AIRO Group Holdings, Inc.

Recently-IPO'd, well-capitalized aerospace/defense platform still running operating losses with heavy customer concentration.

Strengths

• Strong gross margin (60%, 70th pct), ample liquidity (current ratio 3.4) and minimal debt after IPO/follow-on raises
• Diversified defense-oriented segments with sizable IDIQ contract exposure

Risks

• Negative operating (-32%) and FCF (-39%) margins; cash-burning and not yet profitable
• Severe customer concentration (two customers = 79% of revenue, all Drones) and early-stage eVTOL/certification risk

Notable findings

• Net lossNet loss (net margin -4.5%)
• Cash burnNegative free cash flow (-35.5M)
• Customer concentration~79% of revenue from one customer/distributor — For the year ended December 31, 2025, two customers accounted for 79% of our consolidated revenue, all of which related to Drone segment revenue
• Revenue declineRevenue -81.6% YoY