Unusual Machines/Component Supplier With Excellent Growth Potential Makes Campus Security Deal

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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) announced that it will provide U.S.-manufactured drone components to Campus Guardian Angel to aid in the expansion of its school safety drone service across campuses nationwide, according to a release from the company on December 12.

Based in Austin, Texas, Campus Guardian Angel is a managed security service offering schools a top-tier, on-site safety response capability using drones to address active shooter threats within seconds. Unusual Machines' leadership recently observed a live demonstration of Campus Guardian Angel's system for district and law enforcement stakeholders.

"Campus Guardian Angel brings care and precision to a mission that demands both. Their technology is purpose-built to strengthen response capabilities in the most critical moments," said UMAC Executive Vice President of Revenue Stacy Wright. "We're proud to support their team with components they can trust as their program grows."

The initial order from Campus Guardian Angel includes Rotor Riot Brave ESCs, and the team is evaluating Unusual Machines' motors for potential wider use. Both products are made domestically and comply with NDAA standards.

"This partnership marks an important milestone as we expand our life-saving school safety service and strengthen our supply chain with an America-first focus," said Justin Marston, chief executive officer and founder of Campus Guardian Angel. "As we pilot our service in Florida and expand to more campuses, trusted U.S. suppliers like Unusual Machines are essential to earning the confidence of law enforcement and school district leaders committed to keeping students safe."

Operators Turning to American-Built Systems

Earlier in December, Unusual Machines announced a strategic supplier agreement with BrooQLy Inc. (BRQL: OTCQB), operating as Dynamic Aerospace Systems (DAS), an innovative developer of next-generation unmanned aerial systems for commercial and defense applications. This agreement involves the immediate integration of Unusual Machines' compliant flight controllers, ESCs, motors, and related subsystems into DAS's production lines for the Breacher counter-UAS (unmanned aircraft system) and loitering system, as well as the Sentinel long-endurance ISR (intelligence, surveillance, and reconnaissance) platform. All components meet NDAA (U.S. National Defense Authorization Act) and Blue UAS standards.

"DAS is expanding into new commercial markets, and our U.S.-made components provide them with a secure supply chain they can scale with," said Unusual Machines Chief Executive Officer Allan Evans. "As more logistics and delivery operators turn to American-built systems, partnerships like this diversify our revenue mix and emphasize the value of domestic production."

The agreement also extends to DAS's commercial drone initiatives, including upcoming deployments in the United Arab Emirates with the noon Group, the region's leading e-commerce platform, and Drops Smart Hubs in Greece. DAS plans to use Unusual Machines' components across platforms supporting autonomous pilot delivery, commercial logistics, and critical infrastructure monitoring.

"We chose Unusual Machines because they deliver compliant, American-made components at the scale our platforms require," said Kent Wilson, CEO of Dynamic Aerospace Systems. "Reliability and execution are central to our expansion into new commercial markets. Early work with our e-commerce partners in the UAE with the noon Group and Drops Smart Hubs in Greece shows the global demand for U.S.-made systems, and UMAC's technology helps us meet that demand with confidence."

A Path to US$1B in Orders

On December 2, the Department of War (DoW) announced the Drone Dominance Program (DDP) — Request for Information (RFI), marking the first step toward what is expected to be one of the largest procurement cycles for low-cost, attritable small UAS in U.S. history, according to a December 3 research note featuring the company by Needham Analyst Austin Bohlig.

The RFI outlines a clear path for US$1 billion in orders, covering approximately 340,000 drones over four phases in the next two years. This development is considered highly significant, as it supports the belief that the unmanned supercycle is set to accelerate substantially in 2026.

"While the program is structured to accommodate several drone OEM vendors, we believe Unusual Machines (UMAC) is particularly well positioned to capitalize on this opportunity, given its leadership as one of the few domestic suppliers of low-cost, flight-critical components essential for meeting the program’s supply-chain requirements," Bohlig wrote. "Based on the anticipated unit volumes, we estimate this represents a US$170 million addressable market opportunity for UMAC across the program’s initial phases."

While each phase of the DDP is designed to accommodate multiple vendors, Bohlig said his firm believes UMAC is uniquely positioned to benefit from this initiative due to its role as one of the few domestic suppliers of low-cost, flight-critical components essential for low-cost attritable drones.

"Based on our analysis, low-cost attritable drones contain roughly seven key components that together represent approximately US$500 of UMAC content per drone."

