DPRO

Lockheed Martin (LMT) came out with quarterly earnings of $7.97 per share, beating the Zacks Consensus Estimate of $7.49 per share. This compares to earnings of $6.95 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +6.41%. A quarter ago, it was expected that this aerospace and defense company would post earnings of $7.22 per share when it actually produced earnings of $7.94, delivering a surprise of +9.97%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Lockheed, which belongs to the Zacks Aerospace - Defense industry, posted revenues of $20.71 billion for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 1.35%. This compares to year-ago revenues of $18.61 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Lockheed shares have added about 14% since the beginning of the year versus the S&P 500's gain of 13.3%. While Lockheed has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Lockheed was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $8.55 on $22.55 billion in revenues for the coming quarter and $30.43 on $80.86 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Aerospace - Defense is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Draganfly Inc. (DPRO), has yet to report results for the quarter ended September 2026. This company is expected to post quarterly loss of $0.19 per share in its upcoming report, which represents a year-over-year change of -5.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Draganfly Inc.'s revenues are expected to be $3.16 million, up 101.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lockheed Martin Corporation (LMT) : Free Stock Analysis Report Draganfly Inc. (DPRO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

GE Aerospace (GE) came out with quarterly earnings of $2.25 per share, beating the Zacks Consensus Estimate of $2.02 per share. This compares to earnings of $1.66 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +11.39%. A quarter ago, it was expected that this industrial conglomerate would post earnings of $1.86 per share when it actually produced earnings of $2.02, delivering a surprise of +8.6%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. GE, which belongs to the Zacks Aerospace - Defense industry, posted revenues of $13.29 billion for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 4.99%. This compares to year-ago revenues of $11.31 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. GE shares have added about 1.1% since the beginning of the year versus the S&P 500's gain of 12.4%. While GE has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for GE was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.02 on $13.42 billion in revenues for the coming quarter and $7.91 on $50.66 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Aerospace - Defense is currently in the top 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Draganfly Inc. (DPRO), has yet to report results for the quarter ended September 2026. This company is expected to post quarterly loss of $0.19 per share in its upcoming report, which represents a year-over-year change of -5.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Draganfly Inc.'s revenues are expected to be $3.16 million, up 101.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report GE Aerospace (GE) : Free Stock Analysis Report Draganfly Inc. (DPRO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Monday, Aug. 10, 2026 at 5:30 p.m. ET Internal Investor Relations rep - Rolly Bustos CEO and President - Cameron Chell CFO - Paul Sun Rolly Bustos: Hi, everybody. Welcome to our Q2 2026 earnings call. We'll just give this a minute. We just started it, but just letting people file in the room, and then we'll get started. Thank you. All right. I think to be respectful of everyone's time, we will get started just as people are still starting to file in. So as always, welcome and greetings to all the shareholders and stakeholders who always tend to join us on these calls. This time is the Draganfly 2026 Q2 Earnings Call. My name is Rolly Bustos. I'm the Internal Investor Relations rep here at Draganfly. We appreciate you all joining us as always. We'll start with our CEO and President, Cameron Chell. He'll be talking about and recapping the second quarter. Next up will be a detailed financial review with our CFO, Paul Sun. We'll then conclude by addressing the presubmitted questions we've received. As always, you're welcome to reach out to me directly at [email protected], if we didn't get to your question today. I remind everyone that 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, August 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 2 of this presentation and on the screen right now. Cam, if you're ready, please go ahead. Cameron Chell: Sounds great. Thanks Rolly. Sure appreciate it and appreciate everybody taking the time to afford us the opportunity to update our earnings call for this last quarter. So the net-net here is that Draganfly, we had a record quarter in our second quarter and we're really very pleased with the progress that we are moving forward with. It's super pragmatic. I understand that it's a very pragmatic approach compared to maybe, say, a number of other comps out in the industry, but we're super pleased with where we've ended up and what the pipeline looks like going forward. So our revenue was $2.664 million. That's a year-over-year increase of 26% with gross profit of $533,000 plus. We have a current cash balance of $131 million, and we did just over $2.5 million of product sales. Some of the highlights from the last quarter included IACLEA which is the International Association of Campus Law Enforcement Association or Officials/Professionals (sic) [ Administrators ]. This is a 3,000-strong campus association, and they signed an exclusive deal with Draganfly to provide their association members -- the 3,000 campuses that are a part of this -- with the training for drones and counter-drones on their campuses. It also includes product and they went through what I would call a pretty exhaustive series of tests and litmus tests and interviews and all the rest of it to determine who they were going to go with, who they were going to endorse and what program they were going to put in place. I would say that this was 50% based on product and 50% based on subject matter expertise and the quality of the training program that was being put forward that campuses will go through. So it's a tremendous market win for us. We have an immediate pipeline of over 50 campuses that signed up. We are in -- typical fashion of what we do, which I know is frustrating at times, taking a very pragmatic approach to how we do this. So we're moving up. We did some pilots previous to launching the whole program, which helped us establish what that training protocol would be, what were the use case scenarios and the concepts of operations that we were going to have to be planning for. We had to make some key hires in campus security, counter-drone and a number of other tactical positions in order to really develop that right programming. And we're rolling out the first 3 campuses that have signed up with us in the next quarter. We'll assess those 3 campuses. We'll probably run them. We'll sign up another 3 of the 50 that are indicative in the pipe. And we'll run them for a quarter, then run the next ones for a quarter and get all that operational expertise, make the adjustments necessary and then we'll open up the spigot to it in probably the second quarter of next year, which works well in terms of most of the budget timing and actually most of the decision timing that it takes for things to move forward. But we really want to make sure that we've got a great reference base in this regard. It's a bit of a captured market for us. So really hats off to our public safety organization and how they organize this. I will mention as a subsequent event, we also did sign the Small and Rural Association and that's a very, very important association for us to sign as well. And part of our whole strategy here is not necessarily to go after the urban centers. So those urban centers are really well-serviced by organizations like Skydio, Axon, BRINC who are very, very targeted in those areas, have obviously very strong balance sheets, competent management teams, and we didn't want to be going head-to-head with those folks. Now the campuses is a terrific set of organizations for us to go and work with, including the release of our drone-in-a-box solution to them. However, the rural, which makes up about 80% of police forces in the country but they're smaller. So they're a little bit more expensive to work with, but they're not quite as fussy. So you've got a balance there to work with. There are a couple of other associations that we're close to signing. But again, we're just -- we're trying to roll it out in a measured way. We also completed the acquisition of Skip Dynamix. Now this is a really strategic acquisition for us. Skip Dynamix is -- the 2 founders involved here are former Navy grads. They're actually the individuals that designed the original FPVs for the Marines and over 15 years ago, trained Marines and built protocol around FPVs. Now a lot of people don't know this, but FPVs weren't invented in Ukraine. They were introduced to Ukraine by the U.S. Marines as a bit of a Hail Mary to like 'You guys are in a tough spot, try this.' And lo and behold, it worked. So the amount of experience that these 2 individuals brought to the organization -- not just in terms of their engineering prowess, capability, operational prowess, but also their contacts in the existing work that they do within the government -- was really important. Now this particular product that you see in the picture there, that is initially designed as a one-way attributable fixed-wing drone. So the part of the strategy here is twofold, and we see it unfolding exactly as these guys had predicted. There's 2 reasons that fixed wings will become much, much more prevalent over the coming couple of years. First of all, if there's engagement in Taiwan or the South Pacific, you're dealing with a surface area -- an ocean -- that's 5x the size of the Atlantic. Distance matters, and you're not going to be using quadcopters in those types of engagements. And it will basically be a naval or a marine or a beachfront type of engagement. So you need a different type or piece of equipment. And this is positioning us for that spend that's coming up in that regard. It is our estimation that the 100-nautical-mile Lucas program -- this is exactly what this is targeted toward -- and we're down to the final few contestants or selections for that, and we feel pretty good about it. Now interestingly enough this particular plane is also an excellent ISR. It could be hand thrown. It could be from a ship or from the shore. So it's like an anywhere, anytime, very easily manpackable. And an interesting piece of the construction around this product is the fact that it's not composite. It's actually a thermoform. So we can mass produce this thing today. Today we can push out tens of thousands of these things in a month at very, very low cost, like 4-figure cost. And that's really important, and they're completely customizable inside. So depending on the type of radio that you want to run or the type of payload that you want to have or ordinance or such. So it's very, very modular as well. So it really fits our philosophy of modular drones. Draganfly was very proud to be awarded by DEVCOM development of a counter-drone system. This is an ultra-light, ultra-mobile