Liquidity is under significant pressure as cash reserves declined from $83.7M in 2025Q3 to $54.2M in 2026Q1, driven by ongoing negative operating cash flow and high capital intensity.
| Cash from Operations | -40.08M | -32.43M | 21.49M | 22.11M | -5.33M | -535.06K |
| Operating CF Margin % | - | -35.68% | 24.71% | 51.11% | -31.18% | -4.54% |
| Operating CF Growth % | -161.37% | -250.95% | -2.81% | 515.04% | -895.45% | - |
| Net Income | -17.58M | -4.1M | -38.69M | -32.46M | -25.55M | -20.53M |
| Depreciation & Amortization | 12.79M | 12.59M | 12.99M | 13.25M | 10.05M | 1.05M |
| Stock-Based Compensation | 19.91M | 19.91M | 716.09K | 1.82M | 2.85M | 3.99K |
| Deferred Taxes | 279K | 279K | -653.88K | 974.75K | -11.2M | 0 |
| Other Non-Cash Items | -29.68M | -33.2M | 47.79M | 19.14M | 8.93M | 17.86M |
| Working Capital Changes | -25.79M | -27.9M | -662.56K | 19.39M | 9.61M | 1.07M |
| Change in Receivables | -5.69M | -1.9M | -8.25M | 225.58K | -25.35K | 251.84K |
| Change in Inventory | -9.17M | -1.71M | -6.36M | -663.52K | 2.81M | 230.66K |
| Change in Payables | -4.65M | -19.2M | 13.88M | 8.91M | 4.49M | 893.05K |
| Cash from Investing | -4.8M | -3.07M | -789.13K | -835.92K | 923.65K | -39.04K |
| Capital Expenditures | -4.8M | -3.07M | -789.13K | -835.92K | -78.81K | -39.04K |
| CapEx % of Revenue | 5.46% | 3.38% | 0.91% | 1.93% | 0.46% | 0.33% |
| Acquisitions | 0 | 0 | 0 | 0 | 873.26K | 0 |
| Investments | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 129.2K | 0 |
| Cash from Financing | 83.93M | 86.41M | -10.58M | -9.29M | 4.75M | 505.2K |
| Debt Issued (Net) | -24.55M | -21.9M | 6.11M | -77.69K | 4.55M | 530.2K |
| Equity Issued (Net) | 121.5M | 121.5M | 0 | 0 | 295.65K | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -19.41M | -19.41M | 0 | 0 | 0 | 0 |
| Other Financing | -13.01M | -13.18M | -16.69M | -9.21M | -90.85K | -25K |
| Net Change in Cash | 40.71M | 53.64M | 7.81M | 12.27M | 765.03K | -68.89K |
| Free Cash Flow | -44.89M | -35.51M | 20.7M | 21.27M | -5.41M | -574.09K |
| FCF Margin % | -51% | -39.06% | 23.81% | 49.17% | -31.64% | -4.87% |
| FCF Growth % | -466.49% | -271.56% | -2.7% | 493.52% | -841.49% | - |
| FCF per Share | -1.43 | -1.50 | 0.83 | 0.85 | -0.22 | -0.02 |
| FCF Conversion (FCF/Net Income) | 2.55x | 7.90x | -0.56x | -0.68x | 0.21x | 0.03x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 134.94K |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 7.76K |
Liquidity and certification hurdles
As reported in quarterly filings, AIRO exhibits a volatile relationship between net income and operating cash flow, evidenced by a 2025Q2 period where the company reported $5.9M in net income while simultaneously suffering a $21.0M outflow from operations, suggesting significant non-cash accruals or working capital timing issues.
The extreme variance in the OCF/NI ratio, which swung from -3.58 in 2025Q2 to 4.94 in 2025Q1, indicates that reported net income is a poor proxy for the company's actual cash-generating capability. Investors should interpret this divergence as a sign that accounting earnings are heavily influenced by non-operating adjustments rather than core operational efficiency.
Based on the provided financial data, AIRO's free cash flow trajectory remains deeply inconsistent, with the company recording a $19.5M outflow in 2026Q1, highlighting the difficulty of sustaining long-term R&D investments without a reliable, recurring source of positive cash flow from its legacy aerospace segments.
The erratic FCF margins, ranging from a positive 59.7% in 2024Q4 to a negative 106.7% in 2025Q3, suggest that the company's cash position is highly sensitive to project-based contract milestones. This volatility warrants further investigation into whether the current cash burn rate is sustainable given the company's limited liquidity profile.
According to historical cash flow statements, AIRO experienced a massive $20.8M working capital drain in 2025Q2, which significantly impacted the company's ability to maintain a stable cash balance and suggests that inventory or receivables management may be creating unpredictable liquidity shocks for the firm.
The frequent, large-scale swings in working capital changes indicate that the company's operational cycle is not yet optimized for cash preservation. This instability may force management to rely on external financing more frequently than a more mature industrial firm would require.
As indicated by the financial statements, AIRO's capital expenditure as a percentage of revenue reached 23.3% in 2026Q1, suggesting that the company is currently in a heavy investment phase that may be necessary to maintain its avionics and drone manufacturing capabilities despite the ongoing operating losses.
The elevated CapEx/Revenue ratio implies that the company is prioritizing infrastructure and technology development over immediate cash conservation. Analysts should monitor whether these capital outlays are successfully translating into the promised certification milestones or if they represent a permanent, high-cost burden on the balance sheet.
Quick answers to the most common questions about buying AIRO stock.
AIRO Group Holdings, Inc. Common Stock (AIRO) generated $-32.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
AIRO Group Holdings, Inc. Common Stock (AIRO) reported negative free cash flow of $35.5M in 2025, indicating capital requirements exceeded cash from operations.
AIRO Group Holdings, Inc. Common Stock (AIRO) spent $3.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, AIRO Group Holdings, Inc. Common Stock (AIRO) spent $19.4M on share repurchases. This shows the company's commitment to returning capital to its equity investors.