AIRO Group Holdings, Inc. (AIRO - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.
The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.
As such, the Zacks rating upgrade for AIRO Group Holdings, Inc. is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for AIRO Group Holdings, Inc. imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for AIRO Group Holdings, Inc.This company is expected to earn -$0.58 per share for the fiscal year ending December 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for AIRO Group Holdings, Inc.. Over the past three months, the Zacks Consensus Estimate for the company has increased 7.9%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of AIRO Group Holdings, Inc. to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
OSHKOSH, Wis.--(BUSINESS WIRE)-- #AIRO--EAA AirVenture — Aspen Avionics and AIRO Group, a leading manufacturer of advanced avionics for general aviation, today announced jointly the appointment of Richard "Rich" Cimino as Vice President of Engineering, effective July 27, 2026.Cimino, based at AIRO's manufacturing facility in Phoenix, Arizona, will be responsible for leading engineering strategy and execution at Aspen Avionics, as well as engineering initiatives across AIRO's US-based drone business. He.
OSHKOSH, Wisc.--(BUSINESS WIRE)-- #AAM--EAA AirVenture Oshkosh — Aspen Avionics, a leading manufacturer of advanced avionics for general aviation, and its parent company, AIRO Group, today jointly announced that AIRO Group's consolidated avionics and drone manufacturing facility in Phoenix, Arizona, has achieved AS9100D certification. With Aspen's manufacturing now fully consolidated with AIRO's U.S.-based drone business in Phoenix, Arizona, this certification marks another significant milestone in As.
MCLEAN, Va.--(BUSINESS WIRE)--AIRO Group Holdings, Inc. (Nasdaq: AIRO), a next-generation aerospace and defense company, today announced the successful delivery of a major unmanned aircraft systems (UAS) order to a global defense customer. Completed during the second quarter of 2026, the delivery highlights the continued expansion of AIRO’s autonomous systems business.
“Because we build the sensor, the autonomy and the airframe in-house, we control quality, cost and delivery in a way competitors relying on outside suppliers cannot.” - Joe Burns, CEO of AIRO
ShareThe delivery marks another milestone in AIRO’s strategy to expand its portfolio of proprietary technologies, increase the value delivered on each platform, and strengthen its ability to scale production for allied defense customers. Importantly, this significant delivery demonstrates AIRO’s ability to respond rapidly to large-volume customer demand, leveraging the strength of its SkyWatch brand’s supply chain, manufacturing capabilities, and operational execution.
The RQ-35 Heidrun is a battle-proven, fixed-wing UAS that gives soldiers and decision-makers real-time intelligence, surveillance and reconnaissance capabilities. Its onboard mission-centric AI supports detection, recognition and identification, along with customer-specific edge applications.
“Getting proven systems into operators’ hands quickly is what matters most in today’s environment, and this delivery reflects our ability to do exactly that at scale,” said AIRO Executive Chairman Dr. Chirinjeev Kathuria. “As demand for unmanned ISR accelerates across allied forces, our focus is on being the partner that delivers reliable capability when and where it is needed.”
Continuously refined through battlefield feedback and validated in Ukraine, the RQ-35 Heidrun offers up to three hours of endurance, a 50 km operational range, onboard AI processing, electronic warfare-resilient navigation support and a low visual and acoustic profile. The platform is designed for time-sensitive ISTAR, target observation, route reconnaissance and terrain awareness missions.
“This delivery underscores AIRO’s strategy to build and scale advanced unmanned systems that meet the urgent needs of allied defense and security customers,” said Joe Burns, Chief Executive Officer of AIRO. “Because we build the sensor, the autonomy and the airframe in-house, we control quality, cost and delivery in a way competitors relying on outside suppliers cannot. That vertical integration is what let us convert this order into a fielded capability on schedule, and it is how we intend to keep executing against our backlog.”
This major RQ-35 drone delivery demonstrates the continued scaling of AIRO’s unmanned systems production and the growing role of its platforms in allied defense and security operations. The Company remains focused on expanding production capacity, increasing the amount of proprietary technology across its platform, and delivering mission-critical systems that support future growth opportunities across U.S., NATO, and allied markets.
About AIRO Group Holdings, Inc.
