MCLEAN, Va.--(BUSINESS WIRE)-- #AIRO--AIRO Group Holdings (Nasdaq: AIRO) announces that CEO Captain Joe Burns has been named a 2025 Miami University RedHawk50 Honoree, recognizing alumni who are driving impactful innovation and leadership across global industries. A Miami University graduate, Captain Burns has led major advancements across commercial and military aviation. Before joining AIRO, he held senior leadership roles at United Airlines, improving safety, operational performance, and nextgenera. ...

Core Insights - Pythia Research specializes in identifying multi-bagger stocks, particularly within the technology sector, utilizing a blend of financial analysis, behavioral finance, psychology, social sciences, and alternative metrics to evaluate companies with high conviction and asymmetric risk-reward potential [1] Group 1: Investment Strategy - The company aims to uncover breakout opportunities before they gain mainstream attention by leveraging both traditional and unconventional insights [1] - The strategy focuses on navigating market sentiment, identifying emerging trends, and investing in transformative businesses that are poised for exponential growth [1] - Pythia Research emphasizes the importance of understanding investor behavior, including biases such as anchoring to past valuations and herd mentality, which can create persistent market inefficiencies [1] Group 2: Market Perception - The company analyzes psychological noise rather than avoiding it, assessing whether market volatility is driven by emotion or fundamentals [1] - Status quo bias can blind investors to companies that are redefining their categories, while fear of uncertainty can delay recognition of businesses with unconventional growth paths [1] Group 3: Research Methodology - The research process includes identifying signals that others may overlook, such as sudden shifts in narrative, early social traction, founder-driven vision, or underappreciated momentum in developer or user adoption [1] - These signals are often precursors to exponential moves if identified early [1] Group 4: Risk/Reward Evaluation - The company focuses on conviction plays rather than safe bets, evaluating each opportunity based on its risk/reward profile, aiming for limited downside and explosive upside [1] - The belief is that the best returns come from understanding where investor belief lags behind reality [1]

Core Insights - AIRO Group Holdings Inc. is recognized as a promising aerospace and defense stock by Wall Street analysts, with a Buy rating reaffirmed by Cantor Fitzgerald and a price target of $20 [1] - Despite a reduction in price targets by some analysts due to disappointing third-quarter results, the long-term prospects for AIRO remain positive [2][3] Financial Performance - The company's third-quarter sales fell significantly to $6.3 million from $23.7 million year-over-year [2] - Cantor Fitzgerald noted a solid gross profit margin of 63.78%, indicating strong profitability despite recent sales declines [4] Market Position and Strategy - AIRO focuses heavily on drone revenue, which is projected to account for 80% of sales by 2025, leading to potential quarterly volatility [4] - The company operates in four segments: Drones, Avionics, Training, and Electric Air Mobility, positioning itself as a key supplier in both the US and European Union markets [5] Analyst Ratings and Price Targets - BTIG analyst lowered the price target from $26 to $19 while maintaining a Buy rating, reflecting cautious optimism despite recent performance [2] - Cantor Fitzgerald also reduced its price target from $30 to $20 but continues to view AIRO as a valuable investment opportunity [3]

Core Viewpoint - Cantor Fitzgerald analyst Colin Canfield has lowered the price target for Airo Group (AIRO) from $35 to $20 while maintaining an Overweight rating on the shares, indicating a belief in the company's long-term potential despite recent performance issues [1] Group 1: Financial Performance - Airo Group reported a "disappointing" Q3, which has led to a reset in expectations for the company's stock performance [1] - The magnitude of the earnings miss has placed the stock in a "show me" period, suggesting that investors will be looking for clear signs of recovery and value creation in the near future [1] Group 2: Market Position - Airo Group is recognized as a critical drone supplier for both the EU and U.S. markets, indicating its strategic importance in the industry [1]

Core Viewpoint - AIRO Group Holdings, Inc. has announced a joint venture with Nord-Drone to enhance drone production and supply for defense needs, despite facing a significant revenue decline in Q3 2023 [1][2][3]. Group 1: Joint Venture and Strategic Goals - The joint venture, named AIRO Nord-Drone LLC, aims to integrate AIRO's aerospace capabilities with Nord Drone Group's expertise in proven technologies, including loitering munitions and multi-purpose combat drones [2]. - Dr. Chirinjeev Kathuria, Executive Chairman, emphasized that this venture is a milestone in delivering battlefield-tested technology to allies, creating a transatlantic defense platform [3]. Group 2: Financial Performance and Projections - AIRO reported a year-over-year revenue decline of over 73% in Q3 2023, primarily due to $20 million in drone shipments being delayed until Q4 [3]. - The company has already booked $24.5 million in revenue for Q4 2023 and anticipates that full-year revenue in 2025 will exceed that of 2024 [4]. Group 3: Market Sentiment and Analyst Ratings - Despite a 20% decline in stock price year-to-date, Wall Street analysts maintain a positive outlook with a consensus Buy rating and an average upside potential of over 200% as of November 14 [5]. - Mizuho has lowered its price target for AIRO's stock from $31 to $25 while keeping an Outperform rating, citing a promising long-term outlook [4].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended September 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38529 AIRO Group Holdings, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation ...

