AIRO Reports Fourth Quarter and Full Year 2025 Results
MCLEAN, Va.--( BUSINESS WIRE)--AIRO Group Holdings, Inc. (NASDAQ: AIRO) (“AIRO” or the “Company”), a global leader in advanced aerospace and defense technologies, today announced financial results for the fourth quarter and full year 2025 ended December 31, 2025.
"2025 was a defining year for AIRO as we executed across our platform and advanced a number of key operational milestones,” said Joe Burns, Chief Executive Officer
Dr. Chirinjeev Kathuria, Executive Chairman, added, “Our public listing and strengthened balance sheet position AIRO to pursue significant opportunities emerging across our end markets. We continue to see strong demand across the drone industry driven by evolving defense requirements with our RQ-35 intelligence surveillance, reconnaissance (“ISR”) drone, along with our proposed partnerships with battle-tested Ukrainian technology providers such as Bullet and Nord Drone Group position AIRO at the forefront of next-generation unmanned systems development.”
“2025 was a defining year for AIRO as we executed across our platform and advanced a number of key operational milestones,” said Joe Burns, Chief Executive Officer of AIRO. “We delivered full-year revenue growth, expanded our U.S. manufacturing capabilities, and advanced toward Blue UAS certification. These accomplishments position AIRO to capture growing demand for autonomous ISR systems, resilient logistics platforms and integrated training solutions across global defense markets.”
Fourth Quarter and Full-Year 2025 Financial Highlights
Fourth Quarter 2025
Full Year 2025
Full Year and Recent Operational Highlights
Fourth Quarter 2025 Financial Results
Revenue for the fourth quarter of 2025 was $48.3 million, compared to $39.7 million in the fourth quarter of 2024, reflecting continued demand for the Company’s drone systems and deliveries incorporating upgraded capabilities for the RQ-35 Heidrun platform.
Gross profit for the fourth quarter was $29.7 million, representing gross margin of 61.4%, compared to $27.8 million and 69.9% in the prior-year period. The change in margin reflects product mix and delivery timing, integration of upgraded system capabilities, and continued investment in business development and team expansion.
Operating income for the quarter was $6.0 million, compared to $16.1 million in the fourth quarter of 2024, reflecting continued investment in engineering development, production scaling and public company infrastructure.
We reported break-even results for the fourth quarter, compared to net loss of $(0.8) million in the prior-year quarter.
EBITDA was $8.8 million, compared to $8.7 million in the prior-year period.
Adjusted EBITDA was $8.9 million, compared to $19.2 million in the prior-year period.
Full Year 2025 Financial Results
For the full year 2025, revenue totaled $90.9 million, compared to $86.9 million in 2024 driven primarily by the Drones segment, which represented approximately 87.0% of total revenue in 2025. The Company’s revenue profile continues to reflect strong demand for its drone platforms and the central role of the Drones segment in AIRO’s growth strategy.
Gross profit for the year was $54.4 million, representing gross margin of 59.9%, compared to $58.3 million and 67.1% in 2024. The change in margin reflects product mix and delivery timing, integration of upgraded system capabilities, and continued investment in business development and team expansion.
Operating loss for the year was $(28.8) million, compared to $(17.4) million in 2024, reflecting investments in engineering capabilities, manufacturing expansion and public company infrastructure.
Net loss for the year was $(4.1) million, compared to $(38.7) million in 2024.
EBITDA was $24.7 million, compared to $(13.1) million in the prior-year period.
Adjusted EBITDA for the year was $5.7 million, compared to $33.7 million in 2024.
As of December 31, 2025, cash totaled $74.4 million.
EBITDA and Adjusted EBITDA are non-GAAP financial measures. See “Non-GAAP Financial Measures” below for the definition of each non-GAAP financial measure and the tables that follow for a reconciliation of each of these non-GAAP measures to net (loss) income, the most comparable GAAP measure.
Outlook
The Company expects full-year 2026 revenue growth between 15% and 25% year over year. As of March 31, 2026, the Company expects approximately $150 million in consolidated backlog to convert over the next 12 months during 2026. Drones segment backlog represents unfilled orders for which we have purchase orders or other definitive agreements with customers, as well as orders for which NATO countries have allocated funds but for which no definitive agreement has been executed but is expected once through the administrative process, in each case against which we expect to perform and recognize revenue in the next 12 months.
Growth in 2026 is expected to be supported by increased drone system deliveries, expanded manufacturing capacity, continued international demand from NATO-aligned defense customers and progress across strategic partnerships and new platform development.
As is typical for businesses serving government and defense customers, revenue recognition may vary meaningfully across quarters depending on contract timing, production schedules and delivery milestones.
AIRO is unable to include a reconciliation of forward-looking Adjusted EBITDA to net loss, the most directly comparable GAAP measure, without unreasonable effort due to the high variability with respect to the impact of items such as depreciation and amortization, stock-based compensation expense and other items that are excluded from Adjusted EBITDA.
