AIRO Group Holdings (NASDAQ:AIRO) reported third-quarter financial results on Thursday. The transcript from the company’s third-quarter earnings call has been provided below.
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Summary
AIRO Group Holdings reported a strong Q3 2026 with revenue of $17.5 million, a 180% year-over-year increase, driven by drone segment performance.
Gross margin improved to 57% from 44% in the prior year, aided by higher-volume drone sales with strong margins.
The company secured significant orders, including its first U.S. orders for the RQ35 and RQ70, and expanded its U.S. market presence.
AIRO reaffirmed full-year revenue growth guidance of 15% to 25%, now expecting growth at the lower end of the range.
The company’s drone backlog exceeds $200 million, with a total opportunity pipeline of $1.5 billion, indicating future growth potential.
Strategic initiatives include the development of the RQ70 and JC250/JX250 platforms, aiming for production and commercialization in 2027.
AIRO is enhancing vertical integration with the Zentra camera suite and consolidating operations for improved efficiency.
Management remains optimistic about long-term growth, supported by strategic investments and a strong balance sheet.
Full Transcript
OPERATOR (Moderator)
Today at this time I would like to welcome everyone to the AIRO Q3 2026 earnings call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. Thank you. I would now like to turn the call over to Jack Senth, Investor Relations at AIRO Group Holdings.
Please go ahead.
Jack Senth (Investor Relations)
Thank you, Operator, and good morning. Welcome to the AIRO Group Holdings Incorporated third quarter 2026 earnings call. We appreciate you joining us today and look forward to sharing an update on our progress and performance. With me on the call are Dr. Chirinjeev Kathuria, our Executive Chairman, Capt. Joseph Burns, our Chief Executive Officer, and Dr. Mariya Pylypiv, our Chief Financial Officer. Today’s call will include forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements relating to AIRO’s 2026 outlook. Forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results, performance, or achievements to be materially different from those expressed or implied by the forward-looking statements.
Forward-looking statements represent management’s beliefs and assumptions only as of the date made. Information on factors that could affect the company’s financial results is included in the company’s most recent annual report on Form 10-K and other filings with the SEC from time to time. In addition to our prepared remarks, our earnings press release, SEC filings, and a replay of today’s call can be found on our investor relations website at investor.theaerogroup.com. We have also posted our earnings presentation on the Investor Relations section of our website. In addition, during today’s call we will discuss non-GAAP financial measures. These non-GAAP financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP.
Reconciliations between GAAP and non-GAAP financial measures, and a discussion of the limitations of using non-GAAP measures versus their closest GAAP equivalent, is available in our earnings release. Additionally, we plan to discuss drone segment backlog and opportunity pipeline, definitions of which can be found in our earnings release. With that, I’ll turn the call over to our Executive Chairman, Dr. Chirinjeev Kathuria.
Chirinjeev Kathuria (Executive Chairman)
Thanks, Jack, and thank you all for joining us today. AIRO delivered another strong quarter with results exceeding our expectations. Despite the anticipated sequential decline from the second quarter, strong execution across the business and continued customer demand drove better-than-expected performance, reinforcing the momentum we’re seeing across our portfolio. Looking ahead, and as Mariya will discuss in her section, we are reaffirming our full-year revenue growth guidance of 15% to 25%, though now guiding towards the lower end of the range. We are also seeing solid growth in our drone backlog, growing to more than 200 million, including U.S. drone backlog. We also announced that our total opportunity pipeline across all four segments now sits at 1.5 billion.
On the U.S. side, AIRO secured its first U.S. orders for the RQ35 and RQ70, both important milestones as we continue expanding our presence in the U.S. market. We also continue to advance our broader product roadmap. The RQ70 remains on track to enter production in January 2027, while development of the JC250 and the JX250 continues to progress. Combined with the RQ35 and the Zentra camera suite, these programs support our strategy of building a more diversified, vertically integrated unmanned systems platform.
