Draganfly (NASDAQ:DPRO) Issues Quarterly Earnings Results, Misses Expectations By $0.02 EPS

Draganfly (NASDAQ:DPRO) issued its earnings results on Monday. The company reported ($0.12) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.10) by ($0.02), Zacks reports. The business had revenue of $1.66 million for the quarter, compared to the consensus estimate of $1.78 million. Draganfly had a negative net margin of 292.88% and a negative return on equity of 38.26%.

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

• Q1 revenue rose 49.8% year over year to about CAD 2.3 million, driven mainly by product sales, while gross profit improved and adjusted gross margin increased to 19.6% from 17.5% last year.
• The company ended the quarter with a very strong cash balance of over CAD 147 million and working capital of CAD 154.4 million, giving it significant financial flexibility and minimal debt.
• Management highlighted several military and defense wins in the quarter, including U.S. Army FPV drone orders, international Commander 3XL orders, a Palantir AI-related swarming project, and sales to U.S. border counties and a Fortune 50 telecom customer.
• Draganfly emphasized that it has been selected by additional Department of War special operations units, and management said these relationships could translate into materially larger orders over time, potentially in the tens of millions.
• Management reiterated a pragmatic, selective growth strategy focused on interoperable drone platforms, strategic partnerships, and future M&A, while saying it does not expect to need additional financing in the near term unless for a major acquisition or unusually large order.

Draganfly Stock Performance

Shares of DPRO traded down $0.10 during midday trading on Wednesday, hitting $5.30. 684,701 shares of the stock were exchanged, compared to its average volume of 2,006,492. The firm has a market cap of $182.02 million, a P/E ratio of -5.39 and a beta of 2.58. Draganfly has a 52-week low of $1.63 and a 52-week high of $14.40. The stock has a fifty day simple moving average of $5.79 and a 200 day simple moving average of $7.15.

Institutional Trading of Draganfly

Hedge funds have recently modified their holdings of the stock. Jane Street Group LLC acquired a new stake in shares of Draganfly in the second quarter valued at $35,000. IFP Advisors Inc acquired a new stake in Draganfly in the third quarter valued at $39,000. Royal Bank of Canada raised its stake in Draganfly by 478.4% in the fourth quarter. Royal Bank of Canada now owns 8,647 shares of the company’s stock valued at $60,000 after buying an additional 7,152 shares in the last quarter. XTX Topco Ltd acquired a new stake in shares of Draganfly during the 2nd quarter worth about $65,000. Finally, Wexford Capital LP acquired a new stake in shares of Draganfly during the 3rd quarter worth about $67,000. 10.39% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

DPRO has been the subject of several research analyst reports. Northland Securities set a $13.00 price target on Draganfly in a report on Tuesday. HC Wainwright reaffirmed a “buy” rating and set a $14.00 target price on shares of Draganfly in a research report on Monday, March 30th. LADENBURG THALM/SH SH upgraded Draganfly to a “strong-buy” rating in a research note on Wednesday, May 6th. Finally, Needham & Company LLC reiterated a “buy” rating and set a $12.00 price target on shares of Draganfly in a research note on Tuesday. Two analysts have rated the stock with a Strong Buy rating and two have assigned a Buy rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Strong Buy” and an average target price of $14.50.

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.