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

Draganfly (NASDAQ:DPRO) posted its quarterly earnings results on Tuesday. The company reported ($0.23) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.19) by ($0.04), FiscalAI reports. The firm had revenue of $2.88 million for the quarter, compared to analyst estimates of $2.69 million. Draganfly had a negative return on equity of 26.61% and a negative net margin of 355.34%.

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 Stock Performance

DPRO traded down $0.14 during midday trading on Tuesday, reaching $3.21. 577,667 shares of the company were exchanged, compared to its average volume of 1,612,332. The company’s fifty day moving average price is $4.69 and its 200 day moving average price is $5.53. The company has a market cap of $110.35 million, a price-to-earnings ratio of -4.12 and a beta of 3.02. Draganfly has a one year low of $2.68 and a one year high of $10.62.

Analyst Ratings Changes

Several research firms have recently commented on DPRO. LADENBURG THALM/SH SH decreased their price objective on Draganfly from $12.75 to $11.50 and set a “buy” rating for the company in a report on Thursday, August 13th. Wall Street Zen cut Draganfly from a “sell” rating to a “strong sell” rating in a report on Saturday, August 15th. Zacks Research raised shares of Draganfly from a “strong sell” rating to a “hold” rating in a research report on Tuesday, November 3rd. Finally, Needham & Company LLC reissued a “buy” rating on shares of Draganfly in a research report on Tuesday, September 29th. One investment 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 MarketBeat, the stock has a consensus rating of “Buy” and an average 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.