Draganfly (DPRO) Q4 2025 earnings summary

Executive summary

• Achieved record revenue of $7.73 million in 2025, up 17.8% year-over-year, with Q4 revenue up 18.5%, supported by significant infrastructure investments and product launches.

• Product sales increased 28% year-over-year, while services revenue declined 27.7%.

• Operational highlights include the launch of the Outrider drone for border security, strategic partnerships, and expansion into military and commercial markets.

• Comprehensive loss widened to $22.98 million for 2025, up from $14.06 million in 2024, mainly due to higher operating costs and non-cash items.

• Secured a $50 million registered direct offering, strengthening the balance sheet and supporting ongoing scaling efforts.

Financial highlights

• Full-year revenue reached $7.73 million, with $6.87 million from product sales and $861,000 from drone services.

• Gross profit was $1.32 million, impacted by a one-time non-cash inventory write-down of $259,000.

• Adjusted gross margin declined to 20.4% from 30.9% in 2024, mainly due to sales mix.

• Q4 revenue was $1.91 million, with gross profit of $85,700 and adjusted Q4 margin of 17.2%.

• Cash balance at year-end was $90.16 million, with total assets of $101.39 million and working capital of $95.24 million.

Outlook and guidance

• Positioned for a revenue ramp in 2026 and beyond, leveraging a strong cash position and expanded product lineup.

• Management highlighted ongoing strategic partnerships and product deployments to drive future growth.

• Anticipates continued growth in military, border security, and commercial drone applications globally, with expansion into Asia-Pacific and defense sectors.