UAV maker posts double-digit revenue growth as it lands defense orders, a Fortune 50 telecom deal, and a Pentagon showcase slot

Introduction

Draganfly Inc. (NASDAQ: DPRO; CSE: DPRO; FSE: 3U8) reported second-quarter revenue growth and a string of operational wins that deepen its footprint in defense, public safety, and emergency infrastructure. Product sales rose 37% year over year in Q2 2025, helping lift total revenue 22% as the company advanced deliveries to U.S. defense programs, secured a Fortune 50 telecommunications customer for disaster recovery, and demonstrated an integrated tactical system at an invite-only Pentagon event. 

Background and Context

Founded more than two decades ago, Draganfly is best known for building modular unmanned aerial platforms used in time-sensitive missions. The company’s heritage includes one of the most widely cited early rescues by a public-service drone, when Canadian authorities used a Draganflyer to help locate an injured driver in 2013—an episode frequently credited as a first for life-saving drone use. That real-world orientation continues to shape the firm’s product roadmap and go-to-market focus. 

Q2 by the Numbers

In the quarter ended June 30, 2025, Draganfly posted revenue of $2.12 million (+22.1% YoY) and product sales of $1.90 million (+37.1% YoY). Gross profit was $505,000, with a gross margin of 23.9% versus 26.6% a year ago, a decrease the company attributed to sales mix. Cash and equivalents stood at $22.57 million at quarter-end, up from $6.25 million on December 31, 2024. The company reported a comprehensive loss of $4.75 million, including non-cash items. 

The stronger cash position reflects a series of financings, including a $25 million registered direct offering that closed in July 2025. 

What’s Driving the Pipeline

Defense traction. In July, a major branch of the U.S. Department of Defense selected Draganfly’s Commander3 XL for advanced operational initiatives, and the company separately announced a strategic military order for the platform—adding validation in intelligence, surveillance and reconnaissance (ISR) and related missions. In June, Draganfly began delivering its Flex FPV systems under an order from a major U.S. prime contractor. 

Pentagon demonstration. On August 5, Draganfly showcased an integrated tactical strike system—developed with MMS Products’ “Mjolnir” modular munition—at the Pentagon’s Low-Cost Uncrewed Combat Attack Systems event, highlighting modular payload integration and ISR-to-strike workflows. 

Disaster recovery and telecom resilience. After extensive testing with Infinity Communications, a Fortune 50 telecom purchased multiple Draganfly Heavy Lift drones to move supplies and restore communications in storm-damaged or inaccessible areas—an example of how UAV logistics are being embedded in business continuity plans. 

Humanitarian demining. In April, SafeLane Global named Draganfly its preferred global provider of landmine-mapping drones and aerial survey services in a multi-year agreement, with the first Ukraine aerial-survey contract underway—expanding the firm’s role in humanitarian operations. 

Why It Matters

Together, these developments put Draganfly at the nexus of three durable demand drivers: defense modernization, critical-infrastructure resilience, and humanitarian/ public-safety missions. Defense orders and Pentagon-level demonstrations can translate into longer-term programs if performance milestones are met. Commercial adoption by a Fortune 50 telecom underscores use cases beyond defense, where drones can shorten recovery time and improve safety after disasters. Humanitarian contracts broaden the addressable market while reinforcing the brand’s mission-driven identity. 

Expert and Company Views

Company leaders have framed recent wins as proof points for a modular, mission-ready approach built around North American, NDAA-compliant systems. In the Pentagon release, Draganfly emphasized that the LUCAS demonstration validated its integration and autonomy work in contested environments; the SafeLane agreement similarly positions the company as a specialist supplier in complex, high-risk settings. 

Challenges and Considerations

Despite top-line and product-sales growth, Draganfly remains loss-making as it invests in personnel, R&D, and market expansion; margins also move with product mix, which can pressure profitability in any given quarter. Execution risk is inherent in defense and public-sector sales cycles, where revenue can be lumpy and contingent on trials, security reviews, and budget timing. The company’s bolstered cash balance provides runway to support production scaling and program deliveries, but sustained growth will depend on converting pilots and initial orders into recurring or multi-year awards. 

Bottom Line

Q2 2025 offered a clear snapshot of Draganfly’s strategy in motion: expand in defense with validated platforms, extend into enterprise resilience with heavy-lift logistics, and apply the same technology stack to humanitarian missions. With fresh capital, a fuller order book, and marquee demonstrations, the company is positioned to compete for larger programs as organizations look to unmanned systems for faster response, better data, and safer operations.

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