Draganfly Q4 Revenue Climbs 18.5%, Full-Year Sales Jump 17.8% to $7.73M
Draganfly posted fourth-quarter revenue of $1.91 million, up 18.5%, and full-year sales rose 17.8% to $7.73 million driven by a 28% jump in product sales to $6.87 million. While gross profit dipped 5.5% to $1.32 million (17.1% margin), adjusted gross margin fell to 20.4% and the company ended 2025 with a $90.16 million cash balance as new defense partnerships and reseller agreements accelerate market expansion.
1. Record Revenue Growth and Product Sales
Fourth-quarter revenue reached $1.912 million, an 18.5% year-over-year increase, while full-year sales rose 17.8% to $7.73 million. Product sales led the advance, climbing 28% to $6.87 million, offsetting a 27.7% drop in services revenue to $861,348.
2. Services Decline and Margin Pressures
Services revenue fell from $1.19 million in 2024 to $861,348 in 2025, contributing to a 5.5% decline in gross profit to $1.32 million. Gross margin narrowed from 21.3% to 17.1%, with adjusted gross margin down to 20.4% after inventory write-downs.
3. Comprehensive Losses and Cash Position
The company recorded a comprehensive loss of $22.98 million, widening from $14.06 million a year earlier due to higher operating expenses and non-cash derivative liabilities. Despite the loss, Draganfly closed 2025 with cash and equivalents of $90.16 million.
4. Strategic Partnerships and Defense Expansion
Draganfly secured multiple defense and commercial agreements, including a partnership with Global Ordnance, a value-added reseller deal with Drone Nerds, and a Palladyne AI collaboration for autonomy upgrades. Additional orders from a Fortune 50 telecom and U.S. Air Force Special Operations reinforce its position in military and enterprise UAV markets.