counter-drone system. It has all kinds of different use cases. The primary use case was forward-operating bases or even squads that have to go out and maybe spend time overnight and need to protect personnel. It does include a tethered drone. It includes an effector that can be either kinetic or RF and some pretty sophisticated software on the tracking side. So we're really excited about what's happening there and how that's -- we've got strong experience in the counter-drone space, but winning this DEVCOM contract is significant and I believe translates into hundreds of millions of dollars of revenue, not just within the U.S. DoW, but in the international markets as well over the coming years. We launched a brand-new line of cameras in a partnership with a company called Blitz. And you can see by the picture of that camera there, this is not a typical consumer dual-use type camera. It is a hybrid of a military camera and a dual-use commercial camera, but packed in a case and container that is much more durable and the optics on it are incredible compared to what you would get in a prosumer or in a dual-use type drone. And this is a bit of a trend that we see in the defense side of the business where you see the quality of the product, even if it's dual-use, moving up the food chain. And I would suggest this is also a reason that we continue to see a slight -- a meaningful delay in our revenue ramp because the specifications and qualifications that are being asked for are being refined on the fly. So we may have a large order and then as the order gets there, they're like, 'Hey can you make this tweak?' And then you've got to redesign some cameras. And candidly, this is why we worked in partnership to develop this entire camera system. It's very unique to Draganfly. It'll fit on any of our models. It'll also fit onto other drone models as well and really launches us into the optics business. Draganfly, the Flex, the FPV drone was selected by 2 additional U.S. Department of War units. I can tell you that these are all Special Forces units and we're really proud of the fact and pleased with the fact that these particular Special Forces units are selecting the Flex drone. There's a couple of primary reasons that we can't really talk about but a couple of them that are disposable is in particular that you've got arms and blades that you can switch out. So what that means is that you've got variability in your mission profile without having to carry a whole bunch more equipment. But the unintended consequence of that design was that you can fit between 3 and 4 times as many drones in the same space whether that's a backpack or the back of a truck because of the way they pull apart and it takes seconds to pull apart or put together. But the way they do, they just pack nicely into very contained spaces. So again, that wasn't part of the original design concept in terms of what the benefit was, but it's actually turning out to be an incredible benefit. Now the performance of it will match -- the difference between FPVs out there in terms of speed and maneuverability is marginal between any of them. But because you can put some bigger blades on this even with shorter arms you actually can do some bigger payloads and some more sophisticated radios. Some of these are actually being used in live situations right now even as ISR drones. So some great lessons that have come out of that, and we see a great future for this particular one. ACSL and Draganfly have partnered to bring NDAA-compliant Japanese drones into the Canadian and actually into the U.S. market as well but into the Canadian market it's exclusive. But into both of these markets it's important to note that these are not just typical ACSL Japanese-made drones. This is originally a drone that was originally designed by Hitachi but the ACSL drones that are in our lineup are in our lineup because we've integrated them with our other drones. So you'll see on the front of the ACSL drone a camera system that pops off and another camera that can pop on whether it be a thermal, a higher res, hyperspectral or whatever the case may be. There's 4 different cameras. But those cameras now also pop off and are being fitted onto the APEX drone and eventually onto all of the drones. So we'll have an interchangeable camera system that will be included in the ACSL line. Now only Draganfly will have that interchangeable capability with ACSL. So we're building strategic differentiators into this particular product line. Now the reason that we didn't build this product ourselves is that everybody builds this product and it's typically a low-margin product but it's something that you've got to have in your product mix because it's a very convenient and popular-sized drone and it works great for ISR whether that be in military, public safety or industrial. But that particular drone model in our opinion is a race to the bottom. So we wanted to come up with a strategy that would still allow us to scale, still build some unique capabilities within our product line but also not have us utilize valuable resources to develop a me-too type product. And I'm not suggesting ACSL is a me-too or that company is a me-too. They've done some really, really cool things here, but this is all they do. You really have to just be focused in that particular product line if you're going to be even somewhat successful. And, of course, our product line tends to be first of all interchangeable, modular. Arguably we're still the only folks out there that have a fully integrated product line across 6 different drone sets. So if you're a squad, a company, a battalion, a brigade, you've got all the different drone sections that you can pick from 1 supplier. We supply everybody from a squad right up to brigade. We don't go up to command level because those are typically drones that are Category 3 drones. But interestingly enough the biggest demand signal that we see over the next couple of years is going to be medium- and long-range strike drones. And hence that's exactly why we bought the expertise and technology behind Skip Dynamix. So you will see us entering into at least the medium-strike and likely the long-strike area over the next number of years as well. I had the great pleasure of -- man that picture is -- I got to talk to our PR department. That was a long time ago. But anyway I had the great pleasure of providing testimony to the Canadian Senate specifically talking about how to speed up the procurement cycles: one, to help industrialize the military complex in Canada; but 2, to help ensure that they are able to get the equipment they need in the time frame they need because everything is sped up. Now it's interesting because Canada has also in many respects become a leading voice and a leading industrial nation even within the European pack. So much of that testimony was applied over into NATO. I was invited also by the Prime Minister's Office to attend a NATO summit in Turkey along with 6 other Canadian defense executives. And it was probably one of the most productive and insightful trips that I've ever had the pleasure of being on with direct contact with multiple world leaders talking specifically about procurement cycles, where we're at in the drone space, what are the things that we need to do to be effective long term. Not next quarter, but what do we need to do to build a successful long-term industrial base. So it's premature to say right now, but you will see massive procurement coming out of the Canadian market even by the end of this year which is another reason that our procurement and revenue cycle will see a significant bulge in it because we've had to remain measured in order to meet that demand on a timeline that's going to be required of us. So again, we've worked ourselves into a very privileged situation to be able to serve the people that serve, and we're hopefully going to be able to do the job that's being asked of us. At this point I'm going to turn it over to our CFO, Paul Sun, to run through the financial highlights. Paul? Paul Sun: Yes. Thanks, Cam. Thanks everyone for joining. So yes, this first slide here we'll look at a snapshot of the second quarter comparing it to the year-over-year quarter last year. So revenue as Cam mentioned 26% up to $2.7 million from $2.1 million in the second quarter of '25. Second quarter revenue comprised of $2.6 million in product sales with $100,000 for the balance coming from drone services. Gross profit $533,100 compared to $504,000 in Q2 of last year. We did have a onetime noncash write-down of inventory of $43,700 and otherwise would have been $576,800 compared to the same period last year where there was a onetime inventory write-down of $10,400 making the adjusted gross profit $515,000 last year. Adjusted gross margin for Q2 was 21.7% compared to last year's adjusted number of 24.3%. This was a result of products and services mix comparing the 2 quarters as some products have different margin profiles than others. Total comprehensive loss for the quarter was $11.8 million compared to a loss of $4.7 million in the same period last year. This quarter does include that noncash write-down of inventory of the $43,700 and a small fair value of derivative liability loss of $8,900. You'll recall that's from a February '24 financing that we did where it's just the way we report functionally in Canadian, so we have to account for that as a derivative. So loss otherwise would have been a comprehensive loss of $11.7 million versus an adjusted loss of $4.6 million in the same quarter of 2025. Increase is primarily due to higher office and admin cost, R&D, share-based comp, professional fees, travel and wages. And if we can go to the next slide please to do a quarter-over-quarter change. Looks good. Yes, so revenue for Q2 was up 15.2% to $2.7 million again compared to the $2.3 million for Q1 of this year in '26 mainly due to higher product sales. Gross margin for Q2 was 20% compared to 15% in Q1 of '26. However if we back up that onetime inventory write-down that I mentioned before gross margin for Q2 would have been 21.7% compared to 19.6% adjusting for noncash items in the previous quarter. Total comprehensive loss for Q2 again $11.8 million compared to a comprehensive loss of $5.7 million for Q1 of '26. And, of course, you'll recall we had that loss in fair value of derivative liability of $8,900 and the write-down of inventory of $43,700. So Q2 would have been $11.7 million compared to a loss of $6.6 million, excluding noncash adjustments in Q1 of this year. Again, increase in quarter-over-quarter was primarily due to the same factors being high office and admin costs, R&D, share issuance cost, professional fees, travel and wages as the company continues to scale as per Cam's earlier comments. Moving to the last financial slide here. I think we've got a snapshot of the balance sheet. So you can see total assets increased from $101.3 million to $154 million from the end of the year, largely due to the increase in cash. You'll recall we did do a relatively large financing in February of this year. The working capital surplus as at June 30 was $144 million versus $95.2 million from the end of 2025. Shareholder equity was $148.9 million at quarter end compared to $96.6 million at the end of last year. However, both working capital and shareholders' equity would have been a little bit higher if we ex'ed out those noncash fair value of derivative liability that I mentioned earlier for the quarter as well as at year-end. You can see we continue to have minimal debt