Safe Pro Group (SPAI) investor relations material

Executive summary

• Revenue for the quarter ended September 30, 2025, was $101,422, down 69.3% year-over-year, with a net loss of $5,010,358, up 36% from the prior year period.

• For the nine months ended September 30, 2025, revenue was $378,977, down 70.4% year-over-year, and net loss was $10,889,934, up 80.2%.

• Declines in revenue were driven by lower product and service sales, especially in Airborne Response and Safe-Pro USA segments.

• Operating expenses increased significantly due to higher professional fees, stock-based compensation, and expanded R&D.

• The company completed significant equity financings, improving liquidity and working capital.

Financial highlights

• Gross profit margin for the quarter was 33.1%, compared to 40.7% in the prior year.

• Operating expenses for the quarter rose 15.4% to $4,241,229, and for the nine months rose 65.8% to $10,263,387.

• Cash balance at September 30, 2025, was $7,597,009, up from $1,970,719 at year-end 2024.

• Working capital increased to $7,313,982 from $1,856,203 at year-end 2024.

• Impairment charges of $684,867 for goodwill and $146,001 for intangibles were recognized in Q3 2025.

Outlook and guidance

• Management expects continued increases in operating expenses as the company expands operations and launches new AI-powered solutions.

• Revenue from Safe Pro AI is anticipated to grow as SaaS and subscription customers are onboarded, reducing volatility from one-time contracts.

• The company believes it has sufficient cash to meet obligations for at least twelve months following the report.