Q2 2026 Draganfly Inc Earnings Call

August 10, 2026

Speaker #1: You have joined the meeting as an attendee and will be muted throughout the meeting.

Speaker #2: It's, 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, I think we will get started just as people are still starting to file in.

Rolly Bustos: It is just letting people file in the room, and then we will get started. Thank you. All right. I think to be respectful of everyone's time, I think we will get started just as people are still starting to file in. As always, welcome and greetings to all the shareholders and stakeholders who always tend to join us on these calls. This time it is the Draganfly 2026 Q2 earnings call. My name is Rolly Bustos. I am the internal investor relations rep here at Draganfly. We appreciate you all joining us as always. We will start with our CEO and President, Cameron Chell. He will be talking about and recapping the second quarter. Next up will be a detailed financial review with our CFO, Paul Sun. We will then conclude by addressing the pre-submitted questions we received

Rolly Bustos: It is just letting people file in the room, and then we will get started. Thank you. All right. I think to be respectful of everyone's time, I think we will get started just as people are still starting to file in. As always, welcome and greetings to all the shareholders and stakeholders who always tend to join us on these calls. This time it is the Draganfly 2026 Q2 earnings call. My name is Rolly Bustos. I am the Internal Investor Relations Rep here at Draganfly. We appreciate you all joining us as always. We will start with our CEO and President, Cameron Chell. He will be talking about and recapping the Q2. Next up will be a detailed financial review with our CFO, Paul Sun. We will then conclude by addressing the pre-submitted questions we received.

Speaker #2: 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 Dragonfly 2026 Q2 earnings call.

Speaker #2: My name is Rolly Bustos. I'm an 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.

Speaker #2: 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 pre-submitted questions we've received.

Speaker #2: As always, you're welcome to reach out to me directly at investor.relations@draganfly.com if we didn't get to your question today. I remind everyone, this presentation may include forward-looking information and statements.

Rolly Bustos: As always, you are welcome to reach out to me directly, investor.relations@draganfly.com, if we did not get to your question today. I remind everyone 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, 10 August 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 are ready, please go ahead.

Speaker #2: These statements do not guarantee future performance or financial results, and undue reliance should not be placed on them. Any future events or financial results may differ from what is discussed here.

Speaker #2: 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.

Speaker #2: The full forward-looking disclaimer can be found on page 2 of this presentation and is also on the screen right now. Cam, if you're ready, please go ahead.

Speaker #3: 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.

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. The net net here is that at Draganfly, we had a record quarter in our second quarter, and really very pleased with the progress that we are moving forward with. It is super pragmatic, and understand that it is a very pragmatic approach compared to maybe, say, a number of other comps out in the industry. But we are super pleased with where we have ended up and what the pipeline looks like going forward. Our revenue was CAD 2.664 million. That is a year-over-year increase of 26%, with gross profit of CAD 533,000-plus. We have a current cash balance of CAD 131 million, and we did just over CAD 2.5 million of product sales.

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. The net net here is that at Draganfly, we had a record quarter in our Q2, and really very pleased with the progress that we are moving forward with. It is super pragmatic, and understand that it is a very pragmatic approach compared to maybe, say, a number of other comps out in the industry. But we are super pleased with where we have ended up and what the pipeline looks like going forward. Our revenue was CAD 2.664 million. That is a year-over-year increase of 26%, with gross profit of CAD 533,000-plus. We have a current cash balance of CAD 131 million, and we did just over CAD 2.5 million of product sales.

Speaker #3: 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.

Speaker #3: It's super pragmatic. I understand that it's a very pragmatic approach compared to maybe, say, a number of other comps I would in the industry, but we're super pleased with where we've ended up and what the pipeline looks like going forward.

Speaker #3: So our revenue was 2.664 million dollars. That's a year over year increase of 26%. We had gross profit of 533,000 plus dollars. We have a current cash balance of 131 million dollars.

Speaker #3: 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 Administrators.

Cameron Chell: Some of the highlights from the last quarter included IACLEA, which is the International Association of Campus Law Enforcement Association or, officials professionals. 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.

Speaker #3: This is a 3,000-strong campus association, and they signed an exclusive deal with Draganfly to provide their association members to 3,000 campuses that are a part of this.

Speaker #3: 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, litmus tests, 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.

Speaker #3: 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.

Speaker #3: 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.

Cameron Chell: 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. 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 three campuses that have signed up with us in the next quarter. We'll assess those three campuses.

Speaker #3: We're taking a very pragmatic approach to how we do this. So, we're moving up. We did some pilots prior to launching the whole program, which helped us establish what that training protocol would be, what the use case scenarios were, and the concepts of operations that we were going to have to be planning for.

Speaker #3: 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.

Speaker #3: And we're rolling out the first three campuses that have signed up with us in the next quarter. We'll assess those three campuses. We'll probably run them for a while, then we'll sign up another three of the 50 that are indicative in the pipe.

Cameron Chell: We'll probably run them through. We'll sign up another three of the 50 that are indicative in the pipe. And we'll run them for a quarter, then run the next ones for a quarter and get all that operational expertise, make the adjustments necessary, and then we'll open up the ticket to it in probably the Q2 of next year, which works well in terms of most of the budget timing and actually most of the decision timing that it takes for things to move forward. But we really want to make sure that we've got a great reference base in this regard because it's a bit of a captured market for us. Really, hats off to our public safety organization and how they organized this.

Speaker #3: And we'll run them for a quarter, then run the next ones for a quarter and get all that operational expertise, make the adjustments necessary, and then we'll open up the stick-it to it in probably the second quarter of next year, which works well in terms of most of the budget timing and actually most of the decision timing that it takes for things to move forward.

Speaker #3: But we really want to make sure that we've got a great reference base in this regard because it's a bit of a captive market for us.

Speaker #3: 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.

Cameron Chell: I will mention as a subsequent event, we also did sign the Small & Rural Law Enforcement Executives Association and a 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. Those urban centers are really well-serviced by organizations like Skydio, Axon, BRINC, who are very targeted in those areas, have obviously very strong balance sheets, competent management teams, and we didn't want to be going head-to-head with those folks. Now, the campuses is a terrific set of organizations for us to go and work with, including the release of our drone-in-a-box solution to them. However, the rural, which makes up about 80% of police forces in the country, but they're smaller. They're a little bit more expensive to work with, but they're not quite as fussy.

Speaker #3: And 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 center.

Speaker #3: So those urban centers are really well serviced by organizations like Skydio, Axion, and Brink, who are very, very targeted in those areas. They have obviously very strong balance sheets and competent management teams.

