Hyliion Holdings Corp. reported financial results for the third quarter ended September 30, 2026, and provided updates on the development of its KARNO Power Module platform. The company announced an increase to its full-year 2026 revenue guidance, citing stronger-than-anticipated revenue from military research and development services.
For the third quarter of 2026, Hyliion recorded revenue of $7.5 million from research and development services, a significant increase compared to $0.8 million in the same period of 2025. This performance exceeded prior expectations, driven by accelerated progress on the 800-kW KARNO Power Module for the Office of Naval Research and additional funding received under that program. The company reported a net loss of $11.1 million for the quarter, an improvement of 17% compared to the $13.3 million loss in the prior year. Hyliion ended the quarter with $121.4 million in cash and short- and long-term investments.
In terms of guidance, Hyliion is raising its full-year 2026 revenue outlook to approximately $18 million. This revision replaces the previous quarter outlook of $15 million and the start-of-year outlook of $10 million. The company expects approximately $3 million in fourth-quarter revenue as work on the 800-kW Navy system nears completion and activity ramps up under the $41.7 million Navy contract awarded in July. Hyliion also confirmed its expectation to end the year with $115 million to $120 million in cash and investments.
On the development front, Hyliion delivered another early adopter KARNO Power Module to the U.S. Navy and began moving equipment to its first commercial customer site, with deployment expected to be completed in the coming weeks. The company is on track to achieve a 200-kW power output target by year-end. Additionally, Hyliion anticipates approximately $8 million in additional military contract awards before year-end, which would bring total new military awards for 2026 to approximately $50 million. As of September 30, the company had $45.5 million in remaining authorized funding under existing military contracts.
The company is also advancing additive manufacturing capabilities, with improvements expected to increase printer speeds by up to three times. Hyliion is consolidating manufacturing operations to Texas and has filled key leadership positions to support increased production volumes in 2027.