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 global reach with deep technical expertise. Through a vertically integrated model, AIRO delivers mission-critical solutions centered on drone platforms, advanced avionics, integrated training capabilities and embedded autonomy.
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, the expected timing of full-scale production of the RQ-35; AIRO's ability to leverage its existing manufacturing infrastructure and supply chain capabilities; the development, testing, scaling, production, deployment, performance and capabilities of the RQ-35; customer interest in, demand for, market acceptance of and deployment opportunities for the RQ-35 and AIRO's other drone platforms; AIRO’s ability to compete across a broader set of mission requirements and grow its global defense platform; AIRO’s ability to execute its strategic initiatives across U.S., NATO, and allied markets; 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 most recent Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission (“SEC”), 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.
MCLEAN, Va.--(BUSINESS WIRE)--AIRO Group Holdings, Inc. (Nasdaq: AIRO)(“AIRO” or the “Company”), a next-generation aerospace and defense company, today announced that its RQ-35 Heidrun, developed through its drone brand, Sky-Watch, has been granted Blue UAS status by the Defense Contract Management Agency (DCMA). With this approval, the RQ-35 is recognized by the Department of War (DoW) as a secure, compliant unmanned aircraft system eligible for government and defense acquisition under NDAA re.
MCLEAN, Va.--(BUSINESS WIRE)--AIRO Group Holdings, Inc. (Nasdaq: AIRO), a next-generation aerospace and defense company, today announced the successful delivery of an unmanned aircraft systems (UAS) order. This marks the first operational deployment of its Zentra camera offering, included on the RQ-35 Heidrun. The delivery was completed during the second quarter of 2026. The proprietary Zentra Suite System, developed by AIRO subsidiary Sky-Watch, advances the Company's vertically integrated UAS.
MCLEAN, Va.--(BUSINESS WIRE)--AIRO Group Holdings, Inc. (Nasdaq: AIRO), a next-generation aerospace and defense company, in combination with Sky-Watch A/S, its wholly owned subsidiary, today announced the public unveiling of its RQ-70, a new deep-reach intelligence, surveillance and reconnaissance (ISR) drone, extending ISR capabilities beyond the immediate tactical frontline.
“The RQ-70 is a direct response to what our customers have been asking for, with longer range, greater endurance, and the same operational reliability they have come to expect from the RQ-35,” - Joe Burns, AIRO CEO
Share The announcement was made at Eurosatory 2026, a global event for defense and security held in Paris.
AIRO expects the RQ-70 to enter full-scale production in January 2027, leveraging the Company's existing manufacturing infrastructure and NDAA supply chain capabilities developed through the successful production of the RQ-35 platform. The Company is currently engaged with multiple existing and prospective defense customers regarding future RQ-70 deployment opportunities.
“The RQ-70 is a direct response to what our customers have been asking for, with longer range, greater endurance, and the same operational reliability they have come to expect from the RQ-35,” said Joe Burns, AIRO CEO. “Together, these platforms give allied defense forces a complete ISR toolkit, and give AIRO a stronger foundation to compete across a broader set of mission requirements.”
The RQ-70 builds on the operational success of the RQ-35 Heidrun, which has been deployed by NATO member and allied forces, and directly addresses growing customer demand for longer-range ISR capability and extended mission endurance. Together, the two platforms establish AIRO as a multi-platform ISR provider equipped to serve a broad spectrum of mission requirements across allied defense forces. The introduction of the RQ-70 deepens AIRO’s presence in the defense drone market while expanding its customer base.
Building on the RQ-35’s proven operational model, the RQ-70 supports standard hand launch and deep-stall landing, operates in GNSS-denied environments, and incorporates onboard AI to further advance AIRO’s AI roadmap. The platform also offers configuration flexibility, including standard, long-range, and VTOL-enabled options. In addition, the RQ-70 features a modular payload and software architecture that can be tailored to specific mission requirements, enabling it to serve as a standalone, full-service ISR drone for many NATO and allied defense customers.
Other key system capabilities include up to 8 hours of endurance for persistent surveillance and longer time on station; ISR operations beyond the front lines with an operational range of 62+ miles (100 km); resilience in GPS/GNSS-denied environments; deployment by a single operator with fully autonomous mission operation and recovery; and connectivity designed for digital battlefield integration.