Financial Data and Key Metrics Changes - For Q3 2025, revenue was $6.3 million, a decrease from $23.7 million in the prior year period, primarily due to customer-requested capability upgrades that delayed shipments [17] - Gross profit for the quarter was $2.8 million, with a gross margin of 44%, down from $16.3 million and 68.7% in the prior year [17] - Year-to-date gross margin was 58.1%, driven by a lower proportion of drone revenue in the mix [18] - EBITDA loss improved to $5.7 million from a loss of $23.1 million in the prior year quarter [18] - Net loss was $8 million compared to a net loss of $30.3 million in Q3 2024 [18] Business Line Data and Key Metrics Changes - The drone business launched an AI-capable version of the RQ-35 Heidrun, enhancing its capabilities in GPS-denied operations [12] - The training division executed over $1.7 million in task orders for military training, indicating solid performance [14] - Avionics experienced stable margins despite lower revenue due to a focus on drone production [21] Market Data and Key Metrics Changes - The company has over $190 million in bookings in progress to be delivered in 2025 and 2026, reflecting strong demand across its segments [20] - The drone segment is expected to see significant growth driven by rising defense budgets and demand for autonomous ISR platforms [12] Company Strategy and Development Direction - AIRO is focused on expanding its unmanned systems portfolio through joint ventures with Nord-Drone and Bullet, aiming to enhance production capacity and technological capabilities [9][10] - The company is investing in R&D for drones and avionics while expanding its training capabilities to qualify for more military programs [27] - AIRO aims to strengthen its balance sheet and pursue growth investments across all operating segments following a successful follow-on offering that raised $89.4 million [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting customer demands despite timing-related challenges in Q3, emphasizing strong underlying demand [20] - The company expects full-year 2025 revenue to exceed 2024 revenue of $86.9 million, reflecting organic growth and not including potential contributions from joint ventures [22] - Management highlighted the importance of the Blue UAS certification for future military contracts and production scaling [36] Other Important Information - AIRO operates across nine facilities in the U.S., Canada, and Europe, with ISO 9001 and AS9100 certifications [8] - The company is actively working to source additional supply and implement multiple sources for key components to mitigate supply chain issues [21] Q&A Session Summary Question: Discussion on the $200 million orders in progress and revenue expectations for next year - Management confirmed solid visibility for orders and expects the $200 million to be delivered over the next 18 months, with a focus on expanding business development efforts in Asia-Pacific and North America [26] Question: R&D spend in Air Mobility and government support - Management indicated that approximately 17% of funding will come from internal sources, with 30%-40% from customer advances and the remainder from government funding, with 30% already confirmed [32] Question: Status of Blue UAS certification and production rates - Management noted that production rates will grow, with initial prototypes running this year, and emphasized that inbound orders from the DoD are contingent upon Blue UAS certification [39] Question: Economics of the Nord-Drone joint venture - The joint venture is structured as a 50/50 partnership, with AIRO contributing manufacturing and R&D expertise while sharing in the revenues and profits from drone sales [40]

