AeroVironment restates quarterly financials, citing $89M goodwill error

AeroVironment, Inc. (NASDAQ: AVAV) has restated its financial statements for the quarter ended January 31, 2026, after its Audit Committee determined the previously filed figures contained a material error and could no longer be relied upon.

The company identified the error during preparation of its annual financial statements for the year ended April 30, 2026. The error involved an incorrect calculation of the carrying value used in a goodwill impairment analysis for its Space reporting unit. Specifically, the carrying value did not include an allocation of goodwill resulting from acquired deferred tax assets and liabilities.

The impairment charge is connected to a previously disclosed stop-work order and subsequent termination for convenience of the company's agreement with the U.S. Government for delivery of BADGER phased array antenna systems under the Satellite Communication Augmentation Resource program.

As a result of the restatement, loss from operations was understated by $89.4 million for both the three and nine months ended January 31, 2026. Net loss was understated by $87.3 million for the same periods. Basic and diluted net loss per share was understated by $1.75 for the three-month period and $1.79 for the nine-month period. Total assets were overstated by $89.4 million, total liabilities by $2.1 million, and total stockholders' equity by $87.3 million as of January 31, 2026.

The error was non-cash and did not affect current assets, current liabilities, revenues, cash used in operating activities, Adjusted EBITDA, or non-GAAP diluted earnings per share.

Management identified a material weakness in internal controls related to the preparation and review of goodwill impairment analyses and concluded that disclosure controls and procedures as of January 31, 2026 were ineffective. The restated financials are included in Amendment No. 1 on Form 10-Q/A filed concurrently with a Form 8-K. The matters were discussed with the company's independent auditor, Deloitte & Touche LLP.

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