Draganfly Announces Record First Quarter Results of 2026
Rhea-AI Summary
Draganfly (NASDAQ:DPRO) reported record Q1 2026 revenue of $2.31M, up 49.4% year over year, with product sales rising 44.8% to $2.23M. Gross profit was $347,761 and gross margin 15.0%, or 19.6% excluding a $105,840 non-cash inventory write-down.
The company recorded a comprehensive loss of $5.71M (basic and diluted $(0.18) per share) versus $3.43M a year earlier, reflecting higher operating expenses and share issuance costs. Cash rose to $147.3M, assets to $161.1M, and shareholders’ equity to $155.8M.
Operational updates include deployments with Search and Rescue Sweden, a Flex FPV drone and training award with U.S. Air Force Special Operations Command, collaboration in Canadian defence initiatives, and a swarm autonomy integration milestone with Palladyne AI. Leadership changes include Cameron Chell becoming Executive Chairman and the appointment of Lieutenant-General (Ret’d) Michel Gauthier to the Military Advisory Board.
AI-generated analysis. Not financial advice.
Positive
- Q1 2026 revenue grew 49.4% year over year to $2.31M
- Product sales increased 44.8% year over year to $2.23M
- Gross profit rose to $347,761 from $310,088 year over year
- Cash balance increased to $147.3M from $90.2M at year-end 2025
- Shareholders’ equity grew to $155.8M from $96.6M at December 31, 2025
- Other income of $1.99M included a $1.05M positive derivative fair value change
- Award to supply Flex FPV drones and training to U.S. Air Force Special Operations Command
- Deployments and demonstrations with Canadian defence stakeholders and Search and Rescue Sweden
- Successful SwarmOS autonomy integration milestone with Palladyne AI for defence applications
Negative
- Q1 2026 net loss was $5.63M versus $3.42M in Q1 2025
- Comprehensive loss widened to $5.71M from $3.43M year over year
- Operating expenses rose to $7.96M from $3.91M in Q1 2025
- Gross margin declined year over year from 20.0% to 15.0%
- Non-cash inventory write-down of $105,840 reduced Q1 2026 gross profit
- Share issuance cost of $2.41M related to February financing increased loss
- Shares outstanding increased to 36.5M from 29.3M, indicating dilution
News Market Reaction – DPRO
On the day this news was published, DPRO declined 2.71%, reflecting a moderate negative market reaction. Argus tracked a trough of -6.1% from its starting point during tracking. Our momentum scanner triggered 3 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $6M from the company's valuation, bringing the market cap to $202.19M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
DPRO was up 4.98% ahead of this report with moderately elevated volume, while the only peer in the momentum scan (SIDU) was down 4.28%. Broader peers in Computer Hardware showed mixed moves (e.g., OPXS up, HOVR down), indicating the trading pattern appeared more stock-specific than sector-driven.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| May 08 | Defense contract win | Positive | +5.0% | Flex FPV drones selected by two additional U.S. Department of War units. |
| May 07 | Strategic partnership | Positive | -3.7% | Exclusive ACSL distributor deal to bring NDAA-compliant SOTEN drones to Canada. |
| Apr 14 | Policy testimony | Positive | +6.1% | CEO testimony to Canadian Senate on strengthening national defence capability. |
| Apr 10 | Media appearance | Positive | +7.7% | CEO featured on Fox Business to discuss drone warfare and Iran conflict. |
| Mar 26 | Corporate update | Positive | -4.7% | Update on defense momentum, industry tailwinds, and strong cash position. |
Recent defense and corporate updates have mostly led to positive price reactions, but there are instances where positive news was followed by declines.
Over the past several weeks, Draganfly has emphasized defense momentum and a stronger balance sheet. On Mar 26, 2026, a corporate update highlighting robust cash and defense engagements saw the stock fall 4.65%. By contrast, CEO media visibility and Senate testimony on Apr 10 and Apr 14 coincided with gains of 7.69% and 6.06%. The May defense order win on May 8 added another 4.98% move. Today’s record Q1 revenue fits this narrative of growing scale but continued losses.
Market Pulse Summary
This announcement highlights record Q1 2026 revenue of $2.31M, continued operating losses, and a much stronger cash position of $147.34M following a recent financing. Gross margin declined to 15.0%, reflecting mix and inventory write-downs, while net loss totaled $5.63M. Historically, defense wins and strategic updates have produced mixed price reactions. Investors may focus on how quickly margins can recover, whether operating expenses stabilize, and how the enlarged balance sheet supports sustainable growth.
Key Terms
derivative liability financial
comprehensive loss financial
non-cash write down financial
uncrewed aircraft systems technical
AI-generated analysis. Not financial advice.
Vancouver, BC., May 11, 2026 (GLOBE NEWSWIRE) -- Draganfly Inc. (NASDAQ: DPRO) (CSE: DPRO) (FSE: 3U8) (“Draganfly” or the “Company”), an award-winning, industry-leading drone solutions and systems developer, is pleased to announce its first quarter financial results.
