AIRO Reports First Quarter 2026 Results
AIRO
Published on 05/14/2026 at 06:30 am EDT
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 first quarter ended March 31, 2026.
“Following a foundational 2025, we continued to take important steps in the first quarter to strengthen our infrastructure and strategic focus needed to scale AIRO into a leading, integrated aerospace and defense platform. As a newly public company, we are prioritizing disciplined capital deployment, aligning our investments with what we believe to be the highest-return opportunities across defense mobility, security, and training. While first quarter results reflect expected variability and investment timing, we believe this represents the low point for the year and positions us for accelerated growth as we execute against a robust pipeline of demand. And, we are reiterating our full‑year 2026 revenue growth guidance of 15% to 25%,” stated Dr. Chirinjeev Kathuria, Executive Chairman.
“We delivered a solid start to 2026, with results in line with our expectations and reinforcing our confidence in our full-year outlook. During the quarter, we refined our strategic focus to further align AIRO with the growing drone market, centered on delivering mission‑ready, AI‑enabled unmanned systems to U.S. and allied defense customers. With growing demand, a backlog that continues to build, and key milestones ahead, including Blue UAS certification and the introduction of new products, we believe we are well positioned for a strong rest of the year and meaningful long-term value creation,” said Joe Burns, Chief Executive Officer of AIRO.
First Quarter 2026 Financial Highlights
First Quarter 2026 & Recent Operational Highlights
First Quarter 2026 Financial Results
Revenue for the first quarter of 2026 was $8.9 million, compared to $11.8 million in the first quarter of 2025. The year-over-year decrease was in line with internal expectations and reflects normal seasonality, timing of customer shipments, and a higher mix of upgrade-related activity during the period.
Gross profit for the first quarter was $2.4 million, representing a gross margin of 26.6%, compared to $6.9 million and 58.8% in the prior-year period. The change in margin was primarily driven by product mix, with a greater contribution from lower-margin upgrade programs versus full system deliveries. The Company expects margins to improve over the balance of the year as drone deliveries resume as the primary revenue driver.
Operating loss for the quarter was $(17.2) million, compared to $(3.1) million in the first quarter of 2025. The increase in operating loss reflects lower revenue, higher cost of sales, and continued investment in engineering, production scaling, and public company infrastructure following the Company’s initial public offering (“IPO”).
Net loss for the first quarter was $(15.5) million, compared to $(2.0) million in the prior-year quarter, reflecting the same factors impacting operating performance.
EBITDA was $(14.3) million, compared to $2.7 million in the prior-year period. Adjusted EBITDA was $(12.8) million, compared to $0.1 million in the prior-year period, reflecting the impact of product mix dynamics and continued investments to support long-term growth.
As of March 31, 2026, cash totaled $54.2 million, with approximately $1.2 million in total debt, providing the Company with financial flexibility to support ongoing strategic initiatives.
Drone backlog totaled more than $150 million as of April 30, 2026, consistent with March 31, 2026. The Company expects the majority of this backlog to convert to revenue over the next 12 months, providing strong visibility into future growth. Management continues to view backlog conservatively and believes its expanding pipeline provides additional upside beyond current backlog levels.
EBITDA and Adjusted EBITDA are non-GAAP financial measures. See “Non-GAAP Financial Measures and Backlog” 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 reiterates its full-year 2026 revenue growth expectations of 15% to 25% year over year. As of April 30, 2026, drone backlog exceeded $150 million, and the Company expects the majority of this to convert over 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.
Additionally, the Company is introducing full-year 2026 Adjusted EBITDA guidance in the negative mid‑ to high‑teens dollar range, reflecting strategic investments across the business to drive organic growth.
Our financial outlook is based on assumptions that we believe to be reasonable as of the date of this release, but may be materially affected by many factors, as discussed below under “Forward Looking Statements.” Actual results may vary from the guidance and the variations may be material. We undertake no intent or obligation to publicly update or revise this outlook, whether as a result of new information, future events or otherwise, except as required by law.
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 first quarter 2026 results and business outlook on May 14, 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 defense platform driving innovation across defense and commercial markets. Headquartered in McLean, VA, with operations in the U.S., Canada, and Denmark, AIRO combines a global reach with deep technical expertise.
Through a vertically integrated model, AIRO delivers mission-critical solutions centered on its drone platforms, leveraging advanced avionics, integrated training capabilities, and embedded autonomy across systems.
