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Draganfly
(DPRO)
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Rating:54Neutral
Price Target:
C$8.50
▲(42.86% Upside)
Action:Reiterated
Date:09/06/26
The score is held back primarily by weak financial performance—persistent losses and heavy cash burn outweigh the benefit of low leverage. Technicals add support via positive momentum, while the earnings call contributes a balanced view: strong strategic positioning and liquidity, but worsening near-term losses and execution/timing risk. Valuation remains constrained by ongoing unprofitability and lack of dividend support.
Positive Factors
Revenue Growth and Product Demand
The strong year-over-year revenue increase indicates improving demand for Draganfly’s UAV products and related solutions. Continued product-led growth can expand market presence, support greater production scale, and provide a foundation for future operating leverage if customer adoption persists.
Negative Factors
Persistent and Widening Losses
The sharp increase in comprehensive losses shows that revenue growth has not yet translated into improved earnings. Persistent losses can consume financial resources, limit internally funded investment, and make the company dependent on successful execution of future programs to establish a sustainable profit model.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth and Product Demand
The strong year-over-year revenue increase indicates improving demand for Draganfly’s UAV products and related solutions. Continued product-led growth can expand market presence, support greater production scale, and provide a foundation for future operating leverage if customer adoption persists.
Read all positive factors
Draganfly (DPRO) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$289.39M
Dividend YieldN/A
Average Volume (3M)30.44K
Price to Earnings (P/E)―
Beta (1Y)3.16
Revenue Growth26.30%
EPS Growth55.00%
CountryCA
Employees68
SectorTechnology
Sector Strength88
IndustryAerospace & Defense
Share Statistics
EPS (TTM)-1.08
Shares Outstanding37,148,520
10 Day Avg. Volume48,398
30 Day Avg. Volume30,436
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)1.55
Price to Sales (P/S)19.41
P/FCF Ratio-6.05
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$13.78Price Target Upside131.57% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)-0.93
Revenue Forecast (FY)C$15.22M
Draganfly Business Overview & Revenue Model
Company Description
Draganfly Inc. is a global manufacturer and supplier of commercial unmanned aerial vehicles (UAVs). Their product range features quadcopters, fixed-wing drones, ground-based robots, and associated handheld controllers. Complementing their hardware...
How the Company Makes Money
Draganfly primarily generates revenue by selling UAV products and related technology solutions, along with services that support deployment and ongoing operations. Key revenue streams include: (1) Product revenue from sales of drone platforms and ...
Draganfly Earnings Call Summary
Earnings Call Date:Aug 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Neutral
The call presented a mix of meaningful operational and strategic progress (record quarter revenue growth, large cash balance from financing, major partnerships and a significant DEVCOM contract, acquisition to bolster product capabilities) alongside material near‑term financial headwinds (a substantially larger comprehensive loss, margin compression, rising operating costs and revenue ramp/qualification delays). Strategic wins and a strong balance sheet position the company for future growth, but current profitability and the timing of contract conversions remain notable concerns.Positive Updates
Record Quarter Revenue Growth
Revenue of $2.66M in Q2 2026, a year‑over‑year increase of ~26% (from ~$2.1M in Q2 2025). Quarter‑over‑quarter revenue rose ~15.2% (from ~$2.3M in Q1 2026). Product sales were ~$2.6M (services ~$0.1M).
Negative Updates
Large and Widening Comprehensive Loss
Total comprehensive loss of $11.8M in Q2 2026 versus a loss of $4.7M in Q2 2025. Excluding small noncash items, adjusted loss would still be ~$11.7M vs ~$4.6M prior year. Quarter‑over‑quarter loss increased (Q1 2026 comprehensive loss $5.7M → Q2 $11.8M).
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarter Revenue Growth
Revenue of $2.66M in Q2 2026, a year‑over‑year increase of ~26% (from ~$2.1M in Q2 2025). Quarter‑over‑quarter revenue rose ~15.2% (from ~$2.3M in Q1 2026). Product sales were ~$2.6M (services ~$0.1M).
