Draganfly (DPRO) AI Stock Analysis

• Market Cap: C$299.60M
• Dividend Yield: N/A
• Average Volume (3M): 46.38K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.65
• Revenue Growth: 26.74%
• EPS Growth: 53.14%
• Country: CA
• Employees: 51
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): -0.25
• Shares Outstanding: 23,261,011
• 10 Day Avg. Volume: 54,702
• 30 Day Avg. Volume: 46,379
• PEG Ratio: 0.02
• Price to Book (P/B): 4.00
• Price to Sales (P/S): 2.82
• P/FCF Ratio: -1.54
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$20.37
• Price Target Upside: 58.19% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): -0.57
• Revenue Forecast (FY): C$21.42M

• Rating: 52 Neutral
• Price Target: C$12.00 ▼(-6.83% Downside)

Draganfly's overall stock score reflects a challenging financial situation with persistent losses and cash flow issues. However, strategic partnerships and recent corporate events in the defense sector provide a positive outlook. The technical analysis and valuation suggest caution, but the company's strong cash position and growth initiatives offer potential for future improvement.

Positive Factors

Military Partnerships & U.S. Army Order

Securing a U.S. Army order and partnerships with defense-focused vendors creates durable revenue channels and institutional validation. Defense contracts typically have multi-year procurement cycles and higher barriers to entry, supporting more predictable backlog, specialized R&D funding, and deeper integration into defense supply chains.

Large Cash Balance

A near-$70M cash reserve provides meaningful runway to fund expansion, R&D, and defense program execution without immediate capital raises. This liquidity reduces short-term solvency risk, enables production scaling for awarded contracts, and supports strategic investments that can drive long-term competitiveness.

Manufacturing Expansion & Strategic Partnerships

Quadrupling U.S. manufacturing capacity plus distribution and industry partnerships materially improves scale, shortened lead times, and domestic supply compliance for defense work. Greater production scale and partner channels can lower unit costs, support larger contracts, and strengthen long-term market position.

Negative Factors

Persistent Losses and Weak Profitability

Sustained operating losses and a severely negative net margin indicate structural profitability challenges. Without durable margin recovery, the company may struggle to self-fund growth, attract stable commercial customers, and sustain long-term competitiveness in capital-intensive aerospace and defense markets.

Operating Cash Flow Weakness

Negative operating cash conversion shows revenues are not reliably generating cash, creating reliance on financing or liquidity reserves. Even with FCF growth, weak operating cash flow signals working capital or collection issues that threaten sustainable funding of production and long-term contracts without improved cash conversion.

Inefficient Use of Equity Despite Low Leverage

Very low financial leverage reduces solvency risk but coupled with a deeply negative ROE indicates the company is failing to convert shareholder capital into positive returns. This inefficiency can erode equity value over time and may necessitate dilution or structural changes if profitability is not restored.

Draganfly Business Overview & Revenue Model

Company Description

Draganfly 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 Money

Draganfly generates revenue through multiple streams, including the sale of UAVs and related accessories, software licensing, and service contracts. The company earns income from direct sales of its drone systems to various industries, including agriculture for crop monitoring, public safety for surveillance and search-and-rescue operations, and infrastructure for inspections and monitoring. Additionally, Draganfly offers subscription-based software solutions that provide access to advanced data analytics and imaging capabilities. Key partnerships with organizations in critical sectors also contribute to its revenue, enabling joint ventures and collaborative projects that enhance product offerings and expand market reach.

Draganfly Financial Statement Overview

Summary

Draganfly faces significant financial challenges with persistent losses and cash flow issues. Despite a low debt level, the company struggles with profitability and cash management, raising concerns about financial sustainability.

Income Statement

Draganfly's income statement reveals a challenging financial position with consistent negative net income and EBIT margins, indicating ongoing operational losses. Despite a modest revenue growth rate of 3.78% in the TTM, the company struggles with profitability, as evidenced by a negative net profit margin of -183.05% and a declining gross profit margin. The aerospace and defense industry typically requires significant capital, which may be contributing to these financial pressures.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio of 0.015, suggesting conservative leverage. However, the return on equity is significantly negative at -156.78%, reflecting substantial losses relative to shareholder equity. The equity ratio is stable, indicating a solid asset base, but the negative ROE highlights the company's inability to generate returns for shareholders.

