Swarmer (SWMR) Pops in Trading Debut as Drones Transform War

Global conflicts are on the rise and defense companies are seeing a lot of interest from markets. Particularly, markets are excited about small drone companies as these relatively inexpensive devices transform the landscape of war. The current conflict with Iran has demonstrated how drones can inflict severe damage while also successfully evading existing interception systems. The Ukraine/Russia war is dominated by drones, both in the air and on the ground.

I previously discussed Red Cat (RCAT), an American drone maker. Now, Swarmer (SWMR) is on the scene, and popped over 500% in its IPO Tuesday. U.S. CEO and cofounder Alex Fink joined The Watch List to discuss the debut and the company’s financials.

Swarmer emphasizes that it is not a drone manufacturer, but a software and intelligence creator. Per its site, it develops “autonomy, coordination and decision-making software” that combines a fleet of drones into “one coherent, resilient force.” In its “By the Numbers” segment, it lists 100K combat missions flown and 140 terabytes of data collected.

Founded in 2023, Swarmer went to work in Ukraine in April of 2024 and has been on the front lines since. It intentionally is “platform-agnostic,” meaning it aims to run on any drone or system, no matter the maker, a vital requirement in a battlefield where resources may be stretched thin. Fink emphasizes that their software allows one pilot to control multiple first-person view drones. Swarmer says it preserves human control: “the decision of whether to strike remains human; the decision of which drone should strike is resolved automatically.”

“Anything that has a processor, is unmanned, and has a radio is a drone our system can operate,” Fink says, as the company expands from flying drones to unmanned boats and ground vehicles. They are also seeing a lot of demand for interceptor drones to counter enemy drone fleets.

In addition to strikes, Swarmer also focuses on battlefield intelligence. Each drone in a swarm “continuously shares what it sees, where it is, and what it can do” across the network, allowing for “decentralized decisions.” This also means drones do not need to operate in fixed formations, enabling greater evasion.

Battlefield data from Ukraine is the company’s key differentiator: while there is no shortage of drone manufacturers, including established defense firms like Northrop Grumman (NOC).

Turning to the financials, the company reported 2025 revenue of $309.9K, down 6% from $329.4K in 2024.The company is still operating at a loss – in 2025 it hit $5.1 million, resulting in negative operating margin at the moment. They expect operating expenses to “increase significantly” as they pursue growth, and Swarmer notes the timing of profitability is “highly uncertain.”

In its S-1, Swarmer reported a firm backlog of $16.3 million, along with other anticipated revenue worth around $16.8 million from existing customers, for a total of $33.1 million. They expect to realize 60% of that revenue this year.

The influx of cash from the IPO may help with the cash flow they’re looking for. The stock popped the day of its IPO and then again the next day to a high of $65.04. They priced at around $5 a share and it is currently trading in the high $30s, falling almost 30% in Friday’s session.

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