Draganfly (DPRO) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached CAD 2.16 million (USD 2.16M), up 14.4% year-over-year, with product sales at CAD 1.62 million and services at CAD 530,000; product sales increased 22.1% over last year.

• Gross profit was CAD 421,000 (USD 420,947), with gross margin at 19.5% versus 23.4% in Q3 2024, impacted by a one-time inventory write-down.

• Cash balance as of September 30, 2025, was CAD 69.9 million (USD 69.88M), up from CAD 6.3 million (USD 6.25M) at December 31, 2024.

• Major operational highlights include the launch of the Outrider Southern Border drone, new military board appointments, and key partnerships with Palladyne AI, Drone Nerds, Global Ordnance, and Autonome Labs.

• Significant U.S. Army order for FPV drones, Commander 3XL UAV selection by U.S. DoD, and Fortune 50 telecom company began purchasing heavy-lift drones.

Financial highlights

• Q3 2025 revenue increased 14.4% year-over-year to CAD 2.16 million (USD 2.16M); nine-month revenue totaled USD 5.82M, up from USD 4.95M.

• Gross profit was CAD 421,000 (USD 420,947), impacted by a one-time non-cash inventory write-down; adjusted gross profit would have been CAD 464,000.

• Gross margin (adjusted) was 21.5% versus 32.7% last year; Q3 2025 gross margin was 19.5%, down from 23.4% in Q3 2024.

• Total comprehensive loss was CAD 5.4 million (USD 5.43M), or CAD 3.6 million (USD 3.58M) excluding non-cash items.

• Cash and cash equivalents increased by USD 63.63M during the quarter, primarily due to a USD 25M direct offering.

Outlook and guidance

• Military orders are expected to dominate revenue in 2026, potentially accounting for up to 90% due to large contracts.

• Production capacity is set to quadruple by end of next year with seven new U.S. plants coming online.

• Expansion of U.S. manufacturing footprint to meet growing demand for scalable, American-made drone solutions.

• No acute need for additional capital raises; focus remains on prudent, opportunistic acquisitions centered on talent and scalability.

• Company expects to achieve EBITDA and cash flow positivity over time.