Draganfly (DPRO) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $1.547 million, a 16% year-over-year increase, with gross profit at $310,000 and cash balance at $2.13 million at quarter-end.

• Product sales increased 24.5% year-over-year, driving revenue growth.

• Secured exclusive partnerships with Safe Lane and Autonomy Labs for de-mining, and expanded collaboration with Volatus Aerospace for geospatial and utility markets.

• Opened a new Tampa facility for testing, manufacturing, and strategic access to U.S. military and government clients.

• Closed $3.6 million in financing to support operations and large purchase order pursuits.

Financial highlights

• Q1 2025 revenue: $1,547,715 (up 16% year-over-year); product sales: $1,541,811 (up 24.5%).

• Gross profit: $310,088 (up 10.7%); gross margin: 20.0% (down from 21.1%); adjusted gross margin: 17.5%.

• Comprehensive loss for the quarter was $3.43 million, with adjusted comprehensive loss at $3.66 million.

• Total assets decreased to $6.92 million from $10.2 million at year-end, mainly due to lower cash.

• Working capital at quarter-end was $705,000; shareholders’ equity stood at $1.48 million.

Outlook and guidance

• Profitability is expected when annual revenue exceeds $30–$40 million, with a strong chance in 2026.

• Large contract pipeline exceeds $100 million, with significant orders and revenue growth expected in the next two quarters.

• Expanded collaboration and regulatory waivers support growth in automated geospatial, utility, and defense markets.

• Management anticipates 2025 to be a breakout year, focusing on signature sales and customer quality.