Draganfly (NASDAQ:DPRO) Releases Quarterly Earnings Results, Misses Estimates By $0.04 EPS

Key Points

• Draganfly reported a quarterly loss of $0.23 per share, missing the consensus estimate by $0.04, while revenue of $2.88 million exceeded analysts’ $2.69 million estimate.
• On its conference call, the company reported Q3 revenue down 5% year over year and a CAD 13 million comprehensive loss. Management now expects a meaningful revenue inflection around Q2–Q3 2027, later than previously anticipated.
• Potential growth drivers include a Canadian government tactical-drone program worth up to CAD 25 million and FAA approval for Heavy Lift drone operations beyond visual line of sight; the initial government delivery is expected soon.

Draganfly (NASDAQ:DPRO - Get Free Report) issued its quarterly earnings data on Tuesday. The company reported ($0.23) earnings per share (EPS) for the quarter, missing the consensus estimate 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 Trading Down 4.2%

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

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on DPRO. Zacks Research raised shares of Draganfly from a "strong sell" rating to a "hold" rating in a research note on Tuesday, November 3rd. Wall Street Zen cut shares of Draganfly from a "sell" rating to a "strong sell" rating in a report on Saturday, August 15th. Needham & Company LLC reissued a "buy" rating on shares of Draganfly in a research report on Tuesday, September 29th. Finally, LADENBURG THALM/SH SH dropped their price objective on shares of Draganfly from $12.75 to $11.50 and set a "buy" rating on the stock in a report on Thursday, August 13th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Buy" and a consensus target price of $11.62.

About Draganfly

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.

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