Draganfly (NASDAQ:DPRO) Releases Quarterly Earnings Results, Misses Expectations By $0.07 EPS

Draganfly (NASDAQ:DPRO) released its quarterly earnings results on Tuesday. The company reported ($0.20) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.13) by ($0.07), Zacks reports. Draganfly had a negative net margin of 243.20% and a negative return on equity of 71.81%. The business had revenue of $1.37 million for the quarter, compared to analyst estimates of $2.78 million.

Here are the key takeaways from Draganfly’s conference call:

• Company reported a record 2025 revenue of $7.7M (up 17.8%), ended the year with ~CAD 90.1M cash and subsequently closed a US$50M registered direct offering, providing a strong balance sheet for 2026–27 growth.
• Total comprehensive loss widened to $22.9M (2025 vs $14.06M prior year), with adjusted gross margin down to 20.4% (from 30.9%) and higher office/wage costs as the company scales, partly driven by inventory write-downs.
• Product momentum centered on the new Outrider — a 7‑hour, 100‑lb payload multi‑mission drone — successfully deployed with Cochise County for Southern Border operations and positioned as a repeatable border‑management solution internationally.
• Strategic defense traction through an U.S. Army FPV order, a partnership with DLA prime Global Ordnance, integrations with Palladyne AI (swarming) and Autonome (landmine clearance), plus hires of senior military advisors, all of which expand the company’s addressable military and public‑safety markets.

Draganfly Trading Down 21.8%

Draganfly stock traded down $1.38 during mid-day trading on Wednesday, hitting $4.95. The stock had a trading volume of 5,769,856 shares, compared to its average volume of 2,257,227. The stock has a 50-day simple moving average of $7.49 and a two-hundred day simple moving average of $7.79. The stock has a market capitalization of $170.06 million, a PE ratio of -2.67 and a beta of 2.66. Draganfly has a 12 month low of $1.63 and a 12 month high of $14.40.

Institutional Investors Weigh In On Draganfly

Several institutional investors have recently modified their holdings of the business. Vident Advisory LLC bought a new stake in shares of Draganfly during the fourth quarter worth approximately $813,000. XTX Topco Ltd bought a new position in Draganfly in the fourth quarter valued at approximately $108,000. Millennium Management LLC acquired a new stake in Draganfly during the 4th quarter worth $249,000. Engineers Gate Manager LP bought a new stake in shares of Draganfly during the 4th quarter valued at $130,000. Finally, Concentric Capital Strategies LP acquired a new position in shares of Draganfly in the 4th quarter valued at $1,569,000. Institutional investors and hedge funds own 10.39% of the company’s stock.

Analysts Set New Price Targets

A number of research firms recently issued reports on DPRO. Northland Securities set a $20.00 price target on Draganfly in a report on Thursday, January 15th. Needham & Company LLC decreased their price objective on shares of Draganfly from $14.00 to $12.00 and set a “buy” rating on the stock in a report on Wednesday. LADENBURG THALM/SH SH raised shares of Draganfly to a “strong-buy” rating in a research note on Thursday, December 18th. Finally, Wall Street Zen lowered shares of Draganfly from a “hold” rating to a “sell” rating in a research report on Saturday, December 6th. Two analysts have rated the stock with a Strong Buy rating and two have issued a Buy rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Strong Buy” and a consensus price target of $16.25.

Key Headlines Impacting Draganfly

Here are the key news stories impacting Draganfly this week:

• Positive Sentiment: Revenue growth and product momentum — Draganfly reported Q4 revenue up 18.5% year‑over‑year and full‑year 2025 revenue up 17.8%; product sales rose ~28% YoY, showing demand strength in hardware sales. GlobeNewswire Release
• Positive Sentiment: Commercial & defense contract wins — management highlighted strategic partnerships (Global Ordnance), a second major order from a Fortune‑50 telecom for heavy‑lift drones, a U.S. Air Force SOCOM contract (via DelMar Aerospace), and reseller and AI partnerships that expand addressable markets. Quiver Quant / Press Summary
• Positive Sentiment: Strong reported cash position — the company reported roughly $90.2M in cash at year‑end, which reduces near‑term financing risk and supports execution on defense/commercial initiatives. GlobeNewswire Release
• Positive Sentiment: Analyst view remains constructive despite target cut — Needham cut its price target from $14 to $12 but kept a “Buy” rating, signaling continued analyst confidence in the long‑term thesis even after the results. Benzinga / TickerReport
• Neutral Sentiment: Shareholder update and investor outreach — management held a shareholder update call covering the results and strategy (useful for detail but not immediately market-moving beyond the earnings print). GlobeNewswire Release
• Neutral Sentiment: Short‑interest reporting appears inconsistent — multiple notices flagged a “large increase” but the data show zero shares/NaN changes (likely a reporting glitch); not a clear short‑squeeze signal either way.
• Negative Sentiment: Earnings and revenue miss — Q4 EPS of ($0.20) missed the consensus loss of ($0.13) and quarter revenue (~$1.37M) missed estimates (~$2.78M), triggering negative near‑term sentiment and selling pressure. MarketBeat / Earnings
• Negative Sentiment: Widening losses and margin pressure — the company recorded a much larger comprehensive loss and reported lower gross margins, driven by higher operating expenses and several non‑cash inventory write‑downs and fair‑value derivative charges. These factors raise near‑term profitability concerns. Quiver / Financial Summary
• Negative Sentiment: After‑hours selling — coverage noted a >15% after‑hours drop following the release, amplifying the intraday decline and increasing volatility into the next session. MSN After‑Hours Coverage

Draganfly Company Profile

Draganfly Inc (NASDAQ: DPRO) is a Canada-based developer and manufacturer of unmanned aerial systems (UAS) and related software solutions for commercial, government and academic applications. Headquartered in Saskatoon, Saskatchewan, the company specializes in designing lightweight, modular drones that integrate advanced sensor payloads—including high-resolution imaging, multispectral and thermal cameras—to gather aerial data across a range of industries.

The company’s core offerings include turnkey UAS platforms, data-capture payloads and proprietary analytics software that enable clients to perform precision agriculture monitoring, land surveying, infrastructure inspection and environmental assessment.