AIRO Group (AIRO) investor relations material

Executive summary

• Q2 2026 revenue rose 76% year-over-year to $43.2M, driven by strong drone segment performance and new product launches, while net loss was $2M compared to net income of $5.9M in Q2 2025.

• Gross margin improved to 64.1% from 61.2% year-over-year, and operating income reached $1.7M, reversing a prior-year loss.

• Drone backlog grew 9% sequentially to $163M, providing strong revenue visibility for the next 12 months.

• Achieved Blue UAS certification for RQ-35, unlocking U.S. defense procurement, and unveiled RQ-70 ISR platform.

• Cash balance increased to $56M by July 31, 2026, after receivables collection, supporting disciplined investment.

Financial highlights

• Q2 2026 revenue: $43.2M (+76% YoY); gross profit: $27.7M (64.1% margin); adjusted EBITDA: $6.8M (15.8% margin).

• Net loss: $2M in Q2 2026 vs. net income of $5.9M prior year; operating income: $1.7M vs. -$19.7M last year.

• Six-month revenue: $52.1M (+43.3% YoY); six-month net loss: $17.4M.

• Cash and restricted cash: $25.9M as of June 30, 2026; $56M as of July 31, 2026.

• Debt: $6.8M as of June 30, 2026; minimal debt post-quarter.

Outlook and guidance

• Full-year 2026 revenue growth guidance reiterated at 15%-25% year-over-year.

• Adjusted EBITDA for 2026 expected in the negative mid- to high-teens dollar range.

• Modest gross margin compression expected versus 2025; full-year margin in line with first half.

• Q3 revenue expected to decline sequentially, with Q4 revenue modestly above Q2; FX headwinds to impact H2 revenue.

• Sufficient liquidity expected for at least the next 12 months, supported by receivables collection.