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 and major contracts in defense and public safety.

• Gross profit was $347,761, up 12.1%, but gross margin declined to 15.0% from 20.0% due to sales mix and a one-time inventory write-down.

• Comprehensive loss widened to $5,711,284, impacted by non-cash items including a $2,412,431 share issuance cost and inventory write-down.

• Cash balance as of March 31, 2026, was $147,339,721, up from $90,156,821 at year-end 2025, following a $50 million financing.

• Notable milestones included new defense contracts, technology integrations, and leadership appointments.

Financial highlights

• Revenue for Q1 2026: $2,312,353, up 49.4% year-over-year; product sales comprised $2,232,132.

• Gross profit: $347,761; adjusted gross profit (excluding inventory write-down): $453,601; adjusted gross margin: 19.6%.

• Comprehensive loss: $5,711,284, mainly due to higher costs and a $2,412,431 share issuance expense.

• Cash and cash equivalents: $147,339,721 as of March 31, 2026; working capital: $154,355,940; shareholders' equity: $155,782,440.

• Net loss per share (basic and diluted): $(0.17)–$(0.18) in Q1 2026.

Outlook and guidance

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

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

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

• Participation in Canadian defense initiatives and integration of autonomous swarm capabilities support future growth.