AeroVironment (AVAV) Q2 2026 Financial Results Summary
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AeroVironment (AVAV) Q2 2026 Financial Results Summary
AeroVironment, Inc. (NASDAQ: AVAV) announced its fiscal second quarter financial results on December 9, 2025, reporting record growth and substantial operational advancements.
Financial Highlights of Q2 2026
- Revenue:
- Total revenue reached $472.5 million, reflecting a 151% increase from $188.5 million in Q2 2025.
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Breakdown:
- Product sales contributed $325.0 million.
- Contract services contributed $147.5 million.
- The acquisition of BlueHalo on May 1, 2025, contributed $245.1 million in total with $134.4 million in product revenue and $110.7 million in service revenue.
- Legacy revenue grew to $227.4 million, reflecting a 21% increase year-over-year.
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Bookings:
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Total bookings amounted to $1.4 billion, with a book-to-bill ratio of 2.9.
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Gross Margin:
- Gross profit for Q2 2026 was $104.1 million, a 41% increase from $73.6 million in Q2 2025.
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Gross margin as a percentage of revenue decreased to 22%, down from 39%, attributed to increased service revenue proportion and higher amortization expenses.
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Operating Income:
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Operating loss stood at $(30.2) million, compared to an operating income of $7.0 million in the prior year. This reflects:
- $48.2 million in intangible amortization costs and related expenses, up from $4.8 million in Q2 2025.
- An increase in selling, general, and administrative expenses by $60.4 million, alongside R&D expenses rising by $7.3 million.
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Net Income:
- Net loss for the quarter was $(17.1) million, equating to $(0.34) per diluted share, down from net income of $7.5 million or $0.27 per diluted share in Q2 2025.
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The current net loss was significantly impacted by amortization expenses of $48.2 million that contributed $(0.77) per diluted share loss.
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Adjusted Metrics:
- Non-GAAP adjusted EBITDA was $45.0 million, compared to $25.9 million in Q2 2025, hinting at a 73% increase.
- Non-GAAP earnings excluding certain non-cash items were $0.44 per diluted share, down from $0.47 year-over-year.
Backlog and Outlook
- Funded Backlog:
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As of November 1, 2025, the funded backlog was reported at $1.1 billion, up from $726.6 million as of April 30, 2025.
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Full-Year Outlook for Fiscal 2026:
- Forecasted revenue between $1.95 billion and $2.0 billion.
- Expected net loss in the range of $(38) million to $(30) million.
- Non-GAAP adjusted EBITDA anticipated between $300 million and $320 million.
- Projected loss per diluted share of $(0.76) to $(0.61) and non-GAAP earnings per diluted share expected between $3.40 and $3.55.
Dividend and Share Repurchase
- No quarterly dividend was declared for Q2 2026.
- The report does not mention any share repurchase activities during this quarter.
Conference and Additional Information
AeroVironment will hold a conference call following this earnings release to discuss the results in detail, expected to take place on the same day of the press release.
Investors are directed to the company’s investor relations website for access to the live audio webcast and supplementary materials, further details of their fiscal trajectory and operational highlights.
For more information, investors may visit the official AeroVironment website here.
