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.