AIRO Group Holdings Reports $4M Revenue Increase to $90.9M for Fiscal Year 2025

AIRO Group Holdings, Inc. reported a revenue increase of $4.0 million for the fiscal year ended December 31, 2025, totaling $90.9 million compared to $86.9 million in 2024. The growth was primarily driven by a $4.4 million increase in the Drones segment and a $1.3 million rise in the Training segment, which were partially offset by a $1.7 million decline in the Avionics segment. The Drones segment's revenue growth was attributed to successful market entry strategies targeting NATO member countries, leading to increased shipments. The Training segment benefited from a government contract with higher margins, while the Avionics segment's revenue was impacted by a strategic focus on drone production.

The cost of revenue rose by $7.9 million, resulting in a gross margin decrease from 67.1% to 59.9%. The Drones segment experienced a 9.0% decline in gross margin due to product discounting and changes in the product mix sold. Conversely, the Training and Avionics segments saw improvements in their margins, attributed to higher profitability from specific contracts and favorable operating variances, respectively. Operating expenses increased significantly, particularly in general and administrative costs, which surged by $40.4 million due to corporate costs, including equity compensation and legal settlements.

AIRO Group's operational metrics showed a notable increase in cash and restricted cash, which reached $74.6 million as of December 31, 2025, up from $20.7 million in the previous year. The company also reported a working capital of $75.6 million, indicating a strong liquidity position. The employee headcount increased as the company expanded its operations, particularly in the Drones segment, which is expected to continue driving growth. The company is also evaluating opportunistic debt financing to support its growth initiatives.

Looking ahead, AIRO Group anticipates continued revenue growth driven by its strategic focus on the Drones and Electric Air Mobility segments. The company is preparing for the commercialization of its cargo UAV, expected to begin in late 2027, and the Jaunt Journey passenger aircraft projected for late 2031. Management believes that the existing cash reserves and potential financing will be sufficient to meet operational needs for at least the next 12 months. However, the company acknowledges the inherent risks associated with its growth strategy, including market conditions and regulatory challenges, which could impact future performance.