Speaker #3: And we didn't want to be going head to head with those folks. Now, the campuses are a terrific set of organizations for us to go and work with.

Speaker #3: Including the release of our drone-in-a-box solution to them. However, the rural, which makes up about 80% of police forces in the country, but they're smaller.

Speaker #3: So they're a little bit more expensive to work with, but they're not quite as fussy. So you've kind of got a balance there to work with.

Cameron Chell: So you've kind of got a balance there to work with. There are a couple of other associations that we're close to signing. But again, we're trying to roll it out in a measured way. We also completed the acquisition of Skip Dynamix. This is a really strategic acquisition for us. Skip Dynamix, the two founders involved here are former Navy grads. They're actually the individuals that designed the original FPVs for the Marines, and over 15 years ago, trained Marines and built protocol around FPVs. A lot of people don't know this, but FPVs weren't invented in Ukraine. They were introduced to Ukraine by the US Marines as a bit of a Hail Mary to like, "You guys are in a tough spot. Try this." And lo and behold, it worked.

Speaker #3: There are a couple of other associations that we're close to, to roll it out in a measured way. We also completed the acquisition of Skip Dynamics.

Speaker #3: Now, this is a really strategic acquisition for us. Skip Dynamics—the two founders involved here are former Navy grads. They're actually the individuals that designed the original FPVs for the Marines.

Speaker #3: And over 15 years ago, I trained Marines and built protocol around FPVs. Now, not a lot of people know this, but FPVs weren’t invented in Ukraine.

Speaker #3: They were introduced to Ukraine by the US Marines as a bit of a Hail Mary. Like, you guys are in a tough spot.

Speaker #3: Try this—and lo and behold, it worked. So the amount of experience that these two individuals brought to the organization, not just in terms of their engineering prowess, capability, and operational prowess, but also their contacts in the existing work that they do within the government, it was really important.

Cameron Chell: The amount of experience that these two individuals brought to the organization, not just in terms of their engineering prowess, capability, operational prowess, but also their contacts and the existing work that they do within the government, it was really important. This particular product that you see in the picture there, that is initially designed as a one-way attributable fixed-wing drone. The part of the strategy here is twofold, and we see it unfolding exactly as these guys had predicted. There's two reasons that fixed wings will become much, much more prevalent over the coming couple of years. First of all, if there's engagement in Taiwan or the South Pacific, you're dealing with a surface area, an ocean that's five times the size of the Atlantic.

Speaker #3: Now, this particular product that you see in the picture there is initially designed as a one-way attributable fixed-wing drone. So the part of the strategy here is twofold, and we see it unfolding exactly as these guys had predicted.

Speaker #3: There are two reasons that fixed wings will become much, much more prevalent over the coming couple of years. First of all, if there's engagement in Taiwan or the South Pacific, you're dealing with a surface area, an ocean, that's five times the size of the Atlantic.

Speaker #3: Distance matters, and you're not going to be using quadcopters in those types of engagements. It will basically be a naval, marine, or beachfront-type engagement.

Cameron Chell: Distance matters, and you're not going to be using quadcopters in those types of engagements, and it will basically be a naval or a marine or a beachfront type of engagement. So you need a different type of piece of equipment. This is positioning us for that spend that's coming up, in that regard. It is our estimation that the 100 Nautical Mile Lucas program, this is exactly what this is targeted toward, and we're down to the final few contestants or selections for that. We feel pretty good about it. Interestingly enough, this particular plane is also an excellent ISR. It could be hand-thrown. It can be from a ship or from the shore, so it's kind of like an anywhere, anytime, very easily man-packable. An interesting piece of the construction around this product is the fact that it's not composite.

Speaker #3: So you need a different type of piece of equipment, and this is positioning us for that spend that's coming up in that regard. It is our estimation that the $100 nautical mile Lucas program—this is exactly what this is targeted toward.

Speaker #3: And we're down to the final few contestants or selections for that, and we feel pretty good about it. Now, interestingly enough, this particular plane is also an excellent ISR—it could be hand-thrown.

Speaker #3: It can be from a ship or from the shore. So it's kind of like an anywhere, anytime, very easily man-packable system. And an interesting piece of the construction around this product is the fact that it's not composite.

Speaker #3: It's actually a thermoform, so we can mass-produce this thing today. We can push out tens of thousands of these in a month.

Cameron Chell: It's actually a thermal form. So we can mass produce this thing today. Today, we can push out tens of thousands of these things in a month, and at very, very low cost, like four-figure costs. That's really important, and they're completely customizable inside. So depending on the type of radio that you want to run, or the type of payload that you want to have, or ordnance or such. So it's very, very modular as well. So it really fits our philosophy of modular drones. Draganfly was very proud to be awarded by DEVCOM, or a counter-drone development of a counter-drone system. This is an ultra-light, ultra-mobile counter-drone system. Has all kinds of different use cases. The primary use case was forward operating bases or even squads that have to go out and maybe spend time overnight and need to protect personnel. It does include a tethered drone.

Speaker #3: And at a very, very low cost—like a four-figure cost. And that's really important. And they're completely customizable inside, so depending on the type of radio that you want to run, or the type of payload that you want to have, or ordnance or such. So, it's very, very modular as well.

Speaker #3: So it really fits our philosophy of modular drones. Draganfly was very proud to be awarded by DEVCOM for the development of a counter-drone system.

Speaker #3: This is an ultra-light, ultra-mobile counter-drone system. It has all kinds of different use cases. The primary use case was for forward operating bases, or even squads that have to go out and maybe spend time overnight and need to protect personnel.

Speaker #3: It does include a tethered drone. It includes an effector that can be either kinetic or RF, and some pretty sophisticated software on the tracking side.

Cameron Chell: It includes an effector that can be either kinetic or RF, and some pretty sophisticated software on the tracking side. We are really excited about what is happening there and how that is. I mean, we have got strong experience in the counter-drone space. But winning this DEVCOM contract is significant and, I believe, translates into hundreds of billions of CAD of revenue, not just within the US DoD, but in the international markets as well over the coming years. We launched a brand-new line of cameras in a partnership with a company called Blitz. You can see by the picture of that camera there, this is not a typical consumer dual-use type camera. It is a hybrid of a military camera and a dual-use commercial camera, but packed in a case and container that is much more durable.

Speaker #3: So we're really excited about what's happening there and how that's—I mean, we've got strong experience in the counter-drone space. But winning this DEVGRU contract is significant, and I believe it translates into hundreds of millions of dollars of revenue, not just within the US DOD, but in international markets as well over the coming years.

