Draganfly Q2 Revenue Jumps 26% on Strong Product Sales, CEO Maps Out Campus and Counter-Drone Push

Draganfly (NASDAQ: DPRO) reported a 26% year-over-year increase in revenue for the second quarter of 2026, reaching CAD 2.7 million, as product sales provided the main lift. Product revenue totaled CAD 2.6 million, while drone services contributed the remaining CAD 100,000.

Gross profit came in at CAD 533,100, compared with CAD 504,000 in the same period last year. The quarter included a non-cash inventory write-down of CAD 43,700; excluding that item, adjusted gross profit was CAD 576,800, according to CFO Paul Sun. Adjusted gross margin, however, slipped to 21.7% from 24.3% in the prior-year quarter, which Sun attributed to a shift in product and service mix.

The company’s total comprehensive loss widened to CAD 11.8 million from CAD 4.7 million a year earlier. Sun said the larger loss reflected increased office and administrative costs, R&D spending, share-based compensation, professional fees, travel, and wages. The quarter also included a CAD 8,900 fair-value loss tied to a derivative liability from a February 2024 financing.

On a sequential basis, revenue improved 15.2% from CAD 2.3 million in the first quarter, again driven mainly by product sales. Reported gross margin expanded to 20% from 15%, while adjusted gross margin, excluding inventory-related non-cash items, rose to 21.7% from 19.6%.

Draganfly ended June with CAD 131.9 million in cash, up from CAD 90.2 million at the end of 2025, following a February financing. Total assets climbed to CAD 154 million from CAD 101.3 million, and working capital surplus increased to CAD 144 million from CAD 95.2 million. Shareholders’ equity stood at CAD 148.9 million versus CAD 96.6 million at year-end. Sun said the company continues to carry minimal debt.

Beyond the numbers, the earnings call focused heavily on new public-safety opportunities. CEO Cameron Chell said Draganfly signed an exclusive agreement with the International Association of Campus Law Enforcement Administrators (IACLEA) to provide drone and counter-unmanned aircraft system training and products to member campuses. IACLEA represents about 3,000 campuses, and more than 50 have already expressed interest. The company plans to start with three campuses next quarter, evaluate the results, and then scale the rollout. A broader expansion is expected around the second quarter of next year.

Chell also noted a subsequent agreement with the Small and Rural Association, underscoring a public-safety strategy that targets campuses and rural agencies rather than competing head-on for large urban police contracts. He estimated those segments account for roughly 80% of U.S. police forces.

The company completed its acquisition of Skip Dynamix during the quarter. According to Chell, the deal brought in engineering, operational, and government-contracting expertise, as well as technology for thermoplastic fixed-wing aircraft that could support lower-cost production and modular payload configurations. The fixed-wing platforms are being positioned for medium- and longer-range strike, intelligence, surveillance, and reconnaissance missions. Chell said the immediate impact so far has been on talent and technology rather than revenue.

Draganfly also disclosed a DEVCOM award to develop an ultra-light, mobile counter-drone system. Chell described the potential use cases as including forward operating bases and personnel protection, and said the system could integrate tethered drones, kinetic or radio-frequency effectors, tracking software, and modular components. While the DEVCOM work and related international opportunities could generate significant future revenue, Chell stressed those projections are forward-looking. The company’s counter-UAS strategy combines proprietary development with partnerships involving established counter-drone firms.

The company introduced a new camera line through a partnership with Blitz. Chell said the cameras are designed to be more durable and provide military-oriented as well as commercial dual-use capabilities, and they can be fitted to both Draganfly aircraft and other drone platforms.

Chell also said he testified before the Canadian Senate on procurement cycles and attended a NATO summit in Turkey with other Canadian defense executives. He sees Canada as potentially a more meaningful source of revenue than originally anticipated, citing defense spending, Arctic and marine requirements, and the country’s NATO role. Draganfly plans to expand its U.S. facilities and headcount before the end of the year to handle expected demand. Chell acknowledged that revenue growth may lag some competitors, but said the company is focused on building an integrated portfolio for military, public-safety, and industrial customers.

Draganfly Inc. is a Canada-based developer and manufacturer of unmanned aerial systems and related software for commercial, government, and academic use. Headquartered in Saskatoon, Saskatchewan, the company designs lightweight, modular drones with advanced sensor payloads—including high-resolution imaging, multispectral, and thermal cameras—to support precision agriculture, land surveying, infrastructure inspection, and environmental assessment.