Third quarter was another quarter of solid execution, and we believe the progress made during the period positions us well to continue expanding our customer base, diversifying our revenue streams, and driving long-term growth. With that, let me turn it over to Joe to discuss our strategy and operational highlights. Joe.
Joseph D Burns (Chief Executive Officer)
Thank you, Chair and Jeev, and thank you all for joining us on today’s earnings call. I’m pleased to report another strong quarter with results exceeding our expectations and reflecting solid execution across the business. As we discussed on prior calls, we anticipated third quarter results would be lower sequentially than the second quarter due to the timing of program deliveries and the inherent variability of our business. Despite this expected sequential decline, third quarter performance exceeded our expectations, underscoring the strength of demand across our portfolio and our team’s ability to execute.
Based on our year-to-date performance and outlook for the remainder of 2026, we are reaffirming our previously issued full-year revenue growth guidance of 15% to 25%. Maria will provide additional detail on our financial performance later in the call. Beyond this, we achieved several important strategic milestones that further strengthen our position in the U.S. market. First, the RQ35 during the quarter was selected under the Framework Agreement with the NATO Support and Procurement Agency, or NSPA. This agreement enables participating NATO nations to procure the platform through a streamlined acquisition process, expanding our reach across allied defense markets and creating additional opportunities to support long-term international growth.
Second, during the quarter, AIRO Group Holdings was selected to participate in Phase 2.5 of the Drone Dominance Program at Camp Grayling. On top of that, we also secured our first U.S. orders for the RQ35 and the RQ70, a significant milestone that validates both the platform and our broader growth strategy. Collectively, these achievements underscore the progress we are making to expand our market presence, deepen customer relationships, and drive long-term growth.
On the heavy cargo drone side, our wholly owned Canadian subsidiary entered into a strategic collaboration with Vertico Mobility to support the development of autonomous cargo logistics operations in Canada using the JC250 VTOL unmanned cargo drone. The LOI contemplates an initial deployment of 10 aircraft, which would represent an estimated value of approximately $15 million to $20 million based on current indicative pricing. Initial operations are expected to focus on supporting logistics services for First Nations communities in Quebec.
We believe this collaboration demonstrates the growing commercial potential of the JC250 platform. Now let me provide an update on our portfolio and strategic positioning at AIRO Group Holdings. We continue to build a diverse and expanding portfolio of products and services with a focus on capturing opportunities across the evolving drone market. We are pursuing this growth through a combination of internal product development and strategic partnerships. A key priority for us is reducing quarterly variability by broadening both our domestic and international customer base.
For instance, with our RQ35 platform now Blue UAS certified, we are already seeing the benefits of this achievement, as demonstrated by a recently announced U.S. order. We believe this certification meaningfully enhances our position within the U.S. defense market and is expected to support additional opportunities in the quarters ahead. Developments such as these reinforce our confidence in the long-term growth trajectory of the business, supporting our efforts to diversify the business and reduce revenue variability.
We continue to expand our portfolio of products and capabilities. This includes the RQ70, which remains on track to enter production in January ’27, as well as the Zentra camera suite and our future JC and JX250 aircraft platforms. As these products progress through development and commercialization, we expect them to broaden our addressable market, create additional revenue streams, and contribute to a more balanced and predictable business over time.
Our portfolio continues to evolve as we build a more integrated and differentiated UAS platform. The RQ35 remains the foundation of that strategy. As a proven, combat-tested system designed for ISR missions in contested environments, the platform has demonstrated strong performance and resilience in the field. Our product portfolio was recently strengthened with the addition of the Zentra camera suite. By bringing advanced imaging and sensor technology in-house, AIRO Group Holdings is becoming increasingly vertically integrated, allowing us to control more of the mission-critical technology stack while enhancing performance, customer value, and long-term margin opportunities. The combination of our aircraft platforms, embedded technology, and proprietary sensor capabilities creates a more compelling offering and further differentiates AIRO Group Holdings in the market.
