Draganfly (CNSX:DPRO) Stock Sees Record Revenue While Losses Deepen

Draganfly entered this earnings report as a high-expectation drone stock with a rich P/S multiple and a share price that had drifted down about 16% over the past three months. The market reaction around the release has been muted, especially given the size of the story in the numbers. Q2 delivered record revenue of CA$2.664m but also a much heavier quarterly loss of CA$12.033m, which keeps the focus firmly on cash burn and the path to scale.

Is Draganfly's rich P/S multiple a sign of confidence or a setup for disappointment as losses deepen and dilution lingers in the background? See how the market's expectations line up in our valuation analysis for Draganfly

Q2 2026 Earnings Summary

• Revenue (Q2 2026 vs Q2 2025): CA$2.664m vs. CA$2.115m (up about 26%)
• Net Loss (Q2 2026 vs Q2 2025): CA$12.033m loss vs. CA$4.762m loss (loss widened materially)
• Basic EPS (Q2 2026 vs Q2 2025): CA$0.33 loss per share vs. CA$0.61 loss per share (loss per share narrowed)
• Trailing 12-Month Revenue (ended Q2 2026 vs ended Q2 2025): CA$9.045m vs. CA$7.161m (higher revenue base on a trailing 12-month view)

Prefer clear charts instead of another wall of earnings tables and cash burn figures? See Draganfly's full financial picture, with a spotlight on its balance sheet strength, in our company report for Draganfly.

Draganfly bulls leaning on growth and contracts

For a bullish view, Draganfly provides a clear revenue and contract story to point to. Q2 revenue reached CA$2.664m, which is a record quarter and sits on a higher 12‑month revenue base of CA$9.045m. That supports the idea of a business gradually winning more work in public safety and defense. The cash balance of about CA$131.9m and minimal debt also aligns with the narrative of a company that can fund measured expansion while it builds out programs such as campus security and counter-drone systems.

Draganfly bears focused on losses and execution risk

The bearish side of the Draganfly story also finds support in the earnings. The quarterly net loss widened to CA$12.033m, while gross margin slipped on an adjusted basis to 21.7% from 24.3%. Operating costs are rising as the company invests in people, R&D, and acquisitions ahead of larger contracts. That creates a clear execution test. The business has cash to absorb current burn, but with campus and defense programs ramping up slowly, the financials still appear geared to future wins rather than current profitability.

Compare Draganfly's internal contract momentum and cash runway story with what the street is pricing in. See the consensus price target analysis for Draganfly

Stay Ahead With Simply Wall St

If Draganfly's mix of record revenue and heavier losses has your attention, register for free with Simply Wall St and add it to a Watchlist to see how the share price tracks against fair value and decide when conditions line up for you. Once you have a position, use the Portfolio Command Center to cut through market noise and keep focus on key developments that matter for your holdings. For a broader view, tap into the Community to see how other investors are thinking about contracts, cash burn, and risk. This way you can identify potential catalysts and monitor key risks early and give yourself a better chance of staying a step ahead of the market.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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