Drone stock $AIRO just released a monster Q2 and people are still sleeping on the stock.
Revenue of $43.2M (+76%)
Gross margin of 64% (+3%)
Operating expense of $26M (-25%)
Including G&A Expense of \~$16M (-45%)
Operating income of $1.7M (4% margin)
Net loss $2M
Drone backlog of $163M, +9% from Q1. This figure excludes U.S. backlog, which is expected to meaningfully increase the overall backlog once included.
Achieved Blue UAS certification for the RQ-35, opening U.S. defense procurement opportunities.
Working capital \~$61M
Stockholder's Equity \~$720M, current market cap: $302M.
Takeaways: they were able to grow significantly while still improving their margins. A decrease in operating expenses as revenue is growing is a good sign. What you often see with growth companies is a constant increase in SBC as revenue increases, leaving us the shareholders with nothing in hand. Here I see a clear path to returning value to shareholders.
And I mentioned the stockholder's equity of $720M, meaning a Price/Book ratio of 0.42, which is very attractive.