How did Aerovironment's revenue and expenses shift in Q3 2025?

AeroVironment experienced a significant decline in revenue and a shift in expenses in Q3 2025 compared to the previous year.

1. **Revenue Decline**: The company's revenue dropped to $167.6 million in Q3 2025, marking a 10% decrease year-over-year. This decline was primarily due to lower product sales and service revenue, with a notable decrease in UnCrewed Systems revenue.
2. **Net Loss**: AeroVironment reported a net loss of $1.8 million in Q3 2025, which is a stark contrast to the net income of $13.9 million recorded in the same period the previous year. This indicates a challenging financial performance for the quarter.
3. **Expenses**: The company's expenses are expected to be between 12%-13% of revenues and adjusted gross margins between 40% to 42% of revenues in FY25. However, specific details about Q3 2025 expenses are not available, making it difficult to analyze the expense shifts during the quarter.
4. **Challenges Impacting Financials**: The revenue decline and net loss were influenced by several factors, including unprecedented high winds and fires in Southern California, which impacted the company's ability to meet its goals. Additionally, the BlueHalo acquisition-related expenses heavily impacted the operating loss.

In conclusion, AeroVironment faced a challenging quarter in Q3 2025, characterized by a substantial revenue decline and a shift to a net loss. The company's financial performance was impacted by a combination of external factors and strategic initiatives.