AIRO · AIRO Group Holdings, Inc. Common Stock

AIRO's Q4 and full year 2025 results highlighted strong top-line momentum driven by its Drones segment, which represented 87% of full year 2025 revenue. The 22% year-over-year Q4 revenue increase was fueled by demand for the RQ-35 Heidrun ISR drone platform, with $20 million of shifted revenue contributing to sequential growth from Q3 2025's $6.3 million revenue. Gross margin compression in both periods reflected product mix shifts, investment in upgraded system capabilities, business development and team expansion, while operating losses for the full year stemmed from investments in engineering, manufacturing capacity expansion and public company infrastructure. Management noted key operational milestones including completion of the first U.S.-manufactured RQ-35 drones, ongoing progress toward Blue UAS certification targeted for H1 2026, a joint venture with Nord Drone Group, and a proposed interceptor drone JV with Bullet expected to close in the coming quarter. The 2026 revenue guidance of 15-25% year-over-year growth is supported by the $150 million Drone segment backlog as of March 31, 2026, expanded manufacturing capacity, and demand from NATO-aligned defense customers. The company also reported a strong cash position of $74.4 million as of December 31, 2025, supporting ongoing investment in product development and strategic partnerships.