Speaker #3: We launched a brand new line of cameras in a partnership with a company called Blitz. And you can see by the picture of that camera there, this is not a typical consumer, dual-use type camera.

Speaker #3: It is a hybrid of a military camera and a dual-use commercial camera, but packed in a case and container that is much more durable.

Speaker #3: And the optics on it are incredible compared to what you would get in a prosumer or in a dual-use type drone. And this is a bit of a trend that we see in the defense side of the business, where you see the quality of the product, even if it's dual-use, moving up the food chain.

Cameron Chell: The optics on it are incredible compared to what you would get in a prosumer or in a dual-use type drone. This is a bit of a trend that we see in the defense side of the business, where you see the quality of the product, even if it is dual use, moving up the food chain. I would suggest this is also a reason that we continue to see a slight, a meaningful delay in our revenue ramp because the specifications and qualifications that are being asked for are being refined on the fly. We may have a large order, and then as the order gets there, like, "Hey, can you make this tweak?" Then you have got to redesign some cameras, and candidly, this is why we worked in partnership to develop this entire camera system. It is very unique to Draganfly.

Speaker #3: And I would suggest this is also a reason that we continue to see a slight, but meaningful, delay in our revenue ramp, because the specifications and qualifications that are being asked for are being refined on the fly.

Speaker #3: So we may have a large order and then, as the order gets there, like, "Hey, can you make this tweak?" And then you've got to redesign some cameras. And candidly, this is why we worked in partnership to develop this entire camera system.

Speaker #3: It's very unique to Draganfly. It'll fit on any of our models. It'll also fit onto other drone models as well, and really launches us into the optics business.

Cameron Chell: It will fit on any of our models. It will also fit onto other drone models as well and really launches us into the optics business. Draganfly, the Flex FPV drone, was selected by 2 additional US Department of Defense units. I can tell you that these are all special forces units, and we are really proud of the fact, and pleased with the fact that these particular special forces units are selecting the Flex FPV drone. There are a couple of primary reasons. A couple I cannot really talk about, but a couple of them that are disposable is, in particular, that you have got arms and blades that you could switch out. What that means is that you have got variability in your mission profile without having to carry a whole bunch more equipment.

Speaker #3: Draganfly Defends FPV Drone was selected by two additional U.S. Department of Defense units. I can tell you that these are all special forces units.

Speaker #3: And we're really proud of the fact, and pleased with the fact, that these particular Special Forces units are selecting the Flex drone. There's a couple of primary reasons.

Speaker #3: A couple I can't really talk about, but a couple of them that are disclosable are, in particular, that you've got arms and blades that you can switch out.

Speaker #3: So what that means is that you've got variability in your mission profile without having to carry a whole bunch more equipment. But the unintended consequence of that design was that you can fit between three and four times as many drones in the same space—whether that's a backpack or the back of a truck—than you can because of the way they pull apart, and they take seconds to pull apart or put together.

Cameron Chell: But the unintended consequence of that design was that you can fit between 3 and 4 times as many drones in the same space, whether that is a backpack or the back of a truck, than you can because of the way they pull apart, and they take seconds to pull apart or put together. But the way they do is they just pack nicely into very contained spaces. Again, that was not part of the original design concept in terms of what the benefit was, but it is actually turning out to be an incredible benefit. Now, the performance of it will match, the difference between FPVs out there is, in terms of speed and maneuverability, is marginal between any of them. But, because you can put some bigger blades on this, even with shorter arms, you actually can do some bigger payloads, some more sophisticated radios.

Speaker #3: But the way they do, they just pack nicely into very contained spaces. So again, that wasn't part of the original design concept in terms of what the benefit was, but it's actually turning out to be an incredible benefit.

Speaker #3: Now, the performance of it will match—as the difference between FPVs out there in terms of speed and maneuverability is marginal between any of them.

Speaker #3: But because you can put some bigger blades on this, even with shorter arms, you actually can do some bigger payloads and use some more sophisticated radios.

Speaker #3: Some of these are actually being used in live situations right now, even as ISR drones. So, some great lessons have come out of that.

Cameron Chell: Some of these are actually being used in live situations right now, even as ISR drones. Some great lessons that have come out of that. We see a great future for this particular one. ACSL and Draganfly have partnered to bring NDAA-compliant Japanese drones into the Canadian and actually into the US market as well. Into the Canadian market, it is exclusive. Into both of these markets, it is important to note that these are not just typical ACSL Japanese-made drones. This is a drone that was originally designed by Hitachi. The ACSL drones that are in our lineup are in our lineup because we have integrated them with our other drones.

Speaker #3: We see a great future for this particular one. ACSL and Draganfly have partnered to bring NDAA-compliant Japanese drones into the Canadian and actually into the US market as well.

Speaker #3: But into the Canadian market, it's exclusive. But into both of these markets, it's important to note that these are not just typical ACSL Japanese-made drones.

Speaker #3: This is originally a drone that was originally designed by Hitachi. But the ACSL drones that are in our lineup are in our lineup because we've integrated them with our other drones.

Speaker #3: So you'll see on the front of the ACSL drone a camera system that pops off, and another camera that can pop on, whether it be a thermal, or a higher-res, or a hyperspectral, or whatever the case may be.

Cameron Chell: You will see on the front of the ACSL drone a camera system that pops off and another camera that can pop on, whether it be a thermal or a higher res or a hyperspectral or whatever the case may be. There are 4 different cameras. Those cameras now also pop off and are being fitted onto the APEX drone and eventually onto all of the drones. We will have an interchangeable camera system that will be included in the ASL line. Only Draganfly will have that interchangeable capability with ASL. We are building strategic differentiators into this particular product line. The reason that we did not build this product ourself is that everybody builds this product, and it is typically a low-margin product. It is kind of something that you have got to have in your product mix, because it is a very convenient and popular sized drone.

Speaker #3: There are four different cameras. But those cameras now also pop off and are being fitted onto the Apex drone, and eventually onto all of the drones.

Speaker #3: So, we'll have an interchangeable camera system that will be included in the ASL line. Now, only Draganfly will have that interchangeable capability with ASL.

Speaker #3: So we're building strategic differentiators into this particular product line. Now, the reason that we didn't build this product ourselves is that everybody builds this product.

Speaker #3: And it's typically a low-margin product, but it's kind of something that you've got to have in your product mix because it's a very convenient and popular-sized drone, and it works great for ISR, whether that be in military, public safety, or industrial.

