HOVR
The gist
New Horizon Aircraft spent its fiscal Q1 2027 earnings call reminding everyone that aerospace is basically a long game with a very loud bill attached. R&D expense surged to $7.4 million from $2.7 million a year ago as the company poured money into engineering and development for its full-scale Cavorite X7 demonstrator.
Why investors should perk up
The company also said it signed a non-binding LOI with VSTAR Power Lift Aviation for up to 100 aircraft, a deal that could be worth about $600 million if it ever turns into something real and not just a very optimistic handshake. For a pre-commercial aircraft maker, that’s the kind of headline that gets the market leaning in.
The money part
On the upside, New Horizon says it has more than $70 million in cash, which gives it room to keep building without immediately running back to the capital markets with a tin cup. That matters, because aircraft development has a habit of eating cash like it’s a buffet.
Big picture
Management is aiming to finish the X7 demonstrator by the end of Q1 2027 and keep pushing toward certification with strategic partners and more testing. In plain English: the story is still about progress, not profits, but the company looks better funded than a lot of early-stage aviation dreamers.
Big picture: if the X7 keeps moving from PowerPoint to metal, the stock has a narrative. If not, investors are just funding the world’s fanciest science project.