Conference Call and Webcast
AIRO will host a conference call to discuss its fourth quarter and full year 2025 results and business outlook on March 31, 2026, at 8:00 am ET. Participants can join the call by dialing 1 (800)-715-9871 (US) or 1 (646)-307-1963 (international) and enter the access code 7911023. To listen to the live audio webcast and Q&A, visit the Event & Presentations section of AIRO’s investor relations website at AIRO Group Holdings, Inc. - Events & Presentations, or by clicking on the link HERE. To avoid delays, it is recommended that participants dial into the conference call 15 minutes ahead of the scheduled start time.
A replay of the webcast will be available on the website within 24 hours after the call. The earnings press release and related materials will also be available on AIRO’s investor relations website at https://investor.theairogroup.com/.
About AIRO
AIRO Group Holdings is a next-generation aerospace and advanced air mobility platform driving innovation in defense and commercial markets. Headquartered in McLean, VA, with operations in the U.S., Canada and Denmark, AIRO combines global reach with deep technical expertise. Through a vertically integrated model and a differentiated technology portfolio, AIRO delivers solutions across four high-growth segments: Drones, Avionics, Training and Electric Air Mobility.
Forward-Looking Statements
The statements contained in this press release that are not historical facts are forward-looking statements. You can identify forward-looking statements because they contain words such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “intends,” “plans,” “estimates,” or “anticipates,” or similar expressions which concern our strategy, plans, projections or intentions. These forward-looking statements may be included throughout this press release and include, but are not limited to, statements relating to estimates and forecasts of financial and performance metrics, including full year 2026 outlook, statements regarding AIRO’s joint venture with Nord Drone Group and proposed joint venture with Bullet, including the goals of and opportunities for, each joint venture and the ability to consummate the joint ventures on the terms described herein or at all and the timing thereof, the timing of Blue UAS certification and impact on procurement opportunities, expected operational readiness of Jaunt’s medium-lift cargo drone, the amount and timing of backlog converting to revenue, the market acceptance and opportunity of AIRO’s products and services and other statements that are not historical fact. By their nature, forward-looking statements are not statements of historical fact or guarantees of future performance and are subject to risks, uncertainties, assumptions or changes in circumstances that are difficult to predict or quantify, including those described in the section titled “Risk Factors” in AIRO’s Quarterly Report on Form 10-Q for the period ended September 30, 2025 filed with the Securities and Exchange Commission (“SEC”) on November 14, 2025 as well as other filings AIRO may make with the SEC in the future. Forward-looking statements represent AIRO’s management’s beliefs and assumptions only as of the date such statements are made. AIRO undertakes no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.
Non-GAAP Financial Measures
To supplement its condensed consolidated financial statements prepared and presented in accordance with GAAP, AIRO uses EBITDA, Adjusted EBITDA and Adjusted EBITDA margin, as described below, to facilitate analysis of its financial and business trends and for internal planning and forecasting purposes. AIRO defines (1) EBITDA as net income (loss) before interest expense, income tax expense (benefit), depreciation and amortization, (2) Adjusted EBITDA as net income (loss) before interest expense, income tax expense (benefit), depreciation and amortization, loss (gain) on extinguishment of debt, stock-based compensation, contingent consideration and warrant fair value adjustments, goodwill impairment and other one-time adjustments related to the IPO and (3) Adjusted EBITDA margin as Adjusted EBITDA divided by revenue. The above items are excluded from EBITDA and Adjusted EBITDA because these items are either non-cash in nature, or because the amount and timing of these items is unpredictable, or because they are not driven by core results of operations, thereby rendering comparisons with prior periods and competitors less meaningful. AIRO believes EBITDA, Adjusted EBITDA and Adjusted EBITDA margin provide useful information to investors and others in understanding and evaluating its results of operations, as well as provides useful measures for period-to-period comparisons of its business performance. Moreover, Adjusted EBITDA is a key measurement used by AIRO management internally to make operating decisions, including those related to analyzing operating expenses, evaluating performance and performing strategic planning and annual budgeting.
There are limitations associated with the use of non-GAAP financial measures. These non-GAAP financial measures should not be considered as alternatives to performance measures derived in accordance with GAAP. AIRO’s presentation of these non-GAAP financial measures should not be construed to imply that its future results will be unaffected by items that are excluded from these metrics. In addition, AIRO’s definitions of these non-GAAP financial measures may be different from similarly titled non-GAAP measures used by other companies. These non-GAAP financial measures have limitations as an analytical tool and you should not consider any of these non-GAAP financial measures in isolation or as a substitute for analysis of our results as reported under GAAP. See the tables that follow for a reconciliation of EBITDA and Adjusted EBITDA to net income (loss) and Adjusted EBITDA Margin to net income (loss) margin, the most directly comparable financial measures stated in accordance with GAAP.
AIRO Group Holdings, Inc.
