Draganfly’s loss more than doubles but cash climbs to C$128.6 million (NASDAQ: DPRO)

What happened

Draganfly Inc. (NASDAQ: DPRO) reported a nine-month net loss of C$30.49 million, more than double the C$13.36 million a year earlier.

The commercial UAV company still ended the period with more cash. It held C$128.61 million at Sept. 30, up from C$90.16 million at Dec. 31, 2025. It sold shares during the year and bought Skip Dynamix. The results are unaudited and the board approved them on Nov. 10.

The third quarter was worse. Net loss was C$12.83 million against C$5.17 million a year earlier, up 148.2%. Revenue fell 5.0% to C$2.05 million from C$2.16 million.

Key numbers

Metric	Latest	Change	Source
Net loss, nine months to Sept. 30	C$30.49 million	from C$13.36 million, +128.3%	SEC 6-K, Exhibit 99.1
Net loss, third quarter	C$12.83 million	from C$5.17 million, +148.2%	SEC 6-K, Exhibit 99.1
Revenue, nine months to Sept. 30	C$7.03 million	from C$5.82 million, +20.7%	SEC 6-K, Exhibit 99.1
Cash used in operating activities, nine months	C$37.26 million	from C$14.14 million, +163.6%	SEC 6-K, Exhibit 99.1
Cash and cash equivalents (vs. Dec. 31, 2025)	C$128.61 million	from C$90.16 million, +42.6%	SEC 6-K, Exhibit 99.1

Read more: Draganfly (DPRO) company research

Where the widening loss comes from

Spending, not sales, drove the gap. Operating expenses were C$37.66 million for the nine months against C$14.23 million a year earlier. Revenue rose 20.7% to C$7.03 million, but gross profit fell to C$1.01 million from C$1.24 million.

Three lines stand out. Share-based payments were C$6.82 million, up from C$1.14 million. Employee and management expenses were C$13.20 million, up from C$6.87 million. Office and miscellaneous costs were C$8.36 million, up from C$3.21 million.

Gross profit less operating expenses leaves an operating loss of C$36.65 million. Other income of C$6.16 million, against a C$0.36 million expense a year earlier, narrowed it to the reported net loss. That income included a C$4.66 million foreign exchange gain, a C$2.86 million finance and other gain and a C$0.98 million gain on a derivative liability, partly offset by C$2.34 million of other expense. None of it is operating improvement.

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Cash, shares and the Skip Dynamix purchase

Operating activities used C$37.26 million of cash, up from C$14.14 million in the first nine months of 2025. Inventory took C$9.31 million of that. Inventory on the balance sheet reached C$12.40 million, up from C$3.90 million at year-end.

Share sales paid for it. Proceeds from share issuance were C$82.46 million, less C$6.41 million of issue costs. The filing also describes units sold at US$5.35 each for gross proceeds of US$10 million, or C$14.19 million.

Shares outstanding rose 33.4% to 39,142,756 from 29,344,775 at year-end. The larger count softened the nine-month per-share loss, which improved to C$0.86 from C$1.17 as weighted average shares rose to 35.32 million from 11.38 million. In the third quarter the per-share loss widened to C$0.35 from C$0.25.

The cash portion of the Skip Dynamix purchase price, tied to the deal that closed June 9, was US$2.52 million, or C$3.52 million. The balance sheet separately carries C$3.01 million of goodwill.

Why it matters

OptimistFi has framed Draganfly as a survival-and-scale option. Value depends on turning demand into funded orders before cash burn forces punitive dilution. This report supports the survival half, since share sales built the cash pile. It strains the scale half.

Sales growth has not yet turned into profit. Gross margin was 14.4% for the nine months against 21.2% a year earlier, and 6.3% in the third quarter against 19.5%. Customer deposits fell to C$174,611 from C$417,641 at year-end.

Liquidity is the counterweight. By OptimistFi's calculation, cash is about 16 times total liabilities of C$8.04 million, so the larger loss does not by itself show a solvency problem. The price of that cushion is the 33.4% rise in the share count.

What's next

The next quarterly report is the next test. A narrower operating loss, a gross margin back above the year-earlier level and lower operating cash use would strengthen the case.

Another widening loss funded by more share sales would weaken it. The report will also show whether Skip Dynamix adds revenue.

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