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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)

Rating:58Neutral
Price Target:
C$6.50
▼(-9.72%Downside)
Draganfly's overall score reflects significant financial challenges and valuation concerns, despite positive technical indicators and promising corporate events. The company's strategic initiatives and partnerships offer potential growth, but ongoing financial difficulties and reliance on external financing pose risks.
Positive Factors
Defense Contracts
Draganfly, Inc.'s Commander3 XL UAV has been selected by a major branch of the U.S. Department of Defense for advanced operation initiatives.
Manufacturing Capabilities
The company has existing manufacturing facilities in place to meet the demands of any material product order, a differentiator from many peers in the UAV space.
Market Positioning
The company has improved its positioning to become a long-term winner in the drone space, driven primarily by military and border control functions.
Negative Factors
Financial Results
DPRO reported 1Q25 results with revenue of C$1.5M, up 16.4% y/y, but below estimate and consensus.
Revenue Growth Challenges
Revenue growth has been somewhat slower to materialize in recent quarters, posing a challenge to immediate profitability.
Revenue Performance
Investors have been frustrated in recent quarters at the lack of material revenue growth, with 2025 revenue currently tracking below 2024 levels.

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

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 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:May 08, 2025
(Q1-2025)
|
% Change Since: 176.92%|
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 Financial Statement Overview

Summary
Draganfly faces significant financial challenges, with consistent net losses and negative cash flows. Operational inefficiencies, high costs, and a reliance on external financing are evident. Despite some revenue growth, the overall financial health is weak with high liabilities and negative equity trends.
Income Statement
45
Neutral
The income statement shows declining profitability with a consistent pattern of net losses. Gross Profit Margin is low, indicating high cost relative to revenue, and Net Profit Margin is negative, reflecting ongoing unprofitability. Revenue growth is inconsistent, with a slight increase in the TTM period, but the overall trend over the past few years shows stagnation. There is also a negative EBIT and EBITDA margin, highlighting operational inefficiencies.
Balance Sheet
50
Neutral
The balance sheet shows a weak financial position with low stockholders' equity and high liabilities. The Debt-to-Equity Ratio is concerning, although not excessively high, and the Equity Ratio is low, indicating a heavy reliance on liabilities to finance assets. The Return on Equity is negative due to persistent losses, which is a significant risk factor. Cash reserves have decreased significantly over recent periods, reducing financial flexibility.
Cash Flow
40
Negative
Cash flow analysis reveals significant negative operating cash flows, indicating cash is being consumed in operations. Free Cash Flow is also negative, reflecting challenges in generating cash from the core business after capital expenditures. The company relies heavily on financing activities to fund operations, which may not be sustainable in the long term. The Free Cash Flow to Net Income ratio is negative, further emphasizing cash flow issues.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.56M6.55M7.61M7.05M4.36M
Gross Profit1.40M2.06M790.67K2.64M1.76M
EBITDA-13.30M-22.06M-26.88M-18.97M-7.87M
Net Income-13.88M-23.61M-29.16M-13.16M-9.39M
Balance Sheet
Total Assets10.20M8.33M14.64M42.11M7.10M
Cash, Cash Equivalents and Short-Term Investments6.25M3.09M7.89M23.08M1.98M
Total Debt428.02K875.08K465.21K582.44K256.04K
Total Liabilities5.58M7.92M3.60M7.19M3.25M
Stockholders Equity4.62M407.72K11.04M34.93M3.85M
Cash Flow
Free Cash Flow-12.00M-19.26M-16.43M-22.22M-5.16M
Operating Cash Flow-11.83M-18.77M-16.35M-22.00M-5.14M
Investing Cash Flow-23.31K-379.58K768.65K-3.31M516.42K
Financing Cash Flow15.03M14.45M-48.10K46.27M4.17M