Looking ahead, the next major step to our product roadmap is the RQ70. Built on years of operational experience and lessons learned from the RQ35 platform, the RQ70 is designed to deliver significantly enhanced endurance, range, and mission flexibility while leveraging our existing manufacturing footprint and supply chain. Importantly, the program remains on track, and we are reaffirming our expectation to begin production in January ’27, just a few months from now.
Further on the horizon is the JC and JX250. On this front, we are still progressing towards first flight soon, where the team has been ramping up the supply chain and assembling the vehicle. Of note, we are being very disciplined in moderating overall spending for this dual-use platform. Importantly, the addition of products such as the Zentra camera suite, the RQ70, and the JC/JX250 platforms expands our addressable market and creates new opportunities to diversify our customer base across both defense and commercial end markets.
This diversification reduces reliance on any single customer, program, or procurement cycle and supports a more consistent revenue profile over time. The combination of our aircraft platforms, embedded technologies, and proprietary sensor capabilities creates a uniquely integrated solution set that enhances customer value and further differentiates AIRO Group Holdings in an increasingly competitive market. These new launches, combined with our already established product base, collectively demonstrate the progress we are making in building a more capable, integrated, and diversified business.
While there still is significant work ahead, these developments represent important steps towards expanding our product ecosystem, increasing customer touch points, and creating a more durable and less variable revenue profile over the long term. Turning to avionics and electronics, revenue is modestly lower year over year due to continued softness in the general aviation market. Despite these near-term headwinds, we continue to view this segment as a valuable strategic asset within AIRO Group Holdings. With our avionics operations and growing U.S. drone businesses now consolidated in Phoenix, we have established a stronger foundation for product development, operational efficiency, and collaboration across the organization.
We expect this closer alignment to begin generating meaningful synergies in the coming quarters. As we expand our unmanned systems portfolio, we also see increasing opportunities to leverage our in-house avionics capabilities across multiple platforms. This supports our long-term broader strategy of deeper vertical integration, greater supply chain control, and long-term margin improvement. Lastly, we continue to assess strategic options for our training business and anticipate providing an update by year end. We view the segment as a valuable asset with meaningful long-term potential, but one that requires substantial investment to fully capitalize on its opportunities. As we evaluate the best path forward, our capital allocation and strategic priorities remain firmly focused on growing our unmanned systems platform and advancing our position in that market.
Overall, we are encouraged by the progress we made during the third quarter, delivering results that exceeded expectations while continuing to advance several key strategic initiatives across the business. From securing our first U.S. order and expanding our U.S. market presence, to advancing the RQ70 toward production and further integrating our technology stack through Zentra and our avionics capabilities, we continue to execute on our strategy of building a more diversified, vertically integrated, and scalable platform.
While we remain in the early stages of this journey, we believe these milestones validate our approach and strengthen our position for long-term growth. We also remain disciplined in our approach to capital allocation. We continue to evaluate inorganic opportunities that can enhance our capabilities and contribute to a more balanced and predictable revenue profile over time. With a strong balance sheet, we have the flexibility to pursue strategic opportunities when they align with our long-term objectives and create value for shareholders.
In closing, our focus remains unchanged: delivering mission-ready solutions, expanding our technological capabilities, and positioning AIRO Group Holdings for sustainable growth. None of these would be possible without the dedication of our employees and leadership team. Their expertise, commitment, and execution continue to be the foundation of our success, and as we strengthen the organization with additional talent, we believe AIRO Group Holdings is increasingly well positioned to capitalize on the opportunities ahead.
With that, I will turn it over to Maria, who will walk you through our financial results in more detail. Maria.
