XTI Aerospace : The UAS Integrator Advantage (2026 0330 XTIA UAS Integrator Advantage Final)

About this update from Xti Aerospace, Inc.

The UAS Integrator Advantage Data, Deployment, and the Next Phase of Enterprise Drone Infrastructure XTI Aerospace | NASDAQ: XTIA MARCH 30, 2026 This document is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. It is not investment advice. All information is current as of the date hereof and is subject to change without notice. XTI Aerospace assumes no obligation to update this information. Past performance is not indicative of future results. Executive Summary The U.S. unmanned aircraft systems (UAS) market is entering a structural transition driven by regulatory policy, enterprise adoption, and supply-chain realignment. As drone deployments expand across infrastructure, energy, public safety, and government operations, the operational complexity of managing fleets, regulatory compliance, and lifecycle support is increasing rapidly. Within this evolving ecosystem, strategic value is beginning to shift away from standalone hardware manufacturers toward Original Equipment Manufacturer (OEM)-agnostic integrator platforms capable of connecting drone technologies with real-world enterprise deployment infrastructure. These platforms manage aircraft procurement, system integration, training, regulatory navigation, maintenance, and lifecycle services while capturing operational data generated through large-scale deployments. XTI Aerospace, through its subsidiary Drone Nerds, operates within this emerging platform layer of the UAS ecosystem. The company combines enterprise drone deployment infrastructure, lifecycle services, and a growing operational intelligence capability that informs further strategic expansion into government and defense markets as the industry continues to mature. With its OEM-agnostic platform and extensive commercial deployment base, the Company believes XTI Aerospace is well positioned to deliver Commercial Off-The-Shelf (COTS) UAS solutions that align with emerging government and defense procurement priorities focused on rapid deployment, cost efficiency, and supply chain security. As regulatory requirements tighten and enterprise drone adoption accelerates, integrator platforms positioned at the intersection of OEM ecosystems, enterprise deployments, and operational data flows are expected to play an increasingly strategic role in the next phase of the UAS / drone industry's evolution. Industry Consolidation Most industries evolve from hardware fragmentation → platform consolidation. Technology markets often follow a consistent structural pattern: early phases are characterized by rapid hardware innovation and fragmentation, followed by consolidation around platforms that integrate technology, manage deployments, and capture operational data. As industries mature, strategic value typically shifts from individual product manufacturers and point solutions to platforms that coordinate ecosystems and enable scalable adoption. Several major technology sectors illustrate this transition: The UAS market is entering a similar phase. While the ecosystem remains fragmented across hardware manufacturers, sensors, payloads, and autonomy software providers, enterprise adoption is driving demand for integrated deployment platforms capable of managing fleet operations, compliance, training, maintenance, and lifecycle support. Within this evolving structure, integrator platforms that connect OEM technologies with enterprise and government deployments increasingly occupy the ecosystem's strategic control point. Platforms such as XTI Aerospace (NASDAQ: XTIA), through its enterprise UAS platform Drone Nerds, operates within this emerging layer by bridging fragmented hardware ecosystems with operational infrastructure and deployment expertise. The Integrator Layer Drone Nerds, acquired by XTI Aerospace in November 2025, operates one of the largest enterprise drone solutions platforms in the United States, serving commercial, public safety, government, and infrastructure customers nationwide. Key platform highlights include: Approximately $110M in revenue in 2024 A national enterprise and government customer footprint More than 50 OEM technology relationships across aircraft, components, and software Certified repair, maintenance, and lifecycle service capabilities The platform sits at the center of the UAS ecosystem, connecting fragmented drone manufacturers with real-world enterprise deployments. Through aircraft procurement, system integration, fleet support, repair activity, and lifecycle management, Drone Nerds participates in multiple stages of the drone deployment cycle. Because the platform intersects OEM ecosystems, enterprise operators, service workflows, and procurement activity, it generates valuable operational and market insights into equipment performance, purchasing trends, regulatory impacts, and evolving enterprise demand across the UAS market. This positioning places XTI within the emerging integrator platform layer of the drone ecosystem as the industry continues to mature. This OEM-agnostic