Financial Analysis

19. Business Acquisitions ESAero Acquisition On March 16, 2026, the Company closed its acquisition of ESAero, a leading producer of UAS and advanced air mobility platforms. Pursuant to the merger agreement, the Company acquired 100% of ESAero equity for an aggregate purchase price of $177,909,000 consisting of 671,078 shares of the Companys common stock with a fair value of $142,188,000 and $26,922,000 cash-on-hand, net of $2,386,000 cash acquired, plus an $8,800,000 holdback for certain customary adjustments, such as net working capital, and certain seller indemnification obligations. The fair value of the shares issued was based on the closing price on March 16, 2026 of $211.88. ESAero is incorporated into AeroVironments AxS segment. The Company believes the acquisition will enhance the Companys ability to transition from innovative design to advanced manufacturing. The Company accounted for the acquisition under the acquisition method of accounting for business combinations. The following table summarizes the preliminary allocation of the fair value of the acquisition consideration transferred to assets acquired and liabilities assumed as of the acquisition date. The allocation of the purchase price is preliminary and subject to change as the Company continues to evaluate the fair values of certain assets and liabilities acquired. Open items in the purchase price allocation include the valuation of assets acquired and liabilities assumed including, but not limited to custo …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

18. Commitments and Contingencies Commitments The Companys operations are primarily conducted in leased facilities. Refer to Note 12Leases for additional information. Contingencies The Company is subject to legal proceedings and claims which arise out of the ordinary course of its business. Although adverse decisions or settlements may occur, the Company, in consultation with legal counsel, believes that the final disposition of such matters will not have a material adverse effect on the consolidated financial position, results of operations or cash flows of the Company. The Companys ability to borrow under the Revolving Facility is reduced by outstanding letters of credit. Refer to Note 10Debt for additional information. Contract Cost Audits Payments to the Company on government Cost Plus contracts are based on provisional, or estimated indirect rates, which are subject to an annual audit by the Defense Contract Audit Agency (DCAA). The cost audits result in the negotiation and determination of the final indirect cost rates that the Company may use for the period(s) audited. The final rates, if different from the provisional rates, may create an additional receivable or liability for the Company. For example, during the course of its audits, the DCAA may question the Companys incurred costs, and if the DCAA believes the Company has accounted for such costs in a manner inconsistent with the requirements under Federal Acquisition Regulations, the DCAA auditor may recommend to …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

10. Debt In connection with the consummation of the Arcturus Acquisition on February 19, 2021, the Company, as borrower, and Arcturus, as guarantor, entered into a Credit Agreement with certain lenders, letter of credit issuers, Bank of America, N.A., as the administrative agent and the swingline lender, and BofA Securities, Inc., JPMorgan Chase Bank, N.A., and U.S. Bank National Association, as joint lead arrangers and joint bookrunners (the Credit Agreement). The Credit Agreement and its associated Security and Pledge Agreement set forth the terms and conditions for (i) a five-year $100,000,000 revolving credit facility, which included a $10,000,000 sublimit for the issuance of standby and commercial letters of credit (the Revolving Facility), and (ii) a five-year amortized $200,000,000 term A loan drawn in full upon execution (the Term Loan Facility, and together with the Revolving Facility, the Credit Facilities). On February 4, 2022, the Company entered into a First Amendment to Credit Agreement and Waiver relating to its existing Credit Agreement. On June 6, 2023, the Company entered into a Second Amendment to Credit Agreement relating to its existing credit Agreement which increased the sublimit from $10,000,000 to $25,000,000. On October 4, 2024, the Company entered into a Third Amendment to Credit Agreement with the existing lenders, BofA NA, the administrative agent and the swingline lender, JPM, and U.S. Bank, and Citibank (the New Lender) (the Third Amendment to C …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following tables present the Companys revenue disaggregated by operating group, contract type, customer category and geographic location (in thousands): Year Ended April 30, Revenue by operating group 2026 2025 2024 Uncrewed Aircraft Systems $ 363,878 $ 352,019 $ 407,671 Precision Strike and Defense Systems 848,342 359,433 192,587 Other 145,857 109,175 116,462 Space and Directed Energy 273,404 Cyber and Mission Solutions 345,364 Total revenue $ 1,976,845 $ 820,627 $ 716,720 Year Ended April 30, April 30, April 30, April 30, Revenue by contract type 2026 2025 2024 FFP $ 1,384,333 $ 746,190 $ 634,266 Cost Plus 454,113 67,986 77,458 T&M 138,399 6,451 4,996 Total revenue $ 1,976,845 $ 820,627 $ 716,720 Year Ended April 30, April 30, April 30, April 30, Revenue by customer category 2026 2025 2024 U.S. government $ 1,688,719 $ 613,053 $ 544,885 Non-U.S. government 288,126 207,574 171,835 Total revenue $ 1,976,845 $ 820,627 $ 716,720 Year Ended April 30, April 30, April 30, April 30, Revenue by geographic location 2026 2025 2024 Domestic $ 1,420,437 $ 390,744 $ 271,727 International 556,408 429,883 444,993 Total revenue $ 1,976,845 $ 820,627 $ 716,720 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