Mariya Pylypiv (Chief Financial Officer)
Thank you, Joe, and good morning, everyone. For the third quarter of 2026, revenue was 17.5 million compared to 6.3 million in the third quarter of 2025. This represents growth of nearly 180% year over year. Revenue for the quarter was ahead of expectations, driven by outperformance against expectations in our drone segment, partially offset by underperformance in avionics and training. Gross profit for the quarter was 9.9 million, representing a gross margin of 57% compared to a gross profit of 2.8 million and a gross margin of 44% in the prior-year period.
The year-over-year improvement was driven primarily by a more favorable revenue mix, including higher-volume drone sales, which carry stronger margins. Gross margin performance during the quarter was in line with our expectations. Operating loss for the quarter was 13.1 million versus a loss of 12 million in the third quarter of 2025. As a percentage of revenue, operating expense margin improved versus the same period last year, and we remain disciplined on costs while continuing to invest selectively in the infrastructure needed to support our growth.
Our third quarter net loss was 12 million versus a net loss of 8 million in the third quarter of 2025. In the third quarter of 2026, adjusted EBITDA was a loss of 7.5 million compared to a loss of 8 million in the prior-year period. Adjusted EBITDA margin improved substantially to negative 43% versus a negative 128% a year ago, reflecting strong revenue growth and improved operating leverage. As we continue to scale the business while we remain in investment mode, this performance demonstrates meaningful progress in our cost control efforts, improving our bottom-line performance.
We retain flexibility to adjust our spending pace up or down as conditions warrant. Right now, though, we believe the right path forward is deliberate, efficient investment to put the required infrastructure in place to support our next phase of growth. Turning to cash flow and liquidity, as of September 30, we had 37.8 million of cash on the balance sheet and approximately 1.2 million of debt. Cash generation during the quarter benefited from collection of nearly 30 million of accounts receivable, which was partially offset by the line of credit repayment of approximately 5.5 million related to Skywatch. We continue to maintain a strong balance sheet and believe we are well positioned to fund our ongoing growth and operational initiatives.
As of November 5, 2026, our drone backlog exceeded 200 million, including U.S. opportunities, the majority expected to convert to revenue over the next 12 months. Our backlog represents business that we reasonably expect to recognize as revenue within the coming year, but we do see this as a conservative estimate. Note that we are including U.S. opportunities in our drone backlog for the first time this quarter in recognition of the ramp-up of our U.S. manufacturing efforts.
While U.S. programs currently make up approximately one quarter of our total backlog, we are still in the early stages of capturing this opportunity and see substantial runway for growth across both domestic and international markets. Beyond backlog, our pipeline continues to expand, reflecting increasing customer engagement across both U.S. and allied defense markets, as well as growing interest in our expanding portfolio of drone solutions. As of November 5, 2026, our total opportunity pipeline across all four segments stood at 1.5 billion, underscoring the significant long-term growth opportunities ahead and reinforcing our confidence in the demand environment discussed throughout today’s call.
Turning towards guidance, based on our current visibility, we are reiterating our full-year revenue growth guidance of 15% to 25% year over year, though we now expect to be at the lower end of the guidance range due to revenue variability that is inherent in our business model. Let me provide some additional context on our outlook. First, some orders we had originally expected to receive in 2026 have moved into 2027 as discussions evolve towards larger contract opportunities, resulting in longer procurement timelines.
And given the international nature of our business, foreign exchange remains a factor in our outlook. We are seeing greater FX headwinds in the second half as expected and have incorporated that impact into our outlook and remain confident in our full-year guidance range. We continue to anticipate modest gross margin compression relative to 2025, consistent with the low single-digit range we outlined previously. We continue to expect full-year 2026 adjusted EBITDA in the negative mid- to high-teen millions, with a quarterly cadence expected to broadly follow revenue.
