Draganfly booked its best quarterly revenue on record and is sitting on more cash than ever, even as a one-time compensation charge dragged the bottom line deep into the red.
The Vancouver-based drone maker (NASDAQ: DPRO, CSE: DPRO, FSE: 3U8) reported second-quarter 2026 revenue of $2,664,237, up 26.0% year over year. Product sales carried the growth, climbing 34.6% to $2,560,378.
The numbers
Gross profit rose 5.7% to $533,149, but gross margin slipped to 20.0% from 23.9% a year earlier. A one-time, non-cash inventory write-down of $43,662 explains most of the gap: strip that out and margin would have landed at 21.7%. The company said the rest comes down to product mix.
The comprehensive loss for the quarter hit $11,831,664, but the headline number is misleading on its own. It includes $3,736,959 in one-time share-based compensation, a $43,662 inventory write-down, and an $8,931 swing in derivative fair value. Back those out and the adjusted loss was $8,042,112, still wider than the $4,567,128 adjusted loss in Q2 2025, driven by higher office, travel, R&D, and headcount costs.
Cash on hand climbed to $131,908,197 as of June 30, up from $90,156,821 at the end of 2025.
Chell goes to Ottawa
CEO Cameron Chell appeared before the Senate's Standing Committee on National Security, Defence and Veterans Affairs to make the case for building up Canada's domestic drone manufacturing base and shoring up the sovereign defence supply chain. It's the kind of appearance that fits Draganfly's broader pitch: a Canadian company positioning itself as critical infrastructure for allied drone procurement, not just another vendor.
Building out the defence book
The quarter's contract wins lean hard into that positioning. Draganfly's Flex FPV system was picked up by two more U.S. Department of War units, adding to its footprint with American defence customers. The company also launched Draganfly Blitz, a new line of NDAA-compliant optical payloads aimed at defence, public safety, and critical infrastructure buyers.
On the counter-drone side, Draganfly and F4 Defense International were selected by the U.S. Department of War to build an integrated, multi-layered counter-UAS system combining aerial intelligence, targeting, and coordinated ground and air components to detect and defeat drone threats.
Deals and acquisitions
Draganfly signed an exclusive distribution and development agreement with ACSL, Japan's largest drone maker, to bring NDAA-compliant, Japanese-built drone systems into the Canadian market, another plank in the company's push toward secure, allied-sourced supply chains.
It also closed its acquisition of Skip Dynamix's fixed-wing drone technology, IP, and infrastructure, adding long-range fixed-wing capability to a portfolio that's been mostly rotary and FPV until now.
Campus security push
Away from defence, Draganfly and the International Association of Campus Law Enforcement Administrators launched a national Campus Drone Implementation and Readiness Program, aimed at helping U.S. college and university public safety agencies stand up drone programs for emergency response and situational awareness.
Why it matters
Draganfly's revenue growth is real but still small in absolute terms, and the comprehensive loss shows the company is spending well ahead of that revenue to build out its defence and government business. The cash position gives it runway to keep doing that. With a Senate appearance, two U.S. Department of War contract wins, and a Japanese manufacturing tie-up in a single quarter, Draganfly is making a clear play to be the Canadian name attached to NDAA-compliant drone supply chains on both sides of the border.