and our cash balance at the end of this quarter was $131.9 million compared to $90.2 million at the end of '25 as again we did that February financing. And with that I'll pass it back to you Cam. Cameron Chell: Great. Thank you, Paul. Appreciate it. Just a super quick review. This is our core line here along with 2 additional -- actually 3 additional products. So we've got the Flex FPV, the APEX, the Commander, the Heavy Lift Drone. That Heavy Lift also comes in a hybrid called the Outrider which is up to 7-hour flight time with a 67-kilogram payload capacity. And the ORCA the beginning of our fixed-wing line, our medium- and long-range strike. This is currently short-range strike. Short-range we're calling 100 nautical miles. Depending on the area that you're working in like 100 nautical miles would actually be about a medium-range strike drone in the Ukrainian theater. But in the Pacific theater that's a short range. And then, of course, we've got the SOTEN which is unique -- with the modifications that we've made and the integrations that we've done, that is a unique product for us. You will continue to see product rollout from us over the coming quarters as well. I shouldn't say more than that but pretty excited about the things that are being driven by customer demand and where we're positioning those things from both our military and in particular public safety customers. Cameron Chell: So there are a number of questions that came in that Rolly provided to me so I'm just going to read them here if that's okay and do my best to answer them. So could you discuss Draganfly's strategy in the current UAS -- counter-UAS market? Is Draganfly developing its own counter-UAS system or do you expect these capabilities to be delivered primarily through strategic partnerships and integrations. So great question. And I think as one of the advantages that we have or one of the strengths that we have is the fact that we've been building drones for 27 years. We understand the vulnerabilities of them extremely well. And we have -- we were doing counter-drone work 15 years ago. Well it was 12 years ago. We built a drone that shot nets out using airbag explosives under contract with AeroVironment who was a big customer of ours at that time. And we've seen many progressions and one-offs that we've built for different programs out there. So we are developing our counter-drone capabilities. We have purposely not tried to be first to market in this regard because it is like the UAS space, a very fast-moving, continually changing space, more because tactics from aggressors can change so quickly. And because it's such a nascent industry, the concepts of operations and the use cases all change super quickly. So we're definitely an innovative company. We don't try to be first movers but we definitely take the time to do the research and be very innovative so that when we are coming out with stuff it works and can be really well deployed. So our counter-drone strategy is being able to have certain specific capabilities that are unique but that can also be applied into existing product out there so that we want to be able to use the existing well-established counter-drone companies to be able to be channel partners of ours. Now we've been very fortunate and won the DEVCOM contract in order to build an ultralight, ultramobile counter-drone system for the Department of War. Which is a massive opportunity for us as I mentioned before, hundreds of millions of dollars over the coming years is the potential. And it's certainly on track. There are a couple of partners in there. There's a tether company that's in there that we've partnered with in order to provide some of the unique capabilities of the proposed -- or the system that we did propose. But for the most part the hardcore IP underneath, the tracking system, how everything integrates together, the fact that it's modular, it can use multiple types of effectors whether that be kinetic, soft kinetic, low collateral, RF, whatever the case, is all entirely unique to us. So the short answer is we're developing our counter-drone capabilities. It will have proprietary aspects to it ,but we're certainly not afraid of partnering or purchasing or joint venturing. What we really care about is providing the greatest amount of safety to the people that we serve. And that's the approach that we'll continue to take on that. So do we think anything will come of our attending the NATO summit? The NATO summit was one of the most fascinating experiences. And I've been to NATO summits before. Not invited in at this level for sure and certainly not maybe in times that are as unpredictable as they are right now with the types of budgets that are going into NATO-type countries. We will undoubtedly see more than significant results from this NATO summit and the ongoing NATO participation that we will have and the unique position that Canada presents within NATO as being a North American company but a part of the European Defense Act and really having a leadership position there. So our international business we're very fortunate that we have manufacturing in Canada and the United States and representation in both countries. All the way up to a Board level about 85% plus of our shareholders are U.S. citizens. However because of the domicile of Canada and what that affords us is the ability to have some really nice open doors not just within NATO but also within many Latin American, many Asian, many Eastern Bloc countries. So we see a tremendous amount of opportunity in those markets, and we see very strong support from the Canadian government in order to supply and -- both for geopolitical but also for economic reasons we're getting some great support in that regard. So we'll really start ramping up our capabilities within that regard. So it was a fantastic trip and incredible learning for all of us. Is Canada going to be an important revenue source for us? Can we expect contracts to be announced? The answer to both of those is yes. We never planned in our original business plan that Canada would be an overwhelming like almost even material revenue source for us. And it's really turning out to be quite the opposite. One, the budgets are very significant. It's the 10th or 11th largest economy in the world that's literally deploying tens and tens of billions of dollars over very short periods of time with the best talent that they've got in order to have these capabilities. Some very unique things about Canada is a massive coastline so marine is becoming a specialty for us. Arctic without question is becoming a specialty for us and Canada really wants to position itself as an Arctic expertise. And it is geographically a big part of their responsibility, whether it be NORAD or their own sovereignty. So pleasantly it is. Now that said, I don't want to take away for 1 second our commitment into the United States. We have facilities in Florida. We have additional facilities that will be very large facilities that will be stood up before the end of the year along with personnel to meet the demand that is there. And I know there's that question, well if the demand is there why don't the numbers show it? And it is intricate. The reality is we've just got to have that capacity for when the ball drops. And the ball's dropped and it's dropping. So it's just we're probably maybe 3 or 4 quarters behind some of the other comps out there in terms of the ramp that they saw. However, I think because of some of the international opportunities we've certainly got as large, if not larger, total TAM to be able to provide. And also because we've got a full product suite which we've spent a lot of time building out. Again, being that first mover is not the most important thing to us. Being a complete mover is the most important thing to us. So buyers are becoming much more discerning very quickly. And so, it's over the last number of years of education something that flew could be sold. However, that is not the case anymore. And so, they want to have these integrated systems to provide and execute on integrated missions, whether that's public safety, military or frankly even industrial. So we've seen an impact from Skip Dynamix. Had we seen an impact from the Skip Dynamix acquisition? Yes. The impact certainly isn't on the revenue side but that wasn't the objective. The objective here was the talent both from a pure intellect standpoint, also from an integrity standpoint and also from a contact standpoint. And it was the technology itself. We are thrilled around the thermoplastic technology, which reduces the weight and the cost and the scalability of these things. It's like nothing else I've seen out there. So that is a really, really important aspect of why we -- and so we've seen a big impact and we're going to see very sizable orders because of it. And orders not just in the particular ORCA or Dolphin product lines but also the learnings that are being applied into the other areas of our product line. So what has been the feedback and initial interest in the drone programs from IACLEA? Do we have an idea of what revenue that these partnerships will bring? So the small and also the small rural SRLEEA. Listen that represents 80% of the police forces in the United States. It's just that simple. It's just not something -- we're just trying to be where other people aren't, number one, and aren't thinking are important. Now the use cases in some of those areas are different than pure urban areas but they lend themselves to the type of work that we have traditionally done. Traditionally our drones have been a bit bigger, longer distances, heavier payloads. And when you're in those rural areas that's exactly what you've got to do. So you're going to be looking at situations where a small little Mavic 3 or ISR drone just doesn't fly for 15 minutes. That's not going to get you across a farmer's field, much less across the county. So those are the types of things that we're looking at, and we think it's going to have a very big impact because like I say it's 80% of the police forces out there fit into that category that I wouldn't say we've got locked up, but we got a stranglehold on and hopefully we'll be able to provide the right type of service to continue to earn that position. So as Rolly mentioned, we are available as much as possible and reasonable to answer any questions. We appreciate everybody's time and thank you for the consideration that you've given us today. Before you buy stock in Draganfly, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Draganfly wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,511!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,381,960!