As we look ahead, we believe AIRO Group Holdings is entering an important phase of its evolution. Over the past several quarters, we have focused on building the foundation for a larger and more diversified business through investments in new products, manufacturing capacity, and vertical integration. Those efforts are beginning to take shape. With the RQ70 approaching production, the rollout of the Zentra Camera Suite, and additional platforms such as the JC and GX250 advancing through development, we are steadily expanding both our product portfolio and our addressable market.
Over time, we expect those initiatives to create a broader mix of revenue streams, improve visibility, and reduce dependency on any single program or product. Fiscal 2026 remains an investment year as we position the company for its next stage of growth. We’re investing where we see the greatest long-term returns while remaining disciplined in how we deploy capital and manage costs. We believe that combination of growth investments and operational discipline positions AIRO Group Holdings well to capitalize on the opportunities ahead and deliver sustained value for shareholders.
With that, operator, we’re ready for questions.
OPERATOR (Moderator)
We will now begin the question-and-answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one. Again, we ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Brett Lindsay with Mizuho.
Your line is open. Please go ahead.
Brett Lindsay (Analyst)
Hey, good morning, all. I wanted to come back to the 1.5 billion total opportunity pipeline. I guess as you look across those opportunities, what is the win rate you’re assuming or expecting going forward, and I guess what was historically observed? And then is there any way you can drill down on the composition of that pipeline between the U.S. region and the international markets?
Mariya Pylypiv (Chief Financial Officer)
Hi, Brad, good morning, and thank you for the question. Right now, 1.5 billion has been, as we discussed with backlog, we are not breaking out different segments of pipeline. But in terms of a pipeline overall, it’s company-wide and includes products and opportunities we’re chasing. From what we’re seeing currently, we expect U.S. market volume to be equal to the rest of the world, and our growing pipeline is made up of the opportunities that we expect to reasonably convert to backlog.
So if you think about the staging, this is our visibility in the next 12 to 24 months.
Brett Lindsay (Analyst)
Okay, great, thanks. And then the 200 million of drone backlog is, you know, is obviously substantial relative to the revenue basis. As we think about converting that into revenue, how much additional manufacturing capacity do you need to serve and monetize that? Can the existing footprint support it at these levels? Is there a step-up in, you know, more investment? And then, Marie, if you could just clarify the high-teens million dollars mix comment you made and what that pertains to.
Joseph D Burns (Chief Executive Officer)
Good morning, Brett, it’s Joe. I’ll address the first part of the question, which is the capacity. We have spent the last several quarters building our factory capacity up so we could handle this volume of orders. For instance, in Arizona we can produce 100 airframes per month. So the capacity is there to produce everything that we’ve discussed on the phone today.
Mariya Pylypiv (Chief Financial Officer)
And then, Brad, in terms of conversion with our backlog, our backlog right now includes U.S. opportunities and therefore it’s harder to determine the win rate. However, we’ve seen a good conversion of our pipeline to backlog with our international markets and therefore our numbers are more conservative when we look into U.S.-side opportunities.
Joseph D Burns (Chief Executive Officer)
And I’d like to reiterate, too, what Maria said earlier about the U.S. size versus the international size. Obviously, we started out as an international company with our manufacturing in Denmark and have moved into the U.S., somewhat in reverse of most drone companies. We think that gives us a pretty amazing advantage for capturing areas outside of the U.S., but we’re very excited with the U.S. order stream, as we’ve been for the last nine months or so, have been doing an exceptional amount of demos for the U.S. government, getting our name out there, and getting, obviously, the Blue U.S. certification and securing our order stream.
So we’re excited about the growth potential in the U.S. as well as the international.
Brett Lindsay (Analyst)
Thanks so much.
Mariya Pylypiv (Chief Financial Officer)
I think your comment was about the mid-teens. I was relating to our adjusted EBITDA guidance on a dollar basis, that we will be tracking similar guidance that we’ve had so far.
Brett Lindsay (Analyst)
Okay, got it. Thanks so much. Best of luck.
OPERATOR (Moderator)
Thank you. Your next question comes from the line of Craig Irwin with Roth Capital Partners. Your line is open. Please go ahead.