Consolidated Balance Sheets
(unaudited)
(Amounts in thousands)
December 31, 2025
December 31, 2024
ASSETS
Current assets:
Cash
$
74,358
$
20,741
Restricted cash
193
170
Accounts receivable, net
12,385
8,961
Related party receivables
393
791
Inventory
11,639
8,823
Prepaid expenses and other current assets
7,508
2,310
Deferred offering costs
-
799
Total current assets
106,476
42,595
Property and equipment, net
8,986
6,834
Right-of-use operating lease assets
3,278
352
Goodwill
571,653
557,508
Intangible assets, net
83,487
93,502
Other assets
259
208
Total assets
$
774,139
$
700,999
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
6,599
$
16,440
Related party payables
8,892
2,183
Accrued expenses
7,624
16,374
Operating lease liabilities, current
902
213
Deferred revenue
4,497
10,340
Related party borrowings
1,161
5,971
Revolving lines of credit
-
127
Current maturities of debt
1,190
27,992
Investor notes at fair value
-
13,819
Due to seller
-
3,148
Total current liabilities
30,865
96,607
Long-term debt, net of current maturities
500
688
Deferred compensation
-
11,219
Deferred tax liability
1,046
767
Long-term deferred revenue
8
10
Operating lease liabilities, noncurrent
2,478
146
Other long-term liabilities
50
50
Contingent consideration
-
42,782
Total liabilities
34,947
152,269
Stockholders’ equity:
Common stock
-
-
Additional paid-in capital
963,022
764,692
Treasury shares
(21,220
)
-
Accumulated other comprehensive income (loss)
7,947
(9,509
)
Accumulated deficit
(210,557
)
(206,453
)
Total stockholders’ equity
739,192
548,730
Total liabilities and stockholders’ equity
$
774,139
$
700,999
AIRO Group Holdings, Inc.
Consolidated Statements of Operations
(unaudited)
Year ended December 31,
(Amounts in thousands, except per share amounts)
2025
2024
Revenue
$
90,907
$
86,935
Cost of revenue
36,492
28,618
Gross profit
54,415
58,317
Operating expenses:
Research and development
17,918
13,133
Sales and marketing
6,618
6,422
General and administrative
58,644
18,201
Goodwill impairment
-
37,994
Total operating expenses
83,180
75,750
Loss from operations
(28,765
)
(17,433
)
Other income (expense):
Interest expense, net
(9,800
)
(3,764
)
Gain (loss) on extinguishment of debt
15,559
(10,461)
Other income, net
25,945
2,173
Total other income (expense)
31,704
(12,052
)
Income (loss) before income tax expense
2,939
(29,485
)
Income tax expense
(7,043
)
(9,209
)
Net loss
$
(4,104
)
$
(38,694
)
Net loss per share - basic and diluted
$
(0.17
)
$
(2.36
)
Weighted-average number of common shares used in computing net loss per share, basic and diluted
23,678
16,387
Three Months ended December 31,
(Amounts in thousands)
2025
2024
Revenue
$
48,278
$
39,729
Cost of revenue
18,620
11,957
Gross profit
29,658
27,772
Operating expenses:
Research and development
6,026
3,557
Sales and marketing
1,825
2,204
General and administrative
15,822
5,921
Total operating expenses
23,673
11,682
Income from operations
5,985
16,090
Other expense:
Interest expense, net
(602
)
(847
)
Loss on extinguishment of debt
-
(10,461
)
Other expense, net
(111
)
(140
)
Total other expense
(713
)
(11,448
)
Income before income tax expense
5,272
4,642
Income tax expense
(5,312
)
(5,397
)
Net loss
$
(40
)
$
(755
)
AIRO Group Holdings, Inc.
Non-GAAP Reconciliations
(UNAUDITED)
Year Ended
(in thousands, except percentages)
December 31, 2025
December 31, 2024
Net loss
$
(4,104
)
$
(38,694
)
Depreciation and amortization
12,009
12,640
Income tax expense
7,043
9,209
Interest expense, net
9,800
3,764
EBITDA
24,748
(13,081
)
(Gain) loss on extinguishment of debt
(15,559
)
10,461
Stock-based compensation
19,906
716
Contingent consideration fair value adjustments
(20,272
)
(2,400
)
Warrant fair value adjustment
(1,843
)
-
Goodwill impairment
-
37,994
IPO contingencies 1
(1,322
)
-
Adjusted EBITDA
$
5,658
$
33,690
Net loss margin
(4.5
)%
(44.5
)%
Adjusted EBITDA Margin
6.2
%
38.8
%
1 IPO contingencies for the year ended December 31, 2025 are $1.0 million related to Kipps, $0.8 million related to a legal settlement, $0.5 million legal accrual, $0.2 million for NGA, $0.3 million bonus, $0.6 million Aspen contingent debt, $1.2 million charge related to the Libertas warrants, $0.1 million cash portion of the Aspen carve-out, net of a $5.9 million gain on deferred compensation.
Three Months Ended
December 31,
(in thousands, except percentages)
2025
2024
Net loss
$
(40
)
$
(754
)
Depreciation and amortization
2,973
3,162
Income tax expense
5,312
5,397
Interest expense, net
602
847
EBITDA
8,847
8,652
Loss on extinguishment of debt
-
10,461
Stock-based compensation
50
122
Adjusted EBITDA
$
8,897
$
19,235
Net loss margin
(0.1
)%
(1.9
)%
Adjusted EBITDA Margin
18.4
%
48.4
%