Here are 1-3 brief analogies for Draganfly (DPRO):

• The DJI for enterprise and public safety.
• The Axon of the drone industry.
• A Trimble for drone technology and aerial data.

• Unmanned Aerial Vehicles (UAVs)/Drones: A range of customizable drone hardware platforms designed for diverse commercial and public safety applications.
• Drone Payload Systems: Specialized interchangeable camera systems and sensors (e.g., thermal, optical, multispectral) that integrate with their drones to collect specific types of data.
• Flight and Data Management Software: Proprietary software solutions for controlling drone operations, planning missions, processing collected data, and generating actionable insights.
• Integrated Drone Solutions: Bundled drone systems, software, and services tailored for specific industry applications such as public safety, agriculture, industrial inspection, and medical delivery.

Draganfly (DPRO) Major Customers

• Alabama Power Company: A major utility company and a subsidiary of Southern Company (NYSE: SO). Draganfly partnered with Alabama Power to enhance its drone program for critical infrastructure inspection and maintenance.
• Integrated Solutions for Ag Technology (ISAT): A significant partner in the agricultural sector. Through this collaboration, Draganfly provides drone solutions for crop health assessment, field surveying, and advanced agricultural data collection to ISAT's customer base.
• Various U.S. Government Agencies: Draganfly frequently engages with and secures contracts from different branches of the U.S. government, including defense, public safety, and disaster relief organizations. These agencies utilize Draganfly's drones for reconnaissance, tactical operations, humanitarian aid, and other critical missions, though specific agency names are often not publicly disclosed due to the sensitive nature of their work.

null

The key risks to Draganfly's (DPRO) business are primarily financial and market-related, stemming from its current operational stage and the competitive landscape of the drone industry.

1. Ongoing Losses and Cash Burn: Draganfly has consistently reported ongoing losses and significant cash burn, struggling to achieve profitability despite revenue growth. The company's earnings show a loss position and it is burning cash, which may make investment not worthwhile. In Q3 2025, Draganfly posted a total comprehensive loss of over $5.4 million, even with a strong cash balance bolstered by a recent capital raise. The company needs to significantly scale its revenues to cover its operating expenses and accelerate its path to profits and cash break-even.
2. Dilution Risk: To fund its operations and growth, Draganfly frequently resorts to equity issuances, which has led to significant share dilution for existing shareholders. This dilution has caused substantial drops in the stock price, as seen with a 5.5 million share issuance in June 2025 that caused shares to drop approximately 40% within a day. Another $25 million direct offering in July 2025 caused the stock to plummet 27% due to investor concerns about dilution and valuation. This risk remains persistent and can overshadow positive developments.
3. Gross Margin Compression and High Competition: Draganfly faces challenges with its gross profit margin, which has been compressing. The gross margin fell to 19.5% in Q3 2025, down from 23.4%, partly due to an inventory write-down, signaling operational turbulence and margin pressures. This is compounded by a fragmented and highly competitive drone market, where the company's smaller scale and lower-priced products make peer comparisons challenging and its ability to capture a significant portion of the market uncertain.

Draganfly (DPRO) operates within the expansive global and North American drone markets, offering a range of products and services that include various drone hardware platforms, software, and specialized services. While specific addressable market sizes for each individual Draganfly product (e.g., Commander 3XL drone, Vital Intelligence software) are not distinctly identified in market reports, the company's offerings fall within the broader commercial drone, drone hardware, drone software, and drone services market segments.

Global Addressable Markets:

• The overall global drone market is projected to reach approximately USD 260 billion by 2030, growing at a Compound Annual Growth Rate (CAGR) of 27% from 2022. Another estimate places the global drone market at USD 73.06 billion in 2024, with a projection to reach USD 163.60 billion by 2030, exhibiting a CAGR of 14.3% from 2025 to 2030.
• The global commercial drone market was valued at USD 13.86 billion in 2024 and is anticipated to grow to USD 65.25 billion by 2032, at a CAGR of 20.8%.
• By 2030, the global drone market (commercial market) is forecast to reach US$57.8 billion, with drone services expected to remain the largest segment and hardware experiencing the fastest growth. Top application industries include Energy, Construction, and Agriculture, with key application methods being Mapping & Surveying, Inspection, and Photography & Filming.

North American Addressable Markets:

• The North America drone market generated approximately USD 29.14 billion in revenue in 2024 and is expected to grow at a CAGR of 13.5% from 2025 to 2030, reaching an estimated US$ 62.43 billion by 2030.
• North America accounted for over 39% of the global drone market in 2024.
• The North America drone market is projected to be worth around USD 31.06 billion by 2034, growing from USD 11.45 billion in 2024 at a CAGR of 10.5% during the forecast period from 2025 to 2034.
• Specifically, the U.S. drone market was estimated at USD 10.87 billion in 2024 and is expected to grow at a CAGR of 10.4% from 2025 to 2034, reaching approximately USD 29.23 billion by 2034.
• The commercial drone market in the U.S. alone is projected to reach an estimated value of USD 14.55 billion by 2030.