“Modern conflicts have shown that success depends on a multitude of factors, such as how quickly intelligence can be collected, processed, and delivered to decision-makers. The RQ-70 is designed to meet that challenge, delivering long-range, persistent surveillance that integrates seamlessly into connected battlefield environments to provide reliable intelligence when it matters most,” said Dr. Chirinjeev Kathuria, AIRO Executive Chairman.
The unveiling at Eurosatory gives customers, partners, and industry stakeholders their first chance to see the aircraft configuration firsthand, providing a clear sense of its scale, capabilities, and intended operational concept.
--
About AIRO Group Holdings, Inc.
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, the expected timing of full-scale production of the RQ-70; AIRO's ability to leverage its existing manufacturing infrastructure and supply chain capabilities; the development, testing, scaling, production, deployment, performance and capabilities of the RQ-70; customer interest in, demand for, market acceptance of and deployment opportunities for the RQ-70 and AIRO's other drone platforms; AIRO’s ability to compete across a broader set of mission requirements and grow its global defense platform; AIRO’s ability to execute its strategic initiatives across U.S., NATO, and allied markets; 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.
AIRO Group Holdings, Inc. (NASDAQ:AIRO – Get Free Report) COO John Uczekaj sold 3,415 shares of the firm’s stock in a transaction that occurred on Monday, April 6th. The shares were sold at an average price of $8.84, for a total transaction of $30,188.60. Following the completion of the sale, the chief operating officer directly owned 20,111 shares in the company, valued at approximately $177,781.24. This trade represents a 14.52% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards.
John Uczekaj also recently made the following trade(s):
On Thursday, March 12th, John Uczekaj sold 396 shares of AIRO Group stock. The shares were sold at an average price of $10.43, for a total transaction of $4,130.28. AIRO Group Stock Up 0.5% Shares of NASDAQ:AIRO opened at $8.75 on Tuesday. The firm’s 50 day moving average price is $9.71 and its 200 day moving average price is $11.95. The stock has a market cap of $275.01 million and a price-to-earnings ratio of 437.50. AIRO Group Holdings, Inc. has a fifty-two week low of $7.28 and a fifty-two week high of $39.07.
AIRO Group (NASDAQ:AIRO – Get Free Report) last issued its earnings results on Tuesday, March 31st. The company reported $0.02 earnings per share for the quarter. The firm had revenue of $48.28 million during the quarter.
Hedge Funds Weigh In On AIRO Group A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Strs Ohio purchased a new stake in shares of AIRO Group during the 3rd quarter worth $25,000. Raymond James Financial Inc. purchased a new stake in shares of AIRO Group during the 2nd quarter worth $43,000. Invesco Ltd. boosted its position in shares of AIRO Group by 1.2% during the 4th quarter. Invesco Ltd. now owns 200,630 shares of the company’s stock worth $1,641,000 after purchasing an additional 2,395 shares in the last quarter. Bank of America Corp DE purchased a new stake in shares of AIRO Group during the 2nd quarter worth $60,000. Finally, JPMorgan Chase & Co. acquired a new position in shares of AIRO Group during the 3rd quarter worth approximately $54,000.
Wall Street Analyst Weigh In Several brokerages recently weighed in on AIRO. Wall Street Zen raised shares of AIRO Group from a “sell” rating to a “hold” rating in a report on Saturday, December 20th. Mizuho cut their price objective on shares of AIRO Group from $25.00 to $20.00 and set an “outperform” rating on the stock in a report on Monday, January 5th. Finally, Weiss Ratings reissued a “sell (e)” rating on shares of AIRO Group in a report on Monday, December 29th. Three analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $19.67.
Check Out Our Latest Research Report on AIRO Group
About AIRO Group (Get Free Report)
We are a technologically differentiated aerospace, autonomy, and air mobility platform targeting 21st century aerospace and defense opportunities. We leverage decades of industry expertise and connections across the drone, aviation, and avionics markets to provide leading solutions to the aerospace and defense market. We offer connected and diversified solutions providing operational synergies across our segments and are powered by an international footprint as well as supplier and public sector relationships.
