Draganfly (DPRO) AI Stock Analysis

• Market Cap: C$243.08M
• Dividend Yield: N/A
• Average Volume (3M): 44.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.35
• 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: 49,692
• 30 Day Avg. Volume: 44,396
• 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$19.99
• Price Target Upside: 91.28% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): -1.34
• Revenue Forecast (FY): C$8.64M

• Rating: 52 Neutral
• Price Target: C$10.50 ▲(0.48% Upside)

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

Strategic Military Partnerships

The strategic partnerships in the military sector, including a significant order from the U.S. Army, enhance Draganfly's market position and provide a durable revenue stream, potentially leading to long-term growth and stability in the defense industry.

Manufacturing Capacity Expansion

Expanding manufacturing capacity with seven new plants in the U.S. positions Draganfly to meet increasing demand, improve economies of scale, and enhance its competitive edge in the drone market.

Strong Cash Position

A strong cash position provides Draganfly with the financial flexibility to invest in growth opportunities, manage operational challenges, and sustain its business model over the long term.

Negative Factors

Decreased Gross Margin

A declining gross margin indicates increased cost pressures or pricing challenges, which could impact profitability and the ability to reinvest in business growth and innovation.

Comprehensive Loss

The significant increase in comprehensive loss highlights ongoing financial challenges, which may affect Draganfly's ability to achieve sustainable profitability and could strain future cash flows.

Negative Operating Cash Flow

Negative operating cash flow suggests inefficiencies in the core business operations, potentially limiting Draganfly's ability to fund growth initiatives and meet financial obligations without external financing.

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: 10.45
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 10.45 is above the 20-day moving average (MA) of 9.98, below the 50-day MA of 11.38, and above the 200-day MA of 6.85, indicating a neutral trend. The MACD of -0.47 indicates Positive momentum. The RSI at 52.00 is Neutral, neither overbought nor oversold. The STOCH value of 34.18 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTG	78 Outperform	C$291.76M	20.64	17.40%	―	15.09%	31.55%
MAL	72 Outperform	C$1.04B	23.35	5.64%	0.96%	8.84%	131.58%
MDA	70 Outperform	C$3.26B	28.98	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$243.08M	-4.02	-48.13%	―	26.74%	53.14%
DFSC	45 Neutral	C$3.80M	-0.04	-242.78%	―	166.43%	75.12%
SNA	24 Underperform	C$14.88M	-3.23	―	―	-45.86%	36.73%

Draganfly Corporate Events

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.

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.

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.

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.

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.

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.

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.

Draganfly to Showcase Drone Innovations at AUSA 2025

Draganfly Inc. announced its participation in the AUSA Annual Meeting & Exposition, a significant defense event in North America, where it will showcase its latest drone platforms and technologies. By partnering with Global Ordnance, Draganfly aims to demonstrate the integration of its unmanned systems into mission-critical operations, reinforcing its presence in defense and public safety markets and supporting its business development goals.

Draganfly Partners with Global Ordnance to Boost UAS Solutions for Defense

Draganfly Inc. has announced a strategic partnership with Global Ordnance, a U.S. Defense Logistics Agency prime contractor, to enhance the adoption of its unmanned aerial systems (UAS) in U.S. defense and allied markets. This collaboration aims to leverage Global Ordnance’s defense contracting expertise and Draganfly’s advanced drone technology to improve the availability and operational readiness of mission-critical UAS technologies, aligning with the growing demand for ISR capabilities and autonomous operations in the defense sector.

Draganfly and Autonome Labs to Showcase Advanced Demining Technology at Conference

Draganfly Inc. announced its participation in the Countering Explosives Conference alongside Autonome Labs, where they will showcase the M.A.G.I.C system integrated with Draganfly’s Heavy Lift UAV. This system aims to modernize mine and route clearance operations, offering enhanced safety, efficiency, and precision. The collaboration is expected to provide a cost-effective and mission-ready solution for demining, with pilot deployments planned for post-conflict regions later in the year.