What changed in AeroVironment Inc's 10-K — 2024 vs 2025
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Paragraph-level year-over-year comparison of AeroVironment Inc's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.
+401 added−446 removedSource: 10-K (2025-06-25) vs 10-K (2024-06-27)
Top changes in AeroVironment Inc's 2025 10-K
401 paragraphs added · 446 removed · 315 edited across 2 sections
- Item 6. [Reserved]+364 / −409 · 285 edited
- Item 1C. Cybersecurity+37 / −37 · 30 edited
Item 1C. Cybersecurity
Cybersecurity — threats and controls disclosure
30 edited+7 added−7 removed4 unchanged
Item 1C. Cybersecurity
Cybersecurity — threats and controls disclosure
30 edited+7 added−7 removed4 unchanged
2024 filing
2025 filing
Biggest changeAny future determination related to dividend policy will be made at the discretion of our board of directors and will depend upon, among other factors, our results of operations, financial condition, capital requirements, capital allocation policy, expected return on invested capital, contractual restrictions and such other factors as our board of directors deems relevant. 58 Table of Contents Stock Price Performance Graph The following graph shows a comparison of cumulative returns on our common stock, based on the market price of the common stock, with the cumulative total returns of companies in the Russell 2000 Index and the SPADE Defense Index. The following table shows the value of $100 invested on April 30, 2019 in AeroVironment, Inc., the Russell 2000 Index and the SPADE Defense Index. Performance Graph Table ($) April 30, April 30 April 30, April 30, April 30 April 30, 2019 2020 2021 2022 2023 2024 AeroVironment, Inc.
Biggest changeAny future determination related to dividend policy will be made at the discretion of our board of directors and will depend upon, among other factors, our results of operations, financial condition, capital requirements, capital allocation policy, expected return on invested capital, contractual restrictions and such other factors as our board of directors deems relevant.
All members of the board of directors are invited to attend all meetings of the Cybersecurity Committee and the committee regularly briefs the entire board of directors regarding their oversight of our cybersecurity program. Cybersecurity Threats We have experienced cybersecurity incidents in the past and will experience cybersecurity incidents in the future.
All members of the Board of Directors are invited to attend all meetings of the Cybersecurity Committee, and the committee regularly briefs the entire board regarding their oversight of our cybersecurity program. Cybersecurity Threats We have experienced cybersecurity incidents in the past and will experience cybersecurity incidents in the future.
The Cybersecurity Committee also meets with members of the Cybersecurity Council to discuss various aspects of our cybersecurity program in between regular meetings.
The Cybersecurity Committee also meets with members of the Cybersecurity Council to discuss various aspects of our cybersecurity program between regular meetings.
Our CISO and Cybersecurity Director provide presentations to the Cybersecurity Committee on our cybersecurity program at each of the committee’s regularly scheduled quarterly meetings. These briefings include assessments of the cyber risk and threats landscape, updates on incidents, policies and procedures, and our investments and plans in cybersecurity risk mitigation and governance.
Our CIO, CISO, and VP of Cybersecurity provide presentations to the Cybersecurity Committee on our cybersecurity program at each of the committee’s regularly scheduled quarterly meetings. These briefings include assessments of the cyber risk and threats landscape, updates on incidents, policies and procedures, and our investments and plans in cybersecurity risk mitigation and governance.
As of June 19, 2024, there were 106 holders of record of our common stock. Dividends To date we have retained all earnings for use in the operation and expansion of our business and do not anticipate paying any cash dividends in the foreseeable future.
As of June 19, 2025, there were 419 holders of record of our common stock. Dividends To date we have retained all earnings for use in the operation and expansion of our business and do not anticipate paying any cash dividends in the foreseeable future.
Given the cybersecurity risks we face, we believe it is imperative that we dedicate ample resources to addressing and mitigating our cyber risks. Risk Management and Strategy Our cybersecurity program is designed to identify, detect, protect against, respond to, and recover from cyber risks from the cyber threats we face.
Given the cybersecurity risks we face, we dedicate ample resources to addressing and mitigating our cyber risks. Risk Management and Strategy Our cybersecurity program is designed to identify, detect, protect against, respond to, and recover from cyber risks and incidents.
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. Common Stock On June 19, 2024, the closing sales price of our common stock as reported on the NASDAQ Global Select Market, where it trades under the symbol AVAV, was $219.31 per share.
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. Common Stock On June 18, 2025, the closing sales price of our common stock as reported on the NASDAQ Global Select Market, where it trades under the symbol AVAV, was $190.04 per share.
It is not possible to predict the outcome of any legal proceeding with any certainty. The outcome or costs we incur in connection with a legal proceeding could adversely impact our operating results and financial position. Item 4. Mine Safety Disclosur e. Not applicable. PART II Item 5.
The outcome or costs we incur in connection with a legal proceeding could adversely impact our operating results and financial position. Item 4. Mine Safety Disclosur e. Not applicable. PART II Item 5.
Prior cybersecurity incidents have not materially affected, or are reasonably likely to affect, our business strategy, results of operations or financial condition, however, there is no guarantee that a future cybersecurity incident would not have a material adverse effect on such items.
Prior cybersecurity incidents have not materially affected, or are reasonably likely to affect, our business strategy, results of operations or financial condition; however, there is no guarantee that a future cybersecurity incident would not have a material adverse effect on such items. While our cybersecurity program is designed to mitigate cybersecurity risks, we cannot eliminate all risks from cybersecurity threats.
The lawsuit was dismissed in April 2024. On March 29, 2024, a former employee filed a complaint against AeroVironment in the Ventura County Superior Court in California, alleging violations of the California Labor Code related to wages, meal breaks, overtime, unreimbursed business expenses and other recordkeeping matters and seeking penalties recoverable under California Labor Code section 2698, et. seq., Private Attorney General Act of 2004 (“PAGA”) and all other remedies available under PAGA.
The parties participated in a mediation session on May 8, 2025, but did not reach a resolution during the session. On March 29, 2024, a former employee filed a complaint against AeroVironment in the Ventura County Superior Court in California, alleging violations of the California Labor Code related to wages, meal breaks, overtime, unreimbursed business expenses and other recordkeeping matters and seeking penalties recoverable under California Labor Code section 2698, et. seq., Private Attorney General Act of 2004 (“PAGA”) and all other remedies available under PAGA.
The DART evaluates and assigns severity levels to cybersecurity incidents, and based on the severity, escalates and engages incident response teams based on severity, and responds to and mitigates the related risks. Our cybersecurity team proactively hunts for cyber threats and vulnerabilities in our networks and information systems as part of our cyber risk management program, including by monitoring our networks and systems for intrusions and other suspicious activity.
The DART evaluates and assigns severity levels to cybersecurity incidents and, based on the severity, escalates and engages incident response teams to respond to and mitigate the risks. Our cybersecurity team proactively hunts for cyber threats and vulnerabilities in our networks and information systems as part of our cyber risk management program.
Our customers, suppliers, subcontractors and vendors also face similar threats. Cybersecurity incidents impacting us or any of these third parties could have a material adverse effect on our operations, financial condition and results of operations.
Cybersecurity incidents impacting us, or any of these third parties, could have a material adverse effect on our operations, financial condition, and results of operations.
The CISO and/or Cybersecurity Director report cybersecurity incidents to members of the company’s senior management, including the Cybersecurity Council, and/or the Board of Directors based on the severity and type of the incident to ensure that proper external reporting is completed thoroughly and timely. Pursuant to its charter, the Cybersecurity Committee of our board of directors is responsible for reviewing, discussing, and making recommendations to the full board of directors regarding cybersecurity matters.
The Cybersecurity Council consists of members from our CIO organization as well as senior leadership from various functional areas of the business. The CISO and VP of Cybersecurity report cybersecurity incidents to members of the company’s senior management, including the Cybersecurity Council, CIO, CEO, and the Board of Directors based on the severity and type of the incident to ensure proper external reporting is completed thoroughly and timely. Pursuant to its charter, the Cybersecurity Committee of our Board of Directors is responsible for reviewing, discussing, and making recommendations to the full board regarding cybersecurity matters.
We also engage third parties to conduct evaluations of our cybersecurity controls, such as penetration testing and controlled cybersecurity framework audits.
We also engage third parties to conduct 51 Table of Contents evaluations of our cybersecurity controls by performing penetration testing and controlled cybersecurity framework audits.
We continually improve and revise our cybersecurity practices as new threats and vulnerabilities emerge. Our Chief Information Security Officer (“CISO”) and our Director of Global Cybersecurity (“Cybersecurity Director”) lead our Detection and Response Team (“DART”), which is responsible for our cybersecurity incident response processes pursuant to our Incident Response Plan and playbooks.
Our cybersecurity program is part of our internal risk management processes, and we continually improve our cybersecurity practices as new threats and vulnerabilities emerge. Our Chief Information Officer (“CIO”), Chief Information Security Officer (“CISO”), and Vice President of Cybersecurity, all within our “CIO organization,” lead our Detection and Response Team (“DART”) which is responsible for our cybersecurity incident response processes pursuant to our Incident Response Plan and playbooks.
Given our status as a defense contractor, we are subject to numerous regulations, including those pursuant to the Defense Federal Acquisition Regulation Supplement, (“DFARS”) requiring us to have controls in place to protect U.S. Government controlled unclassified information (“CUI”) and to report cybersecurity incidents to the DoD.
Given our status as a defense contractor, we are subject to numerous regulations, including those pursuant to the Defense Federal Acquisition Regulation Supplement (“DFARS”), requiring us to have controls in place to protect U.S. government CUI and to report cybersecurity incidents to the DoD. We are also subject to the DoD CMMC requirements which necessitates that companies receiving, storing, or processing federal contract information (“FCI”) and CUI be formally assessed by a CMMC C3PAO.