Cameron Chell: It works great for ISR, whether that be in military, public safety or industrial. That particular drone model, in our opinion, is a race to the bottom. We wanted to come up with a strategy that would still allow us to scale, still build some unique capabilities within our product line, but also not have us utilize valuable resources to develop a me-too type product. I am not suggesting ACL is a me too, or that company is a me too. They have done some really cool things here, but this is all they do. You really have to just be focused on that particular product line if you are going to be even somewhat successful. Of course, our product line tends to be, one, first of all, interchangeable, modular. Arguably, we are still the only folks out there that have a fully integrated product line across 6 different drone sets.

Speaker #3: But that particular drone model, in our opinion, is raced to the bottom. So we wanted to come up with a strategy that would still allow us to scale, still build some unique capabilities within our product line, but also not have us utilize valuable resources to develop a 'me too' type product.

Speaker #3: And I'm not suggesting ACL is a me-too or that company is a me-too. They've done some really, really cool things here. But this is all they do.

Cameron Chell: They have done some really cool things here, but this is all they do. You really have to just be focused on that particular product line if you are going to be even somewhat successful. Of course, our product line tends to be, one, first of all, interchangeable, modular. Arguably, we are still the only folks out there that have a fully integrated product line across 6 different drone sets.

Speaker #3: You really have to just be focused in that particular product line if you're going to be even somewhat successful. And, of course, our product line tends to be, first of all, interchangeable, modular.

Speaker #3: Arguably, we're still the only folks out there that have a fully integrated product line across six different drone sets. So if you're a squad, a company, a battalion, a brigade, you've got all the different drone sections that you can pick from, from one supplier.

Cameron Chell: If you are a squad, a company, a battalion, a brigade, you have got all the different drone sections that you can pick from from one supplier. We supply everybody from a squad right up to brigade. We do not go up to command level because those are typically category 3 drones. Interestingly enough, the biggest demand signal that we see over the next couple of years is going to be medium and long-range strike drones. Hence, that is exactly why we bought the expertise and technology behind Skip Dynamix. You will see us entering into at least the medium strike and likely the long strike area over the next number of years as well. I had the great pleasure of. Man, that picture is I have got to talk to our PR department. That was a long time ago.

Speaker #3: We supply everybody from a squad right up to brigade. We don't go up to command level because those are typically drones that are category three.

Speaker #3: Drones. But interestingly enough, the biggest demand that signal that we see over the next couple of years is going to be medium and long-range strike drones.

Speaker #3: And hence, that's exactly why we bought the expertise and technology behind Skip Dynamics. So, you will see us entering into at least the medium-strike, and likely the long-strike, area over the next number of years as well.

Speaker #3: I had the great pleasure of—man, that picture is—I got to talk to our PR department. That was a long time ago. At any rate, I had the great pleasure of providing testimony to the Canadian Senate, specifically talking about how to speed up the procurement cycles.

Cameron Chell: At any rate, I had the great pleasure of providing testimony to the Canadian Senate, specifically talking about how to speed up the procurement cycles. One, to help industrialize the military complex in Canada, but two, to help ensure that they are able to get the equipment they need in the timeframe they need because everything has sped up. Now, it is interesting because Canada has also, in many respects, become a leading voice and a leading industrial nation even within the European Defense Pact. So much of that testimony was applied over into NATO. I was invited also by the Prime Minister's office to attend the NATO summit in Turkey, along with six other Canadian defense executives.

Speaker #3: And one, to help industrialize the military complex in Canada, but two, to help ensure that they are able to get the equipment they need in the timeframe they need, because everything is sped up.

Speaker #3: Now, it's interesting because Canada has also, in many respects, become a leading voice and a leading industrial nation, even within the European pact. So much of that testimony was applied over into NATO.

Speaker #3: I was invited also by the Prime Minister's Office to attend the NATO summit in Turkey, along with six other Canadian defense executives. And it was probably one of the most productive and insightful trips that I've ever had the pleasure of being on, with direct contact with multiple world leaders, talking specifically about procurement cycles, where we're at in the drone space, and what are the things that we need to do to be effective long term.

Cameron Chell: It was probably one of the most productive, insightful trips that I have ever had the pleasure of being on, with direct contact with multiple world leaders, talking specifically about procurement cycles, where we are at in the drone space, what are the things that we need to do to be effective long-term. Not next quarter, but what do we need to do to build a successful long-term industrial base? So it is premature to say right now, but you will see massive procurement coming out of the Canadian market, even by the end of this year, which is another reason that our procurement and revenue cycle will see a significant bulge in it, because we have had to remain measured in order to meet that demand on a timeline that is going to be required of us.

Speaker #3: Not next quarter, but what do we need to do to build a successful long-term industrial base? So it's premature to say right now, but you will see massive procurement coming out of the Canadian market, even by the end of this year, which is another reason that our procurements and revenue cycle will see a significant bulge in it.

Cameron Chell: So it is premature to say right now, but you will see massive procurement coming out of the Canadian market, even by the end of this year, which is another reason that our procurement and revenue cycle will see a significant bulge in it, because we have had to remain measured in order to meet that demand on a timeline that is going to be required of us. Again, we have worked ourselves into a very privileged situation to be able to serve the people that serve, and we are hopefully going to be able to do the job that is being asked of us. At this point, I am going to turn it over to our CFO, Paul Sun, to run through the financial highlights. Paul?

Speaker #3: Because we've had to remain measured in order to meet that demand on a timeline that's going to be required of us. So again, we've worked ourselves into a very privileged situation to be able to serve the people that serve, and hopefully we're going to be able to do the job that's being asked of us.

Cameron Chell: Again, we have worked ourselves into a very privileged situation to be able to serve the people that serve, and we are hopefully going to be able to do the job that is being asked of us. At this point, I am going to turn it over to our CFO, Paul Sun, to run through the financial highlights. Paul?

Speaker #3: At this point, I'm going to turn it over to our financial highlights. Paul? Yeah. Thanks, Cam. Thanks, everyone, for joining. So, yeah, this first slide here will look at a snapshot of the second quarter, comparing it to the year over year.

