Draganfly (DPRO) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 revenue of CAD 2.7 million (USD 2.66 million), up 26% year-over-year, driven by strong product sales and strategic 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.

• Gross profit rose to CAD 533,149 (USD 533K), though gross margin declined due to sales mix and a one-time inventory write-down.

Financial highlights

• Q2 2026 revenue was CAD 2.7 million (USD 2,664,237), with product sales contributing CAD 2.6 million and six-month revenue at USD 4,976,590.

• Gross margin for Q2 2026 was 20.0% (adjusted: 21.7%), down from 23.9% (24.3%) year-over-year.

• Total comprehensive loss increased to CAD 11.8 million (USD 11.83M), mainly due to higher operating costs and non-cash items.

• Cash balance at quarter end was CAD 131.9 million (USD 131.9M), up from CAD 90.2 million at 2025 year-end.

• Shareholder equity increased to CAD 148.9 million (USD 148.9M) from CAD 96.6 million at year-end.

Outlook and guidance

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

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

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

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