Financial Data and Key Metrics Changes - For Q2 2025, revenue was $24.6 million, an increase of 151% compared to $9.8 million in the prior year period, driven by execution across core segments [32] - Gross profit for the quarter was $15 million, up from $5.8 million last year, with a gross margin of 61.2% reflecting a favorable product mix [32] - Net income was $5.9 million compared to a net loss of $5.6 million in Q2 2024, with Q2 EBITDA reaching a record $18.9 million [33] Business Line Data and Key Metrics Changes - Drone segment revenue reached over $75 million in 2024, representing 167% growth, with a robust backlog [20][33] - Training segment saw high revenues due to specific government contracts, with opportunities for growth by acquiring additional aircraft [34] - Avionics experienced softer sales due to strategic delays in R&D investments, but is expected to resume investments post-IPO [34] Market Data and Key Metrics Changes - The total addressable market is estimated at $315 billion, spanning ISR drones, pilot training, avionics upgrades, and air mobility solutions [26] - NATO defense spending is increasing, with a focus on autonomy and unmanned systems, creating a long-term multi-billion dollar opportunity [25][26] Company Strategy and Development Direction - The company aims to expand its U.S. footprint with a new manufacturing and engineering facility dedicated to the RQ35 Hedron drone [28] - Focus on Blue UAS certification to enable manufacturing and sales to the Department of Defense [29] - Strategic partnerships in training and air mobility are prioritized to enhance growth and market presence [38] Management's Comments on Operating Environment and Future Outlook - Management highlighted strong momentum and rising demand across core markets, particularly in NATO defense spending and U.S. domestic solutions [24] - The company is positioned to grow all segments, driven by geopolitical factors and increased defense budgets [62] - Expectations for positive momentum in the second half of the year due to increased global defense spending, particularly for drones [35] Other Important Information - The company reported $200 million in bookings in progress, expected to convert to revenue over the next 18 months [36] - The recent IPO enhances financial flexibility and positions the company for accelerated execution across its pipeline [16] Q&A Session Summary Question: Demand shaping in the U.S. vs. Europe - Management noted that demand for small and medium tactical drones is highest in Europe, but U.S. demand is accelerating with strong interest from NATO aligned nations [43][44] Question: Growth in avionics and partnerships - Avionics growth is driven by OEM integration and retrofit programs, with partnerships like Joby Aviation positioning the company as a trusted outsourcing partner [48] Question: Working capital consumption and production outlook - Working capital needs are expected to increase due to higher receivables and inventory buildup for drone and avionics production [50] Question: Outlook for the remainder of the year - Management indicated targeted CapEx for the new manufacturing facility and investments in R&D and training to qualify for more IDIQ contracts [55] Question: Update on nations being sold to - The company is currently selling to approximately 20-25 NATO countries, with ongoing efforts to increase demand in Asia Pacific and North America [64]

Financial Performance - AIRO's Q2 2025 revenue increased by 151% to $246 million, compared to $98 million in Q2 2024[38] - Gross profit increased by 1603% to $150 million in Q2 2025, with gross profit margin at 612%, a 219 bps increase[38] - Net income was $59 million in Q2 2025, a 2048% increase from a net loss of $56 million in Q2 2024[38] - Adjusted EBITDA increased by 710% to $47 million in Q2 2025, with an Adjusted EBITDA margin of 191%, a 1321 bps increase[38] - The company's cash and cash equivalents significantly increased to $403 million in Q2 2025[41] Business Highlights - AIRO is targeting a combined aerospace and defense Total Addressable Market (TAM) of approximately $315 billion by 2030, with a composite 2024-2030 Compound Annual Growth Rate (CAGR) of 148%[20] - The company unveiled a next-generation cargo drone capable of transporting 250-500 lbs over 200 miles[30] - AIRO has secured $16 billion+ in available Close Air Support (CAS) Indefinite Delivery/Indefinite Quantity (IDIQ) contracts for training[44] - AIRO has $200M+ bookings in process for Drones[44] Strategic Initiatives - AIRO plans to establish a new US manufacturing and engineering facility to support increased demand for drones[30] - The company is in the process of manufacturing the RQ-35 Heidrun in the US to obtain Blue UAS certification, requiring at least 51% of the vehicle to be manufactured in the US[35] - NATO countries are projected to increase their defense spending benchmark from the current 2% of GDP target to 35% of GDP after the June 2025 summit[31]

