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]