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Airo Group Holdings, Inc.
(NASDAQ:AIRO)
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Rating:63Neutral
Price Target:
$10.00
▲(47.06% Upside)
Action:Reiterated
Date:08/17/26
AIRO scores as a moderate-risk, improving-momentum setup: the strongest positives are accelerating operating performance and backlog/liquidity improvements highlighted on the earnings call, plus bullish technicals. These are tempered by weaker recent cash-flow performance and limited valuation support given negative earnings (negative P/E).
Positive Factors
Revenue Growth and Margin Expansion
Strong drone-led growth and higher gross margins indicate improving product demand and operating execution. The swing to operating profit suggests greater scale benefits, although sustained performance will depend on repeatable deliveries.
Negative Factors
Negative Cash Generation
Recent cash burn weakens cash conversion and could limit funding flexibility if it persists during continued investment. Stronger liquidity helps cushion the risk, but management’s target of positive free cash flow is not expected until 2027.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth and Margin Expansion
Strong drone-led growth and higher gross margins indicate improving product demand and operating execution. The swing to operating profit suggests greater scale benefits, although sustained performance will depend on repeatable deliveries.
Read all positive factors
Airo Group Holdings, Inc. (AIRO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$271.38M
Dividend YieldN/A
Average Volume (3M)432.22K
Price to Earnings (P/E)―
Beta (1Y)2.36
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees223
SectorGeneral
Sector StrengthN/A
IndustryAerospace & Defense
Share Statistics
EPS (TTM)-0.83
Shares Outstanding31,555,918
10 Day Avg. Volume426,724
30 Day Avg. Volume432,222
Financial Highlights & Ratios
PEG Ratio0.54
Price to Book (P/B)0.26
Price to Sales (P/S)2.13
P/FCF Ratio-5.46
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$13.00Price Target Upside91.18% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-1.18
Revenue Forecast (FY)$109.51M
Airo Group Holdings, Inc. Business Overview & Revenue Model
Company Description
AIRO Group, an American aerospace and defense enterprise, maintains its primary operations from Albuquerque, New Mexico. The company's diversified portfolio encompasses four key areas: unmanned aircraft systems (drones), aviation electronics (avio...
Airo Group Holdings, Inc. Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 13, 2026
Earnings Call Sentiment Positive
The call conveyed materially positive operational momentum—strong revenue growth (~76% YoY), improved gross margins (64%), a swing to operating profit, brand- and product-level milestones (Blue UAS certification, RQ-70 unveiling), growing backlog (~$163M, +9% QoQ), and a substantial post-quarter cash inflow (~$56M). Offsetting these positives are continued variability in quarterly cadence, an expected negative full-year adjusted EBITDA (mid-to-high teens of millions), a GAAP EBITDA decline YoY, segment underperformance in Training and flat Avionics, FX headwinds, and external permitting delays in Ukrainian JVs. On balance, the company showed clear operational progress and stronger liquidity, while still managing near-term profitability headwinds and execution risks.Positive Updates
Strong Revenue Growth
Q2 2026 revenue of $43.2M versus $24.6M in Q2 2025, representing nearly 76% year-over-year growth; quarter outperformed expectations and was driven primarily by Drone segment deliveries.
Negative Updates
Net Loss Despite Operating Profit
Second quarter reported a net loss of $2.0M versus net income of $5.9M in Q2 2025, indicating non-operating items or tax/one-time impacts offsetting operating profitability for the period.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue Growth
Q2 2026 revenue of $43.2M versus $24.6M in Q2 2025, representing nearly 76% year-over-year growth; quarter outperformed expectations and was driven primarily by Drone segment deliveries.
