Draganfly Inc. Q4 FY2025 earnings call

• 2025 was a solid year with record revenues, gross profit of $1.3 million, and cash balance of $90 million. - Unveiled the Outrider drone for Southern Border multi - mission agenda, which can stay aloft for 7 hours, carry up to 100 pounds, and has multiple capabilities. - Brought on Victor Meyers and Keith Kimmel to lead military Board of Advisers. - Partnered with Palladyne for swarming technology. - Showcased at AUSA, announced strategic partnership with Defense Prime Global Ordnance, and integrated with Autonome for landline clearing. - Secured military orders and had partnerships in Asia Pacific region. - Discussed drone market growth and regional demand from Middle East.

2025 had record revenues of $7.7 million, up 17.8% from 2024. Gross profit was $1.3 million. Q4 2025 revenue was $1.91 million, up 18.5% from Q4 2024. Q4 2025 gross profit was $85,700. Q4 2025 revenue decreased 11.3% from Q3 2025 to $1.9 million. Product sales and services mix contributed to the changes in revenue and gross profit percentages.

• 2025 was a build - up for predetermined revenue ramp in 2026 and beyond. - Looking forward to continued growth with the infrastructure built in 2025. - Expecting uptake of drones from multiple military forces around the world, with credibility from special operations units aiding international sales. - Anticipating more integrations and partnerships translating to meaningful orders.

Q: You've had a lot of meetings with the government and military of Canada. Do you see meaningful contracts coming from that?

A: We're sure hopeful. The Canadian Defense Industrial Strategy is significant, we've been active, had a Capabilities Day, and are well - positioned but have to earn the business.

Q: Why do we think we didn't make it past Gauntlet I in Drone Dominance? And do you think we'll reapply for Gauntlet II?

A: We didn't get notice until 36 hours before, couldn't perform one mission set with live ordnance, learned from it, and are very aggressive about Gauntlet II and expect to do well.

Q: So Canada says there's really focusing on drones. Do you think that Draganfly is in a good position there?

A: Yes, but not taking anything for granted and have to earn the business.

Q: There seems to be a lot more drone companies now than before. What are our competitive advantages to them?

A: Long - standing experience, full product lineup, ability to scale, and focus on concepts of operations and missions.

Q: Do you see yourself doing any acquisitions?

A: Yes, with a strategic focus on fitting technologies for mass production and multi - mission focus.

Q: You tend to announce many partnerships and pilot projects. Are they translating into meaningful orders as your competitors?

A: Yes, but our approach is more organic and blue ocean, creating blue ocean opportunities like border management