EX-99.1

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PRESS RELEASE

airsp_ex991.htm

EXHIBIT 99.1

Airship AI Reports Third Quarter 2026 Financial Results

Third Quarter 2026 Net Revenues of $6.23 Million, Gross Profit of $3.50 Million and Gross Margin of 56.2%

Net Revenue Increase of 429% and Gross Profit Increase of 481% as Compared to Q3 of the Prior Year

Backlog of $28.3M of Awarded Firm-Fixed Price Orders Going into the Fourth Quarter of 2026

Redmond, WA – November 5, 2026 – Airship AI Holdings, Inc. (NASDAQ: AISP) (“Airship AI” or the “Company”), an AI software company that turns the video, sensor and enterprise data organizations already collect into real-time operational intelligence for national security, public safety and commercial customers, today reported its financial and operational results for the third quarter ended September 30, 2026.

Q3 2026 Financial Highlights

· Net revenues for the quarter ended September 30, 2026, were $6.23 million.

· Gross profits for the quarter ended September 30, 2026, were $3.50 million.

· Gross profit percentage was 56.2% for the quarter ended September 30, 2026. Higher margins were in part due to increased solution sales with more Airship AI branded hardware and software offerings.

· Operating loss was $561,000 for the quarter ended September 30, 2026 reflected noncash stock-based compensation of $555,000 and increased investments in sales, marketing-related and research and development expenditures which should increase future sales. We operated at a breakeven basis excluding noncash expenses.

· Other income for the quarter ended September 30, 2026, was $10.18 million, primarily due to gains from a change in the fair value of earnout liability of $3.23 million and change in fair value of warrant liability of $6.83 million.

· Net income for the quarter ended September 30, 2026, was $9.62 million, or $0.28 per basic share.

· Net cash provided by operating activities was $384,000 in the quarter ended September 30, 2026.

· Cash and cash equivalents was $12.74 million and accounts receivable was $6.28 million, each as of September 30, 2026.

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Q3 2026 & Subsequent Operational Highlights

· Backlog as of September 30, 2026 was $28.3 million, representing firm fixed price contracts that are expected to be shipped and invoiced in the following quarter(s). Backlog is not indicative of future quarterly revenue as approximately 75% of quarterly revenue is transactional and recognized in the same quarter.

· Our total validated pipeline at the end of the quarter was approximately $215 million, consisting of single and multi-year opportunities for AI-driven edge, video, and sensor and data management platform across all our customer verticals. Our pipeline includes opportunities at varying stages of progression with expected award timeframes throughout the next 18-24 months.

· Progressed several of our largest opportunities in the existing pipeline that are anticipated to close between the fourth quarter of 2026 and first quarter of 2027. These opportunities are tied to funded procurement efforts within the Department of Homeland Security (DHS) supporting homeland security priorities for the agency as part of the current administration’s efforts to strengthen border security and protect the homeland.

· Saw continued partner adoption and pipeline growth in our commercial business (defined as new business going through business partners or integrators) as our new Director of Commercial Sales and Director of Federal Business Development were able to continue to grow brand awareness and increase brand visibility.

· Due to the sensitive nature of many of our customers and deployment use cases, we are often restricted from publicly disclosing awards and / or limited as to the specifics of the customer and use case. Consequently, most of our awards are executed on closed or restricted contract vehicles, which further limits the sharing of information that might otherwise be available.

2026 Outlook

· Capitalize on growing momentum in the current fiscal year around long-term business development efforts that are forecasted to be funded in 2026 through the One Big Beautiful Bill Act (OB3).

· Maintain focus on improving gross margin percentages supporting our goal of cash flow positive operations by the end of 2026.

· Continue tactical and strategic investments across our sales and business development organizations through organic cash flow from business operations and the potential cash exercise of public warrants.

· Continue training and refinement of our edge (Outpost AI) and datacenter / cloud (Fortress AI) based analytic platforms supporting emerging edge analytic workflows.

· Launch the first release of our agentic AI software, now the largest share of our development effort, which enables users to extract operational intelligence from existing video, sensor and enterprise data systems using natural language, with initial customer deployments expected around year end.

· Continue i