AeroVironment reported a significant increase in revenue for the fiscal year ended April 30, 2026, reaching $1.98 billion, a 141% increase from the previous year, largely due to the acquisitions of BlueHalo and ESAero. The company experienced a substantial net loss of $265.1 million for the fiscal year, primarily driven by a $240.7 million goodwill impairment charge related to the cancellation of a Space Forces contract and increased operating expenses. Despite revenue growth, the cost of sales increased disproportionately, leading to a significant decrease in gross margin from 39% to 25%. Selling, general, and administrative (SG&A) expenses also rose significantly, partly due to increased amortization from acquisitions and higher employee-related costs. The company reported material weaknesses in its internal control over financial reporting, specifically related to IT general controls for BlueHalo and the goodwill impairment analysis process. AeroVironment's backlog stood at $1.18 billion as of April 30, 2026, with approximately 85% expected to be recognized as revenue in fiscal year 2027. The company's cash position improved significantly, with cash and cash equivalents increasing to $377.3 million from $40.9 million, largely due to proceeds from stock and convertible note offerings.