| Three Months Ended | November 1, 2025 (Unaudited) | October 26, 2024 | Six Months Ended | November 1, 2025 (Unaudited) | October 26, 2024 |
|---|---|---|---|---|---|
| Product sales | $325,037 | $151,231 | $638,570 | $310,735 | |
| Contract services | $147,471 | $37,227 | $288,614 | $67,206 | |
| Total | $472,508 | $188,458 | $927,184 | $377,941 | |
| Cost of sales: Product sales | $241,397 | $87,052 | $472,084 | $172,571 | |
| Cost of sales: Contract services | $127,006 | $27,768 | $255,877 | $50,265 | |
| Total | $368,403 | $114,820 | $727,961 | $222,836 | |
| Gross margin: Product sales | $83,640 | $64,179 | $166,486 | $138,164 | |
| Gross margin: Contract services | $20,465 | $9,459 | $32,737 | $16,941 | |
| Total | $104,105 | $73,638 | $199,223 | $155,105 | |
| Selling, general and administrative | $98,336 | $37,916 | $229,612 | $71,711 | |
| Research and development | $35,993 | $28,716 | $69,107 | $53,329 | |
| (Loss) income from operations | $-30,224 | $7,006 | $-99,496 | $30,065 | |
| Other income (loss): Interest income (expense), net | $4,669 | $-690 | $-12,746 | $-929 | |
| Other income (loss): Other income (expense), net | $4,951 | $16 | $7,312 | $-218 | |
| (Loss) income before income taxes | $-20,604 | $6,332 | $-104,930 | $28,918 | |
| (Benefit from) provision for income taxes | $-2,305 | $-221 | $-17,474 | $1,264 | |
| Equity method investment income, net of tax | $1,196 | $990 | $2,983 | $1,055 | |
| Net (loss) income | $-17,103 | $7,543 | $-84,473 | $28,709 | |
| Net (loss) income per share Basic | $-0.34 | $0.27 | $-1.75 | $1.03 | |
| Net (loss) income per share Diluted | $-0.34 | $0.27 | $-1.75 | $1.02 | |
| Weighted-average shares outstanding: Basic | 49,723,280 | 28,009,963 | 48,279,447 | 27,985,425 | |
| Weighted-average shares outstanding: Diluted | 49,723,280 | 28,145,590 | 48,279,447 | 28,139,942 |
| November 1, 2025 | April 30, 2025 | |
|---|---|---|
| Cash and cash equivalents | $359,434 | $40,862 |
| Short-term investments | $229,046 | $— |
| Accounts receivable, net of allowance for credit losses of $2,601 at November 1, 2025 and $203 at April 30, 2025 | $232,342 | $101,967 |
| Unbilled receivables and retentions | $513,486 | $290,009 |
| Inventories, net | $259,213 | $144,090 |
| Income taxes receivable | $26,446 | $622 |
| Prepaid expenses and other current assets | $46,490 | $28,966 |
| Total current assets | $1,666,457 | $606,516 |
| Long-term investments | $80,970 | $31,627 |
| Property and equipment, net | $155,383 | $50,704 |
| Operating lease right-of-use assets | $94,291 | $31,879 |
| Deferred income taxes | $— | $61,460 |
| Intangibles, net | $971,787 | $48,711 |
| Goodwill | $2,623,669 | $256,781 |
| Other assets | $45,909 | $32,889 |
| Total assets | $5,638,466 | $1,120,567 |
| Accounts payable | $119,531 | $72,462 |
| Wages and related accruals | $79,294 | $44,253 |
| Customer advances | $71,167 | $15,952 |
| Current operating lease liabilities | $14,829 | $10,479 |
| Income taxes payable | $215 | $356 |
| Other current liabilities | $42,991 | $28,659 |
| Total current liabilities | $328,027 | $172,161 |
| Long-term debt | $726,793 | $30,000 |
| Non-current operating lease liabilities | $84,313 | $23,812 |
| Other non-current liabilities | $2,003 | $2,026 |
| Liability for uncertain tax positions | $6,061 | $6,061 |
| Deferred income taxes | $73,188 | $— |
| Common stock, $0.0001 par value: Issued and outstanding shares—49,927,306 shares at November 1, 2025 and 28,267,517 shares at April 30, 2025 | $6 | $4 |
| Additional paid-in capital | $4,234,464 | $618,711 |
| Accumulated other comprehensive loss | $-6,222 | $-6,514 |
| Retained earnings | $189,833 | $274,306 |
| Total stockholders’ equity | $4,418,081 | $886,507 |
| Total liabilities and stockholders’ equity | $5,638,466 | $1,120,567 |