Draganfly (NASDAQ:DPRO) Announces Earnings Results

Draganfly (NASDAQ:DPRO) issued its earnings results on Monday, August 10th. The company reported ($0.24) EPS for the quarter, missing the consensus estimate of ($0.11) by ($0.13), Zacks reports. Draganfly had a negative net margin of 355.34% and a negative return on equity of 26.61%. The business had revenue of $1.93 million for the quarter, compared to the consensus estimate of $2.56 million. The company’s revenue for the quarter 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 Price Performance

Shares of DPRO traded down $0.07 during mid-day trading on Tuesday, hitting $6.05. 855,244 shares of the company’s stock were exchanged, compared to its average volume of 1,774,151. Draganfly has a 52 week low of $3.78 and a 52 week high of $14.40. The company has a 50-day simple moving average of $4.69 and a 200 day simple moving average of $5.57. The company has a market cap of $208.15 million, a PE ratio of -7.75 and a beta of 2.80.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on DPRO. HC Wainwright started coverage on Draganfly in a research note on Friday, May 29th. They issued a “buy” rating and a $14.00 price target for the company. Wall Street Zen cut shares of Draganfly from a “sell” rating to a “strong sell” rating in a report on Saturday, August 15th. Northland Securities set a $13.00 target price on shares of Draganfly in a research note on Tuesday, May 12th. LADENBURG THALM/SH SH cut their target price 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. Finally, Needham & Company LLC reduced their price target on shares of Draganfly from $12.00 to $8.00 and set a “buy” rating on the stock in a research report on Tuesday, August 11th. One equities research analyst has rated the stock with a Strong Buy rating and three have given a Buy rating to the company’s stock. Based on data from MarketBeat, Draganfly has a consensus rating of “Buy” and a consensus price target of $11.62.

Hedge Funds Weigh In On Draganfly

Several hedge funds have recently modified their holdings of DPRO. IFP Advisors Inc bought a new stake in Draganfly during the third quarter worth about $39,000. Wexford Capital LP acquired a new position in Draganfly during the third quarter valued at approximately $67,000. Royal Bank of Canada grew 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 purchasing an additional 7,152 shares in the last quarter. Qube Research & Technologies Ltd bought a new position in Draganfly in the third quarter valued at approximately $84,000. Finally, Jane Street Group LLC acquired a new position in shares of Draganfly during the 2nd quarter worth approximately $35,000. Institutional investors own 10.39% of the company’s stock.

Draganfly Company Profile

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.