{"success":true,"data":{"pressRelease":{"id":"34547","rtpr_id":"nBw3Dnfkza","ticker":"AIRO","exchange":"NASDAQ","all_tickers":["AIRO"],"title":"AIRO Reports First Quarter 2026 Results","author":"Business Wire","published_at":"2026-05-14T10:29:00.093Z","article_body":"AIRO Reports First Quarter 2026 Results\n\nAIRO Group Holdings, Inc. (NASDAQ: AIRO) (“AIRO” or the “Company”), a\nglobal leader in advanced aerospace and defense technologies, today announced\nfinancial results for the first quarter ended March 31, 2026.\n\n“Following a foundational 2025, we continued to take important steps in the\nfirst quarter to strengthen our infrastructure and strategic focus needed to\nscale AIRO into a leading, integrated aerospace and defense platform. As a\nnewly public company, we are prioritizing disciplined capital deployment,\naligning our investments with what we believe to be the highest-return\nopportunities across defense mobility, security, and training. While first\nquarter results reflect expected variability and investment timing, we believe\nthis represents the low point for the year and positions us for accelerated\ngrowth as we execute against a robust pipeline of demand. And, we are\nreiterating our full‑year 2026 revenue growth guidance of 15% to 25%,”\nstated Dr. Chirinjeev Kathuria, Executive Chairman.\n\n“We delivered a solid start to 2026, with results in line with our\nexpectations and reinforcing our confidence in our full-year outlook. During\nthe quarter, we refined our strategic focus to further align AIRO with the\ngrowing drone market, centered on delivering mission‑ready, AI‑enabled\nunmanned systems to U.S. and allied defense customers. With growing demand, a\nbacklog that continues to build, and key milestones ahead, including Blue UAS\ncertification and the introduction of new products, we believe we are well\npositioned for a strong rest of the year and meaningful long-term value\ncreation,” said Joe Burns, Chief Executive Officer of AIRO.\n\nFirst Quarter 2026 Financial Highlights\n\n\n * Revenue: $8.9 million, compared to $11.8 million in the first quarter of 2025.\n\n * Gross profit: $2.4 million, representing gross margin of 26.6%, compared to\n$6.9 million, representing gross margin of 58.8% in the prior year period.\n\n * Operating loss: $(17.2) million, compared to $(3.1) million in the first\nquarter of 2025.\n\n * Net loss: $(15.5) million, compared to $(2.0) million in the first quarter of\n2025.\n\n * EBITDA: $(14.3) million, compared to $2.7 million in the first quarter of\n2025.\n\n * Adjusted EBITDA: $(12.8) million, compared to $0.1 million in the first\nquarter of 2025.\n\nFirst Quarter 2026 & Recent Operational Highlights\n\n\n * Advanced AI-enabled drone capabilities with launch of full-stack RQ-35\nvariant. AIRO began marketing and selling an AI-enabled version of its\nflagship RQ-35 Heidrun, enhancing performance in GPS-denied environments and\nreinforcing its leadership in next-generation ISR systems.\n\n * Shifting focus toward cargo and ISR markets while expanding medium-lift drone\nportfolio. AIRO is prioritizing development of a large cargo drone platform\nand ISR variant, rather than passenger drones, built on a shared architecture\nto enable lower-cost development, reduced regulatory complexity, and more\npredictable, diversified revenue. In parallel, the Company unveiled the JX250\nand JC250 aircraft, projected to achieve up to 1,000 miles of range and up to\n16 hours of endurance in ISR configurations, which would significantly expand\noperational reach and AIRO’s addressable market; based on current progress,\nfirst flight is targeted this year, with commercialization and operational\ndeployment expected to begin in 2027.\n\n * Optimizing portfolio to sharpen focus on the drone market; evaluating\nstrategic alternatives for Training segment. AIRO is sharpening its focus on\nthe drone market, where the Company sees the most significant and immediate\nopportunity while positioning for long-term growth. As part of this effort,\nthe Company is evaluating the strategic fit and long-term role of its Training\nsegment. The Training segment remains a valuable asset with significant\nlong-term opportunity, but the segment is capital-intensive and often requires\nmeaningful ongoing investment.\n\n * Scaled manufacturing capacity to support future demand growth. Continued\nmodernization of the Støvring, Denmark facility, increasing production\ncapacity to approximately 30% above current backlog levels and improving\noperational efficiency.\n\n * Sustained backlog strength and stable near‑term revenue visibility. Drone\nbacklog exceeded $150 million as of April 30, 2026, consistent with March 31,\n2026 levels, providing strong visibility with the majority expected to convert\nto revenue over the next 12 months.\n\nFirst Quarter 2026 Financial Results\n\nRevenue for the first quarter of 2026 was $8.9 million, compared to $11.8\nmillion in the first quarter of 2025. The year-over-year decrease was in line\nwith internal expectations and reflects normal seasonality, timing of customer\nshipments, and a higher mix of upgrade-related activity during the period.\n\nGross profit for the first quarter was $2.4 million, representing a gross\nmargin of 26.6%, compared to $6.9 million and 58.8% in the prior-year period.\nThe change in margin was primarily driven by product mix, with a greater\ncontribution from lower-margin upgrade programs versus full system deliveries.\nThe Company expects margins to improve over the balance of the year as drone\ndeliveries resume as the primary revenue driver.\n\nOperating loss for the quarter was $(17.2) million, compared to $(3.1) million\nin the first quarter of 2025. The increase in operating loss reflects lower\nrevenue, higher cost of sales, and continued investment in engineering,\nproduction scaling, and public company infrastructure following the\nCompany’s initial public offering (“IPO”).\n\nNet loss for the first quarter was $(15.5) million, compared to $(2.0) million\nin the prior-year quarter, reflecting the same factors impacting operating\nperformance.\n\nEBITDA was $(14.3) million, compared to $2.7 million in the prior-year period.\nAdjusted EBITDA was $(12.8) million, compared to $0.1 million in the\nprior-year period, reflecting the impact of product mix dynamics and continued\ninvestments to support long-term growth.\n\nAs of March 31, 2026, cash totaled $54.2 million, with approximately $1.2\nmillion in total debt, providing the Company with financial flexibility to\nsupport ongoing strategic initiatives.\n\nDrone backlog totaled more than $150 million as of April 30, 2026, consistent\nwith March 31, 2026. The Company expects the majority of this backlog to\nconvert to revenue over the next 12 months, providing strong visibility into\nfuture growth. Management continues to view backlog conservatively and\nbelieves its expanding pipeline provides additional upside beyond current\nbacklog levels.\n\nEBITDA and Adjusted EBITDA are non-GAAP financial measures. See “Non-GAAP\nFinancial Measures and Backlog” below for the definition of each non-GAAP\nfinancial measure and the tables that follow for a reconciliation of each of\nthese non-GAAP measures to net (loss) income, the most comparable GAAP\nmeasure.\n\nOutlook\n\nThe Company reiterates its full-year 2026 revenue growth expectations of 15%\nto 25% year over year. As of April 30, 2026, drone backlog exceeded $150\nmillion, and the Company expects the majority of this to convert over the next\n12 months.\n\nGrowth in 2026 is expected to be supported by increased drone system\ndeliveries, expanded manufacturing capacity, continued international demand\nfrom NATO-aligned defense customers and progress across strategic partnerships\nand new platform development.\n\nAs is typical for businesses serving government and defense customers, revenue\nrecognition may vary meaningfully across quarters depending on contract\ntiming, production schedules and delivery milestones.