Draganfly Technical Analysis

Technical Analysis Sentiment
Positive
Last Price7.20
Price Trends
50DMA
4.65
Positive
100DMA
4.03
Positive
200DMA
4.27
Positive
Market Momentum
MACD
0.83
Positive
RSI
56.36
Neutral
STOCH
16.75
Positive
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 7.2 is above the 20-day moving average (MA) of 6.59, above the 50-day MA of 4.65, and above the 200-day MA of 4.27, indicating a bullish trend. The MACD of 0.83 indicates Positive momentum. The RSI at 56.36 is Neutral, neither overbought nor oversold. The STOCH value of 16.75 is Positive, 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 (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
C$4.84B47.738.54%49.98%108.76%
77
Outperform
C$297.41M20.0418.05%17.52%54.86%
63
Neutral
C$975.93M24.405.12%0.74%8.59%242.80%
58
Neutral
$39.12M-978.94%7.90%57.35%
58
Neutral
HK$14.20B4.67-2.78%5.88%3.78%-54.63%
24
Underperform
C$6.81M174.16%130.45%6.25%
$5.42M-231.01%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:DPRO
Draganfly
7.20
6.97
2963.83%
TSE:FTG
Firan Tech
11.46
5.06
79.06%
TSE:MAL
Magellan Aerospace
17.08
7.88
85.65%
TSE:SNA
Star Navigation Systems
0.01
0.00
0.00%
DFSC
DEFSEC Technologies
4.12
-64.65
-94.01%
TSE:MDA
MDA Ltd
38.80
26.08
205.03%

Draganfly Corporate Events

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.

The most recent analyst rating on (TSE:DPRO) stock is a Buy with a C$7.00 price target. To see the full list of analyst forecasts on Draganfly stock, see the TSE:DPRO Stock Forecast page.

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.

The most recent analyst rating on (TSE:DPRO) stock is a Buy with a C$7.00 price target. To see the full list of analyst forecasts on Draganfly stock, see the TSE:DPRO Stock Forecast page.

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.

The most recent analyst rating on (TSE:DPRO) stock is a Buy with a C$7.00 price target. To see the full list of analyst forecasts on Draganfly stock, see the TSE:DPRO Stock Forecast page.

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.

The most recent analyst rating on (TSE:DPRO) stock is a Buy with a C$7.00 price target. To see the full list of analyst forecasts on Draganfly stock, see the TSE:DPRO Stock Forecast page.

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.

The most recent analyst rating on (TSE:DPRO) stock is a Buy with a C$7.00 price target. To see the full list of analyst forecasts on Draganfly stock, see the TSE:DPRO Stock Forecast page.

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.

The most recent analyst rating on (TSE:DPRO) stock is a Buy with a C$7.00 price target. To see the full list of analyst forecasts on Draganfly stock, see the TSE:DPRO Stock Forecast page.

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.

The most recent analyst rating on (TSE:DPRO) stock is a Buy with a C$7.00 price target. To see the full list of analyst forecasts on Draganfly stock, see the TSE:DPRO Stock Forecast page.

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.

The most recent analyst rating on (TSE:DPRO) stock is a Buy with a C$7.00 price target. To see the full list of analyst forecasts on Draganfly stock, see the TSE:DPRO Stock Forecast page.

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.

The most recent analyst rating on (TSE:DPRO) stock is a Buy with a C$7.00 price target. To see the full list of analyst forecasts on Draganfly stock, see the TSE:DPRO Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Draganfly Strengthens Public Safety Focus with New Advisory Board Appointment
Positive
May 14, 2025

Draganfly Inc. has appointed Peter Lambrinakos to its Public Safety Advisory Board, a move that underscores the company’s commitment to advancing its public safety mission. Lambrinakos, with over three decades of experience in public safety and national security, is expected to enhance Draganfly’s capabilities in developing secure and ethical drone technologies. His appointment comes at a time when there is increasing demand for domestically developed drone solutions that meet stringent security standards, positioning Draganfly as a key player in the North American public safety and defense sectors.

The most recent analyst rating on (TSE:DPRO) stock is a Buy with a C$7.00 price target. To see the full list of analyst forecasts on Draganfly stock, see the TSE:DPRO Stock Forecast page.

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.

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: Jul 31, 2025