Financial Data and Key Metrics Changes - For Q3 2025, revenue was $6.3 million compared to $23.7 million in the prior year period, primarily due to customer-requested capability upgrades that delayed shipments [17] - Gross profit for the quarter was $2.8 million, with a gross margin of 44%, down from $16.3 million and 68.7% in the prior year [17] - EBITDA loss improved to $5.7 million from a loss of $23.1 million in the prior year quarter, while adjusted EBITDA loss was $8 million compared to a positive $10.9 million in the prior year [18] - The net loss for the quarter was $8 million, compared to a net loss of $30.3 million in Q3 2024 [18] Business Line Data and Key Metrics Changes - The drone business showed strong momentum, with the launch of an AI-capable version of the RQ-35 Hedron and a $4.5 million award for counter-electronic warfare technology development [12][14] - The training division executed over $1.7 million in task orders for military training, reinforcing its position as a trusted provider [14] - Avionics experienced stable margins despite lower revenue due to a focus on drone production [21] Market Data and Key Metrics Changes - AIRO has over $190 million in bookings in progress to be delivered in 2025 and 2026, indicating strong demand across its segments [20] - The company opened a sales hub in Singapore to enhance its presence in the Asia-Pacific region [13] Company Strategy and Development Direction - AIRO is focused on expanding its unmanned systems portfolio through joint ventures with Nord-Drone and Bullitt, aiming to enhance production capacity and technological capabilities [9][10] - The company is investing in R&D for drones and air mobility, with a significant focus on government contracts and partnerships [32][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting customer demands despite recent shipment delays, emphasizing strong underlying demand [20] - The company expects full-year 2025 revenue to exceed 2024 revenue of $86.9 million, reflecting organic growth and not including potential contributions from joint ventures [22] Other Important Information - AIRO completed a follow-on offering, raising $89.4 million in gross proceeds, strengthening its balance sheet for growth investments [21] - The company is actively working to resolve supply chain issues related to sourcing new components for drone production [21] Q&A Session Summary Question: Discussion on $200 million orders in progress and expected backlog materialization - Management confirmed solid visibility for orders and indicated that these orders are expected to be delivered in the next 18 months [26][27] Question: R&D spend in air mobility and progress with government officials - Management outlined that approximately 17% of funding will come from internal funds, with 30%-40% from customer advances and the remainder from government funding [32] Question: Update on Blue UAS certification and production expansion - Management noted that production rates will grow, with initial prototypes running this year, and emphasized that inbound orders from the DoD are contingent upon Blue UAS certification [39][45] Question: Economics of the Nord-Drone joint venture - The joint venture is structured as a 50/50 partnership, allowing AIRO to share in 50% of the revenues and profits from the deployment of UAS across various markets [40]

Financial Data and Key Metrics Changes - For Q3 2025, revenue was $6.3 million, a decrease from $23.7 million in the prior year period, primarily due to customer-requested capability upgrades that delayed shipments [17] - Gross profit for the quarter was $2.8 million, with a gross margin of 44%, down from $16.3 million and 68.7% in the prior year [17] - Year-to-date gross margin was 58.1%, driven by a lower proportion of drone revenue in the mix [18] - EBITDA loss was $5.7 million, an improvement from a $23.1 million loss in the prior year quarter [18] - Net loss was $8 million compared to a net loss of $30.3 million in Q3 2024 [18] Business Line Data and Key Metrics Changes - The drone business launched an AI-capable full-stack version of the RQ-35 Hedron, enhancing its capabilities in GPS-denied operations [12] - The training division executed over $1.7 million in task orders for military training, indicating solid performance [14] - The avionics segment experienced lower revenue due to a focus on drone production, but secured a multi-year OEM purchase order [16] Market Data and Key Metrics Changes - AIRO has a $200 million-plus booking pipeline, indicating strong demand across defense and advanced air mobility markets [11] - The company opened a sales hub in Singapore to enhance its presence in the Asia-Pacific region [13] Company Strategy and Development Direction - AIRO is focused on expanding its unmanned systems portfolio through joint ventures with Nord-Drone and Bullitt, aiming to enhance production capacity and technological capabilities [9][10] - The company is investing in R&D for drones and air mobility, with a commitment to innovation and adapting to evolving mission needs [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting customer demands despite timing-related challenges in Q3, emphasizing strong underlying demand [19] - The company expects full-year 2025 revenue to exceed 2024 revenue of $86.9 million, reflecting organic growth and not including potential contributions from joint ventures [22] Other Important Information - AIRO completed a follow-on offering, raising $89.4 million in gross proceeds, significantly strengthening its balance sheet [21] - The company is actively working to source additional supply and implement multiple sources for key components to mitigate supply chain issues [21] Q&A Session Summary Question: Discussion on $200 million orders in progress and expected backlog materialization - Management confirmed solid visibility for orders and indicated that these orders are expected to be delivered in the next 18 months [24][26] Question: R&D spend in air mobility and progress with government officials - Management outlined that approximately 17% of funding will come from internal funds, with 30%-40% from customer advances and the remainder from government funding [29][31] Question: Status of Blue UAS certification and production expansion - Management noted that production rates will grow, with initial prototypes running this year, but emphasized that inbound orders from the DoD are contingent upon Blue UAS certification [38][40] Question: Economics of the Nord-Drone Group joint venture - The joint venture is structured as a 50/50 partnership, with AIRO contributing manufacturing and R&D expertise while sharing in revenues and profits [40]

Exhibit 99 AIRO Reports Third Quarter 2025 Results; Progress on Drone Deliveries and Strong Liquidity Position AIRO, Through Its Leading Drone Technology Business, Sky-Watch, Secures $4.5M Development Program to Advance Counter- Electronic Warfare Technologies McLean, VA – November 14, 2025 – 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 third quarter ended September 30, 2025. Thir ...