13. Stock-Based Compensation For the years ended April 30, 2026, 2025 and 2024, the Company recorded stock-based compensation expense of approximately $38,334,000, $21,461,000 and $17,069,000, respectively. On September 24, 2021, the stockholders of the Company approved the 2021 Equity Incentive Plan (2021 Plan) effective September 24, 2021, for officers, directors, key employees and consultants. Under the 2021 Plan, incentive stock options, nonqualified stock options, restricted stock awards, stock appreciation right awards, performance share awards, performance stock unit awards, dividend equivalents awards, stock payment awards, deferred stock awards, restricted stock unit awards, other stock-based awards, performance bonus awards or performance-based awards may be granted at the discretion of the compensation committee, which consists of outside directors. The sum of any cash compensation, or other compensation, and the value of awards granted to a non-employee director as compensation for services as a non-employee director during any fiscal year may not exceed $500,000, which amount is increased to $700,000 in the fiscal year of a non-employee directors initial year of service as a non-employee director. The exercise price for any incentive stock option shall not be less than 100% of the fair market value on the date of grant. Vesting of awards is established at the time of grant. The prior plan, the 2006 Equity Incentive Plan (2006 Plan), was approved by the stockholde …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

3. Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy contains three levels as follows: Level 1Inputs to the valuation based upon quoted prices (unadjusted) for identical assets or liabilities in active markets that are accessible as of the measurement date. Level 2Inputs to the valuation include quoted prices in either markets that are not active, or in active markets for similar assets or liabilities, inputs other than quoted prices that are observable, and inputs that are derived principally from or corroborated by observable market data. Level 3Inputs to the valuation that are unobservable inputs for the asset or liability. The Companys financial assets measured at fair value on a recurring basis at April 30, 2026, were as follows (in thousands): Fair Value Measurement Using Significant Quoted prices in other Significant active markets for observable unobservable identical assets inputs inputs Description (Level 1) (Level 2) (Level 3) Total Available-for-sale securities $ $ 276,031 $ $ 276,031 Total $ $ 276,031 $ $ 276,031 The Company had no financial liabilities measured at fair value on a recurring basis at April 30, 2026. The Companys financial assets measured at fair value on a recurring basis at April 30, 2025, …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

5. Intangibles, net The components of intangibles are as follows (in thousands): April 30, April 30, 2026 2025 Technology $ 585,970 $ 101,645 Licenses 1,008 1,008 Customer relationships 618,730 77,588 Backlog 58,131 2,963 In-process research and development 550 550 Non-compete agreements 3,320 320 Trademarks and tradenames 3,668 1,668 Other 146 146 Intangibles, gross 1,271,523 185,888 Less accumulated amortization (341,697) (137,177) Intangibles, net $ 929,826 $ 48,711 The weighted average amortization period at April 30, 2026 and 2025 was 6 years. Amortization expense for the years ended April 30, 2026, 2025 and 2024 was $203,984,000, $23,391,000 and $17,954,000, respectively. In January 2026, a stop-work order was received on the Companys OTA for the delivery of BADGER phased array antenna systems to support Space Forces Satellite Communication Augmentation Resource (SCAR) program. Additionally, in March 2026, the customer terminated the agreement for convenience. The Company concluded that the stop-work order represented a trigger event that indicated the carrying value of the Space reporting unit exceeded its fair value. Due to the trigger event, the Company performed a recoverability test on the long-lived assets of the Space reporting unit, inclusive of the intangibles, for impairment in accordance with ASC 360. The undiscounted cash flows exceeded the carrying value and no impairment was recorded for long-lived assets. As part of the Companys annual goodwill impairment …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