architecture enables XTI to aggregate, configure, and deploy COTS drone systems across multiple manufacturers , allowing customers including government agencies to rapidly access validated, commercially proven technologies without dependence on a single OEM. This flexibility is increasingly aligned with defense procurement strategies that prioritize modular, interoperable, and rapidly deployable systems. This framework illustrates how the drone industry evolves structurally over time and where integrator platforms such as XTI Aerospace become strategically important within the ecosystem. As with many technology sectors, the market typically progresses from hardware fragmentation toward platform-led consolidation as enterprise adoption scales, and operational complexity increases. Market Evolution Stages Early Market - Hardware Fragmentation Numerous drone OEM manufacturers enter the market Enterprise adoption remains limited Competition is primarily hardware-driven Rapid OEM Expansion Hundreds of drone vendors emerge New components, sensors, payloads, autonomy tools, and software platforms enter the ecosystem Technology experimentation accelerates across the industry Enterprise Adoption Drone deployments expand across utilities, infrastructure, energy, and public safety Organizations move from pilot programs toward operational deployments Customers increasingly require integrated, turnkey solutions and operational support Integrator Platform Scale Platforms manage deployment, training, compliance, and lifecycle services Purchasing, supply chain, use-case emergence & adoption and fleet operations generate operational and market data into aggregated insights The integrator layer begins to emerge as the ecosystem control point Platform Consolidation & Defense Pathway Market leadership consolidates around scaled integrator platforms Government and defense demand for compliant drone infrastructure increases Market and operational data advantages become strategically valuable across the ecosystem Key Insight As the drone industry matures, strategic value increasingly concentrates within integrator platforms that connect OEM technologies with enterprise deployments while capturing operational and market intelligence across the UAS ecosystem. Current XTI Platform XTI Aerospace, through its subsidiary Drone Nerds, operates at the integrator platform layer of the UAS ecosystem, connecting OEM technologies with enterprise deployments while capturing operational & market data deriving lifecycle insights across the industry. As the UAS industry matures, integrator platforms increasingly connect OEM technologies with enterprise deployments, lifecycle services, and operational intelligence across the ecosystem. These platforms help organizations navigate the growing complexity associated with large-scale drone operations. Regulatory Inflection Point Several developments are accelerating structural realignment within the drone market: Increasing compliance requirements for enterprise and government operators Supply chain disruption and equipment replacement cycles Greater procurement scrutiny and security considerations Accelerating demand for U.S.-aligned sourcing strategies Recent actions by the Federal Communications Commission ("FCC"), including the December 2025 expansion of its Covered List restricting certain foreign-made drone technologies, the Company believes these developments reinforce the need for trusted intermediaries capable of navigating regulatory, operational, and technical complexity across the UAS ecosystem. These regulatory shifts may accelerate demand for trusted COTS integrators capable of sourcing compliant, U.S.-aligned drone technologies and rapidly replacing restricted systems within operational fleets. The Emerging Data & Intelligence Layer As enterprise drone deployments scale, integrator platforms generate aggregated operational data across aircraft procurement, fleet deployments, lifecycle services, and repair activity. This data can provide valuable insights and market intelligence into purchasing trends, deployment & adoption velocity, equipment performance, and the evolving regulatory environment. Over time, these insights can inform strategic decision-making across partnerships, product selection, organic expansion, and potential M&A activity. Platforms positioned at the center of enterprise deployments, such as XTI Aerospace through its subsidiary Drone Nerds, therefore accumulate operational and market intelligence that may become increasingly valuable as the UAS ecosystem continues to mature. COTS Advantage in Defense & Government Entry Defense and government agencies are increasingly adopting COTS technologies to accelerate deployment timelines, reduce development risk, and leverage innovation from the commercial sector. Within the UAS ecosystem, this shift favors platforms capable of delivering: Rapidly deployable, commercially validated systems Modular integration across multiple OEM technologies Scalable lifecycle support and operational readiness XTI Aerospace, through Drone Nerds, operates at this intersection. Its platform