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Red Flags Detected

  • Material Weakness (worsened) — Auditor issued adverse opinion on internal controls due to two material weaknesses: IT general controls at BlueHalo (user access/segregation of duties unremediated from prior year) and newly-identified goodwill impairment analysis controls that caused Q3 FY2026 restatement.
  • Goodwill Impairment (new) — Space Force stop-work order on BADGER/SCAR program in January 2026 and termination for convenience in March 2026 triggered $241M goodwill impairment in Space reporting unit, nearly wiping out goodwill from BlueHalo acquisition in that segment.
  • Restatement (new) — Company restated Q3 FY2026 financial statements due to error in goodwill impairment analysis, originating from material weakness in controls over preparation and review of goodwill reconciliation by reporting unit.
  • Securities Litigation (new) — Securities class action filed May 2026 alleging false statements about SCAR program during June 2025-March 2026, naming CEO, former CFO, and SCDE segment president as defendants.
NASDAQ: AVAV AeroVironment Inc 10-K

AVAV swings to $265M loss on $241M Space goodwill hit; BlueHalo integration adds material weaknesses

Filed June 29, 2026 · Period ending April 30, 2026 · Compared to 10-K Jun 25, 2025 · ~2 min read

Key Changes

  • high

    Space Force terminated BADGER/SCAR program in March 2026, triggering $241M goodwill impairment in newly-acquired Space segment. Space unit retains $291M goodwill after write-down.

    MD&A: Space goodwill impairment verify on EDGAR →
  • high

    Auditor issued adverse opinion on internal controls due to two material weaknesses: IT general controls at BlueHalo (user access/segregation of duties) and goodwill impairment analysis controls that caused Q3 FY2026 restatement.

    Controls & Procedures verify on EDGAR →
  • high

    BlueHalo acquisition closed May 2025 for $3.5B, adding $619M revenue but $(2.6)M adjusted EBITDA in new SCDE segment. Company raised $1.7B (equity + convertible notes) to refinance acquisition debt.

    MD&A: BlueHalo acquisition verify on EDGAR →

2 more material changes behind this preview — plus the full narrative summary, section-by-section diffs against the prior filing, and verbatim quotes with EDGAR citations.

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View original filing on SEC.gov View full financials on EDGAR ↗

Source-verified from EDGAR · Narrative written by AI · Jul 6, 2026 · How we verify