Exhibit 99 AIRO REPORTS SECOND QUARTER 2025 FINANCIAL RESULTS ALBUQUERQUE, N.M. & MONTREAL & STØVRING, Denmark & WASHINGTON – August 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 second quarter ended June 30, 2025. The Company successfully completed its initial public offering ("IPO") of 6,900,000 shares of common stock, including the full exercise of the underwriters' o ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents AIRO Group Holdings, Inc.'s unaudited condensed consolidated financial statements for periods ending June 30, 2025 and 2024 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights (Unaudited) | Balance Sheet Item | June 30, 2025 ($) | December 31, 2024 ($) | | :--- | :--- | :--- | | **Assets** | | | | Cash | $40.3M | $20.7M | | Total Current Assets | $79.2M | $42.6M | | Goodwill | $572.0M | $557.5M | | **Total Assets** | **$747.8M** | **$701.0M** | | **Liabilities & Equity** | | | | Total Current Liabilities | $66.5M | $96.6M | | **Total Liabilities** | **$68.3M** | **$152.3M** | | **Total Stockholders' Equity** | **$679.6M** | **$548.7M** | - Total assets increased to **$747.8 million** from **$701.0 million** at year-end 2024, driven by a significant rise in cash following the IPO[11](index=11&type=chunk) - Total liabilities saw a substantial decrease to **$68.3 million** from **$152.3 million**, primarily due to the settlement of contingent consideration and other borrowings post-IPO[12](index=12&type=chunk) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Condensed Consolidated Statements of Operations Highlights (Unaudited) | Metric | Three Months Ended June 30, 2025 ($) | Three Months Ended June 30, 2024 ($) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $24.6M | $9.8M | +151.0% | | Gross Profit | $15.0M | $5.8M | +160.3% | | Loss from Operations | ($19.7M) | ($2.7M) | +631.1% | | Net Income (Loss) | $5.9M | ($5.6M) | Turnaround | | Basic EPS | $0.32 | ($0.34) | Turnaround | - The company achieved net income of **$5.9 million** in Q2 2025, a significant **Turnaround** from a net loss of **($5.6 million)** in Q2 2024, primarily driven by a **$15.6 million** gain on debt extinguishment and **$20.1 million** in other income, offsetting a higher loss from operations[16](index=16&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows Highlights (Unaudited, Six Months Ended June 30) | Cash Flow Activity | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Net cash used in operating activities | ($30.8M) | ($7.8M) | | Net cash used in investing activities | ($1.1M) | ($0.5M) | | Net cash provided by financing activities | $49.6M | $0.7M | | **Net increase (decrease) in cash** | **$19.6M** | **($7.8M)** | - Net cash provided by financing activities was **$49.6 million** for the first six months of 2025, primarily due to **$61.5 million** in net proceeds from the sale of common stock in the IPO[27](index=27&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - The company completed its Initial Public Offering (IPO) on June 16, 2025, raising net proceeds of **$61.5 million**, which management believes are sufficient to meet obligations and fund operations for at least the next twelve months, alleviating previous substantial doubt about its ability to continue as a going concern[33](index=33&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk) - As a result of the IPO, contingencies on certain liabilities were resolved, leading to **$17.5 million** in recorded income, with the settlement involving issuing **1.4 million** shares and paying **$3.3 million** in cash during the quarter[61](index=61&type=chunk) - In September 2024, the company recorded goodwill impairment charges of **$17.0 million** for the Electric Air Mobility segment and **$21.0 million** for the Training segment, triggered by the termination of a planned Business Combination Agreement and delays in securing financing[164](index=164&type=chunk)[165](index=165&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=59&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition, operational results, IPO impact, and liquidity for periods ending June 30, 2025 and 2024 [Overview](index=59&type=section&id=Overview) - AIRO Group operates as a technologically differentiated aerospace, autonomy, and air mobility platform organized into four segments: Drones, Avionics, Training, and Electric Air Mobility[251](index=251&type=chunk)[252](index=252&type=chunk) - The company completed its IPO on June 16, 2025, raising net proceeds of **$61.5 million**, which is expected to fund future operations and growth[259](index=259&type=chunk) [Results of Operations](index=67&type=section&id=Results%20of%20Operations) Q2 2025 vs Q2 2024 Performance | Metric | Q2 2025 ($) | Q2 2024 ($) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $24.6M | $9.8M | +151.0% | | Gross Profit | $15.0M | $5.8M | +160.3% | | General & Administrative Expense | $28.9M | $3.9M | +640.5% | | Net Income (Loss) | $5.9M | ($5.6M) | Turnaround | - The **151%** YoY revenue growth in Q2 2025 was primarily driven by a **$15.0 million** increase in the Drones segment, attributed to successful market entry strategies targeting NATO member countries[296](index=296&type=chunk) - General and administrative expenses increased by **$25.0 million**, largely due to **$13.3 million** in corporate costs contingent upon the IPO, including equity compensation, bonuses, and legal settlement accruals[301](index=301&type=chunk) [Liquidity and Capital Resources](index=71&type=section&id=Liquidity%20and%20Capital%20Resources) - As of June 30, 2025, the company had cash and restricted cash of **$40.5 million** and working capital of **$12.6 