ZenaTech Details Drone Services Growth, Acquisitions and Defense Expansion

Key Points

• ZenaTech’s revenue is accelerating: Second-quarter revenue reached CAD 6.6 million and first-half revenue CAD 12.5 million, increases of more than 300% and 400%, respectively. The company has also completed 29 acquisitions, creating about 40 global Drone as a Service locations.
• The company is expanding Drone as a Service beyond land surveying into infrastructure inspections, construction monitoring, power washing, agriculture and warehouse inventory management. ZenaTech aims to shift toward recurring subscription and multiyear contracts while improving margins through automation and technician training.
• Defense is a major growth focus: ZenaTech is pursuing Blue UAS certification for four drones, developing counter-drone systems and expanding U.S. manufacturing and government engagement. Its largest platform, the ZenaDrone 1000, is being positioned for defense surveillance as well as commercial cargo and delivery applications.

ZenaTech NASDAQ: ZENA outlined its strategy to build a global drone services platform through acquisitions, internally developed drone technology and expansion into commercial, government and defense markets.

Linda Montgomery, the company’s vice president of corporate development, said ZenaTech has transitioned from an enterprise software business into a provider of AI-enabled autonomous drone platforms and drone-based services. The company’s Drone as a Service business is currently its primary revenue-generating area, she said.

“We design and manufacture drones,” Montgomery said. “We do Drone as a Service,” offering customers turnkey services without requiring them to invest in drone technology, pilots or regulatory compliance.

Revenue growth and acquisition strategy

Montgomery said ZenaTech reported second-quarter revenue of CAD 6.6 million and first-half revenue of CAD 12.5 million, representing revenue increases of more than 300% and 400%, respectively. The company has recorded seven consecutive quarters of revenue growth, she said.

ZenaTech has completed 29 acquisitions of land-surveying and engineering businesses since beginning its acquisition program at the start of the prior year, according to Montgomery. Those acquisitions have helped the company establish roughly 40 Drone as a Service locations globally.

The strategy is centered on acquiring “low-tech, under-digitized” businesses and introducing drones, automation and centralized data services into their operations. Montgomery said the company aims to reduce the cost per job, increase capacity and shorten turnaround times for customers receiving surveys and inspection data.

The company has estimated a near-term revenue opportunity of approximately CAD 55 million, a figure Montgomery said incorporates annualized second-quarter 2026 revenue and expected revenue from signed acquisition letters of intent, if those transactions close.

ZenaTech is working to shift work that is currently performed on a per-use basis toward subscription-based and multiyear recurring contracts. The company is also seeking to expand margins by training surveying and other technicians as drone pilots, reducing the staffing and time needed for individual jobs.

Commercial service offerings

The company’s Drone as a Service operations currently focus heavily on land surveying, while also addressing infrastructure inspection and other applications. Montgomery identified several areas of focus:

• Land surveys and construction-site monitoring, including specialized work for AI data-center construction projects.
• Inspections of solar infrastructure, power lines, oil and gas operations, and cell-phone towers.
• Power-washing services using tethered drones supplied with water and power.
• Precision agriculture applications.
• Indoor inventory management for warehouses and logistics operations.

Montgomery said the company intends to position Drone as a Service as a local provider of a broad range of drone-enabled services. For long-duration construction projects, for example, it aims to become a recurring provider throughout the two- or three-year life of the project.

Drone portfolio and development programs

ZenaTech is testing several drone products internally or with customers. Its IQ Nano indoor inventory drone is in customer pilot programs, while its IQ Quad land-survey drone and IQ Square outdoor inspection and power-washing drone are in internal testing, Montgomery said. The company’s IQ Aqua underwater drone is also at the testing stage for commercial and defense uses.

The company’s ZenaDrone 1000 is its largest platform, measuring 7 feet by 12 feet and capable of carrying up to 40 kilograms, according to Montgomery. She said the drone is intended for intelligence, surveillance and reconnaissance applications in defense, while potential commercial uses could include transporting refrigerated medical supplies or ship-to-ship deliveries.

ZenaTech is also developing counter-unmanned aircraft systems, including Interceptor drones, an IQ Glider refueling, landing and takeoff station, and the one-way expendable Interceptor P-1, which Montgomery said is in testing. The company is also investing in research involving drone swarms and wildfire-management technology using acoustic systems.

Defense certification and manufacturing expansion

Montgomery said ZenaTech is pursuing Blue UAS certification for four drones, a designation needed to be included on certain U.S. government procurement lists. The certification process takes several months, she said.

While working toward certification, the company has been engaging with program managers in defense organizations and the U.S. government for more than a year. ZenaTech has announced its first demonstration for a defense agency and hopes additional demonstrations and pilots will lead to contracts, Montgomery said.

The company has established a Washington office with about three employees and plans to add staff to support its defense business. It operates its largest manufacturing facility, a 22,000-square-foot site, near Dubai, as well as a facility in Mesa, Arizona that is being expanded for U.S. production. ZenaTech also has a Taiwan operation for component parts and is setting up a location in Ukraine for testing and manufacturing.

In response to an analyst question, Montgomery said integrating an acquired land-survey company with ZenaTech’s drone technology typically takes six months to one year. The process includes training teams, hiring drone pilots and incorporating the company’s operating and backend technology. She said ZenaTech has an integration team prepared to begin work on the first day after an acquisition closes.

As of the end of the second quarter, ZenaTech had 200 million shares outstanding and CAD 24.4 million in cash and marketable securities, Montgomery said.

About ZenaTech (NASDAQ:ZENA)

ZenaTech, Inc NASDAQ: ZENA is a technology company focused on artificial intelligence, enterprise software and drone-based solutions. Through its ZenaDrone business, the company develops autonomous and semi-autonomous drones designed to support applications such as logistics, surveillance, public safety, agriculture, defense and industrial inspections.

The company's drone portfolio includes the ZenaDrone 1000, an AI-enabled unmanned aerial system intended for cargo transport, monitoring and other commercial and government uses.

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