Draganfly Inc. Q3 FY2025 earnings call

• Unveiled the Outrider Southern Border drone in live operation at Cochise County.
• Appointed Victor Meyers and Keith Kimmel to head military Board of advisors.
• Collaborated with Paladin AI to incorporate their AI into drone fleet.
• Drone Nerds, the largest U.S. reseller, took on Draganfly line for public safety and military.
• Participated in AUSA show with Global Ordinance, highlighting Draganfly's capabilities.
• Collaborated with Autonomy Labs to standardize on Draganfly's Heavy Lift platform for mine clearing.
• Working on standing up 7 new plants in the U.S. to more than quadruple capacity.
• Focus on Canadian market with Canada's increased defense spending on drone technology.
• Fortune 50 telecom company started buying Heavy Lift Drones for post-natural disaster communication support.
• Announced U.S. Army order for FPVs, involving supply chain and logistical support.

Revenue for Q3 2025 was $2.155 million, an increase of 14.4% year-over-year. This included $1.6 million of product sales and about $530,000 of services. Gross profit was $420,000. Cash balance as of September 30, 2025, was just underneath $70 million.

• Expecting big things from partnership with Paladin AI.
• New plants coming online will more than quadruple capacity by end of next year.
• Military and certain commercial segments are expected to see significant growth, with military potentially becoming a major revenue driver in the near future.

• Industry consolidation is expected, with potential challenges as the drone industry expands and scales production.
• Meeting mission-critical requirements and ensuring compliance with standards pose operational challenges.

Q: What are the scenarios or use cases for any potential future raise?

A: Will be opportunistic, sensitive to dilution and shareholder value. Focus on acquiring the right team and people to meet demand, with potential for raises for acquisitions.

Q: Can you expand on the press release about manufacturing and overseas military facilities?

A: Manufacturing in overseas facilities is for military assembly and modification, driven by need for on-site modifications. Scale is astronomical with large military orders and focus on embedded hybrid manufacturing to meet tactical needs.