Sales growth in the middle of profitability …

Appearance date: May 08, 2025

You can find the complete copy of the earnings call in the complete earnings call.

• Draganfly Inc (Nasdaq: DPRO) recorded a 16% sales increase compared to the previous year and reached USD 1.547 million for the first quarter of 2025.

• The company signed an exclusive agreement with Safe Lane, the world's largest down and non-exploded prescription removal company to carry out aerial photographs.

• Draganfly Inc (NASDAQ: DPRO) announced a teaming agreement with Autonomy Labs to use their severe buoyancy drones for the hernia processes and to promise lower costs, faster speed and greater security.

• The company founded a consultant for public security to improve access to top agencies worldwide and to offer valuable specialist knowledge.

• Draganfly Inc (Nasdaq: DPro) completed a finance round of 3.6 million US dollars and supported ongoing business and future growth.

• Despite the growth of sales, Draganfly Inc (Nasdaq: DPro) recorded a comprehensive loss of $ 3.4 million for the quarter.

• The company's gross margin took back due to more sales from products with lower margin compared to the previous year.

• The total assets went back from USD $ 6.9 million, which is particularly due to a decline in cash in the course of the company.

• The company does not expect that it will be profitable in 2025 and expects sales of 35 to 40 million US dollars to be required to achieve profitability.

• The income has been stagnated since 2023, and considerable capital investments have not yet been implemented to consider considerable sales growth.

Q: How many other equity increases do you plan before you are profitable, or more precisely, when are you planning to be profitable? A: Profitability depends primarily on sales. We appreciate sales of around 35 to 40 million US dollars to achieve profitability. Although we do not give any official instructions, we expect this year with regard to orders north of this number. We won't be profitable this year, but we will have a good shot on profitability next year, possibly with just one big order. – Cameron Shell, CEO

Q: Are we still on the right track to receive large, meaningful contracts? A: Yes, we actively pursue large contracts that are complex and complicated. Our sales funnel for these major contracts is well over 100 million US dollars. We deal with nation states, military and large public security orders and are able to deliver them. We believe that we are very narrow on several fronts. – Cameron Shell, CEO

Q: Do you think there will be consolidation in the drone industry? A: Yes, consolidation will probably continue. In this regard, we were not aggressive due to our modest market capitalization and focus on organic growth. However, we often see interesting opportunities for consolidation. The industry is at a turning point, and only a few companies have the resistance to survive this phase. – Cameron Shell, CEO