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Draganfly (TSE:DPRO)
:DPRO

Draganfly (DPRO) AI Stock Analysis

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Draganfly

(NASDAQ:DPRO)

48Neutral
Draganfly's overall stock score reflects significant financial and technical challenges, including stagnant revenue and a bearish market trend. However, strategic partnerships and board appointments offer some optimism for future growth, though the company's valuation remains unattractive due to negative earnings.
Positive Factors
Production and Contracts
The company has successfully increased production capacity, putting the business in a more favorable position to win larger production contracts in the future.
Strategic Positioning
The company continues to take appropriate steps to best position itself to be a long-term winner in the UAV space.
Negative Factors
Financial Metrics
Lower than expected revenue and lower gross margin and higher operating expense all resulted in an adj. EBITDA loss of C$3.4M, below the C$2.9M loss estimate.
Revenue Performance
The company reported 1Q25 revenue of C$1.5M, below the C$1.8M estimate and down sequentially from C$1.6M in 4Q24.

Draganfly (DPRO) vs. S&P 500 (SPY)

Draganfly Business Overview & Revenue Model

Company DescriptionDraganfly Inc. manufactures and sells commercial unmanned aerial vehicles worldwide. Its products include quadcopters, fixed wing aircrafts, ground based robots, and handheld controllers, as well as software used for tracking, live streaming, flight training, and data collection. The company also offers custom engineering and training, simulation consulting, and flight training services, as well as wireless video systems. It serves public safety, agriculture, industrial inspections, security, and mapping and surveying markets. The company was founded in 1998 and is headquartered in Saskatoon, Canada.
How the Company Makes MoneyDraganfly makes money through the sale of its UAV products and the provision of related services. The company's key revenue streams include the direct sale of drones to commercial, governmental, and law enforcement clients, as well as the licensing of its proprietary drone software and AI technologies. Additionally, Draganfly generates income through service agreements, which involve the deployment of its drones for specific projects such as surveillance, mapping, and environmental assessments. Strategic partnerships with technology firms and government agencies also contribute to Draganfly's earnings by expanding its market reach and application scope.

Draganfly Financial Statement Overview

Summary
Draganfly's financial performance faces challenges with declining revenues and persistent losses. Despite a modest improvement in equity position, operational inefficiencies and cash flow deficits remain significant issues.
Income Statement
35
Negative
The income statement shows a declining revenue trend with a decrease from $6.55M in 2023 to $5.86M in TTM (Trailing-Twelve-Months). Gross profit margin also fell significantly, while the net profit margin remains negative, indicating persistent losses. The EBIT and EBITDA margins reflect operational inefficiencies, and the company has yet to achieve profitability.
Balance Sheet
45
Neutral
The balance sheet reveals moderate debt levels with a debt-to-equity ratio of 0.12 in TTM. However, the equity ratio has improved to 51.1%, suggesting a stronger equity base relative to assets compared to previous periods. Despite these improvements, the company’s low return on equity and declining asset base pose concerns.
Cash Flow
40
Negative
The cash flow statement indicates negative free cash flow, although there is a minor improvement from the previous year. Operating cash flow remains negative, highlighting ongoing cash burn in operations. The operating cash flow to net income ratio suggests cash flow challenges, with heavy reliance on financing activities for liquidity.
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
5.86M6.55M7.61M7.05M4.36M1.38M
Gross Profit
1.14M2.06M790.67K2.64M1.76M1.16M
EBIT
-13.80M-22.39M-26.15M-22.30M-7.12M-3.34M
EBITDA
-13.38M-21.85M-26.88M-18.97M-7.87M-3.29M
Net Income Common Stockholders
-13.34M-23.61M-29.16M-13.16M-9.39M-11.27M
Balance SheetCash, Cash Equivalents and Short-Term Investments
101.79K3.09M7.89M23.08M1.98M2.43M
Total Assets
504.82K8.33M14.64M42.11M7.10M3.22M
Total Debt
2.05M875.08K465.21K582.44K256.04K136.07K
Net Debt
1.95M-2.22M-7.43M-22.49M-1.73M-2.29M
Total Liabilities
4.64M7.92M3.60M7.19M3.25M1.03M
Stockholders Equity
-4.13M407.72K11.04M34.93M3.85M2.19M
Cash FlowFree Cash Flow
-9.41M-19.26M-16.43M-22.22M-5.16M-3.98M
Operating Cash Flow
-9.26M-18.77M-16.35M-22.00M-5.14M-3.89M
Investing Cash Flow
-30.68K-379.58K768.65K-3.31M516.42K-27.75K
Financing Cash Flow
10.83M14.45M-48.10K46.27M4.17M6.27M

