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Draganfly
(DPRO)
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Rating:51Neutral
Price Target:
C$6.50
▲(9.24% Upside)
Action:Reiterated
Date:10/02/26
The score is held back primarily by weak financial performance—significant losses and ongoing cash burn—despite a very strong, low-debt balance sheet. Earnings-call commentary adds cautious optimism from revenue growth, partnerships, and contract pipeline, but emphasizes near-term cost/margin pressures and timing uncertainty. Technicals are moderately supportive with positive MACD and neutral RSI, while valuation remains constrained by negative earnings and no dividend yield provided.
Positive Factors
Strong Balance Sheet
Minimal debt and a $131.9M cash balance give Draganfly financial flexibility while it develops products and pursues contracts. The stronger equity and working-capital position reduce near-term balance-sheet pressure, although operating performance still needs to improve.
Negative Factors
Widening Losses and Margin Pressure
Q2 comprehensive loss widened to $11.8M from $4.7M, while adjusted gross margin fell to 21.7% from 24.3%. Persistent losses and weaker margin conversion show that current revenue growth has not yet produced sustainable operating leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Balance Sheet
Minimal debt and a $131.9M cash balance give Draganfly financial flexibility while it develops products and pursues contracts. The stronger equity and working-capital position reduce near-term balance-sheet pressure, although operating performance still needs to improve.
Read all positive factors
Draganfly (DPRO) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$252.44M
Dividend YieldN/A
Average Volume (3M)49.19K
Price to Earnings (P/E)―
Beta (1Y)3.16
Revenue Growth26.30%
EPS Growth55.00%
CountryCA
Employees68
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)-1.08
Shares Outstanding39,017,680
10 Day Avg. Volume74,144
30 Day Avg. Volume49,191
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$14.25Price Target Upside139.57% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)-0.97
Revenue Forecast (FY)C$15.23M
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
Negative
5.95
Price Trends
7.06
Negative
7.40
Negative
8.35
Negative
Market Momentum
-0.14
Positive
39.25
Neutral
3.11
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DPRO, the sentiment is Negative. The current price of 5.95 is below the 20-day moving average (MA) of 7.58, below the 50-day MA of 7.06, and below the 200-day MA of 8.35, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 39.25 is Neutral, neither overbought nor oversold. The STOCH value of 3.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:DPRO.
Draganfly Risk Analysis
Draganfly disclosed 50 risk factors in its most recent earnings report. Draganfly reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Draganfly Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | C$879.81M | 39.27 | 21.62% | ― | 17.40% | 56.91% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | C$6.51B | 49.60 | 6.60% | 7.63% | 38.30% | -13.39% | |
60 Neutral | C$1.79B | 29.81 | 7.11% | 0.64% | 15.36% | 57.18% | |
51 Neutral | C$252.44M | -5.99 | -27.52% | ― | 26.30% | 55.00% | |
47 Neutral | C$16.87M | -2.50 | 90.24% | ― | -22.14% | -15.63% | |
46 Neutral | C$3.39M | -0.20 | -143.89% | ― | 82.19% | 90.16% |
* Industrials Sector Average
TSE:DPRO
Draganfly
5.95
-12.46
-67.68%
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31.49
14.72
87.73%
TSE:SNA
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0.01
0.00
0.00%
TSE:DFSC
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TSE:MDA
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9.96%
Draganfly Corporate Events
Business Operations and Strategy
Draganfly CEO to Spotlight AI-Driven Battlefield Sensing at Raymond James Defense Conference
Positive
Oct 8, 2026
Draganfly Inc., a drone solutions and software provider with more than 25 years of innovation, delivers award-winning unmanned systems and sensing technologies across public safety, civil, military, agriculture, industrial inspection, security, ma...
Business Operations and StrategyPrivate Placements and Financing
Draganfly Secures US$10 Million to Accelerate Strategic Drone Capabilities
Positive
Sep 30, 2026
Draganfly Inc., a long-established developer of advanced drone solutions and software, serves public safety, civil, military, agriculture, industrial inspection, security, mapping and surveying markets worldwide. The company leverages its multi-ex...
Business Operations and StrategyPrivate Placements and Financing
Draganfly Lands $10 Million Strategic Investment to Boost Defense-Focused Drone Growth
Positive
Sep 28, 2026
Draganfly has secured a US$10 million strategic investment, with Unusual Machines and a leading U.S. investment fund each contributing US$5 million through a registered direct offering priced at US$5.35 per share. The deal, expected to close aroun...
Business Operations and Strategy
Draganfly Wins Full Qualification in Canada’s New Defence Drone Marketplace
Positive
Sep 8, 2026
Draganfly has been selected as a Qualified Supplier across all five capability streams of Canada’s new Defence Drone Initiative Marketplace, securing a strategic position in a revamped defence procurement ecosystem. The qualification gives t...
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.