Key Highlights

  • Revenue was USD 17.5 million, compared with USD 6.3 million, growth of nearly 180%.
  • Gross Margin was 57%, against 44% in the third quarter of 2025.
  • Adjusted EBITDA loss was USD 7.5 million, with margin at negative 43%.
  • Drone Backlog exceeded USD 200 million as of November 5, 2026.

AIRO Group (NASDAQ:AIRO) reported third-quarter 2026 Revenue of USD 17.5 million, against an estimate of USD 13.29 million. Loss per share was USD 0.38, against an estimate of a loss of USD 0.53. Revenue compares with USD 6.3 million in the third quarter of 2025, growth of nearly 180% year over year.

The company describes itself as an aerospace, autonomy and air mobility platform targeting aerospace and defense opportunities across drone, aviation and avionics markets. Management said revenue for the quarter was ahead of its own expectations, with drone segment results offsetting weaker avionics and Training results.

Drone Mix, Margins and Losses

Gross profit was USD 9.9 million, a margin of 57%, compared with USD 2.8 million and 44% a year earlier. The company attributed the gain mainly to a more favorable revenue mix, including higher-volume drone sales that carry stronger margins. The operating loss was USD 13.1 million, against USD 12.0 million, though Operating Expense as a share of revenue improved.

The net loss was USD 12.0 million, compared with USD 8.0 million. Adjusted EBITDA was a loss of USD 7.5 million, against a loss of USD 8.0 million a year earlier. The adjusted EBITDA margin was negative 43%, compared with negative 128%. Management said it remains in Investment mode, retains flexibility to adjust spending up or down, and is pursuing deliberate, efficient investment in infrastructure for its next phase of growth.

Management had indicated on prior calls that third-quarter revenue would be lower than the second quarter because of the timing of program deliveries and the variability of the business.

Backlog, Pipeline and Guidance

As of November 5, 2026, the drone backlog exceeded USD 200 million, with the majority scheduled to convert to revenue over the following twelve months. U.S. opportunities are included in the drone backlog for the first time this quarter because of the ramp-up in U.S. manufacturing, and U.S. programs make up approximately one quarter of the total. The total opportunity pipeline across all four segments stood at USD 1.5 billion.

The company reiterated its full-year revenue growth guidance of 15% to 25% year over year and said it is now at the lower end of that range because of the revenue variability inherent in its Business model.

Strategic milestones in the quarter included the selection of the RQ-35 under the framework agreement with the NATO Support and Procurement Agency, which lets participating NATO nations buy the platform through a streamlined process. AIRO was also selected for Phase 2.5 of the Drone Dominance Program at Camp Grayling and received its first U.S. orders for the RQ-35 and RQ-70.

At September 30, the company held USD 37.8 million of cash and about USD 1.2 million of debt. Cash generation benefited from the collection of nearly USD 30 million of accounts receivable, partly offset by a line of Credit repayment of about USD 5.5 million related to Sky-Watch.

Figures Management Referenced for the Period

Several figures anchor the report: the reiterated 15% to 25% revenue growth range, the USD 200 million drone backlog, the USD 1.5 billion pipeline and the USD 37.8 million cash balance. The segment commentary separates drone outperformance from avionics and training results, and the gross margin figures reflect the mix shift toward drone sales.