Va couve , BC., Nov. 10, 2026 (GLOBE NEWSWIRE) — D aga fly I c. (NASDAQ: DPRO) (CSE: DPRO) (FSE: 3U8) (“D aga fly” o the “Compa y”), a awa d-wi i g, i dust y-leadi g d o e solutio s a d systems develope , is pleased to a ou ce its thi d qua te fi a cial esults.
Key Fi a cial a d Ope atio al Highlights fo Q3 2026:
- Reve ue fo the thi d qua te of 2026 was $2,048,425, which ep ese ts a 5.0% yea ove yea dec ease p ima ily att ibuted to se vices eve ues. P oduct sales of $1,612,329 we e almost flat compa ed to the same pe iod last yea .
- G oss p ofit fo Q3 2026 was $128,957, dow 69.4% f om $420,947 fo the same pe iod last yea . G oss ma gi pe ce tage fo Q3 2026 was 6.3% compa ed to 19.5% i Q3 2025. G oss p ofit would have bee $495,566 a d g oss ma gi would have bee 24.2%, ot i cludi g a o e-time o -cash w ite dow of i ve to y of $366,609 i Q3 2026. G oss p ofit would have bee $464,284 a d g oss ma gi would have bee 21.5%, ot i cludi g a o e-time o -cash w ite dow of i ve to y of $43,337 i Q3 2025. Afte excludi g the o e-time o -cash w ite-dow s, the i c ease i g oss p ofit a d g oss ma gi yea ove yea is due to the sales mix of the p oducts a d se vices sold.
- The comp ehe sive loss fo the pe iod of $13,032,744 i cludes o -cash cha ges comp ised of a egative cha ge i fai value de ivative of $56,707 a d a w ite dow of i ve to y of $366,609 a d would othe wise be a comp ehe sive loss of $12,609,428 compa ed to a adjusted comp ehe sive loss of $3,579,510 fo the same pe iod last yea . The p ima y co t ibuto s to the yea -ove -yea i c ease a e i c eased office a d miscella eous, sha e-based payme ts, t avel, a d employee a d ma ageme t costs.
- Cash bala ce as at Septembe 30, 2026, of $128,605,465 compa ed to $90,156,821 as at Decembe 31, 2025.
Busi ess a d St ategic Update
Du i g the thi d qua te , D aga fly co ti ued to p io itize la ge -scale defe ce a d gove me t oppo tu ities, espo di g to a d pa ticipati g i ove a doze of equests fo p oposals a d dow selectio p ocesses. I additio , D aga fly has had to mi dfully ma age p oductio volumes i p epa atio fo expected p oductio equi eme ts u de its existi g co t acts. As a esult, the Compa y is i c easi gly focusi g its esou ces o these exte sive p og ams to secu e these sizeable co t acts.
Du i g this pe iod, the Compa y achieved sig ifica t ope atio al milesto es, i cludi g its selectio by the Gove me t of Ca ada to supply up to 5,000 tactical ISR u ma ed ae ial systems to the Ca adia A med Fo ces, a d qualificatio ac oss all five capability st eams of Ca ada’s Defe ce D o e I itiative Ma ketplace, a d the adva ceme t of its U.S. Heavy Lift ope atio s th ough a FAA exemptio .
These developme ts eflect the Compa y’s p og ess i expa di g its positio withi the defe ce a d gove me t secto s. D aga fly emai s focused o fulfilli g existi g co t actual commitme ts, adva ci g la ge p ocu eme t oppo tu ities a d t a slati g these effo ts i to sustai able eve ue g owth ove time.
Ma ageme t Comme ta y
“We a e at a impo ta t stage i D aga fly’s evolutio as we positio the Compa y to compete fo la ge , mo e complex defe ce a d gove me t p og ams. This has equi ed us to make delibe ate decisio s about whe e we di ect ou esou ces, p io itizi g oppo tu ities with the pote tial to c eate g eate lo g-te m value ove ce tai sho te -te m eve ue oppo tu ities,” said Came o Chell, Chief Executive Office of D aga fly.
“While these p og ams i volve lo ge p ocu eme t cycles a d do ot always t a slate i to immediate eve ue, we a e begi i g to see mea i gful p og ess f om this app oach. Ou selectio by the Ca adia A med Fo ces, alo g with ou expa di g p ese ce i the U.S. defe ce ma ket, eflects the capabilities, elatio ships a d ma ket positio we have bee buildi g. Ou p io ity is ow to execute o these oppo tu ities, delive fo ou custome s a d t a slate that p og ess i to sustai able g owth.”
Ope atio al a d Co po ate Highlights
- D aga fly a ou ced its selectio by the Small & Ru al Law E fo ceme t Executives Associatio (SRLEEA) to suppo t a d o e impleme tatio a d eadi ess p og am fo small, u al a d t ibal law e fo ceme t age cies ac oss the U ited States. The i itiative expa ds D aga fly’s p ese ce i the public safety secto a d suppo ts the adoptio of u ma ed ae ial systems by law e fo ceme t age cies.