\n\nAdditionally, the Company is introducing full-year 2026 Adjusted EBITDA\nguidance in the negative mid‑ to high‑teens dollar range, reflecting\nstrategic investments across the business to drive organic growth.\n\nOur financial outlook is based on assumptions that we believe to be reasonable\nas of the date of this release, but may be materially affected by many\nfactors, as discussed below under “Forward Looking Statements.” Actual\nresults may vary from the guidance and the variations may be material. We\nundertake no intent or obligation to publicly update or revise this outlook,\nwhether as a result of new information, future events or otherwise, except as\nrequired by law.\n\nAIRO is unable to include a reconciliation of forward-looking Adjusted EBITDA\nto net loss, the most directly comparable GAAP measure, without unreasonable\neffort due to the high variability with respect to the impact of items such as\ndepreciation and amortization, stock-based compensation expense and other\nitems that are excluded from Adjusted EBITDA.\n\nConference Call and Webcast\n\nAIRO will host a conference call to discuss its first quarter 2026 results and\nbusiness outlook on May 14, 2026, at 8:00 am ET. Participants can join the\ncall by dialing 1 (800)-715-9871 (US) or 1 (646)-307-1963 (international) and\nenter the access code 7911023. To listen to the live audio webcast and\nQ&A, visit the Event & Presentations section of AIRO’s investor\nrelations website at AIRO Group Holdings, Inc. - Events & Presentations\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Finvestor.theairogroup.com%2Fevents-and-presentations%2Fdefault.aspx&esheet=54536023&newsitemid=20260514163705&lan=en-US&anchor=AIRO+Group+Holdings%2C+Inc.+-+Events+%26amp%3B+Presentations&index=1&md5=1d5797aabf1f45fe92838cc7699f52a2)\n, or by clicking on the link HERE\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fevents.q4inc.com%2Fattendee%2F405047419&esheet=54536023&newsitemid=20260514163705&lan=en-US&anchor=HERE&index=2&md5=93b36768bf953ddef730a4144a187dee)\n. To avoid delays, it is recommended that participants dial into the\nconference call 15 minutes ahead of the scheduled start time.\n\nA replay of the webcast will be available on the website within 24 hours after\nthe call. The earnings press release and related materials will also be\navailable on AIRO’s investor relations website at\nhttps://investor.theairogroup.com/\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Finvestor.theairogroup.com%2F&esheet=54536023&newsitemid=20260514163705&lan=en-US&anchor=https%3A%2F%2Finvestor.theairogroup.com%2F&index=3&md5=e2ed43fb404c508aeff80432a8c02949)\n.\n\nAbout AIRO\n\nAIRO Group Holdings is a next-generation aerospace and defense platform\ndriving innovation across defense and commercial markets. Headquartered in\nMcLean, VA, with operations in the U.S., Canada, and Denmark, AIRO combines a\nglobal reach with deep technical expertise.\n\nThrough a vertically integrated model, AIRO delivers mission-critical\nsolutions centered on its drone platforms, leveraging advanced avionics,\nintegrated training capabilities, and embedded autonomy across systems.\n\nForward-Looking Statements\n\nThe statements contained in this press release that are not historical facts\nare forward-looking statements. You can identify forward-looking statements\nbecause they contain words such as “believes,” “expects,” “may,”\n“will,” “should,” “seeks,” “intends,” “plans,”\n“estimates,” or “anticipates,” or similar expressions which concern\nour strategy, plans, projections or intentions. These forward-looking\nstatements may be included throughout this press release and include, but are\nnot limited to, statements relating to AIRO’s expectations around its\nstrategic initiatives and growth trajectory, statements relating to estimates\nand forecasts of financial and performance metrics, including full year 2026\noutlook, the timing of Blue UAS certification and impact on procurement\nopportunities, the amount and timing of Drone backlog converting to revenue,\nanticipated product performance and capabilities, the optimization of its\nAIRO’s portfolio and evaluation of the strategic fit and long-term role of\nits Training segment, the sufficiency of AIRO’s cash and restricted cash to\nsupport ongoing strategic initiatives, the demand for, market acceptance of\nand opportunity of AIRO’s products and services, AIRO’s ability to enter\ninto strategic partnerships and the impacts of such partnerships and other\nstatements that are not historical fact. By their nature, forward-looking\nstatements are not statements of historical fact or guarantees of future\nperformance and are subject to risks, uncertainties, assumptions or changes in\ncircumstances that are difficult to predict or quantify, including those\ndescribed in the section titled “Risk Factors” in AIRO’s Annual Report\non Form 10-K for the year ended December 31, 2025 filed with the Securities\nand Exchange Commission (“SEC”) on March 31, 2026 as well as other filings\nAIRO may make with the SEC in the future. Forward-looking statements represent\nAIRO’s management’s beliefs and assumptions only as of the date such\nstatements are made. AIRO undertakes no obligation to update any\nforward-looking statements made in this press release to reflect events or\ncircumstances after the date of this press release or to reflect new\ninformation or the occurrence of unanticipated events, except as required by\nlaw.\n\nNon-GAAP Financial Measures and Backlog\n\nTo supplement its condensed consolidated financial statements prepared and\npresented in accordance with GAAP, AIRO uses EBITDA, Adjusted EBITDA and\nAdjusted EBITDA margin, as described below, to facilitate analysis of its\nfinancial and business trends and for internal planning and forecasting\npurposes. AIRO defines (1) EBITDA as net loss before interest (income)\nexpense, income tax (benefit) expense and depreciation and amortization, (2)\nAdjusted EBITDA as net loss before interest (income) expense, income tax\n(benefit) expense, depreciation and amortization, stock-based compensation and\ncontingent consideration fair value adjustments and (3) Adjusted EBITDA margin\nas Adjusted EBITDA divided by revenue. The above items are excluded from\nEBITDA and Adjusted EBITDA because these items are either non-cash in nature,\nor because the amount and timing of these items is unpredictable, or because\nthey are not driven by core results of operations, thereby rendering\ncomparisons with prior periods and competitors less meaningful. AIRO believes\nEBITDA, Adjusted EBITDA and Adjusted EBITDA margin provide useful information\nto investors and others in understanding and evaluating its results of\noperations, as well as provides useful measures for period-to-period\ncomparisons of its business performance. Moreover, Adjusted EBITDA is a key\nmeasurement used by AIRO management internally to make operating decisions,\nincluding those related to analyzing operating expenses, evaluating\nperformance and performing strategic planning and annual budgeting.\n\nThere are limitations associated with the use of non-GAAP financial measures.\nThese non-GAAP financial measures should not be considered as alternatives to\nperformance measures derived in accordance with GAAP. AIRO’s presentation of\nthese non-GAAP financial measures should not be construed to imply that its\nfuture results will be unaffected by items that are excluded from these\nmetrics. In addition, AIRO’s definitions of these non-GAAP financial\nmeasures may be different from similarly titled non-GAAP measures used by\nother companies. These non-GAAP financial measures have limitations as an\nanalytical tool and you should not consider any of these non-GAAP financial\nmeasures in isolation or as a substitute for analysis of our results as\nreported under GAAP. See the tables that follow for a reconciliation of EBITDA\nand Adjusted EBITDA to net income (loss) and Adjusted EBITDA Margin to net\nincome (loss) margin, the most directly comparable financial measures stated\nin accordance with GAAP.