AIRO Group Holdings, Inc. Common Stock (AIRO) Cash Flow Statement

The most important signal is that reported net income and operating cash flow frequently move in opposite directions, with 2025Q4 showing near-breakeven earnings alongside $4.1M of operating cash inflow while 2026Q2 shows a small loss alongside $31.3M of outflow. This pattern suggests that accrual-based earnings are not reliably translating into cash, and investors should monitor whether the -$33.9M working capital outflow in 2026Q2 reverses or reflects structural billing and collection timing. The ratio is unstable in both sign and magnitude across quarters, so it carries limited standalone weight without the underlying drivers.

Free cash flow has been negative in most of the ten reported quarters, with the only positive stretches, such as 2024Q4 and 2025Q4, appearing driven by working capital timing rather than repeatable operating strength. The sharp deterioration to -$33.8M of FCF in 2026Q2 warrants further investigation to determine whether it reflects a one-time working capital build or a broader shift in operating economics. Because CapEx is consistently small relative to revenue, the negative FCF is primarily an operating phenomenon rather than a capital intensity issue.

Capital spending has run below quarterly depreciation in most periods, suggesting the company is not currently reinvesting at a rate that replaces its asset base, though the absolute dollar amounts are modest. The elevated CapEx/Revenue ratio in 2026Q1 at 23.3% reflects low revenue in that quarter rather than a step-up in investment spending. Low capital intensity means cash burn is driven by operations and working capital rather than heavy infrastructure outlays, so capex alone does not explain the magnitude of recent outflows.

Working capital movements appear to be the dominant driver of reported operating cash flow, with cash conversion moving in step with these swings rather than with reported profitability. The -$33.9M outflow in 2026Q2 against -$2.0M of net income suggests a substantial build in receivables, inventory, or other operating assets, although the statements provided do not allow the specific components to be isolated. Investors should monitor whether this build is recoverable through collections, since persistent working capital absorption would weigh on liquidity regardless of reported earnings.

The absence of dividends and the limited, irregular buyback activity indicate that cash generated or retained is not being returned to shareholders in any consistent way. The $20.0M repurchase in 2025Q3 occurred during a quarter with negative operating cash flow of -$5.8M, which warrants further investigation into its funding source and whether it reflected opportunistic capital management. Given the persistent FCF deficit, the company's ability to fund future deployment appears dependent on working capital normalization rather than internally generated surplus.