- D aga fly a ou ced the appoi tme t of B igadie Ge e al AJ Pasagia USMC (Ret.) as P eside t of D aga fly Defe se USA. The appoi tme t st e gthe s the Compa y’s U.S. defe ce leade ship a d suppo ts its expa di g e gageme t with U.S. milita y, gove me t a d defe ce custome s.
- D aga fly a ou ced that it had eceived a Sectio 44807 exemptio f om the Fede al Aviatio Admi ist atio (FAA), autho izi g specified comme cial ope atio s of its Heavy Lift d o e platfo m above the sta da d 55-pou d weight th eshold i U.S. ai space. The exemptio ep ese ts a egulato y milesto e suppo ti g expa ded deployme t oppo tu ities fo the Compa y’s Heavy Lift tech ology.
- D aga fly a ou ced its qualificatio ac oss all five capability st eams of Ca ada’s Defe ce D o e I itiative Ma ketplace, positio i g the Compa y to compete fo futu e Ca adia defe ce p ocu eme t oppo tu ities. The qualificatio eflects D aga fly’s b oad u ma ed systems capabilities a d its co ti ued e gageme t with the Ca adia defe ce secto .
- D aga fly a ou ced the appoi tme t of Colo el Kevi Leblo d (Ret.) as Vice-P eside t, Ca adia Defe ce a d Secu ity. With exte sive expe ie ce i the Royal Ca adia Ai Fo ce, NATO, NORAD a d defe ce p ocu eme t, his appoi tme t st e gthe s D aga fly’s Ca adia defe ce leade ship a d suppo ts the Compa y’s e gageme t with gove me t a d milita y custome s.
- D aga fly a ou ced st ategic i vestme ts totalli g US$10 millio , co sisti g of US$5 millio f om U usual Machi es a d US$5 millio f om a leadi g U.S. i vestme t fu d. The i vestme ts suppo t the Compa y’s fi a cial positio a d its co ti ued executio of g owth i itiatives ac oss the defe ce, public safety a d comme cial ma kets.
D aga fly will hold a sha eholde update, a d ea i gs call o Novembe 10, 2026, at 3:30 p.m. PCT / 5:30 p.m. EST.
Regist atio fo the call ca be do e He e
Selected fi a cial i fo matio is outli ed below a d should be ead with D aga fly’s co solidated fi a cial stateme ts fo the qua te e ded Septembe 30, 2026, a d associated ma ageme t discussio a d a alysis, which will be available u de the Compa y’s p ofile o SEDAR+ at www.seda plus.ca a d filed o EDGAR at www.sec.gov.
| Th ee mo ths e ded Septembe 30, | Ni e mo ths e ded Septembe 30, | 2026 | 2025 | 2026 | 2025 | Total eve ues | $ | 2,048,425 | $ | 2,155,993 | $ | 7,025,015 | $ | 5,818,963 | G oss ma gi (as a % of eve ues) (1) | 6.3 | % | 19.5 | % | 14.4 | % | 21.2 | % | Net loss | (12,831,393 | ) | (5,169,797 | ) | (30,493,093 | ) | (13,356,783 | ) | Net loss pe sha e ($) | – Basic | (0.35 | ) | (0.25 | ) | (0.86 | ) | (1.17 | ) | – Diluted | (0.35 | ) | (0.25 | ) | (0.86 | ) | (1.17 | ) | Comp ehe sive loss | (13,032,744 | ) | (5,425,004 | ) | (30,575,692 | ) | (13,608,350 | ) | Comp ehe sive loss pe sha e ($) | – Basic | (0.35 | ) | (0.26 | ) | (0.87 | ) | (1.20 | ) | – Diluted | (0.35 | ) | (0.26 | ) | (0.87 | ) | (1.20 | ) | Cha ge i cash a d cash equivale ts i cludi g effect of excha ge ates | $ | (3,302,732 | ) | 47,310,289 | $ | 38,448,644 | $ | 63,628,939 |
(1) G oss p ofit (as a % of eve ues) would have bee 24.2% a d 21.5% ot i cludi g a o -cash w ite-dow of i ve to y of $366,609 a d $43,337 espectively fo the th ee-mo th pe iod e di g Septembe 30, 2026 a d 2025. G oss p ofit (as a % of eve ues) would have bee 21.7% a d 21.5% ot i cludi g a o -cash w ite-dow of i ve to y of $516,112 a d of $15,091 espectively fo the i e-mo th pe iod e di g Septembe 30, 2026 a d 2025.