\n\nDrones segment backlog represents unfilled orders for which we have purchase\norders or other definitive agreements with customers outside of the United\nStates, as well as orders for which NATO countries have allocated funds but\nfor which no definitive agreement has been executed but is expected once\nthrough the administrative process, in each case against which we expect to\nperform and recognize the majority of revenue in the next 12 months. Drones\nsegment backlog amount was translated to U.S. dollars using applicable\nexchange rates as of market close on April 30, 2026, and may increase or\ndecrease based on fluctuations in foreign exchange rates.\n AIRO Group Holdings, Inc.                                                                               \n \n                                                                                                       \n \nConsolidated Balance Sheets                                                                            \n \n                                                                                                       \n \n(unaudited)                                                                                            \n                                                                                                         \n (Amounts in thousands)                            March 31, 2026              December 31, 2025         \n ASSETS                                                                                                  \n Current assets:                                                                                         \n Cash                                              $      54,227               $       74,358            \n Restricted cash                                          189                          193               \n Accounts receivable, net                                 8,098                        12,385            \n Related party receivables                                74                           393               \n Inventory                                                22,507                       11,639            \n Prepaid expenses and other current assets                9,513                        7,508             \n Total current assets                                     94,608                       106,476           \n Property and equipment, net                              9,917                        8,986             \n Right-of-use operating lease assets                      3,032                        3,278             \n Goodwill                                                 569,284                      571,653           \n Intangible assets, net                                   82,064                       83,487            \n Other assets                                             210                          259               \n Total assets                                      $      759,115              $       774,139           \n                                                                                                         \n LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                    \n                                                                                                         \n Current liabilities:                                                                                    \n Accounts payable                                  $      10,661               $       6,599             \n Related party payables                                   7,807                        8,892             \n Accrued expenses                                         8,475                        7,624             \n Operating lease liabilities, current                     887                          902               \n Deferred revenue                                         3,557                        4,497             \n Related party borrowings                                 5                            1,161             \n Current maturities of debt                               740                          1,190             \n Total current liabilities                                32,132                       30,865            \n Long-term debt, net of current maturities                500                          500               \n Deferred tax liability                                   1,046                        1,046             \n Long-term deferred revenue                               16                           8                 \n Operating lease liabilities, noncurrent                  2,224                        2,478             \n Other long-term liabilities                              800                          50                \n Total liabilities                                        36,718                       34,947            \n                                                                                                         \n Stockholders’ equity:                                                                                   \n Common stock                                             -                            -                 \n Additional paid-in capital                               964,524                      963,022           \n Treasury shares                                          (21,220   )                  (21,220   )       \n Accumulated other comprehensive income                   5,103                        7,947             \n Accumulated deficit                                      (226,010  )                  (210,557  )       \n Total stockholders’ equity                               722,397                      739,192           \n Total liabilities and stockholders’ equity        $      759,115              $       774,139           \n\n AIRO Group Holdings, Inc.                                                                                                             \n \n                                                                                                                                     \n \nConsolidated Statements of Operations                                                                                                \n \n                                                                                                                                     \n \n(unaudited)                                                                                                                          \n                                                                                                                                       \n                                                                                   Three months ended March 31,                        \n (Amounts in thousands, except per share amounts)                                  2026                          2025                  \n Revenue                                                                           $      8,901                  $      11,795         \n Cost of revenue                                                                          6,536                         4,862          \n Gross profit                                                                             2,365                         6,933          \n                                                                                                                                       \n Operating expenses:                                                                                                                   \n Research and development                                                                 6,704                         3,666          \n Sales and