We also lease a total of approximately 280,000 square feet of space in Simi Valley, California, which leases expire between 2025 and 2027, and approximately 150,000 square feet of space in Moorpark, California, which lease expires in 2027, used for administration and to design, engineer, test and manufacture UAS.
Under leases in effect prior to the closing of the BlueHalo acquisition, we also lease (i) a total of approximately 280,000 square feet of space in Simi Valley, California, which leases expire between 2027 and 2030, (ii) approximately 150,000 square feet of space in Moorpark, California, which lease expires in 2027, used for administration and to design, engineer, test and manufacture UAS, and (iii) other facilities in California, Alabama, Kansas, Massachusetts, Florida, Pennsylvania, Minnesota, and Virginia.
We also lease other facilities in California, Alabama, Kansas, Massachusetts, Florida, Pennsylvania, Minnesota, Virginia, and Stuttgart, Germany that are used for administration, research and development, logistics, testing and manufacturing. As of April 30, 2024, our business segments had significant operations at the following locations: ● UxS, LMS, and MW: Simi Valley, CA; Moorpark, CA; Huntsville, AL; Lawrence, KS; Wilmington, MA; Centreville, VA; and Minneapolis, MN. ● UxS: Petaluma, CA; Rohnert Park, CA; San Diego, CA; Melbourne, FL; Stuttgart, Germany and Erie, PA. 57 Table of Contents ● Corporate: Arlington, VA, Moorpark, CA and Simi Valley, CA. Item 3.
We have international locations in Hampton Bishop, United Kingdom, used for business development and program management support, and Stuttgart, Germany, which facilities are used for administration, research and development, logistics, testing and manufacturing of UGV products. As of April 30, 2025, our business segments as in effect during the year ended on such date (Uncrewed Systems, or “UxS;” Loitering Munitions Systems, or “LMS;” and MacCready Works, or “MW”) had significant operations at the following locations: ● UxS, LMS, and MW: Simi Valley, CA; Moorpark, CA; Huntsville, AL; Lawrence, KS; Wilmington, MA; Centreville, VA; and Minneapolis, MN. ● UxS: Petaluma, CA; Rohnert Park, CA; San Diego, CA; Melbourne, FL; Hampton Bishop, United Kingdom; Stuttgart, Germany and Erie, PA. ● Corporate: Arlington, VA, Moorpark, CA and Simi Valley, CA. Additionally in May 2025, we acquired BlueHalo, which has operations in Florida, Pennsylvania, New Mexico, California, Maryland, Virginia, Alabama, and Ohio. 53 Table of Contents Item 3.
We also review the cybersecurity practices of our third-party service providers. We have aligned our cybersecurity program to the National Institute of Standards and Technology’s (“NIST”) published cybersecurity standards and our policies and processes are compliant with NIST Special Publication 800-171 and other applicable publications.
We also maintain an Insider Threat program, headed by our Director of Security, to identify, assess, and deal with potential risks from within our company, including cybersecurity risks. We have aligned our cybersecurity program to the National Institute of Standards and Technology’s (“NIST”) published cybersecurity standards, and our policies and processes are compliant with NIST Special Publication 800-171 and other applicable publications.
The cybersecurity team stays apprised of existing and emerging cybersecurity threats, including by partnering with third parties, such as the U.S. government, law enforcement agencies, customers, and other defense industry participants to share and receive information on emerging threats and expanding our cybersecurity knowledge and global monitoring practices.
The cybersecurity team stays apprised of existing and emerging cybersecurity threats through commercial threat intelligence feeds and by partnering and data sharing with third parties such as the U.S. government, law enforcement agencies, customers, and other Defense Industrial Base (“DIB”) participants.
While we believe we are in a good position to meet the requirements of CMMC, if we fail to achieve certification in advance of contract awards, or we fail to achieve certification at the level required for a particular contract award, we will be unable to bid on such contract awards or follow-on awards for existing work with the DoD, which could adversely impact our results of operations.
If we fail to achieve or maintain certification ahead of contract awards, or if we fail to achieve the level required for a particular contract, we will be unable to bid on new contracts or follow-on efforts containing CMMC clauses, which could adversely impact the success of our operations.
The complaint seeks civil penalties on behalf of the plaintiff and similarly situations persons pursuant to PAGA. We filed our answer on June 20, 2024. We expect discovery will commence shortly. We are subject to lawsuits, government investigations, audits and other legal proceedings from time to time in the ordinary course of our business.
The complaint seeks civil penalties on behalf of the plaintiff and similarly situations persons pursuant to PAGA. We filed our answer on June 20, 2024.
While we believe our cybersecurity program is designed to mitigate cybersecurity risks, we cannot eliminate all risks from cybersecurity threats. See Item 1A. Risk Factors for more information on our cybersecurity risks. Item 2. Propertie s. All of our facilities are leased. Our corporate headquarters are located in Arlington, Virginia where we currently occupy approximately 2,000 square feet.
See Item 1A. Risk Factors for more information on our cybersecurity risks. Item 2. Propertie s. As of April 30, 2025, our facilities are primarily leased. Our corporate headquarters are located in Arlington, Virginia where we currently occupy approximately 7,400 square feet under an amended lease agreement expiring in June 2030.
Item 1C. Cybersecurity We face various cybersecurity threats, including denial-of-service attacks, ransomware, phishing, and advanced persistent threats. In addition, as an aerospace and defense company that provides sophisticated defense products and services to the U.S. and foreign governments, we are also subject to cybersecurity risks from organized adversaries, including groups affiliated with various nation states.
As an aerospace and defense company providing advanced defense technologies and services to the U.S. and foreign governments, these threats are not just from low-level threat actors, but rise to the level of sophisticated threat actors from organized and funded adversaries, including groups affiliated with various nation states. Our customers, suppliers, subcontractors, and vendors also face similar threats.
Our CISO, who has approximately 24 years in various information technology and cybersecurity roles, and our Cybersecurity Director, who has approximately 20 years of experience in various cybersecurity roles, are primarily responsible for our overall cybersecurity risk management program and supervise both internal and external resources to identify, protect against, detect, respond to, and recover from cybersecurity risks, threats, and incidents. Our Cybersecurity Director leads our internal Cybersecurity Council, which meets monthly to help implement management’s cybersecurity strategy and to monitor and manage our cybersecurity threats and risks.
Our CISO and team are primarily responsible for our overall cybersecurity risk management program and supervise both internal and external resources to identify, protect against, detect, respond to, and recover from cybersecurity risks, threats, and incidents. 52 Table of Contents We have internal Cybersecurity Council which meets monthly to help communicate our enterprise cybersecurity strategy and ensure it is implemented across the business, as well as maintain awareness of events and changes occurring throughout the business.
Stock 100 88 161 117 147 232 Russell 2000 Index 100 82 142 117 111 127 SPADE Defense Index 100 88 122 118 131 166 The stock price performance shown on the graph above is not necessarily indicative of future price performance.
Stock 100 183 133 167 264 254 Russell 2000 Index 100 173 142 135 154 151 SPADE Defense Index 100 139 135 149 190 226 The stock price performance shown on the graph above is not necessarily indicative of future price performance.
The DART consists of members of our IT department responsible for protecting against, detecting, containing, mitigating, and recovering from cybersecurity incidents.
The DART also includes members of our IT department responsible for supporting the technologies and processes to protect against, detect, contain, mitigate, and recover from cybersecurity incidents.
Additionally, our subcontractors, and certain of our vendors, may also need to comply with CMMC requirements and, potentially obtain CMMC certification. We may be negatively impacted if our subcontractors or vendors are not compliant with CMMC requirements. We require our employees to take cybersecurity-related training regularly that promotes awareness of how to detect, report, and respond to cybersecurity threats.
Additionally, our subcontractors and certain vendors may need to obtain CMMC certification, and we may be negatively impacted if they are not compliant with the CMMC requirements. Governance Our CIO, CISO, and VP of Cybersecurity, each with 20+ years of related experience, are responsible for the day-to-day management of our cybersecurity program and cybersecurity risks.
In addition, this graph shall not be deemed filed under either the Securities Act or the Exchange Act. Securities Authorized for Issuance Under Equity Compensation Plans See Notes 13 and 14 in the Notes to Consolidated Financial Statements for further information on our stock-based compensation and long-term equity awards. Issuer Purchases of Equity Securities Our share repurchase program announced September 2015 was terminated by our Board of Directors in September 2022. 59 Table of Contents
In addition, this graph shall not be deemed filed under either the Securities Act or the Exchange Act. Securities Authorized for Issuance Under Equity Compensation Plans The information required by Item 5 of Form 10-K regarding equity compensation plans is incorporated herein by reference to Item 12 of Part III of this Annual Report on Form 10-K. Issuer Purchases of Equity Securities None. 55 Table of Contents
Employees with certain roles and responsibilities are also assigned cyber training for their specific functions.
We also review the cybersecurity practices of our third-party service providers and suppliers. We require our employees to take cybersecurity-related training regularly to promote awareness of how to detect, report, and respond to cybersecurity threats. Employees with certain roles and responsibilities are also assigned cyber training for their specific functions.
Removed
Our cybersecurity program is part of our internal risk management processes.
Added
Item 1C. Cybersecurity We face various cybersecurity threats as a prominent target, including denial-of-service attacks, ransomware, phishing, and advanced persistent threats.