15. Income Taxes The components of income/(loss) before income taxes are as follows (in thousands): Year Ended April 30, 2026 2025 2024 Domestic $ (298,407) $ 68,814 $ 68,968 Foreign (7,215) (29,150) (5,737) (Loss) income before income taxes (305,622) 39,664 63,231 Equity method investment income (loss) 17,441 4,837 (1,674) Total (loss) income before income taxes $ (288,181) $ 44,501 $ 61,557 The Company expects any foreign earnings to be reinvested in such foreign jurisdictions and, therefore, no deferred tax liabilities for U.S. income taxes on undistributed earnings are recorded. The foreign subsidiaries do not have any undistributed earnings. A reconciliation of income tax expense/(benefit) computed using the U.S. federal statutory rates to actual income tax expense is as follows (dollars in thousands): Year Ended April 30, 2026 2025 2024 Dollars Percentages Dollars Percentages Dollars Percentages U.S. federal statutory income tax rate $ (64,181) 21.0 % $ 8,329 21.0 % $ 12,927 21.0 % State income taxes, net of federal benefit (4,558) 1.5 (987) (2.5) 569 0.9 Effect of cross-border tax laws: Foreign-derived intangible income (7,830) (19.7) (9,831) (16.0) Tax Credits: Research and development credits (8,290) 2.7 (5,263) (13.3) (4,831) (7.8) Changes in valuation allowance (2,665) 0.9 84 0.2 931 1.6 Nontaxable or nondeductible items: Limit on executive compensation 5,958 (1.9) 2,646 6.7 1,687 2.7 Excess benefit relating to stock-based compensation (5,040) 1.6 (2,997) (7.6) (38 …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

12. Leases The components of lease costs recorded in cost of sales and SG&A expense were as follows (in thousands): Year Ended Year Ended April 30, April 30, 2026 2025 Operating lease cost $ 25,426 $ 10,163 Short term lease cost 1,442 822 Variable lease cost 3,880 1,627 Sublease income Total lease costs, net $ 30,748 $ 12,612 Supplemental lease information was as follows: Year Ended Year Ended April 30, April 30, 2026 2025 (In thousands) (In thousands) Cash paid for amounts included in the measurement of operating lease liabilities $ 23,708 $ 10,229 Right-of-use assets obtained in exchange for new lease liabilities $ 6,699 $ 10,099 Weighted average remaining lease term 71 months 48 months Weighted average discount rate 6.7% 5.4% Maturities of operating lease liabilities as of April 30, 2026 were as follows (in thousands): Fiscal Year 2027 $ 23,263 2028 25,143 2029 22,449 2030 17,597 2031 11,803 Thereafter 34,089 Total lease payments $ 134,344 Less: imputed interest (28,522) Total present value of operating lease liabilities $ 105,822 …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recently Adopted Accounting Standards In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09). ASU 2023-09 requires updates to the rate reconciliation, income taxes paid and other disclosures. Effective April 30, 2026, the Company adopted the ASU 2023-09. The Company is evaluating the potential impact of this adoption on its consolidated financial statements. The Companys adoption of ASU 2023-07 did not have a material impact on the Companys consolidated financial statements but did result in additional disclosures in the notes to the Companys consolidated financial statements. Recently Issued Accounting Standards In November 2024, the FASB issued ASU 2024-03, Income StatementReporting Comprehensive Income Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (ASU 2024-03). ASU 2024-03 requires disclosure, in the notes to financial statements, of specified information about certain costs and expenses included in each expense caption on the face of the income statement at interim and annual reporting periods. The new standard is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, and should be applied either prospectively to financial statements issued for reporting periods after the effective date of this ASU or retrospectively to any or all prior periods presented in the financia …

