Draganfly (DPRO) investor relations material

Executive summary

• Achieved record Q2 2026 revenue of $2.66 million (CAD 2.7 million), a 26% year-over-year increase, with product sales up 34.6% and driven by strong market positioning.

• Secured exclusive partnerships with IACLEA and the Small & Rural Association, expanding reach into campus and rural law enforcement markets.

• Completed the acquisition of Skip Dynamix, enhancing fixed-wing drone capabilities and government contacts.

• Awarded a significant DEVCOM contract for an ultra-light, modular counter-drone system, positioning for substantial future revenue.

• Comprehensive loss for Q2 2026 was $11.83 million, impacted by non-cash items including a $3.74 million share-based compensation grant and inventory write-downs.

Financial highlights

• Q2 2026 revenue: $2,664,237 (CAD 2.7 million), up 26% year-over-year; six-month revenue: $4,976,590.

• Gross profit was $533,149; gross margin declined to 20.0% (adjusted 21.7%) from 23.9% due to sales mix and inventory write-down.

• Net loss for Q2 2026 was $12.03 million, compared to $4.76 million in Q2 2025.

• Cash balance at quarter end was $131.9 million, up from $90.2 million at 2025 year-end, following a large February financing.

• Shareholders’ equity rose to $148.9 million as of June 30, 2026, from $96.6 million at December 31, 2025.

Outlook and guidance

• Management expects continued demand for secure, high-performance imaging and drone systems, supported by new product launches and defense contracts.

• Anticipates significant procurement and revenue growth from Canadian and NATO markets by year-end, with a measured approach to scaling operations.

• Forward-looking statements highlight growth opportunities but caution significant business and economic uncertainties.

• Plans further product rollouts and expects sizable orders from new partnerships and technology acquisitions.