Draganfly Inc. (DPRO): Business Model Canvas [Dec-2025 Updated]

You're looking at Draganfly Inc.'s current setup, and honestly, the story right now is all about a major strategic pivot: they are betting big on defense by focusing on NDAA-compliant drone systems for the U.S. Army and DoD. This high-stakes play is currently financed by a significant war chest, showing nearly $69.9 million in cash as of Q3 2025, even as they posted a $5.4 million comprehensive loss that same quarter while chasing those big government contracts. To see exactly how they are structuring this shift-from key partnerships like Global Ordnance to their reliance on R&D-you need to dive into the full Business Model Canvas breakdown below.

Draganfly Inc. (DPRO) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Draganfly Inc. is building to drive its revenue, especially in the high-stakes defense and critical infrastructure sectors. These aren't just handshake deals; they involve embedding technology and supply chains directly with major clients.

The defense vertical is clearly a major focus, evidenced by recent contract wins and the strategic alignment with prime contractors. The company's Q3 2025 revenue was $2,155,993, with product sales-which heavily include these defense platforms-reaching $1,622,286, a 22.1% increase year-over-year. The cash position reflects recent financing to support this scaling, jumping to $69,881,348 as of September 30, 2025, up from $6,252,409 on December 31, 2024.

Here is a breakdown of the key entities Draganfly Inc. is partnering with to execute its strategy:

• U.S. Army and Department of Defense (DoD) for tactical drone systems.
• Global Ordnance, a U.S. Defense Logistics Agency (DLA) prime contractor.
• SafeLane Global Ltd. for global demining and aerial survey services.
• A Fortune 50 telecommunications company for emergency response UAVs.
• Autonome Labs for UAV-based demining mesh deployment systems.

The relationships with defense and critical infrastructure clients are structured to integrate Draganfly Inc.'s technology deeply into their operations, often involving localized support and compliance frameworks like the National Defense Authorization Act (NDAA).

Consider the defense-related partnerships, which are critical given the global military drone market is projected to hit $30.5 billion by 2035:

The work with the Fortune 50 telecommunications client is expanding, showing repeat business validation. The second order involves the Commander 3XL platform integrated with Unmanned Systems & Solutions Inc.'s (USaS) LEAP® tether system, which provides continuous power and high-bandwidth data connectivity. This is about enabling persistent aerial operations for infrastructure restoration.

For the humanitarian and demining space, the collaboration with Autonome Labs uses the Heavy Lift drone platform to deploy the M.A.G.I.C. (Mine and Ground Inert Clearance) mesh, aiming to speed up land clearance while keeping human teams safe. Also, the SafeLane Global agreement positions Draganfly Inc. to support global mine action, with SafeLane being one of only two private organizations licensed by the Ukrainian Ministry of Defense for clearance operations.

Finance: draft 13-week cash view by Friday.

Draganfly Inc. (DPRO) - Canvas Business Model: Key Activities

Manufacturing NDAA-compliant Unmanned Aerial Systems (UAS)

Draganfly Inc. operates AS9100- and ISO9001-certified production lines in the United States through a contract manufacturing partner. This focus supports the production of NDAA-compliant systems to meet rising demand for U.S.-made drones. Product sales contributed significantly to recent quarterly revenues.

The company secured a second major order from a Fortune 50 Telecommunications Company to expand its NDAA-Compliant Heavy Lift Drone Fleet. The Commander 3XL UAV is a key platform in this segment.

Research and Development (R&D) for AI and advanced sensor integration

Draganfly Inc. has actively expanded its R&D pipeline, supported by a US$13.75 million public offering. Key R&D activities include integration efforts with external partners.

• Collaboration with Volatus Aerospace to integrate advanced Bathymetric LiDAR technology with the Heavy Lift Drone for energy market data acquisition.
• Securing an FAA waiver allowing drone operations over people and moving vehicles, facilitating advanced urban environment operations.