* Now, it’s worth noting Stock Advisor’s total average return is 981% — a market-crushing outperformance compared to 216% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 17, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Draganfly (DPRO) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Revenue: $2.664 million, a 26% year-over-year increase from $2.1 million in Q2 2025. Product Sales: $2.5 million in product sales, with the remaining $100,000 from drone services. Gross Profit: $533,100, compared to $504,000 in Q2 2025. Adjusted Gross Margin: 21.7% for Q2 2026, down from 24.3% in the prior year quarter. Total Comprehensive Loss: $11.8 million, compared to a loss of $4.7 million in Q2 2025. Cash Balance: $131.9 million at quarter end, up from $90.2 million at the end of 2025. Working Capital Surplus: $144 million as of June 30, versus $95.2 million at the end of 2025. Shareholder Equity: $148.9 million at quarter end, compared to $96.6 million at the end of last year. Warning! GuruFocus has detected 6 Warning Signs with DPRO. Is DPRO fairly valued? Test your thesis with our free DCF calculator. Release Date: August 10, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record Q2 2026 revenue of $2.664 million, a 26% year-over-year increase, driven by strong product sales. Exclusive partnership with IACLEA to provide drone and counter-drone training and products to 3,000 campus law enforcement agencies, with an immediate pipeline of over 50 campuses. Strategic acquisition of Skip Dynamix brings top-tier FPV expertise and a scalable, low-cost fixed-wing drone (ORCA) positioned for medium- and long-range strike markets. Awarded a DEVCOM contract for an ultra-light counter-drone system, with potential for hundreds of millions in revenue from U.S. and international markets. Strong balance sheet with $131.9 million in cash and minimal debt, providing ample resources to scale operations and meet anticipated demand. Total comprehensive loss widened to $11.8 million in Q2 2026, up from $4.7 million in the prior year, due to increased operating costs. Adjusted gross margin declined to 21.7% from 24.3% year-over-year, reflecting a less favorable product and services mix. Revenue ramp continues to face delays as customers refine specifications, leading to redesigns and slower order fulfillment. The company is still in early stages of rolling out key partnerships (e.g., IACLEA) and expects meaningful revenue contribution only by mid-2027. Increased operating expenses (office, admin, R&D, professional fees) are outpacing revenue growth, pressuring near-term profitability. Q: Could you discuss Draganfly's strategy in the current UAS and counter-UAS market? Is Draganfly developing its own counter-UAS system or do you expect these capabilities to be delivered primarily through strategic partnerships and integrations?A: Cameron Chell (CEO): We are developing our own counter-drone capabilities, leveraging 27 years of drone-building expertise to understand vulnerabilities. We have purposely avoided being first to market due to the fast-changing nature of the space. Our strategy involves creating unique, proprietary capabilities that can integrate with existing products, allowing established counter-drone companies to act as channel partners. The recent DEVCOM contract for an ultralight, ultramobile system is a massive opportunity, with the core IP, tracking system, and modular effectors being entirely unique to us, though we remain open to partnerships and acquisitions. Q: Do we think anything will come of our attending the NATO summit?A: Cameron Chell (CEO): The NATO summit was a fascinating and productive experience, providing direct contact with multiple world leaders on procurement cycles and long-term industrial strategy. We will undoubtedly see significant results from this participation. Our Canadian domicile affords us unique access to NATO, Latin American, Asian, and Eastern Bloc markets, and we see strong support from the Canadian government to supply these regions. We are ramping up our capabilities to capitalize on these international opportunities. Q: Is Canada going to be an important revenue source for us? Can we expect contracts to be announced?A: Cameron Chell (CEO): Yes to both. Canada has become a much more significant revenue source than originally planned, with massive budgets being deployed. Marine and Arctic capabilities are becoming specialties for us, as Canada positions itself as an Arctic expert. However, this does not diminish our commitment to the US market, where we are standing up large facilities to meet demand. We are likely three or four quarters behind some competitors in revenue ramp, but our international opportunities and full product suite provide an equally large, if not larger, total addressable market. Q: Have we seen an impact from the Skip Dynamix acquisition?A: Cameron Chell (CEO): Yes, the impact is significant, though not yet on the revenue side. The objective was to acquire top-tier talent, technology, and government contacts. We are thrilled with the thermoplastic technology, which reduces weight, cost, and enhances scalability. This will lead to very sizable orders, not just for the ORCA and Dolphin product lines, but also by applying learnings across our entire product suite. Q: What has been the feedback and initial interest in the drone programs from IACLEA? Do we have an idea of what revenue these partnerships will bring?A: Cameron Chell (CEO): The IACLEA partnership, covering 3,000 campuses, and the subsequent Small and Rural Association (SRLEEA) deal, representing 80% of US police forces, are strategically important. We are targeting areas where competitors like Skydio and Axon are not focused. Our larger, longer-range drones are better suited for rural use cases. We are rolling out the first three campuses next quarter to refine operations before scaling up, with a measured approach to ensure a strong reference base before opening the full pipeline. Q: Can you provide more detail on the financial results for the second quarter?A: Paul Sun (CFO): Revenue was $2.664 million, a 26% year-over-year increase, with product sales of $2.6 million. Gross profit was $533,100, or $576,800 adjusted for a one-time noncash inventory write-down. Adjusted gross margin was 21.7%, down from 24.3% last year due to product mix. Total comprehensive loss was $11.8 million, up from $4.7 million, primarily due to higher operating costs as the company scales. Cash balance remains strong at $131.9 million. Q: What is the significance of the DEVCOM counter-drone contract award?A: Cameron Chell (CEO): Winning the DEVCOM contract to develop an ultra-light, ultra-mobile counter-drone system is a major validation of our capabilities. The system includes a tethered drone, kinetic or RF effectors, and sophisticated tracking software. We believe this contract translates into hundreds of millions of dollars in potential revenue over the coming years, not just from the US Department of War but also from international markets. Q: Can you elaborate on the new camera line launched in partnership with Blitz?A: Cameron Chell (CEO): We launched a new line of hybrid military/commercial cameras with Blitz. These cameras feature superior optics and durability compared to typical dual-use cameras. This partnership addresses the trend of rising quality standards in defense, which has caused some delays in revenue ramp as specifications are refined. The camera system is unique to Draganfly, fits on all our models and others, and launches us into the optics business. Q: What is the strategy behind the partnership with ACSL for Japanese drones?A: Cameron Chell (CEO): We partnered with ACSL to bring NDAA-compliant Japanese drones into the Canadian and US markets. Rather than developing a "me-too" product, we integrated our interchangeable camera system onto the ACSL platform, creating a strategic differentiator. This allows us to offer a popular-sized drone in our mix without diverting resources from our core modular and integrated product line, which spans from squad to brigade level. Q: What is the significance of the ORCA fixed-wing drone and the Skip Dynamix technology?A: Cameron Chell (CEO): The ORCA is the beginning of our fixed-wing line, targeting the medium- and long-range strike market, which we see as the biggest demand signal over the next few years. The Skip Dynamix founders, who designed original FPVs for the Marines, bring expertise in thermoplastic construction, allowing for mass production at very low cost. This positions us for the 100-nautical-mile Lucas program and future naval or Pacific theater engagements where distance and scalability are critical. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved record Q2 revenue of $2.664 million, a 26% year-over-year increase, driven by a pragmatic approach to product development and pipeline management. Secured an exclusive partnership with IACLEA to provide drone training and products to 3,000 campuses, leveraging subject matter expertise to capture a niche market underserved by larger competitors. Acquired Skip Dynamix to integrate specialized Navy-grade engineering talent and thermoplastic manufacturing technology, enabling mass production of low-cost, high-performance fixed-wing drones. Adopted a deliberate 'complete mover' strategy rather than a 'first mover' approach, focusing on a fully integrated product line across six drone sets to meet complex mission requirements. Targeted the rural law enforcement market, which represents 80% of U.S. police forces, to avoid direct competition with well-funded urban-focused rivals while serving specific long-range operational needs. Partnered with ACSL to bring NDAA-compliant Japanese drones to North America, utilizing an interchangeable camera system to differentiate a typically low-margin product category. Attributed a delay in revenue ramp to evolving customer specifications and qualifications, requiring on-the-fly refinements to optics and hardware systems to meet higher defense standards. Anticipates a significant revenue bulge by the end of the year due to massive procurement cycles expected from the Canadian government and NATO-aligned countries. Plans a measured rollout for the campus security program, starting with three pilot campuses per quarter to refine operational protocols before a full-scale launch in Q2 2027. Expects the DEVCOM counter-drone contract to potentially translate into hundreds of millions of dollars in revenue across U.S. and international markets over the coming years. Draganfly intends to expand its product portfolio into the medium- and long-range strike drone markets to address increasing demand, utilizing expertise and technology acquired from Skip Dynamix. Scheduled to stand up large-scale manufacturing facilities and additional personnel in the United States by the end of the year to meet increasing demand signals. Reported a total comprehensive loss of $11.8 million, primarily driven by scaling costs including R&D, professional fees, and share-based compensation. Recorded a one-time non-cash inventory write-down of $43,700, which slightly impacted the reported gross margin of 20%. Maintained a strong liquidity position with $131.9 million in cash following a significant financing round in February 2026. Noted that while international opportunities are expanding, the company remains 3 to 4 quarters behind competitors in terms of the initial revenue ramp-up phase. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management is developing proprietary counter-drone IP, specifically in tracking and modular integration, rather than rushing to be first to market in a fast-changing tactical environment. The strategy involves partnering with established counter-drone firms as channel partners while fulfilling the DEVCOM contract for ultra-mobile systems. The CEO expects significant results from recent high-level NATO engagements, positioning Draganfly as a key North American supplier within the European Defense Act framework. Canada's role in NATO is opening doors in Asian, Latin American, and Eastern Bloc markets for both geopolitical and economic reasons. The acquisition provides unique thermoplastic technology that reduces drone weight and cost while allowing for mass production of tens of thousands of units per month. The talent brought in includes experts who designed original FPV protocols for the U.S. Marines, which is now being applied across the entire product line.