Removed
We will also be subject to the DoD Cybersecurity Maturity Model Certification (“CMMC”) requirements, which will require companies like AeroVironment that do business with the DoD to obtain specific third-party certifications relating to specified cybersecurity standards to be eligible for new contract awards. We are in the process of preparing for the CMMC requirements.
Added
This includes monitoring our networks and systems for indicators of compromise (“IOCs”), active intrusion attempts, and other suspicious activity, including insider threat risks.
Removed
We also maintain an Insider Threat program, headed by our Director of Security, to identify, assess and deal with potential risks from within our company, including cyber risks. 56 Table of Contents Governance Our CISO and our Cybersecurity Director are responsible for the day-to-day management of our cybersecurity program and cybersecurity risks.
Added
AeroVironment, Inc., including its subsidiaries Arcturus UAS and Tomahawk Robotics (but excluding any of the BlueHalo acquired entities) is scheduled for a formal Level 2 assessment. The recently acquired BlueHalo passed a formal CMMC Level 2 assessment under the CMMC 2.0 framework, which went into effect December 16, 2024.
Removed
Our Cybersecurity Council consists of the Cybersecurity Director, CISO, Chief Financial Officer, General Counsel and Chief Compliance Officer, Chief Technology Officer, Vice President of Internal Audit, Vice President of Global Supply Chain, Director of Security, and Sr. Manager of Contracts Operations and Compliance.
Added
The parties stipulated to stay this PAGA case ahead of the mediation in the class action matter listed in the immediately preceding paragraph above. On June 11, 2025, the parties reached an agreement in principle to settle all claims in the class action complaint and PAGA complaint pursuant to a mediator’s proposal made on such a date by the mediator from the May 8, 2025 class action mediation session.
Removed
In 2024, we expect to move into a larger corporate headquarters space consisting of approximately 7,400 square feet in the same building as the current headquarters space under an amended lease agreement expiring in June 2030.
Added
A court must approve the terms of the settlement before we will pay any amounts pursuant to the settlement.
Removed
Written and oral discovery are ongoing. On January 22, 2024, a former employee filed a class action complaint against AeroVironment in the Ventura County Superior Court in California alleging that AeroVironment did not indemnify and reimburse employees for certain tools and equipment purchased by such employees needed to discharge their job duties.
Added
The estimated settlement was accrued in our consolidated statements of income(loss) for the year ended April 30, 2025. We are subject to lawsuits, government investigations, audits and other legal proceedings from time to time in the ordinary course of our business. It is not possible to predict the outcome of any legal proceeding with any certainty.
Removed
In April 2024, in order to avoid the future cost, expense, and distraction of litigation, we executed a settlement agreement, under which we did not admit to any fault or wrongdoing, with the former employee to settle the employee’s individual claims against the Company for an immaterial, confidential amount.
Added
The terms of our Credit Agreement restrict our ability to pay dividends. 54 Table of Contents Stock Price Performance Graph The following graph shows a comparison of cumulative returns on our common stock, based on the market price of the common stock, with the cumulative total returns of companies in the Russell 2000 Index and the SPADE Defense Index. The following table shows the value of $100 invested on April 30, 2020 in AeroVironment, Inc., the Russell 2000 Index and the SPADE Defense Index. Performance Graph Table ($) April 30, April 30 April 30, April 30, April 30 April 30, 2020 2021 2022 2023 2024 2025 AeroVironment, Inc.
Item 6. [Reserved]
Selected Financial Data — reserved (removed by SEC in 2021)
285 edited+79 added−124 removed196 unchanged
Item 6. [Reserved]
Selected Financial Data — reserved (removed by SEC in 2021)
285 edited+79 added−124 removed196 unchanged
2024 filing
2025 filing
Biggest changeAdjusted operating income is defined as operating income before impairment of goodwill and accelerated amortization, intangible amortization, amortization of purchase accounting adjustments, and acquisition related expenses. Year Ended April 30, 2024 UxS LMS MW Total Revenue: Product sales $ 415,074 $ 168,863 $ 1,834 $ 585,771 Contract services 32,932 23,724 74,293 130,949 $ 448,006 $ 192,587 $ 76,127 $ 716,720 Segment adjusted income (loss) from operations $ 93,122 $ 24,062 $ (24,706) Year Ended April 30, 2023 UxS LMS MW Total Revenue: Product sales $ 268,021 $ 84,686 $ 355 $ 353,062 Contract services 75,889 35,938 75,647 187,474 $ 343,910 $ 120,624 $ 76,002 $ 540,536 Segment adjusted income from operations $ 30,568 $ 8,074 $ 3,664 67 Table of Contents Year Ended April 30, 2022 UxS LMS MW Total Product sales $ 194,517 $ 46,162 $ 4 $ 240,683 Contract services 106,226 30,253 68,570 205,049 $ 300,743 $ 76,415 $ 68,574 $ 445,732 Segment adjusted income (loss) from operations $ 28,703 $ (2,823) $ 5,794 The Company recorded intangible amortization expense and other purchase accounting adjustments in the following categories on the accompanying consolidated statements of income (loss): Year Ended April 30, 2024 2023 2022 Cost of sales: Product sales $ 8,214 $ 4,091 $ 8,301 Contract services 5,334 9,915 10,331 Selling, general and administrative 5,010 49,561 18,075 Total $ 18,558 $ 63,567 $ 36,707 Fiscal Year Ended April 30, 2024 Compared to Fiscal Year Ended April 30, 2023 Revenue.
Biggest changeWe will begin to report our segments in the new structure in our Quarterly Report on Form 10-Q for the quarter ending July 26, 2025, the period in which the new organizational structure became effective. 63 Table of Contents Also effective May 1, 2025 due to the increased size and complexity of the businesses, the significant amount of debt to finance the acquisition and the related debt covenants, the Chief Operating Decision Maker’s (“CODM”) measure of profitability for the new reportable segments will be Segment Adjusted EBITDA, defined as income from operations before interest income, interest expense, income tax expense (benefit) and depreciation and amortization, adjusted for the impact of certain other non-cash items, including goodwill impairment, amortization of implementation of cloud computing arrangements, stock-based compensation, other purchase accounting adjustments and cash items including acquisition related expenses. Year Ended April 30, 2025 UxS LMS MW Total Revenue: Product sales $ 352,932 $ 333,506 $ 6,284 $ 692,722 Contract services 28,846 18,471 80,588 127,905 381,778 351,977 86,872 820,627 Less: Cost of sales 213,133 223,422 65,436 501,991 Add: Intangible amortization included in cost of sales 18,480 — 925 19,405 Segment adjusted gross margin $ 187,125 $ 128,555 $ 22,361 Year Ended April 30, 2024 UxS LMS MW Total Revenue: Product sales $ 415,074 $ 168,863 $ 1,834 $ 585,771 Contract services 32,932 23,724 74,293 130,949 448,006 192,587 76,127 716,720 Less: Cost of sales 249,763 124,363 58,663 432,789 Add: Intangible amortization included in cost of sales 12,280 — 1,268 13,548 Segment adjusted gross margin $ 210,523 $ 68,224 $ 18,732 Year Ended April 30, 2023 UxS LMS MW Total Revenue: Product sales $ 268,021 $ 84,686 $ 355 $ 353,062 Contract services 75,889 35,938 75,647 187,474 343,910 120,624 76,002 540,536 Less: Cost of sales 231,960 77,888 57,174 367,022 Add: Intangible amortization included in cost of sales 12,731 — 1,275 14,006 Segment adjusted gross margin $ 124,681 $ 42,736 $ 20,103 64 Table of Contents We recorded intangible amortization expense and other purchase accounting adjustments in the following categories on the accompanying consolidated statements of income (loss): Year Ended April 30, 2025 2024 2023 Cost of sales: Product sales $ 15,018 $ 8,214 $ 4,091 Contract services 4,387 5,334 9,915 Selling, general and administrative 4,001 5,010 49,561 Total $ 23,406 $ 18,558 $ 63,567 Fiscal Year Ended April 30, 2025 Compared to Fiscal Year Ended April 30, 2024 Revenue.
Specifically, we received notification that we were not down selected for a U.S. DoD program of record which resulted in a significant decrease in the projected future cash flows of the MUAS reporting unit.
Specifically, we received notification that we were not down selected for a U.S. DoD program of record which resulted in a significant decrease in the projected future cash flows of the MUAS reporting unit.
Department of Defense (“DoD”), other federal agencies and to international allied governments. Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements include the accounts of AeroVironment, Inc. and its wholly-owned subsidiaries Arcturus UAV, Inc. (“Arcturus”), Telerob Gesellschaft für Fernhantierungstechnik mbH (“Telerob”) and Tomahawk Robotics, Inc.
Department of Defense (“DoD”), other federal agencies and to international allied governments. Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements include the accounts of AeroVironment, Inc. and its wholly-owned subsidiaries Arcturus UAV, Inc. (“Arcturus”), Telerob Gesellschaft für Fernhantierungstechnik mbH (“Telerob”), Tomahawk Robotics, Inc.
Actual results can be materially different from the estimates and assumptions.
Actual results can be materially different from the estimates and assumptions.
Training services are recognized over time using an output method based on days of training completed. For performance obligations satisfied over time, revenue is generally recognized using costs incurred to date relative to total estimated costs at completion to measure progress. Incurred costs represent work performed, which correspond with, and thereby best depict, transfer of control to the customer.
Training services are recognized over time using an output method based on days of training completed. For performance obligations satisfied over time, revenue is generally recognized using costs incurred to date relative to total estimated costs at completion to measure progress. Incurred costs represent work performed, which correspond with, and thereby best depict, transfer of control to the customer.
At the award date, target achievement levels for each of the financial performance metrics were established for the PRSUs, at which levels the PRSUs would vest at 100% for each such metric.