Securing and fulfilling high-value U.S. government and defense contracts

Draganfly Inc. is positioned as a key player in the $13.8 billion military drone market due to recent contract wins. The company's platforms are being integrated into U.S. defense strategy.

The company's engagement with the Department of Defense is seen as a potential major revenue driver.

Expanding U.S. manufacturing capacity and testing facilities

Draganfly Inc. announced an expansion of its U.S. manufacturing footprint, capability, and capacity across multiple locations. This move provides resiliency and redundancy within the supply chain.

• Expansion includes additional AS9100- and ISO9001-certified manufacturing facilities and logistics locations.
• The company established a new U.S. facility in Tampa, Florida, near military and government clients.
• A new contract manufacturing deal is expected to quadruple production capacity by end-2026, supporting potential $100M+ annual output.

Providing specialized drone services and pilot training

Fulfillment of defense contracts includes comprehensive training components. The company is also engaged in public safety service delivery.

• Comprehensive training provided to Army personnel covering drone flight operation and on-the-ground manufacturing/maintenance.
• Selected for a pilot program by Arizona's Cochise County Sheriff's Department to support border operations.

Draganfly Inc. (DPRO) - Canvas Business Model: Key Resources

You're looking at the core assets Draganfly Inc. (DPRO) relies on to execute its strategy as of late 2025. These aren't just things they own; they are the differentiators that allow them to operate where others can't, especially in the sensitive defense and critical infrastructure sectors.

The most immediate, hard number you see is the liquidity position. As of September 30, 2025, Draganfly Inc. reported a cash balance of $69,881,348. That's nearly $70 million in the bank, a massive jump from the $6,252,409 they held at the end of December 2024. This capital fuels their expansion, including the new U.S. facility in Tampa, Florida, which was announced in Q1 2025 to be strategically near key military and government clients.

The hardware itself is a major resource, particularly due to compliance. Draganfly Inc. has 5-plus drone systems that are all NDAA-compliant. This compliance is a significant moat as the U.S. and NATO work to eliminate non-compliant Chinese systems from critical infrastructure.

Here's a breakdown of the key platform specifications and recent contract wins:

The regulatory approvals are just as critical as the hardware. You need the right permissions to fly in complex areas, and Draganfly Inc. has secured key Federal Aviation Administration (FAA) waivers. These are not minor exceptions; they allow for operations that were previously restricted under standard FAA Part 107 rules.

The specific regulatory achievements include:

• Secured waiver under 14 CFR §§ 107.39 for operations over human beings.
• Secured waiver under 14 CFR § 107.145 for operations over moving vehicles.
• The permissions cover a prescribed flight route over the city of Boston.

Beyond the physical assets, the intellectual property-the proprietary drone software and AI systems-is what enables mission-critical data processing. While specific revenue figures for software aren't broken out, the overall financial health supports this development. For Q3 2025, total revenue hit $2,155,993, with product sales accounting for $1,622,286 of that. Total assets on September 30, 2025, stood at $77 million, largely driven by that increased cash position.

The combination of these resources is what underpins their defense focus. For instance, the Commander 3XL successfully deployed multiple third-party products using its universal tactical multidrop payload system during the T-REX 24-2 exercise in August/September 2025, validating its role as a force multiplier. The company is definitely positioning its physical and regulatory assets for defense contracts.

Draganfly Inc. (DPRO) - Canvas Business Model: Value Propositions

You're looking at the core reasons why government and enterprise clients are choosing Draganfly Inc. (DPRO) systems over the competition, especially as the security landscape tightens. The value proposition centers on providing domestically sourced, secure, and highly capable unmanned aerial vehicle (UAV) solutions.

NDAA-compliant, non-Chinese-made UAS for secure government use

The primary draw for defense and security clients is the assurance of supply chain integrity. Draganfly Inc. is capitalizing on the massive shift away from foreign-made technology; honestly, with nearly 80% of U.S. police drones still Chinese-made, the replacement opportunity is huge. The company is betting that defense sales will hit 90% of revenue by 2026, driven by this compliance need.