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 AIRO’s expectations around its strategic initiatives and growth trajectory, statements relating to estimates and forecasts of financial and performance metrics, including full year 2026 outlook, the timing of Blue UAS certification and impact on procurement opportunities, the amount and timing of Drone backlog converting to revenue, anticipated product performance and capabilities, the optimization of its AIRO’s portfolio and evaluation of the strategic fit and long-term role of its Training segment, the sufficiency of AIRO’s cash and restricted cash to support ongoing strategic initiatives, the demand for, market acceptance of and opportunity of AIRO’s products and services, AIRO’s ability to enter into strategic partnerships and the impacts of such partnerships 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 Annual Report on Form 10-K for the year ended December 31, 2025 filed with the Securities and Exchange Commission (“SEC”) on March 31, 2026 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 and Backlog
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 loss before interest (income) expense, income tax (benefit) expense and depreciation and amortization, (2) Adjusted EBITDA as net loss before interest (income) expense, income tax (benefit) expense, depreciation and amortization, stock-based compensation and contingent consideration fair value adjustments 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.
Drones segment backlog represents unfilled orders for which we have purchase orders or other definitive agreements with customers outside of the United States, 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 the majority of revenue in the next 12 months. Drones segment backlog amount was translated to U.S. dollars using applicable exchange rates as of market close on April 30, 2026, and may increase or decrease based on fluctuations in foreign exchange rates.
AIRO Group Holdings, Inc.
Consolidated Balance Sheets
(unaudited)
(Amounts in thousands)
March 31, 2026
December 31, 2025
ASSETS
Current assets:
Cash
$
54,227
$
74,358
Restricted cash
189
193
Accounts receivable, net
8,098
12,385
Related party receivables
74
393
Inventory
22,507
11,639
Prepaid expenses and other current assets
9,513
7,508
Total current assets
94,608
106,476
Property and equipment, net
9,917
8,986
Right-of-use operating lease assets
3,032
3,278
Goodwill
569,284
571,653
Intangible assets, net
82,064
83,487
Other assets
210
259
Total assets
$
759,115
$
774,139
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
10,661
$
6,599
Related party payables
7,807
8,892
Accrued expenses
8,475
7,624
Operating lease liabilities, current
887
902
Deferred revenue
3,557
4,497
Related party borrowings
5
1,161
Current maturities of debt
740
1,190
Total current liabilities
32,132
30,865
Long-term debt, net of current maturities
500
500
Deferred tax liability
1,046
1,046
Long-term deferred revenue
16
8
Operating lease liabilities, noncurrent
2,224
2,478
Other long-term liabilities
800
50
Total liabilities
36,718
34,947
Stockholders’ equity:
Common stock
-
-
Additional paid-in capital
964,524
963,022
Treasury shares
(21,220
)
(21,220
)
Accumulated other comprehensive income
5,103
7,947
Accumulated deficit
(226,010
)
(210,557
)
Total stockholders’ equity
722,397
739,192
Total liabilities and stockholders’ equity
$
759,115
$
774,139
AIRO Group Holdings, Inc.
Consolidated Statements of Operations
(unaudited)
Three months ended March 31,
(Amounts in thousands, except per share amounts)
2026
2025
Revenue
$
8,901
$
11,795
Cost of revenue
6,536
4,862
Gross profit
2,365
6,933
Operating expenses:
Research and development
6,704
3,666
Sales and marketing
1,977
1,433
General and administrative
10,842
4,915
Total operating expenses
19,523
10,014
Loss from operations
(17,158
)
(3,081
)
Other income (expense):
Interest income (expense), net
376
(1,267
)
Other (expense) income, net
(316
)
2,662
Total other income (expense)
60
1,395
Loss before income tax benefit (expense)
(17,098
)
(1,686
)
Income tax benefit (expense)
1,645
(287
)
Net loss
$
(15,453
)
$
(1,973
)
Net loss per share – basic and diluted
$
(0.49
)
$
(0.12
)
Weighted-average number of shares of common stock used in computing net loss per share, basic and diluted
31,395
16,387
AIRO Group Holdings, Inc.
Non-GAAP Reconciliations
(UNAUDITED)
Three Months Ended March 31,
(in thousands, except percentages)
2026
2025
Net loss
$
(15,453
)
$
(1,973
)
Depreciation and amortization
3,130
3,138
Income tax (benefit) expense
(1,645
)
287
Interest (income) expense, net
(376
)
1,267
EBITDA
(14,344
)
2,719
Stock-based compensation
1,502
125
Contingent consideration fair value adjustments
-
(2,738
)
Adjusted EBITDA
$
(12,842
)
$
106
Net loss margin
(173.6
)%
(16.7
)%
Adjusted EBITDA margin
N.m.
0.9
%
N.m. – Not meaningful
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