marketing                                                                      1,977                         1,433          \n General and administrative                                                               10,842                        4,915          \n Total operating expenses                                                                 19,523                        10,014         \n Loss from operations                                                                     (17,158  )                    (3,081  )      \n Other income (expense):                                                                                                               \n Interest income (expense), net                                                           376                           (1,267  )      \n Other (expense) income, net                                                              (316     )                    2,662          \n Total other income (expense)                                                             60                            1,395          \n Loss before income tax benefit (expense)                                                 (17,098  )                    (1,686  )      \n Income tax benefit (expense)                                                             1,645                         (287    )      \n Net loss                                                                          $      (15,453  )             $      (1,973  )      \n                                                                                                                                       \n Net loss per share – basic and diluted                                            $      (0.49    )             $      (0.12   )      \n                                                                                                                                       \n Weighted-average number of shares of common stock used in computing net loss             31,395                        16,387         \n per share, basic and diluted                                                                                                          \n\n AIRO Group Holdings, Inc.                                                                      \n \n                                                                                              \n \nNon-GAAP Reconciliations                                                                      \n \n                                                                                              \n \n(UNAUDITED)                                                                                   \n                                                                                                \n                                                      Three Months                              \n                                                      \nEnded March 31,                          \n (in thousands, except percentages)                   2026                    2025              \n Net loss                                             $    (15,453  )         $    (1,973  )    \n Depreciation and amortization                             3,130                   3,138        \n Income tax (benefit) expense                              (1,645   )              287          \n Interest (income) expense, net                            (376     )              1,267        \n EBITDA                                                    (14,344  )              2,719        \n Stock-based compensation                                  1,502                   125          \n Contingent consideration fair value adjustments           -                       (2,738  )    \n Adjusted EBITDA                                      $    (12,842  )         $    106          \n                                                                                                \n Net loss margin                                           (173.6   )%             (16.7   )%   \n Adjusted EBITDA margin                                    N.m.                    0.9     %    \n                                                                                                \n N.m. – Not meaningful                                                                          \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260514163705/en/\n(https://www.businesswire.com/news/home/20260514163705/en/)\n\nInvestor Relations Contact \n\nJack Senft\n\nAIRO Group Holdings, Inc.\n\nInvestorRelations@theairogroup.com \n(mailto:InvestorRelations@theairogroup.com) \n\n\nMedia Contact \n\nDan Johnson\n\nAIRO Group Holdings, Inc.\n\nmedia@theairogroup.com (mailto:media@theairogroup.com)\n\n\nCopyright Business Wire 2026","article_body_html":"","raw_payload":{"data":{"id":"nBw3Dnfkza","title":"AIRO Reports First Quarter 2026 Results","author":"Business Wire","ticker":"AIRO","created":"2026-05-14T10:29:00.093Z","tickers":["AIRO"],"exchange":"NASDAQ","article_body":"AIRO Reports First Quarter 2026 Results\n\nAIRO Group Holdings, Inc. (NASDAQ: AIRO) (“AIRO” or the “Company”), a\nglobal leader in advanced aerospace and defense technologies, today announced\nfinancial results for the first quarter ended March 31, 2026.\n\n“Following a foundational 2025, we continued to take important steps in the\nfirst quarter to strengthen our infrastructure and strategic focus needed to\nscale AIRO into a leading, integrated aerospace and defense platform. As a\nnewly public company, we are prioritizing disciplined capital deployment,\naligning our investments with what we believe to be the highest-return\nopportunities across defense mobility, security, and training. While first\nquarter results reflect expected variability and investment timing, we believe\nthis represents the low point for the year and positions us for accelerated\ngrowth as we execute against a robust pipeline of demand. And, we are\nreiterating our full‑year 2026 revenue growth guidance of 15% to 25%,”\nstated Dr. Chirinjeev Kathuria, Executive Chairman.\n\n“We delivered a solid start to 2026, with results in line with our\nexpectations and reinforcing our confidence in our full-year outlook. During\nthe quarter, we refined our strategic focus to further align AIRO with the\ngrowing drone market, centered on delivering mission‑ready, AI‑enabled\nunmanned systems to U.S. and allied defense customers. With growing demand, a\nbacklog that continues to build, and key milestones ahead, including Blue UAS\ncertification and the introduction of new products, we believe we are well\npositioned for a strong rest of the year and meaningful long-term value\ncreation,” said Joe Burns, Chief Executive Officer of AIRO.\n\nFirst Quarter 2026 Financial Highlights\n\n\n * Revenue: $8.9 million, compared to $11.8 million in the first quarter of 2025.\n\n * Gross profit: $2.4 million, representing gross margin of 26.6%, compared to\n$6.9 million, representing gross margin of 58.8% in the prior year period.\n\n * Operating loss: $(17.2) million, compared to $(3.1) million in the first\nquarter of 2025.\n\n * Net loss: $(15.5) million, compared to $(2.0) million in the first quarter of\n2025.\n\n * EBITDA: $(14.3) million, compared to $2.7 million in the first quarter of\n2025.\n\n * Adjusted EBITDA: $(12.8) million, compared to $0.1 million in the first\nquarter of 2025.\n\nFirst Quarter 2026 & Recent Operational Highlights\n\n\n * Advanced AI-enabled drone capabilities with launch of full-stack RQ-35\nvariant. AIRO began marketing and selling an AI-enabled version of its\nflagship RQ-35 Heidrun, enhancing performance in GPS-denied environments and\nreinforcing its leadership in next-generation ISR systems.