The value here is concrete security and compliance:

• The U.S. Army selected Draganfly to deliver its Flex FPV Drone Systems with embedded, on-site manufacturing to ensure supply chains remain NDAA-compliant.
• Flagship platforms like the Commander 3XL utilize Blue UAS-certified autopilot systems.
• The Outrider™ Border Drone, an NDAA-compliant platform, demonstrated a 100 lb payload capacity and up to 7 hours of flight in November 2025 border-security demonstrations.

Modular, heavy-lift platforms for mission-adaptable payloads

You need drones that can carry what you need, when you need it, and Draganfly Inc. offers platforms built for this adaptability. The Heavy Lift Drone is engineered to support various interchangeable payloads, making it a versatile tool for industrial and defense roles.

Here are the key specifications for the Heavy Lift platform:

The Commander 3XL also offers modularity, capable of transporting up to 26 pounds of payload via drop and winch-down systems. This modularity is directly translating into business success, with Draganfly reporting product sales up 37.1% year-over-year in Q2 2025.

Mission-critical Intelligence, Surveillance, and Reconnaissance (ISR)

For defense customers, the value is in reliable, persistent data collection. The Commander 3XL UAV systems were sold to a defense contractor specializing in persistent surveillance, where they deliver reliable, persistent ISR capabilities across DoD and allied installations. The company's focus on military-grade solutions is validated by performance metrics.

Key ISR validation points include:

• The Commander 3XL and Flex FPV drones achieved a flawless 100% mission success rate during the DoD's T-REX 24-2 exercise.
• The Flex FPV Drone Systems were selected by the U.S. Army for agile surveillance and strike operations.

Humanitarian solutions like landmine detection and medical delivery

Draganfly Inc. is providing tangible value in high-risk, humanitarian zones by accelerating demining efforts. This is a strategic imperative for the company, demonstrating its public safety capabilities. The scale of the problem is immense, with the Landmine Monitor 2023 noting over 60 million landmines remain buried across more than 60 countries.

The specific humanitarian value propositions are:

• Draganfly was named the preferred global provider of landmine mapping drones by SafeLane Global in Q2 2025.
• The technology uses specialized sensors and AI to map areas, enabling demining teams to identify where to go and what to avoid, resulting in a faster demining process and reduced fatality risk.
• The company completed demining missions in Ukraine in the last quarter, informing its AI databases.
• A teaming agreement is in place with Autonome Labs to deliver UAV-based mesh deployment systems for demining.

Enhanced operational efficiency and real-time situational awareness

Commercial and public safety clients gain efficiency by replacing legacy systems with secure, domestically-made alternatives that offer better performance. For instance, a Fortune 50 Telecommunications Company placed a second purchase order to expand its NDAA-Compliant Heavy Lift Drone Fleet specifically for emergency response and communications network applications.

This operational improvement is reflected in the financials as the company scales production, having raised capital through a $25 million registered direct offering and a $13.75 million public offering to meet this growing demand. The financial results show this traction:

Draganfly Inc. Q3 2025 Financial Snapshot:

Revenue was $2,155,993, a 14.4% year-over-year increase, with product sales reaching $1,622,286, up 22.1% over the prior year.

Finance: draft 13-week cash view by Friday.

Draganfly Inc. (DPRO) - Canvas Business Model: Customer Relationships

You're looking at how Draganfly Inc. manages its key customer relationships in late 2025, which clearly leans heavily on deep, integrated service models, especially within the defense sector. This isn't just about selling a drone; it's about embedding the technology and support structure directly with the end-user.

Dedicated, Personalized Service for Large Government/Defense Contracts

For major government and defense clients, Draganfly Inc. is moving beyond simple procurement to offer comprehensive operational enablement. This involves a high degree of personalization to meet stringent regulatory and mission needs. The September 2025 contract with the U.S. Army for Flex FPV drone systems exemplifies this approach, as it mandates more than just hardware delivery.

