Draganfly (NASDAQ:DPRO – Get Free Report) issued its earnings results on Tuesday. The company reported ($0.25) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.19) by ($0.06), Zacks reports. Draganfly had a negative return on equity of 26.61% and a negative net margin of 355.34%. The company had revenue of $2.88 million during the quarter, compared to analyst estimates of $2.69 million.
Here are the key takeaways from Draganfly’s conference call:
- Q3 revenue fell 5% year over year to CAD 2.0 million and 23% sequentially, while the company reported a CAD 13 million comprehensive loss versus CAD 5.4 million a year earlier. A CAD 367,000 inventory write-down reduced reported gross margin to 6.3%; management said adjusted margin was 24.2%, but adjusted loss still increased year over year.
- Draganfly ended the quarter with CAD 128 million in cash and minimal debt, following financings earlier in the year. The large cash balance provides capacity to fund expansion and potential acquisitions, though it does not itself demonstrate progress toward self-sustaining cash flow.
- The Canadian government selected Draganfly for a low-cost tactical ISR drone program valued at up to CAD 25 million for as many as 5,000 drones. The company expects to deliver an initial 100 units soon; further orders will depend on demand and the program’s subsequent process.
- The Heavy Lift drone received FAA approval to fly beyond visual line of sight over highways and people, with the company saying customers can use its approval without obtaining their own equivalent waiver. Management sees potential to support commercial and military sales.
- Management said a meaningful revenue inflection is now expected around Q2–Q3 2027, roughly a year later than it had previously anticipated, citing slow procurement and delayed funding in parts of the market. It pointed to a large pipeline and upcoming announcements, but those opportunities have not yet translated into reported growth.
Draganfly Price Performance
Shares of Draganfly stock traded down $0.19 during trading on Wednesday, hitting $3.02. 538,941 shares of the company’s stock traded hands, compared to its average volume of 1,607,430. The firm’s fifty day moving average price is $4.64 and its 200 day moving average price is $5.50. The company has a market cap of $103.78 million, a PE ratio of -3.88 and a beta of 3.02. Draganfly has a twelve month low of $2.68 and a twelve month high of $10.62.
Draganfly News Roundup
Here’s some of the latest news about DPRO:
- Positive Sentiment: Draganfly said it was selected to supply up to 5,000 tactical ISR drones to the Canadian Armed Forces and qualified for all five streams of Canada’s Defence Drone Initiative Marketplace. It also received an FAA exemption for specified Heavy Lift drone operations, potentially broadening deployment opportunities. Draganfly third-quarter results and business update
- Neutral Sentiment: Needham lowered its price target to $6 from $8 but kept a Buy rating. The reduced target reflects a less optimistic outlook, while the maintained rating signals continued analyst confidence. Needham analyst ratings
- Negative Sentiment: Q3 results were weak: revenue fell 5% year over year to about $2.05 million, gross margin dropped to 6.3% from 19.5%, and net loss widened to $12.8 million from $5.2 million. The quarterly loss also missed analysts’ expectations, a likely near-term overhang for the stock. Zacks report on Draganfly’s Q3 results
Analyst Upgrades and Downgrades
Several equities research analysts recently commented on the stock. Needham & Company LLC reduced their price target on shares of Draganfly from $8.00 to $6.00 and set a “buy” rating for the company in a research report on Wednesday. Wall Street Zen lowered Draganfly from a “sell” rating to a “strong sell” rating in a report on Saturday, August 15th. Zacks Research raised shares of Draganfly from a “strong sell” rating to a “hold” rating in a research report on Tuesday, November 3rd. Finally, LADENBURG THALM/SH SH reduced their price objective on shares of Draganfly from $12.75 to $11.50 and set a “buy” rating for the company in a research note on Thursday, August 13th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of “Buy” and an average price target of $11.12.
Check Out Our Latest Research Report on DPRO
Draganfly Company Profile
Draganfly Inc. is a Canadian drone technology company that develops and provides unmanned aerial systems, software and related services. Its solutions are designed for public safety, defense and security, agriculture, industrial inspection, mapping, surveying, environmental monitoring and delivery applications. The company’s offerings include remotely piloted aircraft, autonomous drone systems, payloads, flight-control technology, data-collection tools and professional services. Draganfly also provides drone design, manufacturing, training, consulting and operational support, helping organizations collect aerial imagery and other data for analysis and decision-making.
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