At the award date, target achievement levels for each of the financial performance metrics were established for the PRSUs, at which levels the PRSUs would vest at 100% for each such metric.
Threshold achievement levels for which the PRSUs would vest at 50% for each such metric and maximum achievement levels for which such awards would vest at 250% for each such metric were also established.
Threshold achievement levels for which the PRSUs would vest at 50% for each such metric and maximum achievement levels for which such awards would vest at 250% for each such metric were also established.
At the award date, target achievement levels for each of the financial performance metrics were established for the PRSUs, at which levels the PRSUs would vest at 100% for each such metric.
At the award date, target achievement levels for each of the financial performance metrics were established for the PRSUs, at which levels the PRSUs would vest at 100% for each such metric.
Threshold achievement levels for which the PRSUs would vest at 50% for each such metric and maximum achievement levels for which such awards would vest at 250% for each such metric were also established.
Threshold achievement levels for which the PRSUs would vest at 50% for each such metric and maximum achievement levels for which such awards would vest at 250% for each such metric were also established.
Events or circumstances that could trigger an impairment review include, but are not limited to, a significant adverse change in legal factors or in the business or political climate, an adverse action or assessment by a regulator, unanticipated competition, a loss of key personnel, significant changes in the manner of the Company’s use of the acquired assets or the strategy for the Company’s overall business, significant negative industry or economic trends or significant underperformance relative to projected future results of operations. The Company’s evaluation of goodwill for impairment involves the comparison of the fair value of each reporting unit to its carrying value.
Events or circumstances that could trigger an impairment review include, but are not limited to, a significant adverse change in legal factors or in the business or political climate, an adverse action or assessment by a regulator, unanticipated competition, a loss of key personnel, significant changes in the manner of our use of the acquired assets or the strategy for the Company’s overall business, significant negative industry or economic trends or significant underperformance relative to projected future results of operations. The Company’s evaluation of goodwill for impairment involves the comparison of the fair value of each reporting unit to its carrying value.
Depreciation of property and equipment, including amortization of leasehold improvements, are provided using the straight-line method over the following estimated useful lives: Machinery and equipment 2 – 7 years Computer equipment and software 2 – 5 years In-service ISR assets 3 years Furniture and fixtures 3 – 7 years Leasehold improvements Lesser of useful life or term of lease Maintenance, repairs and minor renewals are charged directly to expense as incurred.
Depreciation of property and equipment, including amortization of leasehold improvements, are provided using the straight-line method over the following estimated useful lives: Machinery and equipment 2 – 7 years Computer equipment and software 2 – 5 years Buildings 5 years In-service ISR assets 3 years Furniture and fixtures 3 – 7 years Leasehold improvements Lesser of useful life or term of lease Maintenance, repairs and minor renewals are charged directly to expense as incurred.
Refer to Note 21—Business Acquisitions for further details. On September 15, 2023, the Company closed its acquisition of Tomahawk pursuant to a merger agreement, and post-acquisition, Tomahawk has been incorporated into the UxS segment. The assets, liabilities and operating results of Tomahawk have been included in the Company’s consolidated financial statements.
The assets, liabilities and operating results of Planck have been included in the Company’s consolidated financial statements. Refer to Note 21—Business Acquisitions for further details. On September 15, 2023, the Company closed its acquisition of Tomahawk pursuant to a merger agreement, and post-acquisition, Tomahawk has been incorporated into the UxS segment.
At April 30, 2024 and 2023, the Company had no reserve for open incurred cost claim audits. 21. Business Acquisitions Tomahawk Acquisition On September 15, 2023, the Company closed its acquisition of Tomahawk Robotics, Inc., a leader in AI-enabled robotic control systems.
At April 30, 2025 and 2024, the Company had no reserve for open incurred cost claim audits. 21. Business Acquisitions On September 15, 2023, the Company closed its acquisition of Tomahawk Robotics, Inc., a leader in AI-enabled robotic control systems.
In addition, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Under the supervision and with the participation of management, including our principal executive and financial officers, we have assessed our internal control over financial reporting as of April 30, 2024, based on criteria for effective internal control over financial reporting established in Internal Control—Integrated Framework , issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (“COSO”).
In addition, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Under the supervision and with the participation of management, including our principal executive and financial officers, we have assessed our internal control over financial reporting as of April 30, 2025, based on criteria for effective internal control over financial reporting established in Internal Control—Integrated Framework , issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (“COSO”).
The following unaudited pro forma summary presents condensed consolidated information of the Company as if the business acquisition had occurred on May 1, 2022 (in thousands): Year Ended April 30, April 30, 2024 2023 Revenue $ 727,241 $ 551,845 Net income (loss) attributable to AeroVironment, Inc. $ 57,273 $ (190,658) The Company did not have any material, nonrecurring pro forma adjustments directly attributable to the business acquisition included in the reported pro forma revenue and earnings. These pro forma amounts have been calculated by applying the Company’s accounting policies, assuming transaction costs had been incurred during the three months ended July 30, 2022, reflecting the additional amortization that would have been charged and including the results of Tomahawk prior to acquisition. The Company incurred approximately $1,873,000 of acquisition-related expenses for the fiscal year ended April 30, 2024.
The following unaudited pro forma summary presents condensed consolidated information of the Company as if the business acquisition had occurred on May 1, 2022 (in thousands): Year Ended April 30, April 30, 2024 2023 Revenue $ 727,241 $ 551,845 Net income $ 57,273 $ (190,658) The Company did not have any material, nonrecurring pro forma adjustments directly attributable to the business acquisition included in the reported pro forma revenue and earnings. These pro forma amounts have been calculated by applying the Company’s accounting policies, assuming transaction costs had been incurred during the three months ended July 30, 2022, reflecting the additional amortization that would have been charged and including the results of Tomahawk prior to acquisition. The Company incurred approximately $1,873,000 of acquisition-related expenses for the fiscal year ended April 30, 2024.
Our core technological capabilities, developed through more than 50 years of innovation or acquired through acquisitions, include robotics and robotics systems autonomy; modular open systems architecture, sensor design, development, miniaturization and integration; embedded software and firmware; miniature, low power, secure wireless digital communications and networks; lightweight aerostructures; high-altitude systems design, integration and operations; machine vision, machine learning and autonomy; land, maritime and air deployment of munitions and aircraft systems; design and qualification for robotics in extreme terrestrial and space environments; munitions systems warhead integration; low SWaP (Size, Weight and Power) system design and integration; collaborative multi-robotic crewed and uncrewed mission operation; power electronics and electric propulsion systems; efficient electric power conversion, storage systems and high density energy packaging; controls and systems integration; vertical takeoff and landing for fixed wing and hybrid aircraft and rotocraft systems; image stabilization and target tracking; advanced flight control systems; fluid dynamics; human-machine interface development; modular dismounted, networked multi-domain robotic control interfaces and analytic processing architecture; and integrated mission solutions for austere environments. Our business focuses primarily on the design, development, production, marketing, support and operation of innovative UxS and LMS that provide situational awareness, remote sensing, multi band communications, force protection and other information and mission effects to increase the safety and effectiveness of our customers’ operations. Revenue We generate our revenue primarily from the sale, support, design and operation of our UxS and LMS and HAPS.
Our core technological capabilities, developed over more than 50 years of innovation or acquired through acquisitions, include robotics and robotics systems autonomy; modular open systems architecture, sensor design, development, miniaturization and integration; embedded software and firmware; miniature, low power, secure wireless digital communications and networks; lightweight aerostructures; high-altitude systems design, integration and operations; machine vision, machine learning and autonomy; land, maritime and air deployment of munitions and aircraft systems; design and qualification for robotics in extreme terrestrial and space environments; munitions systems warhead integration; low SWaP (Size, Weight and Power) system design and integration; collaborative multi-robotic crewed and uncrewed mission operation; power electronics and electric propulsion systems; efficient electric power conversion, storage systems and high density energy packaging; controls and systems integration; vertical takeoff and landing for fixed wing and hybrid aircraft and rotocraft systems; image stabilization and target tracking; advanced flight control systems; fluid dynamics; human-machine interface development; modular dismounted, networked multi-domain robotic control interfaces and analytic processing architecture; and integrated mission solutions for austere environments. Our business focuses primarily on the design, development, production, marketing, support and operation of innovative UxS and LMS products that provide situational awareness, remote sensing, multi band communications, force protection and other information and mission effects to increase the safety and effectiveness of our customers’ operations. 56 Table of Contents Revenue We generate our revenue primarily from the sale, support, design and operation of our UxS, LMS and HAPS products.
The first year earnout of €2,000,000 (approximately $2,139,000) was not achieved. During the fiscal year ended April 30, 2023, the second year earnout of €2,000,000 (approximately $2,132,000) was achieved and was paid in November 2023. The third earnout of €2,000,000 (approximately $2,139,000) was not achieved.
The first year earnout of €2,000,000 (approximately $2,139,000) was not achieved. During the fiscal year ended April 30, 2023, the second year earnout of €2,000,000 (approximately $2,132,000) was achieved and was paid in November 2023. The third earnout of €2,000,000 (approximately $2,139,000) was not achieved. 22.
Awards under the Fiscal 2024 LTIP consist of: (i) time-based restricted stock awards and time-based restricted stock units, which vest in equal tranches in July 2024, July 2025 and July 2026, and (ii) performance-based restricted stock units (“PRSUs”), which vest based on the Company’s achievement of revenue and non-GAAP adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”) targets for the three-year period ending April 30, 2026.