\n\n * Shifting focus toward cargo and ISR markets while expanding medium-lift drone\nportfolio. AIRO is prioritizing development of a large cargo drone platform\nand ISR variant, rather than passenger drones, built on a shared architecture\nto enable lower-cost development, reduced regulatory complexity, and more\npredictable, diversified revenue. In parallel, the Company unveiled the JX250\nand JC250 aircraft, projected to achieve up to 1,000 miles of range and up to\n16 hours of endurance in ISR configurations, which would significantly expand\noperational reach and AIRO’s addressable market; based on current progress,\nfirst flight is targeted this year, with commercialization and operational\ndeployment expected to begin in 2027.\n\n * Optimizing portfolio to sharpen focus on the drone market; evaluating\nstrategic alternatives for Training segment. AIRO is sharpening its focus on\nthe drone market, where the Company sees the most significant and immediate\nopportunity while positioning for long-term growth. As part of this effort,\nthe Company is evaluating the strategic fit and long-term role of its Training\nsegment. The Training segment remains a valuable asset with significant\nlong-term opportunity, but the segment is capital-intensive and often requires\nmeaningful ongoing investment.\n\n * Scaled manufacturing capacity to support future demand growth. Continued\nmodernization of the Støvring, Denmark facility, increasing production\ncapacity to approximately 30% above current backlog levels and improving\noperational efficiency.\n\n * Sustained backlog strength and stable near‑term revenue visibility. Drone\nbacklog exceeded $150 million as of April 30, 2026, consistent with March 31,\n2026 levels, providing strong visibility with the majority expected to convert\nto revenue over the next 12 months.\n\nFirst Quarter 2026 Financial Results\n\nRevenue for the first quarter of 2026 was $8.9 million, compared to $11.8\nmillion in the first quarter of 2025. The year-over-year decrease was in line\nwith internal expectations and reflects normal seasonality, timing of customer\nshipments, and a higher mix of upgrade-related activity during the period.\n\nGross profit for the first quarter was $2.4 million, representing a gross\nmargin of 26.6%, compared to $6.9 million and 58.8% in the prior-year period.\nThe change in margin was primarily driven by product mix, with a greater\ncontribution from lower-margin upgrade programs versus full system deliveries.\nThe Company expects margins to improve over the balance of the year as drone\ndeliveries resume as the primary revenue driver.\n\nOperating loss for the quarter was $(17.2) million, compared to $(3.1) million\nin the first quarter of 2025. The increase in operating loss reflects lower\nrevenue, higher cost of sales, and continued investment in engineering,\nproduction scaling, and public company infrastructure following the\nCompany’s initial public offering (“IPO”).\n\nNet loss for the first quarter was $(15.5) million, compared to $(2.0) million\nin the prior-year quarter, reflecting the same factors impacting operating\nperformance.\n\nEBITDA was $(14.3) million, compared to $2.7 million in the prior-year period.\nAdjusted EBITDA was $(12.8) million, compared to $0.1 million in the\nprior-year period, reflecting the impact of product mix dynamics and continued\ninvestments to support long-term growth.\n\nAs of March 31, 2026, cash totaled $54.2 million, with approximately $1.2\nmillion in total debt, providing the Company with financial flexibility to\nsupport ongoing strategic initiatives.\n\nDrone backlog totaled more than $150 million as of April 30, 2026, consistent\nwith March 31, 2026. The Company expects the majority of this backlog to\nconvert to revenue over the next 12 months, providing strong visibility into\nfuture growth. Management continues to view backlog conservatively and\nbelieves its expanding pipeline provides additional upside beyond current\nbacklog levels.\n\nEBITDA and Adjusted EBITDA are non-GAAP financial measures. See “Non-GAAP\nFinancial Measures and Backlog” below for the definition of each non-GAAP\nfinancial measure and the tables that follow for a reconciliation of each of\nthese non-GAAP measures to net (loss) income, the most comparable GAAP\nmeasure.\n\nOutlook\n\nThe Company reiterates its full-year 2026 revenue growth expectations of 15%\nto 25% year over year. As of April 30, 2026, drone backlog exceeded $150\nmillion, and the Company expects the majority of this to convert over the next\n12 months.\n\nGrowth in 2026 is expected to be supported by increased drone system\ndeliveries, expanded manufacturing capacity, continued international demand\nfrom NATO-aligned defense customers and progress across strategic partnerships\nand new platform development.\n\nAs is typical for businesses serving government and defense customers, revenue\nrecognition may vary meaningfully across quarters depending on contract\ntiming, production schedules and delivery milestones.\n\nAdditionally, the Company is introducing full-year 2026 Adjusted EBITDA\nguidance in the negative mid‑ to high‑teens dollar range, reflecting\nstrategic investments across the business to drive organic growth.\n\nOur financial outlook is based on assumptions that we believe to be reasonable\nas of the date of this release, but may be materially affected by many\nfactors, as discussed below under “Forward Looking Statements.” Actual\nresults may vary from the guidance and the variations may be material. We\nundertake no intent or obligation to publicly update or revise this outlook,\nwhether as a result of new information, future events or otherwise, except as\nrequired by law.\n\nAIRO is unable to include a reconciliation of forward-looking Adjusted EBITDA\nto net loss, the most directly comparable GAAP measure, without unreasonable\neffort due to the high variability with respect to the impact of items such as\ndepreciation and amortization, stock-based compensation expense and other\nitems that are excluded from Adjusted EBITDA.\n\nConference Call and Webcast\n\nAIRO will host a conference call to discuss its first quarter 2026 results and\nbusiness outlook on May 14, 2026, at 8:00 am ET. Participants can join the\ncall by dialing 1 (800)-715-9871 (US) or 1 (646)-307-1963 (international) and\nenter the access code 7911023. To listen to the live audio webcast and\nQ&A, visit the Event & Presentations section of AIRO’s investor\nrelations website at AIRO Group Holdings, Inc. - Events & Presentations\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Finvestor.theairogroup.com%2Fevents-and-presentations%2Fdefault.aspx&esheet=54536023&newsitemid=20260514163705&lan=en-US&anchor=AIRO+Group+Holdings%2C+Inc.+-+Events+%26amp%3B+Presentations&index=1&md5=1d5797aabf1f45fe92838cc7699f52a2)\n, or by clicking on the link HERE\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fevents.q4inc.com%2Fattendee%2F405047419&esheet=54536023&newsitemid=20260514163705&lan=en-US&anchor=HERE&index=2&md5=93b36768bf953ddef730a4144a187dee)\n. To avoid delays, it is recommended that participants dial into the\nconference call 15 minutes ahead of the scheduled start time.\n\nA replay of the webcast will be available on the website within 24 hours after\nthe call. The earnings press release and related materials will also be\navailable on AIRO’s investor relations website at\nhttps://investor.theairogroup.com/\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Finvestor.theairogroup.com%2F&esheet=54536023&newsitemid=20260514163705&lan=en-US&anchor=https%3A%2F%2Finvestor.theairogroup.com%2F&index=3&md5=e2ed43fb404c508aeff80432a8c02949)\n.\n\nAbout AIRO\n\nAIRO Group Holdings is a next-generation aerospace and defense platform\ndriving innovation across defense and commercial markets. Headquartered in\nMcLean, VA, with operations in the U.S., Canada, and Denmark, AIRO combines a\nglobal reach with deep technical expertise.\n\nThrough a vertically integrated model, AIRO delivers mission-critical\nsolutions centered on its drone platforms, leveraging advanced avionics,\nintegrated training capabilities, and embedded autonomy across systems.