Airship AI (AISP) Q4 2025 earnings summary

Executive summary

• Q4 2025 net revenues reached $6.5 million, up 102% year-over-year, with gross profit of $3.3 million and gross margin of 51.2%.

• Operating loss for the quarter was $612,000, mainly due to increased stock-based compensation and higher sales and marketing investments.

• Net income for the year was $29.3 million, primarily driven by $36.5 million in noncash income from changes in fair value of earnout and warrant liabilities.

• Cash flow from operations was positive for the quarter, with cash and equivalents at $11.8 million as of year-end.

• Backlog at year-end was $3.3 million, with a validated pipeline of $173 million in opportunities across federal and commercial sectors.

Financial highlights

• Gross margin improved to 51.2% in Q4 2025, up 169% year-over-year, attributed to increased branded hardware and software sales.

• Other income for Q4 was $23.6 million, mainly from a $14.5 million gain in earnout liability and $9 million from warrant liability changes.

• Net cash used in operating activities was $3.5 million for Q4, reflecting a $5.2 million increase in accounts receivable.

• Year-end accounts receivable stood at $6.5 million.

Outlook and guidance

• Focus on leveraging momentum from Q4 into 2026, targeting long-term business development funded by the One Big Beautiful Bill Act.

• Continued emphasis on improving gross margins and achieving cash flow positive operations before the end of 2026.

• Ongoing investments in sales, business development, and product innovation, including edge and cloud analytic platforms.