AIRO Group Holdings, Inc.

What they do

AIRO operates through four segments: Drones under the Sky-Watch brand (military drones sold to European NATO countries), Avionics under the Aspen Avionics brand (flight displays, Connected Panels, GPS/GNSS sensors for military and general aviation aircraft, drones, and eVTOLs), Training under the CDI brand (military pilot training, adversary air, ISR, JTAC, and aircraft leasing for the U.S. military and allies), and Electric Air Mobility under the Jaunt brand (dual-use electric and hybrid-electric compound rotorcraft in development). The company describes a combined total addressable market of over $315.4 billion by 2030 across the four segments.

Revenue drivers

• Drones (Sky-Watch) — Develops, manufactures and sells military drones to European NATO customers, with the RQ-35 and new RQ-70 platforms and a stated drone backlog of approximately $163 million as of the Q2 2026 release.
• Avionics (Aspen Avionics) — Aftermarket and OEM avionics — flight displays, Connected Panels, GPS/GNSS sensors — for general aviation, military aircraft, drones and eVTOLs; OEM customers named include Robinson Helicopters, Pilatus, Honeywell and Joby Aviation.
• Training (CDI) — Military pilot training, adversary air, close air support, ISR, aircraft leasing and JTAC services to the U.S. military, NATO countries and allies, including a $5.7 billion IDIQ contract on which it is a mandated recipient.
• Electric Air Mobility (Jaunt) — Pre-commercial development of electric and hybrid-electric compound rotorcraft (JC250 cargo and JX250 ISR variants) under CAR 529 certification plans; no commercial revenue described.

Recent performance

Q2 2026 revenue was $43.2 million, up 76% from $24.6 million in Q2 2025, with gross margin of 64% versus 61% a year earlier and 27% in Q1 2026. Income from operations was $1.7 million versus a $(19.7) million operating loss in the prior-year period, while net loss was $(2.0) million compared to net income of $5.9 million. Adjusted EBITDA was $6.8 million versus $4.7 million. Revenue growth reflected stronger Drones performance partially offset by underperformance in Avionics and Training. Full-year 2025 revenue was $90.9 million with a net loss of $4.1 million.

Strategy

Management is positioning AIRO as an integrated aerospace and defense platform across drones, avionics, training and electric air mobility, citing the RQ-35's addition to the DoW Blue UAS list and the RQ-70 long-range ISR platform introduction. The company achieved AS9100D certification at its Phoenix manufacturing facility in Q2 2026 and completed RQ-35 customer deliveries including the first operational deployment of its Zentra camera suite. Jaunt continues development of cargo-configured JC250 and multi-role JX250 autonomous aircraft, with certification pursued under CAR 529 standards. AIRO completed an IPO of 6.9 million shares on June 16, 2025 and also references a follow-on offering and repurchase in its 10-K.

Risks

• Early-stage losses — AIRO describes itself as an early-stage company with a history of losses and expects significant expenses and continuing losses for the foreseeable future, with a full-year 2025 net loss of $4.1 million.
• Customer concentration — The company states it depends on a limited number of customers for most of its revenue, and loss of or reduced orders from key customers would significantly reduce revenue.
• No long-term commitments — AIRO discloses it does not have long-term commitments from customers and that end customers may cease purchasing its products at any time.
• Lumpy quarterly revenue — Reported quarterly revenue swung from $6.3 million in Q3 2025 to $48.3 million in Q4 2025 and from $8.9 million in Q1 2026 to $43.2 million in Q2 2026, tied to drone delivery timing.

Outlook

Management reiterated full-year 2026 revenue growth guidance of 15% to 25% year over year and reiterated full-year 2026 Adjusted EBITDA guidance in the negative mid- to high-teens dollar range. The company reported approximately $56 million of cash as of July 31, 2026, a preliminary, unaudited estimate reflecting subsequent collection of late-quarter drone deliveries, up from $25.9 million at June 30, 2026. Drone backlog stood at approximately $163 million.