Awards under the Fiscal 2025 LTIP consist of: (i) time-based restricted stock awards and time-based restricted stock units, which vest in equal tranches in July 2025, July 2026 and July 2027, and (ii) performance-based restricted stock units (“PRSUs”), which vest based on the Company’s achievement of revenue and non-GAAP adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”) targets for the three-year period ending April 30, 2027.
No compensation cost is ultimately recognized for awards for which employees do not render the requisite service and are forfeited. Long-Term Incentive Awards For long-term incentive awards outstanding as of April 30, 2024, the awards include time-based awards which vest equally over three years and performance-based awards which vest based on the achievement of a target payout established at the beginning of each performance period.
No compensation cost is ultimately recognized for awards for which employees do not render the requisite service and are forfeited. Long-Term Incentive Awards For long-term incentive awards outstanding as of April 30, 2025, the awards include time-based awards which vest equally over three years and performance-based awards which vest based on the achievement of a target payout established at the beginning of each performance period.
If actual market conditions are less 65 Table of Contents favorable than those projected by the industry or by us, or if events occur or circumstances change that would reduce the estimated fair value of our indefinite-lived intangible assets below the carrying amounts, we could recognize future impairment charges, the amount of which could be material. Income Taxes Our income tax provision and related income tax assets and liabilities are based on actual and expected future income, U.S. and foreign statutory income tax rates, and tax regulations and planning opportunities in the various jurisdictions in which it operates.
If actual market conditions are less favorable than those projected by the industry or by us, or if events occur or circumstances change that would reduce the estimated fair value of our indefinite-lived intangible assets below the carrying amounts, we could recognize future impairment charges, the amount of which could be material. Income Taxes Our income tax provision and related income tax assets and liabilities are based on actual and expected future income, U.S. and foreign statutory income tax rates, and tax regulations and planning opportunities in the various jurisdictions in which it operates.
As of April 30, 2023, the Company had no costs to fulfill future performance obligations on contracts considered to be probable of occurrence. Stock-Based Compensation Stock-based compensation is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which is generally the vesting period of the respective award.
As of April 30, 2024, the Company had no costs to fulfill future performance obligations on contracts considered to be probable of occurrence. Stock-Based Compensation Stock-based compensation is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which is generally the vesting period of the respective award.
The plan assets consist of reinsurance policies for each of the three pension commitments. The reinsurance policies are fixed-income investments considered a level 2 fair value hierarchy based on observable inputs of the policy. The Company does not expect to make any contributions to the Plan in the fiscal year ending April 30, 2025.
The plan assets consist of reinsurance policies for each of the three pension commitments. The reinsurance policies are fixed-income investments considered a level 2 fair value hierarchy based on observable inputs of the policy. The Company does not expect to make any contributions to the Plan in the fiscal year ending April 30, 2026.
Based on this assessment, management concluded that the Company maintained effective internal control over financial reporting as of April 30, 2024 based on the specified criteria. 130 Table of Contents The effectiveness of our internal control over financial reporting as of April 30, 2024 has been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report which is included herein. Changes in Internal Control over Financial Reporting There were no changes in our internal control over financial reporting or in other factors identified in connection with the evaluation required by paragraph (d) of Exchange Act Rules 13a-15(f) or 15d-15(f) that occurred during the fiscal year ended April 30, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Item 9B.
Based on this assessment, management concluded that the Company maintained effective internal control over financial reporting as of April 30, 2025 based on the specified criteria. 123 Table of Contents The effectiveness of our internal control over financial reporting as of April 30, 2025 has been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report which is included herein. Changes in Internal Control over Financial Reporting There were no changes in our internal control over financial reporting or in other factors identified in connection with the evaluation required by paragraph (d) of Exchange Act Rules 13a-15(f) or 15d-15(f) that occurred during the fiscal year ended April 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Item 9B.
If actual market conditions are less favorable than those projected by the industry or by us, or if events occur or circumstances change that would reduce the estimated fair value of the Company’s indefinite-lived intangible assets below the carrying amounts, the Company could recognize future impairment charges, the amount of which could be material. Product Warranty The Company accrues an estimate of its exposure to warranty claims based upon both current and historical product sales data and warranty costs incurred.
If actual market conditions are less favorable than those projected by the industry or by us, or if events occur or circumstances change that would reduce the estimated fair value of our indefinite-lived intangible assets below the carrying amounts, we could recognize future impairment charges, the amount of which could be material. Product Warranty The Company accrues an estimate of its exposure to warranty claims based upon both current and historical product sales data and warranty costs incurred.
No adjustment on the forward loss reserve for any one contract was material to the Company’s consolidated financial statements for the fiscal years ended April 30, 2024, 2023 or 2022. The impact of adjustments in contract estimates on the Company’s operating earnings can be reflected in either operating costs and expenses or revenue.
No adjustment on the forward loss reserve for any one contract was material to the Company’s consolidated financial statements for the fiscal years ended April 30, 2025, 2024 or 2023. The impact of adjustments in contract estimates on the Company’s operating earnings can be reflected in either operating costs and expenses or revenue.
In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of April 30, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended April 30, 2024, in conformity with accounting principles generally accepted in the United States of America. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of April 30, 2024, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated June 26, 2024, expressed an unqualified opinion on the Company's internal control over financial reporting. Basis for Opinion These financial statements are the responsibility of the Company's management.
In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of April 30, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended April 30, 2025, in conformity with accounting principles generally accepted in the United States of America. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of April 30, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated June 24, 2025, expressed an unqualified opinion on the Company's internal control over financial reporting. Basis for Opinion These financial statements are the responsibility of the Company's management.
The second key factor is that we have hundreds of contracts in any given accounting period, which 62 Table of Contents reduces the risk that any one change in an accounting estimate on one or several contracts would have a material impact on our consolidated financial statements. The substantial majority of our revenue is generated pursuant to written contractual arrangements to design, develop, manufacture and/or modify complex products, and to provide related engineering, technical and other services according to customer specifications.
The second key factor is that we have hundreds of contracts in any given accounting period, which reduces the risk that any one change in an accounting estimate on one or several contracts would have a material impact on our consolidated financial statements. The substantial majority of our revenue is generated pursuant to written contractual arrangements to design, develop, manufacture and/or modify complex products, and to provide related engineering, technical and other services according to customer specifications.
These assumptions include labor productivity and availability, the complexity of the work to be performed, the cost and availability of materials, the performance of subcontractors, and the availability and timing of funding from the customer. The nature of the Company’s contracts gives rise to several types of variable consideration, including undefinitized contract actions which are within the scope of ASC 606 with final contract values to be negotiated, penalty fees and incentive awards generally for late delivery and early delivery, respectively.
These assumptions include labor productivity and availability, the complexity of the work to be performed, the cost and availability of materials, the performance of subcontractors, and the availability and timing of funding from the customer. The nature of the Company’s contracts gives rise to several types of variable consideration, including undefinitized contract actions and unpriced change orders, which are within the scope of ASC 606 with final contract values to be negotiated, penalty fees and incentive awards generally for late delivery and early delivery, respectively.
The actual payout for the PRSUs at the end of the performance period will be calculated based upon the Company’s achievement of the established revenue and non-GAAP adjusted EBITDA targets for the performance period. Settlement of the PRSUs 112 Table of Contents will be made in fully-vested shares of the Company’s common stock.
The actual 107 Table of Contents payout for the PRSUs at the end of the performance period will be calculated based upon the Company’s achievement of the established revenue and non-GAAP adjusted EBITDA targets for the performance period. Settlement of the PRSUs will be made in fully-vested shares of the Company’s common stock.
Our first three quarters end on a Saturday. 66 Table of Contents Results of Operations The following table sets forth certain historical consolidated income statement data expressed in dollars (in thousands) and as a percentage of revenue for the periods indicated.
Our first three quarters end on a Saturday. 62 Table of Contents Results of Operations The following table sets forth certain historical consolidated income statement data expressed in dollars (in thousands) and as a percentage of revenue for the periods indicated.
If the sum of the projected undiscounted cash flows (excluding interest) is less than the carrying value of the assets, the assets will be written down to the estimated fair value in the period in which the determination is made. 91 Table of Contents Cloud Computing Arrangements Implementation costs incurred in a cloud computing arrangement that is a service contract are capitalized and recorded on the consolidated balance sheets in prepaid expenses and other current assets and other assets.
If the sum of the projected undiscounted cash flows (excluding interest) is less than the carrying value of the assets, the assets will be written down to the estimated fair value in the period in which the determination is made. Cloud Computing Arrangements Implementation costs incurred in a cloud computing arrangement that is a service contract are capitalized and recorded on the consolidated balance sheets in prepaid expenses and other current assets and other assets.
We may be required to record additional inventory write-downs if actual market conditions are less favorable than those projected by our management. Intangible Assets – Acquired in Business Combinations We perform valuations of assets acquired and liabilities assumed on each acquisition accounted for as a business combination and allocate the purchase price of each acquired business to our respective net tangible and intangible assets.
We may be required to record additional inventory write-downs if actual market conditions are less favorable than those projected by our management. Intangible Assets – Acquired in Business Combinations We perform valuations of assets acquired and liabilities assumed on each acquisition accounted for as a business combination and allocate the purchase price of each acquired business to our respective net tangible and 60 Table of Contents intangible assets.
These changes in estimates, resulted in the recognition of a goodwill impairment charge of $156.0 million in the MUAS reporting unit recorded during the fiscal year ended April 30, 2023. As of April 30, 2024, our MUAS reporting unit has a goodwill balance of $135.8 million.
