D

AIRO Group Holdings, Inc. — Earnings Quality Grade D

AIRO · Industrials

Significant concerns

Revenue
$91M
2025
Net Income
-$4M
2025
Gross Margin
59.9%
Free Cash Flow
-$36M
01

Screening Summary

7
Passed
8
Watch
2
Failed
-1.95
M-Score

Management Signals

No recent CEO, CFO, board, or accounting leadership signals found in SEC 8-K filings.
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

!
A1DSO Change

DSO increased by 12 days

A2AR vs Revenue Growth

AR outpaced revenue for 2 consecutive years

A3Revenue vs CFFO

Revenue 4.6%, CFFO -251.0%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

Inventory 31.9% vs COGS 27.5%. Normal

!
B2CapEx vs Revenue

CapEx growth 289.6% is >2x revenue growth 4.6%

!
B3SG&A Ratio

SG&A/Gross Profit = 119.9%, exceeds 70%

!
B4Gross Margin

Gross margin swung -7.2pp (67.1% → 59.9%)

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 7.90. Profits backed by cash

!
C2Free Cash Flow

FCF is negative ($-0.0B)

C3Accruals Ratio

Accruals ratio = 3.7%. Low accruals

C4Cash vs Debt

Cash $0.1B covers debt $0.0B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $0.7B = 89% of equity. Over 50%

!
D2Leverage

Interest coverage = -2.9x (<2x). Financial stress

!
D3Soft Asset Growth

Other assets grew 24.5% vs revenue 4.6%

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Goodwill+Intangibles change 1% YoY. Normal

06

Manipulation Score

!
F1Beneish M-Score

M-Score = -1.95 (grey zone)

Portfolio monitoring

Monitor AIRO continuously

The full checks and model details are free to read. Use Watchlist to track your holdings; Pro adds automatic quarterly rescoring, risk-event email alerts, scans up to 50 tickers, and export workflows.

04

Beneish M-Score

Manipulation Probability-1.95
-4.0 Clean-2.22 Grey-1.78 Danger0
1.322
DSRI
AR growing faster than revenue?
1.121
GMI
Gross margin declining?
0.911
AQI
Asset quality deteriorating?
1.046
SGI
Revenue growth rate
1.271
DEPI
Depreciation slowing?
2.535
SGAI
SG&A ratio changing?
0.0366
TATA
Accruals level
0.292
LVGI
Leverage increasing?
05

Altman Z-Score

22.07
Safe Zone
0 Distress1.102.605.0+ Safe
0.0977
Liquidity
-0.272
Cumulative profit
0.0165
Operating efficiency
21.1518
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25