Ondas Inc. ONDS will release results for the second quarter of 2026 on Aug 13. ONDS’ earnings missed the Zacks Consensus Estimate in the last quarter. Its earnings have missed estimates in three of the four trailing quarters, while beating once, with an average negative surprise of 210.68%. Image Source: Zacks Investment Research Let us see how ONDS is expected to fare in terms of revenues and earnings this time. The Zacks Consensus Estimate for the second-quarter bottom line is a loss of 7 cents, unchanged in the past 30 days. The same for revenues stands at $66.7 million, indicating a 963.5% jump from the year-ago actual. The company’s top line is driven by strong business momentum in its Ondas Autonomous Systems (“OAS”) division. Robust M&A activity is a key factor underpinning rapid OAS scaling. Our proven model does not predict an earnings beat for Ondas this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here. Ondas Holdings Inc. price-consensus-eps-surprise-chart | Ondas Holdings Inc. Quote ONDS currently has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here. Ondas entered the second quarter with significant momentum in the OAS. The company reported first-quarter revenues of $50.1 million, up more than 10X year over year, driven by robust demand across counter-drone (Cyber-over-RF platform and Iron Drone interceptor systems), Intelligence, Surveillance, Reconnaissance, or ISR, and other defense-related solutions. The demand is likely to have remained strong amid simmering geopolitical tensions across the globe. This is likely to have cushioned the second quarter performance. ONDS’ active deployment spans more than 45 countries across defense, homeland security, public safety markets and critical infrastructure. Ondas, through rapid M&A, has built a multi-domain autonomy platform spanning ISR, c-UAS, loitering munitions/strike systems, unmanned ground vehicles and stratospheric sensing via World View acquisition. The Mistral acquisition has positioned it to compete more effectively for large-scale, multi-year government contracts. Mistral is a prime contractor on U.S. Army and USSOCOM uncrewed and autonomous platforms procurement vehicles. It brings U.S.-based manufacturing, assembly, integration and quality assurance capabilities to Ondas’ operations, supporting program execution and compliance with the country’s defense sourcing requirements. This expanding reach is complemented by a rapidly growing opportunity set, including a $4.3 billion active pipeline and more than $1.6 billion in strategic program potential, as highlighted by management on the last earnings call. It is advancing in other markets such as Israel. The company is also targeting large-scale defense initiatives such as the LASSO program, which alone represents a potential opportunity nearing $1 billion. Further, on July 22, management noted that the company had secured $70 million in new orders across its defense, security and autonomous technology portfolio over the past four weeks.  As of June 22, 2026, Ondas noted that second-quarter-to-date order activity stood at more than $150 million. Ondas Holdings Inc. revenue-quarterly | Ondas Holdings Inc. Quote On the last earnings call, the company raised its 2026 revenue outlook to at least $390 million, citing a backlog exceeding $450 million. However, with multiple acquisitions announced, such as Omsnisys, Cyberhawk and DZYNE, the growth narrative has become increasingly acquisition-led. Following the DZYNE acquisition (July 2026), Ondas now expects 2026 revenues of at least $525 million, up from the previous forecast of $390 million. DZYNE is expected to contribute approximately $191 million in revenues in 2026 and $300 million in 2027. That said, execution risks remain significant.  So many acquisitions in such a short period can create integration overload and execution risks, as achieving targets depends on timely integration and conversion of backlog into revenues. Even if a single large customer delays, reduces or cancels, revenues would decline materially. Profitability remains concerning despite sharp revenue growth. Ondas faces rising operating costs as it invests in personnel and infrastructure capabilities to capture additional market opportunities. Amid rising costs, management expects adjusted EBITDA losses to have stayed elevated in the second quarter of 2026, likely marking the peak loss period. Beyond that, ONDS expects improvement throughout the year, driven by higher revenues, gross profit and operational scale. Ondas also faces enormous competitive pressure. Players such as Red Cat Holdings RCAT, Kratos Defense & Security Solutions KTOS and Draganfly DPRO are also vying to capture a larger share. ONDS’ shares have inched up 3.8% in the past six months, underperforming the Wireless-National industry’s growth of 86.6%. The S&P 500 composite and the Zacks Computer and Technology sector are up 13.5% and 20.4%, respectively, over the same time frame. Image Source: Zacks Investment Research RCAT, KTOS and DPRO have lost 11.1%, 28.3% and 30.4%, respectively, over the same time frame ONDS stock is trading at a forward 12-month price-to-sales of 6.38X compared with the industry’s 7.82X. Image Source: Zacks Investment Research In comparison, RCAT, KTOS and DPRO trade at multiples of 6.41X, 5.75X and 0.7X, respectively. Ondas is seeing strong structural tailwinds driven by defense demand and an increasingly differentiated multi-domain platform. While acquisitions strengthen the long-term growth narrative, near-term performance will hinge on integration and the company’s ability to convert its expanding opportunity set into consistent financial performance. Investors already holding can remain invested, but new investors would be better off waiting for a more attractive entry point. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ondas Holdings Inc. (ONDS) : Free Stock Analysis Report Kratos Defense & Security Solutions, Inc. (KTOS) : Free Stock Analysis Report Red Cat Holdings, Inc. (RCAT) : Free Stock Analysis Report Draganfly Inc. (DPRO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Draganfly Inc. DPRO used its second-quarter 2026 earnings call to frame the central issue for investors: demand is expanding across defense and public safety, but procurement cycles and customer specifications continue to delay the revenue ramp-up. President, CEO and executive chairman of the board Cameron Chell emphasized capacity, fixed-wing and counter-UAS capabilities and Canadian defense spending, while CFO Paul Sun detailed a larger cost base as the company scales. CEO Chell said changing specifications and qualification requirements are delaying revenue conversion. Large orders can require product redesigns before deployment. He said DPRO is keeping procurement measured to meet expected demand. In the Q&A, Chell said the company is about three or four quarters behind some peers in the revenue ramp-up. The company reported a quarterly loss of $0.24 per share, wider than the consensus mark of a loss of $0.11. Second-quarter revenues of $1.93 million rose year over year but missed the consensus estimate of $3.3 million. CFO Sun attributed higher costs to office and administrative spending, R&D, share-based compensation, professional fees, travel and wages. Draganfly Inc. price-consensus-eps-surprise-chart | Draganfly Inc. Quote CEO Chell said Canada has moved from a limited assumption in Draganfly's original business plan to an important expected revenue source as procurement activity expands. He expects significant Canadian procurement by the end of 2026. During the pre-submitted Q&A, Chell also said investors should expect contract announcements, with marine and Arctic applications in focus. Chell stressed that the United States remains a core market. Draganfly plans to stand up additional U.S. facilities and personnel before year-end to support demand. Chell positioned the Skip Dynamix acquisition as a talent and technology transaction rather than a near-term revenue deal. He highlighted the team's fixed-wing expertise and thermoplastic manufacturing approach. He said the ORCA platform targets a 100-nautical-mile program and DPRO is among the final few contenders. Chell also described the aircraft as suitable for intelligence, surveillance and reconnaissance missions. Chell said the thermoplastic design supports high-volume production at four-figure unit costs. Separately, the Flex FPV system was selected by two additional U.S. defense units, which he identified as Special Forces units. Chell emphasized proprietary capability alongside partnerships in counter-UAS. He said Draganfly is developing the tracking, integration and modular architecture while remaining open to outside effectors and partners. The company won a DEVCOM contract to develop an ultralight, ultramobile counter-drone system. Chell said the design can support multiple effectors, including kinetic and radio-frequency options. Chell said he believes the program could translate into hundreds of millions of dollars of revenues over the coming years in U.S. and international markets. He also said the project remains on track. Chell described IACLEA as a 3,000-campus association and said Draganfly has an immediate pipeline of more than 50 campuses. The program combines drone and counter-drone training with products. He said Draganfly plans to roll out the first three campuses next quarter, assess those deployments and then add another three. Chell targeted a broader rollout for the second quarter of next year. Draganfly also signed a small and rural law-enforcement association. Chell said roughly 80% of U.S. police forces fall into the small and rural category, where longer-range platforms and heavier payloads fit the company's capabilities. Chell framed Draganfly's strategy around being a complete supplier rather than a first mover. He said buyers are becoming more discerning and increasingly want integrated systems able to execute multiple mission types. CFO Sun reported $131,908,197 of cash at quarter-end and minimal debt. That balance sheet position sits alongside a comprehensive loss of $11,831,664 as the company spends to expand capabilities and capacity. Management's closing posture centered on staged rollouts, production readiness and a broader product suite, with execution timing remaining the bridge between current spending and the opportunities discussed on the call. DPRO carries a Zacks Rank #3 (Hold), with a Value Score of D and Growth, Momentum and VGM Scores of F. In the Style Scores framework, lower letter grades are less favorable than A or B scores. