Draganfly (NASDAQ:DPRO) Posts Earnings Results, Misses Expectations By $0.04 EPS

Draganfly (NASDAQ:DPRO) posted its quarterly earnings data on Tuesday. The company reported ($0.23) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.19) by ($0.04), FiscalAI reports. The business had revenue of $2.88 million during the quarter, compared to analyst estimates of $2.69 million. Draganfly had a negative net margin of 355.34% and a negative return on equity of 26.61%.

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

DPRO stock traded down $0.14 during mid-day trading on Tuesday, reaching $3.21. The company had a trading volume of 577,667 shares, compared to its average volume of 1,612,332. The stock has a 50 day simple moving average of $4.69 and a two-hundred day simple moving average of $5.53. The company has a market capitalization of $110.35 million, a price-to-earnings ratio of -4.12 and a beta of 3.02. Draganfly has a 52 week low of $2.68 and a 52 week high of $10.62.

Analyst Upgrades and Downgrades

Several research analysts recently commented on DPRO shares. Zacks Research upgraded shares of Draganfly from a “strong sell” rating to a “hold” rating in a report on Tuesday, November 3rd. LADENBURG THALM/SH SH lowered their price target on shares of Draganfly from $12.75 to $11.50 and set a “buy” rating on the stock in a research note on Thursday, August 13th. Needham & Company LLC reissued a “buy” rating on shares of Draganfly in a research report on Tuesday, September 29th. Finally, Wall Street Zen downgraded shares of Draganfly from a “sell” rating to a “strong sell” rating in a research note on Saturday, August 15th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Buy” and a consensus price target of $11.62.

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.