Executive Summary
AeroVironment Inc. delivered a robust Q4 2025 top-line, with revenue of $275.05 million, up 39.6% year over year, and a solid gross margin of 36.5%. Net income of $16.66 million and diluted earnings per share of $0.59 reflect a meaningful improvement on a year-over-year basis, supported by a favorable product mix and operational leverage as the company exited a weaker quarter (Q3 2025) with a positive turn in operating income. However, near-term cash flow remained a hurdle: free cash flow was negative at approximately -$8.79 million for the trailing four quarters and operating cash flow in QQ4 2025 was negative by $0.264 million, driven largely by working capital movements such as a noticeable increase in accounts receivable and a sizable working capital unwind. The balance sheet remains healthy on aggregate, with $40.86 million in cash and cash equivalents and low leverage (total debt $64.29 million; net debt around $23.43 million) against a $1.12 billion asset base and $886.51 million in stockholders’ equity. The result is a company with a strong longer-term growth trajectory in unmanned systems—particularly MUAS and HAPS—while needing to monitor cash conversion and working capital dynamics as it scales.
Key Performance Indicators
QoQ: 547.59% | YoY:126.29%
QoQ: 1 050.06% | YoY:175.62%
QoQ: 1 083.33% | YoY:168.18%
Key Insights
Revenue: QQ4 2025 = $275.05m; YoY growth = 39.63%; QoQ growth = 64.08%. Gross Profit: $100.33m; Gross Margin = 36.48%; YoY gross profit growth = 35.30%; QoQ = 58.76%. Operating Income: $13.82m; Operating Margin = 5.02%; YoY operating income growth = 126.29%; QoQ = 547.59%. Net Income: $16.66m; Net Margin = 6.06%; YoY net income growth = 175.62%; QoQ = 1,050.06% (strong QoQ swing helped by operating leverage). EPS (diluted): $0.59; YoY EPS growth = 168.18%; QoQ = 1,083.33%. EBITDA: $27.97m; EBITD...
Financial Highlights
Revenue: QQ4 2025 = $275.05m; YoY growth = 39.63%; QoQ growth = 64.08%. Gross Profit: $100.33m; Gross Margin = 36.48%; YoY gross profit growth = 35.30%; QoQ = 58.76%. Operating Income: $13.82m; Operating Margin = 5.02%; YoY operating income growth = 126.29%; QoQ = 547.59%. Net Income: $16.66m; Net Margin = 6.06%; YoY net income growth = 175.62%; QoQ = 1,050.06% (strong QoQ swing helped by operating leverage). EPS (diluted): $0.59; YoY EPS growth = 168.18%; QoQ = 1,083.33%. EBITDA: $27.97m; EBITDA Margin = 10.17%; Interest Expense: $1.01m; Depreciation & Amortization: $13.85m. Free Cash Flow (trailing four quarters): -$8.79m; Operating Cash Flow (QQ4 2025): -$0.26m. Cash and equivalents: $40.86m; Total debt: $64.29m; Net debt: $23.43m. Total assets: $1.1206b; Total stockholders’ equity: $886.51m.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
275.05M |
39.63% |
64.08% |
| Gross Profit |
100.33M |
35.30% |
58.76% |
| Operating Income |
13.82M |
126.29% |
547.59% |
| Net Income |
16.66M |
175.62% |
1 050.06% |
| EPS |
0.59 |
168.18% |
1 083.33% |
Management Commentary
Transcript data not provided in the supplied dataset. No management quotes or theme-by-theme transcript excerpts are available to cite in this section. Investors should reference the official earnings release and subsequent earnings call transcript for verbatim management commentary and forward-looking remarks.
Forward Guidance
No formal forward-looking guidance was provided in the supplied materials. Given the quarterly cadence, the company benefited from a Q4 surge in revenue and margin expansion, despite a temporary setback in quarterly operating cash flow. Expectations for the upcoming periods will likely hinge on defense budget cycles, DoD/U.S. government procurement timing for UAS platforms (UAS MUAS and HAPS), international demand, and incremental operating efficiencies. Investors should monitor: (1) backlog and order activity for MUAS and HAPS platforms, (2) working capital normalization or pressure (accounts receivable and other current assets), (3) program execution cadence in DoD channels, and (4) any changes in export controls or international orders that could impact revenue mix and margins.