- Draganfly (CSE:DPRO) reported a 14.4 per cent year-over-year revenue increase to C$2.16 million in Q3 2025, with a significant cash balance of C$69.88 million following a C$25 million capital raise
- The company secured key contracts with the U.S. Army and Department of Defense, and completed major drone sales to a Fortune 50 telecom firm for emergency response and communications
- Draganfly received a follow-up purchase order to deliver Commander 3XL drones integrated with USaS’s LEAP tether system, enhancing persistent aerial operations for disaster recovery and telecom infrastructure support
- Draganfly Inc. stock (CSE:DPRO) last traded at C$10.98
Draganfly (CSE:DPRO) announced its financial and operational results for the third quarter of 2025, showcasing notable revenue growth and strategic defence and commercial partnerships.
Financial highlights
Via a news release, Draganfly reported Q3 2025 revenue of C$2,155,993, marking a 14.4 per cent year-over-year increase, driven by a 22.1 per cent rise in product sales to C$1,622,286. Despite the revenue growth, gross profit declined by 4.5 per cent to C$420,947, with a gross margin of 19.5 per cent, down from 23.4 per cent in Q3 2024. Excluding a one-time non-cash inventory write-down of C$43,337, gross profit would have been C$464,284 with a margin of 21.5 per cent.
The company posted an adjusted comprehensive loss of C$3,579,510, not including non-cash items such as a negative change in fair value derivative of C$1,837,618 and an impairment gain on notes receivable of C$35,461. Including these items, the comprehensive loss totalled C$5,425,004, compared to C$3,771,250 in Q3 2024. The year-over-year change was attributed to gains in foreign exchange and reduced professional fees, offset by increased office, employee, and share-based expenses.
Draganfly’s cash balance surged to C$69.88 million as of September 30, 2025, up from C$6.25 million at the end of 2024, bolstered by a C$25 million registered direct offering to institutional investors. This funding is expected to accelerate product innovation and acquisition strategies.
Operational milestones
Draganfly continued to strengthen its position in the defence and emergency response sectors:
- U.S. Army selection: Chosen to supply Flex FPV Drone Systems, reinforcing its role in the U.S. defence ecosystem.
- Commander 3XL UAV deployment: Selected by a major U.S. Department of Defense branch for advanced tactical operations.
- Defence contractor partnership: Sold Commander 3XL UAVs to a globally recognized defence contractor for use in persistent surveillance and perimeter security.
- Fortune 50 telecom engagement: Completed the sale of multiple Heavy Lift Drones for emergency response and communications applications.
- Manufacturing expansion: Announced the growth of its U.S. manufacturing footprint to meet rising demand for American-made drone solutions.
- Military tech demonstration: Successfully showcased its drone systems at the T-REX 24-2 Military Technology Exercise, validating multi-domain defence capabilities.
- Humanitarian collaboration: Partnered with Autonome Labs to present landmine clearance technologies at the Countering Explosives Conference.
Second major telecom order
In a significant development, Draganfly secured a second purchase order from a Fortune 50 telecommunications company. Under this agreement, the company will deliver multiple Commander 3XL drones integrated with Unmanned Systems & Solutions Inc.’s (USaS) LEAP tether system. This marks a major expansion and standardization of the telecom giant’s NDAA-compliant drone fleet, aimed at bolstering emergency management and post-disaster telecommunications support.
“Our LEAP tethered system was built for agencies and operators who require extended-duration aerial assets,” Paul Corry, Chief Executive Officer of USaS, explained in a media statement. “Partnering with Draganfly allows us to bring this capability to a proven, mission-ready platform and expand the impact of tethered operations in both emergency response and communications maintenance.”
The LEAP tethered system enables persistent aerial operations by providing continuous power and high-bandwidth data connectivity, significantly enhancing mission endurance and resilience. This integrated solution is tailored for critical-mission environments, including disaster recovery, infrastructure restoration, and first-responder support.
Looking to the horizon
With a robust cash position, expanding defense and commercial partnerships, and a growing portfolio of NDAA-compliant drone technologies, Draganfly is well-positioned to capitalize on emerging opportunities in the rapidly evolving drone and unmanned systems market.
About Draganfly
Draganfly Inc. is a Canadian developer of drone systems and autonomous solutions.
Draganfly stock (CSE:DPRO) last traded at C$10.98 and has flown 87.69 per cent higher since the year began.
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