Draganfly (DPRO) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue reached $2.16 million, up 22% year-over-year and 37% sequentially, driven by strong product sales and service provision.

• Gross profit was $505,000, a 9.3% year-over-year increase, with a gross margin of 24%.

• Cash balance surged to $68 million after recent financings and warrant exercises, significantly strengthening the balance sheet.

• Major defense and public safety contracts secured, including U.S. Southern Border Drone Pilot Program, Commander 3XL UAV military order, and preferred provider status for landmine mapping.

• Notable partnerships and product innovations, such as payload-agnostic drones and advanced AI-driven de-mining solutions, expanded market reach.

Financial highlights

• Q2 2025 revenue: $2.16 million (22% YoY increase, 37% QoQ increase).

• Product sales: $1.9 million; service revenue: $213,000.

• Gross profit: $505,000; gross margin: 24% (24.4% adjusted for non-cash items).

• Comprehensive loss: $4.75 million, improved from $7.1 million YoY but higher than Q1 due to increased costs and non-cash items.

• Total assets rose to $28.4 million from $10.2 million at 2024 year-end; working capital at $22.4 million.

• Cash balance at quarter-end: $22.6 million; post-financing: ~$68 million.

Outlook and guidance

• Focus remains on organic growth, rapid iteration, and selective M&A to support scaling.

• No formal guidance provided due to industry execution challenges; strong balance sheet enhances customer confidence.

• Positioned to benefit from U.S. and Canadian defense modernization initiatives and increased demand for secure drone platforms.