The autonomous systems manufacturer discovered that the carrying value of its space reporting unit was incorrectly calculated. Specifically, the analysis failed to account for goodwill linked to deferred tax assets and liabilities, an oversight triggered by the termination of a U.S. government contract for phased array antenna systems.

This accounting error led to a substantial distortion of the company's balance sheet. AeroVironment reported that its net loss was understated by $87.3 million, while total assets were overstated by $89.4 million. Consequently, the firm advised investors that its previously released third-quarter report is unreliable. This latest stumble adds to a difficult year for shareholders, with the stock price having declined 36% since January.