Paul Sun: Yeah. Thanks, Cam. Thanks everyone for joining. This first slide here, we will look at a snapshot of Q2, comparing it to the year-over-year quarter last year. So revenue, as Cam mentioned, 26% up to CAD 2.7 million from CAD 2.1 million in Q2 of 2025. Q2 revenue comprised of CAD 2.6 million in product sales with CAD 100,000, or the balance coming from drone services. Gross profit, CAD 533.1 thousand compared to CAD 504 thousand in Q2 of last year. We did have a one-time non-cash write-down of inventory of CAD 43.7 thousand, and otherwise would have been CAD 576.8 thousand compared to the same period last year. Where there was a one-time inventory write-down of CAD 10.4 thousand, making the adjusted gross profit of CAD 515,000 last year. Adjusted gross margin for Q2 was 21.7%, compared to last year's adjusted number of 24.3%.

Speaker #3: Quarter last year. So revenue, as Cam mentioned, was up 26% to $2.7 million from $2.1 million in the second quarter of '25. Second quarter revenue comprised $2.6 million in product sales, with $100,000, or the balance, coming from drone services.

Speaker #3: Gross profit was $533.1 thousand compared to $504 thousand in Q2 of last year. We did have a one-time non-cash write-down of inventory of $43.7 thousand, and otherwise, gross profit would have been $576.8 thousand. In the same period last year, there was a one-time inventory write-down of $10.4 thousand, making the adjusted gross profit $515 thousand last year.

Speaker #3: Adjusted gross margin for Q2 was 21.7%, compared to last year's adjusted number of 24.3%. This was a result of products and services mix comparing the two quarters, as some products have different margin profiles than others.

Paul Sun: This was a result of products and services mix comparing the two quarters, as some products have different margin profiles than others. Total comprehensive loss for the quarter was CAD 11.8 million, compared to a loss of CAD 4.7 million in the same period last year. This quarter does include that non-cash write-down of inventory of the CAD 43.7 thousand and a small fair value of derivative liability loss of CAD 8.9 thousand. You recall, that is from a 24 February financing that we did, where it is just the way we report functionally in Canadian, so we have to account for that as a derivative. The loss otherwise would have been a comprehensive loss of CAD 11.7 million versus an adjusted loss of CAD 4.6 million in the same quarter of 2025. Increase is primarily due to higher office and admin cost, R&D, share-based comp, professional fees, travel, and wages.

Speaker #3: Total comprehensive loss for the quarter was $11.8 million, compared to a loss of $4.7 million in the same period last year. This quarter does include that non-cash write-down of inventory of $43.7 million, and a small fair value of derivative liability loss of $8.9 thousand.

Speaker #3: You'll recall that's from a February 24 financing that we did, where it's just the way we report functionally in Canadian. So we have to account for that as a derivative.

Paul Sun: You recall, that is from a 24 February 2026 financing that we did, where it is just the way we report functionally in Canadian, so we have to account for that as a derivative. The loss otherwise would have been a comprehensive loss of CAD 11.7 million versus an adjusted loss of CAD 4.6 million in the same quarter of 2025. Increase is primarily due to higher office and admin cost, R&D, share-based comp, professional fees, travel, and wages.

Speaker #3: So the loss otherwise would have been a comprehensive loss of $11.7 million versus an adjusted loss of $4.6 million. In the same quarter of 2025.

Speaker #3: The increase is primarily due to higher office and admin costs, R&D, share-based compensation, professional fees, travel, and wages. And we can go to the next slide, please, to review a quarter-over-quarter change.

Paul Sun: If we could go to the next slide, please, to do a quarter over quarter change. Looks good. Revenue for Q2 was up 15.2% to CAD 2.7 million, again, compared to the CAD 2.3 million for Q1 of this year in 2026, mainly due to higher product sales. Gross margin for Q2 was 20% compared to 15% in Q1 of 2026. However, if we back out that one-time inventory write-down that I mentioned before, gross margin for Q2 would have been 21.7% compared to 19.6%, adjusting for non-cash items in the previous quarter. Total comprehensive loss for Q2, again CAD 11.8 million, compared to a comprehensive loss of CAD 5.7 million for Q1 of 2026. Of course, you recall we had that loss in fair value of derivative liability of CAD 8.9 thousand and the write-down of inventory of CAD 43.7 thousand.

Paul Sun: If we could go to the next slide, please, to do a quarter-over-quarter change. Looks good. Revenue for Q2 was up 15.2% to CAD 2.7 million, again, compared to the CAD 2.3 million for Q1 of this year in 2026, mainly due to higher product sales. Gross margin for Q2 was 20% compared to 15% in Q1 of 2026. However, if we back out that one-time inventory write-down that I mentioned before, gross margin for Q2 would have been 21.7% compared to 19.6%, adjusting for non-cash items in the previous quarter. Total comprehensive loss for Q2, again CAD 11.8 million, compared to a comprehensive loss of CAD 5.7 million for Q1 of 2026. Of course, you recall we had that loss in fair value of derivative liability of CAD 8.9 thousand and the write-down of inventory of CAD 43.7 thousand.

Speaker #3: Looks good. Yeah. So, revenue for Q2 was up 15.2%, to $2.7 million, compared to $2.3 million for Q1 of this year in '26, mainly due to higher product sales.

Speaker #3: Gross margin for Q2 was 20% compared to 15% in Q1 of '26. However, if we back out that one-time inventory write-down that I mentioned before, gross margin for Q2 would have been 21.7% compared to 19.6%—adjusting for non-cash items in the previous quarter.

Speaker #3: Total comprehensive loss for Q2, again, was $11.8 million compared to a comprehensive loss of $5.7 million for Q1 of '26. And of course, you'll recall we had that loss in fair value of derivative liability of $8.9 thousand and the write-down of inventory of $43.7 thousand.

Speaker #3: So, Q2 would have been $11.7 million, compared to a loss of $6.6 million, excluding non-cash adjustments, in Q1 of this year. Again, the increase quarter over quarter was primarily due to the same factors: higher office and admin costs, R&D, share issuance costs, professional fees, travel, and wages, as the company continues to scale.

Paul Sun: So Q2 would have been CAD 11.7 million compared to a loss of CAD 6.6 million, excluding non-cash adjustments in Q1 of this year. Again, increase in quarter over quarter was primarily due to the same factors, being high opposite admin costs, R&D, share issuance costs, professional fees, travel, and wages as the company continues to scale, as per Cam's earlier comments. Moving to the last financial slide here, I think we got a snapshot of the balance sheet. You can see total assets increased from CAD 101.3 million to CAD 154 million from the end of the year, largely due to the increase in cash. You recall we did do a relatively large financing in February of this year. The working capital surplus, as at 30 June, was CAD 144 million versus CAD 95.2 million from the end of 2025.

