AeroVironment says quarterly results need restatement over goodwill error

On June 17, 2026, AeroVironment's Audit Committee determined that unaudited financial statements in its quarterly report on Form 10-Q for the three and nine months ended January 31, 2026, need restatement. The restated figures are in an amended Form 10-Q/A. The company said the earlier statements should no longer be relied upon. The company also said readers should rely only on the restated figures.

The error involved the Space reporting unit's goodwill impairment analysis, whose carrying value left out a goodwill allocation from acquired deferred tax assets and liabilities. The company said the incremental impairment charge relates to the stop-work order and later termination for convenience of its U.S. Government agreement to deliver BADGER phased array antenna systems for the SCAR program, the triggering event for the initial analysis.

The company said the error was non-cash and did not affect previously reported current assets, current liabilities, revenues or cash used in operating activities. Loss from operations was understated by $89,402,000, and net loss by $87,272,000, for the three and nine months ended January 31, 2026. GAAP basic and diluted net loss per share was understated by $1.75 for the three months and $1.79 for the nine months.

AeroVironment said total assets were overstated by $89,402,000, total liabilities by $2,130,000 and total stockholders' equity by $87,272,000 as of January 31, 2026. The company said it identified a material weakness in internal control over financial reporting tied to preparing and reviewing the goodwill impairment analysis, and that disclosure controls were ineffective as of January 31, 2026.

Directors David Wodlinger and Henry Albers resigned from the board effective June 17, 2026, and both said the decision does not result from any disagreement with management on the company's operations, policies or practices. They were appointed May 1, 2025, as designees of Arlington Capital Partners V, L.P. and Arlington Capital Partners VI, L.P. under a shareholder's agreement dated November 18, 2024.