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AIRO Group remains a speculative buy, with a prudent strategic pivot away from passenger eVTOL toward medium-lift cargo drones, especially for defense applications. AIRO's 2025 results were underwhelming: revenue growth missed estimates, margins fell sharply, and free cash flow turned negative, but management is prioritizing long-term scaling over short-term profitability. Guidance for 2026 targets 15-25% revenue growth, with a $150 million backlog and CapEx reductions due to the strategic shift, though margins will remain pressured during scaling.
NEW YORK, April 07, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of AIRO Group Holdings, Inc. (“Airo” or the “Company”) (NASDAQ: AIRO). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Airo and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On or around June 13, 2025, Airo conducted its initial public offering (“IPO”) of 6.9 million shares priced at $10.00 per share. Then, on March 31, 2026, Airo issued a press release announcing its fourth quarter and full year 2025 financial results, missing consensus estimates with respect to both operating profit and sales. Airo also announced the decision to abandon its electric air taxi business.
On this news, Airo’s stock price fell $0.97 per share, or 11.26%, to close at $7.61 per share on March 31, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of AIRO Group Holdings, Inc. ("Airo" or the "Company") (NASDAQ: AIRO). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Airo and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On or around June 13, 2025, Airo conducted its initial public offering ("IPO") of 6.9 million shares priced at $10.00 per share. Then, on March 31, 2026, Airo issued a press release announcing its fourth quarter and full year 2025 financial results, missing consensus estimates with respect to both operating profit and sales. Airo also announced the decision to abandon its electric air taxi business.
On this news, Airo's stock price fell $0.97 per share, or 11.26%, to close at $7.61 per share on March 31, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
LOS ANGELES--(BUSINESS WIRE)---- $AIRO--AIRO Investors Have Opportunity to Join AIRO Group Holdings, Inc. Fraud Investigation with the Schall Law Firm.
NEW YORK, April 14, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of AIRO Group Holdings, Inc. (“Airo” or the “Company”) (NASDAQ: AIRO). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Airo and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On or around June 13, 2025, Airo conducted its initial public offering (“IPO”) of 6.9 million shares priced at $10.00 per share. Then, on March 31, 2026, Airo issued a press release announcing its fourth quarter and full year 2025 financial results, missing consensus estimates with respect to both operating profit and sales. Airo also announced the decision to abandon its electric air taxi business.
On this news, Airo’s stock price fell $0.97 per share, or 11.26%, to close at $7.61 per share on March 31, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
LOS ANGELES, April 15, 2026 (GLOBE NEWSWIRE) -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of AIRO Group Holdings, Inc. (“Airo” or “the Company”) (NASDAQ: AIRO) for violations of the securities laws.
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Airo announced its Q4 and full year 2025 financial results on March 31, 2026. The Company missed consensus estimates for sales and profits, also announcing its decision to abandon its air taxi business. Based on this news, shares of Airo fell by almost 11.3%.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
CONTACT:
The Schall Law Firm
Brian Schall, Esq.
310-301-3335 [email protected]
, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of AIRO Group Holdings, Inc. ("Airo" or the "Company") (NASDAQ: AIRO). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Airo and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On or around June 13, 2025, Airo conducted its initial public offering ("IPO") of 6.9 million shares priced at $10.00 per share. Then, on March 31, 2026, Airo issued a press release announcing its fourth quarter and full year 2025 financial results, missing consensus estimates with respect to both operating profit and sales. Airo also announced the decision to abandon its electric air taxi business.
On this news, Airo's stock price fell $0.97 per share, or 11.26%, to close at $7.61 per share on March 31, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
NEW YORK, April 21, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of AIRO Group Holdings, Inc. (“Airo” or the “Company”) (NASDAQ: AIRO). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Airo and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On or around June 13, 2025, Airo conducted its initial public offering (“IPO”) of 6.9 million shares priced at $10.00 per share. Then, on March 31, 2026, Airo issued a press release announcing its fourth quarter and full year 2025 financial results, missing consensus estimates with respect to both operating profit and sales. Airo also announced the decision to abandon its electric air taxi business.
On this news, Airo’s stock price fell $0.97 per share, or 11.26%, to close at $7.61 per share on March 31, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
LOS ANGELES, April 22, 2026 (GLOBE NEWSWIRE) -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of AIRO Group Holdings, Inc. (“Airo” or “the Company”) (NASDAQ: AIRO) for violations of the securities laws.