Paul Sun: So Q2 would have been CAD 11.7 million compared to a loss of CAD 6.6 million, excluding non-cash adjustments in Q1 of this year. Again, increase in quarter-over-quarter was primarily due to the same factors, being high opposite admin costs, R&D, share issuance costs, professional fees, travel, and wages as the company continues to scale, as per Cam's earlier comments. Moving to the last financial slide here, I think we got a snapshot of the balance sheet. You can see total assets increased from CAD 101.3 million to CAD 154 million from the end of the year, largely due to the increase in cash. You recall we did do a relatively large financing in February of this year. The working capital surplus, as at 30 June, was CAD 144 million versus CAD 95.2 million from the end of 2025.

Speaker #3: As per Cam's earlier comments, moving to the last financial slide here, I think we've got a snapshot of the balance sheet. So, you can see total assets increased from $101.3 million to $154 million.

Speaker #3: From the end of the year, largely due to the increase in cash. You'll recall we did a relatively large financing in February of this year.

Speaker #3: The working capital surplus as at June 30th was $144 million, versus $95.2 million at the end of 2025. Shareholder equity was $148.9 million at quarter end, compared to $96.6 million at the end of last year.

Paul Sun: Shareholder equity was CAD 148.9 million at quarter end, compared to CAD 96.6 million at the end of last year. However, both working capital and shareholders' equity would have been a little bit higher if we exed out those non-cash fair value of derivative liability that I mentioned earlier for the quarter as well as at year-end. You can see we continue to have minimal debt, and our cash balance at the end of this quarter was CAD 131.9 million compared to CAD 90.2 million at the end of 2025. As again, we did that February financing. With that, I will pass it back to you, Cam.

Speaker #3: However, both working capital and shareholders' equity would have been a little bit higher if we excluded those non-cash fair value of derivative liability that I mentioned earlier.

Speaker #3: For the quarter, as well as at year end, you can see we continue to have minimal debt, and our cash balance at the end of this quarter was $131.9 million, compared to $90.2 million at the end of '25.

Speaker #3: As again, we did that February financing. And with that, I'll pass it back to you, Cam.

Speaker #1: Great. Thank you, Paul. I appreciate it.

Cameron Chell: Great. Thank you, Paul. Appreciate it.

Speaker #3: No problem.

Paul Sun: No problem.

Speaker #1: Just a super quick review. This is our core line here, along with three additional products. So, we've got the Flex FPV, the APEX, the Commander, and the heavy lift drone. That heavy lift also comes in a hybrid called the Outrider, which is up to seven-hour flight time, with a 67-kilogram payload capacity.

Cameron Chell: Just a super quick review. This is our core line here, along with two additional, actually three additional products. We've got the Flex FPV, the APEX, the Commander, the Heavy Lift drone. That Heavy Lift also comes in a hybrid called the Outrider, which is up to 7-hour flight time, with a 67-kilogram payload capacity. The Orca, the beginning of our fixed wing line, our medium and long range strike. This is a currently short range strike. Short range we're calling 100 nautical miles. Depending on the area that you're working in, 100 nautical miles would actually be about a medium range strike zone, strike drone, in the Ukrainian theater. But in the Pacific theater, that's a short range.

Speaker #1: And the Orca, the beginning of our fixed-wing line, our medium and long-range strike. This is currently short-range strike—short-range we're calling 100 nautical miles.

Speaker #1: Depending on the area that you're working in, 100 nautical miles would actually be about a medium-range strike zone—strike drone in the Ukrainian theater.

Speaker #1: But in the Pacific theater, that's a short range. And then, of course, we've got the Soten, which is unique with the modifications that we've made and the integrations that we've done. That is a unique product for us.

Cameron Chell: Of course we've got the SOTEN, which is a unique. With the modifications that we've made and the integrations that we've done, that is a unique product for us. You will continue to see product rollout from us over the coming quarters as well. I shouldn't say more than that, but pretty excited about the things that are being driven by customer demand and where we're positioning those things from both our military and, in particular, public safety customers. There are a number of questions that came in that Rolly provided to me, so I'm just going to read them here if that's okay, and do my best to answer them. Could you discuss Draganfly's strategy in the current UAS, counter-UAS market? Is Draganfly developing its own counter-UAS system, or do you expect these capabilities to be delivered primarily through strategic partnerships and integrations?

Speaker #1: You will continue to see product rollout from us over the coming quarters as well. I shouldn't say more than that, but I'm pretty excited about the things that are being driven by customer demand.

Speaker #1: And where we're positioning those things, from both our military and, in particular, public safety customers. So, there are a number of questions that came in that Rolly provided to me.

Speaker #1: So I'm just going to read them here, if that's okay, and do my best to answer them. So, could you discuss Draganfly's strategy and the current UAS/counter-UAS market?

Speaker #1: Is Draganfly developing its own counter-UAS system, or do you expect these capabilities to be delivered primarily through strategic partnerships and integrations? That's a great question.

Cameron Chell: Great question, and I think as one of the advantages that we have, or one of the strengths that we have, is the fact that we have been building drones for 27 years. We understand the vulnerabilities of them extremely well. We were doing counter-drone work 15 years ago. Well, it was 12 years ago, we built a drone that shot nets out using airbag explosives, under contract for AeroVironment, who was a big customer of ours at that time. We have seen many, many progressions and one-offs that we have built for different programs out there. We are developing our counter-drone capabilities. We have purposely not been trying to be first to market in this regard because it is, like the UAS space, a very fast-moving, continually changing space.

Speaker #1: And I think one of the advantages that we have, or one of the strengths that we have, is the fact that we've been building drones for 27 years.

Speaker #1: We understand the vulnerabilities of them extremely well. And we have—we were doing counter-drone work 15 years ago. Well, it was 12 years ago.

Speaker #1: We built a drone that shot nets out using airbag explosives, under contract for AeroVironment, who was a big customer of ours at that time.

Speaker #1: And so we've had, and we've seen, many, many progressions and one-offs that we've built for different programs. So, we are developing our counter-drone capabilities.

Speaker #1: We have purposely not tried to be first to market in this regard because it is like the UAS space—a very fast-moving, continually changing space.

Speaker #1: More because tactics from aggressors can change so quickly. And because it's such a nascent industry, the concepts of operations and the use cases all change super quickly.

Cameron Chell: More because tactics from aggressors can change so quickly, and because it is such a nascent industry, the concepts of operations and the use cases all change super quickly. We are definitely an innovative company. We do not try to be first movers, but we definitely take the time to do the research and be very innovative, so that when we are coming out with stuff, it works and can be really well deployed. Our counter-drone strategy is being able to have certain specific capabilities that are unique, but that can also be applied into existing product out there, so that we want to be able to use the existing well-established counter-drone companies to be able to be channel partners of ours.