Draganfly's main products and services, including their various drone models (e.g., Commander 3XL, Flex FPV), software solutions (e.g., DGroundControl, Vital Intelligence), and professional services, contribute to and benefit from these overall market trends in the drone industry.

Draganfly (DPRO) is positioning itself for future revenue growth over the next 2-3 years through several key drivers, primarily focusing on government and defense sectors, manufacturing expansion, and strategic market development.

Here are 4 expected drivers of future revenue growth:

1. Increased Military and Government Contracts: Draganfly has secured significant contracts with the U.S. Department of Defense (DoD) and the U.S. Army for its drone systems, including the Flex FPV and Commander 3 XL. These agreements encompass not only the delivery of advanced drones for missions such as intelligence, surveillance, and reconnaissance (ISR) but also the establishment of on-site manufacturing facilities and comprehensive training for military personnel. These strategic military contracts validate Draganfly's technology and align with U.S. defense priorities for domestic manufacturing and supply chain security, indicating substantial future revenue streams.

2. Expansion of U.S. Manufacturing Capacity: To meet the growing demand, especially from the defense sector, Draganfly is actively expanding its U.S. manufacturing footprint and capacity. This expansion includes new AS9100- and ISO9001-certified manufacturing facilities and logistics locations. The company has an ambitious target of reaching $100 million in annualized production by the end of the year, with a further goal of $400 million by 2026, positioning it for significant growth in the unmanned vehicle market.

3. New Product Launches and Technology Advancements: Draganfly continues to innovate and launch new products designed for various applications. Key new introductions include the FlexForce Modular FPV UAV System, which is specifically targeted at government and military buyers, and the Outrider Southern Border Multi-Mission Drone. The Apex Drone, launched in Q3 2024, is also a significant product aimed at intelligence, surveillance, and reconnaissance for both military and public safety applications, boasting dual payload capabilities and AI computing.

4. Strategic Partnerships and Reseller Network Growth: Draganfly is broadening its market reach through strategic collaborations. Notable partnerships include an agreement with Global Ordnance, a U.S. defense contractor, to increase the adoption of Draganfly's drone solutions across U.S. military programs. The company has also appointed Drone Nerds, a leading U.S. drone retailer, as an official value-added reseller for its NDAA-compliant drone portfolio. Additionally, partnerships with companies like SafeLane (for demining) and Volatus Aerospace (for LiDAR technology integration and as an OEM-approved dealer) further diversify its sales channels and market penetration.

Share Repurchases

No information available regarding Draganfly's share repurchases or authorized future share repurchases over the last 3-5 years.

Share Issuance

• In July 2025, Draganfly closed a registered direct offering, selling 4,672,895 units to institutional investors at US$5.35 per unit, generating approximately US$25 million in gross proceeds.
• In June 2025, the company successfully closed a public offering of 5,500,000 units at US$2.50 per unit, raising gross proceeds of US$13.75 million.
• In November 2024, Draganfly announced the pricing of a registered direct offering with a single institutional investor to purchase 1,600,000 units at US$2.35 per unit, resulting in gross proceeds of approximately US$3.76 million.

Inbound Investments

• Draganfly secured approximately US$25 million in July 2025 through a securities purchase agreement with institutional investors.
• A US$13.75 million public offering was successfully closed in June 2025, with proceeds intended for general corporate purposes, including funding new product demand, working capital, potential acquisitions, and R&D initiatives.
• In November 2024, the company received approximately US$3.76 million from a registered direct offering with a single institutional investor.

Outbound Investments

• Draganfly made strategic acquisitions from 2020 onwards, which transformed the company into a more integrated solutions provider.
• Acquisitions include assets related to patents from Drone Delivery Canada (DDC) and Vital Intelligence Inc. to expand capabilities into drone delivery logistics and health/safety technology.
• In 2020, Draganfly made three acquisitions, including Dronelogics.com for $1.53 million, along with High Eye Aerial Imaging and Pioneer Aerial Surveys for undisclosed amounts.

Capital Expenditures

• In the last 12 months, Draganfly's capital expenditures were approximately -$126,631 to -$172,707.
• Cash flow from investing activities for the fiscal year ending December 31, 2024, was -$0.02 million.
• Proceeds from a July 2025 capital raise will support the establishment of a new Tampa, Florida, facility, which includes a live-fire testing site, indicating a focus on expanding operational infrastructure and research and development capabilities.