Draganfly (DPRO) Q4 2025 earnings summary

Executive summary

• Achieved record annual revenue of $7.73 million in 2025, up 17.8% year-over-year, driven by a 28% increase in product sales despite a decline in services revenue.

• Q4 2025 revenue rose 18.5% year-over-year to $1.91 million, primarily from increased product sales.

• Comprehensive loss for 2025 widened to $22.98 million from $14.06 million in 2024, mainly due to higher operating, office, travel, and personnel expenses.

• Operational highlights include the launch of the Outrider drone for border security, strategic partnerships, and expansion into military and commercial markets.

• Secured a $50 million registered direct offering, strengthening the balance sheet and supporting ongoing scaling efforts.

Financial highlights

• 2025 revenue reached $7.73 million, with $6.87 million from product sales and $861,000 from drone services.

• Gross profit for 2025 was $1.32 million, with gross margin falling to 17.1% from 21.3% and adjusted gross margin (excluding inventory write-downs) at 20.4%.

• Q4 2025 gross profit was $85,700 (4.5% margin), or $329,700 (17.2% margin) adjusted for inventory write-downs.

• Total comprehensive loss for 2025 was $22.98 million, up from $14.06 million last year, driven by higher operating costs and non-cash items.

• Cash balance at year-end was $90.16 million; total assets were $101.39 million.

Outlook and guidance

• Positioned for a revenue ramp in 2026 and beyond, leveraging a strong cash position and expanded product lineup.

• Management highlighted ongoing expansion in defense and government sectors, with new partnerships and contracts supporting future growth.

• Anticipates continued growth in military, border security, and commercial drone applications globally.

• Exploring expansion into Asia-Pacific and strengthening defense sector presence.