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20. Pension As part of the acquisition of Telerob on May 3, 2021, the Company acquired a small foreign-based defined benefit pension plan. The Rheinmetall-Zusatzversorgung (RZV) service plan covers three former employees based on individual contracts issued to the employees. No other employees are eligible to participate. The Company has reinsurance policies taken out for participating former employees, which were pledged to the employees. The measurement date for the Companys pension plan was April 30, 2026. The table below includes the projected benefit obligation and fair value of plan assets. The net fair value of plan assets is recorded in other assets on the consolidated balance sheets. April 30, 2026 (In thousands) Projected benefit obligation $ (3,249) Fair value of plan assets 3,862 Funded status of the plan $ 613 Change in projected benefit obligation (in thousands): 2026 2025 Pension benefit obligation balance as of April 30, 2025 and 2024, respectively $ (3,335) $ (3,246) Interest cost (123) (112) Actuarial loss 98 16 Benefits paid 211 190 Foreign currency exchange rate changes (100) (183) Pension benefit obligation balance as of April 30, 2026 and 2025, respectively $ (3,249) $ (3,335) Change in plan assets (in thousands): 2026 2025 Fair value of plan assets as of April 30, 2025 and 2024, respectively $ 3,817 $ 3,636 Expected return on plan assets 142 162 Benefits paid (211) (190) Foreign currency exchange rate changes 114 209 Fair value of plan assets as of Apri …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

21. Segments The Company identifies two reportable segments, AxS and SCDE. The accounting policies of the segments are the same as those described in Note 1Organization and Significant Accounting Policies. The operating segments sales to each other are eliminated. Effective May 1, 2025, segment adjusted EBITDA is the measure of profitability used by the CODM for purposes of making decisions about allocating resources to the segments and assessing performance. Segment adjusted EBITDA is defined as segment income (loss) from operations before depreciation and amortization and adjusted for the impact of certain other non-cash items, including goodwill impairment, amortization of implementation of cloud computing arrangements, stock-based compensation, other purchase accounting adjustments, and cash items including acquisition related expenses and certain one-time non-operating expense or income such as legal expense. Year Ended April 30, 2026 AxS SCDE Total Revenue: Product sales $ 1,142,762 $ 272,587 $ 1,415,349 Contract services 215,315 346,181 561,496 1,358,077 618,768 1,976,845 Less: Cost of sales less intangible amortization and other purchase accounting adjustments 837,367 546,127 1,383,494 Intangible amortization included in cost of sales 48,901 43,808 92,709 SG&A less intangible amortization 208,673 104,147 312,820 Intangible amortization included in SG&A 41,688 88,743 130,431 Research and development 113,063 14,615 127,678 Impairment of goodwill 240,708 240,708 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

16. Share Issuances In July 2025, the Company entered into an underwriting agreement (the Common Stock Underwriting Agreement) with certain underwriters (the Common Stock Underwriters) agreeing, subject to customary conditions, to issue and sell 3,528,226 shares of the Companys common stock to the Common Stock Underwriters. In addition, pursuant to the Common Stock Underwriting Agreement, the Company granted the Common Stock Underwriters an option, exercisable within 30 days after entering the Common Stock Underwriting Agreement, to purchase up to an additional 529,234 shares of the Companys common stock (the Over-allotment Option). The issuance of 3,528,226 shares of common stock was completed in July 2025. Subsequently, the Company closed the issuance and sale of 529,234 shares of its common stock pursuant to the underwriters full exercise of the Over-allotment Option in July 2025 for a total issuance of 4,057,460 shares, generating gross proceeds to the Company of $1,006,250,000, proceeds of $968,515,000, net of underwriting discount and proceeds of $966,846,000 net of underwriting discount and other equity issuance costs. …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

