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

Draganfly (NASDAQ:DPRO) announced its quarterly earnings data on Monday, August 10th. The company reported ($0.24) earnings per share for the quarter, missing the consensus estimate of ($0.11) by ($0.13), Zacks reports. The company had revenue of $1.93 million during the quarter, compared to the consensus estimate of $2.56 million. Draganfly had a negative net margin of 355.34% and a negative return on equity of 26.61%. The company’s quarterly revenue was up 26.0% compared to the same quarter last year.

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 Price Performance

Draganfly stock opened at $5.38 on Wednesday. Draganfly has a 12 month low of $3.78 and a 12 month high of $14.40. The stock’s 50-day moving average is $4.61 and its 200-day moving average is $5.59. The company has a market cap of $184.94 million, a price-to-earnings ratio of -6.90 and a beta of 2.80.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on the company. LADENBURG THALM/SH SH dropped their price objective on Draganfly from $12.75 to $11.50 and set a “buy” rating on the stock in a research report on Thursday, August 13th. Needham & Company LLC dropped their target price on shares of Draganfly from $12.00 to $8.00 and set a “buy” rating for the company in a report on Tuesday, August 11th. HC Wainwright initiated coverage on shares of Draganfly in a report on Friday, May 29th. They issued a “buy” rating and a $14.00 target price on the stock. Northland Securities set a $13.00 target price on Draganfly in a research note on Tuesday, May 12th. Finally, Wall Street Zen downgraded Draganfly from a “sell” rating to a “strong sell” rating in a research report on Saturday, August 15th. One investment analyst has rated the stock with a Strong Buy rating and three have issued a Buy rating to the stock. Based on data from MarketBeat, Draganfly has a consensus rating of “Buy” and an average target price of $11.62.

Institutional Trading of Draganfly

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. IFP Advisors Inc acquired a new stake in shares of Draganfly during the 3rd quarter worth approximately $39,000. Wexford Capital LP acquired a new stake in shares of Draganfly during the 3rd quarter valued at $67,000. Royal Bank of Canada lifted its position in shares of Draganfly by 478.4% in the 4th quarter. Royal Bank of Canada now owns 8,647 shares of the company’s stock valued at $60,000 after acquiring an additional 7,152 shares in the last quarter. Qube Research & Technologies Ltd acquired a new position in shares of Draganfly in the 3rd quarter valued at about $84,000. Finally, Jane Street Group LLC purchased a new position in Draganfly in the second quarter valued at about $35,000. Institutional investors own 10.39% of the company’s stock.

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.