million**[309](index=309&type=chunk) - Management believes that the proceeds from the IPO and existing cash are sufficient to fund operations for at least the next 12 months[309](index=309&type=chunk) - For the six months ended June 30, 2025, net cash provided by financing activities was **$49.6 million**, mainly from the IPO proceeds, while net cash used in operating activities was **$30.8 million**[314](index=314&type=chunk)[315](index=315&type=chunk)[317](index=317&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=81&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is foreign currency exchange rate exposure from international operations and sales, subject to global political and economic factors - The company's primary market risk is foreign currency exchange rate risk, as a majority of its sales are to international customers and it has operations in Canada and Denmark[361](index=361&type=chunk) - International sales are subject to numerous political and economic factors, including changes in foreign government budgets, global economic conditions, trade sanctions, and regulatory requirements[361](index=361&type=chunk) [Item 4. Controls and Procedures](index=81&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were ineffective as of June 30, 2025, due to identified material weaknesses in internal financial reporting controls - The CEO and CFO concluded that the company's disclosure controls and procedures were not effective as of June 30, 2025[363](index=363&type=chunk) - The ineffectiveness is attributed to material weaknesses in internal control over financial reporting[363](index=363&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=82&type=section&id=Item%201.%20Legal%20Proceedings) Details several legal actions, including settlements with Robert Perrin and First Citizens Community Bank, and an accrued **$0.8 million** for litigation as of June 30, 2025 - In March 2025, the company agreed to settle a lawsuit with stockholder Robert Perrin for **$0.8 million**, to be paid over six quarters starting in Q3 2025[368](index=368&type=chunk) - A legal action from First Citizens Community Bank (FCCB) was settled, and all payment obligations of approximately **$0.2 million** were fulfilled as of April 30, 2025[367](index=367&type=chunk) - As of June 30, 2025, the company had accrued **$0.8 million** related to litigation[369](index=369&type=chunk) [Item 1A. Risk Factors](index=82&type=section&id=Item%201A.%20Risk%20Factors) Outlines key investment risks including limited operating history, recurring losses, supplier dependency, regulatory hurdles for eVTOL, government contract reliance, and internal control weaknesses - The company has a limited operating history, a history of losses, and expects to incur significant expenses and continuing losses for the foreseeable future[371](index=371&type=chunk)[375](index=375&type=chunk)[377](index=377&type=chunk) - Material weaknesses in internal control over financial reporting have been identified, which could affect the ability to accurately and timely report financial results[373](index=373&type=chunk)[493](index=493&type=chunk) - The business is highly dependent on sales to the U.S. government, particularly the Department of Defense, making it vulnerable to budget cuts, funding changes, or contract terminations[373](index=373&type=chunk)[457](index=457&type=chunk) - The market for eVTOL aircraft is still emerging and unproven, and the company's eVTOL aircraft is still in development and has not yet obtained FAA certification[373](index=373&type=chunk)[428](index=428&type=chunk)[429](index=429&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=126&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities or use of proceeds were reported for the period - None reported for the period[539](index=539&type=chunk) [Item 3. Defaults Upon Senior Securities](index=126&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported for the period - None reported for the period[540](index=540&type=chunk) [Item 4. Mine Safety Disclosures](index=126&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[541](index=541&type=chunk) [Item 5. Other Information](index=126&type=section&id=Item%205.%20Other%20Information) Discloses new employment agreements for key executives and a five-year lease agreement in Phoenix, Arizona, for drone innovation expansion - On August 11, 2025, the company entered into new employment agreements with CEO Joseph Burns (**$700k** base salary, **$350k** IPO bonus), President John Uczekaj (**$500k** base salary), and Executive Chairman Chirinjeev Kathuria (**$400k** base salary, **$100k** IPO bonus)[543](index=543&type=chunk)[544](index=544&type=chunk) - On August 12, 2025, the company entered into a five-year lease in Phoenix, Arizona, to expand its U.S. drone innovation footprint, with total expected rent payments of approximately **$2.3 million**[545](index=545&type=chunk)[546](index=546&type=chunk) [Item 6. Exhibits](index=128&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with Form 10-Q, including corporate governance documents, equity incentive plans, and new agreements - The report includes several exhibits, such as the Amended and Restated Certificate of Incorporation, the 2025 Equity Incentive Plan, and new employment agreements for key executives[547](index=547&type=chunk)