These changes in estimates, resulted in the recognition of a goodwill impairment charge of $156.0 million in the MUAS reporting unit recorded during the fiscal year ended April 30, 2023. As of April 30, 2025, our MUAS reporting unit has a goodwill balance of $135.8 million.
For the Company’s contracts, there are no significant gaps between the receipt of payment and the transfer of the associated goods and services to the customer for material amounts of consideration. Revenue recognized for the years ended April 30, 2024, 2023, and 2022 that was included in contract liability balances at the beginning of each year were $13,757,000, $3,413,000 and $3,144,000, respectively. Cost to Fulfill a Contract with a Customer The Company recognizes assets for the costs to fulfill a contract with a customer if the costs are specifically identifiable, generate or enhance resources used to satisfy future performance obligations, and are expected to be recovered in accordance with ASC 340-40 Other Assets and Deferred Costs: Contracts with Customers .
For the Company’s contracts, there are no significant gaps between the receipt of payment and the transfer of the associated goods and services to the customer for material amounts of consideration. Revenue recognized for the years ended April 30, 2025, 2024, and 2023 that was included in contract liability balances at the beginning of each year were $9,980,000, $13,757,000 and $3,413,000, respectively. Cost to Fulfill a Contract with a Customer The Company recognizes assets for the costs to fulfill a contract with a customer if the costs are specifically identifiable, generate or enhance resources used to satisfy future performance obligations, and are expected to be recovered in accordance with ASC 340-40 Other Assets and Deferred Costs: Contracts with Customers .
We 75 Table of Contents anticipate that existing sources of liquidity, Credit Facilities, and cash flows from operations will be sufficient to satisfy our cash needs for the foreseeable future. Our primary liquidity needs are for financing working capital, investing in capital expenditures, supporting product development efforts, support our credit facility, introducing new products and enhancing existing products, marketing acceptance and adoption of our products and services.
We anticipate that existing sources of liquidity, Credit Facilities, and cash flows from operations will be sufficient to satisfy our cash needs for the foreseeable future. Our primary liquidity needs are for financing working capital, investing in capital expenditures, supporting product development efforts, support our credit facility, introducing new products and enhancing existing products, marketing acceptance and adoption of our products and services.
The change to goodwill during the fiscal years ended April 30, 2024 and 2023 in UxS is attributable to the translation of the goodwill related to the Telerob Acquisition, which was recorded in Euros and translated to dollars at each reporting date.
The change to goodwill during the fiscal years ended April 30, 2025 and 2024 in UxS is attributable to the translation of the goodwill related to the Telerob Acquisition, which was recorded in Euros and translated to dollars at each reporting date.
Unbilled receivables represent costs in excess of billings on incomplete contracts and, where applicable, accrued profit related to government long-term contracts on which revenue has been recognized, but for which the customer has not yet been billed. Unbilled receivables are considered contract assets. 90 Table of Contents Retentions represent amounts withheld by customers until contract completion.
Unbilled receivables represent costs in excess of billings on incomplete contracts and, where applicable, accrued profit related to government long-term contracts on which revenue has been recognized, but for which the customer has not yet been billed. Unbilled receivables are considered contract assets. Retentions represent amounts withheld by customers until contract completion.
The Company accounted for the acquisition under the acquisition method of accounting for business combinations. 120 Table of Contents The following table summarizes the final allocation of the purchase price over the estimated fair value of the assets and liabilities assumed in the acquisition of Planck.
The Company accounted for the acquisition under the acquisition method of accounting for business combinations. 114 Table of Contents The following table summarizes the final allocation of the purchase price over the estimated fair value of the assets and liabilities assumed in the acquisition of Planck.
The increase in product revenue was primarily due to $136.1 million from increased product shipments of our SUAS family of systems and Jump 20 product systems driven by increased global demand for our uncrewed systems associated with the current global conflicts as well as U.S. DoD resupply and $10.6 million associated with the recent Tomahawk acquisition.
The increase in product revenue was primarily due to $136.1 million from increased product shipments of our SUAS and MUAS family of systems driven by increased global demand for our uncrewed systems associated with the current global conflicts as well as U.S. DoD resupply and $10.6 million associated with the recent Tomahawk acquisition.
The decrease in our effective tax rate was primarily due to the prior year’s loss before income taxes, an increase in the foreign-derived intangible income deduction and an increase in R&D tax credits, partially offset by the prior year non-deductible goodwill impairment expense. 69 Table of Contents Equity method investment loss, net of tax.
The decrease in our effective tax rate was primarily due to the prior year’s loss before income taxes, an increase in the foreign-derived intangible income deduction and an increase in R&D tax credits, partially offset by the prior year non-deductible goodwill impairment expense. Equity method investment loss, net of tax.
At April 30, 2024, the maximum compensation expense that may be recorded for the performance-based portion of the Fiscal 2024 LTIP PRSUs is $15,836,000. During the three months ended July 30, 2022, the Company granted awards under the 2021 Plan to key employees (“Fiscal 2023 LTIP”).
At April 30, 2025, the maximum compensation expense that may be recorded for the performance-based portion of the Fiscal 2024 LTIP PRSUs is $15,511,000. During the three months ended July 30, 2022, the Company granted awards under the 2021 Plan to key employees (“Fiscal 2023 LTIP”).
For the fiscal years ended April 30, 2024, 2023 and 2022, foreign currency transaction losses that are included in other expense, net in the accompanying consolidated statements of income (loss) were $22,000, $119,000, and $242,000, respectively. Earnings (Loss) Per Share Basic earnings (loss) per share are computed using the weighted-average number of common shares outstanding and excludes any anti-dilutive effects of options, restricted stock and restricted stock units.
For the fiscal years ended April 30, 2025, 2024 and 2023, foreign currency transaction losses that are included in other expense, net in the accompanying consolidated statements of income (loss) were $491,000, $22,000, and $119,000, respectively. Earnings (Loss) Per Share Basic earnings (loss) per share are computed using the weighted-average number of common shares outstanding and excludes any anti-dilutive effects of options, restricted stock and restricted stock units.
Borrowings under the Revolving Facility may be used for working capital and other general corporate purposes. Refer to Note 11—Debt to our financial statements for further details.
Borrowings under the Revolving Facility may be used for working capital, acquisition costs and other general corporate purposes. Refer to Note 11—Debt to our financial statements for further details.
The Company currently expects to recognize approximately 90% of the remaining performance obligations as revenue in fiscal 2025 and an additional 10% in fiscal 2026 . The Company collects sales, value add, and other taxes concurrent with revenue producing activities, which are excluded from revenue when they are both imposed on a specific transaction and collected from a customer. Contract Estimates Accounting for contracts and programs primarily with a duration of less than six months involves the use of various techniques to estimate total contract revenue and costs.
The Company currently expects to recognize approximately 90% of the remaining performance obligations as revenue in fiscal 2026 , an additional 9% in fiscal 2027 and the remaining thereafter . The Company collects sales, value add, and other taxes concurrent with revenue producing activities, which are excluded from revenue when they are both imposed on a specific transaction and collected from a customer. Contract Estimates Accounting for contracts and programs primarily with a duration of less than six months involves the use of various techniques to estimate total contract revenue and costs.
During the fiscal year ended April 30, 2024 and 2023, the Company recorded $3,349,000 and $2,690,000 of compensation expense related to the Fiscal 2023 LTIP PRSUs, respectively.
During the fiscal year ended April 30, 2025, 2024, and 2023, the Company recorded $3,139,000, $3,349,000 and $2,690,000 of compensation expense related to the Fiscal 2023 LTIP PRSUs, respectively.
At April 30, 2024, the maximum compensation expense that may be recorded for the performance-based portion of the Fiscal 2023 LTIP PRSUs is $11,611,000. During the three months ended July 31, 2021, the Company granted awards under its amended and restated 2006 Equity Incentive Plan (the “Restated 2006 Plan”) to key employees (“Fiscal 2022 LTIP”).
At April 30, 2025, the maximum compensation expense that may be recorded for the performance-based portion of the Fiscal 2023 LTIP PRSUs is $11,448,000. During the three months ended July 31, 2021, the Company granted awards under its amended and restated 2006 Equity Incentive Plan (the “Restated 2006 Plan”) to key employees (“Fiscal 2022 LTIP”).
Gross margin is equal to revenue minus cost of sales. Selling, General and Administrative. SG&A expense for the fiscal year ended April 30, 2024 was $114.4 million, or 16% of revenue, as compared to SG&A expense of $131.9 million, or 24% of revenue, for the fiscal year 68 Table of Contents ended April 30, 2023.
Gross margin is equal to revenue minus cost of sales. Selling, General and Administrative. SG&A expense for the fiscal year ended April 30, 2024 was $114.4 million, or 16% of revenue, as compared to SG&A expense of $131.9 million, or 24% of revenue, for the fiscal year ended April 30, 2023.
A contract’s transaction price is allocated to each distinct performance obligation and 94 Table of Contents revenue is recognized when each performance obligation under the terms of a contract is satisfied. Revenue is measured at the amount of consideration the Company expects to receive in exchange for transferring goods or providing services.
A contract’s transaction price is allocated to each distinct performance obligation and revenue is recognized when each performance obligation under the terms of a contract is satisfied. Revenue is measured at the amount of consideration the Company expects to receive in exchange for transferring goods or providing services.
During the fiscal year ended April 30, 2023, due to the closure of all of the Company’s MUAS COCO sites, the Company revised the estimated useful life of the MUAS customer relationship intangible asset which resulted in accelerated intangible amortization expenses of $34,149,000, increasing net loss by $26,158,000, or loss per diluted share of $1.04.
