AIRO Group Holdings Inc(AIRO) - 2025 Q4 - Annual Results

Revenue Performance - Full year 2025 revenue reached $90.9 million, a 3.5% increase from $86.9 million in 2024[1] - Fourth quarter 2025 revenue was $48.3 million, up 21.6% from $39.7 million in Q4 2024, and up significantly from $6.3 million in Q3 2025[1][5] - Total revenue for the year ended December 31, 2025, was $90,907,000, representing an increase of 3.4% from $86,935,000 in 2024[31] - For the three months ended December 31, 2025, revenue was $48,278,000, an increase from $39,729,000 in the same period of 2024[31] Profitability - Gross profit for the full year was $54.4 million, with a gross margin of 59.9%, down from 67.1% in 2024[12][13] - Gross profit decreased to $54,415,000 in 2025, down 6.5% from $58,317,000 in 2024[31] - Operating loss for the year was $(28.8) million, compared to $(17.4) million in 2024[13] - Net loss for 2025 was $(4.1) million, an improvement from $(38.7) million in 2024[14] - Net loss for the year ended December 31, 2025, was $4,104,000, a significant improvement compared to a net loss of $38,694,000 in 2024[31] - The company reported a net loss margin of (4.5)% for the year ended December 31, 2025, compared to (44.5)% in 2024, indicating improved profitability[33] Expenses and Costs - Total operating expenses increased to $83,180,000 in 2025, up 9.3% from $75,750,000 in 2024, primarily due to higher research and development costs[31] - Adjusted EBITDA for 2025 was $5.7 million, down from $33.7 million in 2024[16] - Adjusted EBITDA for the year was $5,658,000, down from $33,690,000 in 2024, reflecting changes in operational efficiency[33] Financial Position - Cash position as of December 31, 2025, was $74.4 million[17] - Total current assets increased to $106,476,000 in 2025, compared to $42,595,000 in 2024, indicating improved liquidity[28] - Total liabilities decreased to $34,947,000 in 2025 from $152,269,000 in 2024, showing a significant reduction in financial obligations[29] - Cash reserves rose to $74,358,000 in 2025, up from $20,741,000 in 2024, enhancing the company's financial stability[28] Future Outlook - The company expects 2026 revenue growth of 15% to 25% year-over-year, supported by a backlog of approximately $150 million as of March 31, 2026[18][19] - The company completed its first U.S.-manufactured RQ-35 Heidrun ISR drones and is targeting Blue UAS certification in the first half of 2026[11]