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The combination does not match the framework's preferred profile of a Zacks Rank #1 or #2 (Buy) paired with A or B Style Scores. The Zacks Rank can change as earnings estimates are revised following the just-reported results, so the current rating is a point-in-time signal. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Draganfly Inc. (DPRO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Draganfly Inc.? Here are five stocks we like better. Q2 revenue rose 26% year over year to CAD 2.7 million, driven primarily by product sales, while adjusted gross margin declined to 21.7% because of product and service mix. The company’s comprehensive loss widened to CAD 11.8 million amid higher operating expenses. Draganfly ended June with CAD 131.9 million in cash and minimal debt, supported by its February financing. Sequentially, revenue increased 15.2% and adjusted gross margin improved from 19.6% to 21.7%. The company is expanding its public-safety and defense pipeline through an IACLEA campus program, rural-agency initiatives, a DEVCOM counter-drone contract, and the Skip Dynamix acquisition. Management also highlighted partnerships and products aimed at military, government and international markets, while noting that related revenue opportunities remain forward-looking. The Arms Race Has Gone Airborne: What Investors Need to Know 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. → MarketBeat Week in Review – 08/03 - 08/07 Draganfly’s CEO Says Drones Are Becoming Intelligence Platforms—Not Just Hardware Draganfly’s total comprehensive loss widened to CAD 11.8 million from CAD 4.7 million in the prior-year quarter. Sun said the increase primarily reflected higher office and administrative costs, research and development spending, share-based compensation, professional fees, travel and wages. The quarterly result also included an CAD 8,900 fair-value loss related to a derivative liability from a February 2024 financing. 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. → Quantum Earnings Week: Winners and Losers Are Finally Emerging MarketBeat Week in Review – 02/09 - 02/13 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. → Take-Two’s Q1 Results Leave GTA 6 Bulls Stuck in the Fog of War 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. 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. 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. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Draganfly Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Vancouver, BC., Aug. 10, 2026 (GLOBE NEWSWIRE) -- Draganfly Inc. (NASDAQ: DPRO) (CSE: DPRO) (FSE: 3U8) (“Draganfly” or the “Company”), an award-winning, industry-leading drone solutions and systems developer, is pleased to announce its second quarter financial results. Key Financial and Operational Highlights for Q2 2026: Revenue for the second quarter of 2026 was $2,664,237 which represents a 26.0% year over year increase. Product sales of $2,560,378 were up 34.6% over the same period last year. Gross profit for Q2 2026 was $533,149, up 5.7% from $504,592 for the same period last year. Gross margin percentage for Q2 2026 was 20.0% compared to 23.9% in Q2 2025. Gross profit would have been $576,811 and gross margin would have been 21.7%, not including a one-time non-cash write down of inventory of $43,662. The decrease is due to the sales mix of the products sold. The comprehensive loss for the period of $11,831,664 includes non-cash changes comprised of a negative change in fair value derivative of $8,931, a write down of inventory of $43,662, and a one time share based compensation grant of $3,736,959 and would otherwise be a comprehensive loss of $8,042,112 compared to an adjusted comprehensive loss of $4,567,128 for the same period last year. Contributors to the year-over-year increase are increased office and miscellaneous, travel, research and development, employee and management costs. Cash balance on June 30, 2026, of $131,908,197 compared to $90,156,821 on December 31, 2025. Cameron Chell, Draganfly’s Chief Executive Officer, appeared before the Canadian Senate’s Standing Committee on National Security, Defence and Veterans Affairs to discuss the strategic importance of strengthening Canada’s domestic drone manufacturing capabilities and sovereign defense technology supply chain. The Company entered into an exclusive distribution and development agreement with ACSL, the largest Japanese drone market, to introduce its NDAA-compliant, Japanese-manufactured drone systems to the Canadian market. The agreement expands Draganfly’s portfolio of secure, NDAA-compliant drone solutions for government, public safety and commercial customers. Draganfly’s Flex FPV system was selected by two additional U.S. Department of War units, further demonstrating demand for the Company’s modular and rapidly deployable drone technology. The selections broaden Draganfly’s engagement with U.S. defense customers and support the continued adoption of its FPV systems. Launched Draganfly Blitz™, a new line of advanced, NDAA-compliant optical payloads designed for defense, public safety and critical infrastructure applications. The product line expands Draganfly’s integrated payload capabilities and positions the Company to address growing demand for secure, high-performance imaging systems. Draganfly and F4 Defense International were selected by the U.S. Department of War to develop an integrated, multi-layered and rapidly deployable counter-UAS system. The platform combines aerial intelligence, advanced targeting and coordinated ground- and air-based capabilities to detect and defeat emerging drone threats. The Company completed its acquisition of Skip Dynamix’s fixed-wing drone technology, intellectual property and infrastructure. The acquisition adds long-range fixed-wing capabilities to Draganfly’s technology portfolio and strengthens its ability to deliver integrated systems for defense, government and commercial customers. Draganfly and the International Association of Campus Law Enforcement Administrators (IACLEA) launched a national Campus Drone Implementation and Readiness Program for colleges and universities across the United States. The program is designed to help campus public safety agencies evaluate, implement and responsibly operate drone programs for emergency response, security and situational awareness. Draganfly will hold a shareholder update and earnings call on August 10, 2026 at 2:30 p.m. PDT / 5:30 p.m. EDT.Registration for the call can be done Here Selected financial information is outlined below and should be read with Draganfly’s consolidated financial statements for the quarter ended June 30, 2026, and associated management discussion and analysis, which will be available under the Company's profile on SEDAR+ at www.sedarplus.ca and filed on EDGAR at www.sec.gov. (1) Gross Profit (as a % of revenues) would have been 21.7% and 24.3% not including a non-cash write down of inventory of $43,662 and $10,421 respectively for the three-month period ending June 30, 2026 and 2025. Gross Profit (as a % of revenues) would have been 20.7% and 21.5% not including a non-cash write down of inventory of $149,503 and non-cash recovery of write down of inventory of $(28,246) respectively for the six-month period ending June 30, 2026 and 2025. Shareholders’ equity and working capital as at June 30, 2026, includes a fair value of derivative liability of $338,032 (2025 - $2,220,610) and would otherwise be $149,208,192 (2025 - $25,206,141) and $144,428,063 (2025 - $24,605,039), respectively. (1) Included in other income (expense). (2) Cost of goods sold includes a non-cash inventory write down in Q2 2026 of $43,662, in Q1 2026 of $105,840, and in Q2 2025 of 10,421 and would have been $2,087,426 in Q2 2026, $1,858,752 in Q1 2026, and 1,600,242 in Q2 2025. (3) Gross profit would have been $576,811 in Q2 2026, $453,601 in Q1 2026, and $515,013 in Q2 2025. About Draganfly Draganfly Inc. (NASDAQ: DPRO; CSE: DPRO; FSE: 3U8) is a leader in