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Draganfly (TSE:DPRO)
:DPRO
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Draganfly (DPRO) AI Stock Analysis

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TSE:DPRO

Draganfly

(NASDAQ:DPRO)

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Neutral 47 (OpenAI - 4o)
Rating:47Neutral
Price Target:
C$6.00
▼(-13.67% Downside)
Draganfly's overall stock score is primarily impacted by its poor financial performance, with significant losses and cash flow issues. While technical analysis and earnings call insights provide some positive aspects, the valuation remains unattractive due to negative earnings.
Positive Factors
Negative Factors

Draganfly (DPRO) vs. iShares MSCI Canada ETF (EWC)

Draganfly Business Overview & Revenue Model

Company DescriptionDraganfly Inc. (DPRO) is a leading innovator in the drone technology and unmanned aerial systems (UAS) industry. The company designs, manufactures, and sells commercial drone solutions, focusing on sectors such as public safety, agriculture, industrial inspections, and mapping and surveying. Draganfly is known for its advanced drone platforms, sensors, and software, which are utilized by various industries to enhance operational efficiency, data collection, and decision-making processes.
How the Company Makes MoneyDraganfly makes money primarily through the sale of its drone hardware and software solutions. The company's key revenue streams include direct sales of drones and related products, custom engineering services, and software licensing. Draganfly also generates revenue through service contracts and maintenance agreements, ensuring ongoing support and upgrades for its clients. Additionally, the company may engage in strategic partnerships and collaborations to expand its market reach and enhance its technological offerings, contributing further to its earnings. These partnerships often involve co-developing new products or integrating technologies to provide comprehensive solutions to customers across different sectors.

Draganfly Earnings Call Summary

Earnings Call Date:Aug 11, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
Draganfly demonstrated significant revenue growth and strategic advancements in the military and defense sectors. However, they reported a comprehensive loss and faced challenges with gross margin and regulatory classifications. The company's strong cash position and strategic partnerships are positive indicators, but financial losses and operational challenges present concerns.
Q2-2025 Updates
Positive Updates
Significant Revenue Growth
Draganfly reported a Q2 revenue of $2.155 million, marking a 37% quarter-over-quarter increase and a 22% year-over-year increase.
Successful U.S. Army SMEX25 Event
The Commander 3XL plus DROPS smart payload system achieved a 100% success rate, highlighting the product's reliability and robustness.
Strong Cash Position
Cash balance increased to approximately $68 million due to subsequent financing, significantly bolstering the balance sheet.
U.S. Southern Border Drone Pilot Program
Draganfly was selected for a drone pilot program with Cochise County Sheriff's Department, showcasing a drone with up to 7 hours of flight time.
Public Offering Success
Closed a $13.75 million public offering, further strengthening financial stability.
Strategic Military and Defense Partnerships
Established partnerships and delivered drones to major U.S. defense contractors and international defense summits.
Negative Updates
Comprehensive Loss
Reported a total comprehensive loss for the quarter of $4.7 million, compared to a $7.1 million loss in the same quarter last year.
Gross Margin Decline
Gross margin decreased from 34.4% year-over-year to 24% in the current quarter.
Blue List and Green List Delays
There have been delays and confusion regarding obtaining Blue List and Green List classifications, impacting some strategic opportunities.
Company Guidance
In Draganfly's 2025 Q2 earnings call, significant financial metrics were highlighted by CEO Cameron Chell and CFO Paul Sun. The company reported a Q2 revenue of $2.155 million, marking a 37% quarter-over-quarter increase and a 22% year-over-year rise. Product sales accounted for $1.9 million, while services contributed $213,000. The gross profit was $504,000, reflecting a 9.3% year-over-year increase, with a gross margin of about 24%. The cash balance surged from $22 million at the end of Q2 to approximately $68 million following a subsequent financing. Total comprehensive loss for the quarter was $4.7 million, down from $7.1 million in the previous year. The company also closed a $13.75 million public offering and a $25 million direct offering, bolstering its balance sheet. Draganfly's strategic initiatives included securing a U.S. Southern border drone pilot program and a multiyear landmine detection partnership with SafeLane in Ukraine.