Speaker #1: So, we didn't—we're definitely an innovative company. We don't try to be first movers, but we definitely take the time to do the research and be very innovative so that when we are coming out with stuff, it works.

Speaker #1: And can be really well deployed. So our counter-drone strategy is being able to have certain specific capabilities that are unique, but that can also be applied to existing products out there.

Speaker #1: So that we want to be able to use the existing well-established counter drone companies to be able to be channel partners of ours. Now, we've been very fortunate and won the Deb Group contract in order to build an ultra light, ultra mobile counter drone system for the Department of War.

Cameron Chell: Now, we have been very fortunate and won the DEVCOM contract in order to build an ultra-light, ultra-mobile counter-drone system, for the Department of Defense, which is a massive opportunity for us. As I mentioned before, hundreds of millions of CAD over the coming years is the potential. It is certainly on track. There are a couple of partners in there. There is a tether company that is in there that we have partnered with, in order to provide some of the unique capabilities of the system that we did propose. But for the most part, the hardcore IP underneath, the tracking system, how everything integrates together, the fact that it is modular, it can use multiple types of effectors, whether that be kinetic, soft kinetic, low collateral, RF, whatever the case is entirely unique to us. The short answer is that we are developing our counter-drone capabilities.

Speaker #1: Which is a massive opportunity for us. As I mentioned before, hundreds of millions of dollars over the coming years is the potential, and it's certainly on track.

Speaker #1: That is, there are a couple of partners in there. There's a tether company that's in there that we've partnered with in order to provide some of the unique capabilities of the proposed—or the system that we did propose.

Speaker #1: But for the most part, the hardcore IP underneath the tracking system, how everything integrates together, the fact that it's modular—it can use multiple types of effectors, whether that be kinetics, soft kinetic, low-collateral, RF, whatever the case is.

Speaker #1: "Is all pretty is entirely unique to us. So the short answer is we're developing our counter-drone capabilities. It will have proprietary aspects to it, but we're certainly not afraid of partnering, purchasing, or joint venturing."

Cameron Chell: It will have proprietary aspects to it, but we are certainly not afraid of partnering or purchasing or joint venturing. What we really care about is providing the greatest amount of safety to the people that we serve. That is the approach that we will continue to take on that. Do we think anything will come of our attending the NATO summit? The NATO summit was one of the most fascinating experiences. I have been to NATO summits before, not invited in at this level, for sure, and certainly not maybe in times that are as unpredictable as they are right now, with the types of budgets that are going into NATO-type countries.

Speaker #1: What we really care about is providing the greatest amount of safety to the people that we serve, and that's the approach that we'll continue to take on that.

Speaker #1: Do we think anything will come of our attending the NATO Summit? The NATO Summit was one of the most fascinating experiences, and I've been to NATO Summits before.

Speaker #1: Not invited in at this level, for sure. And certainly not, maybe at times that are as unpredictable as they are right now, with the types of budgets that are going into NATO-type countries.

Speaker #1: We will undoubtedly see more than significant results from this NATO summit and the ongoing NATO participation that we will have, and the unique position that Canada presents within NATO as being a North American country, but a part of the European defense pact.

Cameron Chell: We will undoubtedly see more than significant results from this NATO summit and the ongoing NATO participation that we will have, and the unique position that Canada presents within NATO as being a North American company, but a part of the European Defense Pact, and really having a leadership position there. Our international business, we are very fortunate that we have manufacturing in Canada and the United States, and representation in both countries, all the way up to a board level. About 85%-plus of our shareholders are US citizens. However, because of the domicile of Canada and what that affords us is the ability to have some really nice open doors, not just within NATO, but also within many Latin American, many Asian, many Eastern Bloc countries.

Speaker #1: And really having a leadership position there. So, our international business—we're very, very fortunate that we have manufacturing in Canada and the United States, and representation in both countries.

Speaker #1: All the way up to a board level, about 85% plus of our shareholders are US citizens. However, because of the domicile of Canada, what that affords us is the ability to have some really nice open doors, not just within NATO, but also within many Latin American, many Asian, and many Eastern bloc countries.

Speaker #1: So we see a tremendous amount of opportunity in those markets, and we see very strong support from the Canadian government in order to supply—and both for geopolitical, but also for economic reasons, we're getting some great support in that regard.

Cameron Chell: We see a tremendous amount of opportunity in those markets, and we see very strong support from the Canadian government in order to supply both for geopolitical but also for economic reasons. We are getting some great support in that regard. We will really start ramping up our capabilities within that regard. It was a fantastic trip and incredible learning for all of us. Is Canada going to be an important revenue source for us? Can we expect contracts to be announced? The answer to both of those is yes. We never planned in our original business plan that Canada would be an overwhelming, almost even material, revenue source for us, and it is really turning out to be quite the opposite. One, the budgets are very significant.

Speaker #1: So we'll really start ramping up our capabilities within that regard. So it was a fantastic trip and incredible learning for all of us. Is Canada going to be an important revenue source for us?

Speaker #1: Can we expect contracts to be announced? The answer to both of those is yes. We never planned in our original business plan that Canada would be an overwhelming, almost even material.

Speaker #1: Revenue source for us. And it's really turning out to be quite the opposite. One, the budgets are very significant. It's the 10th or 11th largest economy in the world that's literally deploying tens and tens of billions of dollars over very short periods of time, with the best talent that they've got in order to have these capabilities.

Cameron Chell: It is the 10th or 11th largest economy in the world that is literally deploying tens and tens of billions of CAD over very short periods of time, with the best talent that they have got in order to have these capabilities. Some very unique things about Canada is a massive coastline, so marine is becoming a specialty for us. Arctic, without question, is becoming a specialty for us, and Canada really wants to position itself as an Arctic expertise. It is geographically a big part of their responsibility, whether it be NORAD or their own sovereignty. So, pleasantly it is. Now that said, I do not want to take away for 1 second our commitment into the United States. We have facilities in Florida.

Speaker #1: Some very unique things about Canada are its massive coastline, so marine is becoming a specialty for us. The Arctic, without question, is becoming a specialty for us as well.

Speaker #1: And Canada really wants to position itself as an Arctic expert. And it is, geographically, a big part of their responsibility, whether it be NORAD or their own sovereignty.

Speaker #1: So yeah, so it pleasantly is. Now, that said, I don't want to take away for one second our commitment to the United States.