Cash Flow

Draganfly's cash flow statement indicates a challenging cash position, with negative operating cash flow and free cash flow. The free cash flow to net income ratio is slightly above 1, suggesting that cash flow is somewhat aligned with reported losses. However, the operating cash flow to net income ratio is negative, highlighting inefficiencies in converting sales into cash. Despite a 12.31% growth in free cash flow, the overall cash flow situation remains strained.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.43M	6.56M	6.55M	7.61M	7.05M	4.36M
Gross Profit	1.45M	1.40M	2.06M	790.67K	2.64M	1.76M
EBITDA	-17.33M	-13.30M	-22.06M	-26.88M	-18.97M	-7.87M
Net Income	-18.08M	-13.88M	-23.61M	-29.16M	-13.16M	-9.39M
Balance Sheet
Total Assets	77.08M	10.20M	8.33M	14.64M	42.11M	7.10M
Cash, Cash Equivalents and Short-Term Investments	69.88M	6.25M	3.09M	7.89M	23.08M	1.98M
Total Debt	313.85K	428.02K	875.08K	465.21K	582.44K	256.04K
Total Liabilities	6.65M	5.58M	7.92M	3.60M	7.19M	3.25M
Stockholders Equity	70.43M	4.62M	407.72K	11.04M	34.93M	3.85M
Cash Flow
Free Cash Flow	-16.89M	-12.00M	-19.26M	-16.43M	-22.22M	-5.16M
Operating Cash Flow	-16.37M	-11.83M	-18.77M	-16.35M	-22.00M	-5.14M
Investing Cash Flow	-429.76K	-23.31K	-379.58K	768.65K	-3.31M	516.42K
Financing Cash Flow	81.65M	15.03M	14.45M	-48.10K	46.27M	4.17M

Draganfly Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 12.88 is above the 20-day moving average (MA) of 10.19, above the 50-day MA of 10.68, and above the 200-day MA of 7.24, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 62.81 is Neutral, neither overbought nor oversold. The STOCH value of 83.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:DPRO.

Draganfly Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTG	78 Outperform	C$305.60M	21.62	17.40%	―	15.09%	31.55%
MAL	72 Outperform	C$1.11B	25.94	5.64%	0.93%	8.84%	131.58%
MDA	70 Outperform	C$3.65B	32.45	8.88%	―	57.77%	57.55%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DPRO	52 Neutral	C$299.60M	-4.96	-48.13%	―	26.74%	53.14%
DFSC	45 Neutral	C$6.58M	-0.09	-208.64%	―	166.43%	75.12%
SNA	42 Neutral	C$7.44M	-3.23	―	―	-45.86%	36.73%

Draganfly Corporate Events

Draganfly Partners with Babcock and CiTech for Asia-Pacific Defense Expansion

Draganfly Inc. has entered into a collaborative framework with Babcock International Group and Critical Infrastructure Technologies to enhance defense and security capabilities in the Asia-Pacific region. This partnership leverages the strengths of each company, aiming to address regional priorities such as defense modernization and security resilience, positioning Draganfly to expand its influence in the growing Asia-Pacific defense market.

The most recent analyst rating on (TSE:DPRO) stock is a Hold with a C$10.50 price target. To see the full list of analyst forecasts on Draganfly stock, see the TSE:DPRO Stock Forecast page.

Draganfly Secures Key Military Order for Commander 3XL Drones

Draganfly Inc. has secured a significant international military order for its Commander 3XL drone systems, marking a milestone in its global defense operations. This order, placed through a defense contractor, highlights the growing demand for secure, adaptable unmanned systems and positions Draganfly as a key player in the military drone market, potentially leading to further deployments and expansion in the Asia Pacific region.

The most recent analyst rating on (TSE:DPRO) stock is a Hold with a C$9.00 price target. To see the full list of analyst forecasts on Draganfly stock, see the TSE:DPRO Stock Forecast page.

