Draganfly (NASDAQ:DPRO) Posts Earnings Results, Misses Estimates By $0.07 EPS

Draganfly (NASDAQ:DPRO) announced its quarterly earnings data on Tuesday. The company reported ($0.20) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.13) by ($0.07), Zacks reports. The company had revenue of $1.37 million for the quarter, compared to the consensus estimate of $2.78 million. Draganfly had a negative net margin of 243.20% and a negative return on equity of 71.81%.

Here are the key takeaways from Draganfly’s conference call:

• Company reported a record 2025 revenue of $7.7M (up 17.8%), ended the year with ~CAD 90.1M cash and subsequently closed a US$50M registered direct offering, providing a strong balance sheet for 2026–27 growth.
• Total comprehensive loss widened to $22.9M (2025 vs $14.06M prior year), with adjusted gross margin down to 20.4% (from 30.9%) and higher office/wage costs as the company scales, partly driven by inventory write-downs.
• Product momentum centered on the new Outrider — a 7‑hour, 100‑lb payload multi‑mission drone — successfully deployed with Cochise County for Southern Border operations and positioned as a repeatable border‑management solution internationally.
• Strategic defense traction through an U.S. Army FPV order, a partnership with DLA prime Global Ordnance, integrations with Palladyne AI (swarming) and Autonome (landmine clearance), plus hires of senior military advisors, all of which expand the company’s addressable military and public‑safety markets.

Draganfly Stock Performance

Shares of DPRO traded down $0.99 during mid-day trading on Wednesday, hitting $5.34. 1,213,423 shares of the stock were exchanged, compared to its average volume of 2,165,376. The company has a market cap of $183.50 million, a PE ratio of -2.91 and a beta of 2.66. Draganfly has a 52-week low of $1.63 and a 52-week high of $14.40. The firm has a 50-day moving average of $7.49 and a two-hundred day moving average of $7.79.

Analyst Ratings Changes

Several analysts have recently commented on DPRO shares. Wall Street Zen downgraded shares of Draganfly from a “hold” rating to a “sell” rating in a research report on Saturday, December 6th. LADENBURG THALM/SH SH upgraded Draganfly to a “strong-buy” rating in a research note on Thursday, December 18th. Northland Securities set a $20.00 price objective on shares of Draganfly in a research report on Thursday, January 15th. Finally, Needham & Company LLC dropped their target price on shares of Draganfly from $14.00 to $12.00 and set a “buy” rating for the company in a research report on Wednesday. Two analysts have rated the stock with a Strong Buy rating and two have assigned a Buy rating to the stock. Based on data from MarketBeat, Draganfly presently has a consensus rating of “Strong Buy” and an average price target of $16.25.

Key Draganfly News

Here are the key news stories impacting Draganfly this week:

• Positive Sentiment: Q4 and FY2025 revenue growth and multiple defense/commercial wins: Draganfly reported Q4 revenue up 18.5% and FY revenue up 17.8%, and disclosed new defense partnerships, repeat Fortune‑50 telecom orders and international military orders — items that support future revenue visibility. Quiver/GlobeNewswire Release
• Positive Sentiment: Strong cash position: the company reported over $90M in cash at year‑end, which reduces near‑term dilution/financing risk and may support continued R&D and contract execution. GlobeNewswire
• Positive Sentiment: Technology & defense traction: milestone on swarm autonomy with Palladyne AI, membership in Canadian Army UAS working group and a new U.S. Air Force Special Operations contract strengthen defense credibility and address higher‑margin markets. TipRanks
• Neutral Sentiment: Analyst stance: Needham lowered its price target from $14 to $12 but maintained a Buy rating — still implies substantial upside from current levels, supporting some investor optimism. TickerReport/Benzinga
• Neutral Sentiment: Shareholder update and investor presentations: management held a shareholder call and provided investor materials outlining contracts and strategy — useful for validation but not an immediate earnings fix. Press Release / Presentation
• Negative Sentiment: Earnings miss and widening loss: Draganfly reported ($0.20) EPS vs. consensus ($0.13) and a much larger comprehensive loss driven by higher operating expenses and non‑cash items (inventory write‑downs, fair‑value changes). These hurt near‑term profitability metrics. Zacks
• Negative Sentiment: After‑hours selling and headlines: coverage flagged a >15% after‑hours plunge and headlines emphasizing the widened Q4 loss, amplifying volatility and prompting short‑term sellers. MSN
• Negative Sentiment: Profitability pressure from inventory write‑downs and increased operating costs: gross profit fell and adjusted gross margin compressed, raising investor concern about margin recovery. Quiver Summary
• Neutral Sentiment: Short‑interest data in reports appears inconsistent or corrupted (shows 0 shares / NaN changes) and is not a reliable indicator from these feeds today. Market participants should verify with exchange filings.

Institutional Investors Weigh In On Draganfly

Large investors have recently bought and sold shares of the business. IFP Advisors Inc bought a new stake in shares of Draganfly in the 3rd quarter worth about $39,000. Royal Bank of Canada lifted its holdings in shares of Draganfly by 478.4% in the 4th quarter. Royal Bank of Canada now owns 8,647 shares of the company’s stock valued at $60,000 after acquiring an additional 7,152 shares during the last quarter. Wexford Capital LP bought a new position in shares of Draganfly in the 3rd quarter valued at about $67,000. Qube Research & Technologies Ltd purchased a new position in Draganfly in the third quarter worth about $84,000. Finally, Jane Street Group LLC bought a new stake in Draganfly during the second quarter worth approximately $35,000. Institutional investors own 10.39% of the company’s stock.

Draganfly Company Profile

Draganfly Inc (NASDAQ: DPRO) is a Canada-based developer and manufacturer of unmanned aerial systems (UAS) and related software solutions for commercial, government and academic applications. Headquartered in Saskatoon, Saskatchewan, the company specializes in designing lightweight, modular drones that integrate advanced sensor payloads—including high-resolution imaging, multispectral and thermal cameras—to gather aerial data across a range of industries.

The company’s core offerings include turnkey UAS platforms, data-capture payloads and proprietary analytics software that enable clients to perform precision agriculture monitoring, land surveying, infrastructure inspection and environmental assessment.