Draganfly (NASDAQ:DPRO) Announces Earnings Results, Misses Estimates By $0.13 EPS

Draganfly (NASDAQ:DPRO) announced its quarterly earnings results on Monday. The company reported ($0.24) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.11) by ($0.13), Zacks reports. Draganfly had a negative net margin of 292.88% and a negative return on equity of 27.88%. The business had revenue of $3.75 million for the quarter, compared to analysts’ expectations of $2.56 million.

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

• Record Q2 revenue reached CAD 2.664 million, up 26% year over year, with product sales exceeding CAD 2.5 million and gross profit of approximately CAD 533,000.
• The company’s comprehensive loss widened to CAD 11.8 million from CAD 4.7 million a year earlier, while adjusted gross margin declined to 21.7% from 24.3% amid higher operating, R&D, personnel, and professional costs.
• Draganfly highlighted a pipeline of more than 50 campuses following its exclusive IACLEA agreement and said its Small and Rural Association partnership could address roughly 80% of U.S. police forces, although the rollout will be phased through pilot programs.
• The DEVCOM counter-drone contract, new Special Forces selections for the Flex FPV, and the Skip Dynamix acquisition strengthen the company’s defense portfolio; management estimates the counter-UAS opportunity could represent hundreds of millions of Canadian dollars over several years.
• Draganfly ended the quarter with CAD 131.9 million in cash and minimal debt, while management expects significant Canadian defense procurement and additional U.S. manufacturing capacity to support a future revenue ramp, though it acknowledged the company is several quarters behind some industry peers.

Draganfly Stock Performance

Draganfly stock opened at $4.72 on Tuesday. Draganfly has a one year low of $3.78 and a one year high of $14.40. The stock has a fifty day moving average of $5.11 and a 200 day moving average of $5.97. The stock has a market cap of $162.25 million, a PE ratio of -4.82 and a beta of 2.73.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on DPRO shares. HC Wainwright initiated coverage on Draganfly in a research report on Friday, May 29th. They set a “buy” rating and a $14.00 price objective for the company. Northland Securities set a $13.00 price objective on shares of Draganfly in a research note on Tuesday, May 12th. Needham & Company LLC cut their price objective on shares of Draganfly from $12.00 to $8.00 and set a “buy” rating on the stock in a report on Tuesday. Finally, LADENBURG THALM/SH SH raised shares of Draganfly to a “strong-buy” rating in a research note on Wednesday, May 6th. Two analysts have rated the stock with a Strong Buy rating and two have assigned a Buy rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Strong Buy” and a consensus price target of $13.50.

Institutional Investors Weigh In On Draganfly

Large investors have recently made changes to their positions in the company. Concentric Capital Strategies LP bought a new position in shares of Draganfly in the 4th quarter worth approximately $1,569,000. Vident Advisory LLC purchased a new stake in Draganfly during the fourth quarter valued at approximately $813,000. Virtu Financial LLC purchased a new stake in Draganfly during the third quarter valued at approximately $894,000. Marshall Wace LLP bought a new position in Draganfly in the fourth quarter worth approximately $751,000. Finally, Scientech Research LLC bought a new position in Draganfly in the third quarter worth approximately $514,000. 10.39% of the stock is currently owned by institutional investors.

About Draganfly

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.