Draganfly (DPRO) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $2,312,353, a 49.4% year-over-year increase, with $2,232,132 from product sales.

• Gross profit was $347,761, and cash balance as of March 31, 2026, stood at $147,339,721.

• Major sales included FPV drones to the U.S. Army, Commander 3XLs for international military, and deployments with Search and Rescue Sweden and U.S. Air Force Special Operations Command.

• Strategic partnerships expanded, including with Global Ordnance, Babcock in Asia-Pacific, and integration with Palladyne AI.

• Focus remains on select military, public safety, and industrial customers, leveraging modular, interoperable drone platforms.

Financial highlights

• Revenue up 49.8% year-over-year to $2,312,353; product sales comprised $2,232,132.

• Gross profit rose to $347,761; gross margin was 15.0% (would have been 19.6% excluding inventory write-down).

• Q1 included a one-time non-cash inventory write-down of $105,800; adjusted gross profit would have been $453,600.

• Total comprehensive loss was $5,711,284, up from $3,424,825 last year, mainly due to higher costs and a $2,412,431 share issuance expense.

• Quarter-over-quarter, revenue increased 20.9%, and adjusted comprehensive loss improved to $4,200,000 from $8,300,000.

Outlook and guidance

• No formal guidance provided, but management is confident in meeting analyst consensus based on current contracts.

• Participation in Canadian Army and U.S. Air Force programs positions the company for future defense sector growth.

• Ongoing integration of autonomous swarm capabilities with Palladyne AI for defense applications.

• Future financing only anticipated for significant M&A or massive orders; current cash position is strong.

• Focus remains on building long-term strategic relationships and not overpromising on near-term results.