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1. Company Snapshot

1.a. Company Description

Draganfly Inc.manufactures and sells commercial unmanned aerial vehicles worldwide.Its products include quadcopters, fixed wing aircrafts, ground based robots, and handheld controllers, as well as software used for tracking, live streaming, flight training, and data collection.


The company also offers custom engineering and training, simulation consulting, and flight training services, as well as wireless video systems.It serves public safety, agriculture, industrial inspections, security, and mapping and surveying markets.The company was founded in 1998 and is headquartered in Saskatoon, Canada.

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1.b. Last Insights on DPRO

Here is a 90-word analysis of the negative drivers behind Draganfly Inc.'s recent stock performance: Despite securing a rare FAA waiver for drone operations over people and moving vehicles, and partnering with Volatus Aerospace for an oil and gas exploration pilot project, Draganfly's stock has been pressured by concerns over its ability to scale its drone solutions business. The company's proof-of-concept flights in a drone delivery research project for Mass General Brigham may not have met investor expectations, leading to uncertainty around its growth prospects. Additionally, the lack of a recent earnings release has left investors without clear guidance on the company's financial performance.

1.c. Company Highlights

2. Draganfly's Q3 2025 Earnings: A Strong Upswing in Revenue and Strategic Advancements

Draganfly reported a revenue of $2.155 million for Q3 2025, marking a 14.4% year-over-year increase. The gross profit stood at $420,000, with a gross margin of 19.5%. The company's EPS loss was $0.18, beating estimates of a loss of $0.19. The cash balance as of September 30, 2025, was $69.9 million, indicating a strong liquidity position. With a total comprehensive loss of $5.4 million, primarily due to non-cash changes and foreign exchange gains, the company's financial performance reflects its investment in growth initiatives.

Publication Date: Nov -16

📋 Highlights
  • Revenue Growth:: Q3 2025 revenue rose 14.4% to $2.155 million year-over-year, with a gross margin of 19.5% ($420K profit).
  • Cash Reserves:: Cash balance stood at $69.9 million as of September 30, 2025, with minimal debt and no immediate plans for fundraising.
  • Production Expansion:: A new contract manufacturing deal will quadruple production capacity by end-2026, supporting potential $100M+ annual output.
  • Strategic Partnerships:: Collaborated with Paladin AI for AI integration and secured Drone Nerds as a U.S. reseller for public safety/military markets.

Operational Highlights and Strategic Advancements

Draganfly unveiled the Outrider Southern Border drone, designed to address specific mission sets along the southern border, and secured a deal with Paladin AI to incorporate their AI into Draganfly's drone fleet. The company also announced that Drone Nerds, the largest reseller in the United States, has taken on the Draganfly line for public safety and military purposes. These developments underscore Draganfly's commitment to innovation and expanding its market presence.

Market Opportunities and Growth Prospects

The company is well-positioned to address the Canadian market, with $2 billion in drone technology spending expected in the next few years. Draganfly has also secured an order from a Fortune 50 telecom company for its Heavy Lift Drones, which will be used for communication support on post-natural disaster. With the U.S. government discussing over 1 million drone orders, Draganfly is poised to capitalize on this demand, given its capability to scale production and meet the needs of the military and other customers.

Valuation and Growth Expectations

With a P/S Ratio of 7.01 and an expected revenue growth of 149.2% next year, Draganfly's valuation appears to reflect its growth prospects. The company's ROE and ROIC are negative, reflecting its current stage of investment and growth. As the drone industry continues to evolve, Draganfly's strategic advancements and market positioning suggest a promising outlook.

Industry Consolidation and Competitive Advantage

Draganfly expects consolidation in the drone industry, with many small companies struggling to scale production and meet mission-critical requirements. The company's focus on organic capacity, outsourcing capability, and integrated practices positions it favorably in this landscape. With a unique specialty in ISR, search and rescue, and border-related issues, Draganfly is poised to create high-margin business in custom and ideal markets.

