Draganfly (DPRO) Q2 2026 Earnings Call Transcript

Revenue surged 26% year-over-year to $2.7 million amid strategic drone partnerships. Need a quote from a Motley Fool analyst? Email [email protected] Management reported a record fiscal second quarter, emphasizing a transition toward modular and fixed-wing drone systems for defense and public safety markets. The company secured an exclusive agreement with a campus law enforcement association and acquired technology to scale fixed-wing drone production. Strategic efforts centered on increasing international procurement opportunities, particularly within Canada and NATO countries. Management also highlighted the development of counter-drone systems and interchangeable optical payloads as key differentiators in its product lineup. Rolly Bustos: Hi, everybody. Welcome to our Q2 2026 earnings call. We'll just give this a minute. We just started it, but just letting people file in the room, and then we'll get started. Thank you. All right. I think to be respectful of everyone's time, we will get started just as people are still starting to file in. So as always, welcome and greetings to all the shareholders and stakeholders who always tend to join us on these calls. This time is the Draganfly 2026 Q2 Earnings Call. My name is Rolly Bustos. I'm the Internal Investor Relations rep here at Draganfly. We appreciate you all joining us as always.

We'll start with our CEO and President, Cameron Chell. He'll be talking about and recapping the second quarter. Next up will be a detailed financial review with our CFO, Paul Sun. We'll then conclude by addressing the presubmitted questions we've received. As always, you're welcome to reach out to me directly at [email protected] , if we didn't get to your question today. I remind everyone that this presentation may include forward-looking information and statements. These statements are not guarantees of future performance or financial results and undue reliance should not be placed on them. Any future events or financial results may differ from what might be discussed here. The company's results and statements are accurate as of today, August 10, 2026. We are under no obligation to update or renew these statements outside of material press release disclosure going forward. The full forward-looking disclaimer can be found on Page 2 of this presentation and on the screen right now. Cam, if you're ready, please go ahead. Cameron Chell: Sounds great. Thanks Rolly. Sure appreciate it and appreciate everybody taking the time to afford us the opportunity to update our earnings call for this last quarter. So the net-net here is that Draganfly, we had a record quarter in our second quarter and we're really very pleased with the progress that we are moving forward with. It's super pragmatic. I understand that it's a very pragmatic approach compared to maybe, say, a number of other comps out in the industry, but we're super pleased with where we've ended up and what the pipeline looks like going forward.

So our revenue was $2.664 million. That's a year-over-year increase of 26% with gross profit of $533,000 plus. We have a current cash balance of $131 million, and we did just over $2.5 million of product sales. Some of the highlights from the last quarter included IACLEA which is the International Association of Campus Law Enforcement Association or Officials/Professionals (sic) [ Administrators ]. This is a 3,000-strong campus association, and they signed an exclusive deal with Draganfly to provide their association members -- the 3,000 campuses that are a part of this -- with the training for drones and counter-drones on their campuses. It also includes product and they went through what I would call a pretty exhaustive series of tests and litmus tests and interviews and all the rest of it to determine who they were going to go with, who they were going to endorse and what program they were going to put in place. I would say that this was 50% based on product and 50% based on subject matter expertise and the quality of the training program that was being put forward that campuses will go through. So it's a tremendous market win for us. We have an immediate pipeline of over 50 campuses that signed up. We are in -- typical fashion of what we do, which I know is frustrating at times, taking a very pragmatic approach to how we do this. So we're moving up. We did some pilots previous to launching the whole program, which helped us establish what that training protocol would be, what were the use case scenarios and the concepts of operations that we were going to have to be planning for. We had to make some key hires in campus security, counter-drone and a number of other tactical positions in order to really develop that right programming. And we're rolling out the first 3 campuses that have signed up with us in the next quarter. So really hats off to our public safety organization and how they organize this. I will mention as a subsequent event, we also did sign the Small and Rural Association and that's a very, very important association for us to sign as well. And part of our whole strategy here is not necessarily to go after the urban centers.

⚡ Effects Interpreter