| As at | Septembe 30, 2026 | Decembe 31, 2025 | Total assets | $ | 158,499,277 | $ | 101,387,873 | Wo ki g capital | 144,232,724 | 95,242,327 | Total o -cu e t liabilities | 1,378,977 | 174,763 | Sha eholde s’ equity(1) | $ | 150,459,326 | $ | 96,596,795 | Numbe of sha es outsta di g | 39,142,756 | 29,344,775 |
(1) Sha eholde s’ equity a d wo ki g capital as at Septembe 30, 2026, i cludes a fai value of de ivative liability of $376,515 (2025 — $492,470) a d would othe wise be $150,835,841 (2025 — $97,089,265) a d $144,609,239 (2025 — $95,734,797), espectively.
| 2026 Q3 | 2026 Q2 | 2025 Q3 | Reve ue | $ | 2,048,425 | $ | 2,664,237 | $ | 2,155,993 | Cost of sales(2) | $ | (1,919,468 | ) | $ | (2,131,088 | ) | $ | (1,735,046 | ) | G oss p ofit(3) | $ | 128,957 | $ | 533,149 | $ | 420,947 | G oss ma gi – pe ce tage | 6.3 | % | 20.0 | % | 19.5 | % | Ope ati g expe ses | $ | (13,583,099 | ) | $ | (16,116,460 | ) | $ | (5,346,776 | ) | Ope ati g (loss) i come | $ | (13,454,142 | ) | $ | (15,583,311 | ) | $ | (4,925,829 | ) | Ope ati g loss pe sha e — basic | $ | (0.36 | ) | $ | (0.42 | ) | $ | (0.24 | ) | Ope ati g loss pe sha e — diluted | $ | (0.36 | ) | $ | (0.42 | ) | $ | (0.24 | ) | Othe i come (expe se) | $ | 622,749 | $ | 3,550,477 | $ | (243,968 | ) | Cha ge i fai value of de ivative liability (1) | $ | (56,707 | ) | $ | (8,931 | ) | $ | 1,837,618 | Othe comp ehe sive i come (loss) | $ | (201,351 | ) | $ | 201,170 | $ | (255,207 | ) | Comp ehe sive loss | $ | (13,032,744 | ) | $ | (11,831,664 | ) | $ | (5,425,004 | ) | Comp ehe sive i come (loss) pe sha e — basic | $ | (0.35 | ) | $ | (0.32 | ) | $ | (0.26 | ) | Comp ehe sive i come (loss) pe sha e — diluted | $ | (0.35 | ) | $ | (0.32 | ) | $ | (0.26 | ) |
(1) I cluded i othe i come (expe se)(2) Cost of sales i cludes a o -cash i ve to y w ite-dow i Q3 2026 of $366,609 a d i Q2 2026 of $43,662 a d would have bee $1,552,859 i Q3 2026 a d $2,087,426 i Q2 2026 befo e these w ite-dow s.(3) G oss p ofit would have bee $495,566 i Q3 2026 a d $576,811 i Q2 2026 without the w ite-dow s i ote 2 above.(4) Cost of sales i cludes o -cash i ve to y w ite-dow of $43,337 i Q3 2025 a d would have bee a d $1,691,709 i Q3 2025 befo e this w ite-dow .(5) G oss p ofit would have bee $464,284 i Q3 2025 without the w ite-dow i ote 4 above.
About D aga fly
D aga fly I c. (NASDAQ: DPRO; CSE: DPRO; FSE: 3U8) is a Ca adia -headqua te ed develope of adva ced d o e solutio s, u ma ed systems a d softwa e se vi g custome s ac oss No th Ame ica a d globally. With mo e tha 27 yea s of expe ie ce i u ma ed systems, D aga fly develops a d delive s tech ologies spa i g ae ial platfo ms, auto omy, se si g, payload i teg atio a d missio -specific solutio s fo defe ce, public safety a d comme cial applicatio s.
The Compa y combi es e gi ee i g, ma ufactu i g, softwa e a d systems-i teg atio capabilities to suppo t custome s ope ati g i complex a d missio -c itical e vi o me ts. D aga fly is d ive by a missio to p ovide i ovative, eliable solutio s that save time, mo ey a d lives.
Media Co tact
E ika RacicotEmail: media@d aga fly.com
Compa y Co tact
Came o ChellChief Executive Office (306) 955-9907i fo@d aga fly.com
Note Rega di g No -GAAP Measu es
I this p ess elease we desc ibe ce tai i come a d expe se items that a e u usual o o – ecu i g. The e a e te ms ot defi ed by I te atio al Fi a cial Repo ti g Sta da ds (“IFRS”). Ou usage of these te ms may va y f om the usage adopted by othe compa ies. Specifically, g oss p ofit a d g oss ma gi a e u defi ed te ms by IFRS that may be efe e ced he ei . We p ovide this detail so that eade s have a bette u de sta di g of the sig ifica t eve ts a d t a sactio s that have had a impact o ou esults.
