ZenaTech Targets $55M Run Rate as Drone Network, Defense Push Accelerate

Key Points

• ZenaTech is expanding its drone-as-a-service network through acquisitions, reaching more than 40 locations and targeting recurring revenue from surveys, inspections, infrastructure and other commercial applications.
• The company reported rapid growth, with first-half revenue of US$12.5 million and a targeted US$55 million revenue run rate over the next year; management is aiming for adjusted EBITDA breakeven in 2027.
• ZenaTech is pursuing defense and government opportunities, including Blue UAS certification for three drones expected in early 2027, while developing heavy-lift, counter-drone and underwater systems and expanding U.S. federal sales efforts.

ZenaTech NASDAQ: ZENA outlined its expansion strategy across drone services, commercial software and defense applications during a company presentation, highlighting acquisitions, revenue growth and plans to pursue U.S. government opportunities.

Linda Montgomery, vice president of corporate development, said the company is building artificial intelligence-enabled autonomous drone platforms and related services for commercial, government and defense customers. ZenaTech operates a drone-as-a-service business through subsidiary ZenaDrone, as well as an enterprise software-as-a-service division with multiple business and government software brands.

Montgomery said ZenaTech’s drone-as-a-service network has expanded to more than 40 locations, or approximately 45 following newly announced additions in Australia. The company provides turnkey services including land surveys, inspections and related data processing, allowing customers to use drone services without owning aircraft, maintaining equipment or managing pilots and regulatory requirements.

Acquisition-Led Drone Services Expansion

The company has completed 31 acquisitions since beginning its acquisition program at the start of last year, Montgomery said. The targets have included land survey businesses and inspection companies serving areas such as solar installations, cell towers and other infrastructure.

ZenaTech’s strategy is to integrate its drone technology into the acquired operations to improve speed, precision, data collection and capacity. The company is targeting recurring, subscription-based and usage-based customer relationships, particularly with builders, construction companies and government entities.

Montgomery said acquired businesses frequently have established and profitable customer relationships, including relationships with telecom and railway customers. ZenaTech also is working to expand its service portfolio into areas including precision agriculture, mining and drone-based power washing.

Jim Sherman, ZenaTech’s chief financial officer, said the company’s 2025 acquisitions delivered approximately 27% organic revenue growth on a year-over-year basis as the company added technology and converted operations. He said acquisitions completed in 2026 are expected to begin contributing organic growth in 2027.

Revenue Growth and 2027 EBITDA Target

Montgomery said ZenaTech generated CAD$2 million in revenue in 2024, primarily from its software business, followed by CAD$9.3 million last year. She said first-half revenue totaled US$12.5 million and described the company as having achieved seven consecutive quarters of revenue growth.

Sherman said first-quarter revenue was approximately CAD$5.9 million and second-quarter revenue was CAD$6.6 million. He estimated third-quarter revenue at about CAD$14 million, subject to audit review, representing approximately US$10 million.

The company has stated that it is targeting adjusted EBITDA breakeven in 2027. Sherman said the expected path to breakeven includes continued acquisition-driven and organic growth, increased adoption of technology at acquired operations, larger inspection opportunities and the start of government sales.

Montgomery said ZenaTech is targeting a revenue run rate of about US$55 million over the next year.

Drone Portfolio and Defense Plans

ZenaTech described a portfolio spanning land-survey, inspection, indoor inventory-management, underwater and heavy-lift drone platforms. The IQ Quad is being internally tested for land-survey operations, while the IQ Square is used for outdoor line-of-sight inspections and power washing. The IQ Nano indoor inspection drone, which can read barcodes, is in customer-paid trials, according to Montgomery.

The company’s IQ Aqua underwater drone is in testing, while the ZenaDrone 1000 heavy-lift platform can carry up to 40 kilograms and is being evaluated for defense-related inspections, surveillance, reconnaissance and cargo uses. Montgomery also said ZenaTech is developing counter-unmanned aircraft systems, including interceptor drones and a marine-based launch and refueling platform.

For government opportunities, ZenaTech is pursuing Blue UAS certification for three drones. Montgomery said the company was in the latter stages of the certification process, while Sherman said he expects the certifications to be completed early in 2027. The certification would allow the company to seek placement on government procurement lists and pursue larger government sales, according to management.

The company has previously conducted paid trials with the Navy and Air Force, Montgomery said, and is establishing a Washington, D.C., office for federal sales. ZenaTech also has three manufacturing facilities, including operations in Sharjah near Dubai, an expanding facility in Arizona intended to support domestic production, and a Taiwan facility producing components such as sensors and printed circuit boards.

Looking ahead, Sherman said he expects military sales to become the company’s largest source of shareholder returns over a three-year period, though he said the drone-as-a-service business has exceeded expectations for revenue growth. He added that ZenaTech could consider licensing its AI software externally if it can do so without compromising proprietary technology.

About ZenaTech (NASDAQ:ZENA)

ZenaTech, Inc NASDAQ: ZENA is a technology company focused on artificial intelligence, drone-based solutions and enterprise software. Its business combines autonomous drone development with cloud-based applications intended to help organizations manage operations, data and workflows.

The company's ZenaDrone product line is designed for commercial and industrial applications, including inspection, monitoring, logistics, agriculture, public safety and defense. The systems are intended to use autonomous flight capabilities, artificial intelligence and other technologies to collect data and support tasks that may otherwise require manual aircraft operations.

ZenaTech also develops and markets software solutions for businesses, including tools associated with customer relationship management, enterprise resource planning, workforce management and office productivity.

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