AIRO Group Holdings Inc(AIRO) - 2025 Q3 - Quarterly Results

Financial Performance - Q3 2025 revenue was $6.3 million, a decrease from $23.7 million in the prior-year period, primarily due to shipment timing delays, with approximately $20 million of planned deliveries shifted to Q4 2025[7] - Year-to-date revenue reached $42.6 million, compared to $47.2 million in the same period last year[4] - Gross margin for the year-to-date period was 58.1%, down from 64.7% in the prior-year period[4] - Net loss for Q3 2025 was $(8.0) million, an improvement from $(30.3) million in Q3 2024[4] - Total revenue for the three months ended September 30, 2025, was $6,283,692, a decrease from $23,685,377 in the same period of 2024, representing a decline of approximately 73%[24] - The net loss for the three months ended September 30, 2025, was $7,962,016, compared to a net loss of $30,330,526 in the same period of 2024[24] - Adjusted EBITDA for the three months ended September 30, 2025, was $(8,044,000), compared to $10,877,000 in 2024, indicating a significant decline[26] - The company reported a net loss margin of (126.7)% for the three months ended September 30, 2025, compared to (128.1)% in 2024[26] Revenue and Growth Initiatives - The company completed a follow-on public offering raising $89.4 million, enhancing liquidity for growth initiatives[4] - Full-year 2025 revenue is expected to exceed 2024 revenue of $86.9 million, subject to supplier deliveries and customer acceptance[13] - Training revenue increased by $0.9 million to $1.6 million in Q3 2025, driven by higher activity under multiple IDIQ contracts[8] Research and Development - Research and development expenses increased to $4,124,171 for the three months ended September 30, 2025, compared to $3,258,612 in 2024, reflecting a rise of approximately 26%[24] Assets and Liabilities - Total assets increased to $774,576,211 as of September 30, 2025, up from $700,998,787 at the end of 2024, representing a growth of approximately 10.5%[22] - Total liabilities decreased to $35,029,065 as of September 30, 2025, down from $152,269,358 at the end of 2024, a reduction of about 77%[22] - Cash and cash equivalents increased to $83,485,824 as of September 30, 2025, compared to $20,740,590 at the end of 2024, reflecting a growth of approximately 302%[22] Strategic Partnerships and Contracts - A joint venture with Nord Drone Group was signed to accelerate deployment of UAS across the U.S., Ukraine, and NATO markets, with Nord Drone producing approximately 4,000 drones per month[4] - AIRO's Sky-Watch received a $4.5 million award to develop advanced Counter Electronic Warfare capabilities for integration across its UAS platforms[4] Manufacturing and Production - Plans for a new U.S. manufacturing and engineering site were announced to scale RQ-35 Heidrun production and accelerate next-generation drone development[4] Impairment - Goodwill impairment was recorded at $37,994,000 for the three months ended September 30, 2024, with no impairment reported in 2025[24]