Key Financial and Operational Highlights for Q1 2026:
- Revenue for the first quarter of 2026 was
$2,312,353 which represents a49.4% year over year increase. Product sales of$2,232,132 were up44.8% over the same period last year. - Gross profit for Q1 2026 was
$347,761 , up12.1% from$310,088 for the same period last year. Gross margin percentage for Q1 2026 was15.0% compared to20.0% in Q1 2025. Gross profit would have been$453,601 and gross margin would have been19.6% , not including a one-time non-cash write down of inventory of$105,840 . The decrease is due to the sales mix of the products sold. - The comprehensive loss for the period of
$5,711,284 includes non-cash changes comprised of a positive change in fair value derivative of$1,047,731 , a write down of inventory of$105,840 , and a share issuance cost of$2,412,431 related to a derivative liability from the February financing and its treatment on the income statement against the balance sheet, and would otherwise be a comprehensive loss of$4,240,744 compared to an adjusted comprehensive loss of$3,656,159 for the same period last year. Contributors to the year-over-year increase are increased office and miscellaneous, employee and management costs, and travel. - Cash balance on March 31, 2026, of
$147,339,721 compared to$90,156,821 on December 31, 2025. - Draganfly announced the deployment of its drone platforms with Search and Rescue Sweden, integrated with Smith Myers ARTEMIS mobile phone detection and location systems for search-and-rescue operations. The deployment supports missing-person recovery, wilderness rescue, police support, and other public-safety missions, while validating Draganfly’s Apex and Commander 3XL platforms for demanding operational environments.
- Cameron Chell, Chief Executive Officer of the Company since August 2019, was appointed Executive Chairman of the Board.
- Draganfly announced an award to provide Flex FPV drones and training to U.S. Air Force Special Operations Command units in partnership with DelMar Aerospace. The program includes FPV assembly, repair, flight operations, advanced mission planning, and execution training at DelMar Aerospace’s Camp Pendleton UAS range training facility.
- Draganfly announced its participation in the Canadian Army’s first Collaborative Uncrewed Aircraft Systems Working Group in support of the Government of Canada’s newly announced Defence Industrial Strategy. The Company’s participation aligns with Canada’s focus on strengthening sovereign defence capabilities, domestic production, and advanced uncrewed and autonomous aerial systems.
- Draganfly announced the appointment of Lieutenant-General (Ret’d) Michel Gauthier to its Military Advisory Board, adding more than 36 years of Canadian Armed Forces leadership experience. His appointment supports Draganfly’s growing engagement with defence and government markets as Canada advances its renewed Defence Industrial Strategy.
- Draganfly completed an exclusive Canadian Armed Forces capabilities demonstration at Area XO in Ottawa, Ontario, following its participation in the Canadian Army’s MINERVA Uncrewed Aircraft Systems working group. The Company showcased multiple unmanned aerial systems and mission capabilities, including Commander 3XL, Overwatch, Apex ISR, and FPV tactical drone systems, despite challenging winter conditions.
- Draganfly and Palladyne AI announced the successful completion of a key integration milestone, testing Palladyne AI’s SwarmOS platform across Draganfly’s mission-ready drone components and validating the system through flight simulation. The milestone advances the companies’ work toward decentralized, autonomous swarm capabilities for defense applications in dynamic and contested environments.
Draganfly will hold a shareholder update and earnings call on May 11, 2026 at 2:30 p.m. PDT / 5:30 p.m. EDT.
Registration for the call can be done Here
Selected financial information is outlined below and should be read with Draganfly’s consolidated financial statements for the quarter ended March 31, 2026, and associated management discussion and analysis, which will be available under the Company's profile on SEDAR+ at www.sedarplus.ca and filed on EDGAR at www.sec.gov.