Speaker #1: We have facilities in Florida. We have additional facilities that will be very large, which will be stood up before the end of this year, along with personnel to meet the demand.

Cameron Chell: We have additional facilities that will be very large facilities that will be stood up before the end of the year, this year, along with personnel, to meet the demand that is there. I know there is that question as well, if the demand is there, why don't the numbers show it? It is intricate. The reality is we have just got to have that capacity for when the ball drops. The ball has dropped, and it is dropping. We are probably maybe 3 or 4 quarters behind some of the other clumps out there in terms of the ramp that they saw. However, I think because of some of the international opportunities, we have certainly got as large, if not larger, total TAM to be able to provide. Also because we have got a full product suite, which we spent a lot of time building out.

Cameron Chell: We have additional facilities that will be very large facilities that will be stood up before the end of the year, this year, along with personnel, to meet the demand that is there. I know there is that question as well, if the demand is there, why don't the numbers show it? It is intricate. The reality is we have just got to have that capacity for when the ball drops. The ball has dropped, and it is dropping. We are probably maybe three or four quarters behind some of the other clumps out there in terms of the ramp that they saw. However, I think because of some of the international opportunities, we have certainly got as large, if not larger, total TAM to be able to provide. Also because we have got a full product suite, which we spent a lot of time building out.

Speaker #1: That is there. And I know there's that question as well—if the demand is there, why don't the numbers show it? And it is, it's intricate.

Speaker #1: The reality is, we've just got to have that capacity for when the ball drops—and the balls drop. And it's dropping. And so, we're probably maybe three or four quarters behind some of the other comps out there in terms of the ramp that they saw.

Speaker #1: However, I think because of some of the international opportunities, we've certainly got as large, if not larger, total TAM to be able to provide.

Speaker #1: And also because we've got a full product suite, which we've spent a lot of time building out. Again, being that first mover is not the most important thing to us.

Cameron Chell: Again, being that first mover is not the most important thing to us. Being a complete mover is the most important thing to us. Buyers are becoming much more discerning very quickly. Over the last number of years of education, something that flew could be sold. However, that is not the case anymore. They want to have these integrated systems to provide and execute on integrated missions, whether that is public safety, military, or frankly, even industrial. Have we seen an impact from the Skip Dynamix acquisition? Yeah. The impact certainly isn't on the revenue side, but that wasn't the objective. The objective here was the talent, both from a pure intellect standpoint, also from an integrity standpoint, and also from a contact standpoint. It was the technology itself.

Speaker #1: Being a complete mover is the most important thing to us. So buyers are becoming much more discerning very quickly. And so, over the last number of years of education, something that flew could be sold.

Speaker #1: However, that is not the case anymore. And so, they want to have these integrated systems to provide and execute on integrated missions. Whether that's public safety, military, or frankly, even industrial.

Speaker #1: So we've seen an impact from Skip Dynamics. Had we seen an impact from the Skip Dynamics acquisition? Yeah. Yeah, the impact certainly isn't on the revenue side, but that wasn't the objective.

Speaker #1: The objective here was the talent—both from a pure intellect standpoint, also from an integrity standpoint, and also from a contact standpoint. And it was, it was the technology itself.

Speaker #1: We are thrilled around the thermoplastic technology , which , you know , reduces the weight and the cost and the scalability of these things , you know , is just it's like nothing else I've seen .

Cameron Chell: We are thrilled around the thermoplastic technology, which reduces the weight and the cost and the scalability of these things. It's like nothing else I've seen out there. That is a really, really important aspect of why we. We've seen a big impact and we're going to see very sizable orders because of it. Orders not just in the particular Orca or Dolphin product lines, but also the learnings that have been applied, are being applied, excuse me, into the other areas of our product line. What has been the feedback and initial interest in the drone programs from IACLEA? Do we have an idea of what kind of revenue that these partnerships will bring? The Small & Rural Law Enforcement Executives Association, SRLEEA. Listen, that represents 80% of the police forces in the United States. It's just that simple.

Speaker #1: Out there So that that is really , really important aspect of why we . And so we , yeah , we've seen a big impact .

Speaker #1: And we're , we're going to see very sizable orders because of it . And , and orders , not just in the particular orca or dolphin product lines , but also the learnings that have been applied are being applied .

Speaker #1: Excuse me, into the other areas of our product line. So, what has been the feedback and initial interest in the drone programs from IKEA?

Speaker #1: Do we have an idea of what kind of revenue that these partnerships will bring So the small and also the small rural Listen , that that represents 80% of the police forces in the United States .

Speaker #1: Like it's just that simple . Like it's just not something , you know , we're just trying to be where other people aren't , aren't number one , and aren't thinking are important .

Cameron Chell: It's just not something. We're just trying to be where other people aren't, number 1, and aren't thinking are important. The use cases in some of those areas are different than pure urban areas, but they lend themselves to the type of work that we have traditionally done. Traditionally, our drones have been a bit bigger, longer distances, heavier payloads, and when you're in those rural areas, that's exactly what you've got to do. You're going to be looking at situations where a small little Mavic 3 or ISR drone just doesn't. It flies for 15 minutes. I mean, that's not going to get you across a farmer's field, much less across the county.

Speaker #1: Now, the use cases and some of those areas are different than pure urban areas, but they lend themselves to the type of work that we have traditionally done.

Speaker #1: Traditionally , our drones have been a bit bigger , longer distances , heavier payloads . And when you're in those rural areas , that's exactly what you've got to do .

Speaker #1: So you're going to be looking at situations where , you know , a small little Mavic three or , you know , ISR drone , just doesn't like .

Speaker #1: So it flies for 15 minutes. I mean, that's not going to get you across a farmer's field, much less across the county.

Speaker #1: So , you know , so those are the types of things that we're looking at . And , and we think it's going to have a very big impact because like I say , it's 80% of the police force is out there , fit into that category that I wouldn't say we've got locked up .

Cameron Chell: Those are the types of things that we're looking at, and we think it's going to have a very big impact because, like I say, it's 80% of the police forces out there fit into that category that I wouldn't say we've got locked up. That would be. But we got a stranglehold on, and hopefully we'll be able to provide the right type of service to start to continue to earn that position. As Rolly mentioned, we are available as much as possible and reasonable to answer any questions. We appreciate everybody's time, and thank you for the consideration that you've given us today.

Speaker #1: That would be . But , but , but we got to stranglehold on and hopefully we'll , we'll be able to provide the right type of service to , to continue to earn that position .

Operator: Goodbye

Q2 2026 Draganfly Inc Earnings Call

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