Draganfly Financial Statement Overview

Summary
Draganfly faces significant financial challenges with negative profit margins and returns, despite moderate leverage. The negative return on equity and cash flow issues highlight the need for strategic improvements.
Income Statement
30
Negative
Draganfly's income statement reveals significant challenges. The company has a negative net profit margin of -227.73% and an EBIT margin of -235.15% in the TTM period, indicating substantial losses relative to revenue. Although there is a modest revenue growth rate of 5.64% TTM, the persistent negative margins highlight ongoing profitability issues.
Balance Sheet
40
Negative
The balance sheet shows a moderate debt-to-equity ratio of 0.26 TTM, suggesting manageable leverage. However, the return on equity is significantly negative at -787.95%, reflecting poor returns for shareholders. The equity ratio of 80.77% indicates a strong equity base relative to total assets, but the negative ROE is a major concern.
Cash Flow
35
Negative
Draganfly's cash flow statement highlights severe cash flow issues, with a negative operating cash flow and free cash flow. The operating cash flow to net income ratio is -2.58 TTM, indicating cash outflows exceed net losses. Despite a positive free cash flow growth rate of 11.80% TTM, the overall cash flow position remains weak.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue7.16M6.56M6.55M7.61M7.05M4.36M
Gross Profit1.33M1.40M2.06M790.67K2.64M1.76M
EBITDA-16.04M-13.30M-22.06M-26.88M-18.97M-7.87M
Net Income-13.11M-13.88M-23.61M-29.16M-13.16M-9.39M
Balance Sheet
Total Assets28.45M10.20M8.33M14.64M42.11M7.10M
Cash, Cash Equivalents and Short-Term Investments22.57M6.25M3.09M7.89M23.08M1.98M
Total Debt352.85K428.02K875.08K465.21K582.44K256.04K
Total Liabilities5.47M5.58M7.92M3.60M7.19M3.25M
Stockholders Equity22.99M4.62M407.72K11.04M34.93M3.85M
Cash Flow
Free Cash Flow-15.04M-12.00M-19.26M-16.43M-22.22M-5.16M
Operating Cash Flow-14.86M-11.83M-18.77M-16.35M-22.00M-5.14M
Investing Cash Flow-78.81K-23.31K-379.58K768.65K-3.31M516.42K
Financing Cash Flow32.23M15.03M14.45M-48.10K46.27M4.17M

Draganfly Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6.95
Price Trends
50DMA
6.62
Positive
100DMA
4.93
Positive
200DMA
4.74
Positive
Market Momentum
MACD
0.21
Negative
RSI
55.04
Neutral
STOCH
76.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DPRO, the sentiment is Positive. The current price of 6.95 is above the 20-day moving average (MA) of 6.49, above the 50-day MA of 6.62, and above the 200-day MA of 4.74, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 55.04 is Neutral, neither overbought nor oversold. The STOCH value of 76.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:DPRO.

Draganfly Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
303.97M21.2415.52%17.52%54.86%
68
Neutral
4.07B34.288.94%57.21%136.79%
64
Neutral
942.22M24.794.71%0.91%6.58%121.23%
47
Neutral
$39.01M-125.28%17.08%72.07%
39
Underperform
6.31M-0.07-543.58%166.43%75.12%
24
Underperform
6.81M-3.130.00%424.78%43.86%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:DPRO
Draganfly
6.95
3.87
125.65%
TSE:FTG
Firan Tech
12.05
6.34
111.03%
TSE:MAL
Magellan Aerospace
16.95
7.70
83.24%
TSE:SNA
Star Navigation Systems
0.01
0.00
0.00%
DFSC
DEFSEC Technologies
3.35
-27.46
-89.13%
TSE:MDA
MDA Space Ltd
32.30
15.81
95.88%

Draganfly Corporate Events

Shareholder MeetingsBusiness Operations and StrategyFinancial Disclosures
Draganfly to Host Shareholder Update Call on August 11, 2025
Neutral
Aug 8, 2025

Draganfly Inc. announced it will host a shareholder update call on August 11, 2025, led by CEO Cameron Chell and CFO Paul Sun, to discuss the company’s key milestones and strategic initiatives for the quarter, as well as highlights of its second-quarter performance. The call signifies Draganfly’s ongoing commitment to transparency and engagement with its stakeholders, potentially impacting its market positioning and investor relations.

Product-Related AnnouncementsBusiness Operations and Strategy
Draganfly Showcases Tactical Strike System at Pentagon Event
Positive
Aug 5, 2025

Draganfly Inc. recently showcased its integrated tactical strike system at an exclusive Pentagon event, demonstrating its UAV platforms with kinetic payload capabilities. This collaboration with MMS Products, Inc. highlights Draganfly’s technical leadership in secure autonomous flight systems and modular payload integration, signaling a growing demand for interoperable systems in defense. The event marks a significant step in advancing scalable, low-cost, and rapidly deployable technologies for modern conflict, positioning Draganfly as a key player in the evolving defense landscape.

Product-Related AnnouncementsBusiness Operations and Strategy
Draganfly Sells Heavy Lift Drones to Fortune 50 Company for Disaster Recovery
Positive
Jul 30, 2025

Draganfly Inc. has successfully sold multiple Heavy Lift Drone Systems to a Fortune 50 telecommunications company for use in emergency response and disaster recovery operations. These drones, equipped with advanced sensors and communication payloads, will aid in transporting essential supplies and restoring communications in areas affected by disasters, showcasing Draganfly’s innovative capabilities and strengthening its position in the UAV industry.