17. Business Acquisitions BlueHalo Acquisition On May 1, 2025, the Company closed its acquisition of BlueHalo for merger consideration, net of cash acquired, of $3,484,945,000. Through the acquisition, BlueHalo is incorporated into the Companys AxS and SCDE segments. The Company believes that the acquisition will help to advance the combined company as a global defense technology leader across air, land, sea, space, and cyber. The Company accounted for the acquisition under the acquisition method of accounting for business combinations. (in thousands) Amount Equity consideration transferred $ 2,640,365 Settlement of BlueHalos transaction expenses 25,214 Settlement of BlueHalos debt 863,207 Merger consideration $ 3,528,786 Less cash acquired (43,841) Fair value of consideration transferred $ 3,484,945 The fair value of the Companys common stock issued is based on 17,425,849 shares issued as consideration, per the terms of the Merger Agreement, and the closing share price of $151.52 on April 30, 2025. The following table summarizes the preliminary allocation of the fair value of the merger consideration transferred to assets acquired and liabilities assumed as of the acquisition date. The allocation of the purchase price is preliminary and subject to change as the Company continues to evaluate the fair values of certain assets and liabilities acquired. Open items in the purchase price allocation include the valuation of assets acquired and liabilities assumed including, but not …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

9. Debt On October 4, 2024, the Company entered into a Third Amendment to Credit Agreement with the existing lenders, Bank of America, N.A. (BofA NA), the administrative agent and the swingline lender, JPMorgan Chase Bank, N.A. (JPM), U.S. Bank National Association (U.S. Bank), and Citibank, N.A. (Citibank) (the Third Amendment to Credit Agreement). The Third Amendment to Credit Agreement provided for an aggregate $200,000,000 revolving credit facility (the Revolving Facility), including a $25,000,000 sublimit for the issuance of standby and commercial letters of credit, and a $10,000,000 sublimit for swingline loans, secured by all assets of the Company and the Companys domestic subsidiaries (the Guarantors), and extended the maturity date for obligations pursuant to the Credit Agreement to October 4, 2029. Upon effectiveness of the Third Amendment to Credit Agreement, the Company drew $15,000,000 from the amended Revolving Facility and repaid in full all outstanding amounts owed pursuant to the prior Term Loan Facility. The unamortized debt issuance costs allocated to the prior Term Loan Facility of $590,000 were expensed upon repayment of the Term Loan Facility and recorded in interest expense. On May 1, 2025 (the Closing Date), in connection with the consummation of the BlueHalo acquisition, the Company entered into a Fourth Amendment to Credit Agreement with BofA NA, the administrative agent and the swingline lender, JPM, U.S. Bank, Citibank, BMO Bank N.A. (BMO), Citizen …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following tables present the Companys revenue disaggregated by operating group, contract type, customer category and geographic location (in thousands). Three Months Ended Nine Months Ended January 31, January 25, January 31, January 25, Revenue by operating group 2026 2025 2026 2025 Uncrewed Aircraft Systems $ 89,842 $ 59,766 $ 243,099 $ 249,041 Precision Strike and Defense Systems 158,165 84,795 515,020 214,483 Other 30,737 23,075 107,523 82,053 Space and Directed Energy 53,198 199,872 Cyber and Mission Services 76,103 269,715 Total revenue $ 408,045 $ 167,636 $ 1,335,229 $ 545,577 Three Months Ended Nine Months Ended January 31, January 25, January 31, January 25, Revenue by contract type 2026 2025 2026 2025 FFP $ 280,369 $ 148,768 $ 880,854 $ 489,388 Cost Plus 95,802 17,372 346,080 52,413 T&M 31,874 1,496 108,295 3,776 Total revenue $ 408,045 $ 167,636 $ 1,335,229 $ 545,577 Three Months Ended Nine Months Ended January 31, January 25, January 31, January 25, Revenue by customer category 2026 2025 2026 2025 U.S. government $ 365,816 $ 129,029 $ 1,158,722 $ 418,345 Non-U.S. government 42,229 38,607 176,507 127,232 Total revenue $ 408,045 $ 167,636 $ 1,335,229 $ 545,577 Three Months Ended Nine Months Ended January 31, January 25, January 31, January 25, Revenue by geographic location 2026 2025 2026 2025 Domestic $ 226,110 $ 104,097 $ 933,848 $ 258,053 International 181,935 63,539 401,381 287,524 Total revenue $ 408,045 $ 167,636 $ 1,335,229 $ 545,577 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

3. Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy contains three levels as follows: Level 1Inputs to the valuation based upon quoted prices (unadjusted) for identical assets or liabilities in active markets that are accessible as of the measurement date. Level 2Inputs to the valuation include quoted prices in either markets that are not active, or in active markets for similar assets or liabilities, inputs other than quoted prices that are observable, and inputs that are derived principally from or corroborated by observable market data. Level 3Inputs to the valuation that are unobservable inputs for the asset or liability. The Companys financial assets measured at fair value on a recurring basis at January 31, 2026, were as follows (in thousands): Fair Value Measurement Using Significant Quoted prices in other Significant active markets for observable unobservable identical assets inputs inputs Description (Level 1) (Level 2) (Level 3) Total Equity securities $ 6,220 $ $ $ 6,220 Warrants 2,430 2,430 Total $ 6,220 $ 2,430 $ $ 8,650 The Company had no financial liabilities measured at fair value on a recurring basis at January 31, 2026. The Companys financial assets measured at fair value on a recurring basis at Apri …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

7. Intangibles, net The components of intangibles are as follows (in thousands): January 31, April 30, 2026 2025 Technology $ 582,260 $ 101,645 Licenses 1,008 1,008 Customer relationships 577,291 77,588 Backlog 52,961 2,963 In-process research and development 550 550 Non-compete agreements 320 320 Trademarks and tradenames 1,668 1,668 Other 146 146 Intangibles, gross 1,216,204 185,888 Less accumulated amortization (290,279) (137,177) Intangibles, net $ 925,925 $ 48,711 Technology, backlog and customer relationships intangibles were recognized in conjunction with the Companys acquisition of Blue Halo on May 1, 2025. Refer to Note 17Business Acquisitions for further details. The Company tests identifiable intangible assets for impairment in the fourth quarter of each fiscal year unless there are interim indicators that suggest that it is more likely than not that either the identifiable intangible assets or goodwill may be impaired. In January 2026, a stop-work order was received on the Companys Other Transaction Agreement for the delivery of BADGER phased array antenna systems to support Space Forces Satellite Communication Augmentation Resource (SCAR) program. The Company concluded that the stop-work order represented a trigger event that indicated the carrying value of the Space reporting unit exceeded its fair value. Due to the trigger event, the Company performed a recoverability test on the long-lived assets of the Space reporting unit, inclusive of the intangibles, for i …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

15. Income Taxes For the three and nine months ended January 31, 2026, the Company recorded an income tax benefit of $(21,616,000) and $(39,090,000) yielding an effective tax rate of (8.2)% and (10.6%), respectively. For the three and nine months ended January 25, 2025, the Company recorded an income tax benefit of $(605,000) and a provision for income taxes of $659,000 yielding an effective tax rate of (25.6)% and 2.5%, respectively. The variance from statutory rates for the three and nine months ended January 31, 2026 was primarily due to the non-deductible goodwill impairment, for the three months ended January 31, 2026. The variance from statutory rates for the nine months ended January 25, 2025 was primarily due to the decrease in income before taxes, offset by a decrease in foreign-derived intangible income (FDII) deductions and federal R&D credits. On July 4, 2025, the reconciliation bill, commonly known as the One Big Beautiful Bill Act (OBBBA), was enacted into law. The OBBBA, among other things, eliminates the requirement to capitalize U.S. R&D expenses, permanently extends certain provisions of the Tax Cuts & Jobs Act of 2017 and modifies certain international tax provisions, as part of a broader set of updates to the U.S. international tax rules. These changes are effective for tax years beginning after December 31, 2025, and include modifying key elements of the TCJA-era regime. These include adjusting the international tax effective rates, renaming a …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

11. Leases The components of lease costs recorded in cost of sales and selling, general and administrative (SG&A) expense were as follows (in thousands): Nine Months Ended Nine Months Ended January 31, January 25, 2026 2025 Operating lease cost $ 18,889 $ 7,379 Short term lease cost 980 398 Variable lease cost 2,796 1,212 Sublease income Total lease costs, net $ 22,665 $ 8,989 Supplemental lease information was as follows: Nine Months Ended Nine Months Ended January 31, January 25, 2026 2025 (In thousands) (In thousands) Cash paid for amounts included in the measurement of operating lease liabilities $ 16,176 $ 7,328 Right-of-use assets obtained in exchange for new lease liabilities $ 4,297 $ 7,112 Weighted average remaining lease term 72 months 50 months Weighted average discount rate 6.9% 5.6% Maturities of operating lease liabilities as of January 31, 2026 were as follows (in thousands): Fiscal Year 2026 $ 2,590 2027 24,122 2028 22,538 2029 19,402 2030 15,261 Thereafter 40,167 Total lease payments $ 124,080 Less: imputed interest (25,944) Total present value of operating lease liabilities $ 98,136 …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