During the fiscal year ended April 30, 2023, due to the closure of all of the Company’s MUAS COCO sites, the Company revised the estimated useful life of the MUAS customer relationship intangible asset which resulted in accelerated intangible amortization expenses of $34,149,000, increasing net loss by $26,158,000, or loss per diluted share of $1.04. 111 Table of Contents 19.
Under the 2021 Plan, incentive stock options, nonqualified stock options, restricted stock awards, stock appreciation right awards, performance share awards, performance stock unit awards, dividend equivalents awards, stock payment awards, deferred stock awards, restricted stock unit awards, other stock-based awards, performance bonus awards or performance-based awards may be granted at the discretion of the compensation committee, which consists of outside directors.
Under the 2021 Plan, incentive stock options, nonqualified stock options, restricted stock awards, stock appreciation right awards, performance 104 Table of Contents share awards, performance stock unit awards, dividend equivalents awards, stock payment awards, deferred stock awards, restricted stock unit awards, other stock-based awards, performance bonus awards or performance-based awards may be granted at the discretion of the compensation committee, which consists of outside directors.
As of April 30, 2024 and 2023, the Company estimated and recorded a self-insurance liability in wages and related accruals of approximately $1,244,000 and $1,383,000, respectively. Income Taxes Deferred income tax assets and liabilities are computed annually for differences between the financial statement and income tax bases of assets and liabilities that will result in taxable or deductible amounts in the future.
As of April 30, 2025 and 2024, the Company estimated and recorded a self-insurance liability in wages and related accruals of approximately $1,559,000 and $1,244,000, respectively. Income Taxes Deferred income tax assets and liabilities are computed annually for differences between the financial statement and income tax bases of assets and liabilities that will result in taxable or deductible amounts in the future.
We derive 60 Table of Contents most of our SUAS, MUAS, LMS and HAPS revenue from fixed-price and cost-plus-fee contracts with the majority from U.S. government and allied foreign governments for SUAS, MUAS, and LMS. Cost of Sales Cost of sales consists of direct costs and allocated indirect costs.
We derive most of our SUAS, MUAS, LMS and HAPS revenue from fixed-price and cost-plus-fee contracts with the majority from U.S. government and allied foreign governments for SUAS, MUAS, and LMS. Cost of Sales Cost of sales consists of direct costs and allocated indirect costs.
The actual payout at the end of the performance period is calculated based upon the Company’s achievement of such targets. Payouts are made in shares of restricted stock which become immediately vested upon issuance. At each reporting period, the Company reassesses the probability of achieving the performance targets.
The actual payout at the end of the performance period is calculated based upon the Company’s achievement of such targets. Payouts are made in shares of restricted stock which become immediately vested upon issuance. 93 Table of Contents At each reporting period, the Company reassesses the probability of achieving the performance targets.
Revenue for Loitering Munitions Systems (“LMS”) product deliveries, customization of uncrewed ground vehicles (“UGV”) transport vehicles and customer-funded R&D contracts is recognized over time as costs are incurred. Contract services revenue is composed of revenue recognized on contracts for the provision of services, including repairs and maintenance, training, engineering design, development and prototyping activities and technical support services.
Revenue for Loitering Munitions Systems (“LMS”) product deliveries, customization of UGV transport vehicles and customer-funded R&D contracts is recognized over time as costs are incurred. Contract services revenue is composed of revenue recognized on contracts for the provision of services, including repairs and maintenance, training, engineering design, development and prototyping activities and technical support services.
The Company’s reportable segments are as follows: UnCrewed Systems—The UxS segment, the renamed UAS segment which consists of the former SUAS, MUAS and UGV segments and the recently acquired Tomahawk, focuses primarily on small UAS products designed to operate reliably at lower altitudes in a wide range of environmental conditions, providing a vantage point from which to collect and deliver valuable information as well as related support including training, spare and accessory parts, product repair, product replacement, maintenance and upgrades; medium UAS products designed to operate reliably at medium altitudes with longer range while carrying larger payloads including airborne platforms, payloads and payload integration, and ground support equipment and other items and services related generally to uncrewed aircraft systems historically including ISR services; UGV products designed to help responders remove, contain or neutralize these hazards in situations where improvised explosive devices, caustic chemicals, nuclear, radiological or biological hazards or violent individuals represent significant danger to humans; and AI-enabled common control and communication solutions that allow any uncrewed system to be controlled from a common user interface while aggregating data from multiple platforms to provide real time intelligence. Loitering Munitions Systems—The LMS segment, which consists of the former Tactical Missile Systems segment, focuses primarily on tube-launched aircraft that deploy with the push of a button, fly at higher speeds than small UAS products, and perform either effects delivery or reconnaissance missions, and related support services including training, spare parts, product repair, and product replacement.
Segments The Company’s reportable segments are as follows: Uncrewed Systems (“UxS”)—The UxS segment focuses primarily on small UAS products designed to operate reliably at lower altitudes in a wide range of environmental conditions, providing a vantage point from which to collect and deliver valuable information as well as related support including training, spare and accessory parts, product repair, product replacement, maintenance and upgrades; medium UAS products designed to operate reliably at medium altitudes with longer range while carrying larger payloads including airborne platforms, payloads and payload integration, and ground support equipment and other items and services related generally to uncrewed aircraft systems including ISR services; UGV products designed to help responders remove, contain or neutralize these hazards in situations where improvised explosive devices, caustic chemicals, nuclear, radiological or biological hazards or violent individuals represent significant danger to humans; and AI-enabled common control and communication solutions that allow any uncrewed system to be controlled from a common user interface while aggregating data from multiple platforms to provide real time intelligence. Loitering Munitions Systems (“LMS”)—The LMS segment focuses primarily on tube-launched aircraft that deploy with the push of a button, fly at higher speeds than small UAS products, and perform either effects delivery or reconnaissance missions, and related support services including training, spare parts, product repair, and product replacement.
The measurement date for the Company’s pension plan was April 30, 2024. The table below includes the projected benefit obligation and fair value of plan assets.
The measurement date for the Company’s pension plan was April 30, 2025. The table below includes the projected benefit obligation and fair value of plan assets.
Please see Note 1 to our consolidated financial statements entitled “Organization and Significant Accounting Policies,” which is included in Part II, Item 8 “Financial Statements and Supplementary Data” of this Annual Report.
Please see Note 1 to our consolidated financial statements entitled “Organization and Significant Accounting Policies,” which is included in Part II, Item 8 “Financial Statements and 58 Table of Contents Supplementary Data” of this Annual Report.
The decrease in service revenue was primarily due to a decrease of $49.7 million due to the closure of all COCO site locations during fiscal year 2023 and a decrease of $11.1 million in other engineering services and customer-funded R&D activities primarily associated with the shift from development to production of certain LMS products, partially offset by $5.3 million associated with the recent Tomahawk acquisition.
The decrease in service revenue was primarily due to a decrease of $49.7 million due to the closure of all COCO site locations during fiscal year 2023 and a decrease of $11.1 million in other engineering services and 68 Table of Contents customer-funded R&D activities primarily associated with the shift from development to production of certain LMS products, partially offset by $5.3 million associated with the recent Tomahawk acquisition. Cost of Sales.
The Company currently invests in equity securities and limited partnership funds. The Company’s revenue and accounts receivable are with a limited number of corporations and governmental entities. In the aggregate, 76%, 68% and 66% of the Company’s revenue came from agencies of the U.S. government for the years ended April 30, 2024, 2023 and 2022, respectively.
The Company currently invests in equity securities and limited partnership funds. The Company’s revenue and accounts receivable are with a limited number of corporations and governmental entities. In the aggregate, 75%, 76% and 68% of the Company’s revenue came from agencies of the U.S. government for the years ended April 30, 2025, 2024 and 2023, respectively.
At April 30, 2024 and 2023, the retention balances were $744,000 and $615,000, respectively. The Company determines the allowance for doubtful accounts based on historical customer experience, age of receivable and other currently available evidence. When a specific account is deemed uncollectible, the account is written off against the allowance.
At April 30, 2025 and 2024, the retention balances were $746,000 and $744,000, respectively. The Company determines the allowance for doubtful accounts based on historical customer experience, age of receivable and other currently available evidence. When a specific account is deemed uncollectible, the account is written off against the allowance.
The decrease in service revenue was primarily due to decreases of $49.7 million from the closure of all COCO site locations during fiscal year 2023, partially offset by an increase of $5.3 million associated with the recent Tomahawk acquisition. UxS Segment Adjusted Income from Operations.
The decrease in service revenue was primarily due to decreases of $49.7 million from the closure of all COCO site locations during fiscal year 2023, partially offset by an increase of $5.3 million associated with the recent Tomahawk acquisition. UxS Segment Adjusted Gross Margin.
Contract costs include labor, materials, subcontractors’ costs, other direct costs, and indirect costs applicable on government and commercial contracts. For performance obligations which are not satisfied over time per the aforementioned criteria above, revenue is recognized at the point in time in which each performance obligation is fully satisfied.
Contract costs include labor, materials, subcontractors’ costs, other direct costs, and indirect costs applicable on government and commercial contracts. 90 Table of Contents For performance obligations which are not satisfied over time per the aforementioned criteria above, revenue is recognized at the point in time in which each performance obligation is fully satisfied.
Due to the net loss for the fiscal years ended April 30, 2023 and 2022, no shares reserved for issuance upon exercise of stock options or shares of unvested restricted stock were included in the computation of diluted loss per share as their inclusion would have been anti-dilutive.
Due to the net loss for the fiscal year ended April 30, 2023, no shares reserved for issuance upon exercise of stock options or shares of unvested restricted stock were included in the computation of diluted loss per share as their inclusion would have been anti-dilutive.