cutting-edge drone solutions and software that are transforming industries and serving stakeholders globally. Recognized for innovation and excellence for over 25 years, Draganfly delivers award-winning technology to the public safety, civil, military, agriculture, industrial inspection, security, mapping, and surveying markets. The Company is driven by passion, ingenuity, and a mission to provide efficient solutions and first-class services to customers worldwide, saving time, money, and lives. CSE NASDAQ FRANKFURT Media ContactErika RacicotEmail: [email protected] Company ContactCameron ChellChief Executive Officer(306) [email protected] Note Regarding Non-GAAP Measures In this press release we describe certain income and expense items that are unusual or non-recurring. There are terms not defined by International Financial Reporting Standards (IFRS). Our usage of these terms may vary from the usage adopted by other companies. Specifically, gross profit and gross margin are undefined terms by IFRS that may be referenced herein. We provide this detail so that readers have a better understanding of the significant events and transactions that have had an impact on our results. Throughout this release, reference is made to “gross profit,” and “gross margin,” which are non-IFRS measures. Management believes that gross profit, defined as revenue less operating expenses, is a useful supplemental measure of operations. Gross profit helps provide an understanding on the level of costs needed to create revenue. Gross margin illustrates the gross profit as a percentage of revenue. Readers are cautioned that these non-IFRS measures may not be comparable to similar measures used by other companies. Readers are also cautioned not to view these non-IFRS financial measures as an alternative to financial measures calculated in accordance with International Financial Reporting Standards (“IFRS”). For more information with respect to financial measures which have not been defined by GAAP, including reconciliations to the closest comparable GAAP measure, see the "Non-GAAP Measures and Additional GAAP Measures"‎ section of the Company’s most recent MD&A which is available on SEDAR. Forward-Looking Statements This release contains certain “forward looking statements” and certain “forward-looking information” as ‎defined under applicable Canadian and U.S. securities laws. Forward-looking statements and information can ‎generally be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, ‎‎“estimate”, “anticipate”, “believe”, “continue”, “plans” or similar terminology. Forward-looking statements in this news release ‎‎‎‎include, but are not ‎‎‎‎limited to: statements in respect of Draganfly’s partnerships, capabilities, expertise, and financial condition; that the Company will be positioned to address growing demand for secure high-performance imaging systems; that Draganfly and F4 Defense International will develop a counter-UAS system and the characteristics of such system; that the Campus Drone Implementation and Readiness Program will help campus public safety agencies as expected. Forward-looking statements ‎and information are based on forecasts of future results, estimates of amounts not yet determinable and ‎assumptions that, while believed by management to be reasonable, are inherently subject to significant ‎business, economic and competitive uncertainties and contingencies. Forward-looking statements and ‎information are subject to various known and unknown risks and uncertainties, many of which are beyond ‎the ability of the Company to control or predict, that may cause the Company’s actual results, ‎performance or achievements to be materially different from those expressed or implied thereby, and are ‎developed based on assumptions about such risks, uncertainties and other factors set out herein, ‎including but not limited to: the successful integration of technology, the inherent risks involved in ‎the general securities markets; uncertainties relating to the availability and costs of financing needed in ‎the future; the inherent uncertainty of cost estimates and the potential for unexpected costs and ‎expenses, currency fluctuations; regulatory restrictions, liability, competition, loss of key employees and ‎other related risks and uncertainties disclosed under the heading “Risk Factors“ in the Company’s most ‎recent filings filed with securities regulators in Canada on the SEDAR+ website at www.sedarplus.ca and with the U.S. ‎‎Securities and ‎Exchange Commission on the EDGAR website at www.sec.gov. The ‎Company undertakes no obligation to update forward-looking information except as required by ‎applicable law. Such forward-looking information represents managements’ best judgment based on ‎information currently available. No forward-looking statement can be guaranteed and actual future results ‎may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking ‎statements or information.

This article first appeared on GuruFocus. Release Date: May 11, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Draganfly Inc (NASDAQ:DPRO) reported a 49% year-over-year increase in revenue for Q1 2026, reaching $2.3 million. The company secured significant sales in the military vertical, including orders from the U.S. Army and strategic international military orders. Draganfly Inc (NASDAQ:DPRO) closed a $50 million U.S. financing deal, elevating its market position from micro-cap to small/mid-cap. The company has a strong cash balance of $147 million as of March 31, 2026, indicating financial stability. Draganfly Inc (NASDAQ:DPRO) announced strategic defense partnerships in the Asia-Pacific region and with Prime Global Ordnance, enhancing its global presence. The company reported a total comprehensive loss of $5.7 million for Q1 2026, an increase from the $3.4 million loss in the same period last year. Higher office, travel, and wage costs contributed to the increased loss year-over-year. Despite significant cash reserves, the company faces potential dilution concerns if further financing is required for M&A or large orders. Revenue from Ukraine remains nominal, with no significant impact on current financials. The stock is perceived as undervalued compared to peers, reflecting a gap in investor confidence despite strong cash reserves and strategic positioning. Warning! GuruFocus has detected 5 Warning Signs with DPRO. Is DPRO fairly valued? Test your thesis with our free DCF calculator. Q: Are you gaining traction with the Canadian government military for orders? I was hoping something would have been announced after the end of March budget cycle. Can you comment? A: We are deeply engaged at every level of the Canadian Armed Forces and Department of National Defense. We are participating in several significant programs and are well-positioned in all of them. We have exclusive demonstrations scheduled at the upcoming CANSEC conference, and we believe we are meeting the challenges effectively. Q: Are you going to participate in Drone Dominance Gauntlet 2? A: Yes, we participated in Drone Dominance Gauntlet 1 and were down-selected, narrowly missing the final grade. We are excited about Gauntlet 2 and believe our operational experience, particularly in Ukraine, positions us well for this opportunity. Q: We seem well cashed up, but I'm afraid of further dilution. Do you expect further raises or can you be specific on what scenarios you would go back to market? A: Further raises would primarily be for M&A scenarios or massive orders. We have meaningful M&A ongoing, and some announcements are expected soon. The decision to go back to market will depend on market conditions and the accretive nature of potential acquisitions. Q: What revenues are you currently getting from Ukraine? A: Revenue from Ukraine is nominal. However, we expect meaningful contributions from equipment purchases sponsored by other countries on behalf of Ukraine. This is not built into our current consensus for the year, but we are confident in hitting our consensus based on existing orders and contracts. Q: Can you help investors understand why the market is undervaluing Dragonfly compared to other drone companies? A: We believe this represents a buying opportunity. Our strategy focuses on long-term sustainability and understanding future operational concepts. While we may be lagging in the current cycle, our approach is not to chase quarterly results but to build a dominant position in the market. We are confident that our revenue will catch up and surpass others in due time. