Draganfly (DPRO) Q3 2026 earnings summary

Executive summary

• Q3 revenue was CAD 2.05m, down 5.0% YoY; reported gross margin was 6.3%, rising to 24.2% excluding the CAD 366,609 inventory write-down.

• Strategic focus shifted toward larger defence and government programs, including selection for up to 5,000 Canadian tactical ISR systems and qualification across all five Defence Drone Initiative Marketplace streams.

• Cash was CAD 128.61m at quarter-end; U.S. and Canadian defence operations expanded, and Heavy Lift received FAA Section 44807 clearance for specified operations.

Financial highlights

• Q3 revenue was CAD 2.05m versus CAD 2.16m in Q3 2025; nine-month revenue was CAD 7.03m versus CAD 5.82m.

• Product sales were CAD 1.61m and nearly flat YoY; drone services contributed CAD 436k, with lower services revenue driving the decline.

• Gross profit was CAD 128,957 versus CAD 421k; excluding inventory write-downs, adjusted gross profit was CAD 495,566 versus CAD 464k.

• Q3 net loss was CAD 12.83m versus CAD 5.17m; comprehensive loss was CAD 13.03m, or adjusted CAD 12.61m versus CAD 3.58m.

• Nine-month net loss was CAD 30.49m versus CAD 13.36m in 2025.

Outlook and guidance

• Management sees a revenue inflection around Q2-Q3 2027, later than previously expected, amid U.S. funding delays and Canadian program timing.

• The Canadian tactical ISR selection covers up to 5,000 drones and CAD 25m; the first 100 are for testing and training, with further orders dependent on demand.

• Priorities include fulfilling existing contracts and advancing larger procurement opportunities; long procurement cycles may delay revenue, and production is being managed for anticipated requirements.

• Management cited at least two additional announcements before year-end and involvement in 19 Canadian military RFPs.

• Public safety plans include a DFR product and campus expansion after implementation at three sites; 1,500 campuses have inquired.