Draganfly Inc ((TSE:DPRO)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Draganfly Inc’s recent earnings call painted a picture of optimism and strategic growth, despite facing some financial challenges. The call underscored significant revenue growth, strategic military partnerships, and a robust cash position, even as the company grappled with decreased gross margins and increased comprehensive losses. The development of new products and plans to expand manufacturing capacity signal promising future prospects for the company.
Revenue Growth
Draganfly reported a 14.4% year-over-year increase in revenue for Q3 2025, reaching $2.155 million. This growth is a testament to the company’s expanding market presence and successful product sales, which contributed $1.6 million, alongside $530,000 from services.
Strategic Developments in Military Segment
The company has made significant strides in enhancing its military capabilities. This includes new appointments and collaborations, such as a deal with Paladin AI and a substantial order from the U.S. Army. These developments underscore Draganfly’s strategic focus on strengthening its position in the defense sector.
New Drone Launch
Draganfly unveiled the Outrider Southern Border drone, a new addition to its product lineup. This drone is scheduled for live operation at Cochise County, marking a significant step in the company’s efforts to address border security needs.
Partnerships and Market Expansion
The company announced new partnerships with Drone Nerds, Global Ordinance, and a Fortune 50 telecom company. These alliances are expected to enhance Draganfly’s market presence and distribution capabilities, further solidifying its position in the industry.
Increased Manufacturing Capacity
Draganfly is planning to significantly boost its manufacturing capacity with the construction of seven new plants in the U.S. This expansion is expected to quadruple its current manufacturing capabilities, positioning the company for future growth.
Strong Cash Position
As of the end of September 2025, Draganfly’s cash balance stood at $69.9 million, a substantial increase from $6.3 million at the end of December 2024. This strong cash position provides a solid foundation for the company’s strategic initiatives.
Decreased Gross Margin
The company reported a gross margin of 19.5% for Q3 2025, down from 32.7% year-over-year. This decrease highlights the financial challenges Draganfly is facing, despite its revenue growth.
Comprehensive Loss
Draganfly’s total comprehensive loss for the quarter was $5.4 million, a significant increase from $364,000 in the same quarter last year. This loss reflects the financial hurdles the company is navigating as it invests in strategic growth initiatives.
Inventory Write-Down
A onetime noncash inventory write-down of $43,000 impacted the company’s gross profit, contributing to the financial challenges faced during the quarter.
Forward-Looking Guidance
Looking ahead, Draganfly is focused on enhancing its military and defense capabilities, as evidenced by its collaborations and significant orders in the sector. The unveiling of the Outrider Southern Border drone and plans to expand manufacturing capacity with seven new plants in the U.S. are critical components of its strategic growth plan. These initiatives are expected to drive future revenue and market expansion.
In summary, Draganfly Inc’s earnings call highlighted a blend of optimism and challenges. While the company faces decreased gross margins and increased losses, its strategic partnerships, product launches, and manufacturing expansion plans paint a promising picture for future growth. The strong cash position further supports its ambitious initiatives, making Draganfly a company to watch in the coming quarters.