Th oughout this elease, efe e ce is made to “g oss p ofit”, a d “g oss ma gi ,” which a e o -IFRS measu es. Ma ageme t believes that g oss p ofit, defi ed as eve ue less ope ati g expe ses, is a useful suppleme tal measu e of ope atio s. G oss p ofit helps p ovide a u de sta di g o the level of costs eeded to c eate eve ue. G oss ma gi illust ates the g oss p ofit as a pe ce tage of eve ue. Reade s a e cautio ed that these o -IFRS measu es may ot be compa able to simila measu es used by othe compa ies. Reade s a e also cautio ed ot to view these o -IFRS fi a cial measu es as a alte ative to fi a cial measu es calculated i acco da ce with IFRS. Fo mo e i fo matio with espect to fi a cial measu es which have ot bee defi ed by IFRS, i cludi g eco ciliatio s to the closest compa able IFRS measu e, see the “No -GAAP Measu es a d Additio al GAAP Measu es” sectio of the Compa y’s most ece t MD&A which is available o SEDAR+.
Fo wa d-Looki g Stateme ts
This elease co tai s ce tai “fo wa d looki g stateme ts” a d ce tai “fo wa d-looki g i fo matio ” as defi ed u de applicable Ca adia a d U.S. secu ities laws. Fo wa d-looki g stateme ts a d i fo matio ca ge e ally be ide tified by the use of fo wa d-looki g te mi ology such as “may”, “will”, “expect”, “i te d”, ”estimate”, “a ticipate”, “believe”, “co ti ue”, “pla s” o simila te mi ology. Fo wa d-looki g stateme ts i this ews elease i clude, but a e ot limited to: stateme ts i espect of D aga fly’s defe ce a d gove me t st ategy a d its ability to t a slate it i to sustai able eve ue g owth; the Compa y’s pa ticipatio i equests fo p oposals a d dow -selectio p ocesses a d the outcome the eof; the timi g of p ocu eme t p ocesses a d thei impact o qua te ly eve ue; expected p oductio equi eme ts a d the Compa y’s ma ageme t of p oductio volume; the supply of systems to the Ca adia A med Fo ces, i cludi g the pote tial exe cise of co t act optio s; futu e Ca adia defe ce p ocu eme t oppo tu ities; Heavy Lift deployme t oppo tu ities u de the Compa y’s FAA exemptio ; the expected be efits of the Compa y’s ece t appoi tme ts, p og am selectio a d st ategic i vestme ts; a d the Compa y’s pa t e ships, capabilities, expe tise a d fi a cial co ditio . Fo wa d-looki g stateme ts a d i fo matio a e based o fo ecasts of futu e esults, estimates of amou ts ot yet dete mi able a d assumptio s that, while believed by ma ageme t to be easo able, a e i he e tly subject to sig ifica t busi ess, eco omic a d competitive u ce tai ties a d co ti ge cies. Fo wa d-looki g stateme ts a d i fo matio a e subject to va ious k ow a d u k ow isks a d u ce tai ties, ma y of which a e beyo d the ability of the Compa y to co t ol o p edict, that may cause the Compa y’s actual esults, pe fo ma ce o achieveme ts to be mate ially diffe e t f om those exp essed o implied the eby, a d a e developed based o assumptio s about such isks, u ce tai ties a d othe facto s set out he ei , i cludi g but ot limited to: the successful i teg atio of tech ology; the timi g a d outcome of gove me t a d defe ce p ocu eme t p ocesses; the isk that gove me t custome s do ot exe cise co t act optio s o educe, delay o ca cel o de s; the eceipt a d mai te a ce of egulato y app ovals a d exemptio s; the i he e t isks i volved i the ge e al secu ities ma kets; u ce tai ties elati g to the availability a d costs of fi a ci g eeded i the futu e; the i he e t u ce tai ty of cost estimates a d the pote tial fo u expected costs a d expe ses, cu e cy fluctuatio s; egulato y est ictio s, liability, competitio , loss of key employees a d othe elated isks a d u ce tai ties disclosed u de the headi g “Risk Facto s” i the Compa y’s most ece t fili gs filed with secu ities egulato s i Ca ada o the SEDAR+ website at www.seda plus.ca a d with the U.S. Secu ities a d Excha ge Commissio o the EDGAR website at www.sec.gov. The Compa y u de takes o obligatio to update fo wa d-looki g i fo matio except as equi ed by applicable law. Such fo wa d-looki g i fo matio ep ese ts ma ageme ts’ best judgme t based o i fo matio cu e tly available. No fo wa d-looki g stateme t ca be gua a teed a d actual futu e esults may va y mate ially. Acco di gly, eade s a e advised ot to place u due elia ce o fo wa d-looki g stateme ts o i fo matio .
