# AeroVironment (AVAV) Q1 2026 Financial Results Summary
AeroVironment, Inc. (NASDAQ: AVAV) released its financial results for the fiscal first quarter ended August 2, 2025, on September 9, 2025. Below is a summary of the key highlights and metrics from their earnings report.
### Key Financial Highlights
– **Revenue:**
– Total revenue reached **$454.7 million**, representing a **140% increase** compared to **$189.5 million** in Q1 of fiscal 2025.
– Legacy revenue comprised **$219.5 million**, which is a **16% increase** year-over-year.
– **Acquisition Impact:**
– The acquisition of **BlueHalo** contributed **$235.2 million** in revenue during the quarter.
– Product sales from BlueHalo accounted for **$123.7 million**, while service revenue contributed **$111.5 million**.
– **Segment Performance:**
– Autonomous Systems (“AxS”) recorded revenue of **$285.3 million**.
– Space, Cyber and Directed Energy (“SCDE”) revenue totaled **$169.4 million**.
– **Gross Margin:**
– Gross margin for Q1 was **$95.1 million**, a **17% increase** from **$81.5 million** a year ago.
– As a percentage of revenue, gross margin fell to **21%**, down from **43%** primarily due to higher intangible amortization expenses linked to the BlueHalo acquisition.
– **Operating Loss:**
– Loss from operations was **$(69.3) million**, compared to operating income of **$23.1 million** in Q1 of the prior fiscal year.
– The current quarter’s loss was affected by **$79.7 million** in non-cash amortization and related expenses.
– **Net Income/Loss:**
– AeroVironment reported a net loss of **$(67.4) million**, equating to **$(1.44)** per diluted share, contrasted with a net income of **$21.2 million** or **$0.75** per diluted share from the prior-year quarter.
– The significant decrease was mainly due to non-cash charges from the acquisition costs.
– **Adjusted Metrics:**
– Non-GAAP adjusted EBITDA was **$56.6 million** compared to **$37.2 million** in Q1 fiscal 2025.
– Non-GAAP earnings per diluted share were **$0.32**, down from **$0.89** in the previous year.
### Backlog and Bookings
– **Backlog:**
– Funded backlog as of August 2, 2025, stood at **$1.1 billion**, an increase from **$726.6 million** at the end of April 2025.
– This figures reflect the company’s strong order book and future revenue visibility.
– **Bookings:**
– Total bookings for the quarter amounted to **$399.0 million**.
– There is an **80% visibility** to the midpoint of the fiscal year 2026 revenue guidance range.
### Dividend and Share Repurchase
– AeroVironment did not declare a quarterly dividend nor indicated any share repurchase activities in the announcement.
### Outlook
– The company continues to project fiscal year 2026 revenue between **$1.9 billion and $2.0 billion**.
– Expected net loss is between **$(77) million and $(72) million**, with an anticipated non-GAAP adjusted EBITDA between **$300 million and $320 million**.
– Loss per diluted share is estimated to range from **$(1.63) to $(1.53)** with adjusted earnings per diluted share anticipated to be between **$3.60 and $3.70**.
### Summary
AeroVironment’s Q1 fiscal 2026 results demonstrate significant growth driven primarily by the BlueHalo acquisition, resulting in a substantial increase in total revenue but a net loss greatly influenced by intangible asset amortization. The company’s backlog and revenue visibility suggest strong operational foundations for the remainder of the fiscal year.
| Three Months Ended | August 2, 2025 (Unaudited) | July 27, 2024 |
|---|---|---|
| Product sales | $313,533 | $159,504 |
| Contract services | $141,143 | $29,979 |
| Total | $454,676 | $189,483 |
| Cost of sales: Product sales | $230,687 | $85,519 |
| Cost of sales: Contract services | $128,871 | $22,497 |
| Total | $359,558 | $108,016 |
| Gross margin: Product sales | $82,846 | $73,985 |
| Gross margin: Contract services | $12,272 | $7,482 |
| Total | $95,118 | $81,467 |
| Selling, general and administrative | $131,276 | $33,795 |
| Research and development | $33,114 | $24,613 |
| (Loss) income from operations | -69,272 | $23,059 |
| Interest expense, net | -17,415 | -239 |
| Other income (expense), net | $2,361 | -234 |
| (Loss) income before income taxes | -84,326 | $22,586 |
| Provision for income taxes | -15,169 | $1,485 |
| Equity method investment income, net of tax | $1,787 | $65 |
| Net (loss) income | -67,370 | $21,166 |
| Net (loss) income per share: Basic | -1.44 | $0.76 |
| Net (loss) income per share: Diluted | -1.44 | $0.75 |
| Weighted-average shares outstanding: Basic | 46,882,350 | 27,959,692 |
| Weighted-average shares outstanding: Diluted | 46,882,350 | 28,281,827 |
| As of | August 2, 2025 | April 30, 2025 |
|---|---|---|
| Cash and cash equivalents | $685,803 | $40,862 |
| Accounts receivable, net of allowance for credit losses of $773 at August 2, 2025 and $203 at April 30, 2025 | $198,293 | $101,967 |
| Unbilled receivables and retentions | $463,870 | $290,009 |
| Inventories, net | $232,888 | $144,090 |
| Income taxes receivable | $20,778 | $622 |
| Prepaid expenses and other current assets | $37,707 | $28,966 |
| Total current assets | $1,639,339 | $606,516 |
| Long-term investments | $36,267 | $31,627 |
| Property and equipment, net | $148,807 | $50,704 |
| Operating lease right-of-use assets | $98,514 | $31,879 |
| Deferred income taxes | $0 | $61,460 |
| Intangibles, net | $1,118,848 | $48,711 |
| Goodwill | $2,539,560 | $256,781 |
| Other assets | $42,702 | $32,889 |
| Total assets | $5,624,037 | $1,120,567 |
| Accounts payable | $91,133 | $72,462 |
| Wages and related accruals | $73,752 | $44,253 |
| Customer advances | $61,269 | $15,952 |
| Current operating lease liabilities | $16,759 | $10,479 |
| Income taxes payable | $0 | $356 |
| Other current liabilities | $32,017 | $28,659 |
| Total current liabilities | $274,930 | $172,161 |
| Long-term debt | $725,703 | $30,000 |
| Non-current operating lease liabilities | $87,246 | $23,812 |
| Other non-current liabilities | $2,016 | $2,026 |
| Liability for uncertain tax positions | $6,061 | $6,061 |
| Deferred income taxes | $101,002 | $0 |
| Common stock, $0.0001 par value: Issued and outstanding shares—49,932,300 shares at August 2, 2025 and 28,267,517 shares at April 30, 2025 | $6 | $4 |
| Additional paid-in capital | $4,226,012 | $618,711 |
| Accumulated other comprehensive loss | -5,875 | -6,514 |
| Retained earnings | $206,936 | $274,306 |
| Total stockholders’ equity | $4,427,079 | $886,507 |
| Total liabilities and stockholders’ equity | $5,624,037 | $1,120,567 |
