Draganfly (DPRO) AI Stock Analysis

• Market Cap: $231.91M
• Dividend Yield: N/A
• Average Volume (3M): 77.15K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.85
• 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: 94,965
• 30 Day Avg. Volume: 77,147
• 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: -0.08
• Enterprise Value/Revenue: -2.35
• Enterprise Value/Gross Profit: -12.02
• Enterprise Value/Ebitda: 1.01
• 1Y Price Target: $22.95
• Price Target Upside: 114.49% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: C$13.00 ▲(21.50% 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

Large cash balance provides runway

A nearly $70M cash balance materially extends runway and reduces short-term financing risk. This allows the company to fund manufacturing expansion, R&D and defense contract fulfillment while absorbing operating losses, supporting strategic investments over the next several months.

Defense partnerships and orders

Confirmed military partnerships and a U.S. Army order create durable commercial validation and a pathway to higher-margin, repeatable contracts. Defense relationships can produce multi-year procurement cycles, elevate credibility with other government buyers, and raise barriers to competition.

Planned U.S. manufacturing scale-up

Quadrupling U.S. production capacity should improve unit economics, shorten delivery lead times and better support large government and enterprise contracts. Greater scale and localized production strengthen supply resilience and position the company for sustained order growth.

Negative Factors

Consistent operating losses

Persistently deep operating losses erode shareholder equity and constrain strategic flexibility. Without a clear path to sustained positive margins, the company risks continued capital consumption and weakened returns on incremental revenue, challenging long-term viability.

Negative operating cash flow

Inability to convert sales into operating cash creates reliance on cash reserves or external financing to fund operations. This reduces capacity to invest in growth initiatives and heightens execution risk if cash is drawn down to cover recurring operational shortfalls.

Material gross margin deterioration

A sharp drop in gross margin undermines the benefits of revenue growth and makes profitability harder to achieve even as scale increases. Margin compression may reflect cost inflation, pricing pressures, or mix shifts and threatens sustainable operating leverage from new capacity.

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's inability to generate positive returns and cash flow raises concerns about its financial sustainability. Modest revenue growth offers some hope, but substantial improvements in profitability and cash management are necessary for long-term viability.

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: Negative
• Last Price: 10.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 10.7 is below the 20-day moving average (MA) of 12.32, below the 50-day MA of 10.96, and above the 200-day MA of 7.98, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 44.39 is Neutral, neither overbought nor oversold. The STOCH value of 11.36 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTG	78 Outperform	C$367.28M	27.58	17.40%	―	15.09%	31.55%
MAL	72 Outperform	C$1.19B	26.58	5.64%	0.93%	8.84%	131.58%
MDA	70 Outperform	C$4.85B	42.76	8.88%	―	57.77%	57.55%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DPRO	52 Neutral	$231.91M	-4.12	-48.13%	―	26.74%	53.14%
DFSC	45 Neutral	C$5.18M	-0.07	-208.62%	―	166.43%	75.12%
SNA	42 Neutral	C$14.88M	-3.23	―	―	-45.86%	36.73%

Draganfly Corporate Events

Draganfly CEO Cameron Chell Named Executive Chairman of the Board

Draganfly Inc. has appointed its Chief Executive Officer, Cameron Chell, as Executive Chairman of the board, succeeding Scott Larson, who will remain a board member. The leadership change consolidates executive and board roles under Chell, potentially strengthening strategic alignment as the company continues to expand its presence in key commercial and public-sector drone markets.

The most recent analyst rating on (TSE:DPRO) stock is a Hold with a C$13.50 price target. To see the full list of analyst forecasts on Draganfly stock, see the TSE:DPRO Stock Forecast page.

Draganfly Drones Integrated with Smith Myers Tech Deployed by Search and Rescue Sweden

Draganfly has deployed its APEX and Commander 3XL drones integrated with Smith Myers’ ARTEMIS mobile phone detection and location systems for Search and Rescue Sweden, providing a fully compliant, high-performance UAV solution for national missing-person and wilderness rescue missions. Joint testing in harsh conditions validated the mechanical and software integration, flight stability, and end-to-end mission workflows, demonstrating that the combined system meets or exceeds demanding SAR requirements while offering faster deployment, broader coverage, improved detection accuracy, and significantly lower costs versus helicopter-based operations; the integration will also be made available across Draganfly’s full UAV lineup, positioning the company to expand its footprint with police, military, fire, and emergency-response agencies in Europe and beyond.

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 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.