Craig Irwin (Analyst)
Good morning, and thanks for taking my questions. First, I should say congratulations on the solid results this quarter. It’s nice to see the healthy margins and the good revenue production. I wanted to ask specifically about the 54 and a half million in orders booked this quarter. Can you maybe give us a breakdown of U.S. versus international in that mix? And then can you maybe comment about the contribution from the RQ70? You know, you did mention last quarter that it was a very small piece of the existing backlog.
Your backlog has grown substantially, and I guess we’re approaching the start of production there. And then any other color as far as other business lines that you might be able to offer us regarding these bookings this quarter?
Mariya Pylypiv (Chief Financial Officer)
Greg, thank you for the question. We’re currently not providing a breakdown per product or in more detail on the segments. However, roughly 75% of our backlog comes from international drone sales, and about 25% is coming from expected U.S. deliveries.
Craig Irwin (Analyst)
Okay. Indeed. Do you have
Mariya Pylypiv (Chief Financial Officer)
Craig. Oh, I’m sorry. Go ahead, Craig.
Craig Irwin (Analyst)
Sorry, Maria, do you have a number for last quarter when with the 163?
Mariya Pylypiv (Chief Financial Officer)
We also were not breaking it down at that point.
Craig Irwin (Analyst)
Okay. And I apologize, Joe, I interrupted you.
Joseph D Burns (Chief Executive Officer)
No, no problem. I appreciate that. I just want to give a little color on the RQ70. You know, that is included in our first U.S. order, so we’re excited about that opportunity. Clearly, we see the RQ70 product line as a whole new, differentiated product line for us, where we can get out and really compete against some of the longer flying time, higher-end ISR platforms and compete in a very substantial and meaningful way against some of those that are out there.
So I’m particularly very excited about the RQ70 and what we’re going to be able to do with that in the very near future.
Craig Irwin (Analyst)
Excellent. And then, Joe, I wanted to ask a little bit about the commercial opportunity for the Arrow. Right. So, you know, the fire departments, police departments all across the country are looking for ways to give their services to local communities in a more efficient manner. You know, fire departments could use intel to more appropriately fight wildfires or surveil different districts and then obviously look for lost people when they’re hiking in the mountains or something.
You know, in police departments, you know, drones would be a much easier and cheaper way to help bring in suspects, reduce risk to the population. What are you seeing as far as the opportunity there? I mean, can you maybe update us on your engagement approach? How do you see this market taking shape for AIRO Group Holdings.
Joseph D Burns (Chief Executive Officer)
Thanks for the question, Craig. It’s a great one. Obviously, I’m excited about that, doing some part-time work in volunteer fire myself, so it’s an area that touches home for me. We are in active discussions with several groups within fire at this point in time, and also with police departments, to expand our product coverage into the commercial market. And what that does, obviously, is it also sort of levels out our quarterly revenues as well. So we’re excited about all those opportunities.
But you mentioned some of the key ones, right? Lost-people type of tracking, identification, security, support for large events, spotting wildfires, for instance, keeping the RQ35 platform in the air, continuously rotating airframes for up to three hours per flight to be able to spot wildfires, is something that we’ve had a lot of agencies and civilian agencies actually discuss interest in this product. So it’s exciting times for that. This fits right into the model, as the traditional quadcopter, sort of the short flight-time duration, has always been a little bit of a hindrance. We know what we’re capable of doing with, say, the RQ35. So it’s a fantastic time to jump in, full speed ahead, and we are having those discussions as we speak.
Craig Irwin (Analyst)
Okay, excellent. And then last question, if I may. A couple of investors have asked about the impact of the JC and JS250 as far as profitability on the company, or at least the spending impact on the profitability. So when I look at your R&D this year, you’re tracking for roughly $30 million in R&D spend, up from less than 18 last year. You know, there’s a material increase. You know, I don’t know if you’re willing to break out, you know, roughly what portion of that R&D spend is for the JC and JFS 250s.
