10-Q · August 12, 2026
BETA delivered strong Q2 revenue growth, with revenue of $14.658 million up 146% year over year, led by service revenue, but profitability deteriorated materially as operating expenses rose 98% to $166.139 million.…
Earnings analysis · 10-Q
BETA earnings analysis
Filed November 3, 2026 · Our reading of the company's report
The latest report
BETA delivered strong Q3 operating momentum, with revenue up 98% year over year to $17.672 million, gross margin expanding to 72.1%, and diluted EPS improving to $(0.51). Service contracts drove most of the growth,…
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BETA delivered strong Q3 operating momentum, with revenue up 98% year over year to $17.672 million, gross margin expanding to 72.1%, and diluted EPS improving to $(0.51). Service contracts drove most of the growth, while FAA authorization for the A250 supports broader market-survey operations. However, operating losses remain substantial, with a $127.804 million quarterly operating loss and $271.378 million of nine-month operating cash burn, alongside $103.772 million of capital spending. The report is therefore balanced: commercialization progress and revenue growth are positive, but high spending, continued funding needs, and execution risks support a neutral view.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.51
What stood out
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Revenue accelerated 98% year over year
Q3 revenue was $17.672 million, an increase of $8.754 million, or 98%, from $8.918 million in the prior-year quarter. Revenue also increased from $15 million in Q2 2026.
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Gross margin expanded sharply
Gross profit increased 106% year over year to $12.739 million from $6.177 million, lifting gross margin to 72.1% from 69.3% in Q3 2025 and 54.7% in Q2 2026.
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Service revenue led growth
Service revenue rose to $12.488 million from $6.001 million, driven primarily by $9.1 million of commercial engineering and consulting contracts. Product revenue increased 78% to $5.184 million, including $4.3 million of ground service equipment deliveries.
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EPS loss improved materially
Diluted EPS improved to $(0.51) from $(9.83) in Q3 2025 and $(0.64) in Q2 2026. The prior-year quarter included a $355.551 million loss on issuance of convertible preferred stock.
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FAA authorization supports commercialization
The FAA awarded the A250 N250XT a Special Airworthiness Certificate for market surveys, and the aircraft completed its first flight under the authorization on October 20, 2026.
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Liquidity supports continued investment
Nine-month operating cash flow was $(271.378) million and capital spending was $103.772 million, implying approximately $(375.150) million of free cash flow. Cash and cash equivalents remained substantial at $1.343 billion at September 30, 2026.
What to watch
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Operating losses remain extreme
Q3 operating expenses increased 62% year over year to $140.543 million, producing a $127.804 million operating loss and a negative 723.2% operating margin. Research and development rose 61% to $90.536 million and general and administrative expense rose 65% to $50.007 million.
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Cash burn and funding risk
Cash and cash equivalents declined to $1.343 billion from $1.710 billion at December 31, 2025, while nine-month operating cash use was $271.378 million and investing cash use was $103.772 million. Management expects additional capital expenditures during the remainder of 2026 and states that additional equity or debt financing may be required.
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Expanded IT and manufacturing-system risk
The updated IT and cybersecurity risk factor covers failures or attacks affecting aircraft technology, avionics, integrated software, suppliers, and production systems. The risk is increasingly material as the company capitalized $26.348 million of aircraft components and scales manufacturing processes used to track components and production costs.
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Insider selling plans add supply risk
The CEO-affiliated Godric’s Hollow Trust entered trading plans covering up to 300,000 shares from November 13 to December 14, 2026, 250,000 shares from December 15, 2026 to January 11, 2027, and up to 270,000 shares from January 12 to February 22, 2027. The CFO also established a plan covering up to 216,661 shares through April 30, 2027.
Management's outlook
The 10-Q does not provide quantitative revenue or EPS guidance. Management anticipates additional capital expenditures during the remainder of 2026, primarily for machinery and equipment, buildings and leasehold improvements, the charging network, and aircraft components. The separate November 3, 2026 8-K raised full-year 2026 revenue guidance to $52 million-$57 million and maintained Adjusted EBITDA guidance of $(400) million-$(445) million.
Earlier filings 4
10-Q · May 12, 2026
BETA Technologies, Inc. reported Q1 2026 revenues of $10.1 million, a 6% increase compared to $9.6 million in Q1 2025, while facing a net loss of $122.3 million, up 56% from a net loss of $78.3 million year-over-year.…
10-K · March 9, 2026
BETA reported strong 2025 top-line growth to $35.616M (from $15.092M in 2024) driven by product and service expansion and backlog wins, while remaining unprofitable with very large operating losses and negative free…
10-Q · December 4, 2025
BETA reported strong top-line growth in Q3 2025 with total revenue of $8,918 (in thousands), driven by both product and service revenue, and materially improved gross margin. However, operating losses widened (loss from…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.