Draganfly Inc.

Draganfly reported Q2 revenue of $2.664 million, up 26% from $2.1 million in Q2 2025, with about $2.6 million from product sales and $100,000 from drone services. Gross profit was $533,100 versus $504,000 a year ago; adjusted gross margin was 21.7% versus 24.3% last year, and gross margin was 20% versus 15% in Q1 2026. Total comprehensive loss was $11.8 million versus a loss of $4.7 million in the prior-year quarter, with a $43,700 inventory write-down and an $8,900 fair-value derivative loss noted. Cash at quarter-end was $131.9 million, total assets were $154 million, working capital was $144 million, and shareholder equity was $148.9 million. No formal next-quarter or full-year revenue/EPS guidance was provided on the call; management instead pointed to a measured rollout of the IACLEA program, with the first 3 campuses going live next quarter and broader expansion possibly opening up in the second quarter of next year.

Cameron Chell framed the quarter as a record period and stressed that Draganfly is positioning itself as a modular, integrated drone supplier rather than a me-too product company. He emphasized strategic wins in campus security, rural public safety, and defense, saying the company is deliberately rolling out programs in a measured way to build references and meet evolving procurement cycles. His tone was upbeat and long-term focused, with repeated references to larger opportunities in Canada, NATO-related markets, and U.S. defense demand.

Paul Sun focused on the quarter’s reported numbers and balance sheet strength. He said revenue rose to $2.7 million from $2.1 million a year ago, gross profit was $533,100, adjusted gross margin was 21.7%, and the quarterly loss widened to $11.8 million mainly because of higher office and admin, R&D, share-based compensation, professional fees, travel, and wages. He also highlighted the February financing that lifted cash to $131.9 million, total assets to $154 million, working capital to $144 million, and shareholder equity to $148.9 million, while noting minimal debt.

In the pre-submitted Q&A, management was asked about its counter-UAS strategy and said Draganfly is developing proprietary counter-drone capabilities while also partnering where useful; the DEVCOM win was described as a major opportunity, with the core tracking and modular integration designed in-house. On NATO and Canada, management said the summit could lead to significant results and that Canada is becoming a more important revenue source than originally expected, especially in marine and Arctic use cases. Management also said the IACLEA and Small and Rural association wins matter because rural law-enforcement accounts for about 80% of U.S. police forces, and these programs should help build a reference base before broader rollout.