Draganfly’s Outrider™ Drone Demonstrates Success at Border Security Summit

Draganfly Inc. successfully demonstrated its Outrider™ Border Drone in live missions at the Cochise County Drone Summit, showcasing its capabilities in surveillance and border security operations. The event attracted significant interest from multiple agencies, reinforcing Draganfly’s position as a leading domestic supplier of UAS technology and highlighting its strategic advantage in the growing U.S. homeland-security drone market.

The most recent analyst rating on (TSE:DPRO) stock is a Hold with a C$9.00 price target. To see the full list of analyst forecasts on Draganfly stock, see the TSE:DPRO Stock Forecast page.

Draganfly to Host Shareholder Update Call on November 12, 2025

Draganfly Inc. announced it will host a shareholder update call on November 12, 2025, led by CEO Cameron Chell and CFO Paul Sun, to discuss the company’s key milestones, strategic initiatives, and third-quarter financial performance. The call aims to engage shareholders and provide insights into Draganfly’s operations and future direction, with the formal release of Q3 2025 financial results scheduled for the same day.

The most recent analyst rating on (TSE:DPRO) stock is a Buy with a C$19.00 price target. To see the full list of analyst forecasts on Draganfly stock, see the TSE:DPRO Stock Forecast page.

Draganfly to Debut Outrider Drone at Exclusive Border Security Summit

Draganfly Inc. is set to unveil its new Outrider Drone at the Cochise County Border Drone Summit, an exclusive event aimed at demonstrating the drone’s capabilities in real-world conditions. The Outrider Drone is designed for long-endurance surveillance and logistics missions, integrating advanced imaging and secure communications to enhance border security, emergency response, and defense operations. This unveiling marks a significant step in Draganfly’s efforts to position itself as a leader in drone-enabled security solutions.

The most recent analyst rating on (TSE:DPRO) stock is a Hold with a C$11.50 price target. To see the full list of analyst forecasts on Draganfly stock, see the TSE:DPRO Stock Forecast page.

Draganfly Enhances Defense Strategy with Key Appointments

Draganfly Inc. has strengthened its military and defense capabilities by appointing veterans Victor Meyer and Keith Kimmel to its Military Board of Advisors. This strategic move aims to enhance the company’s defense strategy, ensuring its technologies continue to deliver innovation and reliability in defense and government applications. The new advisors bring extensive military and corporate experience, which will be crucial in expanding Draganfly’s defense capabilities and ensuring its solutions meet the needs of defense and security organizations worldwide.

The most recent analyst rating on (TSE:DPRO) stock is a Buy with a C$14.00 price target. To see the full list of analyst forecasts on Draganfly stock, see the TSE:DPRO Stock Forecast page.

Draganfly and Palladyne AI Collaborate to Enhance UAV Autonomy

Draganfly Inc. and Palladyne AI Corp. have announced a collaboration to integrate Palladyne’s advanced AI software into Draganfly’s UAV platforms. This partnership aims to enhance the autonomous capabilities of Draganfly’s drones, enabling advanced swarm operations and improving efficiency for government, defense, and commercial users. By incorporating Palladyne’s AI, Draganfly’s systems will gain expanded mission capabilities, reducing operator workload and extending the effectiveness of their drone solutions in complex scenarios.

The most recent analyst rating on (TSE:DPRO) stock is a Buy with a C$14.00 price target. To see the full list of analyst forecasts on Draganfly stock, see the TSE:DPRO Stock Forecast page.

Draganfly Partners with Drone Nerds to Expand NDAA-Compliant Drone Reach

Draganfly Inc. has appointed Drone Nerds as an official value-added reseller for its NDAA-compliant drone systems, enhancing its market reach in the U.S. and allied markets. This partnership, showcased at the ElevateUAV 2025 conference, is expected to bolster Draganfly’s presence in public safety and enterprise sectors, leveraging Drone Nerds’ extensive distribution and support infrastructure to meet the evolving needs of advanced drone users.

The most recent analyst rating on (TSE:DPRO) stock is a Buy with a C$14.00 price target. To see the full list of analyst forecasts on Draganfly stock, see the TSE:DPRO Stock Forecast page.