Draganfly Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.53
Price Trends
50DMA
3.50
Negative
100DMA
4.28
Negative
200DMA
3.54
Negative
Market Momentum
MACD
-0.28
Positive
RSI
33.47
Neutral
STOCH
14.75
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DPRO, the sentiment is Negative. The current price of 2.53 is below the 20-day moving average (MA) of 3.35, below the 50-day MA of 3.50, and below the 200-day MA of 3.54, indicating a bearish trend. The MACD of -0.28 indicates Positive momentum. The RSI at 33.47 is Neutral, neither overbought nor oversold. The STOCH value of 14.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:DPRO.

Draganfly Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
$4.30B11.885.23%249.82%4.12%-10.27%
48
Neutral
$13.73M-978.94%7.90%57.35%
TSRPX
39
Underperform
C$39.46M-151.65%-56.27%
TSUAV
27
Underperform
C$1.29M
15.84%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:DPRO
Draganfly
2.53
2.18
622.86%
TSE:UAV
Global UAV Technologies Ltd
0.55
0.40
266.67%
TSE:PAT
Trench Solutions
0.42
-0.73
-63.48%
TSE:RPX
Red Pine Exploration
0.14
0.05
55.56%
TAKOF
Drone Delivery Canada
0.10
-0.04
-28.57%
CUBXF
CubicFarm Systems
0.14
0.00
0.00%

Draganfly Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q1-2025)
|
% Change Since: -2.69%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted several significant achievements, including new partnerships, facility expansions, and product launches, indicating strong strategic positioning and growth prospects. However, the company continues to face financial challenges, including a consistent comprehensive loss and concerns over stagnant revenues.
Q1-2025 Updates
Positive Updates
Revenue Growth
Draganfly reported revenue of $1.547 million, marking a 16% year-over-year increase.
Exclusive Agreement with SafeLane
Draganfly signed an exclusive agreement with SafeLane, the world's largest demining and unexploded ordnance removal company, to serve as their primary partner for aerial surveys.
Partnership with Autonomy Labs
Draganfly teamed with Autonomy Labs to use their heavy-lift drone for placing demining blankets, aiming to reduce costs and increase safety in demining operations.
New Public Safety Board of Advisors
Draganfly established a Public Safety Board of Advisors, chaired by Paul Goldenberg, to provide product expertise and access to top agencies globally.
New Facility in Tampa
Opened a new facility in Tampa, strategically located for military orders and public safety, including a full testing facility for drones.
Expansion in Drone Inspection Market
Expanded capabilities in the high-value geospatial area with partner Volatus, focusing on power utility customers and oil and gas exploration.
Apex Drone Launch
Unveiled the Apex drone, designed to meet military and public safety ISR needs with multi-unit payload capacity and AI capabilities.
Closed $3.6 Million Financing
Secured financing to support ongoing operations and growth initiatives.
Negative Updates
Comprehensive Loss
Reported a comprehensive loss of $3.4 million for the quarter, with an adjusted loss of $3.7 million, consistent with previous quarters.
Decrease in Cash and Assets
Total assets decreased from $10.2 million to $6.9 million, largely due to the decrease in cash as the company operates.
Revenue Stagnation Concerns
There are concerns over stagnant revenues since 2023 despite significant capital investment to expand operations.
Company Guidance
In the Draganfly 2025 Q1 earnings call, the company reported a revenue of $1.547 million, marking a 16% year-over-year increase. The gross profit for the quarter was $310,000, with cash holdings of just over $2 million. Despite a comprehensive loss of $3.4 million, the company emphasized a strategic focus on securing large contracts, with a sales funnel exceeding $100 million. Draganfly highlighted its partnerships, including an exclusive agreement with SafeLane and teaming up with Autonomy Labs for innovative demining solutions. A $3.6 million financing was closed to support ongoing operations, and a new facility in Tampa was established for strategic manufacturing and testing. The company aims for profitability by reaching $35-40 million in revenue, with expectations of substantial growth in the near future.

Draganfly Corporate Events

Shareholder MeetingsFinancial Disclosures
Draganfly to Host Shareholder Update Call on May 8, 2025
Neutral
May 6, 2025

Draganfly Inc. announced it will host a shareholder update call on May 8, 2025, led by CEO Cameron Chell, to discuss the company’s first-quarter milestones and financial results. This call represents an opportunity for stakeholders to gain insights into Draganfly’s operational progress and financial performance, potentially impacting investor confidence and market positioning.