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Airo announced its Q4 and full year 2025 financial results on March 31, 2026. The Company missed consensus estimates for sales and profits, also announcing its decision to abandon its air taxi business. Based on this news, shares of Airo fell by almost 11.3%.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
CONTACT:
The Schall Law Firm
Brian Schall, Esq.
310-301-3335 [email protected]
NEW YORK, April 28, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of AIRO Group Holdings, Inc. (“Airo” or the “Company”) (NASDAQ: AIRO). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Airo and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On or around June 13, 2025, Airo conducted its initial public offering (“IPO”) of 6.9 million shares priced at $10.00 per share. Then, on March 31, 2026, Airo issued a press release announcing its fourth quarter and full year 2025 financial results, missing consensus estimates with respect to both operating profit and sales. Airo also announced the decision to abandon its electric air taxi business.
On this news, Airo’s stock price fell $0.97 per share, or 11.26%, to close at $7.61 per share on March 31, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of AIRO Group Holdings, Inc. ("Airo" or the "Company") (NASDAQ: AIRO). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Airo and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On or around June 13, 2025, Airo conducted its initial public offering ("IPO") of 6.9 million shares priced at $10.00 per share. Then, on March 31, 2026, Airo issued a press release announcing its fourth quarter and full year 2025 financial results, missing consensus estimates with respect to both operating profit and sales. Airo also announced the decision to abandon its electric air taxi business.
On this news, Airo's stock price fell $0.97 per share, or 11.26%, to close at $7.61 per share on March 31, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
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 that it will host a conference call to report its financial results for the first quarter 2026 at 8:00 a.m., ET, on Thursday, May 14, 2026. 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&.
MCLEAN, Va.--(BUSINESS WIRE)-- #AIDriven--AIRO Group Holdings, Inc. (Nasdaq: AIRO), a next-generation aerospace and defense company, today announced the introduction of the RQ-70 Dainn, a long-range unmanned aircraft system (UAS) designed for intelligence, surveillance and reconnaissance (ISR) and target acquisition missions. The RQ-70 Dainn will be officially unveiled at Eurosatory in Paris, June 15–19, 2026, where AIRO will showcase how its integrated, AI-driven systems are addressing increasingly comple.
DETROIT--(BUSINESS WIRE)-- #AIRO--AIRO Group Holdings, Inc. (Nasdaq: AIRO), a next-generation aerospace and defense company, together with its brand Jaunt Air Mobility, today announced the public unveiling of its full-scale autonomous aircraft at AUVSI XPONENTIAL 2026 – a vertical takeoff and landing (VTOL) platform designed for defense and government missions, with dual-use capability for cargo logistics and remote operations. The aircraft represents a major milestone in the development of AIRO's heav.
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 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
Revenue: $8.9 million, compared to $11.8 million in the first quarter of 2025. Gross profit: $2.4 million, representing gross margin of 26.6%, compared to $6.9 million, representing gross margin of 58.8% in the prior year period. Operating loss: $(17.2) million, compared to $(3.1) million in the first quarter of 2025. Net loss: $(15.5) million, compared to $(2.0) million in the first quarter of 2025. EBITDA: $(14.3) million, compared to $2.7 million in the first quarter of 2025. Adjusted EBITDA: $(12.8) million, compared to $0.1 million in the first quarter of 2025. First Quarter 2026 & Recent Operational Highlights
Advanced AI-enabled drone capabilities with launch of full-stack RQ-35 variant. AIRO began marketing and selling an AI-enabled version of its flagship RQ-35 Heidrun, enhancing performance in GPS-denied environments and reinforcing its leadership in next-generation ISR systems. Shifting focus toward cargo and ISR markets while expanding medium-lift drone portfolio. AIRO is prioritizing development of a large cargo drone platform and ISR variant, rather than passenger drones, built on a shared architecture to enable lower-cost development, reduced regulatory complexity, and more predictable, diversified revenue. In parallel, the Company unveiled the JX250 and JC250 aircraft, projected to achieve up to 1,000 miles of range and up to 16 hours of endurance in ISR configurations, which would significantly expand operational reach and AIRO’s addressable market; based on current progress, first flight is targeted this year, with