The service model for these large contracts includes:

• Supplying Flex FPV drone systems designed for rapid deployment.
• Setting up embedded manufacturing at overseas U.S. Forces facilities.
• Providing comprehensive training on flight operations, assembly, and maintenance.
• Ensuring all logistics are secure and adhere to NDAA-compliant production standards.

Furthermore, the July 2025 sale of Commander 3XL Unmanned Aerial Vehicle (UAV) systems to a globally recognized defense contractor for persistent surveillance shows a focus on integration, supporting perimeter security and real-time situational awareness across DoD and allied installations. The establishment of a new U.S. facility in Tampa, Florida, is strategically positioned to reinforce this commitment to national security clients.

Direct Sales and Long-Term Support for Enterprise Clients (Telecom)

For enterprise clients, particularly in the telecommunications sector, the relationship centers on direct sales of high-value platforms for critical infrastructure support. Draganfly Inc. completed the sale of multiple Heavy Lift Drones to a Fortune 50 telecommunications company in Q3 2025 for UAV-based emergency response and communications network applications. This was a repeat order, which underscores the dependability of their solutions.

This specific telecom deal involved the integration of Unmanned Systems & Solutions' LEAP tether system into the Commander 3XL units. This integration is key for meeting the client's demands for sustained flight capabilities, which is essential for continuous coverage during disaster recovery and post-disaster telecommunication missions. The focus here is on long-term operational readiness rather than one-off transactions.

Strategic Advisory Board Engagement for Public Safety and Defense

The engagement with strategic advisors and board members directly influences the relationship strategy by lending credibility and deep domain expertise. Draganfly Inc. strengthened its board in Q1 2025 with the appointment of former Acting U.S. Secretary of Defense Christopher C. Miller. This move directly supports the company's positioning within the defense vertical, helping to navigate the complex needs of government stakeholders.

High-Touch Technical Integration and Customization for Partners

The relationship with defense partners like Global Ordnance, a U.S. Defense Logistics Agency (DLA) prime contractor signed in October 2025, is built on collaboration for mission-specific tailoring. This partnership aims to integrate mission-specific capabilities tailored to U.S. and allied defense applications. This level of technical embedding is the definition of high-touch service.

The shift in revenue mix shows where the focus is generating the most top-line growth. Here's the quick math on Draganfly Inc.'s Q3 2025 revenue contribution, which shows a strong reliance on hardware sales stemming from these integrated contracts:

The reliance on product sales, which were up 22.1% year-over-year in Q3 2025, confirms that the technical integration and delivery of hardware systems are the primary drivers of customer value exchange right now. The overall Gross Margin for Q3 2025 was reported at 19.5%.

Draganfly Inc. (DPRO) - Canvas Business Model: Channels

The Channels segment for Draganfly Inc. (DPRO) in late 2025 is heavily weighted toward direct engagement and strategic partnerships within the defense and large enterprise sectors, reflecting the company's pivot toward high-value government contracts.

Direct sales channel to U.S. military and government agencies

Draganfly Inc. (DPRO) utilizes direct sales efforts to place its Unmanned Aerial Systems (UAS) directly with U.S. defense branches. The Commander 3XL and Flex FPV drones have already seen adoption by branches of the U.S. Department of Defense. The company was selected by the U.S. Army to supply Flex FPV drone systems for mission-critical operations. To support this channel, Draganfly Inc. announced plans for a new facility in Tampa, Florida, strategically positioned to serve military and government clients. This focus on product sales is a key driver of recent financial performance; for the third quarter of 2025 (Q3 2025), Product Sales reached $1,622,286.