Spark’s Take on TSE:DPRO Stock

According to Spark, TipRanks’ AI Analyst, TSE:DPRO is a Neutral.

Draganfly’s overall stock score reflects significant financial and technical challenges, including stagnant revenue and a bearish market trend. However, strategic partnerships and board appointments offer some optimism for future growth, though the company’s valuation remains unattractive due to negative earnings.

To see Spark’s full report on TSE:DPRO stock, click here.

Product-Related AnnouncementsBusiness Operations and Strategy
Draganfly Partners with SafeLane Global for Landmine Mapping Drones
Positive
Apr 10, 2025

Draganfly Inc. has entered into a multi-year agreement with SafeLane Global, becoming the preferred provider of landmine mapping drones and aerial survey services. This partnership, which includes the first Ukraine landmine aerial survey contract, aims to enhance the speed, accuracy, and safety of explosive threat detection and removal operations, positioning Draganfly as a significant player in the defense and humanitarian sectors.

Spark’s Take on TSE:DPRO Stock

According to Spark, TipRanks’ AI Analyst, TSE:DPRO is a Neutral.

Draganfly’s stock score is primarily weighed down by significant financial challenges, including stagnant revenue and persistent losses. Technical indicators suggest a bearish trend, and the company’s valuation remains unattractive due to negative earnings. However, strategic partnerships and board appointments offer some optimism for future growth.

To see Spark’s full report on TSE:DPRO stock, click here.

Product-Related AnnouncementsBusiness Operations and Strategy
Draganfly Partners with Balko Technologies for Advanced LiDAR Drone Solutions
Positive
Apr 9, 2025

Draganfly Inc. has entered into an agreement with Balko Technologies to integrate advanced modular LiDAR drone solutions, marking a significant expansion in their product offerings. This partnership positions Draganfly as the primary UAS provider for Balko, enhancing their reach across North America and providing customers with advanced aerial mapping and data collection tools. The collaboration is expected to expand access to cutting-edge drone technology for industrial, energy, and environmental monitoring applications, with multiple orders already placed for the Draganfly Commander 3XL paired with Balko’s Connectiv LiDAR sensor.

Spark’s Take on TSE:DPRO Stock

According to Spark, TipRanks’ AI Analyst, TSE:DPRO is a Neutral.

Draganfly’s overall score reflects significant financial challenges including stagnant revenue and persistent losses, which are the most pressing issues. Technical indicators suggest a bearish trend. While strategic partnerships and board appointments offer optimism, the company’s valuation remains unattractive due to negative earnings.

To see Spark’s full report on TSE:DPRO stock, click here.

Executive/Board ChangesPrivate Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Draganfly Reports Revenue Growth and Strategic Initiatives in 2024
Neutral
Mar 27, 2025

Draganfly Inc. reported a 76% year-over-year increase in fourth-quarter revenue, with total 2024 revenue showing a modest rise due to late-year demand fulfillment in the military and public safety sectors. Despite a decrease in gross profit and comprehensive losses, the company is advancing its strategic initiatives, including a $3.76 million direct offering to support growth and production scaling. Draganfly is also enhancing its industry positioning through successful proof-of-concept drone delivery projects, participation in UAV events, and leadership updates, including the appointment of Andy Card to its Advisory Board.

Shareholder MeetingsBusiness Operations and StrategyFinancial Disclosures
Draganfly Announces Shareholder Update Call for March 27, 2025
Neutral
Mar 26, 2025

Draganfly Inc. announced a shareholder update call scheduled for March 27, 2025, where CEO Cameron Chell will discuss the company’s 2024 milestones and 2025 outlook. CFO Paul Sun will present the Q4 2024 financial results and a full-year review, highlighting the company’s strategic initiatives and financial performance.

Executive/Board ChangesBusiness Operations and Strategy
Draganfly Appoints Former U.S. Secretary of Defense to Board
Positive
Mar 20, 2025

Draganfly Inc. has announced the appointment of Christopher C. Miller, former Acting U.S. Secretary of Defense, to its Board of Directors. Miller’s extensive experience in defense and intelligence is expected to guide Draganfly’s strategic initiatives in the government, defense, and aerospace sectors, strengthening its position as a leader in North American-made drone solutions for defense, law enforcement, and public safety.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.