| Three months ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Total revenues | $ | 2,312,353 | $ | 1,547,715 | ||||
| Gross Margin (as a % of revenues) (1) | 15.0 | % | 20.0 | % | ||||
| Net income (loss) | (5,628,866 | ) | (3,424,825 | ) | ||||
| Net income (loss) per share ($) | ||||||||
| - Basic | (0.17 | ) | (0.63 | ) | ||||
| - Diluted | (0.17 | ) | (0.63 | ) | ||||
| Comprehensive income (loss) | (5,711,284 | ) | (3,433,712 | ) | ||||
| Comprehensive income (loss) per share ($) | ||||||||
| - Basic | (0.18 | ) | (0.63 | ) | ||||
| - Diluted | (0.18 | ) | (0.63 | ) | ||||
| Change in cash and cash equivalents | $ | 57,182,900 | $ | (4,126,306 | ) | |||
(1) Gross Profit (as a % of revenues) would have been
| As at | March 31, 2026 | December 31, 2025 | ||||||
| Total assets | $ | 161,135,816 | $ | 101,387,873 | ||||
| Working capital | 154,355,940 | 95,242,327 | ||||||
| Total non-current liabilities | 144,405 | 174,763 | ||||||
| Shareholders’ equity | $ | 155,782,440 | $ | 96,596,795 | ||||
| Number of shares outstanding | 36,495,939 | 29,344,775 | ||||||
Shareholders’ equity and working capital as at March 31, 2026, includes a fair value of derivative liability of
| 2026 Q1 | 2025 Q4 | 2025 Q1 | ||||||||||
| Revenue | $ | 2,312,353 | $ | 1,912,199 | $ | 1,547,715 | ||||||
| Cost of sales(2) | $ | (1,964,592 | ) | $ | (1,826,490 | ) | $ | (1,237,627 | ) | |||
| Gross profit(3) | $ | 347,761 | $ | 85,709 | $ | 310,088 | ||||||
| Gross margin – percentage | 15.0 | % | 4.5 | % | 20.0 | % | ||||||
| Operating expenses | $ | (7,963,223 | ) | $ | (7,880,178 | ) | $ | (3,911,035 | ) | |||
| Operating income (loss) | $ | (7,615,462 | ) | $ | (7,794,469 | ) | $ | (3,600,947 | ) | |||
| Operating loss per share - basic | $ | (0.24 | ) | $ | (0.27 | ) | $ | (0.66 | ) | |||
| Operating loss per share - diluted | $ | (0.24 | ) | $ | (0.27 | ) | $ | (0.66 | ) | |||
| Other income (expense) | $ | 1,986,596 | $ | (1,829,827 | ) | $ | 176,122 | |||||
| Change in fair value of derivative liability (1) | $ | 1,047,731 | $ | (788,180 | ) | $ | 157,830 | |||||
| Other comprehensive income (loss) | $ | (82,418 | ) | $ | 252,876 | $ | (8,887 | ) | ||||
| Comprehensive income (loss) | $ | (5,711,284 | ) | $ | (9,371,420 | ) | $ | (3,433,712 | ) | |||
| Comprehensive income (loss) per share - basic | $ | (0.18 | ) | $ | (0.33 | ) | $ | (0.63 | ) | |||
| Comprehensive income (loss) per share - diluted | $ | (0.18 | ) | $ | (0.33 | ) | $ | (0.63 | ) | |||
(1) Included in other income (expense).
(2) Cost of goods sold includes a non-cash inventory write down in Q1 2026 of
(3) Gross profit would have been
About Draganfly
Draganfly Inc. (NASDAQ: DPRO; CSE: DPRO; FSE: 3U8) is a leader in cutting-edge drone solutions and software that are transforming industries and serving stakeholders globally. Recognized for innovation and excellence for over 25 years, Draganfly delivers award-winning technology to the public safety, civil, military, agriculture, industrial inspection, security, mapping, and surveying markets. The Company is driven by passion, ingenuity, and a mission to provide efficient solutions and first-class services to customers worldwide, saving time, money, and lives.
Media Contact
Erika Racicot
Email: media@draganfly.com
Company Contact
Cameron Chell
Chief Executive Officer
(306) 955-9907
info@draganfly.com
Note Regarding Non-GAAP Measures
In this press release we describe certain income and expense items that are unusual or non-recurring. There are terms not defined by International Financial Reporting Standards (IFRS). Our usage of these terms may vary from the usage adopted by other companies. Specifically, gross profit and gross margin are undefined terms by IFRS that may be referenced herein. We provide this detail so that readers have a better understanding of the significant events and transactions that have had an impact on our results.
Throughout this release, reference is made to “gross profit,” and “gross margin,” which are non-IFRS measures. Management believes that gross profit, defined as revenue less operating expenses, is a useful supplemental measure of operations. Gross profit helps provide an understanding on the level of costs needed to create revenue. Gross margin illustrates the gross profit as a percentage of revenue. Readers are cautioned that these non-IFRS measures may not be comparable to similar measures used by other companies. Readers are also cautioned not to view these non-IFRS financial measures as an alternative to financial measures calculated in accordance with International Financial Reporting Standards (“IFRS”). For more information with respect to financial measures which have not been defined by GAAP, including reconciliations to the closest comparable GAAP measure, see the "Non-GAAP Measures and Additional GAAP Measures" section of the Company’s most recent MD&A which is available on SEDAR.
Forward-Looking Statements
This release contains certain “forward looking statements” and certain “forward-looking information” as defined under applicable Canadian and U.S. securities laws. Forward-looking statements and information can generally be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “continue”, “plans” or similar terminology. Forward-looking statements and information are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that, while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of the Company to control or predict, that may cause the Company’s actual results, performance or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein, including but not limited to: statements in respect of Draganfly’s partnerships, capabilities, expertise, and financial condition; the successful integration of technology, the inherent risks involved in the general securities markets; uncertainties relating to the availability and costs of financing needed in the future; the inherent uncertainty of cost estimates and the potential for unexpected costs and expenses, currency fluctuations; regulatory restrictions, liability, competition, loss of key employees and other related risks and uncertainties disclosed under the heading “Risk Factors“ in the Company’s most recent filings filed with securities regulators in Canada on the SEDAR+ website at www.sedarplus.ca and with the U.S. Securities and Exchange Commission on the EDGAR website at www.sec.gov. The Company undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents managements’ best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.
