Draganfly Inc. (DPRO): Financial results for Q2 2026
Draganfly Inc. (DPRO) furnished an SEC Form 6-K — earnings release. Exhibit 99.1 Draganfly Announces Record Quarterly Results Vancouver, BC. August 10, 2026 – 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 sec
How this was made
The 30-second read
Why it matters
The earnings release delivers fresh data on revenue growth, cash balance, and loss magnitude, offering traders a basis for short‑term positioning.
Market read
First‑hand earnings data for a micro‑cap defense drone maker; relevance mainly to niche defense and aerospace investors.
What to watch
The impact of the one‑time derivative charge and share‑based compensation may be temporary, masking underlying operational improvements.
Draganfly Announces Record Quarterly Results
Revenue increased 26.0% year over year and gross profit increased from $504,592 to $533,149, but gross margin declined to 20.0% from 23.9% and comprehensive loss widened to $11,831,664 from $4,749,634 amid higher operating expenses and a one-time share-based compensation grant.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenueother | $2,664,237 | – | 26.0% |
| Product salesother | $2,560,378 | – | 34.6% |
| Cost of salesother | $ (2,131,088 ) | – | – |
| Gross profitnon-GAAP | $533,149 | – | 5.7% |
| Gross marginnon-GAAP | 20.0 % | – | – |
| Gross profit excluding non-cash inventory write downnon-GAAP | $576,811 | – | – |
| Gross margin excluding non-cash inventory write downnon-GAAP | 21.7% | – | – |
| Operating expensesother | $ (16,116,460 ) | – | – |
| Operating income (loss)other | $ (15,583,311 ) | – | – |
| Operating loss per share - basicother | $ (0.42 ) | – | – |
| Operating loss per share - dilutedother | $ (0.42 ) | – | – |
| Other income (expense)other | $ 3,550,477 | – | – |
| Change in fair value of derivative liabilityother | $ (8,931 ) | – | – |
| Net income (loss)other | (12,032,834 ) | – | – |
| Net income (loss) per share - basicother | (0.33 ) | – | – |
| Net income (loss) per share - dilutedother | (0.33 ) | – | – |
| Other comprehensive income (loss)other | $ 201,170 | – | – |
| Comprehensive income (loss)other | $ (11,831,664 ) | – | – |
| Comprehensive income (loss) per share - basicother | $ (0.32 ) | – | – |
| Comprehensive income (loss) per share - dilutedother | $ (0.32 ) | – | – |
| Adjusted comprehensive lossnon-GAAP | $8,042,112 | – | – |
| Revenue, six months ended June 30, 2026other | $ 4,976,590 | – | – |
| Gross margin, six months ended June 30, 2026non-GAAP | 17.7 % | – | – |
| Gross margin excluding non-cash inventory write down, six months ended June 30, 2026non-GAAP | 20.7% | – | – |
| Net income (loss), six months ended June 30, 2026other | (18,043,526 ) | – | – |
| Net income (loss) per share - basic, six months ended June 30, 2026other | (0.52 ) | – | – |
| Net income (loss) per share - diluted, six months ended June 30, 2026other | (0.52 ) | – | – |
| Comprehensive income (loss), six months ended June 30, 2026other | (17,924,774 ) | – | – |
| Comprehensive income (loss) per share - basic, six months ended June 30, 2026other | (0.52 ) | – | – |
| Comprehensive income (loss) per share - diluted, six months ended June 30, 2026other | (0.52 ) | – | – |
| Change in cash and cash equivalentsother | $ (15,431,524 ) | – | – |
| Change in cash and cash equivalents, six months ended June 30, 2026other | $ 41,751,376 | – | – |
| Cash balanceother | $131,908,197 | – | – |
| Total assetsother | $ 154,025,220 | – | – |
| Working capitalother | 144,090,031 | – | – |
| Total non-current liabilitiesother | 119,924 | – | – |
| Shareholders’ equityother | $ 148,870,160 | – | – |
| Number of shares outstandingother | 37,148,523 | – | – |
What drove it
- Product sales of $2,560,378 were up 34.6% over the same period last year.
- The Company stated that the gross-margin decrease was due to the sales mix of the products sold.
- The comprehensive loss included a one time share based compensation grant of $3,736,959.
- The Company entered into an exclusive distribution and development agreement with ACSL to introduce NDAA-compliant, Japanese-manufactured drone systems to the Canadian market.
- Draganfly’s Flex FPV system was selected by two additional U.S. Department of War units.
- The Company completed its acquisition of Skip Dynamix’s fixed-wing drone technology, intellectual property and infrastructure.
Concerns
- Gross margin was 20.0% compared to 23.9% in Q2 2025.