Acquired intangible assets include technology, backlog, in-process research and development, customer relationships, trademarks and tradenames, and non-compete agreements. The Company determines the appropriate useful life by performing an analysis of expected cash flows based on historical experience of the acquired businesses.
Acquired intangible assets include technology, backlog, licenses, in-process research and development, 87 Table of Contents customer relationships, trademarks and tradenames, and non-compete agreements. The Company determines the appropriate useful life by performing an analysis of expected cash flows based on historical experience of the acquired businesses.
During the most recent annual impairment test during the fourth quarter of fiscal year 2024, the estimated fair value of all reporting units, other than MUAS, substantially exceeded their carrying value. The estimates and assumptions used to determine the fair value of our reporting units are highly subjective in nature.
During the most recent annual impairment test during the fourth quarter of fiscal year 2025, the estimated fair value of all reporting units, other than UGV, substantially exceeded their carrying value. The estimates and assumptions used to determine the fair value of our reporting units are highly subjective in nature.
At April 30, 2024 and 2023, the carrying value of the investment in the limited partnership of $19,933,000 and $18,644,000, respectively, was recorded in available-for-sale long-term investments. Investment in Altoy On September 15, 2021, the Company entered into a Share Sale and Purchase Agreement with Toygun whereby the Company sold 35% of the common shares of Altoy to Toygun.
At April 30, 2025 and 2024, the carrying value of the investment in the limited partnership of $30,423,000 and $19,933,000, respectively, was recorded in available-for-sale long-term investments. Investment in Altoy On September 15, 2021, the Company entered into a Share Sale and Purchase Agreement with Toygun whereby the Company sold 35% of the common shares of Altoy to Toygun.
The Company had zero non-vested stock options as of April 30, 2024 and 2023 and the years then ended, respectively. As of April 30, 2024, there was approximately $12,693,000 of total unrecognized compensation cost related to non-vested share-based compensation awards granted under the equity plans.
The Company had zero non-vested stock options as of April 30, 2025 and 2024 and the years then ended, respectively. As of April 30, 2025, there was approximately $12,695,000 of total unrecognized compensation cost related to non-vested share-based compensation awards granted under the equity plans.
Geographic Information Sales to non-U.S. customers, including U.S. government foreign military sales in which an end user is a foreign government, accounted for 62%, 53% and 41% of revenue for each of the fiscal years ended April 30, 2024, 2023 and 2022, respectively.
Geographic Information Sales to non-U.S. customers, including U.S. government foreign military sales in which an end user is a foreign government, accounted for 52%, 62% and 53% of revenue for each of the fiscal years ended April 30, 2025, 2024 and 2023, respectively.
The increase in product sales is primarily due to the shift from development to early-stage production of certain products. The decrease in service revenue is primarily due to a decrease in engineering services and customer-funded R&D due to delays in anticipated contract awards associated with the government budget authorization process. MW Segment Adjusted (Loss) Income from Operations.
The increase in product sales is primarily due to the shift from development to early-stage production of certain products. The decrease in service revenue is primarily due to a decrease in engineering services and customer-funded R&D due to delays in anticipated contract awards associated with the government budget authorization process. MW Segment Adjusted Gross Margin.
The new standard is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. ASU 2023-07 is adopted retrospectively.
The new standard is effective for fiscal years beginning after December 15, 2024 and interim periods within fiscal years beginning after December 15, 2025, with early adoption permitted. ASU 2023-09 is adopted retrospectively.
That cost is expected to be recognized over an approximately two-year period or a weighted average period of approximately 2.1 years. No options were granted during the fiscal years ended April 30, 2024, 2023 and 2022.
That cost is expected to be recognized over an approximately two-year period or a weighted average period of approximately 1.8 years. No options were granted during the fiscal years ended April 30, 2025, 2024 and 2023.
The decrease in service revenue was primarily due to a decrease of $11.9 million in customer-funded R&D activities primarily associated with the shift from development to production of certain Switchblade products. LMS Segment Adjusted Income from Operations.
The decrease in service revenue was primarily due to a decrease of $11.9 million in customer-funded R&D activities primarily associated with the shift from development to production of certain Switchblade products. LMS Segment Adjusted Gross Margin.
The actual payout for the PRSUs at the end of the performance period will be calculated based upon the Company’s achievement of the established revenue and non-GAAP operating income targets for the performance period. Settlement of the PRSUs will be made in fully-vested shares of the Company’s common stock.
The actual payout for the PRSUs at the end of the performance period will be calculated based upon the Company’s achievement of the established revenue and non-GAAP adjusted EBITDA targets for the performance period. Settlement of the PRSUs will be made in fully-vested shares of the Company’s common stock.
The following unaudited pro forma summary presents consolidated information of the Company as if the business acquisition had occurred on May 1, 2021 (in thousands): Year Ended April 30, April 30, 2023 2022 Revenue $ 544,961 $ 448,367 Net loss attributable to AeroVironment, Inc. $ (173,277) $ (5,798) The Company did not have any material, nonrecurring pro forma adjustments directly attributable to the business acquisition included in the reported pro forma revenue and earnings. 121 Table of Contents These pro forma amounts have been calculated by applying the Company’s accounting policies, assuming transaction costs had been incurred during the three months ended July 31, 2021, reflecting the additional amortization that would have been charged and including the results of Planck prior to acquisition. The Company incurred approximately $1,009,000 of acquisition-related expenses for the fiscal year ended April 30, 2023.
The following unaudited pro forma summary presents consolidated information of the Company as if the business acquisition had occurred on May 1, 2021 (in thousands): Year Ended April 30, 2023 Revenue $ 544,961 Net income $ (173,277) 115 Table of Contents The Company did not have any material, nonrecurring pro forma adjustments directly attributable to the business acquisition included in the reported pro forma revenue and earnings. These pro forma amounts have been calculated by applying the Company’s accounting policies, assuming transaction costs had been incurred during the three months ended July 31, 2021, reflecting the additional amortization that would have been charged and including the results of Planck prior to acquisition. The Company incurred approximately $1,009,000 of acquisition-related expenses for the fiscal year ended April 30, 2023.
In the event of a default, an additional 2% 108 Table of Contents default interest rate in addition to the applicable rate if specified or the Base Rate plus Applicable Margin if an applicable rate is not specified.
In the event of a default, an additional 2% default interest rate in addition to the applicable rate if specified or the Base Rate plus Applicable Margin if an applicable rate is not specified.
Additionally, in conjunction with the goodwill 64 Table of Contents impairment test performed during the year ended April 30, 2023, the remaining intangibles in the MUAS reporting unit were tested for recoverability. The asset recoverability test did not result in an impairment for the remaining intangibles in the MUAS reporting unit.
Additionally, in conjunction with the goodwill impairment test performed during the year ended April 30, 2023, the remaining intangibles in the MUAS reporting unit were tested for recoverability. The asset recoverability test did not result in an impairment for the remaining intangibles in the MUAS reporting unit.
Bank National Association, as joint lead arrangers and joint bookrunners (the “Credit Agreement”). The Credit Agreement and its associated Security and Pledge Agreement set forth the terms and conditions for (i) a five-year $100,000,000 revolving credit facility, which includes a $25,000,000 sublimit for the issuance of standby and commercial letters of credit (the “Revolving Facility”), and (ii) a five-year amortized $200,000,000 term A loan (the “Term Loan Facility”, and together with the Revolving Facility, the “Credit Facilities”).
Bank National Association, as joint lead arrangers and joint bookrunners (the “Credit Agreement”). The Credit Agreement and its associated Security and Pledge Agreement set forth the terms and conditions for (i) a five-year $100,000,000 revolving credit facility, which included a $25,000,000 sublimit for the issuance of standby and commercial letters of credit (the “Revolving Facility”), and (ii) a five-year amortized $200,000,000 term A loan drawn in full upon execution (the “Term Loan Facility”, and together with the Revolving Facility, the “Credit Facilities”).
Revenue is recognized at the point in time when control transfers to the customer, which generally occurs when title and risk of loss have passed to the customer. On April 30, 2024, the Company had approximately $400,201,000 of remaining performance obligations under contracts with its customers, which the Company also refers to as backlog.
Revenue is recognized at the point in time when control transfers to the customer, which generally occurs when title and risk of loss have passed to the customer. On April 30, 2025, the Company had approximately $726,627,000 of remaining performance obligations under contracts with its customers, which the Company also refers to as backlog.
Stock-Based Compensation For the years ended April 30, 2024, 2023 and 2022, the Company recorded stock-based compensation expense of approximately $17,069,000, $10,765,000 and $5,390,000, respectively. On September 24, 2021, the stockholders of the Company approved the 2021 Equity Incentive Plan (“2021 Plan”) effective September 24, 2021, for officers, directors, key employees and consultants.
Stock-Based Compensation For the years ended April 30, 2025, 2024 and 2023, the Company recorded stock-based compensation expense of approximately $21,461,000, $17,069,000 and $10,765,000, respectively. On September 24, 2021, the stockholders of the Company approved the 2021 Equity Incentive Plan (“2021 Plan”) effective September 24, 2021, for officers, directors, key employees and consultants.
Employee Savings Plan The Company has an employee 401(k) savings plan covering all eligible employees. The Company expensed approximately $8,554,000, $6,994,000 and $6,842,000 in contributions to the plan for the years ended April 30, 2024, 2023 and 2022, respectively. 11.
Employee Savings Plan The Company has an employee 401(k) savings plan covering all eligible employees. The Company expensed approximately $9,679,000, $8,554,000 and $6,994,000 in contributions to the plan for the years ended April 30, 2025, 2024 and 2023, respectively. 11.
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