civil remained flat.
Commercial inflection. The long-sought but elusive Commercial market showed signs of life, gowing 24% y/y to $16.6M, its strongest gain, supported by AI traction. Momentum is building in agriculture and maritime sectors, driven by product upgrades (natural-language search, SuperRes). Defense is still the near-term growth engine, but Commercial remains a long-term diversification lever.
FY28 AEBITDA >$45M. Q1 AEBITDA was a $1M loss vs a $1.2M profit last year, reflecting 170 bps of gross margin compression and a 44% rise in opex. Still, AEBITDA came in ~$4M ahead of expectations. We see material earnings contribution in FY28 when next-gen systems mature.