EVTL

• Flight Test Milestone Achievements

  • Completed the first two-way piloted transition flight under U.K. Civil Aviation Authority (CAA) oversight in April 2026
  • A second full-scale prototype began piloted flight testing in June 2026, doubling flight test capacity, and completed piloted transition shortly after
  • Completed the first ever public eVTOL flight demonstration at the 2026 Farnborough International Airshow, performing consistent, repeatable transition flights daily for five days across changing weather conditions in a real public operating environment
  • Demonstrated the ability to navigate the aircraft through multiple public and military airfields, working with air traffic control and regulators to develop procedures for future commercial operations

• Ecosystem and Partnership Progress

  • Announced an autonomy partnership with Near Earth Autonomy to integrate autonomous capabilities into Valo, leveraging Near Earth's 10+ years of experience and compatibility with Valo's existing Honeywell Anthem avionics system to enable autonomous operations for both commercial and defense missions
  • Launched the ECLiPSE program, a U.K. government-supported initiative led by Vertical to develop next-generation high-power, compact, liquid-cooled vehicle-agnostic charging infrastructure for electric aviation, designed to reduce deployment costs and improve aircraft utilization
  • Selected as the piloted eVTOL demonstration partner for the EU-funded VERTI-GO program (led by Honeywell), which will develop operating procedures to integrate eVTOL into shared European airspace, with demonstration flights planned between Malaga and Marbella, Spain
  • Added Sigma Air Mobility (part of Luxaviation Group) as a new customer and signed an MOU with GACA to lay the groundwork for Valo entry into Saudi Arabia

• Propulsion and Battery Capabilities

  • Develops proprietary aerospace battery packs in-house, with cells sourced from leading suppliers and integration completed at the company's Vertical Energy Center; battery replacements expected annually, creating long-term recurring revenue after each aircraft sale
  • Hybrid propulsion system integration testing is ongoing on the dedicated HYPER test rig, with flight testing planned for the first half of 2027; the hybrid variant shares the same Valo airframe as the all-electric version, reducing development time and cost

• U.K. Government Support and Industrialization

  • In advanced discussions with the U.K. government for a support package to anchor the first global production facility in the U.K., with a proposed additional grant of up to $30.5 million that will bring total U.K. government support to ~$100 million
  • Signed a non-binding MOU with U.K. Export Finance for potential customer export financing; the U.K. Ministry of Defense has confirmed interest in Valo's hybrid and autonomous capabilities
  • An early aircraft assembly facility at Cotswold Airport is scheduled to open in Q3 2026, with the expanded Vertical Energy Center (tripling battery production capacity) opening in Q4 2026; a site for full-scale production will be selected within the next 6 months

• Financial Position

  • Secured a new $100 million gross proceeds financing package from new and existing investors, structured as $35 million in underwritten equity, $40 million accelerated draw from Mudrick Capital's existing convertible facility, and $25 million draw from the Yorkville preferred equity facility
  • As of August 13, 2026, total available cash and cash equivalents is ~$148 million after receiving all financing commitments, extending the cash runway through the end of Q3 2027

• Type certification for Valo is expected to be completed in 2029 through the U.K. CAA and EASA (SC)-VTOL pathway, a one-year shift from the prior 2028 target
• Critical Design Review (CDR) for Valo, which will establish the final certifiable design baseline, is expected to be completed by the end of 2026
• Hybrid electric flight testing of the Valo prototype is scheduled to begin in the first half of 2027, with the long-term turbo generator supplier for the hybrid program expected to be selected in the second half of 2026
• Net cash outflow from operations over the next 12 months is expected to be approximately $150 million; total remaining cash needed from current point through certification is ~$700 million
• The first full-scale U.K. final assembly and battery manufacturing facilities are expected to support approximately 700 direct highly skilled jobs by 2030
• New customer order announcements are expected after CDR, in late 2026 to early 2027
• Demonstration flights for the VERTI-GO program are scheduled to take place in 2028, using production-conforming Valo aircraft

No segmented financial performance data for individual product segments was provided in this business and strategy update call. Only aggregated cash flow and balance sheet data was shared: in the first half of 2026, net cash used in operating activities totaled $112 million, driven by investments in flight testing, Critical Design Review, supplier activity, manufacturing readiness, battery program development, and hybrid propulsion work.

• Forward-looking statements regarding milestones, certification timelines, commercial entry into service, and financial performance involve inherent risks and uncertainties that could cause actual results to differ materially from current projections
• Access to future financing is subject to market conditions, regulatory requirements, and other limitations, even though committed capacity exists under existing financing facilities
• Certification of a new aircraft category requires close coordination with global regulators, and unexpected delays in testing or regulatory approval could push back commercial timelines
• Commercial adoption of eVTOL depends on the development of supporting ecosystem infrastructure (charging, airspace integration, vertiports) that is outside of Vertical's direct control

Q: Management has delivered strong technical progress relative to peers, but there remains a market disconnect in the company's valuation. How will this gap close, and what is management's priority? / A: Management's core focus remains continuing to execute on previously announced plans, as the company has delivered all commitments made under its Flight Path 2030 roadmap, even achieving more progress than planned with less capital than projected. The company is actively exploring strategic partnerships that would be accretive to the business, and management expects execution on milestones and the addition of the right partner will close the valuation gap over time. We also expect new customer order announcements after Critical Design Review in late 2026 or early 2027, which could drive additional momentum.

Q: What drove the one-year shift in the Valo certification timeline from 2028 to 2029, and what are the remaining total cash needs to reach certification? / A: The timeline shift was driven by a one-quarter delay in achieving transition flight, which kept engineering resources focused on flight testing rather than shifting fully to work on certification-conforming aircraft. Management made the transparent decision to update the timeline to reflect this shift, and the U.K. CAA and EASA both support the adjusted 2029 timeline. Total remaining cash needs from the current point to certification remain approximately $700 million, consistent with prior guidance, and management is confident in securing the required funding.

Q: How does the defense partnership with Near Earth Autonomy and the hybrid Valo program work, and what is the priority of hybrid for the U.K. Ministry of Defense? / A: Valo uses a single-platform strategy that supports all-electric commercial, hybrid commercial, and hybrid defense variants, with the same core airframe used across all versions. For hybrid, four of the eight all-electric batteries are replaced with a gas turbine generator, opening up longer-range civil use cases (competing in the 400-unit-per-year intermediate helicopter market) and multiple defense missions including logistics, medevac, and surveillance. Near Earth's autonomy technology is already compatible with Valo's Honeywell Anthem avionics, enabling low-risk integration of autonomous capabilities for both defense and commercial use. The U.K. MOD has expressed clear interest in the hybrid and autonomous Valo platform, which has unique size and capability relative to other eVTOL offerings.

Q: Could defense/hybrid commercialization be accelerated ahead of the all-electric civil certification? / A: The current plan keeps all-electric Valo as the core priority, with hybrid development running in parallel as a close follower, since the all-electric program is already well advanced. However, if the U.K. government or another military customer requests accelerated delivery, the company can easily flip priorities and deliver hybrid defense aircraft earlier than the 2029 all-electric certification timeline, depending on specific certification requirements for defense customers.