enables the aggregation, integration, and deployment of COTS UAS solutions at scale, supported by procurement infrastructure, training, maintenance, and regulatory expertise. This positioning is intended to enable XTI to potentially serve as a bridge between commercial drone innovation and defense deployment requirements, reducing time-to-field and potentially enabling agencies to adopt mission-ready systems without relying on bespoke development programs. Growth Trajectory & Strategic Expansion The XTI Aerospace platform sits at the intersection of enterprise drone deployment, OEM ecosystem integration, and operational data aggregation. As the UAS industry evolves toward integrated solutions and increasingly regulated deployments, scaled integrator platforms with broad ecosystem visibility occupy a strategic control point within the sector. Strategic Expansion As enterprise drone deployments scale, the infrastructure, operational expertise, and ecosystem relationships developed by integrator platforms may create a pathway toward potential expansion into government and defense markets, particularly as agencies increasingly prioritize COTS-based UAS deployment models that enable rapid fielding, cost efficiency, and supply chain flexibility. Large-scale enterprise deployments often precede adoption by public safety agencies, federal programs, and defense organizations seeking trusted platforms capable of managing compliant drone operations at scale. Integrator platforms with visibility across OEM ecosystems, procurement activity, and operational deployments are well positioned to support emerging demand across national security and allied markets. As XTI scales its existing OEM-agnostic UAS platform and lifecycle infrastructure position, the Company believes it can deliver COTS-to-missionized UAS solutions, supporting both initial deployment and ongoing operational requirements across defense, government and national security applications as the industry continues to evolve. As compliance requirements tighten and enterprise adoption expands, value creation increasingly concentrates within platforms that combine deployment infrastructure, lifecycle services, and operational intelligence. XTI's transformation following the acquisition of Drone Nerds reflects this structural shift as the company positions itself within the emerging integrator layer of the UAS / drone ecosystem. Summary: Platform Control with Scaled Revenue and Strategic Optionality XTI Aerospace now operates at a strategic position within the UAS / drone ecosystem where enterprise deployment, regulatory complexity, and OEM fragmentation intersect. Through Drone Nerds, the company combines scaled revenue, national infrastructure, and deep ecosystem connectivity within a single integrated platform. This positioning is intended to provide both near-term revenue visibility and long-term strategic optionality. XTI participates across multiple layers of the value chain, including procurement, system integration, lifecycle services, and the generation of operational and market intelligence capabilities that become increasingly valuable as enterprise adoption accelerates and regulatory requirements tighten. As the industry shifts from fragmented hardware competition to integrated, compliance-driven deployment models, the Company believes value is increasingly concentrating on platforms that can manage complexity at scale. With rising demand for U.S.-aligned solutions and trusted intermediaries, XTI is positioned to potentially expand across enterprise, government, and defense markets. As defense procurement moves toward COTS and dual-use technologies, XTI's UAS integrator platform offers a differentiated entry into government and military markets without traditional capital-intensive development cycles. As outlined in the Company's February 5, 2026 communications, including an outlook for FY2026 revenue exceeding $160 million, XTI's platform scaling, access to customer workflows, and operational data create pathways for higher-value services and adjacent market expansion, positioning the company to play a meaningful role in ongoing UAS industry consolidation. The Company is targeting continued revenue growth, although actual results may differ materially. This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on current expectations and assumptions and involve risks and uncertainties that could cause actual results to differ materially from those projected. Important factors that could cause actual results to differ include but are not limited to: integration risks related to the Drone Nerds acquisition, regulatory changes (including FCC Covered List actions), competition, supply-chain disruptions, ability to achieve cost synergies, execution risk on growth initiatives, and general economic conditions. See the Company's most recent SEC filings (including the 10-K for the year ended December 31, 2024, and subsequent 10-Qs/8-Ks) for a more complete discussion of risk factors. The Company undertakes no obligation to update these statements.

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