The restatement and material weakness raise governance and accounting reliability concerns. The SCAR program termination for convenience (subsequent event) further pressures the Space segment. Monitor for potential contract losses, remediation progress, and any follow-on SEC or DOJ inquiries. The stock may face continued selling pressure as the market digests the control deficiency and segment impairment.
Price Chart
Executive Summary
AeroVironment files an amended 10-Q restating Q3 FY2026 financials due to a goodwill impairment calculation error in the Space reporting unit. The restatement increases net loss by $87.3M (to $243.8M for Q3) and loss per share by $1.75, and reveals a material weakness in internal controls over financial reporting. This follows a June 22 8-K that disclosed the restatement and two board resignations.
Key Facts
- Restatement increases net loss by $87.3M for Q3 FY2026 and $87.3M for the nine months ended January 31, 2026
- Basic and diluted loss per share increased by $1.75 (Q3) and $1.79 (nine months)
- Goodwill impairment charge now $240.7M (previously $151.3M) due to SCAR program stop-work order
- Material weakness identified in internal control over financial reporting related to goodwill impairment analysis
- Total assets overstated by $89.4M, stockholders' equity overstated by $87.3M as of January 31, 2026
- Revenue for Q3 FY2026 was $408.0M (up 143% YoY) but net loss was $243.8M vs $1.8M loss a year ago
- BlueHalo acquisition on May 1, 2025 drove revenue growth but also added significant intangible amortization and goodwill
Financial Impact
Net loss increased by $87.3M for both Q3 and nine-month periods; EPS impact of $1.75/$1.79; goodwill impairment increased by $89.4M to $240.7M; deferred tax liability reduced by $2.1M
Risk Factors
- Material weakness may lead to further restatements or SEC enforcement
- SCAR program termination for convenience could impair additional Space segment assets
- BlueHalo integration challenges and pre-existing material weaknesses at acquired entity
- Potential loss of DoD contracts due to cybersecurity compliance investigation
- High leverage from $747.5M convertible notes despite zero coupon
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 10-Q/A Filing (Primary) | 0001104659-26-076141 |
| Document: avav-20260131xex31d2.htm | 0001104659-26-076141 |
| Document: avav-20260131xex31d1.htm | 0001104659-26-076141 |
| Document: avav-20260131xex32.htm | 0001104659-26-076141 |
| Document: 0001104659-26-076141-index-headers.html | 0001104659-26-076141 |
| Document: 0001104659-26-076141-index.html | 0001104659-26-076141 |
| Document: 0001104659-26-076141.txt | 0001104659-26-076141 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 22, 2026 5w ago | Institutional Cluster | $148.20 $159.95 | ▲ +7.93% | ▲ +7.91% | $140.82 (−4.98%) |
Aug 7, 2026 8w ago | 8-K | $186.73 $144.65 | ▼ −22.54% | ▼ −22.14% | $140.82 (−24.59%) |
Jul 29, 2026 9w ago | 8-K | $142.12 $146.88 | ▲ +3.35% | ▼ −1.67% | $140.82 (−0.91%) |
Jun 29, 2026 13w ago | 8-K | $165.07 $154.24 | ▼ −6.56% | ▼ −5.53% | $140.82 (−14.69%) |
Jun 22, 2026 14w ago | 10-Q/A | $151.33 $142.20 | ▲ +6.03% | ▲ +5.89% | $140.82 (+6.95%) |
Jun 22, 2026 14w ago | 8-K | $151.33 $142.20 | ▲ +6.03% | ▲ +5.89% | $140.82 (+6.95%) |
Jun 11, 2026 16w ago | Institutional Cluster | $183.69 $148.40 | ▼ −19.21% | ▼ −21.10% | $140.82 (−23.34%) |
Apr 15, 2026 24w ago | 144 | $201.99 $160.99 | ▼ −20.30% | ▼ −26.11% | $140.82 (−30.28%) |
Apr 13, 2026 24w ago | 8-K | $194.39 $166.45 | ▼ −14.37% | ▼ −22.10% | $140.82 (−27.56%) |
Apr 9, 2026 25w ago | 8-K | $177.70 $174.37 | ▼ −1.87% | ▼ −9.44% | $140.82 (−20.75%) |
US Market Status
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