AIRO Group (AIRO) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was $6.3M, down 73.5% year-over-year due to shipment delays in the Drones segment after customer-requested upgrades; nine-month revenue was $42.6M, down 9.7% year-over-year.

• Net loss improved to $(8.0)M from $(30.3)M in the prior-year quarter; EBITDA loss narrowed to $(5.7)M from $(23.1)M.

• Completed a follow-on offering in September 2025, raising $89.4M and boosting liquidity; IPO in June 2025 raised $58.3M net.

• Signed joint ventures with Nord Drone Group and Bullet to expand UAS and interceptor drone capabilities in U.S., NATO, and Ukraine markets.

• Maintained strong contract backlog and visibility, with $190M+ in drone bookings and $1.6B+ in available training contracts.

Financial highlights

• Q3 2025 revenue: $6.3M (Q3 2024: $23.7M); nine-month 2025 revenue: $42.6M (2024: $47.2M).

• Q3 gross profit: $2.8M, gross margin: 44.4% (down from 68.7% prior year); YTD gross margin: 58.1%.

• Q3 net loss: $(8.0)M (Q3 2024: $(30.3)M); Q3 EBITDA loss: $(5.7)M (Q3 2024: $(23.1)M); Adjusted EBITDA: $(8.0)M.

• Cash and restricted cash at September 30, 2025: $83.7M; working capital: $74.5M.

• Debt outstanding at September 30, 2025: $12.8M (December 31, 2024: $105.7M).

Outlook and guidance

• Over $190M in bookings in progress to be delivered in 2025 and 2026; Q4 2025 revenue booked at $24.5M as of November 14, 2025.

• Full-year 2025 revenue expected to exceed 2024’s $86.9M, subject to supplier deliveries and customer acceptance.

• Management expects continued investment in R&D, regulatory, and manufacturing infrastructure, with operating expenses to increase as the company scales.

• Current liquidity is sufficient for at least the next 12 months; evaluating opportunistic debt financing.

• Outlook excludes potential contributions from new joint ventures, pending financial agreements and regulatory approvals.