Draganfly (NASDAQ:DPRO) Announces Earnings Results, Misses Expectations By $0.13 EPS

Draganfly (NASDAQ:DPRO) issued its quarterly earnings results on Monday, August 10th. The company reported ($0.24) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.11) by ($0.13), Zacks reports. Draganfly had a negative return on equity of 26.61% and a negative net margin of 355.34%.The business had revenue of $1.93 million for the quarter, compared to analysts’ expectations of $2.56 million. Draganfly’s revenue was up 26.0% on a year-over-year basis.

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

• Record Q2 revenue reached CAD 2.664 million, up 26% year over year, with product sales exceeding CAD 2.5 million and gross profit of approximately CAD 533,000.
• The company’s comprehensive loss widened to CAD 11.8 million from CAD 4.7 million a year earlier, while adjusted gross margin declined to 21.7% from 24.3% amid higher operating, R&D, personnel, and professional costs.
• Draganfly highlighted a pipeline of more than 50 campuses following its exclusive IACLEA agreement and said its Small and Rural Association partnership could address roughly 80% of U.S. police forces, although the rollout will be phased through pilot programs.
• The DEVCOM counter-drone contract, new Special Forces selections for the Flex FPV, and the Skip Dynamix acquisition strengthen the company’s defense portfolio; management estimates the counter-UAS opportunity could represent hundreds of millions of Canadian dollars over several years.
• Draganfly ended the quarter with CAD 131.9 million in cash and minimal debt, while management expects significant Canadian defense procurement and additional U.S. manufacturing capacity to support a future revenue ramp, though it acknowledged the company is several quarters behind some industry peers.

Draganfly Stock Down 4.2%

Shares of DPRO stock traded down $0.25 during trading hours on Wednesday, reaching $5.77. 956,495 shares of the company’s stock were exchanged, compared to its average volume of 1,774,221. The business has a fifty day moving average price of $4.71 and a 200-day moving average price of $5.56. The stock has a market capitalization of $198.35 million, a P/E ratio of -7.40 and a beta of 2.80. Draganfly has a fifty-two week low of $3.78 and a fifty-two week high of $14.40.

Institutional Investors Weigh In On Draganfly

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Vident Advisory LLC bought a new stake in Draganfly during the 4th quarter worth about $813,000. XTX Topco Ltd acquired a new position in shares of Draganfly in the fourth quarter valued at approximately $108,000. Millennium Management LLC bought a new stake in shares of Draganfly during the fourth quarter worth $249,000. Engineers Gate Manager LP bought a new stake in Draganfly in the 4th quarter valued at $130,000. Finally, Concentric Capital Strategies LP acquired a new position in Draganfly in the 4th quarter worth $1,569,000. Institutional investors and hedge funds own 10.39% of the company’s stock.

Wall Street Analysts Forecast Growth

DPRO has been the topic of several analyst reports. Wall Street Zen lowered shares of Draganfly from a “sell” rating to a “strong sell” rating in a research note on Saturday, August 15th. HC Wainwright initiated coverage on Draganfly in a report on Friday, May 29th. They issued a “buy” rating and a $14.00 price objective for the company. Northland Securities set a $13.00 target price on Draganfly in a research report on Tuesday, May 12th. LADENBURG THALM/SH SH cut their target price on Draganfly from $12.75 to $11.50 and set a “buy” rating on the stock in a research note on Thursday, August 13th. Finally, Needham & Company LLC decreased their price target on Draganfly from $12.00 to $8.00 and set a “buy” rating for the company in a research note on Tuesday, August 11th. One analyst has rated the stock with a Strong Buy rating and three have issued a Buy rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Buy” and an average target price of $11.62.

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.