Draganfly Q3 2026 Earnings Call Transcript

Draganfly (NASDAQ:DPRO) reported third-quarter financial results on Tuesday. The transcript from the company’s third-quarter earnings call has been provided below.

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Summary

Draganfly Inc reported Q3 2026 revenue of $2,048,425, a slight decrease compared to the previous year, with a gross profit of $128,000 and a gross margin of 6.3%.

The company has a strong cash position with over $128 million and has made strategic investments in its defense sector, including the establishment of Draganfly Defense USA led by retired Brigadier General A.J. Peshawan.

Draganfly achieved FAA clearance for its heavy-lift drones to fly BVLOS, enhancing sales potential in both commercial and military sectors.

In Canada, Draganfly qualified for the RFSA under the Defence Drone Initiative, positioning the company to secure significant government contracts.

Management highlighted key leadership hires, including Kevin LeBlanc leading Canadian defense operations, and noted international expansion efforts with upcoming trips to the Philippines and Ukraine.

Draganfly was selected by the Government of Canada for a potential $25 million order for low-cost tactical ISR drones.

Full Transcript

Rolly Bustos (Investor Relations Representative)

All right. I think to be respectful of everyone’s time and to get started in a timely manner, I think we’ll get going here. So as always, greetings and welcome to all of our shareholders, stakeholders, partners, customers who are on today’s Draganfly 2026 Q3 earnings call. As always, my name is Rolly Bustos. I am the internal Investor Relations Representative here at Draganfly. We appreciate you joining us as usual. We’ll start with our CEO and President, Cameron Shell, recapping our third quarter. Next will be a more detailed financial review with our CFO, Paul Sun. We will then conclude by addressing some of the pre-submitted questions we’ve received. Remember, you’re all welcome to reach out to me separately at investor.relations@draganfly.com in case we didn’t get to your question today.

As always, I remind everyone this presentation may include forward-looking information and statements. These statements are not guarantees of future performance or financial results and undue reliance should not be placed on them. Any future events or financial results may differ from what might be discussed here. The company’s results and statements are accurate as of today, November 10, 2026. We are under no obligation to update or renew these statements outside of material press release disclosure going forward.

The full forward-looking disclaimer can be found on page two of the presentation and on the screen right now. Cam, if you’re ready, please go ahead.

Cameron Shell (Chief Executive Officer and President)

Great. Thanks, Roli. Welcome, everybody. It’s a pleasure to be here for our Q3 update. Revenue for Q3 was $2,048,425, which represents a slight decrease over last year, which we’ll explain here over the next short bit. We had gross profit of $128,000. That’s gross margin of 6.3%. Also squeezed, but we’ll explain specifically why here shortly. We have a cash balance of over $128 million, and overall it was a really exciting quarter for us. Surprising in many ways, not from a sales standpoint but actually from the amount of work that we’ve got going forward and the result because of some of the decisions we made in Q2 and Q3.

So some operational highlights just to let everybody know: basically, one of the things that was really exciting for us is the standing up of Draganfly Defense USA, and in doing so we hired our President of Draganfly Defense USA, retired Brigadier General A.J. Peshawan from the U.S. Marines. A.J. was an acquisition specialist at the Marines. He then spent five years after retirement in professional consulting with one of the Big Four firms, and we’re super, super lucky to have him come over and lead that organization now.

Q3 has been really busy in terms of standing that organization up. The AUSA conference was incredible for us, just in terms of not just the amount of activity that was happening in Draganfly in general, but the specific buzz around AJ and a couple of team members heading up drone defense, or Draganfly Defense USA, which will be headquartered out of Tampa. So the other really important—there’s a number, but the other really important thing to announce here—is basically the heavy lift. We passed a 44807. So the heavy-lift, which can carry just under 67 or 70 pounds, now has clearance to fly BVLOS over, excuse me, over highways and people. There are only about four or five of these 44807s that have been passed in the States. Now one of the things that’s really important about this 44807—not the fact that it’s just done on such a big drone—but that 44807 now actually also applies down onto our customers.

So as our customers are buying this product, the waiver and the clearance is actually held by us. Now, they still have to have their requisite licensing and stuff as well, but they don’t have to go get a 44807 license as well. So we hold that, and that stands for the drone, and then our customers actually get to use it. So really excited that it’s a lot more than just the equipment certification—it’s process, it’s people, it’s a whole stream of matters that have to be approved and pushed through by the FAA.

So congratulations to the team on that. It has very big implications for sales coming up as it relates somewhat on the commercial side, because as we know, these are used to stand up cell towers in emergency situations where cell towers come down—these actually become cell towers. But also on the military side, we’ve got a number of projects that were—in order to move forward and complete the sales—we had to get the 44807 certification. So pretty excited about that.

Also up in Canada, the Drone Defence Initiative, which is Canada’s $2 billion plus—actually I believe it’s $3.8 billion over the next five years—on category one, category two, and some category three drones, called Canada’s Defence Drone Initiative, sorry, DDI. And so within that, there’s also a thing called the RFSA. So that’s the Request for Supply Arrangement, and this is something that’s the equivalent of Canada’s marketplace in order to participate in the defence industry working with the Canadian government.

So Draganfly has qualified in the RFSA under all five categories, a big part of which obviously is the Defence Drone Initiative marketplace. You have to be a Canadian company to actually participate in that, which basically lines us up. If we continue to be successful with what’s happened here over the last quarter and what is indicative of what’s coming in the future, then we should see ourselves hopefully getting a pretty big chunk of that spend.

Now, as a part of that, we did strengthen our Canadian leadership significantly. We now have Kevin LeBlanc who’s come on board. Super excited about Kevin joining us. He comes out of the Canadian Armed Forces—a Colonel in the Air Force, previous director of NORAD, et cetera, et cetera—and Kevin is actually heading up our Canadian defence and security. So he would be very similar to what AJ is doing in the States, who’s taking on Draganfly Defense USA.

Kevin’s running our military or defence security operations, sales, and initiatives in Canada. He brings an unbelievable amount of experience to the table, not just from CAF, but also from international NATO as well as a ton of global affairs experience as well. So actually Kevin and I are off traveling the next two weeks to the Philippines and Ukraine, really excited about the work that we’ve been able to get done there and which will be coming to fruition here in the next couple of weeks.

So on the specific sales side, a couple of things that are important in particular is the selection by the Government of Canada—DND in particular—for our low-cost tactical ISR drones. So this is an up to 40—excuse me, up to 5,000—drone order, total of $25 million. There are a few people that are included in this bid. So what happens is we actually deliver the first hundred drones here in.

Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company’s SEC filings and official press releases. Corporate participants’ and analysts’ statements reflect their views as of the date of this call and are subject to change without notice.