AIRO Group (AIRO) Q4 2025 earnings summary

Executive summary

• 2025 was a transformational year with operational, strategic, and financial progress, including going public, expanding manufacturing in the U.S. and Europe, and forming key joint ventures.

• The business is primarily driven by drones, accounting for 87% of 2025 revenue, with strong demand from NATO and allied defense customers.

• Transitioned from platform development to operational execution, completing the first U.S.-manufactured RQ-35 drone and advancing toward Blue UAS certification.

• Expanded global presence with new sales hubs in Singapore and the UK, and increased footprint in Ukraine.

• Positioned for disciplined scale aligned with allied defense priorities and global defense spending trends.

Financial highlights

• Full year 2025 revenue was $90.9 million, up from $86.9 million in 2024; Q4 2025 revenue was $48.3 million, up from $39.7 million in Q4 2024.

• Full year EBITDA reached $24.7 million, compared to -$13.1 million in 2024; Q4 EBITDA was $8.8 million, nearly flat year-over-year.

• Net loss for 2025 was $4.1 million, a significant improvement from a $38.7 million loss in 2024, with Q4 net result at break-even.

• Gross margin for 2025 was 59.9%, down from 67.1% in 2024; Q4 2025 gross margin was 61.4%, down from 69.9% in Q4 2024.

• Cash balance at year-end was $74.4 million, bolstered by an $89.4 million follow-on offering in Q3.

Outlook and guidance

• 2026 revenue growth is projected at 15%-25% year-over-year, based on current backlog and order pipeline.

• Guidance excludes potential contributions from new joint ventures, which are expected to be additive.

• Backlog as of March 31, 2026, stands at $150 million, providing strong visibility for the coming year.

• Blue UAS certification expected in H1 2026, anticipated to expand procurement opportunities.

• U.S. sales are not included in 2026 guidance; any upside from U.S. orders will be communicated as they materialize.