Merlin (MRLN) Stock Jumps Over 54% After Hours: What’s Going On?

Merlin Inc. (NASDAQ:MRLN) shares surged 54.50% to $1.49 after the bell on Thursday, following the announcement of third-quarter results where earnings per share topped analyst estimates by 227.6%.

The results covered the quarter ended Sept. 30. The stock had closed at $0.96 on Nov. 12, down 4.51%.

Revenue Beats Estimates by 58.3%

Revenue for the period came in at $3.46 million, beating the expected $2.19 million by 58.3%.

EPS was $0.37 versus an estimated loss of 29 cents.

According to Merlin’s earnings release, GAAP net income was $73.8 million. That included a $103.6 million non-cash gain from the change in fair value of warrant liabilities.

Merlin had $161.6 million in cash, cash equivalents and short-term investments at the end of September, with no outstanding debt.

The Boston-based aerospace and defense technology company said its planning process for 2027 is underway. Merlin expects 2027 operating expenses to fall “meaningfully” below 2026 levels. It said the lower cost base should fund its plan into 2029 without capital raises.

Trading Metrics, Technical Analysis

Merlin has a market capitalization of about $97.47 million. Over the past 52 weeks, its stock has traded as high as $17 and as low as $0.81.

MRLN has a Relative Strength Index (RSI) of 35.54.

Over the past 12 months, the small-cap stock has fallen 90.84%.

Price Action: In the regular session, MRLN closed at $0.96, down 4.51%, according to Benzinga Pro data.

Benzinga’s Edge Stock Rankings indicates Merlin stock has a negative price trend across all time frames.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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