But would you expect fundamentally the business to be something that should be profitable, would be profitable with anticipated growth in 2027, if you weren’t investing on some of these, you know, high-potential longer-term platforms.
Mariya Pylypiv (Chief Financial Officer)
Craig, thank you for the question. It’s excellent. So we’re not disclosing currently the breakdown between the segments. However, if we were to stop investing into JCGaxis, that would provide a significant reduction to our cash burn. Our current plan with GC and G Axis is our first flight that we’re actively progressing towards, and per plan we’re anticipating commercialization of those drones in the latter half of 2027, which should significantly increase our product portfolio mix.
We already have some LOIs that we disclosed and that also contribute to the overall revenue mix. I’m happy to answer any additional questions on this.
Craig Irwin (Analyst)
No, that’s perfect. I’ll take the rest of my questions offline. Congratulations on the progress.
Mariya Pylypiv (Chief Financial Officer)
Thank you.
Joseph D Burns (Chief Executive Officer)
Thanks, Craig.
OPERATOR (Moderator)
Your next question comes from the line of Andre Madrid with US Bancorp BTIG. Your line is open. Please go ahead.
Will Cooper (Analyst)
Hi, good morning, this is Will Cooper on for Andre. Thanks for taking my question. Just want to ask about U.S. sales both next year and beyond. What portion of revenue could the U.S. ultimately represent long term with these new opportunities?
Mariya Pylypiv (Chief Financial Officer)
Well, thank you for the question. So as we disclosed, currently in terms of our backlog of 200 million, about 25% is coming from the U.S. However, we see very meaningful sales opportunities in the U.S. that are to convert to backlog, and then next step would be conversion to revenue. So that will be a significant portion of our sales opportunities going forward.
Joseph D Burns (Chief Executive Officer)
And this is Joe. Good morning, Will. The future in the U.S., obviously, as we’ve stated and industry is guiding towards, is that the U.S. market is substantially about the same size as the international market combined. So for us, we do see a trend towards more of a 50/50 split in the long run between the U.S. and international orders, which makes our international piece so critical that a lot of the other companies have sort of just focused on the U.S. I think our reverse focus, as I mentioned earlier, about going from international into the U.S., is really key towards having a more solid and robust revenue mix overall.
Will Cooper (Analyst)
Great, thank you, that was very helpful. And kind of switching gears to the Blue UAS certification for both the RQ70 and the camera suite. What does the progress and timeline look like on those, and what key milestones need to be hit for those to achieve Blue UAS certification?
Joseph D Burns (Chief Executive Officer)
Sure, I’ll take that one. So Blue UAS certification has been achieved, as we had released several months ago, for the RQ35, which is incredibly helpful for getting into the U.S. marketplace. You know, while it’s typically not a hard and fast requirement, you need to do it as a default to sort of validate several things. Number one, you validate that the factories can produce the product according to standards in the U.S. You also validate the supply chain through the NDAA compliance of components, and then finally you validate the actual airframe itself.
So yes, we fully intend to certify the RQ70 underneath the Blue certification program. And to do that, obviously, we need to have the commercial version kind of rolling out to do that. So that is underway, and it’s something that we anticipate having in time for some of these larger U.S. programs. You mentioned the Zentra camera suite, and while indeed we produce our cameras in house, the suite itself would not be Blue certified. That’s really for an aircraft system, but it would be certified under NDAA compliance.
Will Cooper (Analyst)
Great. I appreciate you taking the questions.
OPERATOR (Moderator)
This concludes today’s call. Thank you for attending. You may now disconnect.
Jack Senth (Investor Relations)
Thanks, everybody.
Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company’s SEC filings and official press releases. Corporate participants’ and analysts’ statements reflect their views as of the date of this call and are subject to change without notice.