Parrot (PARRO) H2 2025 earnings summary

Executive summary

• Achieved record consolidated revenues of €79.8m in 2025, up 6% year-over-year at constant exchange rates, driven by ramp-up in micro-UAVs and photogrammetry solutions.

• Operations broke even in the second half of 2025, reflecting successful commercial acceleration and improved profitability.

• Strong order growth and larger contract sizes in defense and public security sectors signal robust market alignment.

Financial highlights

• Gross margin rose to €60.1m (75.4% of revenues) from €57.9m (74.1%) in 2024, reflecting favorable product mix and high-margin photogrammetry software.

• Net income (Group share) was €(14.5)m, down from €(9.2)m in 2024, with losses concentrated in the first half; near break-even in H2.

• Operating expenditure increased to €72.8m, mainly due to higher R&D and sales/marketing costs supporting new product launches.

• Cash position at year-end was €23.0m, down from €33.6m, reflecting investments in ramp-up and working capital.

Outlook and guidance

• Expects significant growth in micro-UAV revenues for H1 2026 versus H1 2025, with secured orders for 2026 nearly matching 2025 full-year revenues.

• Ongoing industrial ramp-up to meet rising demand, with focus on production capacity and supply chain resilience.

• Photogrammetry segment transitioning to subscription model, expected to temporarily weigh on 2026 revenues but improve long-term profitability and revenue recurrence.