Read all positive updates
Company Guidance
Management guided a measured, capacity-driven ramp: the company reported Q2 FY2026 revenue of $2.664M (up 26% YoY) with product sales of about $2.5M, gross profit of $533,100 and an adjusted gross margin of 21.7%, while balance-sheet metrics include cash of $131.9M, total assets of $154M, working capital of $144M and shareholder equity of $148.9M; near-term operational guidance calls for rolling out the IACLEA campus program (an exclusive deal covering 3,000 campuses) from an immediate pipeline of 50+ campuses by deploying the first 3 campuses next quarter, then ~3 more each quarter with a full-scale “open the spigot” rollout targeted for Q2 FY2027, alongside expected Canadian procurements by year-end, pursuit of the 100‑nautical‑mile Lucas program via the Skip Dynamix fixed‑wing (thermoform) line that can be mass‑produced at low four‑figure unit cost and “tens of thousands” per month capacity, and maturation of a DEVCOM counter‑drone contract that management says could translate into hundreds of millions of dollars of revenue over time.Draganfly Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
72
Positive
Cash Flow
14
Very Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.04M | 7.73M | 6.56M | 6.55M | 7.61M | 7.05M |
| Gross Profit | 1.02M | 974.82K | 1.40M | 2.06M | 790.67K | 2.64M |
| EBITDA | -35.69M | -20.67M | -13.30M | -22.06M | -26.88M | -18.97M |
| Net Income | -32.46M | -22.98M | -13.88M | -23.61M | -29.16M | -13.16M |
Balance Sheet | ||||||
| Total Assets | 154.03M | 101.39M | 10.20M | 8.33M | 14.64M | 42.11M |
| Cash, Cash Equivalents and Short-Term Investments | 131.91M | 90.16M | 6.25M | 3.09M | 7.89M | 23.08M |
| Total Debt | 226.27K | 273.88K | 428.02K | 875.08K | 465.21K | 582.44K |
| Total Liabilities | 5.16M | 4.79M | 5.58M | 7.92M | 3.60M | 7.19M |
| Stockholders Equity | 148.87M | 96.60M | 4.62M | 407.72K | 11.04M | 34.93M |
Cash Flow | ||||||
| Free Cash Flow | -37.83M | -24.80M | -12.00M | -19.26M | -16.43M | -22.22M |
| Operating Cash Flow | -36.46M | -23.88M | -11.83M | -18.77M | -16.35M | -22.00M |
| Investing Cash Flow | -4.39M | -853.39K | -23.31K | -379.58K | 768.65K | -3.31M |
| Financing Cash Flow | 146.31M | 109.06M | 15.03M | 14.45M | -48.10K | 46.27M |
Draganfly Technical Analysis
Positive
5.95
Price Trends
6.62
Positive
7.38
Positive
8.61
Negative
Market Momentum
0.45
Negative
58.31
Neutral
67.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DPRO, the sentiment is Positive. The current price of 5.95 is below the 20-day moving average (MA) of 6.90, below the 50-day MA of 6.62, and below the 200-day MA of 8.61, indicating a neutral trend. The MACD of 0.45 indicates Negative momentum. The RSI at 58.31 is Neutral, neither overbought nor oversold. The STOCH value of 67.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:DPRO.
Draganfly Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | C$501.45M | 35.03 | 15.33% | ― | 11.09% | 4.67% | |
62 Neutral | C$6.47B | 49.53 | 6.60% | 7.63% | 38.30% | -13.39% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | C$1.83B | 31.07 | 7.11% | 0.61% | 15.36% | 57.18% | |
54 Neutral | C$289.39M | -7.27 | -27.52% | ― | 26.30% | 55.00% | |
49 Neutral | C$5.63M | -0.33 | -143.89% | ― | 82.19% | 90.16% | |
47 Neutral | C$16.87M | -3.75 | 90.24% | ― | -22.14% | -15.63% |
* Technology Sector Average
TSE:DPRO
Draganfly
7.85
0.49
6.66%
TSE:FTG
Firan Tech
21.02
8.47
67.49%
TSE:MAL
Magellan Aerospace
32.62
15.81
94.06%
TSE:SNA
Star Navigation Systems
0.02
<0.01
50.00%
TSE:DFSC
DEFSEC Technologies
2.09
-2.36
-53.03%
TSE:MDA
MDA Space Ltd
40.12
9.32
30.26%
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.