\n\nForward-Looking Statements\n\nThe statements contained in this press release that are not historical facts\nare forward-looking statements. You can identify forward-looking statements\nbecause they contain words such as “believes,” “expects,” “may,”\n“will,” “should,” “seeks,” “intends,” “plans,”\n“estimates,” or “anticipates,” or similar expressions which concern\nour strategy, plans, projections or intentions. These forward-looking\nstatements may be included throughout this press release and include, but are\nnot limited to, statements relating to AIRO’s expectations around its\nstrategic initiatives and growth trajectory, statements relating to estimates\nand forecasts of financial and performance metrics, including full year 2026\noutlook, the timing of Blue UAS certification and impact on procurement\nopportunities, the amount and timing of Drone backlog converting to revenue,\nanticipated product performance and capabilities, the optimization of its\nAIRO’s portfolio and evaluation of the strategic fit and long-term role of\nits Training segment, the sufficiency of AIRO’s cash and restricted cash to\nsupport ongoing strategic initiatives, the demand for, market acceptance of\nand opportunity of AIRO’s products and services, AIRO’s ability to enter\ninto strategic partnerships and the impacts of such partnerships and other\nstatements that are not historical fact. By their nature, forward-looking\nstatements are not statements of historical fact or guarantees of future\nperformance and are subject to risks, uncertainties, assumptions or changes in\ncircumstances that are difficult to predict or quantify, including those\ndescribed in the section titled “Risk Factors” in AIRO’s Annual Report\non Form 10-K for the year ended December 31, 2025 filed with the Securities\nand Exchange Commission (“SEC”) on March 31, 2026 as well as other filings\nAIRO may make with the SEC in the future. Forward-looking statements represent\nAIRO’s management’s beliefs and assumptions only as of the date such\nstatements are made. AIRO undertakes no obligation to update any\nforward-looking statements made in this press release to reflect events or\ncircumstances after the date of this press release or to reflect new\ninformation or the occurrence of unanticipated events, except as required by\nlaw.\n\nNon-GAAP Financial Measures and Backlog\n\nTo supplement its condensed consolidated financial statements prepared and\npresented in accordance with GAAP, AIRO uses EBITDA, Adjusted EBITDA and\nAdjusted EBITDA margin, as described below, to facilitate analysis of its\nfinancial and business trends and for internal planning and forecasting\npurposes. AIRO defines (1) EBITDA as net loss before interest (income)\nexpense, income tax (benefit) expense and depreciation and amortization, (2)\nAdjusted EBITDA as net loss before interest (income) expense, income tax\n(benefit) expense, depreciation and amortization, stock-based compensation and\ncontingent consideration fair value adjustments and (3) Adjusted EBITDA margin\nas Adjusted EBITDA divided by revenue. The above items are excluded from\nEBITDA and Adjusted EBITDA because these items are either non-cash in nature,\nor because the amount and timing of these items is unpredictable, or because\nthey are not driven by core results of operations, thereby rendering\ncomparisons with prior periods and competitors less meaningful. AIRO believes\nEBITDA, Adjusted EBITDA and Adjusted EBITDA margin provide useful information\nto investors and others in understanding and evaluating its results of\noperations, as well as provides useful measures for period-to-period\ncomparisons of its business performance. Moreover, Adjusted EBITDA is a key\nmeasurement used by AIRO management internally to make operating decisions,\nincluding those related to analyzing operating expenses, evaluating\nperformance and performing strategic planning and annual budgeting.\n\nThere are limitations associated with the use of non-GAAP financial measures.\nThese non-GAAP financial measures should not be considered as alternatives to\nperformance measures derived in accordance with GAAP. AIRO’s presentation of\nthese non-GAAP financial measures should not be construed to imply that its\nfuture results will be unaffected by items that are excluded from these\nmetrics. In addition, AIRO’s definitions of these non-GAAP financial\nmeasures may be different from similarly titled non-GAAP measures used by\nother companies. These non-GAAP financial measures have limitations as an\nanalytical tool and you should not consider any of these non-GAAP financial\nmeasures in isolation or as a substitute for analysis of our results as\nreported under GAAP. See the tables that follow for a reconciliation of EBITDA\nand Adjusted EBITDA to net income (loss) and Adjusted EBITDA Margin to net\nincome (loss) margin, the most directly comparable financial measures stated\nin accordance with GAAP.\n\nDrones segment backlog represents unfilled orders for which we have purchase\norders or other definitive agreements with customers outside of the United\nStates, as well as orders for which NATO countries have allocated funds but\nfor which no definitive agreement has been executed but is expected once\nthrough the administrative process, in each case against which we expect to\nperform and recognize the majority of revenue in the next 12 months. Drones\nsegment backlog amount was translated to U.S. dollars using applicable\nexchange rates as of market close on April 30, 2026, and may increase or\ndecrease based on fluctuations in foreign exchange rates.\n AIRO Group Holdings, Inc.                                                                               \n \n                                                                                                       \n \nConsolidated Balance Sheets                                                                            \n \n                                                                                                       \n \n(unaudited)                                                                                            \n                                                                                                         \n (Amounts in thousands)                            March 31, 2026              December 31, 2025         \n ASSETS                                                                                                  \n Current assets:                                                                                         \n Cash                                              $      54,227               $       74,358            \n Restricted cash                                          189                          193               \n Accounts receivable, net                                 8,098                        12,385            \n Related party receivables                                74                           393               \n Inventory                                                22,507                       11,639            \n Prepaid expenses and other current assets                9,513                        7,508             \n Total current assets                                     94,608                       106,476           \n Property and equipment, net                              9,917                        8,986             \n Right-of-use operating lease assets                      3,032                        3,278             \n Goodwill                                                 569,284                      571,653           \n Intangible assets, net                                   82,064                       83,487            \n Other assets                                             210                          259               \n Total assets                                      $      759,115              $       774,139           \n                                                                                                         \n LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                    \n                                                                                                         \n Current liabilities:                                                                                    \n Accounts payable                                  $      10,661               $       6,599             \n Related party payables                                   7,807                        8,892             \n Accrued expenses                                         8,475                        7,624             \n Operating lease liabilities, current                     887                          902               \n Deferred revenue                                         3,557                        4,497             \n Related party borrowings                                 5                            1,161             \n Current maturities of debt                               740                          1,190             \n Total current liabilities                                32,132                       30,865            \n Long-term debt, net of current maturities                500                          500               \n Deferred tax liability                                   1,046                        1,046             \n Long-term deferred revenue                               16                           8                 \n Operating lease liabilities, noncurrent                  2,224                        2,478             \n Other long-term liabilities                              800                          50                \n Total liabilities                                        36,718                       34,947            \n                                                                                                         \n Stockholders’ equity:                                                                                   \n Common stock                                             -                            -                 \n Additional paid-in capital                               964,524                      963,022           \n Treasury shares                                          (21,220   )                  (21,220   )       \n Accumulated other comprehensive income                   5,103                        7,947             \n Accumulated deficit                                      (226,010  )                  (210,557  )       \n Total stockholders’ equity                               722,397                      739,192           \n Total liabilities and stockholders’ equity        $      759,115              $       774,139           \n\n AIRO Group Holdings, Inc.                                                                                                             \n \n                                                                                                                                     \n \nConsolidated Statements of Operations                                                                                                \n \n                                                                                                                                     \n \n(unaudited)                                                                                                                          \n                                                                                                                                       \n                                                                                   Three months ended March 31,                        \n (Amounts in thousands, except per share amounts)                                  2026                          2025                  \n Revenue                                                                           $      8,901                  $      11,795         \n Cost of revenue                                                                          6,536                         4,862          \n Gross profit                                                                             2,365                         6,933          \n                                                                                                                                       \n Operating expenses:                                                                                                                   \n Research and development                                                                 6,704                         3,666          \n Sales and marketing                                                                      1,977                         1,433          \n General and administrative                                                               10,842                        4,915          \n Total operating expenses                                                                 19,523                        10,014         \n Loss from operations                                                                     (17,158  )                    (3,081  )      \n Other income (expense):                                                                                                               \n Interest income (expense), net                                                           376                           (1,267  )      \n Other (expense) income, net                                                              (316     )                    2,662          \n Total other income (expense)                                                             60                            1,395          \n Loss before income tax benefit (expense)                                                 (17,098  )                    (1,686  )      \n Income tax benefit (expense)                                                             1,645                         (287    )      \n Net loss                                                                          $      (15,453  )             $      (1,973  )      \n                                                                                                                                       \n Net loss per share – basic and diluted                                            $      (0.49    )             $      (0.12   )      \n                                                                                                                                       \n Weighted-average number of shares of common stock used in computing net loss             31,395                        16,387         \n per share, basic and diluted                                                                                                          \n\n AIRO Group Holdings, Inc.                                                                      \n \n                                                                                              \n \nNon-GAAP Reconciliations                                                                      \n \n                                                                                              \n \n(UNAUDITED)                                                                                   \n                                                                                                \n                                                      Three Months                              \n                                                      \nEnded March 31,                          \n (in thousands, except percentages)                   2026                    2025              \n Net loss                                             $    (15,453  )         $    (1,973  )    \n Depreciation and amortization                             3,130                   3,138        \n Income tax (benefit) expense                              (1,645   )              287          \n Interest (income) expense, net                            (376     )              1,267        \n EBITDA                                                    (14,344  )              2,719        \n Stock-based compensation                                  1,502                   125          \n Contingent consideration fair value adjustments           -                       (2,738  )    \n Adjusted EBITDA                                      $    (12,842  )         $    106          \n                                                                                                \n Net loss margin                                           (173.6   )%             (16.7   )%   \n Adjusted EBITDA margin                                    N.m.                    0.9     %    \n                                                                                                \n N.m. – Not meaningful                                                                          \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260514163705/en/\n(https://www.businesswire.com/news/home/20260514163705/en/)\n\nInvestor Relations Contact \n\nJack Senft\n\nAIRO Group Holdings, Inc.\n\nInvestorRelations@theairogroup.com \n(mailto:InvestorRelations@theairogroup.com) \n\n\nMedia Contact \n\nDan Johnson\n\nAIRO Group Holdings, Inc.\n\nmedia@theairogroup.com (mailto:media@theairogroup.com)\n\n\nCopyright Business Wire 2026"},"type":"article","timestamp":"2026-05-14T10:29:00.17593108Z","server_sent_at_ms":1778754540175},"received_at":"2026-05-14T10:29:00.327Z","source_url":"https://www.businesswire.com/news/home/20260514163705/en/"},"analysis":{"id":"24509","press_release_id":"34547","analysis_json":{"industry":{"label":"Aerospace & Defense","sector":"Industrials"},"redFlags":["Revenue and gross profit down significantly YoY","Large operating and net losses reported"],"eventType":"earnings","narrative":"AIRO Group Holdings reported Q1 2026 revenue of $8.9 million, a 24.5% decrease from the $11.8 million reported in Q1 2025.\n\nGross profit was $2.4 million, representing a gross margin of 26.6%, down from $6.9 million and 58.8% in the prior year period.\n\nThe company reported an operating loss of $17.2 million, compared to $3.1 million in Q1 2025, and a net loss of $15.5 million, compared to $2.0 million in the prior year.\n\nAIRO reiterates its full-year 2026 revenue growth guidance of 15% to 25% and expects the majority of its $150 million drone backlog to convert to revenue over the next 12 months.","sentiment":"bearish","agentHooks":{"shouldPost":true,"suggestedAngle":"Q1 earnings miss with significant revenue and profit declines, but full-year guidance remains intact."},"keyFigures":{"revenue":8901000,"guidance":"full-year 2026 revenue growth 15% to 25%; full-year 2026 Adjusted EBITDA in the negative mid- to high-teens dollar range","revenueYoy":"-24.5%","customDimensions":{"gross_profit":2365000,"drone_backlog":150000000}},"quotedText":"Following a foundational 2025, we continued to take important steps in the first quarter to strengthen our infrastructure and strategic focus needed to scale AIRO into a leading, integrated aerospace and defense platform.","namedEntities":{"people":[{"name":"Dr. Chirinjeev Kathuria","role":"Executive Chairman"},{"name":"Joe Burns","role":"Chief Executive Officer"},{"name":"Jack Senft","role":"Investor Relations Contact"},{"name":"Dan Johnson","role":"Media Contact"}],"products":["RQ-35 Heidrun","JX250","JC250"],"companies":[{"name":"AIRO Group Holdings, Inc.","ticker":"AIRO"}],"dollarAmounts":[{"amount":"$8.9 million","context":"Q1 2026 revenue"},{"amount":"$11.8 million","context":"Q1 2025 revenue"},{"amount":"$2.4 million","context":"Q1 2026 gross profit"},{"amount":"$6.9 million","context":"Q1 2025 gross profit"},{"amount":"$(17.2) million","context":"Q1 2026 operating loss"},{"amount":"$(3.1) million","context":"Q1 2025 operating loss"},{"amount":"$(15.5) million","context":"Q1 2026 net loss"},{"amount":"$(2.0) million","context":"Q1 2025 net loss"},{"amount":"$(14.3) million","context":"Q1 2026 EBITDA"},{"amount":"$2.7 million","context":"Q1 2025 EBITDA"},{"amount":"$(12.8) million","context":"Q1 2026 Adjusted EBITDA"},{"amount":"$0.1 million","context":"Q1 2025 Adjusted EBITDA"},{"amount":"$150 million","context":"drone backlog as of April 30, 2026"},{"amount":"$54.2 million","context":"cash as of March 31, 2026"},{"amount":"$1.2 million","context":"total debt as of March 31, 2026"}]},"materialImpact":{"score":4,"reasoning":"Revenue and gross profit were down significantly year-over-year, and the company reported a large operating loss. However, the company reiterates full-year guidance, which provides some positive outlook."},"tickerRelevance":{"others":[],"primary":"AIRO"},"globalImportance":35,"audienceRelevance":50,"eventTypeSecondary":["operations_update"],"importanceComponents":{"tickerTier":"mid-cap","eventGravity":"earnings report with significant declines","sectorWeight":"aerospace and defense","householdBrandBoost":"moderate","marketCapAdjustment":"moderate","retailFavoriteBoost":"low"}},"event_type":"earnings","event_type_secondary":["operations_update"],"sentiment":"bearish","material_impact_score":4,"narrative":"AIRO Group Holdings reported Q1 2026 revenue of $8.9 million, a 24.5% decrease from the $11.8 million reported in Q1 2025.\n\nGross profit was $2.4 million, representing a gross margin of 26.6%, down from $6.9 million and 58.8% in the prior year period.\n\nThe company reported an operating loss of $17.2 million, compared to $3.1 million in Q1 2025, and a net loss of $15.5 million, compared to $2.0 million in the prior year.\n\nAIRO reiterates its full-year 2026 revenue growth guidance of 15% to 25% and expects the majority of its $150 million drone backlog to convert to revenue over the next 12 months.","key_figures":{"revenue":8901000,"guidance":"full-year 2026 revenue growth 15% to 25%; full-year 2026 Adjusted EBITDA in the negative mid- to high-teens dollar range","revenueYoy":"-24.5%","customDimensions":{"gross_profit":2365000,"drone_backlog":150000000}},"named_entities":{"people":[{"name":"Dr. Chirinjeev Kathuria","role":"Executive Chairman"},{"name":"Joe Burns","role":"Chief Executive Officer"},{"name":"Jack Senft","role":"Investor Relations Contact"},{"name":"Dan Johnson","role":"Media Contact"}],"products":["RQ-35 Heidrun","JX250","JC250"],"companies":[{"name":"AIRO Group Holdings, Inc.","ticker":"AIRO"}],"dollarAmounts":[{"amount":"$8.9 million","context":"Q1 2026 revenue"},{"amount":"$11.8 million","context":"Q1 2025 revenue"},{"amount":"$2.4 million","context":"Q1 2026 gross profit"},{"amount":"$6.9 million","context":"Q1 2025 gross profit"},{"amount":"$(17.2) million","context":"Q1 2026 operating loss"},{"amount":"$(3.1) million","context":"Q1 2025 operating loss"},{"amount":"$(15.5) million","context":"Q1 2026 net loss"},{"amount":"$(2.0) million","context":"Q1 2025 net loss"},{"amount":"$(14.3) million","context":"Q1 2026 EBITDA"},{"amount":"$2.7 million","context":"Q1 2025 EBITDA"},{"amount":"$(12.8) million","context":"Q1 2026 Adjusted EBITDA"},{"amount":"$0.1 million","context":"Q1 2025 Adjusted EBITDA"},{"amount":"$150 million","context":"drone backlog as of April 30, 2026"},{"amount":"$54.2 million","context":"cash as of March 31, 2026"},{"amount":"$1.2 million","context":"total debt as of March 31, 2026"}]},"model_name":"Qwen/Qwen2.5-72B-Instruct-AWQ","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-05-14T10:35:59.601Z","global_importance":35,"audience_relevance":50,"importance_components":{"tickerTier":"mid-cap","eventGravity":"earnings report with significant declines","sectorWeight":"aerospace and defense","householdBrandBoost":"moderate","marketCapAdjustment":"moderate","retailFavoriteBoost":"low"}},"durationMs":147510,"modelName":"george-droid-qwen-72b"}}