The sales mix for Q3 2025 demonstrates this channel's importance:

Defense prime contractors (e.g., Global Ordnance) as distribution partners

A critical channel enhancement in late 2025 is the formal agreement executed in October 2025 with Global Ordnance, a U.S. Defense Logistics Agency (DLA) prime contractor. Global Ordnance now serves as a U.S. defense partner for Draganfly Inc.'s UAS line. This partnership is designed to accelerate adoption by embedding manufacturing, responsive supply chain support, and mission-specific capabilities tailored for U.S. and allied defense applications. The collaboration leverages Global Ordnance's defense contracting expertise to enhance U.S. market access and regulatory compliance for Draganfly Inc.'s platforms.

Direct sales to large enterprise customers (e.g., Fortune 50 telecom)

Beyond government contracts, Draganfly Inc. (DPRO) services large commercial entities directly. The company completed the sale of multiple Heavy Lift Drones to a Fortune 50 telecommunications company. These systems were designated for UAV-based emergency response and communications network applications following extensive field testing. This segment contributes to the overall product sales figure, which increased 22.1% year-over-year in Q3 2025.

Exhibitions at key defense events like AUSA 2025

Marketing and relationship-building channels include high-profile industry events. Draganfly Inc. announced participation at the Association of the U.S. Army (AUSA) Annual Meeting & Exposition from October 13-15, 2025, in Washington, DC.

Key aspects of this channel activity include:

• Exhibiting at booth number #943.
• Co-locating the exhibit footprint with partner Global Ordnance.
• Showcasing the latest drone platforms, sensor systems, and mission-focused technologies.
• Reinforcing presence in defense and public safety markets.
• Building relationships with U.S. and international military procurement programs.

The company's cash balance as of September 30, 2025, stood at nearly $69.9 million, which supports these significant business development and channel investment activities.

Finance: draft 13-week cash view by Friday.

Draganfly Inc. (DPRO) - Canvas Business Model: Customer Segments

U.S. Department of Defense (DoD) and U.S. Army

• Commander 3XL UAV selected for advanced operational initiatives by a major branch of the U.S. Department of Defense in July 2025.
• Commander 3XL and Flex FPV systems validated at the T-REX 24-2 Military Technology Exercise.
• Defense contracts are the primary driver for product sales growth.

Defense prime contractors and international military organizations

• Commander 3XL drone received a major military order announced in the third quarter of 2025.
• The Commander 3XL, integrated with TB2 Aerospace's DROPS system, achieved flawless mission success during U.S. Army SMEX25 operational trials.

Public safety and law enforcement agencies (e.g., border security)

• Core sector served by Draganfly engineers.
• Modular LiDAR placed into UAV platforms for precision mapping and public safety applications.

Large enterprise clients in telecommunications and industrial inspection

• Secured a Fortune 50 telecommunications customer for disaster recovery in the second quarter of 2025.
• Completed the sale of multiple Heavy Lift Drones to a Fortune 50 telecommunications company for UAV-based emergency response and communications network applications.

Humanitarian and demining organizations (e.g., SafeLane Global)

• Selected by SafeLane Global Ltd. in April 2025 as the preferred global provider of landmine mapping drones and aerial survey services.
• The collaboration supports global mine action initiatives, with the first Ukraine Landmine Aerial Survey Contract underway.

The revenue mix for the third quarter of 2025 highlights the current emphasis on hardware sales, largely driven by defense sector adoption:

For comparison, the second quarter of 2025 product sales were $1,901,585 out of total revenue of $2,115,255.

Draganfly Inc. (DPRO) - Canvas Business Model: Cost Structure

You're looking at the cost side of Draganfly Inc.'s operations as of late 2025, focusing on the numbers that drive their spending, especially after their Q3 2025 results.

The Cost Structure is heavily influenced by the need to innovate and secure high-value government work. High R&D expenditure for new drone and AI technology integration is a constant, evidenced by recent strategic moves like the partnership with Volatus Aerospace to integrate Bathymetric LiDAR technology onto their Heavy Lift Drone platform, signaling investment in advanced sensor payloads and capabilities. Also, the unveiling of the Outrider Southern Border drone suggests significant internal development costs for specialized platforms. Draganfly plans to continue expanding its manufacturing capacity by setting up 7 new plants in the U.S., aiming to quadruple its production capacity by the end of next year, which will impact future capital and operating expenditures.