With the program outlining deliveries totaling 340,000 drones over the next two years, the firm estimates this equates to a US$170 million total addressable market opportunity for UMAC, with potentially US$45 million available in 2026, Bohlig said. Combined with the company’s existing US$16 million backlog expected to be fulfilled in the first half of 2026, as well as emerging opportunities tied to PBAS and Skyfoundry, Bohlig said the firm continued to view UMAC as positioned for significant growth in 2026 as these programs scale.

'A Central Node' in US Drone Ecosystem

Litchfield Hills Research Analyst Barry Sine in a research note dated November 13 that UMAC invested US$25 million for a 34% ownership in XTI Aerospace, thereby gaining access to a developer of long-range vertical take-off and landing (VTOL) aircraft and benefiting from XTI's concurrent acquisition of Drone Nerds, the largest drone distributor in the U.S.

"UMAC continues to evolve from a drone components manufacturer into a central node in the emerging American drone and VTOL ecosystem," Sine wrote. "This investment enhances strategic optionality, deepens vertical integration, and offers a uniquely asymmetric risk-reward profile."

Litchfield Hills maintained its US$25 per share target price on the U.S.-based drone components supplier, noted Sine.

"Even without strategic investments, UMAC's core business, positioned for a surge in U.S. drone demand, would justify our valuation," Sine wrote. The announcement "underscores that UMAC is becoming far more than 'just' a components supplier. It is rapidly positioning itself as a key consolidator in a once-in-a-generation industry shift."

At the time of the analyst's report, Unusual Machines was trading at about US$10.73 per share. From that price, the return to target is 133%. UMAC remains a Buy. The company has 36.8 million shares outstanding. Its market cap is US$395.7 million. Its 52-week range is US$2.34–23.62 per share.

The Catalyst: Rapid Tech Advances Driving Growth

Grand View Research reported that the global drone market was valued at US$73.06 billion in 2024 and is projected to reach US$163.6 billion by 2030, with a compound annual growth rate (CAGR) of 14.3% from 2025 to 2030. This growth is largely driven by rapid technological advancements in drones, improvements in battery efficiency, AI-driven autonomous systems, and enhanced imaging sensors, which are expanding the use of drones across various industries, as noted by Grand View. In 2024, North America led the drone market, capturing over 39% of the market share. The hardware segment accounted for the largest revenue share by component, exceeding 58% in 2024, and the multi-rotor segment held the largest revenue share by product in 2024, according to researchers.

The integration of AI into the drone market has transformed drone capabilities, according to Markets and Markets. No longer just remote-controlled flying devices, today's drones use AI to navigate independently, recognize objects, make real-time decisions, and perform complex tasks with minimal human intervention. The AI-driven drone market is expanding rapidly. Although valuations vary slightly among analysts, the consensus is clear: the market is expected to more than triple in value over the next decade, with compound annual growth rates ranging from 15% to nearly 30%, the research firm noted.

Startups and defense technology companies in the U.S. are leading the way, developing autonomous drone platforms for real-world applications, the research firm said. Major defense initiatives are funding the creation of drones capable of thinking, coordinating, and carrying out missions with minimal input. In the commercial sector, AI-powered drones are inspecting pipelines, mapping agricultural land, and responding to emergencies more swiftly than ever before.

The money at stake is considerable. According to a December 5 report for Business Insider, author Chris Panella highlighted that "billions of dollars are at stake" in the race to develop defense drones. "The Pentagon is preparing to spend US$9.4 billion on aerial combat drones in fiscal year 2026 as part of its larger US$13.4 billion investment in autonomous systems," the article noted. "Additionally, the Air Force is requesting US$789.4 million for the research and development of autonomous 'loyal wingmen' drones that can operate alongside crewed combat aircraft or conduct missions independently. The Department of Defense also plans to allocate US$3.1 billion to counter-drone technology."

Ownership and Share Structure¹

As for ownership and share structure, seven strategic entities own 6.51% of Unusual Machines, including the CEO, Evans, with 2.89% and Chief Financial Officer Brian Hoff with 1.13%. More than 100 institutions hold 23.43%; one of them, Tudor Investment Corp., is the largest shareholder overall, with 3.27%. Retail investors have the rest.

Unusual Machines has 36.88 million shares outstanding. Its market cap is US$335.2 million. Its 52-week range is US$4.45–21.65 per share.