Full year 2025 revenue of $90.9 million compared to $86.9 million in 2024
Fourth quarter 2025 revenue of $48.3 million, compared to $39.7 million in the fourth quarter of 2024; up $42.0 million sequentially from $6.3 million in the third quarter of 2025, including approximately $20 million of revenue that shifted into the fourth quarter of 2025
Cash of $74.4 million as of December 31, 2025
Initiating 2026 outlook with expected year-over-year revenue growth of 15% - 25%
Approximately $150 million of Drone segment backlog as of March 31, 2026, with meaningful conversion expected in 2026
MCLEAN, Va.--(BUSINESS WIRE)--March 31, 2026--
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.
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
-- Revenue: $48.3 million, compared to $39.7 million in the fourth quarter
of 2024.
-- Gross profit: $29.7 million, representing gross margin of 61.4%,
compared to $27.8 million, representing gross margin of 69.9% in the
prior-year period.
-- Operating income: $6.0 million, compared to $16.1 million in the fourth
quarter of 2024.
-- Net loss: break-even results, compared to $(0.8) million in the fourth
quarter of 2024.
-- EBITDA: $8.8 million, compared to $8.7 million.
-- Adjusted EBITDA: $8.9 million, compared to $19.2 million in the fourth
quarter of 2024.
Full Year 2025
-- Revenue: $90.9 million compared to $86.9 million in 2024.
-- Gross profit: $54.4 million, representing gross margin of 59.9%,
compared to $58.3 million, representing gross margin of 67.1% in 2024.
-- Operating loss: $(28.8) million, compared to $(17.4) million in 2024.
-- Net loss: $(4.1) million, compared to $(38.7) million in 2024
-- EBITDA: $24.7 million, compared to $(13.1) million in 2024.
-- Adjusted EBITDA: $5.7 million, compared to $33.7 million in 2024.
-- Cash and liquidity: Cash of $74.4 million as of December 31, 2025.
Full Year and Recent Operational Highlights
-- Completed first U.S.-manufactured RQ-35 Heidrun ISR drones. Systems
produced at AIRO's Phoenix, Arizona facility successfully completed Phase
1 manufacturing validation and a full flight-test campaign in December
2025.
-- Blue UAS certification targeted for first half of 2026. Certification
is expected to expand the Company's access to U.S. Department of War
procurement opportunities.
-- Strategic investment in ISR capability evolution. The Company maintains
a disciplined development roadmap focused on enhancing autonomy,
survivability, and electronic resilience across its ISR portfolio,
enabling incremental capability growth over time.
-- Sky-Watch awarded $4.5 million counter-electronic warfare development
program. The project, in partnership with Aalborg University and a third
technology collaborator, will develop advanced electronic warfare
resilience capabilities for integration across Sky-Watch unmanned aerial
systems.
-- Executed joint venture with Nord Drone Group. The partnership aims to
accelerate deployment of combat-proven unmanned aerial systems across the
United States, Ukraine and NATO markets by combining AIRO's manufacturing
and procurement expertise with Nord Drone's production capabilities.
-- Signed LOI for interceptor drone joint venture with Bullet. The
proposed partnership focuses on producing high-speed interceptor drones
designed to counter hostile unmanned aerial threats across U.S. and NATO
defense markets, with the joint venture continuing to make progress and
expected to be finalized in the coming quarter.
-- Continued development of the Jaunt JX/JC--250 medium--lift, multi--role
drone platform (formerly referred to as "Large Cargo Drone"). The
aircraft is designed to carry up to 500 pounds of payload over distances
of up to 250 miles, supporting defense logistics, persistent ISR,
disaster response, and select commercial cargo missions. The platform is
engineered for mission flexibility and dual--use applications, with
operational readiness targeted for 2027.
-- Coastal Defense awarded $1.9 million U.S. Navy training contract. The
one-year IDIQ award supports naval flight training and Joint Terminal
Attack Controller (JTAC) programs.
-- Expanded aircraft readiness for training programs. Continued
modifications to S-211 aircraft and initiated upgrades to L-39 aircraft
to support live ordnance training missions.
-- Aspen Avionics product development. Aspen advanced development of its
NexNav MAX 2 platform, secured multi-year OEM purchase orders and
expanded foreign military engagement during the year. The avionics
business remains strategically important as it supports vertical
integration across the Company's unmanned systems portfolio.
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.
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March 31, 2026 06:29 ET (10:29 GMT)
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