AIRO Group (AIRO) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $8.9 million, down from $11.8 million in Q1 2025, reflecting lower order volume, shipment timing, and product mix across Drones, Avionics, and Training segments.

• Net loss widened to $15.5 million from $2.0 million year-over-year, driven by higher operating expenses, lower gross profit, and post-IPO investments.

• Gross margin declined to 26.6% from 58.8% year-over-year, mainly due to unfavorable sales mix and increased costs in the Drones segment.

• Strategic focus shifted to the drone market, launching new AI-enabled platforms (RQ-70, JC-250, JX-250, RQ-35), scaling manufacturing, and progressing toward Blue UAS certification targeted for Q2 2026.

• Drone backlog exceeded $150 million as of April 30, 2026, providing strong revenue visibility for the next 12 months.

Financial highlights

• Q1 2026 revenue: $8.9 million (down $2.9 million year-over-year); gross profit: $2.4 million (26.6% margin) vs. $6.9 million (58.8%) prior year.

• Operating loss increased to $17.2 million from $3.1 million; adjusted EBITDA was $(12.8) million, compared to $0.1 million in Q1 2025.

• Cash and restricted cash at quarter-end was $54.2–$54.4 million, with minimal debt.

• Inventory increased by $10.9 million to support anticipated drone shipments.

Outlook and guidance

• Full-year 2026 revenue growth guidance reiterated at 15%–25% year-over-year, with majority of drone backlog expected to convert to revenue within 12 months.

• Margins expected to improve as full drone system deliveries resume; Q1 expected to be the low point for revenue and profit.

• Full-year 2026 adjusted EBITDA guidance in the negative mid- to high-teens million dollar range, with most losses in the first half.

• Blue UAS certification targeted for Q2 2026 to unlock further procurement opportunities.