Product-Related AnnouncementsBusiness Operations and Strategy
Draganfly Expands Defense Sector Reach with Strategic UAV Sale
Positive
Jul 22, 2025

Draganfly Inc. has announced a significant sale of its Commander 3XL Unmanned Aerial Vehicle systems to a leading defense contractor specializing in persistent surveillance technologies. This strategic military order marks a milestone for Draganfly as it expands its presence in the defense sector, enhancing its capabilities in military and border surveillance systems. The integration of the Commander 3XL into advanced surveillance platforms underscores its versatility and ability to adapt to evolving threat landscapes, potentially increasing the company’s influence and market positioning in the defense industry.

Private Placements and FinancingBusiness Operations and Strategy
Draganfly Secures $25 Million in Direct Offering to Fuel Growth
Positive
Jul 21, 2025

Draganfly Inc. announced the closing of a US$25 million registered direct offering, involving the sale of 4,672,895 units at a price of US$5.35 per unit. The proceeds are intended for general corporate purposes, including funding new product demand, growth initiatives, and research and development. This financial move is expected to bolster Draganfly’s capabilities in meeting market demands and enhancing its industry positioning.

Product-Related AnnouncementsBusiness Operations and Strategy
Draganfly’s Commander3 XL UAV Chosen by U.S. Department of Defense
Positive
Jul 16, 2025

Draganfly Inc. announced that its Commander3 XL UAV platform has been selected by a major branch of the U.S. Department of Defense for advanced operation initiatives. This selection underscores the growing demand for adaptable UAV platforms in defense scenarios, enhancing Draganfly’s position in the defense industry by supporting intelligence, surveillance, and reconnaissance missions.

Product-Related AnnouncementsBusiness Operations and Strategy
Draganfly and TB2 Aerospace Achieve Milestone in Autonomous Drone Logistics
Positive
Jun 17, 2025

Draganfly Inc. and TB2 Aerospace have successfully demonstrated the integration of the Drone Recharging Operational Payload System (DROPS) with Draganfly’s Commander 3XL drone during the U.S. Army’s Sustainment Modernization Experiment 2025. This achievement highlights the potential of autonomous logistics solutions to revolutionize military tactical resupply, showcasing the system’s ability to autonomously handle payload operations and its versatility across various platforms.

Private Placements and FinancingBusiness Operations and Strategy
Draganfly Announces $13.75 Million Public Offering to Enhance Growth
Positive
Jun 11, 2025

Draganfly Inc. announced the pricing of its public offering of 5,500,000 units at US$2.50 each, aiming to raise approximately US$13.75 million. The proceeds will be used for general corporate purposes, including funding new product demand, growth initiatives, and working capital. The offering is expected to close on June 12, 2025, subject to customary closing conditions and regulatory approvals. This move is expected to bolster Draganfly’s operational capabilities and market positioning by supporting the development and marketing of its core products.

Product-Related AnnouncementsBusiness Operations and Strategy
Draganfly Partners with Cochise County for Drone Pilot Program
Positive
Jun 10, 2025

Draganfly Inc. has been selected by the Cochise County Sheriff’s Department to support a new drone pilot program aimed at enhancing border surveillance and operations along the southern border. This initiative aligns with President Trump’s executive order to strengthen America’s leadership in unmanned aerial systems for security and defense. The program will deploy Draganfly’s adaptable drones for extended surveillance and rapid response missions, reinforcing Cochise County’s reputation as a leader in technology-enabled border enforcement.

Private Placements and FinancingBusiness Operations and Strategy
Draganfly Expands Capital Through Over-Allotment Option Exercise
Positive
Jun 6, 2025

Draganfly Inc. announced the partial exercise of an over-allotment option by Maxim Group LLC, resulting in the purchase of an additional 100,000 common shares, generating gross proceeds of $209,000. The company plans to use the proceeds for general corporate purposes, including funding new product demand, growth initiatives, and research and development, which may enhance its market positioning and operational capabilities.

Product-Related AnnouncementsBusiness Operations and Strategy
Draganfly Delivers Flex FPV Systems to U.S. Defense Contractor
Positive
Jun 3, 2025

Draganfly Inc. has announced the delivery of its Flex FPV systems to a major U.S. military prime contractor, marking a significant milestone for the company. The Flex FPV system, known for its modular core architecture and adaptability, supports various mission profiles including reconnaissance and tactical payload delivery. This development highlights Draganfly’s growing demand in the defense and public safety sectors, as organizations seek versatile and reliable North American-developed UAS platforms.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 20, 2025