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Vancouver, BC., May 11, 2026 (GLOBE NEWSWIRE) -- Draganfly Inc. (NASDAQ: DPRO) (CSE: DPRO) (FSE: 3U8) (“Draganfly” or the “Company”), an award-winning, industry-leading drone solutions and systems developer, is pleased to announce its first quarter financial results. Key Financial and Operational Highlights for Q1 2026: Revenue for the first quarter of 2026 was $2,312,353 which represents a 49.4% year over year increase. Product sales of $2,232,132 were up 44.8% over the same period last year. Gross profit for Q1 2026 was $347,761, up 12.1% from $310,088 for the same period last year. Gross margin percentage for Q1 2026 was 15.0% compared to 20.0% in Q1 2025. Gross profit would have been $453,601 and gross margin would have been 19.6%, not including a one-time non-cash write down of inventory of $105,840. The decrease is due to the sales mix of the products sold. The comprehensive loss for the period of $5,711,284 includes non-cash changes comprised of a positive change in fair value derivative of $1,047,731, a write down of inventory of $105,840, and a share issuance cost of $2,412,431 related to a derivative liability from the February financing and its treatment on the income statement against the balance sheet, and would otherwise be a comprehensive loss of $4,240,744 compared to an adjusted comprehensive loss of $3,656,159 for the same period last year. Contributors to the year-over-year increase are increased office and miscellaneous, employee and management costs, and travel. Cash balance on March 31, 2026, of $147,339,721 compared to $90,156,821 on December 31, 2025. Draganfly announced the deployment of its drone platforms with Search and Rescue Sweden, integrated with Smith Myers ARTEMIS mobile phone detection and location systems for search-and-rescue operations. The deployment supports missing-person recovery, wilderness rescue, police support, and other public-safety missions, while validating Draganfly’s Apex and Commander 3XL platforms for demanding operational environments. Cameron Chell, Chief Executive Officer of the Company since August 2019, was appointed Executive Chairman of the Board. Draganfly announced an award to provide Flex FPV drones and training to U.S. Air Force Special Operations Command units in partnership with DelMar Aerospace. The program includes FPV assembly, repair, flight operations, advanced mission planning, and execution training at DelMar Aerospace’s Camp Pendleton UAS range training facility. Draganfly announced its participation in the Canadian Army’s first Collaborative Uncrewed Aircraft Systems Working Group in support of the Government of Canada’s newly announced Defence Industrial Strategy. The Company’s participation aligns with Canada’s focus on strengthening sovereign defence capabilities, domestic production, and advanced uncrewed and autonomous aerial systems. Draganfly announced the appointment of Lieutenant-General (Ret’d) Michel Gauthier to its Military Advisory Board, adding more than 36 years of Canadian Armed Forces leadership experience. His appointment supports Draganfly’s growing engagement with defence and government markets as Canada advances its renewed Defence Industrial Strategy. Draganfly completed an exclusive Canadian Armed Forces capabilities demonstration at Area XO in Ottawa, Ontario, following its participation in the Canadian Army’s MINERVA Uncrewed Aircraft Systems working group. The Company showcased multiple unmanned aerial systems and mission capabilities, including Commander 3XL, Overwatch, Apex ISR, and FPV tactical drone systems, despite challenging winter conditions. Draganfly and Palladyne AI announced the successful completion of a key integration milestone, testing Palladyne AI’s SwarmOS platform across Draganfly’s mission-ready drone components and validating the system through flight simulation. The milestone advances the companies’ work toward decentralized, autonomous swarm capabilities for defense applications in dynamic and contested environments. Draganfly will hold a shareholder update and earnings call on May 11, 2026 at 2:30 p.m. PDT / 5:30 p.m. EDT. Registration for the call can be done Here Selected financial information is outlined below and should be read with Draganfly’s consolidated financial statements for the quarter ended March 31, 2026, and associated management discussion and analysis, which will be available under the Company's profile on SEDAR+ at www.sedarplus.ca and filed on EDGAR at www.sec.gov. (1) Gross Profit (as a % of revenues) would have been 19.6% and 17.5% not including a non-cash write down of inventory of $105,840 and a non-cash recovery of a write down of inventory of $38,666 for the three month period ending March 31, 2026, and 2025, respectively. Shareholders’ equity and working capital as at March 31, 2026, includes a fair value of derivative liability of $329,101 (2025 - $492,470) and would otherwise be $156,111,541 (2025 - $97,089,265) and $154,685,041 (2025 - $95,734,797), respectively. (1) Included in other income (expense). (2) Cost of goods sold includes a non-cash inventory write down in Q1 2026 of $105,840, a non-cash inventory write down of $244,000 in Q4 2025, and a recovery of a write down of inventory of $38,666 in Q1 20225 and would have been $1,858,752 in Q1 2026, $1,582,490 in Q4 2025, and $1,276,293 in Q1 2025. (3) Gross profit would have been $453,601 in Q1 2026, $329,709 in Q4 2025, and $271,422 in Q1 2025 without these write downs in 2 above. About Draganfly Draganfly Inc. (NASDAQ: DPRO; CSE: DPRO; FSE: 3U8) is a leader in cutting-edge drone solutions and software that are transforming industries and serving stakeholders globally. Recognized for innovation and excellence for over 25 years, Draganfly delivers award-winning technology to the public safety, civil, military, agriculture, industrial inspection, security, mapping, and surveying markets. The Company is driven by passion, ingenuity, and a mission to provide efficient solutions and first-class services to customers worldwide, saving time, money, and lives. CSE NASDAQ FRANKFURT Media Contact Erika Racicot Email: [email protected] Company Contact Cameron Chell Chief Executive Officer (306) 955-9907 [email protected] Note Regarding Non-GAAP Measures In this press release we describe certain income and expense items that are unusual or non-recurring. There are terms not defined by International Financial Reporting Standards (IFRS). Our usage of these terms may vary from the usage adopted by other companies. Specifically, gross profit and gross margin are undefined terms by IFRS that may be referenced herein. We provide this detail so that readers have a better understanding of the significant events and transactions that have had an impact on our results. Throughout this release, reference is made to “gross profit,” and “gross margin,” which are non-IFRS measures. Management believes that gross profit, defined as revenue less operating expenses, is a useful supplemental measure of operations. Gross profit helps provide an understanding on the level of costs needed to create revenue. Gross margin illustrates the gross profit as a percentage of revenue. Readers are cautioned that these non-IFRS measures may not be comparable to similar measures used by other companies. Readers are also cautioned not to view these non-IFRS financial measures as an alternative to financial measures calculated in accordance with International Financial Reporting Standards (“IFRS”). For more information with respect to financial measures which have not been defined by GAAP, including reconciliations to the closest comparable GAAP measure, see the "Non-GAAP Measures and Additional GAAP Measures"‎ section of the Company’s most recent MD&A which is available on SEDAR. Forward-Looking Statements This release contains certain “forward looking statements” and certain “forward-looking information” as ‎defined under applicable Canadian and U.S. securities laws. Forward-looking statements and information can ‎generally be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, ‎‎“estimate”, “anticipate”, “believe”, “continue”, “plans” or similar terminology. Forward-looking statements ‎and information are based on forecasts of future results, estimates of amounts not yet determinable and ‎assumptions that, while believed by management to be reasonable, are inherently subject to significant ‎business, economic and competitive uncertainties and contingencies. Forward-looking statements and ‎information are subject to various known and unknown risks and uncertainties, many of which are beyond ‎the ability of the Company to control or predict, that may cause the Company’s actual results, ‎performance or achievements to be materially different from those expressed or implied thereby, and are ‎developed based on assumptions about such risks, uncertainties and other factors set out herein, ‎including but not limited to: ‎ statements in respect of Draganfly’s partnerships, capabilities, expertise, and financial condition; the successful integration of technology, the inherent risks involved in ‎the general securities markets; uncertainties relating to the availability and costs of financing needed in ‎the future; the inherent uncertainty of cost estimates and the potential for unexpected costs and ‎expenses, currency fluctuations; regulatory restrictions, liability, competition, loss of key employees and ‎other related risks and uncertainties disclosed under the heading “Risk Factors“ in the Company’s most ‎recent filings filed with securities regulators in Canada on the SEDAR+ website at www.sedarplus.ca and with the U.S. ‎‎Securities and ‎Exchange Commission on the EDGAR website at www.sec.gov. The ‎Company undertakes no obligation to update forward-looking information except as required by ‎applicable law. Such forward-looking information represents managements’ best judgment based on ‎information currently available. No forward-looking statement can be guaranteed and actual future results ‎may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking ‎statements or information.