Read all positive updates
Company Guidance
Management reiterated full-year revenue growth guidance of 15%–25% year‑over‑year and expects full‑year adjusted EBITDA to be a loss in the negative mid‑to‑high‑teens millions; Q2 results were strong with revenue of $43.2M (up nearly 76% YoY), gross profit $27.7M (64% margin), operating income $1.7M, net loss $2.0M, EBITDA $5.1M and adjusted EBITDA $6.8M. They reported cash of $25.9M and $6.8M of debt as of June 30 (subsequent collections drove cash to ~ $56M as of July 31), drone backlog of roughly $163M (up ~9% sequentially, majority expected to convert within 12 months and currently excludes U.S. orders), and said development costs for the JC250/JX250 are tracking below expectations by a low double‑digit percent with first flight later this year and RQ‑70 production slated to start January 2027. Management expects H2 revenue to be in line with or modestly above H1 (H1 was ~50% of current full‑year expectations), a Q3 sequential dip from Q2 followed by a stronger Q4 (modestly above Q2), modest gross‑margin compression versus 2025 with full‑year margin roughly in line with H1, FX headwinds in H2 of a few million dollars, and a shift to positive free cash flow in 2027 and beyond.Airo Group Holdings, Inc. Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
86
Very Positive
Cash Flow
40
Negative
| Breakdown | TTM | Mar 2026 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 106.64M | 90.91M | 86.94M | 43.25M | 17.08M | 11.78M |
| Gross Profit | 62.65M | 54.41M | 58.32M | 24.91M | 4.13M | 3.48M |
| EBITDA | -4.47M | 25.33M | -2.27M | -14.78M | -23.10M | -16.07M |
| Net Income | -25.45M | 9.98M | -38.69M | -32.46M | -25.55M | -20.53M |
Balance Sheet | ||||||
| Total Assets | 757.05M | 774.14M | 701.00M | 737.52M | 733.34M | 9.78M |
| Cash, Cash Equivalents and Short-Term Investments | 25.85M | 74.36M | 20.74M | 4.12M | 605.15K | 13.62K |
| Total Debt | 9.84M | 6.23M | 48.96M | 30.97M | 30.73M | 33.35M |
| Total Liabilities | 36.91M | 34.95M | 152.27M | 142.07M | 110.35M | 116.02M |
| Stockholders Equity | 720.14M | 739.19M | 548.73M | 595.46M | 623.00M | -106.24M |
Cash Flow | ||||||
| Free Cash Flow | -56.92M | -35.51M | 20.70M | 21.27M | -5.41M | -574.09K |
| Operating Cash Flow | -50.40M | -32.43M | 21.49M | 22.11M | -5.33M | -535.06K |
| Investing Cash Flow | -6.52M | -3.07M | -789.13K | -835.92K | 923.65K | -39.04K |
| Financing Cash Flow | 40.83M | 86.41M | -10.58M | -9.29M | 4.75M | 505.20K |
Airo Group Holdings, Inc. Technical Analysis
Negative
6.80
Price Trends
19.30
Negative
Market Momentum
-1.07
Positive
25.16
Positive
18.42
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AIRO, the sentiment is Negative. The current price of 6.8 is below the 20-day moving average (MA) of 17.69, below the 50-day MA of 19.30, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of -1.07 indicates Positive momentum. The RSI at 25.16 is Positive, neither overbought nor oversold. The STOCH value of 18.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AIRO.
Airo Group Holdings, Inc. Risk Analysis
Airo Group Holdings, Inc. disclosed 64 risk factors in its most recent earnings report. Airo Group Holdings, Inc. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Airo Group Holdings, Inc. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $271.38M | -9.73 | -3.48% | ― | ― | ― | |
58 Neutral | $4.85B | -5.62 | -40.86% | ― | ― | 15.37% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
54 Neutral | $916.52M | -4.00 | -221.18% | ― | ― | 1.65% | |
54 Neutral | $5.79B | -5.22 | -57.71% | ― | ― | ― | |
46 Neutral | $413.64M | -3.99 | -31.15% | ― | 22.18% | 15.10% | |
42 Neutral | $131.75M | 4.80 | 7.80% | ― | ― | ― |
* General Sector Average
AIRO
Airo Group Holdings, Inc.
8.12
-15.12
-65.06%
EH
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5.20
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EVTL
Vertical Aerospace
0.79
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EVEX
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2.48
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ACHR
Archer Aviation
6.07
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-35.22%
BETA
BETA Technologies, Inc. Class A
23.84
-12.16
-33.78%
Airo Group Holdings, Inc. Corporate Events
Executive/Board ChangesShareholder Meetings
Airo Group Stockholders Elect Directors, Ratify Auditor Selection
Positive
Jun 5, 2026
On June 4, 2026, AIRO Group Holdings, Inc. held its annual meeting of stockholders, with 66.25% of the 31,438,382 outstanding common shares represented in person or by proxy, constituting a quorum for the proceedings. Stockholders elected three Cl...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.