- Operating expenses were $ (16,116,460 ), compared with $ (4,974,316 ) in Q2 2025.
- Comprehensive loss was $ (11,831,664 ), compared with $ (4,749,634 ) in Q2 2025.
- Management cited increased office and miscellaneous, travel, research and development, employee and management costs as contributors to the year-over-year increase in comprehensive loss.
- Cost of goods sold included a non-cash inventory write down in Q2 2026 of $43,662.
What to watch
- Demand and commercialization from the additional U.S. Department of War unit selections for the Flex FPV system.
- Execution of the ACSL distribution and development agreement in the Canadian market.
- Integration of Skip Dynamix’s fixed-wing drone technology, intellectual property and infrastructure.
- Gross-margin performance and the effect of product sales mix.
- Operating-expense trends, including office and miscellaneous, travel, research and development, employee and management costs.
Balance sheet and cash flow
- Cash balance on June 30, 2026, of $131,908,197 compared to $90,156,821 on December 31, 2025.
- Change in cash and cash equivalents for the three months ended June 30, 2026 was $ (15,431,524 ).
- Change in cash and cash equivalents for the six months ended June 30, 2026 was $ 41,751,376.
- Total assets were $ 154,025,220 as at June 30, 2026, compared to $ 101,387,873 as at December 31, 2025.
- Working capital was 144,090,031 and shareholders’ equity was $ 148,870,160 as at June 30, 2026.
- Total non-current liabilities were 119,924 as at June 30, 2026.
Analysis
Draganfly reported Q2 2026 revenue of $2,664,237, up 26.0% year over year from $2,115,255. Product sales were $2,560,378 and were up 34.6% over the same period last year. Revenue was also reported at $2,312,353 in Q1 2026. The release highlighted additional U.S. Department of War selections for the Flex FPV system, an ACSL distribution and development agreement, and the completion of the Skip Dynamix technology acquisition as operational developments.
Profitability remained pressured by mix and operating costs. Gross profit was $533,149, up from $504,592 in Q2 2025, while gross margin was 20.0% versus 23.9%. Management attributed the margin decrease to the sales mix of products sold. Cost of goods sold included a Q2 2026 non-cash inventory write down of $43,662. Excluding that write down, the release stated gross profit would have been $576,811 and gross margin would have been 21.7%.
Operating expenses were $ (16,116,460 ), compared with $ (4,974,316 ) in Q2 2025 and $ (7,963,223 ) in Q1 2026. Operating loss was $ (15,583,311 ). Net loss was (12,032,834 ) and comprehensive loss was $ (11,831,664 ), compared with $ (4,749,634 ) in Q2 2025. The comprehensive loss included a one time share based compensation grant of $3,736,959, a non-cash inventory write down of $43,662, and a negative change in fair value derivative of $8,931. The release stated adjusted comprehensive loss was $8,042,112 compared to $4,567,128 for the same period last year.
Liquidity metrics strengthened relative to December 31, 2025. Cash balance was $131,908,197 compared with $90,156,821, while total assets were $ 154,025,220 and shareholders’ equity was $ 148,870,160 as at June 30, 2026. Working capital was 144,090,031 and total non-current liabilities were 119,924. The filing reported no forward financial guidance, capital-return activity, operating cash flow, free cash flow, or debt balance.
Not in the filing
stated, not guessed- Forward financial guidance
- Prior-period outlook for guidance comparison
- Operating cash flow
- Free cash flow
- Debt balance
- Capital returns, including share repurchases and dividends
- Reportable revenue segments
- Tax rate
- GAAP or IFRS designation for each individual financial-statement line item
- Management earnings-call commentary or named-executive quotations
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Draganfly Inc. filed a Form 6‑K with the SEC, providing its Q2 2026 financial results and announcing several new defense contracts and an acquisition.
Ticker impact
Q2 2026 earnings released via SEC Form 6‑K showing 26% YoY revenue growth to $2.66 M and cash balance of $131.9 M.
Potential short‑term downside pressure as loss widens, though cash buildup may support a modest rebound.
The earnings beat on revenue is offset by widening losses and margin compression, likely prompting sell‑side caution.
Market effects
Highlights growing demand for NDAA‑compliant drones in defense and public‑safety sectors.
Positive for Canadian aerospace and defense suppliers; modest effect on U.S. defense contractors.
Limited to niche drone and defense technology markets.
Counterpoint
Despite the loss, the strong cash position and new defense contracts could enable a turnaround.
Key entities
- CompanyDraganfly Inc.
NASDAQ‑listed drone solutions provider.
- PartnerACSL
Japanese drone market partner for exclusive distribution.
