Draganfly (NASDAQ:DPRO) reported second-quarter 2026 revenue of CAD 2.7 million, up 26% from CAD 2.1 million a year earlier, as higher product sales helped drive growth. The drone technology company said it recorded CAD 2.6 million in product sales during the quarter, while drone services accounted for the remaining approximately CAD 100,000.
Gross profit totaled CAD 533,100, compared with CAD 504,000 in the second quarter of 2025. The latest quarter included a CAD 43,700 non-cash inventory write-down. Excluding that charge, adjusted gross profit would have been CAD 576,800, according to Chief Financial Officer Paul Sun. Adjusted gross margin was 21.7%, down from 24.3% in the prior-year period, which Sun attributed to differences in product and service mix.
Quarter-over-Quarter Growth and Balance Sheet
Revenue rose 15.2% sequentially from CAD 2.3 million in the first quarter, again driven primarily by product sales. Reported gross margin improved to 20% from 15% in the first quarter. On an adjusted basis, excluding inventory-related non-cash items, gross margin was 21.7% in the second quarter, compared with 19.6% in the first quarter.
The company ended June with CAD 131.9 million in cash, up from CAD 90.2 million at the end of 2025 following a financing completed in February. Total assets increased to CAD 154 million from CAD 101.3 million at year-end, while working capital surplus rose to CAD 144 million from CAD 95.2 million. Shareholders’ equity was CAD 148.9 million at quarter-end, compared with CAD 96.6 million at the end of 2025.
Sun said Draganfly continued to carry minimal debt.
Campus and Rural Public-Safety Programs
Chief Executive Officer and President Cameron Chell said Draganfly signed an exclusive agreement with the International Association of Campus Law Enforcement Administrators, or IACLEA, to provide drone and counter-unmanned aircraft system training, as well as products, to the association’s member campuses. Chell described IACLEA as representing roughly 3,000 campuses.
According to Chell, more than 50 campuses have indicated interest in the program. Draganfly plans to begin with three campuses in the next quarter, assess the deployments, and then add further groups in a measured rollout. He said the company expects to more broadly expand the program in the second quarter of next year after building a reference base and refining operational procedures.
As a subsequent event, Chell said Draganfly also signed the Small and Rural Association. He said the company’s public-safety strategy is focused less on competing directly for large urban police markets and more on campuses and rural agencies, which he estimated account for about 80% of police forces in the United States.
Defense Product and Technology Developments
Draganfly completed its acquisition of Skip Dynamix during the period. Chell said the acquisition brought engineering, operational and government-contracting experience, along with technology for thermoplastic fixed-wing aircraft. He said the technology is intended to support scalable, lower-cost production and modular payload configurations.
The company is positioning its fixed-wing offerings for potential demand for medium- and longer-range strike and intelligence, surveillance and reconnaissance missions. Chell said the acquired technology supports Draganfly’s Orca and Dolphin product lines, although he said the immediate impact of the acquisition has been on talent and technology rather than revenue.
Draganfly also said it was awarded a DEVCOM contract to develop an ultra-light, mobile counter-drone system. Chell said the proposed system is designed for uses including forward operating bases and personnel protection, and could incorporate tethered drones, kinetic or radio-frequency effectors, tracking software and modular components.
While Chell said the company sees potential for significant future revenue from the DEVCOM work and related international opportunities, he described those projections as forward-looking. Draganfly’s counter-UAS strategy includes developing proprietary capabilities while also working with established counter-drone companies as channel partners or through other partnerships.
The company additionally introduced a camera line through a partnership with Blitz. Chell said the cameras are intended to provide more durable, military-oriented and commercial dual-use capabilities, and can be fitted to Draganfly aircraft as well as other drone platforms.
- The Flex FPV drone was selected by two additional U.S. Department of War special forces units, according to Chell.
- Draganfly partnered with Japanese drone maker ACSL to bring NDAA-compliant drones to Canada on an exclusive basis and to the U.S. market.
- Draganfly said it has integrated interchangeable camera systems into the ACSL product line, with plans to extend that capability to other company platforms.
Canada and International Opportunity
Chell said he testified before the Canadian Senate regarding procurement cycles and attended a NATO summit in Turkey with other Canadian defense executives. He said Canada could become a more meaningful source of revenue than originally anticipated, citing defense spending, Arctic and marine requirements, and the country’s position within NATO.
The company plans to expand U.S. facilities and personnel before the end of the year to support anticipated demand, Chell said. He acknowledged that revenue growth may trail some competitors’ ramps, but said Draganfly has focused on building a broader, integrated product portfolio for military, public-safety and industrial customers.
About Draganfly (NASDAQ:DPRO)
Draganfly Inc (NASDAQ: DPRO) is a Canada-based developer and manufacturer of unmanned aerial systems (UAS) and related software solutions for commercial, government and academic applications. Headquartered in Saskatoon, Saskatchewan, the company specializes in designing lightweight, modular drones that integrate advanced sensor payloads—including high-resolution imaging, multispectral and thermal cameras—to gather aerial data across a range of industries.
The company’s core offerings include turnkey UAS platforms, data-capture payloads and proprietary analytics software that enable clients to perform precision agriculture monitoring, land surveying, infrastructure inspection and environmental assessment.