18. Pension As part of the Telerob acquisition, the Company acquired a small foreign-based defined benefit pension plan. The Rheinmetall-Zusatzversorgung service plan covers three former employees based on individual contracts issued to the employees. No other employees are eligible to participate. The Company has reinsurance policies that were taken out for participating former employees, which were pledged to the employees. The measurement date for the Companys pension plan was April 30, 2025. The table below includes the projected benefit obligation and fair value of plan assets as of April 30, 2025. The net fair value of plan assets (in thousands) is recorded in other assets on the unaudited condensed consolidated balance sheet. April 30, 2025 (In thousands) Projected benefit obligation $ (3,335) Fair value of plan assets 3,817 Funded status of the plan $ 482 The projected benefit obligation includes assumptions of a discount rate of 3.6% and pension increase for in-payment benefits of 2.5% for both January 31, 2026 and April 30, 2025. The accumulated benefit obligation is approximately equal to the Companys projected benefit obligation. The plan assets consist of reinsurance policies for each of the three pension commitments. The reinsurance policies are fixed-income investments considered a level 2 fair value hierarchy based on observable inputs of the policy. The Company does not expect to make any contributions to the plan in the fiscal year ending April 30, 2026. The …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

19. Segments Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the Chief Operating Decision Maker (CODM) in deciding how to allocate resources and in assessing performance. The Companys CODM, who is the Chief Executive Officer, makes operating decisions, assesses performance and makes resource allocation decisions, including the focus of R&D and other significant expenses, leading to decisions related to resource allocations in relation to profit and loss. Accordingly, the Company identifies two reportable segments. Effective May 1, 2025, the Company reorganized its segments. In connection with the Companys acquisition of BlueHalo, the reorganization was implemented to drive additional operational improvements, foster synergies and provide leaders with greater autonomy over their business units. The Companys reportable segments are Autonomous Systems and Space, Cyber and Directed Energy. The accounting policies of the segments are the same as those described in Note 1, Organization and Significant Accounting Policies. The operating segments sales to each other are eliminated. Effective May 1, 2025, segment adjusted EBITDA is the measure of profitability used by the CODM for purposes of making decisions about allocating resources to the segments and assessing performance. Segment adjusted EBITDA is defined as segment (loss) income from operations before depreciation and amort …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

16. Share Issuances In July 2025, the Company entered into an underwriting agreement (the Common Stock Underwriting Agreement) with certain underwriters (the Common Stock Underwriters) agreeing, subject to customary conditions, to issue and sell 3,528,226 shares of the Companys common stock to the Common Stock Underwriters. In addition, pursuant to the Common Stock Underwriting Agreement, the Company granted the Common Stock Underwriters an option, exercisable within 30 days after entering the Common Stock Underwriting Agreement, to purchase up to an additional 529,234 shares of the Companys common stock (the Over-allotment Option). The issuance of 3,528,226 shares of common stock was completed in July 2025. Subsequently, the Company closed the issuance and sale of 529,234 shares of its common stock pursuant to the underwriters full exercise of the Over-allotment Option in July 2025 for a total issuance of 4,057,460 shares, generating gross proceeds to the Company of $1,006,250,000, proceeds of $968,515,000, net of underwriting discount and $966,846,000 net of underwriting discount and other equity issuance costs. …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

20. Subsequent Events On March 10, 2026, during the course of negotiations between the Company and the U.S. Government regarding the Companys Other Transaction Agreement (the Agreement) for the delivery of BADGER phased array antenna systems to support the SCAR program, the U.S. Government informed the Company that it now intends to proceed with a termination for convenience of the Agreement, while providing the Company with the opportunity to compete for work under the SCAR program in the future. The Company intends to continue to invest in the BADGER product line by developing a commercial product to address the phased array antennae market. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing