AeroVironment(AVAV) - 2025 Q3 - Quarterly Results

Financial Performance - Revenue for the third quarter of fiscal 2025 was $167.6 million, a decrease of 10% compared to $186.6 million in the same quarter of fiscal 2024[3] - The company reported a net loss of $(1.8) million, or $(0.06) per diluted share, compared to net income of $13.9 million, or $0.50 per diluted share, in the prior-year period[7] - Non-GAAP adjusted EBITDA for the third quarter was $21.8 million, down from $28.8 million in the same quarter of fiscal 2024[8] - The gross margin for the third quarter was $63.2 million, a decrease of 6% from $67.3 million in the prior year, with a gross margin percentage increase to 38% from 36%[4] - Total revenue for the three months ended January 25, 2025, was $167.636 million, a decrease of 10.1% compared to $186.578 million for the same period in 2024[26] - Product sales revenue decreased to $139.753 million from $155.923 million, representing a decline of 10.4% year-over-year[26] - Gross margin for the three months ended January 25, 2025, was $63.199 million, down from $67.287 million, reflecting a gross margin percentage of 37.7%[26] - Net loss for the three months ended January 25, 2025, was $1.754 million, compared to net income of $13.885 million for the same period in 2024[26] - Adjusted EBITDA for the three months ended January 25, 2025, was $21.8 million, down from $28.8 million in the prior year, representing a decrease of 24.4%[36] - EBITDA (non-GAAP) for the nine months ended January 25, 2025, was $56.0 million, down 35.2% from $86.4 million for the same period last year[36] Backlog and Orders - The funded backlog reached a record $763.5 million as of January 25, 2025, up from $400.2 million as of April 30, 2024[9] - Record orders for Switchblade and Jump-20 products contributed to the backlog expansion[2] Future Outlook - The company expects full-year fiscal 2025 revenue to be between $780 million and $795 million, with non-GAAP adjusted EBITDA between $135 million and $142 million[10] - Significant progress was made towards the acquisition of BlueHalo, expected to close in the second quarter of calendar year 2025[2] Operational Developments - The company announced a new manufacturing facility in Utah, which will more than double Switchblade production capacity[2] - The third quarter was impacted by high winds and fires in Southern California, affecting revenue generation[3] Expenses and Cash Flow - Research and development expenses increased to $22.498 million from $25.127 million, indicating a focus on innovation despite overall revenue decline[26] - Cash and cash equivalents at the end of the period were $47.000 million, down from $73.301 million at the beginning of the period[30] - The company reported a net cash used in operating activities of $1.054 million for the nine months ended January 25, 2025, compared to cash provided of $26.965 million for the same period in 2024[30] Assets and Liabilities - Total current assets increased to $543.886 million from $515.581 million, showing a positive trend in asset management[28] - The company’s total assets increased to $1,048.143 million as of January 25, 2025, compared to $1,015.860 million as of April 30, 2024[28] Shareholder Information - The weighted-average shares outstanding for diluted earnings per share were 28,171,089 for the nine months ended January 25, 2025[26] Other Financial Metrics - Interest expense for the nine months ended January 25, 2025, was $1.2 million, a decrease of 70.7% compared to $4.1 million for the same period last year[36] - Stock-based compensation for the three months ended January 25, 2025, was $5.4 million, an increase of 28.6% from $4.2 million in the same period last year[36] - Depreciation and amortization for the nine months ended January 25, 2025, was $27.1 million, an increase of 8.4% compared to $25.0 million for the same period last year[36] - Acquisition-related expenses for the three months ended January 25, 2025, were $10.0 million, compared to $(0.1) million in the same period last year[36] - The company reported a net benefit from provision for income taxes of $(0.6) million for the three months ended January 25, 2025, compared to a provision of $1.3 million in the same period last year[36] Non-GAAP Measures - The company emphasizes that non-GAAP measures provide useful information for understanding long-term profitability trends and comparing results with peers[37] - Adjusted EBITDA is defined as net income before interest, taxes, and depreciation, adjusted for non-cash items, and is frequently used for evaluating performance in the industry[39]