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

25 Mar 2026, 11:06 by Scott Moore · The Cerbat Gem

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

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 Trading Down 18.9%

NASDAQ:DPRO traded down $1.20 during trading hours on Wednesday, hitting $5.14. The company’s stock had a trading volume of 1,875,659 shares, compared to its average volume of 2,186,841. The stock has a market capitalization of $176.52 million, a P/E ratio of -2.84 and a beta of 2.66. The stock has a fifty day moving average of $7.49 and a 200-day moving average of $7.79. Draganfly has a 52-week low of $1.63 and a 52-week high of $14.40.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the business. XTX Topco Ltd acquired a new stake in shares of Draganfly during the 2nd quarter worth about $65,000. Jane Street Group LLC acquired a new position in Draganfly in the second quarter valued at approximately $35,000. Virtu Financial LLC purchased a new position in Draganfly in the third quarter valued at approximately $894,000. Qube Research & Technologies Ltd acquired a new stake in Draganfly during the third quarter worth approximately $84,000. Finally, Scientech Research LLC acquired a new stake in Draganfly during the third quarter worth approximately $514,000. 10.39% of the stock is owned by institutional investors and hedge funds.

Draganfly News Summary

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.

Analysts Set New Price Targets

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

Check Out Our Latest Report on DPRO

About Draganfly

(Get Free Report)

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.