Cost of Goods Sold (COGS) for drone hardware manufacturing and supply chain is a major component. For the third quarter of 2025, the reported revenue was $2,155,993, with product sales making up $1,622,286 of that total. This directly translates to the cost associated with producing and delivering those units, which, based on the reported gross profit, implies a significant COGS figure.

Employee and management expenses, including share-based payments, are clearly a factor in the operating burn. The year-over-year decrease in the adjusted comprehensive loss was offset by an increase in employee and management expenses, and share based payments, among other factors. Sales and marketing costs are geared toward securing large government/enterprise contracts, as seen by recent selections by the U.S. Army to supply Flex FPV Drone Systems and the selection of the Commander 3XL UAV by a major branch of the U.S. Department of Defense.

The resulting financial pressure is reflected in the bottom line. Operating losses: total comprehensive loss of $5.4 million in Q3 2025 is the figure you need to focus on. This loss, inclusive of non-cash items, was $5,425,004 for the quarter ending September 30, 2025, compared to an adjusted comprehensive loss of $3,771,250 for the same period last year. Honestly, the non-cash items are what really inflate that reported loss number.

Here's a quick look at the key Q3 2025 financial metrics that frame these costs:

The non-cash items are definitely moving the needle on the reported loss. For instance, the negative change in fair value derivative was a substantial $1,837,618 of that total loss. The company's gross profit margin, at 19.5%, dropped from 23.4% in Q3 2024, primarily due to the sales mix of the products sold.

You can see the cost drivers through the components that make up the comprehensive loss:

• Employee and management expenses (increased year-over-year)
• Share based payments (increased year-over-year)
• Office and miscellaneous expenses (increased year-over-year)
• Professional fees (decreased year-over-year)
• Non-cash derivative valuation changes

Finance: draft 13-week cash view by Friday.

Draganfly Inc. (DPRO) - Canvas Business Model: Revenue Streams

You're looking at how Draganfly Inc. actually brings in cash, and for late 2025, the story is heavily weighted toward hardware sales, though services are a necessary component. Honestly, the Q3 2025 numbers give us the clearest picture of the current mix before we look ahead to the long-term goals. The total revenue for that quarter hit $2,155,993, which was a 14.4% jump year-over-year.

Here's the quick math on how that revenue broke down in the third quarter of 2025:

The government and military segment is a major driver, but it's definitely lumpy revenue, which is typical for large defense contracts. You see this reflected in recent operational highlights, like the selection by the U.S. Army to supply Flex FPV Drone Systems. Also, the Commander 3XL UAV system was selected by a major branch of the U.S. Department of Defense for advanced initiatives. Management has signaled a strong future focus here, anticipating that military sales could make up 90% of total revenue by 2026. That's a massive shift to plan for.

The long-term goal is to build out the recurring revenue base from software-as-a-service (SaaS) and maintenance contracts, which stabilizes the top line. While services revenue was about $533,707 in Q3 2025, the true recurring SaaS component is what they are trying to grow now. They've started laying this groundwork, for example, by collaborating with Paladin AI to integrate their artificial intelligence capabilities directly into Draganfly's drone fleet.

Now, let's talk about profitability on that revenue. The reported gross margin for Q3 2025 was 19.5%. That margin was pressured by the product mix sold during the quarter, meaning they likely sold a higher proportion of lower-margin hardware relative to services. If you back out a one-time non-cash write down of inventory of $43,337, the adjusted gross margin would have been 21.5%. Still, that 19.5% figure is what you have to work with right now, and it's down from 23.4% in Q3 2024. If onboarding takes 14+ days, churn risk rises, which impacts that services revenue stream.

You should review the contract pipeline for Q4 2025 to see if the mix shifts back toward higher-margin services or if the large military hardware orders continue to dominate the revenue profile. Finance: draft 13-week cash view by Friday.