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Draganfly (TSE:DPRO)
:DPRO

Draganfly (DPRO) AI Stock Analysis

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Draganfly

(NASDAQ:DPRO)

Rating:53Neutral
Price Target:
C$3.50
▲(4.79%Upside)
Draganfly's financial performance is a significant concern, with persistent losses and declining margins weighing heavily on the stock score. While corporate events and earnings call insights suggest strategic growth opportunities, substantial financial challenges and unattractive valuation metrics maintain a cautious outlook.
Positive Factors
Market Opportunities
The U.S. government is considering the ban of drones from partially state-backed China-based company DJI, which could unlock considerable demand for qualified competitors like DPRO.
Production Capacity
The company has successfully increased production capacity, putting the business in a more favorable position to win larger production contracts in the future.
Valuation
DPRO trades at 0.4x 2025E revenue vs. a small/microcap peer average of 2.0x, indicating an attractive valuation.
Negative Factors
Financial Performance
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 Growth
Revenue growth has been somewhat slower to materialize in recent quarters, posing a challenge to immediate profitability.
Revenue Shortfall
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. iShares MSCI Canada ETF (EWC)

Draganfly Business Overview & Revenue Model

Company DescriptionDraganfly Inc. (DPRO) is a prominent developer and manufacturer of cutting-edge drone technology and solutions. The company operates within the aerospace and defense sectors, providing an array of drone products and services that include advanced unmanned aerial vehicles (UAVs), drone software, and artificial intelligence-driven data solutions. Draganfly's offerings are utilized across various industries, including public safety, agriculture, industrial inspections, and environmental monitoring, positioning it as a leader in drone innovation and application.
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 Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q1-2025)
|
% Change Since: 28.46%|
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 stagnant revenue, declining margins, and persistent losses. Despite a low leverage ratio, poor returns on equity and negative cash flows highlight ongoing operational inefficiencies and liquidity constraints.
Income Statement
45
Neutral
Draganfly has shown stagnant revenue growth with a slight increase of 0.09% from the previous year. The gross profit margin decreased to 21.3% in 2024 from 31.5% in 2023, indicating higher cost pressures. Significant losses continue with a net profit margin of -211.5%, reflecting ongoing profitability challenges. The EBIT margin is non-existent due to zero EBIT, and the EBITDA margin is highly negative at -215.9%, indicating operational inefficiencies.
Balance Sheet
55
Neutral
The company maintains a low debt-to-equity ratio of 0.09, suggesting limited use of leverage. However, the return on equity is deeply negative at -300.2%, indicating poor returns for shareholders. The equity ratio stands at 45.3%, showing moderate financial stability, but persistent net losses strain equity.
Cash Flow
40
Negative
Free cash flow remains negative, though it improved by 37.7% from the previous year. The operating cash flow to net income ratio is 0.85, indicating cash outflow challenges relative to net losses. The free cash flow to net income ratio of 0.87 further highlights cash constraints.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
6.56M6.55M7.61M7.05M4.36M
Gross Profit
1.40M2.06M790.67K2.64M1.76M
EBIT
-14.74M-22.39M-26.15M-22.30M-7.12M
EBITDA
-14.16M-22.06M-26.88M-18.97M-7.87M
Net Income Common Stockholders
-13.88M-23.61M-29.16M-13.16M-9.39M
Balance SheetCash, Cash Equivalents and Short-Term Investments
6.25M3.09M7.89M23.08M1.98M
Total Assets
10.20M8.33M14.64M42.11M7.10M
Total Debt
428.02K875.08K465.21K582.44K256.04K
Net Debt
-5.82M-2.22M-7.43M-22.49M-1.73M
Total Liabilities
5.58M7.92M3.60M7.19M3.25M
Stockholders Equity
4.62M407.72K11.04M34.93M3.85M
Cash FlowFree 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 Flow
15.03M14.45M-48.10K46.27M4.17M

Draganfly Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3.34
Price Trends
50DMA
3.11
Positive
100DMA
3.61
Negative
200DMA
3.87
Negative
Market Momentum
MACD
0.21
Negative
RSI
52.02
Neutral
STOCH
25.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DPRO, the sentiment is Neutral. The current price of 3.34 is above the 20-day moving average (MA) of 2.97, above the 50-day MA of 3.11, and below the 200-day MA of 3.87, indicating a neutral trend. The MACD of 0.21 indicates Negative momentum. The RSI at 52.02 is Neutral, neither overbought nor oversold. The STOCH value of 25.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:DPRO.

Draganfly Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSMDA
80
Outperform
C$3.64B36.368.54%49.98%108.76%
TSMAL
78
Outperform
C$1.03B25.695.12%0.56%8.59%242.80%
TSFTG
75
Outperform
C$276.91M20.5217.82%15.25%48.96%
66
Neutral
$4.47B12.215.40%3.65%4.14%-12.00%
53
Neutral
$18.15M-978.94%7.90%57.35%
TSKWE
49
Neutral
$6.28M-231.01%121.88%77.93%
TSSNA
24
Underperform
C$13.62M174.16%130.45%6.25%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:DPRO
Draganfly
3.34
3.04
1013.33%
TSE:SNA
Star Navigation Systems
0.01
0.00
0.00%
TSE:MAL
Magellan Aerospace
17.98
9.74
118.20%
TSE:FTG
Firan Tech
11.00
5.75
109.52%
TSE:KWE
KWESST Micro Systems
9.40
-133.40
-93.42%
TSE:MDA
MDA Ltd
29.56
17.76
150.51%

Draganfly Corporate Events

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.

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.

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.

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
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.