AIRO Group Holdings, Inc. Common Stock

Q2 2026 revenue was $43.2 million, compared with $24.6 million in Q2 2025, up nearly 76% year over year. Gross profit was $27.7 million and gross margin was 64%, versus $15.0 million and 61% a year ago. Operating income was $1.7 million versus a $19.7 million operating loss in Q2 2025; net loss was $2.0 million versus net income of $5.9 million; EBITDA was $5.1 million versus $18.9 million, and adjusted EBITDA was $6.8 million versus $4.7 million. Cash was $25.9 million at June 30, debt was $6.8 million, and cash was approximately $56 million as of July 31 after collections. Drone backlog was roughly $163 million at June 30, expected mostly to convert within 12 months. Management reiterated full-year revenue growth guidance of 15% to 25%, expects Q3 revenue to decline sequentially from Q2 and Q4 to be stronger, with Q4 modestly above Q2, and maintained full-year adjusted EBITDA guidance in the negative mid to high teens millions. They also said full-year gross margin should be modestly below 2025 and broadly in line with first-half levels, with FX creating a few million dollars of added revenue headwind in the second half.

The CEO framed the quarter as a validation of execution, pointing to on-time drone deliveries, stronger first-half results, and momentum in the Drone segment. He emphasized strategic progress from Blue UAS certification for the RQ-35, the launch of the RQ-70, and continued development of the JC250 and JX250, saying the company remains squarely focused on unmanned systems. His tone was upbeat but measured, stressing diversification, manufacturing scale, disciplined costs, and selective M&A as ways to reduce revenue variability over time.

The CFO focused on the financial beat, citing $43.2 million of revenue, $27.7 million of gross profit, 64% gross margin, $1.7 million of operating income, and $6.8 million of adjusted EBITDA. She said the margin improvement came from a product mix shift toward drones and noted that development costs for the JC250 and JX250 are running roughly a low double-digit percent below internal expectations. On liquidity, she highlighted $25.9 million of cash and $6.8 million of debt at June 30, plus approximately $56 million of cash as of July 31 after receivables were collected, and said the company expects a shift into positive cash flow in 2027 and beyond.

Analysts focused on the composition and conversion of the $163 million drone backlog, and management clarified that it is mostly international RQ-35 backlog and does not yet include U.S. backlog. Management said Blue UAS certification is the key milestone for entering the U.S. market, and that U.S. RFQs and orders could add to backlog as they convert. Questions on the RQ-70 drew comments that early interest has been very strong because it fills a high-end ISR gap, while the training segment drew concern because management acknowledged limited synergies, high costs, and a year-end decision on strategic alternatives.