AiRWA Revenue Doubles to $7.0M in Q3 2026 but Posts $1.6M Operating Loss

AiRWA, INC., a Delaware-based technology company, reported revenue of $7.0 million for the three months ended January 31, 2026, more than doubling from $3.3 million in the same quarter a year earlier. The company swung to an operating loss of $1.6 million from operating income of $530,000 in the prior-year period. Read more earnings reports.

For the nine months ended January 31, 2026, total revenue reached $13.0 million, up 32% from $9.8 million in the comparable period of fiscal 2025. The company reported a minimal operating loss of $20,000 for the nine-month period, a sharp reversal from operating income of $5.3 million a year earlier.

Margin Compression Drives Loss

Cost of goods sold surged to $6.6 million in the third quarter, up from $744,000 a year earlier, compressing gross profit to $391,000 from $2.5 million. Gross margin fell to 5.6% from 77.3% in the prior-year quarter. Operating expenses rose to $2.0 million from $2.0 million, remaining relatively flat year-over-year.

For the nine-month period, cost of goods sold totaled $8.1 million compared to $2.2 million in the prior year. Gross profit for the nine months was $4.9 million, down from $7.6 million. Operating expenses for the nine-month period climbed to $4.9 million from $2.3 million.

Balance Sheet Transformation

Total assets surged to $199.9 million as of January 31, 2026, from $32.9 million at the end of fiscal 2025, an increase of $167.0 million. Cash and cash equivalents jumped to $35.7 million from $54,744, while current assets rose to $62.0 million from $22.4 million. The company recorded goodwill of $21.5 million on its balance sheet as of the quarter end.

Total liabilities increased to $12.3 million from $6.5 million, with current liabilities rising in tandem. Stockholders' equity expanded to $187.5 million from $25.3 million, driven by a massive equity raise. Common shares outstanding ballooned to 42.1 million from 291,261 shares at the end of fiscal 2025, a 144-fold increase.

Equity Deficit Emerges

Retained earnings swung to a deficit of $29.3 million as of January 31, 2026, from positive retained earnings of $6.1 million at the end of fiscal 2025, a decline of $35.4 million. The company reported a loss per share of $0.05 for the third quarter, compared to a loss per share of $1.41 in the prior-year quarter. For the nine months, loss per share was $0.02, a reversal from earnings per share of $11.95 a year earlier.

Cash Flow and Financing Activity

Cash from operations for the nine months ended January 31, 2026, totaled $3.8 million, up sharply from $44,000 in the prior-year period. Cash used in investing activities was $165.8 million, while cash from financing activities reached $197.6 million, reflecting significant capital raising and deployment activity.

Financial Summary