commercialization and operational deployment expected to begin in 2027. Optimizing portfolio to sharpen focus on the drone market; evaluating strategic alternatives for Training segment. AIRO is sharpening its focus on the drone market, where the Company sees the most significant and immediate opportunity while positioning for long-term growth. As part of this effort, the Company is evaluating the strategic fit and long-term role of its Training segment. The Training segment remains a valuable asset with significant long-term opportunity, but the segment is capital-intensive and often requires meaningful ongoing investment. Scaled manufacturing capacity to support future demand growth. Continued modernization of the Støvring, Denmark facility, increasing production capacity to approximately 30% above current backlog levels and improving operational efficiency. Sustained backlog strength and stable near‑term revenue visibility. Drone backlog exceeded $150 million as of April 30, 2026, consistent with March 31, 2026 levels, providing strong visibility with the majority expected to convert to revenue over the next 12 months. 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
AIRO Group's Pullback: An Undervalued Growth Opportunity?AIRO Group NASDAQ: AIRO reported first-quarter 2026 revenue that declined from the prior year, while management said the results were in line with internal expectations and reaffirmed its full-year revenue growth outlook as the company shifts more of its focus toward drones.
On the company’s earnings call, Executive Chairman Chirinjeev Kathuria described 2025 as a “foundational year” and said the first quarter represented another step in building infrastructure to support growth as a newly public company. He said AIRO is refining its strategic focus around opportunities that align customer demand, operational timelines and long-term value.
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Kathuria said the company is “repositioning the business to focus on the drone market” as part of a strategy to diversify its product portfolio. He pointed to several recently introduced platforms, including the RQ-70, which he said complements the RQ-35 with extended range, higher payload capacity, upgraded sensors and a competitive price point. He also highlighted the JC-250 and JX-250 drone aircraft, which are designed to achieve more than 1,000 miles of range and 16 hours of endurance in an intelligence, surveillance and reconnaissance configuration.
Revenue Falls, Loss Widens in First Quarter Chief Financial Officer Mariya Pylypiv said AIRO generated first-quarter 2026 revenue of $8.9 million, compared with $11.8 million in the first quarter of 2025. She said the decrease was expected and modestly ahead of internal expectations, citing timing-related customer shipments and expected variability in the business.
Gross profit was $2.4 million, representing a gross margin of 26.6%, compared with gross profit of $6.9 million and gross margin of 58.8% in the year-earlier period. Pylypiv said the year-over-year margin decline was not reflective of underlying demand and was driven by a first-quarter revenue mix shift toward drone upgrades.
Operating loss widened to $17.2 million from $3.1 million a year earlier. Net loss was $15.5 million, compared with $2 million in the first quarter of 2025. EBITDA was negative $14.3 million, versus positive $2.7 million in the prior-year period, while adjusted EBITDA was negative $12.8 million, compared with approximately breakeven a year earlier.
Pylypiv said the weaker profitability reflected lower revenue, higher cost of sales and higher operating expenses tied to post-IPO investments that management had previously discussed. She said the company remains disciplined on cost controls while investing in infrastructure to support demand.
Drone Backlog Exceeds $150 Million Management said demand remains stable, with drone backlog exceeding $150 million as of April 30. Pylypiv said the figure was stable compared with the amount reported on the fourth-quarter call and that AIRO expects the majority of the backlog to convert to revenue within the next 12 months.
She noted that the backlog excludes U.S. backlog, which she said could provide upside once included. The company defines the backlog as orders it reasonably expects to convert over the next 12 months.
Pylypiv said the company expects a record second half of 2026 and, more specifically, a record fourth quarter, providing momentum into 2027. She also said AIRO expects 2027 revenue growth to outpace what it has projected for 2026, with additional outperformance tied to U.S. demand.
Guidance Reaffirmed Despite Quarterly Variability AIRO reiterated its full-year 2026 revenue growth guidance of 15% to 25% year over year. Pylypiv said management is “extremely confident” in achieving the guided range and believes the company has an opportunity to outperform it.
The company expects the first quarter to be the low point for the year on both the top and bottom lines. Pylypiv said AIRO expects an approximate 40-60 split between first-half and second-half revenue, with the third quarter sequentially lower than the second quarter, based on current visibility into large drone order deliveries.
AIRO also initiated full-year 2026 adjusted EBITDA guidance in the negative mid- to high-teens dollar range. Pylypiv said the majority of the EBITDA loss is expected in the first half of the year, with first-quarter performance in line with or modestly better than the second quarter.
The company expects low single-digit gross margin compression compared with fiscal 2025, largely driven by the first-quarter mix shift toward drone upgrades. Pylypiv said pure drone deliveries are expected to be the leading driver of revenue in the second quarter and the remaining quarters, which management expects to favorably impact margins.
Blue UAS Certification Remains a Key Milestone Chief Executive Officer Joe Burns said AIRO is reaffirming its timeline to achieve Blue UAS certification in the second quarter of 2026. He called the certification a key milestone that could expand the company’s addressable market by enabling it to support the U.S. Department of Defense and accelerate domestic adoption.
Burns said the company has experience fully assembling RQ-35 Heidrun drones at its manufacturing facility in Phoenix, Arizona. In response to an analyst question, he said AIRO has invested heavily in the Phoenix factory and feels confident in obtaining final Blue UAS certification after completing required process steps.
Burns said the RQ-35 Heidrun remains AIRO’s core platform, while the company is preparing to introduce additional platforms, including the RQ-70 Dainn. He said the RQ-70 is intended to address a distinct operational profile with significantly extended flight range, higher payload capacity and upgraded sensor options.
He also said AIRO is integrating artificial intelligence across its products. Burns said the company is already marketing and selling the AI-enabled full-stack RQ-35 Heidrun, and that onboard AI supports real-time identification and classification of enemy assets and threats, navigation, situational awareness, mission execution and autonomy.
Portfolio Review and Capital Allocation Burns said AIRO is evaluating strategic alternatives for its training business, including maintaining the current approach. He said CDI remains a valuable asset with long-term potential, but described it as an asset-heavy operation whose role is being assessed as AIRO scales other segments.
In avionics, Burns said Aspen performed in line with top-line expectations for the quarter, though margins were affected by upgrade-related pricing programs and the timing of operating expenses. He said AIRO continues to see consistent demand for Aspen products and sees opportunities to integrate Aspen Avionics more deeply into its drone business over time.
Burns said AIRO’s balance sheet, with $54.2 million in cash as of March 31 and little debt, gives the company flexibility. He said AIRO continues to evaluate acquisitions that could be accretive within 12 months and strategically enhance its drone and avionics platforms. He also said management sees a disconnect between the company’s stock price and the underlying value of the business, and views share repurchases as an attractive and flexible way to return capital at current levels.
During the question-and-answer session, Burns said proposed Bullet and Nord joint ventures are still moving through regulatory issues and have not yet been finalized. He said AIRO is also evaluating other partnerships with strategic alignment. Asked about the Drone Dominance program, Burns said AIRO is currently involved as a subcontractor and expects more phases of the program to emerge in the near future.
About AIRO Group NASDAQ: AIROWe are a technologically differentiated aerospace, autonomy, and air mobility platform targeting 21st century aerospace and defense opportunities. We leverage decades of industry expertise and connections across the drone, aviation, and avionics markets to provide leading solutions to the aerospace and defense market. We offer connected and diversified solutions providing operational synergies across our segments and are powered by an international footprint as well as supplier and public sector relationships.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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MCLEAN, Va.--(BUSINESS WIRE)--AIRO Group Holdings, Inc. (Nasdaq: AIRO), a next-generation aerospace and defense company, today announced the acquisition of an industrial plot in Rebild Municipality, Denmark, totaling 390,000 square feet (~36,000 square meters). AIRO intends to use this plot to build its next large-scale industrial site to support the Company's next growth phase. AIRO believes that this investment represents a key step in realizing AIRO's strategy to scale a globally integrated.
AIRO Group is transforming into a pure-play defense drone company as military demand accelerates across NATO and U.S. markets. The company holds a backlog exceeding $150 million, nearly double annual revenue, creating significant future revenue visibility. Blue UAS certification could unlock U.S. Department of Defense procurement channels and materially expand AIRO's addressable market.