3. NewsRoom

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Draganfly Welcomes Lieutenant-General (Ret'd) Michel Gauthier to Military Advisory Board in Support of Canada's Defence Industrial Strategy

Feb -20

Source: globenewswire.com

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Draganfly's CEO Says Drones Are Becoming Intelligence Platforms—Not Just Hardware

Feb -19

Source: marketbeat.com

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Draganfly to Participate in Canadian Working Group for Uncrewed Aircraft Systems in Support of Government of Canada's Newly Announced Defence Industrial Strategy

Feb -19

Source: globenewswire.com

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Top Drone Tech Stocks to Watch as Adoption Accelerates

Feb -13

Source: zacks.com

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Draganfly Is Becoming a Key Defense Drone Partner—Faster Than Expected

Feb -10

Source: marketbeat.com

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The Drone Supercycle Wall Street Still Hasn’t Priced In

Feb -07

Source: investorplace.com

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Draganfly Selected to Provide Draganfly Flex FPV Drones and Training to U.S. Air Force Special Operations Command Units in Partnership with DelMar Aerospace

Feb -02

Source: globenewswire.com

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Comparing Draganfly (NASDAQ:DPRO) & Dynatrace (NYSE:DT)

Jan -28

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (17.44%)

6. Segments

Drones

Expected Growth: 17.44%

Draganfly Inc.'s drone segment growth of 17.44% is driven by increasing demand for aerial data collection, surveillance, and inspection services across industries such as construction, agriculture, and public safety. Advancements in drone technology, decreasing costs, and regulatory approvals are also contributing to the growth.

Vital

Expected Growth: 10.43%

Vital from Draganfly Inc.'s 10.43% growth is driven by increasing demand for AI-powered health monitoring, expansion into new markets, strategic partnerships, and advancements in drone technology. Additionally, the growing need for remote patient monitoring and telemedicine solutions, particularly in the wake of the pandemic, has contributed to the company's rapid growth.

7. Detailed Products

Verge Aero

A high-performance, modular, and waterproof drone designed for industrial and commercial applications

Quantix Mapper

A hybrid drone that combines the benefits of a fixed-wing and multi-rotor drone, ideal for large-scale mapping and surveying

Drone Services

Customized drone-based solutions for industries such as agriculture, construction, and environmental monitoring

AI-Powered Video Analytics

AI-powered video analytics software for object detection, tracking, and classification

Sensor Integration

Customized sensor integration solutions for drones, including LiDAR, hyperspectral, and multispectral sensors

Drone Pilot Training

Comprehensive drone pilot training programs for industrial and commercial applications

8. Draganfly Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Draganfly Inc. faces moderate threat from substitutes due to the presence of alternative drone manufacturers and service providers.

Bargaining Power Of Customers

Draganfly Inc. has a diverse customer base, which reduces the bargaining power of individual customers, giving the company an upper hand in negotiations.

Bargaining Power Of Suppliers

Draganfly Inc. relies on a few key suppliers for critical components, giving them some bargaining power, but the company's size and reputation mitigate this risk.

Threat Of New Entrants

The drone industry is rapidly growing, and new entrants are emerging, posing a significant threat to Draganfly Inc.'s market share and competitive advantage.

Intensity Of Rivalry

The drone industry is highly competitive, with many established players and new entrants vying for market share, leading to intense rivalry and pricing pressure.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 66.10%
Debt Cost 3.95%
Equity Weight 33.90%
Equity Cost 13.03%
WACC 7.02%
Leverage 195.01%

11. Quality Control: Draganfly Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Terran Orbital

A-Score: 4.1/10

Value: 9.8

Growth: 3.2

Quality: 5.0

Yield: 0.0

Momentum: 6.0

Volatility: 0.3

1-Year Total Return ->

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Planet Labs

A-Score: 4.0/10

Value: 4.0

Growth: 5.2

Quality: 3.5

Yield: 0.0

Momentum: 10.0

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
Draganfly

A-Score: 3.9/10

Value: 6.9

Growth: 4.1

Quality: 3.3

Yield: 0.0

Momentum: 9.0

Volatility: 0.3

1-Year Total Return ->

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Stock-Card
Astra Space

A-Score: 3.9/10

Value: 8.6

Growth: 5.0

Quality: 3.6

Yield: 0.0

Momentum: 6.0

Volatility: 0.3

1-Year Total Return ->

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Stock-Card
Nauticus Robotics

A-Score: 3.8/10

Value: 9.4

Growth: 3.4

Quality: 4.9

Yield: 0.0

Momentum: 5.0

Volatility: 0.0

1-Year Total Return ->

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Stock-Card
Sidus Space

A-Score: 3.5/10

Value: 8.0

Growth: 4.3

Quality: 3.5

Yield: 0.0

Momentum: 5.0

Volatility: 0.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

7.89$

Current Price

7.89$

Potential

-0.00%

Expected Cash-Flows