Draganfly Inc (DPRO) Stock Forecast & Price Target

Draganfly is viewed favorably because its record revenue quarter, 1Q26 revenue growth of 49.4% YoY, and accelerating wins in public safety, defense, and commercial markets suggest the business is scaling across multiple demand channels. The company’s sizable cash position of roughly $132M to C$147.3M provides greater financial flexibility for M&A, product expansion, and capacity building, while recent deals like Skip Dynamix and the Draganfly Blitz payload broaden its technology stack and addressable missions. Although some U.S. orders have shifted into 2027, the combination of Canada’s unprecedented defense spending, a growing pipeline, and potential programs such as DEVCOM and FlexFPV supports the view that revenue growth and strategic value remain intact.

Draganfly is facing a negative setup because its 2Q26 revenue of CAD $2.7M, while up 26% Y/Y, still missed consensus CAD $3.6M and was accompanied by deteriorating profitability, with gross margin falling to 20.0%, adjusted EBITDA loss widening to CAD $10.5M, and net loss reaching CAD $12M. Operating expenses climbed to CAD $16.1M as the company increased spending on personnel, R&D, travel, and infrastructure, while free cash flow was negative CAD $14M, signaling that scaling is currently consuming cash faster than revenue is expanding. Although the CAD $132M cash balance provides near-term flexibility, slower-than-expected defense spending, regulatory delays in commercial drone approvals, and intense competition could keep growth uneven and pressure margins further.