Draganfly Inc. Reports Promising Financial Results for Q3 2025
Vancouver, BC – Draganfly Inc., a renowned leader in drone solutions and systems, has unveiled its financial performance for the third quarter of 2025, showcasing a mix of growth and challenges as it continues to solidify its position in the rapidly evolving drone technology sector.
Financial Overview
The third quarter of 2025 has been a pivotal period for Draganfly, with the company posting a revenue of $2,155,993. This figure marks a significant 14.4% increase compared to the same quarter in the previous year, highlighting the company’s successful strategic initiatives and market expansion efforts. A notable contributor to this revenue growth was the surge in product sales, which rose to $1,622,286, reflecting a 22.1% increase from last year.
However, the company faced a slight dip in its gross profit, which stood at $420,947, a 4.5% decrease from $440,780 in the previous year. The gross margin percentage also saw a decline, coming in at 19.5% compared to 23.4% in the third quarter of 2024. This decrease is primarily attributed to a one-time non-cash inventory write-down of $43,337 and variations in the sales mix of the products sold. Without these adjustments, the gross profit would have been $464,284, and the gross margin would have been 21.5%.
The adjusted comprehensive loss, excluding non-cash changes, was reported at $3,579,510. This figure considers a negative change in the fair value of derivatives amounting to $1,837,618, alongside the aforementioned inventory write-down and an impairment gain on notes receivable of $35,461. Including these non-cash items, the comprehensive loss would total $5,425,004, compared to an adjusted comprehensive loss of $3,771,250 from the previous year. The year-over-year decrease is influenced by a gain in foreign exchange and a reduction in professional fees, although these were somewhat offset by increased office, employee, and management expenses, as well as share-based payments.
Despite these financial challenges, Draganfly maintained a robust cash balance of $69,881,348 as of September 30, 2025, a remarkable increase from $6,252,409 at the end of 2024. This strong cash position underscores the company’s ability to support its ongoing growth and innovation initiatives.
Operational Milestones
Draganfly has achieved several key operational milestones in the third quarter of 2025 that have strengthened its presence in the defense and technological sectors:
- U.S. Army Partnership: Draganfly was selected to supply Flex FPV Drone Systems to the U.S. Army, further reinforcing its strategic partnerships within the U.S. defense ecosystem. This collaboration highlights the company’s commitment to providing advanced and reliable drone solutions for military applications.
- Commander 3XL UAV Selection: The company’s Commander 3XL UAV was chosen by a major branch of the U.S. Department of Defense for advanced operational initiatives. This selection underscores Draganfly’s leadership in tactical UAV solutions, which are essential for modern military operations.
- Global Defense Contractor Sale: Draganfly announced the sale of its Commander 3XL UAV systems to a globally recognized defense contractor specializing in persistent surveillance technologies for military operations. These systems are expected to enhance perimeter security, provide early warning capabilities, and offer real-time situational awareness for the Department of Defense and allied installations.
- Heavy Lift Drones for Telecommunications: The company completed the sale of multiple Heavy Lift Drones to a Fortune 50 telecommunications company. These drones will be used for UAV-based emergency response and communications network applications, following rigorous field testing.
- U.S. Manufacturing Expansion: Draganfly has expanded its U.S. manufacturing footprint to meet the increasing demand for scalable, American-made drone solutions. This expansion is a strategic move to enhance production capabilities and reduce dependency on external manufacturing sources.
- Military Technology Exercise: Draganfly successfully demonstrated its Commander 3XL and Flex FPV drone systems at the T-REX 24-2 Military Technology Exercise. This invite-only event validated the drones’ multi-domain defense capabilities, including ultra-low-latency close-quarters aerial intelligence and deployable logistics.
- Teaming Agreement with Autonome Labs: At the Countering Explosives Conference, Draganfly announced a teaming agreement with Autonome Labs to highlight landmine route-clearance technologies. This partnership underscores the company’s commitment to humanitarian and defense innovation.
- Strategic Financing: The company raised US$25 million through a registered direct offering to institutional investors. This funding is crucial for accelerating growth, product innovation, and acquisition initiatives, thereby strengthening Draganfly’s balance sheet and positioning it to capitalize on emerging opportunities in the drone technology sector.
Future Prospects and Shareholder Engagement
Continuing its strategic initiatives, Draganfly filed a new final short form base shelf prospectus and a corresponding registration statement on Form F-10 on October 24, 2025. This move replaces the base shelf prospectus and Form F-10 registration statement previously filed in 2023, allowing the company to make public offerings of up to C$300 million.
Draganfly has scheduled a shareholder update and earnings call on November 12, 2025. Investors and interested parties can register for the call to gain insights into the company’s strategic direction and future plans.
Financial Summary
For a comprehensive view of Draganfly’s financial performance, readers are encouraged to review the company’s consolidated financial statements and management discussion and analysis for the quarter ended September 30, 2025. These documents provide detailed insights into the company’s financial health and are available on the SEDAR+ website and filed on EDGAR.
Draganfly’s financial journey in the third quarter of 2025 reflects both growth and challenges as it navigates the complexities of the drone technology industry. With strategic partnerships, innovative solutions, and a robust financial position, the company is well-equipped to drive forward in the ever-evolving landscape of drone technology.
For further information about Draganfly and its industry-leading solutions, visit their official website or explore their profiles on NASDAQ, CSE, and FSE.
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