Airo Group Holdings, Inc. (AIRO) AI Stock Analysis

• Market Cap: $303.65M
• Dividend Yield: N/A
• Average Volume (3M): 690.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.72
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 151
• Sector: Technology
• Sector Strength: 88
• Industry: Aerospace & Defense
• EPS (TTM): -0.28
• Shares Outstanding: 31,303,835
• 10 Day Avg. Volume: 502,373
• 30 Day Avg. Volume: 690,965
• PEG Ratio: -0.80
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 6.87
• P/FCF Ratio: 28.86
• Enterprise Value/Market Cap: 1.56
• Enterprise Value/Revenue: 0.07
• Enterprise Value/Gross Profit: 0.17
• Enterprise Value/Ebitda: -0.09
• 1Y Price Target: $21.33
• Price Target Upside: 150.94% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): -0.03
• Revenue Forecast (FY): $110.54M

• Rating: 47 Neutral
• Price Target: $8.50 ▲(0.00% Upside)

Airo Group Holdings, Inc. faces significant challenges, primarily due to its negative profitability and weak technical indicators. While the company exhibits strong revenue growth and a solid balance sheet, these positives are overshadowed by bearish market momentum and poor valuation metrics. Addressing profitability and improving cash flow management are critical for enhancing the stock's attractiveness.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Airo's products and services, supporting its expansion in the aerospace and defense sectors.

Solid Balance Sheet

A low debt-to-equity ratio enhances financial flexibility, allowing Airo to invest in growth opportunities without significant financial strain.

Strong Gross Profit Margin

A high gross profit margin reflects effective cost control and pricing power, contributing to long-term profitability potential.

Negative Factors

Profitability Challenges

Negative profitability metrics suggest difficulties in converting revenue into profit, which could hinder sustainable growth and investor confidence.

Cash Flow Management

Weak cash flow growth limits the company's ability to fund operations and invest in future projects, potentially impacting long-term viability.

Negative Return on Equity

A negative return on equity indicates inefficient use of shareholder funds, which can deter investment and affect the company's growth prospects.

Airo Group Holdings, Inc. Business Overview & Revenue Model

Company Description

Airo Group Holdings, Inc. (AIRO) is a diversified holding company primarily focused on the development and commercialization of advanced technologies in the aerospace, defense, and security sectors. The company operates through various subsidiaries that provide innovative solutions, including unmanned aerial vehicles (UAVs), advanced manufacturing processes, and integrated security systems. Airo Group Holdings aims to enhance operational efficiency and safety across multiple industries by leveraging cutting-edge technology and engineering expertise.

How the Company Makes Money

Airo Group Holdings generates revenue through multiple streams, including the sale of UAVs and related technology solutions to government and commercial customers. The company also earns income from contracts with defense and aerospace agencies, providing research and development services, as well as manufacturing capabilities for specialized components. Strategic partnerships with other technology firms and government entities further bolster its revenue, enabling Airo to participate in larger projects and secure long-term contracts. Additionally, ongoing maintenance and support services for its products contribute to a recurring revenue model.

Airo Group Holdings, Inc. Financial Statement Overview

Summary

Airo Group Holdings, Inc. shows strong revenue growth and a solid balance sheet with low leverage. However, profitability and cash flow management remain areas for improvement. The company is on a growth trajectory but must address its bottom-line challenges to enhance overall financial health.

Income Statement

Airo Group Holdings, Inc. has shown impressive revenue growth, with a 253% increase in the latest year. However, profitability remains a challenge, as indicated by negative net profit and EBIT margins. The gross profit margin is strong at 67%, suggesting efficient cost management, but the company needs to improve its bottom line.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.09, indicating low leverage and financial stability. However, the return on equity is negative, reflecting ongoing profitability challenges. The equity ratio is solid, suggesting a strong capital structure.

Cash Flow

Cash flow management is mixed, with a significant decline in free cash flow growth. The operating cash flow to net income ratio is positive, indicating some efficiency in converting income to cash, but the overall cash flow position needs improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.36B	86.94M	43.25M	17.08M	11.78M
Gross Profit	2.84B	58.32M	24.91M	4.13M	3.48M
EBITDA	-5.36B	-2.27M	-14.78M	-23.10M	-16.07M
Net Income	-7.96B	-38.69M	-32.46M	-25.55M	-20.53M
Balance Sheet
Total Assets	774.58M	701.00M	737.52M	733.34M	9.78M
Cash, Cash Equivalents and Short-Term Investments	83.68M	20.74M	4.12M	605.15K	13.62K
Total Debt	14.68M	48.96M	30.97M	30.73M	33.35M
Total Liabilities	35.03M	152.27M	142.07M	110.35M	116.02M
Stockholders Equity	739.55M	548.73M	595.46M	623.00M	-106.24M
Cash Flow
Free Cash Flow	-14.83M	20.70M	21.27M	-5.41M	-574.09K
Operating Cash Flow	-12.58M	21.49M	22.11M	-5.33M	-535.06K
Investing Cash Flow	-2.25M	-789.13K	-835.92K	923.65K	-39.04K
Financing Cash Flow	88.24M	-10.58M	-9.29M	4.75M	505.20K

Airo Group Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
VSA	51 Neutral	$102.07K	―	―	―	―	―
AIRO	47 Neutral	$303.65M	―	―	―	―	―
KPLT	47 Neutral	$52.55M	-1.64	―	―	16.56%	28.25%
WATT	41 Neutral	$13.22M	―	-175.08%	―	599.15%	82.47%
UAVS	41 Neutral	$55.81M	-0.08	-110.92%	―	-6.34%	98.60%
SURG	40 Underperform	$30.93M	―	-313.72%	―	-39.75%	-89.61%

Airo Group Holdings, Inc. Corporate Events

AIRO Group Signs New Lease for Executive Office

On October 14, 2025, AIRO Group Holdings, Inc. entered into a lease agreement with Westpark Corporate Center, L.L.C. for a new principal executive office space in McLean, Virginia. The lease covers 2,815 square feet and has an initial term of 65 months starting November 1, 2025, with an option to extend for five more years. The initial monthly rent is set at $10,556.25, with a 2.50% annual increase, and the first five months of rent are abated. This move signifies a strategic relocation for AIRO Group Holdings, potentially impacting its operational efficiency and stakeholder engagement.

Airo Group Announces Public Offering Pricing

On September 10, 2025, AIRO Group Holdings, Inc. announced the pricing of a public offering of 4,200,000 shares of common stock at $18.50 per share, with an option for underwriters to purchase an additional 630,000 shares. The company plans to use the proceeds to fund growth initiatives, pursue acquisitions, and repurchase shares from existing stockholders, including directors and executive officers. The stock repurchase is contingent on the closing of the offering, and the audit committee has approved the transactions. However, there is no assurance that the offering or repurchase will occur as described.